The One Stock to Buy for the Next Ten Years

By Travis Johnson, Stock Gumshoe, December 9, 2008

The Motley Fool is sending out an ad that claims to have chosen “The Only Stock to Own 2009-2019.”

Now there’s a promise, no? The assumption of almost all pundits and pontificators, myself included, is that this awful market might represent a remarkable buying opportunity — at least, an opportunity for those who make the right decisions, and have a long time to wait for that “rightness” to emerge from the ashes of this recession.

But what to buy? What company represents the “right” decision right now?

Dave and Tom Gardner at the Motley Fool have the answer for you — the “one stock to buy for the next ten years,” which of course doesn’t sound much different than other predictions that have been seen in this space over the last few years, almost all of which would have been awful if you marked them to today’s market price.

They’d like you to sign up for a subscription to their Stock Advisor newsletter, and in return they’ll tell you about the best stock to buy right now, the stock that will perform better than the others from 2009 to 2019.

Or actually, they’ll tell you about the best two stocks to buy right now, since each issue of the newsletter is essentially a competition between the two brothers to see which of them can make the best recommendation. Stock Advisor, by the way, is the flagship newsletter of the Motley Fool, and by far their best long-term performer, though it doesn’t take remarkable returns to be a top performer these days (according to them, it’s the only one of their newsletters that currently has a positive lifetime return, probably in large part because it is their oldest newsletter — Hulbert hasn’t covered them for as long, but his numbers generally agree that they’ve slightly beaten the market and have a long term positive return).

So whether or not you think their advice is worth buying, what are they talking about when they tease us that they have “Your First Stock of the Next Bull Market?”

Here’s the promise:

“… stocks that are right now coiled like a spring, that will shoot upward in the not-too-distant future… dropping a long and substantial string of profits into your account. And they’re detailed straight ahead!”

Now, you can go ahead and subscribe to the Stock Advisor if you want their full writeup … but if you just want to know about these two companies, well, you know the drill: Read on, and the Gumshoe will provide.

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We start with Tom Gardner — the brother who has more of a value focus. Dave Gardner has been running the Rule Breakers newsletter that looks for breakout growth stocks, and before that was a big cheerleader for many of the 1990s tech titans (including some incredible returns); Tom Gardner has been in charge of the Hidden Gems newsletter, which looks for “hidden” small cap value companies, and generally looks more for the Warren Buffett-type buys. That’s an exaggeration of their stock-picking history, but it’s generally true that Dave is the growth guy, Tom is the value guy.

And Tom has this for us:

“First, let’s take a look at my top recommendation for 2009 and beyond…

“To tell this story, we need to go back 35 years to 1973. To a period of crisis and opportunity… a period like what we’re experiencing today.

“In 1973, a company called Scientific Atlanta planned to sell portable satellite earth stations to companies in the rapidly growing cable television field. Yet at the time, many of the so-called experts of the day thought satellite transmission of cable television would take place only in the way out distant future.

“As is often the case when a bunch of “experts” prognosticate in unison on a subject… their prediction proved dead wrong! And cable television boomed in the mid- to late 1970s, and Scientific Atlanta grew with it…”

OK, so this stock is somehow a bit comparable to Scientific Atlanta 35 years ago (they’re owned by Cisco now, just FYI), in that it apparently is undervalued and hidden, and under-appreciated because it wasn’t obvious to everyone that their business would be a success.

“The company’s profits ballooned by 40% a year from 1972 on, as Scientific Atlanta came to dominate a mundane niche inside a larger communications revolution!

“As a result, Scientific Atlanta’s stock soared. And keep in mind, this happened during the brutal economy of the 1970s!”

So that sounds pretty good, right? Unfortunately, we’re bereft of a time machine at the moment, and even if we were willing to relive 1973, we can’t go back and buy Scientific Atlanta and make our millions.

So what is the stock Tom’s teasing today?

“Right now, I’m recommending you stuff your portfolio with shares of a 2009 opportunity I see as having similar characteristics and potential as Scientific Atlanta had in 1973! We’re talking a company with:

“Unique and proprietary products that give it strong pricing power and outstanding margins (just as Scientific Atlanta had )

“The high end of a tech infrastructure-type market that’s a brutal place for new competitors (like Scientific Atlanta had )

“Expert management (you guessed it… same as Scientific Atlanta had back in the day )

“In fact, the company I’m recommending has a CEO with more than two decades of experience and a chairman and co-founder who’s been in the industry for 40 years!”

OK, so that sounds lovely — but of course there are precious few actual clues in there … let’s dig in for a few specifics:

It builds analog integrated circuits that “deal with features such as pressure, temperature, and voltage that are difficult to break down into digital components. Put simply: They do what digital can’t.”

They target the high end of the analog market.

They have consistentlyr eported net margins “near 40%” whcih Tom says is “astounding for a circuit manufacturer”

Their CEO recently explained that “a new company is not going to get a lot of funding to address the ‘relatively small amounts of customers and relatively low unit sales’ involved in this space.”

Some numbers:

More than 15,000 customers, none of which accounts for more than 10% of sales.
US is 32% of sales, Europe 18%, Japan 12%, rest of Asia 37%. Tom says that “this strong diversification helps the company ride out economic downturns in any one industry or geographic area.”

(He doesn’t mention that those 37% of sales to “rest of Asia” may largely be to assemblers who are building stuff that’s sold to Europe, Japan, and the U.S., but that’s neither here nor there.)

What does Tom see for this one ahead?

“20% annualized returns for shareholders over the next five years.”

Now, that may not sound like an awesome return compared to the incredible “500% gain in a year” promises that we often see in this space. And one might hope for a bit more, especially coming out of the trough that we’re living in right now, but it is admirably both reasonable and exciting — after a year of 80% losses for many shareholders, 20% a year on the positive end sounds pretty good, even if it will take all five of those years at that rate of return, plus four more, to make back that 80% loss (this awful year in the market isn’t Tom’s responsibility, of course, just making the point that 20% returns may sound both unattainable and conservative at the same time to shell-shocked investors). Stock Advisor is down about 40% over the past year, which is better than the S&P 500 and about the same as the Wilshire 5000.

Tom calls this “The One Niche Tech Stock for 2009 and Beyond.”

So what is it?

Linear Technology Corp (LLTC)

The shares are flying this morning, probably in at least some measure because of the big ad campaign behind this teaser — they must be getting a fair number of folks excited by this stock, who are then signing up for the newsletter (or gumshoeing it on their own — don’t do this at home!) and throwing down their cash for a few shares. Then again, does a stock really need a reason to move by 7% anymore?

This is indeed a big ($5 billion or so) analog circuit maker, competing with companies like Analog Devices and National Semiconductor. And at this point, at least, they seem to be doing quite well — their margins are significantly better than those of Analog Devices, which to an inexpert eye like mine (I know this business almost not at all) looks like the closest comparable company. That could certainly be because Linear is a bit higher up the food chain, selling into higher end products with more differentiated chips, but I don’t really know for sure — LLTC has operating margins that are twice that of Analog Devices or National Semiconductor, so there is clearly a difference to their business … at least so far. They also have better sales growth and a significantly higher PE, though of course a year ago no one would have been able to say “high” about a Price/Earnings ratio of about 11, which is where LLTC stands now, with very similar valuation metrics to the much larger Intel (though with higher margins).

Is this going to be a company that can survive a big recession? Clearly if sales of electronic gear go down, so will LLTC’s sales — that’s why the shares of all chipmakers are inexpensive right now. LLTC has minimal debt (though unlike some in the business, they do not have a net cash position — they do have a slight amount of net debt), and they pay a decent and growing dividend (over 4% — it’s still hard to believe that chip companies pay real dividends now, even Intel has a similar yield above 4%, too).

I can’t give you an expert opinion on where their products stand, or what their competitive position is, but I can tell you that Tom Gardner’s anointing this as the top stock for the next ten years … and there is nothing in the valuation or in their numbers that would necessarily make you run screaming from the room. They’ve had their share of downgrades and estimate cuts from analysts this quarter, and are currently, as with most stocks that are enjoying a bit of a December rally, up a bit from the lows of last month. They report their second quarter on January 13, and analysts think they’ll earn about $1.50 a share this year (which ends in June for them), and they’re factoring in almost no growth for the year following.

If you’ve got something to share about Linear Technology, feel free to spread the knowledge with a comment below — I’m intrigued, but don’t know enough about them yet to really think about buying.

And I said there would be two goodies for you today:

Tom’s brother, David, also has his pick for the next ten years — and this one we’ve seen before. He’s been selling this idea as an investment in “The New Silk Road” for a few months now, and I wrote a piece decoding that original ad back in October — you can read that New Silk Road article here, or if you just want the short answer …

This second one is Canadian National Railway (CNI)

I don’t have any other exciting news to share about CNI, though the shares are down about 10% or so since I last shared some thoughts. Certainly, railroad investing has enjoyed a real renaissance in the last several years, thanks in large part to high oil prices, commodities, and the increase in the container trade. Before that, and before Warren Buffett’s big railroad purchases in recent years, the shares spent many decades being solid performers that most investors had never heard of … will they go back there?

That’s hard to answer, but I think we should at least call some attention to one thing: Of the two Gardner brothers it’s the growth-crazy, AOL and Nvidia-loving Dave Gardner who chooses a railroad, and the cautious, tepid value-seeker Tom Gardner who selects a semiconductor company.

In a topsy turvy world like this, I guess that kind of switcheroo should be expected … but it still makes one take pause. What do you think?


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javier de León
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August 12, 2009 6:37 am

Dear Daily Crux Reader,

Stop buying gold until you read this…

No more mining stocks or gold mutual funds.

One of the best analysts in America says there is one gold investment that’s better than all others and could have even turned a $5,000 investment into $1.6 million.

Full write-up below…

Sincerely,

Brian Hunt
Editor and Chief, Daily Crux

———————–

Canadian Engineer Uncovers
Secret to Making 4,500% From
Gold—Without Owning a Single
Mining Stock

Forget mining stocks, mutual funds, and gold coins—there’s a much safer and more lucrative way to make a fortune in the gold industry over the next two years.

I’ll give you the exact stock symbol of this perfect investment, here in this letter.

Forbes Magazine says this opportunity returned 32,000% over 18 years… that turns a $5,000 investment into $1.6 million!

Dear Reader,

For good reason, the world has gone crazy for gold.

It’s one of the few safe “buy-and-hold” investments available in the world today.

But very few investors know about THE PERFECT GOLD INVESTMENT.

It is probably the safest and most lucrative investment you can make in the gold industry—yet it has nothing to do with mining stocks… or gold mutual funds… or gold bullion or coins.

During one recent period, for example, this incredible gold investment returned 38% a year… for 18 straight years!

That pays you more than 2,400% over 10 years… and more than 32,000% over the full 18 years. It turns just $5,000 into $1.6 million.
In short, this has been one of the safest and most profitable investments on Earth.

It’s no surprise, of course, that some people are already making a lot of money as a result…

Jeff Wilkinson, from Kentucky made $1.2 million in only a few years from this investment

Lou Ganders from Baton Rouge, LA profited $909,000 and didn’t have to worry about any of the hassles of storing or handling gold

Jack Vacia, a teacher from Portland, Maine, said, “I tripled my money…”

The secret gold investment I want to tell you about was pioneered by a Canadian named Pierre Lassonde.

If you haven’t heard of Lassonde, don’t be surprised. Most Americans haven’t. He was born in Montreal and came to the United States to work as an engineer.

While working in the U.S. he fell in love with the state of Nevada because of its skiing and also because of its mineral resource potential.

You see, Lassonde knew Nevada held huge amounts of untapped gold wealth that was just begging to be exploited for millions of dollars.

But the genius behind Lassonde’s unique investment has absolutely nothing to do with the risky, expensive, and complicated mining business.

And you could use his secret to make a fortune over the next few years.

Let me give you the exact ticker symbol of this investment, and explain how it works…

Lassonde’s Secret, Revealed

It all started with a tiny advertisement placed in a small Nevada newspaper.

Pierre Lassonde noticed an ad in which the owner of a mine wanted to sell an “interest” in his stake, in order to repay an outstanding loan.

Lassonde and his partner gave the mine owner some cash and became the owner of a percentage of the mine’s future royalties, in return.

Shortly after the ink was dry on the agreement, a large mining operation purchased the project, and discovered one of North America’s biggest gold deposits… The Goldstrike mine.

And the Goldstrike mine delivered Lassonde and his partner the “jackpot” of a lifetime.

If you had invested $5,000 in Lassonde’s company when it first went public, you could have made over $1.6 million.

In short, the secret that Lassonde discovered was “Mining Royalties”—that is, simply a right to receive a percentage of production from a lucrative gold mine.
Lassonde and his business partner had previously made a fortune collecting royalties in the oil and gas business. So they deciced to replicate their success in the gold sector…

They created a company, called Franco Nevada. It’s listed on the Toronto Stock Exchange, and the ticker symbol is FNV.TO.

It is the perfect business model for several reasons.

Let me show you what I mean…

The Anatomy of a Perfect Business

Not only did Pierre Lassonde make a ton of money, and make a lot of people rich. He also created what I believe is the perfect business model for the mining industry.

Here are the advantages of collecting royalties over typical mining, exploration, and production companies…

1) PAY ONCE—GET PAID FOR LIFE

You only have to buy a royalty once, then never have to spend another penny as you collect money throughout the life of a mine.

For example, Lassonde paid $2 million for 4% of the Goldstrike mine in Nevada. The first year the mine brought his company $505,304. And today they still get royalty revenues of $74 million a year… all from an initial $2 million dollar investment.

Lassonde also bought a royalty on a gold mine in California called Castle Mountain. His one-time investment was $2.8 million and he wound up making $8.4 million in royalties.

On a recent royalty on a Montana mine, Lassonde and his partners invested $36 million and made a quick $17 million from royalties. They believe the mine should be good for $12 million a year for the next 50 years… that’s a total of $600 million from a one-time investment of $36 million.

2) VIRTUALLY NO OVERHEAD

The problem with the mining business is that it’s EXTREMELY captital intensive. The entire process to build a mine and produce gold can take ten years or more and cost hundreds of millions if not billions of dollars.

Royalty companies, on the other hand, are a cash cow business because they have little overhead and require very few employees. In fact, Franco Nevada has only 21 full-time employees and it’s a $2.7 billion dollar company!

In contrast, look at how many employees most businesses need, to make half this amount of money. Rite Aid Pharmacies, for example, is a $1.4 billion dollar company. They have 53,669 employees!

3) NO PRODUCTION COSTS

Another great advantage of royalty companies is that they don’t have to worry about building and operating mines. Or financing huge pieces of equipment.

Consider Barrick Gold, for example, one of the largest gold mine operators in the world. Their profit margin is just 8.27% because of their incredible overhead. But a royalty company, like the one I’ll mention in a minute, can operate with just a handful of employees, and a single office, and enjoy profit margins of 53.3%.

4) INVESTMENT SAFETY

Another advantage of royalty companies is that they allow you to diversify your holdings, so your eggs are never in just one basket.

Pierre Lassonde’s Franco Nevada, for example, currently has more than 300 royalty interests all over the world. Should one mine stop producing it’s no big deal, because you still have 299 royalties that can bring in money. The point is, royalties from many operations are much, much safer than having to rely on just a handful of mines… where unexpected events can wipe out half of your investment.

5) INFLATION PROTECTION

Royalty companies don’t worry about inflation or increased costs.

You see, even if a mine operator has to start paying $10,000 more for its trucks this year, this cost hike does not affect a royalty company, because they continue to get their legally obligated royalties…no matter what.

In 2008, for example, gold mining production costs increased 24%, but none of these costs had an impact on royalty companies.

In fact, inflation can actually benefit a royalty company. When gold goes up 10% or 20%, the company’s revenue goes up 10% or 20%, but their costs don’t budge. And keep in mind, massive inflation may be on the horizon. It’s important to remember that in the inflation of the 1970’s, gold increased in value by more than 2,000%.

6) LIQUIDITY—EASY TO BUY AND SELL

As many Americans are finding out the hard way in the real estate business, liquidity is one of the absolute top requirements for any great investment.

Well, royalties are a lot easier to sell than mines or land. A royalty can typically be sold on very short notice. When the time comes to collect a profit… it takes only a day or two to get paid.

7) LOW RISK

Simply put, owning a royalty is the least risky investment you can make in the mining business.

As my friend and legendry mineral investor Doug Casey recently said, “royalty companies are the least risky gold stocks… royalty companies buy a fixed percentage interest in a mine’s gross production and let the mining company do the dirty work. They’re conservative, and when gold takes off… profit margins of such companies will soar.”

The point of all this is… owning mining royalties are the perfect business because there’s little risk, low overhead, and huge profit margins.

As I mentioned, the first company to set up this type of operation was Pierre Lassonde’s Franco Nevada. The company was started in 1982, and early investors could have turned a $5,000 investment into $1.6 millon dollars.

Since Lassonde created this business model, however, several other companies have copied it, making a fortune for other savvy investors along the way…

The Royalty Company That
Made 65% Last Year…

One of the most successful companies to follow in Lassonde’s footsteps is a firm called Royal Gold.

Royal Gold was started in 1986, and began as an oil and gas exploration company. In 1987 the company shifted its focus to gold royalties, and that’s when investors started to make big profits… a return of 3,295% for those who invested from the beginning.

Today, Royal Gold is the world’s leading precious metal royalty company, and owns a total of 118 royalties on several of the world’s most attractive gold mines.

In fact, they’re still making investors a fortune. Get this: While almost every stock in the world got crushed last year… Royal Gold returned a solid 65%.

Best of all, the mines in which the company owns royalties have reserves of approximately 64 million ounces of gold.

And with gold priced at well over $900 an ounce, that’s over $57 billion dollars in royalty interests the company will get a part of in the near future.

As my colleague Matt Badiali (who’s a geologist with 13 years of experience), says: “Royal Gold is not a mining company. It doesn’t have a fleet of geologists and engineers out scouring the hills. It’s a $1.4 billion accounting firm that takes its payments in gold.”

Again, it’s another example of how owning gold royalties could make you an absolute fortune in the precious metals business… with very little risk.

Royal Gold investors have made well over 3,000% on their investment since the company went public.

If you’re interested in purchasing Royal Gold, it’s listed on the NASDAQ and the stock symbol is RLGD.

The Problem… and a
Great Way to Make 1,000%

Before you rush out and buy Royal Gold or Franco Nevada, there’s one thing you have to know…

Franco Nevada and Royal Gold are great companies, sure.

But they’ve been around for more than 20 years.

Yes, they still make investors decent money, but the days of 1,000% gains, I’m afraid, are probably long gone.

But here’s the good news: There is now another chance for you to make absolutely astonishing gains thanks to this incredible business model…

What very few investors know is that in 2003, a small group of investors with a ton of experience in the mining business got together.

They were led by a 28-year industry veteran… who has done all types of important work in this industry… from exploration geologist to mineral economist.

This savvy industry veteran helped form a new royalty company—just like Franco Nevada and Royal Gold. They now own royalties on mines in the U.S., Canada, Chile, Spain, Australia and South Africa, to name just a few.

And… they’ve done something else… which I believe could ultimately make them even more profitable than Franco Nevada or Royal Gold…
You see, Franco Nevada and Royal Gold focus almost exclusively on gold mines. Yes, they diversified with various mines around the world, but they live and die based on the price of gold.

However, the company I want to tell you about decided to also diversify into even rarer precious metals… this way they would have even less risk, as precious metals prices fluctuate.

For example, this company owns royalty interests on gold, copper, cobalt, silver, uranium, and even diamond mines.

This company has six huge things going for it, which I believe will make it one of the safest and most profitable stocks in the world over the next few years…

Six Reasons You Could Retire Sooner

By investing in these companies, you get exposure to the world’s most promising gold, silver, diamond and natural resource mines – with more being added to the portfolios all the time.

1) THE BEST BUSINESS MODEL IN THE INDUSTRY

The royalty business model is a proven winner with little risk. Franco Nevada was able to turn every $5,000 invested into over $1.6 million. And while most stocks got slaughtered last year, Royal Gold returned investors 65%. The company I’m sharing with you now, was already up 129% within two years of going public.

2) 20 YEARS OF “WORRY-FREE” INCOME

The company I’m recommending you buy owns royalties on some of the most profitable mines in the world for the next 2o years. One of these nickel mines, located in Canada is expected to produce for another 25 years… until 2034.

When asked about the company’s policy of investing in mines with long and stable life spans, the CEO said this…

“Don’t bring me one of those three or four year gold deals and tell me its the best thing since sliced bread, because its not. I’m looking for deals that have 20-year lives or longer”.
3) THE PRECIOUS METALS BOOM

Over the last few years, precious metal prices have skyrocketed. And with the Federal Government flooding this country with trillions of dollars, prices will likely continue to increase thanks to inflation.

In fact, since 2003, gold has increased over 260%, copper has increased 207% and silver has increased 171%.

There is simply no better way to play this bull market over the next few years than owning super-safe mining royalties on the world’s most precious and valuable commodities.

4) FRUGAL MANAGEMENT

I want to own a business where the guy in charge is efficient, frugal, and saves profits for shareholders–not lavish corporate events or furnishings. That’s one of the reasons why I love this new Colorado royalty company.

During a recent annual review of expenses, for example, the CEO noticed that air travel costs had increased significantly. He decided to install video conferencing to save money on airfare and said, “Despite a high-margin business model, [the company] has not lost its cost discipline.”

And get this, despite being a $250 million dollar company, the firm has only 11 employees.

5) LOW RISK

This new Colorado royalty company I’m recommending you buy is well diversified. They own 85 royalties on mines around the world, and the majority of these mines are in stable, developed countries such as the U.S., Canada, Australia, and Spain.

Also, they diversify among precious metals such as gold, copper, cobalt, silver, nickel, and uranium.

6) YOU ARE GETTING IN EARLY

This might be the most critical point about this investment.

This new Colorado royalty company has been around only since 2003. The share price is still well under $5. And the company is in the works of producing some incredible deals for shareholders over the next few years, including…

A copper and gold mine in Spain, for example, is expected to produce for the next 15 years, and a mine in Nebraska should produce for 20 years.

The point is, this company is already an incredible investment, and over the next few years, it is set to pay investors a fortune.

I believe you could invest today and watch your royalty gains pile up to extraordinary sums… for years and years to come.

And because I want you to get in early while there is still a chance to make massive gains on this new royalty company, I have written a Special Report called
“One Investment That Can Pay for Your Retirement”.

I’d like to give you access to this report for FREE. It will show you how to buy this company… the ticker symbol… the price to pay… and why you can look forward to a decade or more of huge gains.

I’ll go into very detailed valuation, which shows you exactly why I believe this business is one of the few safe “buy-and-hold” stocks in the world today.

It’s an incredible value… with very little risk… which could pay you hundreds and hundreds of percent gains over the next few years.

Let me show you how to get your FREE copy today of my research…

The King of Royalty Companies

My name is Dan Ferris.

I’m the editor and analyst of Extreme Value, an investment advisory letter that focuses on the safest and cheapest stocks in the market—such as the royalty company I just mentioned to you.

My “Extreme Value” strategy offers what I believe is the single best way to make money in the stock market today… by using only the safest and most profitable investments.

Often times, I’ll spend up to six months researching a stock opportunity… because I won’t make a recommendation unless I find it almost impossible to lose money.

For example, a few years ago I flew to the island of Maui, rented a car, and toured 37,000 acres of sugarcane fields owned by a company called Alexander and Baldwin (symbol: ALEX). I was accompanied by John Moxie, the company’s Vice President of Farming Operations, who showed me each stage of the sugarcane growing process.

After the tour, I went to the Maui Real Property Assessment Division where I found 242 tax records filed under Alexander and Baldwin’s name. I discovered that the real assets owned by the company were selling on the stock market for a small fraction of what they were actually worth on the open market.

Specifically: The company owns 90,600 acres of Hawaiian land, most of it on the islands of Maui and Kauai. And almost all of it is carried on the company’s books at its original average cost of just $150 an acre. Today, some of that land is worth in excess of $1 million per acre…

That’s what I call an “Extreme Value” situation.

Of course I recommended this company to my readers who could have seen gains of 154%. I expect we’ll make considerably more over the next few years as well.

In short, I’ve spent the last several months doing the same type of in-depth research on this new mining royalty company, which I believe could single-handedly pay for your retirement in the next few years.

And the good news is… there are several other incredible “Extreme Value” opportunities out there right now…

For example…

How to Safely and Legally Get Paid Thousands
of Dollars Thanks to The Tax Man

My research for Extreme Value focuses on finding extraordinary opportunities to make very large gains… with almost no risk.

Well, recently, I’ve found an incredible way to profit, thanks to the tax system.

In short, I’ve found an investment that is better than government bonds, municipal bonds, or just about any savings vehicle on the planet.

I expect you could get paid about 50%-100% on your money over the next few years… with as little risk as is possible in the investment world.

It’s all thanks to something I call “Tax Revenue Shares,” which could potentially pay you a small fortune on about 16% of the tax revenue paid in the U.S.

Some investors have been taking advantage of these “tax revenue shares” for years and have already seen gains as high as 923%.

Even Warren Buffet, the greatest investor of the past 50 years has held this investment, and at one time owned more than $10 million worth.

We all know that the only things certain in life are death and taxes. But most investors don’t have a clue about how to turn the tax system in their favor.

Keep in mind: The payouts from the “tax revenue shares” I’m going to tell you about have increased in value 23 of the past 27 years.

Don’t get me wrong: These “tax revenue shares” will not pay you 500% in one year.

Rather, they are a super-safe investment, perfect for your savings, which could pay you a heck of a lot more than any bond or savings account I know of. Remember, no matter what happens in the economy or the stock market, people have to pay their taxes. And this is how you can get your share.

And I haven’t even told you the best part: You can easily buy these “tax revenue shares” through any ordinary stock broker, or on-line brokerage account. It couldn’t be easier.

I’ve written a report covering everything you need to know about these “revenue shares” called, How to Make Safe 50% Gains From “Tax Revenue Shares.”

Again, I’d like to send you this Research Report immediately, and free of charge.

The research on “tax revenue shares” and the incredible opportunity in the new mining royalty company are actually the first things I’ll send you when you take a risk-free look at my monthly advisory letter, Extreme Value.

This research will help you decide whether or not Extreme Value is right for you.

Here’s what I mean…

Please Be Advised:
Extreme Value is not for the average reader.

That’s because my strategy is designed for a small group of readers who are interested in little-known companies often involved in very safe businesses… which still have the potential for very large gains.

In many cases, this could mean getting into a company your broker may not know about… with little-to-no coverage on Wall Street… and then leaving it alone for months at a time.

The investments I follow I usually recommend holding for the long-term… and often get staggering returns as a result. THIS IS IMPORTANT: If you want to take chances day-trading or buying options, or anything like that, my work is definitely not for you.

In short, my goal is to find investments where you can get in at such a low price, with such a margin of safety, that you have the potential to double or triple your money—with little risk involved.

And what’s funny is, even though we focus on very safe “Extreme Value” situations… I don’t know of another research service in the industry that has come anywhere near producing the big gains we’ve found over the past few years.

For example, do you know of any research or speculative service that has shown readers potential gains as high as…

221% on Consolidated Tomoka—real estate and golf operations

53% on Alico—land management

165% on St. Joe—real estate development company in Florida

35% on Korea Electric Power—electric utility company

124% on Gateway—computers

97% on Circuit City—electronics

113% on Tejon Ranch—agriculture and real estate development (By the way, this is a fantastic “buy” again, and I’ve recently recommended that my paid subscribers purchase this stock. It’s listed on the New York Stock Exchange and the ticker symbol is TRC.)

94% on JAKKS Pacific—developer and producer of toys
And keep in mind: We found these huge gains while focusing on the safest “Extreme Values” in the market.

The point is, most people think you need to trade in and out of risky investments to make big gains.

I think what we’ve proven is that you simply have to do more homework than anyone else… and you have to get into great companies that are trading EXTREMELY cheap… so that you all but eliminate any undue risk.

This is how I operate and why I spend up to 6 months researching a single stock recommendation—so that you can see the kinds of gains I described above.

Of course, what I love most about my work is getting letters like these from subscribers…

“Dan, my results have been as follows: Made $1.01 million in profits, before taxes and expenses.”
~ Josh Winters, Thornton, CO
“I made my first purchase from your recommendations nearly three years ago and have realized a 554% gain on that investment alone. Other big winners for me have been 129%, 100%, and 90%… Keep up the good work!”
~ Rich Charles, Tacoma, WA

“About $20,000 ahead in just 60 days! Needless to say, these returns have sure beat the recent “market” by a country mile. Extreme Value delivers what it promises! Tell Dan Ferris, I figure that his advice is worth a lot more than the cost of his subscription.”
~ Hank Dickson, Colby, KS

“During the past year, I have probably achieved gains of about $250,000 on Extreme Value recommendations. As a group, these investments have doubled during that time period.”
~ Wesley Calleran, Muskegon, Michigan

“I’m very pleased with the results of the Extreme Value portfolio and the amount of research that goes into each recommendation… [it] produced an income exceeding $150,000 per year.”
~ Curt Randall, New Haven, Connecticut

One more thing I should tell you too…

If you decide to take a look at my work, you will be in good company.

What I mean by that is, not only do every-day readers follow my recommendations for big gains, but so do many professional investment managers…
Such as Mohnish Parai, a very wealthy money manager and New York Times best-selling author (who was also featured in Forbes for out-performing Warren Buffet for 4 straight years). He said, “I read Extreme Value every month. It’s one of the best value-oriented advisories I receive.”
And Grover Kowalski from Los Angeles, CA, who said, “I am a 37 year retired professional from the investment business that involved bonds, stocks, options, annuities, and life insurance… All I can say is this… we should have had you at the head of our investment department.”
If you’d like to give Extreme Value a try, I believe very strongly that you will not be disappointed. I think you could safely make more money with my work than you’ve ever made following any other financial advice from any source.

Here’s how it works…

On the second Friday of every month, I’ll send you a full report (by email and then by regular mail) on extreme-valued investments… the safest and most profitable opportunities in the entire market. Our goal is to make at least 100% gains with each investment. Sometimes it takes just a few weeks for the values to be fully realized… sometimes it can take a year or more.

In short, wherever the best opportunities are, I will find them… so you can get there first and potentially see very safe and large gains.

But before you decide if you would like to try Extreme Value, there is something else I want you to have…

It’s an amazing opportunity I think you’ll find very valuable…

The Finest Beachfront Property in The U.S.
For $1,500 An Acre

What if I told you that, thanks to the real estate collapse, you could now own some of the nicest beaches in all of America… for the equivalent of one hundred dollars per acre…

Would you be interested?

Well, I’ve done an incredible amount of research on this opportunity, and I can tell you that this opportunity is very real—and there is nothing else like it in America.

Even better, you can make this real estate investment in the stock market, so it’s super-simple and cheap to buy and sell.

You see, very few investors know it, but there’s a one-of-a-kind stock in this country that does nothing but hold some of the worlds most valuable land… stretches of prime beachfront, in some of the most popular destinations on Earth.

What’s incredible is that due to the real estate meltdown you now have the opportunity to buy this beachfront land at truly distressed prices… 57% less than it was fetching a few years ago.

Look… I’m not one who looks specifically to capitalize on others misfortune… but these prices are far too good to pass up. This is absolutely the real estate buy of a lifetime.

Your kids and grandkids could look back at this investment as the smartest one you ever made.

Yes, there are some other incredible deals in the real estate markets right now… but for most of them, you have to deal with bankers, distressed properties, foreclosures, etc.

Well, this beachfront investment I want to tell you about is safer, easier, and probably more lucrative than anything else you can find on the real estate front today.

That’s why Michael Winer, who might be the best real estate value investor in America (he runs the Third Avenue Real Estate Fund) recently said: “For us, [this company] boils down to some 800,000 acres of spectacular real estate that is ripe for generations of development.”

The point is, this is a way to get in on America’s best real estate, at dirt-cheap prices. I think you could safely double you money over the next few years… And probably make many, many times that over the next decade and beyond.

You most likely won’t have an opportunity to own beachfront land at these prices again in your lifetime… so if you think people will continue to want beachfront land… this is one of the best investments in the world.

I recently finished writing a new Research Report about this ridiculously low-priced beachfront land, called “The World’s Most Desirable Beachfront Land for $1,500 An Acre.”

You can have access to this report-free of charge-within the next 15 minutes.

Here’s how…

How to Get Your Trial-Preview

Normally, we charge $1,000 per year for my monthly research.

No, it’s not cheap, but I believe that’s an absolute bargain.

No one… and I mean no one on or off Wall Street, does the type of in-depth research I do to find a single good investment.

That’s why some of the wealthiest and most respected people in finance read Extreme Value.

If you were to put your money with one of these professional managers, you would easily pay two, three, four – or more – times as much as I charge… and frankly, the advice wouldn’t be half as good.

And here’s the best part of all: For a limited time only, I would like to give you the chance to try out my research at a much lower price…

It’s an amazing opportunity I think you’ll find very valuable…

Today, I would like to offer you a 50% off, preview of Extreme Value for just $500.

By taking me up on this offer, you are agreeing only to TRY my work to see if you like it. If not, no problem… we will part ways as friends.

In short: Start a trial subscription today, and you’ll have 90 DAYS to decide whether my research is right for you.

If for whatever reason you want to cancel your subscription in the first ninety days, call our toll-free number and just let us know. We’ll give you a full refund (minus a 10% refund fee).

You see, we want to avoid “tire kickers”- the folks who sign up without any intention of paying. This costs us a small fortune in overhead expenses, especially when we offer special discounts (5o% off) like this one.

As soon as you let me know if you want to take a trial look, you’ll have access to:

12 monthly issues (1 full year) of Extreme Value. On the second Friday of every month, I will send you a full report (by email and regular mail) on what I believe is the best “value” investment in the market so you can act right away.

Research Report #1: One Investment That Can Pay For Your Retirement. Shows you how to see massive gains over the next few months on the new royalty company that could potentially turn every $5,000 invested into $1.6 million.

Research Report #2: How to Make Safe 50% Gains From “Tax Revenue Shares”. The opportunity to get paid a small fortune on about 16% of the tax revenue paid in the U.S. Even Warren Buffet owned $10 million dollars worth of these safe investments at one time.

Research Report #3: The World’s Most Desirable Beachfront Land for $1,500 An Acre. Prime beachfront property in one of the most popular destinations in America. You could buy this pristine land today and potentially double your money over the next few years.

Every Extreme Value issue ever published (going back to 2002)

Extreme Value website access. You will have 24-hour access to the complete archive of Extreme Value Monthly Issues, Special Reports and E-mail Updates..
If all you do is simply read one of these reports and follow just one recommendation—your subscription could easily pay for itself many times over… with very little risk.

To get started, and to get instant access to all of the investment research I described in this letter, click here.

Good Investing,

Dan Ferris
Editor, Extreme Value
August, 2009

P.S. Remember – we’re making this special 50% off preview price available to you for a limited time. If you’ve ever wanted to try Extreme Value, there has never been a better time than now. See the order form on the next page for our money back guarantee.

Subscribe Now

——————————————————————————–

You are receiving this message as part of a subscribers-only e-mail service covering the worlds of investing, finance, and economics. You are receiving this email because you subscribe to one of the investment newsletters published by Stansberry & Associates Investment Research. PLEASE DO NOT REPLY DIRECTLY TO THIS EMAIL. To contact us for any reason, see the notice at the bottom of this message.

All contents of this e-mail are copyright 2009 by Stansberry & Associates Investment Research. All rights reserved. Reproducing any part of this document is prohibited without the express written consent of Porter Stansberry. Protected by U.S. Copyright Law {Title 17 U.S.C. Section 101 et seq., Title 18 U.S.C. Section 2319}: Infringements can be punishable by up to five years in prison and $250,000 in fines.

DISCLAIMER: The work included in this publication is based on SEC filings, current events, interviews, and corporate press releases. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The views expressed in this publication and on the DailyWealth website do not necessarily reflect the views of Stansberry & Associates Investment Research.

You’re receiving this email at j963@hotmail.com. If you have any questions about your subscription, or would like to change your email settings, please contact Stansberry & Associates at (888) 261-2693 Monday-Friday between 9:00 a.m. and 5:00 p.m. Eastern Time. Or if calling internationally, please call 410-895-7964. Stansberry & Associates Investment Research, 1217 St. Paul Street Baltimore, MD 21202. If you wish to contact us by email, please do not reply to this message but instead go to info@stansberrycustomerservice.com.

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javier de León
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August 12, 2009 4:20 pm

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