I left out the little asterisk in that headline — we’re also told that “your payment could be higher or lower than $4,000.”
Which means, of course, that it could be zero … but still, let’s look into this odd headline and the teaser that follows it, and see if we can’t sniff out just what they’re talking about, shall we?
The “they” in this case is Zachary Scheidt, who has darkened the virtual door here at Gumshoe Manor on many an occasion — the most recent teaser of his that really caught the interwebs on fire was for the “silver shots,” a teaser for call options on the SLV ETF that was trotted out a couple times when silver was rising.
That silver teaser was for Scheidt’s options newsletter, which they call Velocity Trader (not as sexy as the old name, Death Cross Trader — but perhaps less intimidating). Today’s teaser, though, is for a different letter called New Growth Investor that’s more focused on growth stocks and, I assume, longer term investments … we’ve covered some picks from this letter in the past, too, including one for the “Back Mountain Covenant” that was about shale gas, and another one that pitched a handful of gold miners and threatened that President Obama wants to confiscate your gold. So he gets around, topic-wise, but most of his teases I’ve seen of late have been in the natural resources arena.
And today is no different — today’s tease starts out by telling us about this elderly San Diego woman and how her dying wish will make you rich, but after that it gets into a pick that’s somehow connected to her… let me just give you a taste of the tease here:
“There’s a unique situation unfolding in the next two months that could make you $4,000 with very little effort.
“It’s all thanks to the kindness and amazing philanthropy of a very wealthy elderly woman from San Diego. She passed away in 2006 at the age of 85, and only then was the full extent of her charity known.
“But that was how ‘Mary Catherine’ wanted it. (For privacy reasons, I can’t use her real name in this letter.) She didn’t want any thanks.”
Not to put too fine a point on it, but “Mary Catherine” stopped being private when she passed away — and the quotes about how she wished to be anonymous in her philanthropy are from newspaper articles, so obviously Scheidt doesn’t need to keep her name “hush hush” to save her family the attention … but, as you’ll see in a minute, he does need to avoid giving away her name if he doesn’t want to spill the beans about his top-secret investment idea to the great unwashed (that would be non-subscribers like you and me).
And her dying wish to give away her fortune is apparently going to make us rich:
“… when she died, she still had a huge chunk of money in her trust… a stake valued at over $9.4 billion.
“It was her dying wish to see all of that money given away as well.
“By the end of April, those last hopes will become a reality. And you could claim a small personal stake in this massive fortune.
“It doesn’t matter if you’re rich or poor, old or young, Republican, Democrat or other…
“Because of Mary Catherine’s generous nature, you could be on the receiving end of a lump payment, courtesy of her estate.”
And, you guessed it, there’s a stock and a company connected to this story …
“… almost every cent of Mary Catherine’s $9.4 billion are in the shares of one publicly traded company.
“Not just any company either; one of the largest and most profitable mining companies in the world.
“The essential resource they mine for is coveted by China and other emerging economies, most of which can only mine small amounts of this resource in their own countries.
“That’s why shares of this company have shot up 121% in the past seven months.”
And then we start to get the idea of how we’ll get rich … and a few clues about this company …
“Fiscal 2011 second-quarter earnings were nearly 10 times larger than the same period last year, going from $107.8 million to $1 billion.Are you getting our free Daily Update
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“I expect this company to continue growing at a rapid rate over the next few years. It’s already the second-largest producer in the world of this essential resource.
“However, Mary Catherine’s estate has created a unique situation with this company, a chance to make 40% off its shares — in a single day.”
The basic story is that “Mary Catherine” wants her money given away, and in order to do that they have to liquidate some of the estate, which means they need to “split off” this company.
And Scheidt tells us that there are rumors about a takeover happening soon — and that there is motivation to get it done before the “split off” to simplify things. He includes a quote from the Financial Times, too:
“According to the Financial Times, ‘an offer that is at a 40% premium to current share price is likely high enough for the special committee to seriously entertain a bid.’
“That means if a bid is accepted by the end of April, and you own shares in the company, you could make 40% in one day!”
So that’s one possibility — and Scheidt says that he thinks the company is in such a great business that it could get you gains of 150-200% even if it isn’t bought out by someone else.
Ready for some answers?
Well, “Mary Catherine” is really Margaret Anne Cargill. So if you’ve been following the news you probably know what this means about our stock … it must be Mosaic (MOS).
Just to finish our dot-to-dot illustration, I’ll fill in for those who haven’t followed the story: Cargill is one of the world’s preeminent large businesses, with roots as a grain handler in the midwest and much of their work now in food and agriculture-related sectors (though not all — they got into oil, steel, financial services and a bunch of other stuff, too … they even run the world’s deepest salt mine near where I grew up in Centra