“Profit from Al Capone’s Legacy” Xcelerated Profits

By Travis Johnson, Stock Gumshoe, August 11, 2008

This is the first we’ve heard in a couple months from the folks at Xcelerated Profits, the newsletter run by Karim Rahemtulla from the Agora/Oxford/Mt. Vernon megaplex in Baltimore, and he’s apparently spent that time wisely building a big ‘ol sales letter that teases a bunch of companies and includes some fun Al Capone history.

Good stuff.

And no, this is not a tax evasion teaser — I must admit, that was my first thought when I saw that we were looking for “Al Capone’s Legacy,” I figured we’d be trying to evade the IRS.

No, this is a bit more simple — profiting from the same kinds of things that made Al Capone rich, mostly booze, cigarettes, and gambling. Of course, the competition was a bit more limited then, since it was all illegal, but certainly those are all still very profitable “sin” businesses these days.

And though I’ve noted before that I won’t personally buy tobacco stocks, that doesn’t mean I shy away from all “sin” stocks — I’m a big fan of gambling and gambling stocks in general (though clearly they’ve been clobbered this year), and I have no complaints about investing in the firms that brew, distill and age the delicious intoxicating beverages that I enjoy from time to time. And I’m very happy that I don’t have to go down to the docks to buy bathtub whiskey out of the back of a speedboat.

So let’s find out what these companies are, shall we? The first one has the clearest connection to Capone, so we’ll start with that.

Why Capone? Because he was rich, of course … here’s how they whet our appetites:

“Estimates of Capone’s personal income exceed $20,000,000 a year.

“In today’s dollars, his income would exceed $242,000,000 per year. Yet according to FBI records, “Scarface” died virtually penniless.

“Over the next five minutes, you’ll discover where his missing money is being held. And for the first time ever, I’ll reveal how a handful of Americans are now collecting monthly checks from the fortune he left behind.

“As USA Today reports, “60 years after his death, they still can’t run him out of town.”

“It’s a thrilling tale of gangland derring-do. And it comes with a surprise twist: One that could put an extra $15,945 in your bank account each month starting days from now.”

OK, so the “still can’t run him out of town” quote from USA Today is actually from an article about how Chicago doesn’t much like gangster-themed tourism … but we get the point. Capone made a bunch of money from his illegal enterprises … and some of those enterprises are legal now, and maybe you can make money from them.

The first stock Karim Rahemtulla thinks you should buy to profit from “sin” is one that Capone actually had a small connection with … here’s that story, in copywriter-speak:

“… a young man from the Midwest, whose business was thriving before Prohibition, was determined to succeed.

“His savings were dwindling quickly… cash was needed, fast. So he turned to the richest, most powerful figure in the history of American booze… and asked for an infusion of money…

“Capone, smelling opportunity, was glad to oblige. But he couldn’t just transfer funds from his “gangster bank account” into his new partners’ business… where it would be easy to trace… and to tax.

“So how did Capone filter the money to his booze-producing buddy?

“Simple. He moved the cash through an entirely legal, “unrelated” transaction more than 1,000 miles away from Chicago… in a picturesque little Florida town called Palm Island….

“There, Capone’s partner owned a beautiful fourteen room villa, with a gatehouse and 300 feet of water frontage in an enclave of waterfront homes in Biscayne Bay, just minutes from Miami Beach.

“It was the perfect place for a gangster from Chicago to safely “lay low”… and to hide a huge, secret investment in a booze business that would eventually be worth millions of dollars…”

OK, so this was actually a pretty good story … even if it’s probably an exaggeration. The man who built that mansion was Clarence Busch, of the famous beer family, but what I’ve read suggests that he didn’t actually sell it to Capone, it was owned by someone else at the time. And if there was any direct relations