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URGENT: What european sovereign
debt means for your investments...
A Very Rare (and Serious) Chance to Bank EIGHTEEN Gains of up to 459% Between Now and October 2011
If I'm right, the European Central Bank's quantitative easing has created the exact same conditions that helped my readers bank 18 double and triple digit gains in 17 months. Read on and discover a daring strategy that could turn Europe's debt crisis into a string of potential returns between now and October 2011... Dear Reader, It's time to get busy... The European Central Bank has joined the 'Bail-Out Brigade'. Its $1.1 trillion rescue package – announced recently – avoided what looked to be another murderous crash in the making. This amount, by the way, is more than the annual output of the Australian economy. It's a big deal. Now this is not normally the sort of event that would affect your strategy on profiting from Australia's great small companies. But these are not normal times. And if I'm right, what's happened could be setting the stage for a very profitable move in Aussie small cap stocks. How do I know this? Because something like this has happened before. And last time it did, readers of my newsletter managed to turn what others perceived as a crisis into a great opportunity. Let me explain... In October 2008 it was the American Federal Reserve's printing presses that whirred into action to save the global financial system. This flood of liquidity sent stocks up at first. Then it spooked investors, who fled the market over the next six months. But during those same six months that global stock markets were bottoming, I recommended a flurry of stocks to my readers. These were stocks that I was sure would rebound smartly but were selling cheap based on the huge amount of fear in the market. Everyone else was running scared or going to cash. But I wrote: "There has been an unprecedented level of global government intervention designed to prop up financial markets.So we quietly went about loading up on good Australian small caps. We captured huge gains from the rally. And more importantly steps were taken to ensure that if you did make those gains, you locked them in. In fact... The recent vicious sell-off and subsequent rescue package is something I've been preparing my readers for since October 2009. At that point the Australian market hit a peak. I decided it was time to start locking in profits. Right now your cash balance would be overflowing if you'd kept a cool head and followed my advice, including: ...Bow Energy's history-making rise from $0.17c to $0.95c in just 7 months – AB, emailed to say: "Awesome, awesome, awesome trade! Where do I start? Wow. Total profit: $64,213."You see, last October there were twenty-nine stocks in the Australian Small-Cap Investigator portfolio. Today we have just four. That means you missed 18 double and triple digit gains made in a 17 month period. But don't feel bad... Thanks to the European Central Bank it's 'Take 3' So, what does this have to do with today? Well, the last time markets took a king-hit and Central Banks flooded the financial system with fake cash... I positioned my readers to profit. Now I'm ready to do it all over again. And it's not too late for you to join in. The Greek rescue package is a staggering amount of 'instant money'. But how much is it? Let me put it this way... It will take the European Central Bank about a tenth of a second to create the billions of Euros needed. Yet it will take 10.9 million Australians working an average of 35 hours per week for 52 weeks to produce the same output. Got that? One-tenth of a second versus one year. A massive monetisation of debt and an increase in public sector liabilities has now been set in motion. Will this monumental hand-out save Europe? Maybe. For now. Will it prevent future financial contagions? Probably not. Will the Euro survive? I doubt it, but who knows? The question YOU need an answer to is: will this bailout create chances for you to make a lot of money in the next 12 months? My answer, and I can speak from experience, is yes. In the short term central bank money printing in Europe (and America) will quell fears of a new credit crisis. All those Euros flooding the markets will create substantial opportunities for investors who know how to position themselves. The Greek rescue package is going to inflate certain stocks more than others. Which stocks though? Read on and find out... How to Land 18 Mega-Profits in 17 Months The clock has rewound to October 2008, when Treasury Secretary Henry Paulson announced a $700 billion bailout of the U.S. financial system. When that happened I immediately told my readers: "I want to ensure we fully explained our strategy and outlook to you during the middle of a historic period in the markets.If you'd followed my advice since then you would have locked in the following gains before the market crashed:
The point is this... Crashing markets and unprecedented rescues tend to have a "deer in the headlights" affect on most investors. But if you can calm your nerves over the next few weeks... and pick off good stocks that no one else is looking at... you can make a fortune. We did it during the last 17 months. There's no reason we can't do it again. Do YOU want in on Round Two? Buy These Two Shares NOW
I have the benefit of retrospect and can see the many of our best returns of the last two years were stocks bought when everyone was still reeling from the October '08 market sell-off and subsequent U.S. bailout. Same applies here. I've picked my two very best 'Pocket Change Punts' that I believe will kick-start a new round of profits in the year ahead... The first company is developing one of the world's most strategic mineral resources. And it's doing it right here in Australia. Amazingly enough it could be the one natural resource to benefit from a slowdown in the Chinese economy. Then there's the show-stopper... It's a Melbourne-based company that's developed a 'pantry-sized power-plant'... a patented technology that could re-invent the way you power your home or small business. A 525% return is up for grabs if this company achieves its ambitious goal. That could turn $5,000 into $30,000 – with change... These stocks carry a lot of risk. I call them 'Pocket Change Punts' for a reason – you'd be mad to invest money in them you're not prepared to lose. See, most ordinary investors are perfectly happy to make 5% to 10% a year from stocks they own. In good years, like last year, you'll do better... in bad years you'll do worse. As you'll see below, a small group of Aussie investors look at the market differently. They're after money multipliers – double, triple and even quadruple-digit gains – in months rather than years. Small cap investing is all about taking big risks. It's about getting exposure to a number of companies that have the potential to gain 200%, 400%, or even 900% in a short period of time. For that to happen, you need to invest in the "small fries" of the market. I'll be blunt; if you're the kind of investor who hates risk and gravitates to safe investments like blue chips and bonds, you should stop reading. But if you like the idea of putting a little money down right now for the chance to make a LOT more in the next 24 months, then devote five minutes of your time to the following report. First, a strong piece of advice before we go any further... If You Snooze, You'll Lose The stocks I want to share with you – at this critical juncture in the markets – are opportunities that will pass you by if you don't act immediately. After the American bail out, most of my readers closed their eyes, held their nose and jumped into my recommendations as soon as I gave the buy signal... despite 'buying' being out-of-fashion at the time. Take Bow Energy. Bernie M. made $70k clear on this 'punt' by buying as soon as he could and taking profits as soon as I issued a sell recommendation. Some of his fellow 'punters' weren't as lucky. Stuart Campbell lamented: "I bought into BOW at $0.33 after procrastinating initially on the original tip at $0.17." He still made a boatload of cash – 187% in a few months – when Bow jumped to $0.95 cents. But immediate, decisive action would have added thousands of more dollars to his payout. So be clear: this isn't a sit-around-and-mull-it-over situation. If you pass – no worries. If you're with me... and you want to buy the two stocks I'm going to tell you about... do it quickly. Equally important: Make Sure You SELL When I Give the Word If you want to make BIG money from stocks, what you need to do is act rationally while other investors sink into their familiar patterns of panic and excitement. And the rational thing to do – in my book – is to: 1) Buy great stocks while they're still trading for pennies. And, 2) Take profits off the table when they're there, even if you still like the stock and think there is more upside potential. When the market gives you a chance to cash out – TAKE IT. With small cap stocks, there's always another potential triple-digit gain on the horizon. As you'll see in this letter, I've been extremely successful in unearthing these opportunities for my readers over the last three years. In fact we have an astounding overall gain of +54%... including losers. What's more: I don't think anyone else in Australia is doing this for private investors like you. Look... You've seen stocks rise and rise in 2009 and 2010. You've seen a jaw-dropping fall in stocks... swiftly followed by another history-making intervention. You'd be forgiven for not know what the hell's going to happen next! You've got two choices: keep your money on the sidelines... or take some calculated 'punts' on the kinds of stocks that can soar in ANY market. Stocks which, in most cases, are trading much more cheaply than they were a month ago. I've got two such 'punts' ready for you right now. You probably won't have heard of then. Why? Gains like these only occur when you
buy stocks that no one else knows about There's one thing these stocks have in common: they are small companies in the very early stages of growth. More importantly: they are virtually invisible to institutional investors and mainstream financial publications. I'm almost certain not a single analyst in any brokerage spent much time in 2008 scrutinising Bow Energy's quarterly statements, digging the dirt on some frankly astounding new gas projects in the pipeline, researching its future plans and getting one-on-one time with management. Finding hidden value in small companies – while they are still trading for cents – is where private investors like you and I can make substantial money. What you're looking for is some kind of massive development coming down the road for a company that no one else has picked up on. This was my criteria for selecting your three 'Pocket Change Punts' (more on those in a second.) In a 2005 Kansas University interview, Warren Buffett explained: "You have to turn over a lot of rocks to find those little anomalies. You have to find the companies that are off the map - way off the map."For reasons I'll explain every 'Pocket Change Punt' I recommend is 'off the map'. Investment analysts aren't tracking them. Brokers rarely recommend them. Australian Financial Review isn't writing about them – especially now, with its journos focused on the economy and Europe. THAT'S why you can buy them for cents on the dollar. But – as you'll see clearly – this is a situation that doesn't last long. If a small company has a hidden asset that institutional investors haven't picked up on yet... a deal about to be inked that will drastically increase future revenue... or a patented 'disruptive technology' that will change an entire industry... the company won't stay 'off-the-map' forever. It will get noticed. My job is to tell my readers about these kinds of stocks first. If I'm lucky, I get to do it during exciting periods like the one we're entering. And I'm convinced I'm the only analyst in Australia providing this service to private investors. This is a field – as you'll discover below – that we have almost exclusively to ourselves. I'm not sure how long we'll hold into that advantage. So, very shortly, we'll get to my two latest 'Pocket Change Punts'. Each has a compelling story – just like LNG and Bow – that has received zero coverage so far from mainstream analysts. I'm willing to share my full analysis of these stocks – including why I think there's scope for their share prices to be 525% and 489% higher, respectively, within 24 months. I'm going to share full research on these three stocks with you free of charge. Why? I'll explain in a second. First, let me show you why – right now – you and I have an incredible advantage over every money manager, broker and investment tycoon in Australia... The secret 'edge' you have over Australia's richest and smartest investors... When it comes to the tiniest companies on the ASX you hold a trump card... but if you're like most investors, you don't realise it. It's an all-access pass that allows you to stake a claim in companies that the best investors on the planet WISH they could own but can't. When it comes to staking a ground-floor claim in the best investments on the ASX, this trump card puts you streets ahead of investment giants like Warren Buffett and George Soros. So what is it? Simple: You've got FAR less money in your pocket than them. Sounds loopy, I know. But in most cases having billions of dollars automatically bars you from investing in the kind of companies that make my readers money. The truth is every fund manager is unbelievably restricted when it comes to what companies they can invest in. Even if, by some miracle, they stumble upon a tiny stock and learn that it's going to quadruple its revenue in a year – THEY ALMOST ALWAYS CAN'T BUY IT! Why? First, there's liquidity. Large caps are very liquid – there is usually a lot of stock, so it's easier to buy and sell at the price you want. Small caps aren't liquid enough for big fund managers to get into and out of with ease. They simply have too much money to invest. It's impossible for them to take large positions without pushing the price up. How, for instance, can a big fund manager make a $500 million investment in a $250 million company? Too much beer, not enough schooner. Then there's the fact that small companies are... wait for it... small – too tiny to have a meaningful positive impact on a $4 billion fund – even if they go up 50% or even 500%. Micro investments offer less profit potential for the big honchos. That's exactly why Warren Buffett told Business Week: "It's a huge structural advantage not to have a lot of money. Poor old Warren Buffett... Poor old Warren; burdened with all those billions. He lacks a 'structural advantage' that belongs to you and I. It's the reason I've been able to position my readers into a whole raft of stocks that have returned triple digits in the last 24 months. I have many mates who still work in investing who salivate when I tell them about my track record. See, they KNOW these gains are out there. But the limitations of their job – and the size of their portfolios – put them beyond reach. So small companies like the ones above are mostly left alone... to be picked over by individual analysts and lone private investors like you... like prospectors patiently panning for penny stock gold in a small creek... What you are looking for are the nuggets that indicate a richer vein. What most investors find is mud... and a swirl of confusion. But if you want the big strike, that's where you must do your work: finding a good, well run business on the cusp of its hockey-stick growth phase. As Buffett continues: "Having a lot of money to invest forced Berkshire to buy companies that were less attractive. With less capital, I could have put all my money into the most attractive issues and really creamed it." Small caps are the best way I know to really 'cream it' if you're an average person trying to build wealth over months... rather than decades. Dozens of analysts and traders follow the large companies. The market for ASX 200 stocks is efficient. There are rarely pricing anomalies or bargains you can pounce on. But the small cap market is chock-full of pricing anomalies... hidden value... and inefficiencies. This is where you can make big money, FAST. You can get a taste of what I mean with my best three 'Pocket Change Punts'. But hold fire, because first I want to illustrate HOW I've been able to position my readers at the ground-level of these kinds of investments... when virtually no one in Australia was aware of their existence... How beers at the BLVD Bar could have gifted you 243%
I was about to get another Matilda when one of the trader guys in our group dropped a name that got my full attention: Maurice Brand. Probably doesn't mean much to you. But I'd been chasing this elusive bloke for nearly three months. He's the Managing Director of a tiny little company called LNG Ltd – trading for pennies, dwelling at the bottom of the ASX and yearning for bigger things. But there was reason to believe this 'no name' in the Australian energy sector was poised to open the first LNG plant in Queensland, a full three years ahead of its rivals. I'd sniffed potential wafting from this company all year... but only potential. If I could just get rock-solid confirmation that this mythical gas plant was a go-ahead, I was sure this 35 cent stock was going to go ballistic. Getting data on small, unpopular, thinly-traded stocks like LNG Ltd is hard work. And Brand is notoriously cagey when it comes to releasing info on his company's progress. But I needed a direct line to him to confirm the story.
A few more beers and I convinced him to put me in touch. I couldn't believe it the following Monday... My questions to Brand were emailed back, answered in full. He even agreed to a personal meet-up in the New Year. As it turned out: it was no rumour – the project was going ahead and an off - take agreement was going to be signed that week. That gave me, and my readers, the scoop. Had YOU been one of them, I would have advised you to buy LNG Ltd at 35 cents, saying: "With LNG Ltd you get an outstanding
opportunity to gain access to a market that is set to treble in the next six years." And twelve months later I would have recommended you take profits of 243%.
But just think about that return again: 243% in 12 months. Yes, it was a perilous investment – but it was one that returned 42 times more than a high interest bank account over the same period... Did the high-flying brokers on Collins Street get in on this trade too? Yeah... eventually... near the end of it. That's what sent the price flying. But in the early stages – where you see the price zigzagging around the 50c mark – the bigshots in charge of huge trading accounts considered LNG Ltd barely worth a cursory glance, if noticed at all. Why? As I'll show you, unearthing the LNG-type stocks I find for my readers each month is fundamentally NOT the business of the brokerages. Not their territory. They earn their considerable salaries offloading well-known ASX 200 stocks in large volume. That's why stories like this next one slip under the brokerage radar... "Giant" gas field = 459% in SEVEN MONTHS You know you're onto something when you start to question your sanity... Take Bow Energy, our biggest winner in 2009... After a week elbow-deep in research on this tiny gas producer's supposedly "giant" (that was the CEO's claim) new gas find, I was convinced I was going mad. It was all too perfect. If these numbers were right, this company was sitting on roughly 10% of Queensland's recoverable gas reserves. It seemed impossible that I was the only person in Australia who could see this. But that's what Bow's share price was telling me. At the time you could buy Bow stock for less than the cost of a postage stamp. I had to be missing something. The recoverable reserves it had already confirmed meant Bow should be valued around $140 million – that was nearly six times the current share price. What the hell was going on here? Again, I went straight to the source. I spent two days trying to get hold of Bow's CEO John De Stefani. Finally, at 4pm on a Friday, his gravelly voice was on the other side of the line. The story was true. Bow Energy was, indeed, sitting on a vast gas resource of 6,200 PJ. For this reason, Stefani said Bow's goal was to become a "mid-tier listed energy business within three years." Let me tell you – companies don't get to be mid-tier with a market cap like Bow's ($26 million at the time). They do get to be mid-tier with a market cap above $1 billion. My hunch was that Bow Energy wasn't going to stay a 'small cap' for long. I wasted no time and recommended Bow to my readers in December 2008, saying: "I believe this stock has the potential for a 438% return within
the next twelve months. That's based on Bow getting certification of the first 200 PJ at the Don Juan project." Turns out I got it wrong. We sold Bow Energy for a 459% gain just seven months later. As I said, one reader banked $64,213 on this trade... another $70,000... Imagine that cash hitting your bank account!
To understand why, just do the numbers... Say we're looking at a company with a market capitalization of $238 million. (That's big my standards – I usually look for companies under $150 million.) The GESB fund has assets of over $6 billion. Say GESB bought the whole company... it would have to rise 27% in value to shift the entire fund up just 1%! And that's a BIG small cap! It's just not worth it for behemoth funds. They have to stick to more heavily traded, large-cap companies. But the huge funds make up only one part of the world of institutional investing. There are smaller and mid-scale funds... and then there are brokers who work on behalf of private clients. Which begs the question: why don't THEY chase after the companies I tip to my readers when they're trading for pennies? "If these stocks are loaded with so much
potential, why don't brokers make more of an effort to go after them?" First, you need to know how the whole industry is set up... There are two types of analysts – 'sell side' and 'buy side' – and, unlike me, neither of them is particularly interested in digging up great small cap stocks. My background – when I was still with the financial institutions – was sell-side.
From experience, here's what sell-side guys do: SELL STOCKS to clients on behalf of a brokerage. And the best stocks to shift are 'A-List' stocks – Telstra, Rio Tinto and the like. You just shovel as many big-name stocks as possible and swallowing the commission. Don't get me wrong – sell side guys work hard and are good at what they do. To get by you need to be industrious, intellectually curious, scientific and resourceful – all the things that make a good stock picker. You also need to have a finetuned bullsh*t detector.
Think about it... If you make your money based on how many shares you trade... then small cap stocks trading less than 15,000 shares a day are simply not worth following! When you look at it that way, it's no wonder that many of my colleagues thought these corporate "small fries" served no purpose. It's because the stocks didn't suit THEIR purpose. And for the most part, THEIR purpose is to make a transaction on which they can charge YOU a fee. The easiest way to do that is to sell you stocks you've already heard of. Why write a 10,000 word report on a small cap you know only a handful of clients will buy? As a broker, you'd be out of a job in a hurry if clients don't buy the stocks you tip. Then there are the buy-side guys. They don't care much for small caps either. Essentially they make a living by selecting stocks to be owned by a fund. The buy side guys don't cover small caps because they can jeopardise their main objective – which is to track the index. They're after a "relative return". If you're a money manager, it's "job-well-done" and "here's your five-figure bonus" if you manage to beat the index by 1.5%, or even just track it for crying out loud. You don't do that by taking excessive risks. You do that by mindlessly covering ASX 200 stocks. That's what relative returns are about.
The point is this: The big boys simply can't be bothered with small caps... because at heart... finding great stocks for individual investors is neither their passion nor their business. It's not how they make money. It's how WE make money, though... See, I head up a small band of ordinary private investors who see ABSOLUTE return as the Holy Grail. We don't care about 'beating the index' a few percent. I mean really... what use is the portfolio of stocks you own only being down 15% when the wider market is down 20%? It's still a 15% loss. Why bother? As a 'lone wolf' investor, you don't have these restrictions. You can throw as little or as much as you like into a company. Bottom line: every one of the 2,100 stocks on the Aussie market is fair game for us. Look, I know from first-hand experience: Whether he's buy-side or sell-side, he sure as hell isn't on YOUR side If you want to make money from small stocks – or any stock for that matter – you need research by an analyst completely divorced from the investment industry and all its buried agendas. You need someone exploring the vastly expanding sea of information and data and looking at ALL profit opportunities available on the market – not just a small subset everyone else is all over. Above all... You need someone who's full time job is to be a 100% independent analyst. Someone who spends each and every day probing, cross-referencing, sifting, sorting, compiling and badgering... You need someone with first-hand experience of how retail investors and professional money managers operate... but who is actually able to TARGET tiny companies with little or no analyst coverage. In short: You need a dedicated, independent 'small cap investigator' backed up by a killer track record... AVERAGE WIN – 147%
Here is my unvarnished track record: Since I started recommending small cap stocks to my readers in March 2007, we've sold out 31. 18 of those stocks have been winners. 11 were losers, 2 were break even. So in terms of frequency, winners already outstrip losers nearly 2 to 1. But that's not the most important point... If you'd invested in all of my winners, the average win would be barnstorming 147%.So in terms of size of profit/loss, the average win was three-and-a-half times as big as the average loss. That's crucial. If your wins triple your losses you can afford to get as many misses as hits. As it happens, we're still getting almost twice as many hits than misses... and they're three-and-a-half times bigger than our losses! But – thanks to a vital 'tweak' made to our stop loss strategy in August 2009 – I'm aiming to achieve even better results in 2010 and 2011... How to use 'trailing stops' to shrink
average losses to -10% or less In August of 2009 I added 'trailing stops' to the Australian Small Cap Investigator strategy. This is where you move your stop loss UP if a position reaches a certain profit target. I told my readers:
Of course, I'll give you plenty of guidance. But you need to remember I'm providing general advice and you need to assess your own attitude to risk." So now I give advice on trailing stops for every tip that triples in value. It means if a stock backslides, you'll still bank gains. It MAY mean a few occasions where you sell out, only to see the price bounce back even higher. That can hurt – but you'll still be in the money. It's a prudent way to act if you're a small cap investor in the current climate. You'll see more in a second on how I hope to use trailing stops to drag that -41% average loss down to -10% or even lower. But it's important to point out: Even without trailing stops which were implemented in August 2009, all tips – winners and losers – STILL show an overall gain of +54%. With results like that, you start making serious money very quickly. Money you never banked on...extra cash you can pump into a new boat, a kitchen renovation, a road trip around America... As I've said, I know guys beavering away in investment firms with millions tied up in multiple research divisions who would KILL for that kind of absolute return. But don't take my word for it. I've arranged a way for you to get full research on my three latest 'Pocket Change Punts'. (If you're remotely curious about the potential of investing in small cap stocks, go straight to the end of this report.) The advantage, in this arena, is OURS... rogue private investors who can exploit lack of coverage to uncover some new, exciting development about a company before it becomes known to the investing community at large. That's why you see the kind of track record I have. With each and every recommendation I make the aim is to make fast, ferocious, triple-digit returns. Why actively participate in the stock market if that isn't your goal? The lapdogs of the institutions don't play that game, though. So they don't bother to look for stocks like this one...
The 'Untouchable' equity that could have made you 138% in 24 weeks "With a $16 million market capitalization, as energy plays go, this one is at the 'really risky' end of the risky scale." That's how I introduced coal seam gas (CSG) explorer Eastern Corp to my readers in April last year. A $16 million market cap isn't just small. That's miniscule. (Some traders I know have that amount of money tied up in their personal property portfolio.) But I'd been following Eastern Corp for six months, since December 2008 – because it held a 68% ownership in the Galilee Energy project located in central Queensland. Galilee, at the time, was pretty much uncharted territory for coal seam gas. Important point: The market uses all of the available information and news about any given company to price its stock. But there was practically ZERO information circulating on the Galilee Basin, or on Eastern Corp. Without a flurry of analysts and commentators following this tiny stock, its share price was slow to react to its everchanging situation. And the situation was changing... FAST. Australia's leading energy provider, AGL, had recently committed $37 million to Eastern's CSG project at Rodney Creek. That's right – an external investment that exceeded the entire market cap of Eastern by $11 million. This is a project that consultants JR Holland & Associates reported as having a 97% methane content and a 'Gas in Place' estimate of more than 20 trillion cubic feet. Don't worry about the technical stuff, that's my job. In essence: If this project reached its potential we were looking at a very big return. How big? Eastern's 20tcf of Gas in Place equated to 20 billion gigajoules. That would put a potential value on the entire asset of $12 billion. That would put the $0.21 share price at $3.52. Of course, Eastern's project could have ended up nothing more than a big hole in the ground. That's why folks at Goldman and Macquarie usually won't go near companies at this stage of development. There's just too much they don't know and too much that could go wrong. And that's why their clients will never see 138% gains in six months. My readers slotted away this return when we sold out of Eastern Corp in October 2009. Look, it was a hazardous play – I want you to be clear on that, just like my readers were when I warned them "this is one company that you could end up either losing your shirt, or gaining a wardrobe."
That's how it goes in this game. And, really, who's complaining about a 138% gain in six months? But you DO need to realise: RISK is why we have this playing field all to ourselves Institutional investors aren't stupid. But the character and mindset of the pro analyst is naturally risk-averse. The guys pulling the trigger on massive share transactions every day aren't 'punters'. I'm not going to sugar-coat it – good small cap investors ARE punters. But we have infinitely better odds in our favour than some random bloke at the races.
Sometimes it doesn't happen. Small companies fail all the time. Some small companies fall over NOT because their business model is bunk but because they're stocks whose shouts just haven't been heard. That's why many companies decide after a few years: "Sod this, let's go back to being a private company again." It's damned hard sorting the winners from the losers. And it's a job that never ceases – whether I'm tied to a phone all morning, dissecting a spread sheet, on a plane to a dusty mine site in the Pilbara, poring over annual reports... All the while you're constantly questioning yourself:
It's a big responsibility, one I don't take lightly. Even when you're 99% certain you've discovered the next Fortescue Metals, you can still turn out to be wrong. But you know what? That's why you get paid like a rock star if you get it right! It's not a comfortable space to occupy. And that's the psychological risk with buying a stock trading for 19 cents: you'll risk looking like an idiot to your colleagues, family and friends if you're wrong. No one likes being wrong. It's embarrassing. And it costs money. But staying so far ahead of the herd you can't even see them in your dust is exciting, addictive, and highly lucrative – if you're correct. Needless to say this is a very fun place to be. You're surfing inside an enormous pipeline – where you can get crushed by the whitewash or ride out the other end to glory. But here's a question... If institutions don't like small cap stocks, what eventually drives the price up when you find a good one? As I've said, it doesn't pay Australian analysts to research stocks unless they can make enough money to make the effort worthwhile. So obscure securities, which don't trade in volume, are generally ignored. But... If a story is good enough... eventually...
a pro analyst will recognise it... For the most part, small caps suffer due to their lack of visibility within the investment community. This creates a disconnect between a company's stock price and its fundamentals. That's BRILLIANT news if you can identify this discrepancy in the early stages. Because sometimes – very occasionally – a mainstream analyst will notice it too... and be practically forced to break their small cap taboo and add the stock to their analysis roster. (See some of the catalysts for this happening to the right.) From there it snowballs... Word starts to spread... financial writers, reporters, analysts and bloggers start mentioning the name monthly, weekly, then daily... quarterly reports go from gathering dust to being downloaded by the dozen... What happens – ultimately – is the information gap that afflicts nearly all small caps rapidly closes. When you watch that unfolding with a stock YOU owned from the get-go... when you see, day-by-day, the sudden uptick in coverage propel a stock price from pennies to dollars... and it's a situation YOU predicted a year ago... when this same stock couldn't get a write-up in a comic book... mate, it's a euphoric feeling very hard to describe!Don't jump the gun: It only happens to a few companies – perhaps as little as one out of every 50 small caps trading on the market. But out of 18 winning tips, my readers have enjoyed 11 triple digit whammies – the highest win being 459%... And it could happen for YOU, if
you're game for the ride... I wanted to provide you with an easy, low-risk entry point into an investment arena few Australians even know exists. With your permission, I'll send you details on my two latest 'Pocket Change Punts'. These stocks aren't even getting 'passing mentions' in business channels. I reckon the only people reading their quarterly statements are me and the folks at the ASX, who require them as a condition of listing. The biggest headlines these guys have made so far was probably the statutory coverage at the time of their IPOs... and even then I bet it barely made a ripple. That means these stocks carry risks. But then, having read this far, you know that already.
But this kind of action isn't for everyone. That's why I've arranged 1) a no-obligation test run period so you can see if this fits with you and 2) my three most recent and potent picks packaged up in a research report you can keep FREE OF CHARGE, whether you decide to stay on as a subscriber or not. If I hear from you today, here's what my latest research will reveal:
If you have a small bit of capital you're willing to put on the line in the hope of spinning it into $20,000, $35,000, even $100,000 – these are probably your best options on the entire Australian market at this time. These two stocks have the potential to fill your garden shed to bursting with cash, leave your bank manager speechless and your travel agent drawing up plans for that worldwide trip of a lifetime. But they could also tank. I'm not a magician, I don't claim to hold some infallible trading code and, I don't deal in inside information (that's illegal) and, truthfully, I'm never certain about ANY of my stock picks. But then – neither are the owners of the businesses themselves! If you're a plucky little $14 million miner with a tenement in some godforsaken place in the desert, you don't know if there's gold there at all, let alone whether the ore grade will be high. You might hit pay-dirt, only for the gold price to fall through the floor! It's all about risk. In a lot of ways, the heads of these companies are like the folks who invest in them – taking chances, operating on the fringe, putting their behinds on the line for a once-ina- lifetime payday. All this CEO can do is build a sensible plan, manage his risks, and execute it. In a way, that's what I'm doing for my readers on a daily basis. But don't get me wrong – I may not be infallible, but I'm good at what I do. My track record shows I have a proven knack for spotting companies that I think are likely to do something no one else has done, or do something already being done more cheaply, more efficiently, or more uniquely. If you have the vision to see how things might be and the courage to back it, you SHOULD get paid big. That – philosophically speaking – is what small cap investing is all about. And it's why I love it. My job is to give you the best investment ideas I have... because I'm one of the only people around in a position to find them and tell you about them. My position is unique... and that's why I'd be willing to say there's nothing like it in Australia. And if you don't mind me saying so, nothing better. Don't take my word for it though... Test-run the only service of its kind in Australia for 30 days – NO OBLIGATION WHATSOEVER Let's be clear on the opportunity here: This is a chance for you to compete in a space which is – by necessity – almost completely uncontested by investment firms. The truth is: the actual practice of finding stocks in this whirlwind arena of 1,800 listed companies is VERY HARD! Even if you have a financial background, I wouldn't recommend it. It means meticulous analysis; tireless hours getting to grips with what a business is about; delving deeper and deeper into the industries these stocks inhabit; sizing up management, sometimes in a 15 minutes meeting or even a 5-minute phone call; poring over figures and quickly identifying weak points; above all, gaining a sixth sense for the genuine article. That sounds like a lot... but that's just the half of it!
This is your unique chance to be a private investor who gets to profit from these opportunities WITHOUT having to go through all that. I can confidently say you will not find another completely independent analyst in the country carrying out this kind of analysis. You'd also be hard pressed to find a track record that matches... 3 and a half wins for every loss. Average win: +147%. Average loss: -41%. Average winners and losers: +54%. As John, one of my readers who emailed last month says: "I wish I could say you lot are worth your weight in gold; but it's far too cheap isn't it?" Now, Australian Small Cap Investigator is not a free service, but it's not far off , given the amount of research put into it. In any case, I invite you to take a nosy for yourself for 30 days – no obligation at all. If you're not satisfied, just ask for a refund. You'll have gained access to ALL of my previous share tips, all of our current holdings, plus my three most recent 'Pocket Change Punts' stock discoveries. You can get all that, and if you're still not quite at ease with the whole thing, refund inside 30 days. I honestly don't mind if you do this. I wouldn't want you to feel compelled to stay on if you suspected this might be a little too risky, or if the stocks I find don't interest you. That said... What will you pay if you decide to stick around? If you like what you see – and I think you will – don't do anything. I'll keep sending you new issues of Australian Small Cap Investigator with at least one brand new share tip in each monthly issue. I'll tell you what the risks and rewards are, when to get in, and what I think is a realistic target price. PLUS, I'll tell you what action to take on your existing shares, whether to buy more, sell or hold your position for the time being. I'll also send you a weekly email update every week where I pass on time-sensitive tips, developments or changes to your holdings, plus any 'wine bar whispers' I hear that might affect your share tips.
Since we began publishing, the price for a year's membership of the Australian Small Cap Investigator service has been a very reasonable $199. I know some fund managers who charge that PER HOUR for consultancy. My share tip advisory service works out at about 55 cents A DAY! Not only that – I tell you about shares you won't hear about from your broker... I explain to you in plain English why each stock is a worthwhile opportunity...and – here's the crucial part – I tell you when the best time is to SELL and take your profit. Listen, I'm not going to beat around the bush here. Dollar for dollar, This is the best small cap research in Australia But you know what? $199 per year is the full official fee. Sign up today and you won't pay that. My publishers have kindly allowed me to offer you an introductory price of just $89 – on the proviso that the price will revert back to the discounted rate of $179 should you decide to continue into a second year of membership. That's UNDER HALF PRICE. In fact you can pay that much simply leaving your car too long in a parking spot in the city! Click here now and everything you've read about in this letter is yours for less than 25 cents a day So – what do you reckon? If you're going to pass on this, I want you to be very clear on the advantage you're giving up. One last time, we'll return to Warren Buffett, the Sage of Omaha: "The best decade was the 1950s; I was earning 50%-plus returns with small amounts of capital. I know more about business and investing today, but my returns have continued to decline since the '50s. Money gets to be an anchor on performance. At Berkshire's size, there would be no more than 200 common stocks in the world that we could invest in if we were running a mutual fund or some other kind of investment business."Buffett's success means he's stuck in a box. He has so much money that he can't even think about touching 98% of stocks trading on the market. This is DESPITE the fact he KNOWS he could generate 50% from them! YOU aren't weighed down by the "money anchor". YOU can invest in the stocks Buffett only dreams about. And I can help you, if you'll let me. You've seen my track record. You've seen what we achieved last time the market was flooded with bailout money. You know you're not going to get anywhere near those results in a managed fund. If you're not convinced now, then stock investing probably isn't for you. Best regards, Kris Sayce ![]() Australian Small Cap Investigator PS: 3 more things I'll send you if you reply now FREE GIFT 1: Free book: "How to Buy and Sell Shares for Profit". If you've never bought a share before, you'll love this step-by-step guide. It answers the most common questions beginners have about buying and selling shares. You'll learn how to place orders with your broker... which type of brokerage is right for you... the importance of using limit orders... how much to invest... three ways to reduce tax on your profits, and much more. Even experienced traders will find something of interest in this valuable resource!Reminder: these gifts are YOURS TO KEEP FOR FREE, whether you decide to continue your subscription after 30 days or not. PS#2: Your subscription is 100% REFUNDABLE for 30 days. That gives you complete freedom to test the power of my tips before you commit any money. If, at any time during your risk-free trial you're unimpressed – just cancel. You get to keep your all of your free gifts with my compliments! Don't put this off! Click here and start your trial subscription now! PS#3: In case you're interested, here are some more kind words from my readers:
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