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Important news for investors looking to 'Pebble Stocks' That Could Each Return 30% to 118% Gains Even while many investors flee to cash! Dear Reader, You're witnessing market history in the making right now. And boy, it's ugly watching! The massive multi-government bail-outs, it appears, have failed to stop the mass selling. It looks like we're hurtling towards a deep global recession. Many people think you'd be crazy to buy stocks now. For the most part, they're right. It could take a lot longer before this mess is cleaned up and it's business-as-usual for stock investors. But here's the thing... There is ONE SPECIAL TYPE OF AUSTRALIAN STOCK we believe could soar in the weeks ahead - even as most of the 'smart money' sits in cash and bonds. Over the next 7 minutes, I'm going to introduce you to a special breed of Australian stocks that's perfectly poised to thrive in the next two months. And the massive, super-quick share price-hikes you can expect are not just happening despite the meltdown in the financial markets... they're happening because of it. I call them 'Pebble Stocks', for reasons that will be clear shortly. In the warzone that has been the financial markets of late, they have given investors gains of 30% to 118% in weeks... sometimes hours. As things go from bad to worse for the global economy, even more 'Pebble Stock' gains will be made by savvy investors. You can learn more about one 'Pebble Stock' pick we believe has to potential to explode 30% minimum in the weeks to come - plus two more that are on our radar in just a second. First, I'll quickly give you the background... China-Driven 'Pebble Have you heard about Abra Mining? Or Golden West Resources? How about Herald Resources? Most people haven't. These are all tiny Aussie miners. And they're examples of the new breed we call 'Pebble Stocks'. Why? All three have been targeted by Chinese companies in the last year. And here's the 'money-point'... On average, each of the three 'Pebbles' above gained 63% in the week following their offers. Abra was the most exciting. It exploded for 118% in three days. The others were no less impressive. Golden West slammed on 29% literally overnight. Not bad returns in the midst of a downturn, right? Well get ready, because the next three months could see an avalanche of pebble winners just like these. Let me explain why... The key factor setting these extraordinary pebble profits in motion is almost always a foreign takeover. You probably already know Asian companies need Australia's raw materials. Rocks and energy, basically. But the thing is these cashed-up giants can't just buy the big miners like BHP or Rio Tinto. The Foreign Investment Review Board (FIRB) wouldn't let them. So instead of going after the 'boulders' of the resource industry, China is collecting lots and lots of 'pebbles'. It's acquiring small, quality resource juniors that are trading at much lower prices than this time last year. By collecting lots of pebbles China gets the same amount of rock in the end. It's easier work though. The pebbles take less lifting than boulders - there's less capital involved. No regulators complain either. So long as China doesn't try to snatch anything too substantial. And there has NEVER been a better time for 'pebble-snatching' than right now... Plunging Aussie Dollar The big story is the 'stock-holocaust' taking place in almost every index in the world. But markets have subplots. If you're shrewd enough to read them - when everyone else is looking the other way - you can make a lot of money. The subplot of the 'Pebble Stock' story is the plunging Aussie dollar. The Australian dollar has tumbled over 32% from its high. It's a steep drop. Here's the thing... To any foreign invader, the formerly strong Australian dollar has been one of the biggest barriers. It was the high price blocking buyers who wanted in on the Aussie resource boom. Not anymore... The Aussie dollar's recent plunge stands out in history as one of the most violent ever. "We have seen the largest daily drops in the Aussie since the currency was floated in the early 1980s," Josh Williamson, senior strategist at TD Securities in Sydney, told AFP. In other words... The greatest barrier to mining takeovers from non-Australian companies has fallen. The real price of Australian companies has tumbled. This may well unblock the dam of eager investors looking for a way into small, quality Australian resource assets. And it's not just China looking for pebbles... International diversified miners are also on the prowl. Firms like Vale and BHP have accumulated massive reserves of un-invested cash. The last two years have been especially profitable in mining. The spare cash those firms have on hand has nearly doubled since 2006. That's a lot of cash to spend.
The life-blood of a resource firm is its reserves of raw material in the ground. To stay profitable, those bigger diggers have to keep growing reserves. Grabbing pebbles is an easy way to add cheap reserves to their portfolios. And if YOU can own these 'Pebbles' before they do, it's a great way to boost YOUR OWN portfolio! Bargaining conditions have now turned in China's favour. And YOURS too... if you can identify which companies are about to get snapped up. Two Chinese companies took a 40% stake in Mt Gibson Iron late last year. Its shares have since soared from 19 cents to 42 cents... a 106% gain. Sinosteel's bid for iron miner Midwest this year sent shares 31% higher. And a stake from Russian steel-maker Evraz sent Cape Lambert Iron 29% higher in a few days. You're witnessing the beginning of a long-term foreign invasion of capital into the Australian market. And the current market turmoil means that pebble-hunters have more incentive than usual to go hunting right here in Australia. I'll show you why... and introduce you to one stock I believe is the hottest target... in just a second. If you prefer to keep a cool head while the wider market scares itself witless... And if you're aware market upheaval often throws up the once-in-a-lifetime investment opportunities... Then you'll want to add this stock to your portfolio immediately. First, I better introduce myself... My name is Daniel Denning. For ten years I've been writing about global investment markets from Baltimore, London, Paris, and since 2005 - here in Australia at my publishing company's office in Melbourne. I first came to Australia in 2003 when the bull market in commodities was in its early days. Meeting gold miners and property developers in Perth, I knew something special was about to happen. And boy was it special. But now, the entire resource landscape has changed. There's a global recession. Resource companies face tough times. And share prices are down as much as 70% from their all time highs. But you know what? For reasons I'll explain to you in this letter, the fall-out from the Credit Crunch is creating an extremely unusual situation in the Aussie resource market. It's making some of Australia's world-class ore bodies incredibly cheap. There is a long list of "bigger fish" stalking these projects - from other mining companies in Australia to state-backed firms from China, Japan, Korea, Russia and the Middle East. The goal of Diggers and Drillers - now in its fourth year of in-depth coverage of Aussie resource shares - is to track this story as it develops in 2009. As Managing Editor of Diggers and Drillers, I draw on the contacts I've built up in the Aussie mining and energy sectors to bring you the best, most exciting, and often unreported stories that could profit resource investors. But look, if you already hold positions in energy and commodities, chances are you've seen them slide recently. We still believe, due to basic supply and demand factors, that a recovery in these sectors is more than likely. I'm also convinced that many good resource companies - sitting on great projects - have had their stock prices unfairly dragged down by the financial crisis. That means you can pick up some stellar bargains, if you're forward-thinking and picky. Of course, finding the right stocks to back is hard. That's why you have to do your homework. You have to read financial statements, call the company directors, and understand the mining business from top to bottom. Frankly, though, most investors don't have time for this. But I do. In fact, it's all I do. And it gives my readers a huge advantage when it comes to locating the next wave of winners in the Aussie resource market... Uncovering Resource Plays the Sure, the big banks and brokers may have never heard of some of my share tips... But if you're willing to do the hard work... and analyse stocks that are often too small to show up on the radar of big money managers... you can unveil some great gems... like the three 'Pebble Stock' beauties I'll tell you more about in a second. I can't promise you we always get it right with our share tips and market calls. But I can promise you this... you will not find a resource share-tipping publication in Australia that is more thoroughly researched. Our work is not compromised by any conflicts of interest or other agendas. We publish our best investment ideas and we don't get paid a cent by any company to promote it. And there's never been a better time for you to get hold of this kind of investment intelligence. Why? Take a look at the map below.
It shows the vast amount of money invested in resource projects all across Australia. Think of them as dozens of scattered pebbles. Australia - and the small resource stocks based here - plays a key role in the third great Industrial Revolution in human history... the emergence of India and China's 2.3 billion people in the global market place. The mining insiders know this. As Rio Tinto's Sam Walsh told an Australian newspaper: "The word 'boom' is a misnomer... I don't know what the right word is - maybe it's a paradigm shift. This growth is going to be around for awhile." Boom or not - this is a trend worth being on the right side of. Even more so now that, due to the 'credit crunch', genuine profit opportunities are so thin-on-the-ground elsewhere. That's why I've dedicated myself to researching out the very best ways that Australian investors can profit from the gigantic resources boom right on your doorstep. In fact, I've put together a report to show you now. It's called 'Pebble Stocks' That Could Give You Gains Amid Market Panic. It outlines one prime takeover target with the potential to do what almost no other identifiable class of stocks on the ASX can do: jump 30% or 118% in a matter of hours over the next two turbulent months. This stock is an URGENT buy right now. You'll also hear about two more great 'Pebbles' which I'm tracking closely. As you'll see in a moment, I'd like to rush you this report, FREE OF CHARGE. But it's vital that you get your hands on it immediately... Aussie 'Pebbles' Trading Big miners have lost billions in market cap over recent months. In percentage terms, the smaller miners have lost more. There are now a lot of cheap metal reserves out there in the form of pebble companies. The Australian dollar has lost 32% against the greenback since mid-July '08. So have Australian assets on a global scale. Take a look at the chart below...
Listen... If you've looked at your favourite Aussie mining share and thought 'that looks cheap' at any stage in the last few weeks, consider the big miners and foreign invaders. To them the same stocks are 32% cheaper again! We don't think this currency devaluation will become a lasting trend. Australia's currency is backed by natural resources. It has stronger long-term economic fundamentals than the US dollar. When commodity popularity returns, it's likely the Aussie's fortunes will turn around. That might what causes invaders to act sooner rather than later. Right now, pebble-grabbers have an opportunity to get into the market. And I've uncovered one cheap, gleaming 'Pebble' that I believe is already catching the eye of invaders... A Potential 30% Overnight Gain from the One Pebble That Trumps Them All This pebble has everything. If it doesn't get some serious bites taken out of it while the market is down, I'll be astounded. It currently has a reserve of 1.7 million tonnes of base metals. Of that 1.7 million tonnes, 11% is zinc, 3% is copper, and 0.7% is lead. It also contains 115 grams of silver per tonne. When you add up all that metal in dollars, it comes to a bit over AU$745 million at today's prices. Yet this company is currently trading at a market cap of AU$77 million. It's only AU$0.15 per share. Of course, the whole AU$745 million won't make it to the bottom line. Far less. But at a very modest long-term zinc price of around US$1.00 per pound, the project alone is worth AU$230 million to this 'Pebble'... and to the pebble-hunter that snaps it up. But there's more value in the stock. This pebble also owns a growing base metal resource project in Victoria. It's completing a scoping study that should result in a new JORC-compliant resource in 2009. Considering the deposit's history, it should add significantly to this pebble stock's value. How much could you make from this? It's difficult to value this takeover play without insider knowledge. But if this pebble gets picked up by a hunter in the weeks ahead, based on similar premiums in the pebble sector, we would expect the stock to add a minimum of 30%. Probably more based on previous takeover gains. You can get all my research on this company in your free report, 'Pebble Stocks' That Could Give You Gains Amid Market Panic. I'll show you why I believe each this stock has the potential to receive a firm offer within the next six months... and, most importantly, how much you stand to make. But that's not all. You'll also learn about two more Pebbles that are shaping up to be big winners in the weeks to come, including...
China is officially the largest gold miner in the world as of this year. This Aussie company is one of only a few foreign-listed gold miners operating there. There's one big pebble-hunter already in this stock. Newmont Mining holds just under a 4% stake.
More hunters could be grabbing a piece soon. The major industrial use of tin is in soldering. The tin price has boomed in recent years, as developing nations like China increase their consumption of electronic goods. That means little outfits like this one are now in hot demand. A Chinese partner increased its holdings in this pebble by 18% last June. To a tin investor, this is one of the best stocks in the world. And you can still get in at under 10 cents.
These are two great stocks. But they've not quite ticked all the boxes to make our buy list yet. They could within days, and we're monitoring them closely. You'll get our latest research on both in your free report, 'Pebble Stocks' That Could Give You Gains Amid Market Panic. These kinds of pebble companies have already fallen a long way. Our view is that the fall has exhausted a lot of the downside risk inherent in small-caps. But not all of it. Understand that you shouldn't build a portfolio around pebbles. This is the kind of thing you allocate a small amount of money to. If the stock is a big, short-term gain, it'll add some serious spice to your investing year. If it continues to fall, it'll be a minor loss overall. If you're up for the risk and ready to play the pebble game - even while most investors are freaking out - then here's all you need to do. Let me rush you my freshly typed-out research report, 'Pebble Stocks' That Could Give You Gains Amid Market Panic. With your permission, I'd like to send you this FOR FREE. There is no charge. All I ask in return is that you take out a trial subscription of my newsletter, Diggers and Drillers. Invest in REAL ASSETS as Paper It's a bloodbath on Wall Street. Things aren't great here either. The ASX was trading over 6,800 last November. At the time of writing the Sydney Futures Exchange's December Share Price Index was sitting at 3,596. Chances are your retirement savings have been hit. The Australian stock market has lost billions since last year's highs. Superannuation funds shed over 15% since the subprime crisis hit. That's their worst return since Super became compulsory in 1992. If you'd like 'outside-the-box' analysis of what's really going on... as well as some clever ideas on how to make back losses and even make healthy profits... NOW is the time to make your move. You can start by reading 'Pebble Stocks' That Could Give You Gains Amid Market Panic. Accept this limited invitation today and I'll also rush you the following:
The great thing about the resource shares is that the good ones have intrinsic value... unlike financial operations, as you've seen recently. The global credit squeeze isn't going to melt away. Diggers and Drillers is one of the best tools to help you play it for profits. You don't pay for any of these seven FREE reports. They are yours, on-the house. And there's more... Every week, I'd also like to send you a FREE commodities investment update, straight to your e-mail account. This will bring you hot-off-the-press news... as well as developments relating to your current holdings. Plus other hot opportunities I have percolating on the stove. Why just give all this away? Well, as I said, there's something I want you to do for me in return... Test-Run My Very Best Stock This is for investors who understand the scope of the opportunity to invest in tangible assets when global markets are unsettled. You have this letter before you because I believe you are like me. I believe you know, as I do, that while many stocks and funds aren't worth much more than kindling these days... Raw real resources like copper... platinum... silver... natural gas... steel... oil... coal... and especially gold... hold real and tangible value for civilisation. More importantly though... A whole new cycle of global growth and foreign investment demand is about to catapult some Aussie resources shares much, much higher... and YOU'VE got the chance to get a ground-floor piece of the action! There are going to be some extraordinary possibilities for making money over the next 24 months. And I'd like to make sure you don't miss a single one of them. So here's the deal... Take out a three-month trial subscription of Diggers and Drillers right now. You'll receive our next issues, plus a complete archive of all back-issues. You'll also get every investment report - and the profitable stocks they examine - mentioned in this letter, FREE OF CHARGE. Track my tips for three months. If you don't like what you see... for any reason... contact me for a full, unconditional refund. And you can keep all the reports I send you with my compliments. That's a pretty fair deal, right? With that in mind, what will you pay if you decide to stick around? What is this One-of-a-Kind Investment Intelligence I can tell you now there are few high-profile analysts in Melbourne and Sydney covering these stocks... let alone guys on Wall Street. I certainly don't know many investment newsletters or tipsters - here or abroad - who've devoted the last two years entirely to the Australian resources story. Believe me, I've looked around... and I'm confident in saying that you simply cannot buy what I'm offering you today any where else. If you could get this calibre of research from other publishers (and I don't believe you can) it would cost you anywhere from $700 to $1,500 dollars. But why pay that? But you'll be pleased to hear an annual subscription to Diggers and Drillers will put you back just $134 for the first year. Listen, I can say with complete confidence you won't get this level of investment intelligence for anywhere near this price anywhere else in Australia.
As reader Don L emailed to us recently: "The services you provide - Daily Reckoning (plus Money Morning) together with Diggers & Drillers and Small Caps - provide by far the best means for keeping up with things that I know… I will be continuing my subscription on an annual basis." Frankly, if $134 seems like a hefty sum, these investment opportunities probably aren't your cup of tea. If you want in, then you need to move fast... This Market Crisis Will Pass. But the Australian Resources Market is Here to Stay... The very best profits will go to investors who use their heads... while others are LOSING theirs. I'll send you all the investment intelligence outlined in this report. Read it. Paper trade if you're cautious. Then wait. Pebble stocks are short-term profit plays. But this is a long term story. As you've seen, HUNDREDS of new resources projects already underway from coast to coast. All you need to decide now is whether or not YOU want to profit from it. If you ultimately decide I've missed the mark, you lose nothing and get your money back. While keeping every last bonus or issue we've already sent. I hope that sounds fair to you. More importantly, I hope it sounds like something you'll feel ready to act on right away. The best bargains are to be had NOW. And I'm not so sure I can promise you that in 12 or even six months time. Here's all you need to do... Take out a pen and fill out the No-Obligation Trial Application Form attached to this letter. Place it in the prepaid envelope provided and send it off today. I hope to hear from you soon... Sincerely,
Daniel Denning PS: With its massive natural resource endowments and a distinct geographical advantage over its South American competitors, the Australian resource sector is set to boom as long as China does. Savvy investors will be looking for ways to profit from this. No newsletter on the planet is best positioned to help you do this. Send for your FREE report 'Pebble Stocks' That Could Give You Gains Amid Market Panic now.
Calculating Your Future Returns: It's important to remember that investing in shares can lose you some or all of your investment money. Please seek independent financial advice regarding your particular situation. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. The value of any investment, and the income derived from it, can go down as well as up. All statistics as at 19 January 2009. For any investment, never invest more than you can afford to lose, and keep in mind the ultimate risk is that you can lose whatever you've invested. If in doubt of the suitability of an investment please seek independent financial advice. Diggers and Drillers is published by Port Phillip Publishing Pty Ltd. |