Archive for May, 2013

This is fantastic news for Americans who value freedom and healthy food

From LewRockwell.com:
 
Make no mistake, Vernon Hershberger won a huge victory in today’s early morning hours in Baraboo, WI. "It’s a beautiful day," Hershberger told me this morning, after a few hours of sleep following the 1 a.m. jury decision that acquitted him of three of four criminal misdemeanor charges. Yes, it was a beautiful day, for farming and for food rights.
 
The State threw everything it had at this humble father of ten children, and when it was over, its guys in the dark suits scampered out of the courtroom in the darkness of the night after a jury of 12 ordinary Americans handed them their heads on a platter.
 
After less than four hours of consideration, those Americans told the hot-shot lawyers that their thousands of pages of legal documents and computer forensic experts and five days of arguing had failed miserably to convince a single one of them that Hershberger should be required to have any of three retail and dairy licenses insisted upon by the State.
 
Hershberger has already heard through the grapevine that the jurors didn’t give a moment’s thought to going with the state’s charges. "They tried their best to set me free," he said.
 
The jurors convicted Hershberger only of something he publicly admitted to before and during the trial – that he had cut the regulators’ tape placed on his coolers and food shelves June 2, 2010 so as to keep his food from rotting and to feed his 200 food club members – in other words, violated a holding order.
 
I’ll return to the holding order matter. The State’s prosecutors rushed out of the courtroom because they knew they had lost on the stuff that mattered the most – their effort to equate Hershberger’s Grazin’ Acres member-only food club with a Sam’s Club or Costco box store membership operation.
 
In making their crazy argument, they were trying to press a much larger point: that there is no such thing as privately-available food, that we are all under the thumb of "The Man" and his clipboards and forms and orders…
 
Read full article…
 
More on food freedom:
 
Residents of these states should contact their Senators immediately
 
MUST-READ: Sen. Rand Paul is trying to stop the government’s out-of-control attacks on family farms
 
Not just California: Another state is launching an all-out attack on small family farms

Friday, May 31st, 2013 Invest, News, Wealth Comments Off on This is fantastic news for Americans who value freedom and healthy food

Doc Eifrig: A super-simple way to lower your risk of many cancers

From Dr. David Eifrig in Retirement Millionaire:
 
Drink green tea three times a week to lower your risk of digestive cancers. The American Journal of Clinical Nutrition recently published a study that found women who drank three cups of green tea a week were 14% less likely to suffer from stomach, colon, and throat cancers. Women who kept this routine for 20 years saw a 20% drop.
 
The anticancer properties likely come from the antioxidant epigallocatechin 3-gallate (EGCG). Green tea also lowers your risk of prostate cancer, lung cancer, and pancreatic cancer.
 
Crux note: Doc is one of our most trusted resources for "no-nonsense" advice on health and investing… so when we heard he had been accused of fraud, we were stunned. To get the full story about these allegations, and what they could mean for you and your money, click here.
 
More from Doc Eifrig:
 
Doc Eifrig: This common cancer screen could be useless for some men
 
Doc Eifrig: What my favorite indicator is saying about the economy now
 
Doc Eifrig: Two spices every aging man should add to his diet immediately

Friday, May 31st, 2013 Invest, News, Wealth Comments Off on Doc Eifrig: A super-simple way to lower your risk of many cancers

Why resource master Rick Rule is buying gold stocks now

From an interview with Jeff Clark, Senior Precious Metals Analyst, Casey Research:
 
Jeff Clark: First, Rick, what’s your basic explanation as to why gold crashed a few weeks ago?

 
Rick Rule: I think there are two parts to the answer, maybe three. First, the gold market was technically weak. The second thing is that there were a lot of institutional players long gold on leverage, using capital that was borrowed rather than their own, so when the price crashed they had to unwind very rapidly.
 
The fact that there was a very large futures player who attempted to come out of the market all at once during a period in time when the market was extremely illiquid is, of course, also very suspect. I know that most Internet articles are focused on the one large 400-tonne sale at a very odd point in time, and I would certainly agree with the suspicion that if I were a holder of that size and I was looking to sell or had to sell, I probably wouldn’t have chosen to do it all at once or in a very illiquid time in the market.
 
I think that one of the things you have to look at in the gold market is that we are changing the nature of ownership, from…
 
 
More from Rick Rule:
 
 
 

Friday, May 31st, 2013 Invest, News, Wealth Comments Off on Why resource master Rick Rule is buying gold stocks now

Twelve "disruptive technologies" that could change the world as we know it

From Carpe Diem:
 
… "Disruptive technologies: Advances that will transform life, business, and the global economy" is a new report from the McKinsey Global Institute that cuts through the noise and identifies 12 technologies that could drive truly massive economic transformations and disruptions in the coming years.
 
The report also looks at exactly how these technologies could change our world, as well as their benefits and challenges, and offers guidelines to help leaders from businesses and other institutions respond.
 
We estimate that, together, applications of the 12 technologies discussed in the report could have a potential economic impact between $14 trillion and $33 trillion a year in 2025. This estimate is…
 
Read full article…
 
More on technology:
 
New technology could make this science-fiction "fantasy" a reality
 
Update: A big list of tiny biotech stocks with "explosive" potential catalysts
 
The world’s first 100% 3D-printed firearm is now a reality

Friday, May 31st, 2013 Invest, News, Wealth Comments Off on Twelve "disruptive technologies" that could change the world as we know it

Beware the "fine print": What car dealers won’t tell you about buying a new car

From Eric Peters Autos:
 
Offers on TV (and radio and in print) showcase the big numbers and best deals in very large type – with any stuff that might not be so appealing scrunched down into micro-sized print at the every bottom of the page. Or read-through at warp speed by an announcer who might as well be speaking Klingonese, as far as your ability to follow what he’s saying.
 
Here are some things to be on the lookout for:
 
* "Offer only available in FL, GA, SC…"
 
Many incentives are regional – meaning, if you don’t live in one of the areas where the deal is good, the deal is not available to you. The same car might cost $1,500 less (or more) just by crossing the state line. This caveat is almost always read super-fast and sotto voce.
 
* "All estimates are computed on the basis of a 10 percent down payment…"
 
Some financing deals are contingent on things like the buyer coming up with a predetermined cash down payment.
 
In other words, you might have to come up with "x" dollars in cash at the time of sale in order to take advantage of the advertised low-rate financing. If you don’t have the cash down payment, they may stick you with a higher finance rate – which will balloon your monthly payments.
 
Same basic deal with lease offers. Many require a pretty substantial "acquisition fee" at time of lease inception in order to take advantage of the advertised monthly lease payment.
 
* "Offer not compatible with…
 
Read full article…
 
More on autos:
 
Five lesser-known ways to save big money on driving
 
Four reasons you should think twice about buying that new car
 
Must-read report reveals the "dirty little secret" of electric cars

Friday, May 31st, 2013 Invest, News, Wealth Comments Off on Beware the "fine print": What car dealers won’t tell you about buying a new car

New free app solves one of the biggest complaints about Apple’s iPhone

From Washington’s Blog:
 
As an iPhone power user, I’ve been frustrated for years by the inability to have my emails spoken out loud… in the same way that Siri can read text messages out loud.
 
 A new, free app fixes that.
 
Specifically, Talkler allows me to read all of my emails out loud while I’m driving, to delete emails I don’t want, and even to reply with verbal recordings to the email senders.
 
Here’s a screenshot showing what the basic Talkler interface looks like when you’re reading an email…
 
Read full article…
 
More Cruxallaneous:
 
Porter Stansberry: This is the most valuable secret in the investment world
 
Five ways you could be throwing money away… and not even realize it
 
There has been a huge shift in the precious-metals market

Friday, May 31st, 2013 Invest, News, Wealth Comments Off on New free app solves one of the biggest complaints about Apple’s iPhone

European Central Bank warns: "Calm before storm" could be ending

From Zero Hedge:
 
The European Central Bank warned yesterday that six quarters of recession are eroding the resilience of banks and risk ending what it describes as "the calmest period in financial markets since 2011."
 
As Bloomberg’s Niraj Shah notes, the Bloomberg Euro-area Financial Conditions Index has averaged 0.31 this year, compared with -1.47 in 2012, and the measure has only ended in negative territory on three days this year. However, it has very recently fallen to its lowest in a month, as financial CDS begin to rise to once again wider on the year.
 
As The ECB adds, "Financial stability conditions in the euro area remain fragile. Several vulnerabilities in the interaction between sovereigns, banks and the macroeconomy persist."
 
Via The ECB:
  

The ECB Review highlights four key risks to euro area financial stability…

 

 
More on Europe:
 
 
 

Friday, May 31st, 2013 Invest, News, Wealth Comments Off on European Central Bank warns: "Calm before storm" could be ending

Singing the Song of Sonora: Kootenay Silver’s Promontorio Receives Agnico-Eagle Stamp of Approval and Adds Gold to the Mix

May 30, 2013 (Investorideas.com Mining stocks newswire) As the company rapidly approaches the 100 million ounce silver equivalent target on its flagship Promontorio project, Kootenay Silver (KTN – TSX.V) recently received a $4.75 million vote of confidence from a well-known mining heavyweight, and boosted its resource through an injection of an additional 506,000 ounces of gold.

Friday, May 31st, 2013 News Comments Off on Singing the Song of Sonora: Kootenay Silver’s Promontorio Receives Agnico-Eagle Stamp of Approval and Adds Gold to the Mix

Time to Buy Junior Potash Mining Stocks?

Watch potash, which is one commodity that is completely off the radar of investors in the West, but are desperately sought after by consumers in the East.  Potash was hit hard by the global credit crisis and has been basing for a few years.  This reflation by boosting liquidity into the system to stabilize the credit markets by Central Banks could boost potash prices which have been depressed.

Potash is a fertilizer that is critical for emerging economies with rising populations that need increasing amounts of food.  Most of the supply is controlled by a handful of companies such as Potash Corp. of Saskatchewan (POT) and Mosaic (MOS).  These companies control pricing and some of the large consumers may want to secure more affordable long term supplies.  If demand increases, the majors may not be able to boost mine output.  The large caps may be ready to break out as prices find support at decade long trendlines.

New potash deposits may be needed.  According to the charts the large fertilizer companies appear to be in an uptrend potentially ready to breakout.  This may boost the undervalued junior developers.

Why is wheat soaring and the fertilizer stocks outperforming other commodities?  Demand for higher quality food is growing rapidly in Brazil, India and China.  India spends more on fertilizer every year than it does on national security.

Investors looking to profit on rising inflation, increasing demand for high quality food and decreasing arable land should look for exposure to potash.

Conservative investors should add shares of large producers Potash Corp and Mosaic, which are both bouncing off long term support and are in uptrends.  Rising prices of the majors will boost demand for junior developers that will be able to compete against them.

Speculators looking for greater leverage should study Passport Potash (PPI.V or PPRTF).  The share price is extremely undervalued and could move up ten-fold, if we see anything similar to the 2010 or 2007 potash rally.  That is if it isn’t bought out by Indian or Chinese consumers beforehand.

Passport just announced the acquisition of strategic new land in the Holbrook Basin in Arizona.  Passport Potash President and CEO, Joshua Bleak, commented: “We are very pleased with the action of the ASLD, and the speed with which Commissioner Vanessa Hickman made a decision to free up these lands for potential potash development. It is a testament to the strength of the Commissioner and her team, particularly in the minerals section, that they recognized the significant value these lands would provide to the State Trust for decades to come, which we believe is evidenced by the speed with which a decision was made. The Department has always indicated that they are supportive of potash development in the Holbrook Basin, and this action evidences that support.”

In March 2013, the company announced a Preliminary Economic Assessment which showed a NPV of over $2 billion.  This is remarkable considering the fact that Passport Potash has a market cap of less than $35 million.  The company is trading at a ridiculously low level of less than 2% of NAV.

Despite this impressive PEA, which I believed would be a major catalyst, the share price has corrected.  This may have been caused by the overall weak market which is forcing investors to sell their liquid positions like Passport on good news to cover their losses in illiquid situations.

This provides what I  believe to be even a greater buying opportunity.  With this PEA, Passport Potash can meet with end users and show them that this project is economic.  Not only is it potentially profitable but it can be lower cost that some of the other projects at a similar stage.

Do not forget it is in Arizona, an extremely mining friendly jurisdiction with infrastructure.  With the markets forecasting a global recovery and rebound, an undervalued, high quality potash play could provide great leverage.

Do not be surprised to see strategic partners such as the Chinese or the Indians to come on board.   It should be noted the project is located near rail lines and has two major highways that intersect the property.  Because it is a shallow deposit its production costs could be significantly lower than its peers.

Passport is currently working on a Prefeasibility Study and methods to even improve the already impressive economics.  As the majors breakout, look for some of the junior developers like Passport to possibly reverse higher and provide great leverage to rising potash demand.

Listen to my recent interview with Passport Potash CEO Josh Bleak where we discuss the junior potash sector and how Passport’s recent PEA shows some strategic advantages by clicking here or on the video player below.

Disclosure: Author is long Passport Potash and the company is a sponsor on my website.

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Friday, May 31st, 2013 Invest, News, Trade Comments Off on Time to Buy Junior Potash Mining Stocks?

Porter Stansberry: This is the most valuable secret in the investment world

From Porter Stansberry in The S&A Digest:
 
What if there was a secret way of looking at the stock market and individual companies that allowed you to see the real value of everything – regardless of the current price? 
 
If there was such a method, you could invest your hard-earned capital with much more confidence, knowing you were getting a real bargain. You would never have to worry about using a stop-loss because you’d never, ever lose a penny investing again. All you’d really have to do is look around once in a while and pick up the most obvious bargains.
 
If you had this kind of ability, you’d not only become a more successful investor, you’d become a vastly more patient investor. You’d have real certainty about your choices. You’d know, every single time you bought something that, sooner or later, it would end up becoming massively profitable.
 
The good news is… There is such a method. There is a real, bona fide, proven, and easy-to-learn method of developing this kind of worldview, this kind of wisdom.
 
Learning this technique doesn’t merely give you an advantage in the markets, either. It gives you a whole new way of looking at the world. You might call it a "value" lens. It’s a school of thought… a way of life… a philosophy, if you will. Those who practice it have a few simple things in common. These traits set them apart from other investors even more so than their analytical skills. In short, they see the world in a slightly different way than the rest of us do. It gives them immense power.
 
Recently, William Thorndike, founder of the private-equity firm Housatonic Partners, wrote a guidebook to this secret world. The book is called The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success.
 
Before I get into the details of this secret way of looking at the world, I’d like to start with a simple example. I’d like to show you three pictures. These are three "snapshots" of a company over the past 15 years. You could derive a few key facts from these charts. What do they tell you? 
 
Most investors have no idea about the real underlying value of individual securities or how to estimate it. And because they know nothing about measuring value, they cannot make wise choices. They’re left to gamble. To most investors then, a high-quality business looks exactly like a low-quality business. To most investors, every stock looks something like this one: 
 
 
 
The chart above shows the nominal price over the last 15 years of a widely traded equity. Some people looking at this chart will say the stock looks good to buy because it made a "base" and is now trending higher.
 
And most investors – I’d wager around 90% of active individual investors – only think in terms of nominal prices. They say, "I bought a cheap stock – only $2 per share. If it goes to $4, I’ll double my money. If it goes to $1, I’ll sell. But I’ll only lose half my money. With even odds, over time I will win." 
 
Some people may point out that our stop-loss advice underscores this focus on nominal prices. That’s right. It does.
 
We know that many of our readers will never move beyond their focus on nominal share prices. So giving a clear, conservative exit strategy is crucial for improving their results and protecting them.
 
But one day, I hope they will "see" the market the way I do… the way they should. Like this…
 
What the top line in the chart above shows you is the book value per share of the same company whose share price chart was above. What’s important is that over the same 15-year period, the book value increased year after year at a substantial rate. Whether the share price went up or down, the actual business grew more valuable every year and continued to produce additional value. That’s one of the most important signs of a good business (along with wide profit margins and low capital requirements).
 
Take a second look at the chart above… The lower line shows us the real price. It shows us how much cash per share the company generated each year. This is how great investors see the situation.
 
This is what Thorndike wrote his book about… people who see the world in a totally different way. When they look at a company, they ignore share price. Instead, they see values and cash generation. Most of the people in Thorndike’s book refused to pay more than eight or 10 times this figure… for any business… ever.
 
Think about that for a minute. The last time you bought a stock, how much thinking did you give to its price in terms of cash generation? My bet is close to none.
 
Wall Street prefers to talk about "earnings." Earnings are an accounting fiction. They’re derived by taking the income statement and then applying a whole series of tests and guesses. Earnings are easily manipulated by managers, using both legal and illegal means.
 
The world’s best investors ignore both earnings and the timing of earnings. All they care about is the amount of cash a company generates over time.
 
Simple question… Given what you’ve seen, should you buy this stock? What price would you pay? Here’s one more critical clue. The next chart shows you the company’s cash profit margins over the last 15 years. You’ll notice: They’re almost completely unchanged throughout the entire period, which includes the worst recession America has faced since the 1930s.
 
 
These data tell you we’re looking at a high-quality business. It has built value at a significant pace. It has steady, cash profit margins.
 
We started recommending these shares in 2006. A lot of folks said we were nuts at the time. Couldn’t we see that the share price was in a downtrend? They didn’t get it. They couldn’t see the value that was plainly visible to us.
 
The company we’ve been looking at is Wal-Mart (WMT) – the World Dominating retailer.
 
Wal-Mart was my company’s No. 1 investing idea in 2006, 2007, and for most of 2008 – when it went up as the rest of the market went down. It survived the 2008-2009 crisis with nary a hiccup. It has produced outstanding returns since. We most recently urged subscribers to buy the stock when a minor scandal erupted over its operations in Mexico. Since Dan Ferris first recommended it in October 2006, Extreme Value subscribers who followed his advice have earned more than 10% annualized profits in this position – with nearly zero volatility.
 
Most people couldn’t recognize the value in Wal-Mart because they didn’t understand the numbers. They only understood their own emotions. They saw it as merely a discount retailer with a lot of bad press (largely because of its stand against unions). They wouldn’t shop there. They wouldn’t buy the stock. Case closed.
 
The men and woman in Thorndike’s book are the most successful CEOs in the history of modern capitalism. They include Tom Murphy (Capital Cities), Henry Singleton (Teledyne), Bill Anders (General Dynamics), John Malone (TCI), and Dick Smith (General Cinema).
 
These guys make the CEOs who are routinely celebrated in the media (like GE’s Jack Welch) look like wannabes and posers. Thorndike’s CEOs all made 20%-30% a year for investors… for decades. That kind of performance made everyone who invested with them – even folks who put in as little as $10,000 – extremely rich.
 
And they all did it the same way. They all managed their companies (and their lives) in a very similar fashion. They all looked at investing in the same way… the way I’ve outlined here… and the way I write about it constantly in my newsletter.
 
Why should that matter to you? All of these CEOs followed the same pattern. They spent their time allocating capital – investing. They delegated the operational responsibilities to junior executives. They spent all of their time deciding whether to invest in their existing businesses, whether to buy back their own shares, or whether to buy other businesses.
 
Like you, they were investors, not just CEOs. They made these key investment decisions – and all of the other decisions in their lives – by the same standards of value. They quantified everything.
 
If you learn to do the same with your investing, you will become vastly more successful. I’d urge you to read Thorndike’s book… or at least to ask yourself these three questions before you buy another stock: 
 
Is this a great business? Does it have the ability to grow its sales and to maintain its profit margins? Is the management team dedicated to rational decision making and rewarding shareholders?  
 
Am I paying a reasonable price for these shares? Are the shares trading around book value or at less than 10 times cash earnings?  
 
If the stock were to fall by 50%, would I be confident enough to buy more?  
 
All of the CEOs Thorndike wrote about ended up making a few large and crucial investment decisions. They bought other companies (or their own stock) at a size that made up 25%-40% of their company’s enterprise value. That would be like you putting 40% of your net worth into a single stock. The only way you will ever have the confidence and the knowledge to make that big of an investment safely is by learning to look at the real numbers – not just the share price.
 
I firmly believe that to be extremely successful as an investor, sooner or later you have to make the big, the very big, investment. Great ideas and great opportunities just don’t come along that often in your sphere of competence. When you see a great opportunity that you fully understand… be prepared to swing for the fences. But make sure… make absolutely sure… you’ve done all of your homework. That starts with only buying great businesses and understanding what they’re really worth.
 
Oh… one more point about these world-beating CEOs. You’ve probably never heard of any of them before. Part of their way of life was to avoid Wall Street and the media. They figured out that the closer they got to the Wall Street circus, the more cloudy their thinking would become.
 
They didn’t want to be influenced by anything but their own rational thinking. So they established their offices and went about their lives as far away as possible from Wall Street and the mainstream business press.
 
That’s why, if you’re looking for a great investment, I’d recommend staying away from feel-good front-page stories. The press tends to all think with the herd… which is the opposite of what you ought to do as an investor. (Of course, negative stories are often great buy signals, since the press always exaggerates the consequences of bad news… like Wal-Mart’s Mexico problem.)
 
Crux note: Porter recently broke a story that no one else is talking about… but if you own gold, it’s one you need to hear immediately. After years of exhaustive research, he believes one type of gold investment could soon be worth hundreds of times more than others. To get the details for yourself, click here.
 
More from Porter Stansberry:
 
 
 

Thursday, May 30th, 2013 Invest, News, Wealth Comments Off on Porter Stansberry: This is the most valuable secret in the investment world

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