Porter's ultimate bullish bet to profit from government money printing...
As regular readers know, S&A founder Porter Stansberry is an outspoken critic of the government.
That's why, on the day our government shut down for the first time in 17 years, we felt it only appropriate to ask him for his thoughts on the situation...
"I really don't think much about this situation," Porter told me (Sean). "I don't think the shutdown of the government for even a month is a big deal. It's just all theater.
"From a markets perspective, the only significant implication in the short run will be for the defense contractors – Lockheed Martin, for example. You'll probably see some pain in these types of companies due to the uncertainty of the situation."
But Porter says there's a bigger point to be made...
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And Bill Bonner, the founder of Agora Inc. – S&A's parent company – shared his thoughts on the government shutdown in his daily Diary of a Rogue Economist e-letter...
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Shares of Stansberry's Investment Advisory recommendation Chicago Bridge & Iron hit an all-time high today. The move came after the company announced a brand-new partnership in China.
Recall... Porter recommended shares of the construction-and-engineering firm in his June 2012 issue as a way to invest in the boom in domestic energy production...
As Porter wrote in that issue:
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Longtime readers know Porter has focused his research for the past few years on the incredible volume of oil and natural gas the U.S. is extracting from domestic shale-rock formations. And CB&I was a great "picks and shovels" way to profit from the trend.
At the time of Porter's recommendation, the Interstate Natural Gas Association trade association estimated that North American industries need to invest between $6 billion and $10 billion per year to maintain the storage network capable of handling the growth in production. And Porter believed CB&I was perfectly positioned to profit.
The company has thrived from the infrastructure needs from the shale boom... Porter's readers were up 92% after market close yesterday.
As I mentioned earlier, CB&I just announced a joint venture with Chinese power company CPI Power Engineer Co. to build nuclear power plants in China. Shares spiked more than 3% on the news.
Since 2012, China has approved the construction of four new nuclear power plants... It's expected to approve around 30 more by 2020. And CB&I will be along for that ride...
"This new commitment with CPI will reinforce CB&I's leadership position building next-generation nuclear power plants around the world," CB&I CEO Philip Asherman said in a statement. "We are looking forward to continuing our relationship with CPI and contributing to China's long-term nuclear power plans."
CPI Executive Yu Jianfeng said, "CPI regards its strategic cooperation with CB&I on nuclear power plant projects as very important for CPI. This forthcoming joint venture company will further grow our mutually beneficial relationship and deepen our strategic cooperation with CB&I. Most importantly, it will contribute to China's mid- to long-term nuclear power development."
In addition to CB&I, Porter now has 11 bullish energy bets in his Investment Advisory portfolio. Seven of them – including his most recent recommendation – are still within buy range. To access his latest research with a risk-free subscription, click here.
We have another major investor on the Apple bandwagon...
In the September 23 Digest, we told you about Apple's record-breaking iPhone sales... And why the tech giant was a steal at $450 a share.
One reason we liked Apple at those levels – in addition to its dirt-cheap valuation – was that billionaire investor Carl Icahn was buying shares around that price point. We thought other major investors would also buy at those levels.
This morning, Bill Miller, who runs the Legg Mason Opportunity Trust, said Apple is a steal regardless of how it uses its cash. On financial-news channel CNBC this morning, Miller said, "It just makes no sense for Apple to trade where it is: Seven times enterprise value to free cash flow."
He also compared Apple's current valuation to the credit markets... "If Apple was a junk bond, it would trade 40% higher," he said.
New 52-week highs (as of 9/30/13): Chicago Bridge & Iron (CBI), short position in J.C. Penney (JCP), National Fuel Gas (NFG), and Uranium One (UUU.TO).
More positive feedback for Porter's letter from the GM chairman. Send your thoughts to feedback@stansberryresearch.com.
"I am a GM salaried non-union retiree. I think Porter's analysis is excellent. The one point that bothers me is when he says, paraphrasing 'not one retiree lost anything.' That is true for UNION retirees, but certainly not true for non-union retirees.
"Salaried retirees lost benefits and insurance and executive retirees lost a portion of the non-qualified part of their pensions. For some people this was significant, and I don't mean just the top people. This affected middle management retirees who had no impact on the decisions that ran the company into bankruptcy. It leaves a bad taste that the bailout was designed to save the union, but to hell with the salaried retirees, most of whom were not Obama supporters.
"I understand Porter's criticism of the salaried pension fund deal with Prudential as costly and a bad business deal. However as a salaried retiree who lost benefits, I am thankful that I now have a well-financed Prudential annuity and not a GM pension, because I agree with Porter's assessment of the future of GM. My ties to GM now are limited and the loyalty I had built up over 40 years of work is pretty well gone." – Paid-up subscriber Paul Schnobrick
"I loved it. But I'm a long time subscriber. It is so strange to read the letters like the one from Richard Seifert who did not realize that a CEO of a public company would NEVER say the truth like Porter did, and then wants to cancel his subscription. He becomes the title character in Ben Franklin's 'Poor Richard.' Too bad. Learning the truth is a good thing." – Paid-up subscriber John
Regards,
Sean Goldsmith
Miami Beach, Florida
October 1, 2013
As I (Porter) have discussed in Digest Premium, I became more bullish on the markets when the Federal Reserve failed to "taper"...
You can catch up on my views in the September 27 Digest Premium. In summary, as I wrote in that issue...
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So with the Fed committed to inflating markets, the best bullish bet you can make is buying shares of General Electric (GE).
That's a funny thing for me to say, considering I predicted its bankruptcy back in 2009.
But consider this... GE is one of the largest, most leveraged companies in the country... And if the Fed is really intent on printing away all of the government's debt, it's solving General Electric's problems by doing so.
So if you're really bullish – if you think the Fed's actions will work – then GE shares have a long way to go. So far, GE hasn't participated along with the market rally because it's so heavily indebted.
For the record, this isn't a recommendation I'm making in my newsletter. It's simply a one-click way to profit from the Fed's money printing.
And if you see shares of GE move up another 50%-100% over the next year, it's because the Fed is accomplishing its goal: to print away the country's debt problems.
– Porter Stansberry with Sean Goldsmith
Porter's ultimate bullish bet to profit from government money printing...
The Fed will continue its bond purchases... And Porter says the market has more room to run from here.
In today's Digest Premium, he shares his top idea to profit off the government's easy-money policies.
To continue reading, scroll down or click here.
Porter's ultimate bullish bet to profit from government money printing...
The Fed will continue its bond purchases... And Porter says the market has more room to run from here.
In today's Digest Premium, he shares his top idea to profit off the government's easy-money policies.
To subscribe to Digest Premium and access today's analysis risk-free, click here.
Porter's thoughts on the shutdown... Bill Bonner weighs in, too... CB&I hits a new high after announcing nuclear deal with China... Another value investor likes Apple...
As regular readers know, S&A founder Porter Stansberry is an outspoken critic of the government.
That's why, on the day our government shut down for the first time in 17 years, we felt it only appropriate to ask him for his thoughts on the situation...
"I really don't think much about this situation," Porter told me (Sean). "I don't think the shutdown of the government for even a month is a big deal. It's just all theater.
"From a markets perspective, the only significant implication in the short run will be for the defense contractors – Lockheed Martin, for example. You'll probably see some pain in these types of companies due to the uncertainty of the situation."
But Porter says there's a bigger point to be made...
|
And Bill Bonner, the founder of Agora Inc. – S&A's parent company – shared his thoughts on the government shutdown in his daily Diary of a Rogue Economist e-letter...
|
Shares of Stansberry's Investment Advisory recommendation Chicago Bridge & Iron hit an all-time high today. The move came after the company announced a brand-new partnership in China.
Recall... Porter recommended shares of the construction-and-engineering firm in his June 2012 issue as a way to invest in the boom in domestic energy production...
As Porter wrote in that issue:
|
Longtime readers know Porter has focused his research for the past few years on the incredible volume of oil and natural gas the U.S. is extracting from domestic shale-rock formations. And CB&I was a great "picks and shovels" way to profit from the trend.
At the time of Porter's recommendation, the Interstate Natural Gas Association trade association estimated that North American industries need to invest between $6 billion and $10 billion per year to maintain the storage network capable of handling the growth in production. And Porter believed CB&I was perfectly positioned to profit.
The company has thrived from the infrastructure needs from the shale boom... Porter's readers were up 92% after market close yesterday.
As I mentioned earlier, CB&I just announced a joint venture with Chinese power company CPI Power Engineer Co. to build nuclear power plants in China. Shares spiked more than 3% on the news.
Since 2012, China has approved the construction of four new nuclear power plants... It's expected to approve around 30 more by 2020. And CB&I will be along for that ride...
"This new commitment with CPI will reinforce CB&I's leadership position building next-generation nuclear power plants around the world," CB&I CEO Philip Asherman said in a statement. "We are looking forward to continuing our relationship with CPI and contributing to China's long-term nuclear power plans."
CPI Executive Yu Jianfeng said, "CPI regards its strategic cooperation with CB&I on nuclear power plant projects as very important for CPI. This forthcoming joint venture company will further grow our mutually beneficial relationship and deepen our strategic cooperation with CB&I. Most importantly, it will contribute to China's mid- to long-term nuclear power development."
In addition to CB&I, Porter now has 11 bullish energy bets in his Investment Advisory portfolio. Seven of them – including his most recent recommendation – are still within buy range. To access his latest research with a risk-free subscription, click here.
We have another major investor on the Apple bandwagon...
In the September 23 Digest, we told you about Apple's record-breaking iPhone sales... And why the tech giant was a steal at $450 a share.
One reason we liked Apple at those levels – in addition to its dirt-cheap valuation – was that billionaire investor Carl Icahn was buying shares around that price point. We thought other major investors would also buy at those levels.
This morning, Bill Miller, who runs the Legg Mason Opportunity Trust, said Apple is a steal regardless of how it uses its cash. On financial-news channel CNBC this morning, Miller said, "It just makes no sense for Apple to trade where it is: Seven times enterprise value to free cash flow."
He also compared Apple's current valuation to the credit markets... "If Apple was a junk bond, it would trade 40% higher," he said.
New 52-week highs (as of 9/30/13): Chicago Bridge & Iron (CBI), short position in J.C. Penney (JCP), National Fuel Gas (NFG), and Uranium One (UUU.TO).
More positive feedback for Porter's letter from the GM chairman. Send your thoughts to feedback@stansberryresearch.com.
"I am a GM salaried non-union retiree. I think Porter's analysis is excellent. The one point that bothers me is when he says, paraphrasing 'not one retiree lost anything.' That is true for UNION retirees, but certainly not true for non-union retirees.
"Salaried retirees lost benefits and insurance and executive retirees lost a portion of the non-qualified part of their pensions. For some people this was significant, and I don't mean just the top people. This affected middle management retirees who had no impact on the decisions that ran the company into bankruptcy. It leaves a bad taste that the bailout was designed to save the union, but to hell with the salaried retirees, most of whom were not Obama supporters.
"I understand Porter's criticism of the salaried pension fund deal with Prudential as costly and a bad business deal. However as a salaried retiree who lost benefits, I am thankful that I now have a well-financed Prudential annuity and not a GM pension, because I agree with Porter's assessment of the future of GM. My ties to GM now are limited and the loyalty I had built up over 40 years of work is pretty well gone." – Paid-up subscriber Paul Schnobrick
"I loved it. But I'm a long time subscriber. It is so strange to read the letters like the one from Richard Seifert who did not realize that a CEO of a public company would NEVER say the truth like Porter did, and then wants to cancel his subscription. He becomes the title character in Ben Franklin's 'Poor Richard.' Too bad. Learning the truth is a good thing." – Paid-up subscriber John
Regards,