Stansberry & Associates Hall of Fame
(Top 10 all-time, highest-returning closed positions across all S&A portfolios)
| Investment | Sym | Holding Period | Gain | Publication | Editor |
| Seabridge Gold | SA | 4 years, 73 days | 995% | Sjug Conf. | Sjuggerud |
| ATAC Resources | ATC | 313 days | 597% | Phase 1 | Badiali |
| JDS Uniphase | JDSU | 1 year, 266 days | 592% | SIA | Stansberry |
| Silver Wheaton | SLW | 1 year, 185 days | 345% | Resource Rpt | Badiali |
| Jinshan Gold Mines | JIN | 290 days | 339% | Resource Rpt | Badiali |
| Medis Tech | MDTL | 4 years, 110 days | 333% | Diligence | Ferris |
| ID Biomedical | IDBE | 5 years, 38 days | 331% | Diligence | Lashmet |
| Northern Dynasty | NAK | 1 year 343 days | 322% | Resource Rpt | Badiali |
| Texas Instr. | TXN | 270 days | 301% | SIA | Stansberry |
| MS63 Saint-Gaudens | 5 years, 242 days | 273% | True Wealth | Sjuggerud |
Why we're seeing a huge cultural shift thanks to video games...
Over the years, Porter has recommended buying shares of video-game companies.
In today's Digest Premium, he explains why they're the most influential form of media today...
To subscribe to Digest Premium and access today's analysis risk-free, click here.
So long, Ben... The rich are richer and the poor are poorer... How to double your money in 12 months... One of the cheapest oil and gas stocks in the world... Mike's first 'real fish'... How to get on Porter's boat...
In his latest Investment Advisory issue, Porter bids farewell to Federal Reserve Chairman Ben Bernanke...
The massive quantitative easing we've seen under Bernanke's reign is one of the greatest thefts in history... By printing trillions of dollars to boost a sagging economy, Bernanke has robbed the wage earners and savers in America... and robbed future generations, who will be burdened with the massive debts we're accumulating today.
Meanwhile, the rich get richer. Consider this data from the Pew Research Center, a public policy research organization...
During the first two years of the nation's economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%.
From 2009-2011, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3,173,895 from an estimated $2,476,244, while the mean wealth of the 111 million households in the less affluent group fell to an estimated $133,817 from an estimated $139,896.
While the government claimed it was printing this money to help America as a whole, anybody with a basic understanding of economics knew what was really going on... Low interest rates and inflation allow the wealthy to borrow money for next to nothing to buy real assets.
On the other side of the coin, the poor get poorer. The Pew Research Center continues...
|
With these statistics in mind, we hope you enjoy this excerpt from Porter's farewell letter to Bernanke...
|
I (Sean) am writing today's Digest from Porter's fishing boat, Two Suns. We're somewhere off the coast of Bimini in the Bahamas.
We're totally unplugged... No TV, barely enough Internet signal to send e-mails, and no cell phones. So you'll have to excuse the abbreviated Digest today. (Fortunately, we've been able to ignore the mainstream media shouting about the government shutdown.)
Warren Buffett, the world's greatest investor, lives in Omaha, Nebraska... He enjoys being thousands of miles from the noise of Wall Street. It can't corrupt his thinking. You can think better with peace and quiet. It's similar on this boat in the middle of the ocean. And after talking to us about the market for the last two days, Porter has come up with an idea he believes can "at least double your money in the next 12 months."
As regular readers know, Porter and his team of analysts have been covering the energy boom currently underway in places like the Eagle Ford Shale in Texas and the Marcellus Shale in West Virginia and Pennsylvania. And right now, one company is buying up tons of land in the Cline Shale in Texas' Permian Basin. (Last week, we updated you on what Frank Curzio saw on his trip to the Eagle Ford.)
The company Porter has discovered is a leading natural gas producer. It recently acquired land in the Permian Basin, which sent its oil production soaring. Its second-quarter U.S. oil production was up 36% over the same period in 2012. Its natural gas liquids production in the U.S. was up 25% over that time frame... most of which was driven by production in the Permian Basin.
And Porter says when this company reports its next quarterly results, the market will be stunned by how much production has increased.
Many of the other natural gas producers in the Cline Shale are much more expensive than the company Porter has found. In fact, Porter calls it one of the cheapest oil and gas stocks in the world right now on a price-to-reserves basis. He thinks shares will explode higher soon. The dirt-cheap energy stocks in his Investment Advisory portfolio are already showing impressive gains.
As of yesterday's close, these companies are up an average of 25%... and 10 are showing a profit (including one position that is up 108% in just over a year).
Porter rates six of these companies a "buy" at today's levels – including the one he believes could double your money in just over a year. (Stansberry's Investment Advisory subscribers can refer to the August 2012 issue to get the details on this company.)
If you'd like to gain access to Stansberry's Investment Advisory, you can learn more about a four-month, 100% risk-free subscription by clicking here.
We'll end today's Digest with a photo we took yesterday... One of our colleagues, Mike, caught the best fish of the day. It's his first time fishing on Porter's boat. And he has caught two sailfish.
The one in the photo took about 150 yards of line, making the reel scream, to the delight of everyone on the boat. We put the boat in reverse so the fish wouldn't use up all the line. Water was pouring into the boat. Mike was soaked... and smiling. In the end, he proved victorious. He called it his first "real fish."
We brought this one into the boat so he could get his bragging rights. (Don't worry, we released it unharmed.)
Tomorrow is our last day of fishing... Then it's back to real life. But as always, it's been a great trip.
We anchored in the middle of the ocean last night... We grilled steaks and drank red wine. After a night swim, we watched Monday Night Football before dozing off.
Porter is actually chartering his boat now... Two Suns is a 65-foot Viking. You can take off from Miami Beach and fish almost anywhere in the Bahamas. It comes with Porter's full-time crew (some of the best in Miami) and all the food and drinks you want. If you'd like more information, e-mail Captain Steve Hubbard at twosuns1207@gmail.com.
New 52-week highs (as of 10/14/13): Blackstone Group (BX), Chicago Bridge & Iron (CBI), EnerSys (ENS), Energy Transfer Equity (ETE), iShares Germany Fund (EWG), SPDR Euro Stoxx 50 (FEZ), Fidelity Select Medical Equipment & Services Fund (FSMEX), iShares Dow Jones Insurance Fund (IAK), Integrated Device Technology (IDTI), KLA-Tencor (KLAC), Loews (L), ONEOK (OKE), PowerShares Buyback Fund (PKW), ProShares Ultra Technology Fund (ROM), Sequoia Fund (SEQUX), Constellation Brands (STZ), Cambria Shareholder Yield Fund (SYLD), Triangle Petroleum (TPLM), and Walgreens (WAG).
In today's mailbag, one Seattle-area subscriber shares his thoughts on Microsoft... and why he'll never invest in the software behemoth. Send your e-mails to feedback@stansberryresearch.com.
"Just finished reading your comments on MSFT. I agree they are terrible at allocating resources. However, there is more to consider. I live one mile from MSFT and many of my neighbors work there. MSFT problems go much further than what you suggest.
| 1. |
MSFT is not a good place to work. They create an atmosphere of intense and unhealthy competition between employees. They destroy any and all team effort. The manner in which they conduct job reviews forces the manager to rate some employees as bad, even if they are not. |
| 2. |
MSFT has totally failed to innovate. They allow upstarts to come into the marketplace and gain market share because MSFT is asleep at the switch. MSFT has over 70,000 smart and talented employees. They do not create an environment that encourages innovation. |
| 3. |
MSFT has a long history of either copying, stealing, or purchasing innovation. Name one product MSFT developed on their own that has been a market success. Even DOS was purchased from Seattle Computing. |
| 4. |
Both Gates and Ballmer's mgmt style is largely one of being a bully. They need management that inspires people to perform to the best of their ability. Intimidation and bullying doesn't cut it. |
| 5. |
MSFT cannot compete for talent against Google and others. Part of the issue is compensation... but, in my opinion, the real cause is mgmt style. People want to work in a healthy environment. |
| 6. |
With all the money in the world and a failure to create an environment that fosters innovation, MSFT will continue to fail to achieve its true potential. |
| 7. | MSFT is a bureaucratic mess. Too much money, too many people juggling for power. This needs to be cleaned up. |
"My wife and I have personally known two MSFT presidents. Both were fired. One was an idiot. And the other was a good, ethical man who could have done great things for MSFT if Bill Gates, Steve Ballmer, and Paul Allen had allowed him to. The good leader was dismissed in Allen's book in one short paragraph. Makes me question Allen's ability to judge talent.
"The bottom line is you don't have to be a great manager if your company has a monopoly, 50-80% margins, and sells a product the world wants. That is the past for MSFT. As they go forward, they have to change their management style or they will ultimately kill themselves.
"It's that simple. And that is why I wouldn't touch MSFT stock (even for all the good reasons) until they put competent mgmt in place and the gang of three allow them to turn MSFT into what it has the potential to be. Gates should resign his position as chairman. It no longer serves the interest of the company he founded with Paul Allen. And Ballmer should leave ASAP. He has wrecked untold havoc on MSFT for 10 years. And Gates (as Chairman) should be ashamed for allowing his buddy to continue doing this for 10 years. After all, MSFT is a publicly held company with a responsibility to the owners. Not a private serfdom." – Paid-up subscriber Jim
Regards,
Why we're seeing a huge cultural shift thanks to video games...
Over the years, Porter has recommended buying shares of video-game companies.
In today's Digest Premium, he explains why they're the most influential form of media today...
To continue reading, scroll down or click here.
Stansberry & Associates Top 10 Open Recommendations
(Top 10 highest-returning open positions across all S&A portfolios)
As of 10/14/2013
| Stock | Symbol | Buy Date | Return | Publication | Editor |
| Rite Aid 8.5% | 767754BU7 | 02/06/09 | 624.7% | True Income | Williams |
| Prestige Brands | PBH | 05/13/09 | 407.4% | Extreme Value | Ferris |
| Enterprise | EPD | 10/15/08 | 233.5% | The 12% Letter | Dyson |
| Constellation Brands | STZ | 06/02/11 | 197.5% | Extreme Value | Ferris |
| Abbott Labs | ABT | 05/20/11 | 179.9% | The 12% Letter | Ferris |
| Altria | MO | 11/19/08 | 170.8% | The 12% Letter | Dyson |
| McDonald's | MCD | 11/28/06 | 165.4% | The 12% Letter | Dyson |
| Ultra Health Care | RXL | 03/17/11 | 164.3% | True Wealth | Sjuggerud |
| GenMark Diagnostics | GNMK | 08/04/11 | 162.5% | Phase 1 | Curzio |
| Hershey | HSY | 12/06/07 | 150.2% | SIA | Stansberry |
Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any S&A publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.
| Top 10 Totals |
| 1 | True Income | Williams |
| 2 | Extreme Value | Ferris |
| 3 | The 12% Letter | Dyson |
| 1 | The 12% Letter | Ferris |
| 1 | True Wealth | Sjuggerud |
| 1 | Phase 1 | Curzio |
| 1 | SIA | Stansberry |
Why we're seeing a huge cultural shift thanks to video games...
As you may have heard over the past month, sales of the hottest new video game – Grand Theft Auto V – have broken all sorts of records. It's the fastest entertainment content to gross $1 billion.
Over the years, I (Porter) have been a huge proponent of investing in video-game companies. At various times, I've recommended buying shares of Take-Two Interactive (which is the producer of Grand Theft Auto V) specifically because of the franchise.
In my Investment Advisory, we're up 41% on shares of Activision, which owns first-person shooter Call of Duty and the massively popular online role-playing game World of Warcraft.
But these companies have tremendous volatility in their earnings. When they have a big game out like Take-Two does now, the stock becomes very expensive.
And when they're in between games or concepts, the stocks slump greatly... because their earnings stay extremely cyclical around the release dates of these games.
My hunch is that as video-game technology matures, the publishers will become more adept at adding constant updates rather than one-time launches. For example, I wouldn't be surprised if in 90 or 180 days, there is some new downloadable component that adds something new to your Grand Theft Auto V game. That way, you're paying every month or every quarter or every year, rather than paying only when new games are released. We've already seen this with Call of Duty.
The other thing to understand about these games is that over time, they will become more culturally important than movies. Consider that 100 years ago, the most important cultural media was the novel. Nothing was more important than the novel. And there was no greater prestige as a publisher than to be a book company.
Then, in the 1930s, with Gone with the Wind, you saw the feature film become the most powerful and influential cultural form of media... And suddenly, movie companies were the most valuable and most desired form of media.
For a time, television filled that role. Think about the incredible cultural clout that news anchor Walter Cronkite had, and the amazing power of those television networks for many years.
Now, we've slowly had the rise of video games. And for people over the age of 45, the cultural influence and prestige of these games is totally misunderstood. Most people on Wall Street don't get it at all. But for the younger generation, they spend more money on video games – which are more influential in their lives – than any other type of media.
What really drives the popularity of video games is not the value proposition... it's the immersion and the ability of the game system to create a whole fantasy world for the user.
– Porter Stansberry with Sean Goldsmith