The S&A Digest

Stansberry & Associates Top 10 Open Recommendations
(Top 10 highest-returning open positions across all S&A portfolios)

As of 07/02/2013

We hope it’s nothing serious… Goldman Sachs upgrades Nokia… Goldsmith upgrades the Digest… More feedback on GM’s coming bankruptcy… How to support American manufacturing…

Editor’s note: A small group of readers had their wishes granted today… Porter is bedridden with illness. Goldsmith is once again filling in.

 Goldman Sachs upgraded PSIA pick Nokia, to “buy” from “sell,” stating that external factors, such as the launch of Apple’s iPhone and Motorola’s profit-warning announcement, have artificially driven down the price. Goldman expects Nokia’s quarterly earnings, which will be posted next week, to be solid. Readers have gained more than 40% since Porter “upgraded” Nokia to “buy” in 2004.

 One of the most popular new locations for oil exploration… Cambodia. The director of the Cambodian National Petroleum Authority today announced that many oil companies have expressed an interest in the land, but the production phase was a “long way” off.

Naturally, China is after the resource, thought to be around 400 million to 500 million barrels. Chinese state-owned oil company CNOOC is in negotiations with the Cambodian government.

 Bank of America is trying to eliminate a law that forbids domestic banks from acquiring more than 10% of U.S. total bank deposits. With 9%, or $584.3 billion, of U.S. deposits, Bank of America is the only bank approaching the limit, which does not apply to internal growth in domestic banks or foreign banks’ U.S. operations.

 According to the prestigious French business school Insead, the U.S. is the world leader in innovation and quickly profiting from ideas. “The U.S. leads the second most innovative nation [Germany] by almost a full point, putting it in a league of its own as far as global innovation is concerned.”

 Boost Mobile, a cell phone company owned by Sprint Nextel, is offering a phone with a GPS device. The new phone allows fellow subscribers to pinpoint your exact location. Loopt Inc., the company supplying the GPS, has signed 100,000 users since its launch last fall. Fortunately, this product was not around when I was in high school.

Time for the mailbag. Send all of your get-well wishes, Goldsmith praise, and curse-laden rants to feedback@stansberryresearch.com.

 “OK kids! Enough of this foul-mouthed language! I’m old enough to be a grandfather to most of you and I ain’t going to put up with it. Clean up your language or you are going to get your mouth washed out with soap and water!” – Subscriber Jack Ford

Goldsmith Comment: I always preferred the flavored soaps.

 “What is it that these yahoos writing these irate letters expect? Maybe all sober-sided comments and 100% accurate recommendations? THEY SHOULD GROW UP AND GET A LIFE!!! By the way, do you take subscribers that are not paid up?” – Subscriber Bob Holzel

 “Ex-Yank living in London. Apple may have a new iPhone on GSM! Great for them. 90% of Europeans are on Blackberry or Windows-based phones. Sure, Apple’s stores are full with kids and students with their new toys! So which market do you want to be connected to?” – Subscriber John Dee

 “How is it that GM trucks (made in Canada) and Ford trucks (made in Mexico) can be equated with ‘American manufacturing’ while (presumably) Toyota and Nissan trucks (both made in USA) are ‘imports’? The only imported trucks of major brands are Fords, GMC, Chev, & Dodge. If one wishes to support American manufacturing, one need only buy a truck with a Japanese brand name.” – Subscriber Dave Burge

 “As Dr. Deming proved again and again, it’s management that’s the problem not the workers. I would love to purchase a GM. I still have fond memories of my brand new 1966 Chevelle Supersport convertible, then my 1971 Corvette Stingray, but... GM has been far away from market comprehension for decades. And it suffers from an overabundance of arrogance almost as bad as Government.” – Subscriber Brian Rusch

 “I believe it was the early 80s when the GM President addressed the stockholders at the annual meeting and stated something to the effect of: ‘We’re not in the business of making cars, we’re in the business of making money.’ I thought then that it was just a matter of time for their demise, having lost their perspective.” – Subscriber Raymond Anglin

 “My 2 cents on GM: Are they losing money? Yes. Poor management? Yes... bad vehicles? I don’t think so. There are absolutely no vehicles Nissan, Toyota, etc. has in the fullsize truck market that can compete with the big three in the real truck class of ¾ ton and up. And when I say full size, I don’t mean a truck with a 4x8 bed. The big three make real trucks, trucks that can haul a cattle trailer packed full of cattle through a muddy barn lot, or bounce across a soft plowed field in the spring with two pallets of seed corn in the bed. But what is sweet is they look and ride nice enough to go out on the town once you wash the s__t off. Where GM, etc. are losing market dominance is in areas where the states vote blue. Basically in farm country, cattle country, and rural America the big three still reign, outside of 100K plus population centers it’s hard to even find a foreign car dealer.” – Subscriber Mike Stevenson

Goldsmith comment: Along with global warming, Wal-Mart, and our readers’ liberal use of profanity, GM is a rich source of reader feedback. Keep them coming, and we’ll continue to read them.

Good investing,

Sean Goldsmith

Baltimore, Maryland

January 16, 2007

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