The S&A Digest

1,000% return… Hedge funds still banking… Company of the day… More mortgage mess…

 Sjuggerud Confidential and S&A Gold Report pick Seabridge Gold (SA) today announced that reserves at the company's Noche Buena project are greater than estimated. The stock gained more than 5% on the news and was briefly trading at a 1,000% gain for readers… making it our highest-returning recommendation in the history of the company.

 We are going to start including the "company of the day" everyday in the Digest. This will be a company that hits a new high and that we know nothing about. We will write a short bullet describing the company and some of its financials. Today's company is…

Ambassadors Group (EPAX) sets up international, educational trips for schools, school athletes, and professionals. The company markets through direct mail and local informational meetings. It's a $736 million company trading for 31 times earnings. The company has $37 million in cash and $143,000 in debt. It brought in $42 million in cash the past four quarters.

 Proxy voters at U.K.-based mobile phone company Vodafone (VOD) rejected a call today for the company to spin off its 45% stake in Verizon Wireless. Shares of PSIA pick Verizon (VZ) gained more than 1.5% on the news.

 Signs of a market top… Despite losses from subprime mortgages, hedge funds had their second-best fundraising quarter in April, May, and June. Globally, the funds pulled in $58.7 billion, down from $60 billion the previous quarter.

 Countrywide Financial (CFC), the biggest U.S. mortgage lender, reported a third straight decline in quarterly earnings and cut its 2007 forecast because of reduced payments from borrowers with strong credit. Second-quarter earnings fell 33% to $485.1 million. The company also dropped its full-year 2007 profit forecast to $2.70-$3.30 from $3.50-$4.30. Shares are down 11.5%.

 New highs: Anglo American (AAUK), Alnylam (ALNY), FLIR Systems (FLIR), Korea Electric Power (KEP), Petrobras (PBR), Southern Copper (PCU), Posco (PKX), Seabridge (SA), SK Telecom (SKM), Taiwan Fund (TWN), ExxonMobil (XOM), Westshore Terminals (WTE-UN.TO).

 Despite Porter's request for death threats, we did not receive any. Are you getting soft? What's the problem? feedback@stansberryresearch.com.

 "Like other readers, I started out with PSIA and True Wealth… A few years ago I took the leap and joined the Alliance and am truly glad I did. I've learned so much in the years following about managing my own portfolio, and I like to think that my experience somewhat mirrors Porter's own evolution in his own newsletter.

"One of my first lessons was letting your winners run, and cutting your losses short. My beef with Porter is that he didn't follow his own advice regarding Intuitive Surgical (ISRG). Recommended in March 2004 at $18, Porter recommended selling for 133% gains less than a year later, which didn't even hit its stop loss, giving the reason it was too expensive. Fast forward to today, ISRG trades over $200. Needless to say, I bought and sold for a tidy profit at Porter's advice, but had I held on and followed his advice to 'let your winners run,' I would be sitting on my first '10 bagger!' Why didn't I follow his advice? Why did I follow his advice?" – Paid-up subscriber Paul W.

Goldsmith comment: We all make mistakes. At least this one more than doubled your money.

 "Just a short note to thank you very much for the books and beautiful leather binder as a welcome to my new subscription to the Alliance. I am hardly new, though. I started out with True Wealth a few years ago, then progressed to the Short Report, then to the Private Alliance, then to Phase 1, and now to the Alliance. Profits from True Wealth alone have paid for the Alliance membership several fold. Your service should be registered with the FDA... it's very addicting. Keep up the good work." – Paid-up subscriber Dennis Avner

Regards,

Sean Goldsmith

Baltimore, Maryland

July 24, 2007           

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As of 06/27/2013