What a bull market looks like...

What a bull market looks like... Making $788,000 in biotech... Steve Sjuggerud is still bullish on biotech... The threat of 'superbugs'... These tiny companies are fighting superbugs... Why Dave Lashmet thinks a certain biotech firm will be acquired soon...
 

 As Steve Sjuggerud has said many times over the years, "If you catch just one biotech bull market in your lifetime, you may never have to work again..."
 

And the above chart of the ProShares Ultra Nasdaq Biotechnology Fund (BIB) – a double-long exchange-traded fund – supports Steve's statement. (Remember, the returns for BIB will be higher than a simple biotech index due to leverage. But the returns for the normal index are still incredible.)
 

BIB hit a low of $8.48 per share on August 8, 2011. It has soared to more than $175 today – a return of nearly 20 times in less than four years.

 Steve has recommended BIB three times in True Wealth Systems since 2012. He recommended shares most recently in October. His subscribers are up nearly 80% on the trade. But if you bought and sold BIB on Steve's recommendations since 2012, you've turned a $100,000 initial investment into $788,000.
 

 The thing is, moves like this in the biotech market aren't unusual...

In the November 25 DailyWealth, Steve showed what a bull market in biotech can mean for investors...
 

Biotech booms are like nothing else in American investing... The potential gains – without leverage – are extraordinary. As one example, biotech stocks gained over 600% in their three-year bull run ending in 2000.   That wasn't a one-off occurrence... Biotech stocks have delivered triple-digit returns (or near-triple-digit returns) in many calendar years (based on the Datastream U.S. Biotech Index). Take a look:   Year Percent Return 1985 146% 1989 64% 1990 104% 1991 170% 1995 88% 1998 75% 1999 147% It has been 15 years since we've seen a triple-digit year in biotech stocks. We're due for a great run in biotech. And right now, I believe we're in the middle of it...

 Steve updated readers on his biotech thesis in today's DailyWealth. Despite the huge gains True Wealth Systems subscribers have made, Steve still isn't ready to sell. He presented the following chart showing that, while biotech stocks aren't cheap today, they're still far from the valuations we've seen at past peaks...
 

 While Steve is investing in the biotech trend through exchange-traded funds like BIB, Stansberry Venture editor Dave Lashmet is looking for tiny, early-stage biotech companies that are poised for huge gains.

In particular, Dave has been researching stocks that fight what the World Health Organization has called "one of the three greatest threats to human health" – antibiotic-resistant bacteria (or "superbugs").

More and more bacteria are becoming resistant to antibiotics today because of overuse. According to the U.S. Centers for Disease Control and Prevention, antibiotic resistance is killing 23,000 Americans a year, making it a real health threat.

 Just months after Dave started telling subscribers about superbugs, we saw a scare on American soil. We wrote about it in the February 19 Digest...
 

Superbugs attacked more than 170 patients at the Ronald Reagan UCLA Medical Center.   NBC News reported this week that an e-mail went out to 179 patients who had possibly been exposed after an investigation found seven patients infected. What's worse, the superbug may have contributed too two deaths.   UCLA identified the superbug as carbapenem-resistant Enterobacteriaceae (CRE). We know that's a mouthful to pronounce. But there is plenty more just like that one. They are antibiotic-resistant bacteria.

 Lashmet explained more about superbugs in the December issue of Stansberry Venture...
 

Superbugs don't just resist one or two common antibiotics, like penicillin or methicillin. They can also resist third-line antibiotics like vancomycin. And some superbugs resist everything.   The Centers for Disease Control and Prevention estimates 23,000 people died in the U.S. in 2012 as a result of antibiotic-resistant bacteria. Europe sees a similar scale. Another 10,000 are estimated in Japan.   Projecting from current trends, the European Commission on Antibiotic Drug Resistance believes we could face 10 million deaths from superbugs by the year 2050. The only hope is new classes of antibiotics that the superbugs have never seen before.

 Because this problem is so serious, Big Pharma has been spending a fortune to buy up small, promising biotech firms that are developing the drugs to fight superbugs.
 

Dave first covered this trend in our flagship newsletter, Stansberry's Investment Advisory. But his research has also led to big gains for his Stansberry Venture subscribers.
 

 Pharma giant Merck bought Stansberry's Investment Advisory recommendation Cubist in December for $9.5 billion... Cubist makes drugs to treat bacteria and superbugs. In particular, Cubist's drug Zerbaxa was close to coming to market. And it was the only drug of its kind, meaning it was a "set-your-own-price opportunity for Big Pharma companies interested in entering the specialty market for antibiotics," according to Dave.
 

We wrote more about the takeover in the December 8 Digest. At the time, Dave told us...
 

Cubist was such an attractive candidate for Merck... not just for its existing drugs, but also for its new drugs awaiting FDA approval. As far as Wall Street accountants are concerned, this new drug is worth zero. It has no sales and legally speaking, it's not even a product.   Merck saw it was a new antibiotic treating superbugs that can evade most (and sometimes all) of the existing drugs. This new drug is worth billions. Merck's confidence in this new drug is based on the published clinical trial results, which were stellar. This new drug was safer and better than the standard of care.

 Stansberry's Investment Advisory subscribers made nearly 50% in three months on Cubist.
 

It's important to note that Merck bought Cubist before its drug came to market. The potential revenue from these new drugs is billions of dollars. So these pharmaceutical giants don't waste time when making these acquisitions... The cost of losing out on the deal is too large.
 

 Also in the December 8 Digest, we told you about another one of Dave's recommendations that was bought out: Durata Therapeutics. Biotech firm Actavis agreed to purchase Durata last October for $675 million.
 

As we explained in that Digest, Stansberry's Investment Advisory subscribers didn't profit off the Durata recommendation. Shares rallied as a large number of readers piled into the stock. Prices drifted back down on no news, triggering the trailing stop. But the important point is that Dave's analysis was spot-on. He correctly predicted two takeovers in a row – an incredible feat.
 

 Today, Dave is calling for another tiny biotech firm to be bought out...
 

This company is scheduled to announce final Phase 3 clinical trials in the middle of the year... Dave said it could happen in a matter of weeks. He has been tracking its trials and believes the testing is already finished.
 

The company just has to compile the data and tell the world if its new drug is a success.
 

 Dave is bullish on this company's prospects. He says that, to date, the trials have shown that this drug seems to demonstrate all the government requirements for approval. And if it does get approval, he believes Big Pharma could buy the company in as little as 18 hours after the announcement.
 

That's why it's so important to get in now... We don't know when this announcement will take place.
 

 You may be skeptical of Dave's ability to call yet another takeover. But remember... he has already predicted two buyouts in the sector, which is currently in the midst of an acquisition tear.
 

The potential for this new company's drug is massive... And Big Pharma won't be able to resist its ability to help fight superbugs.
 

Plus, Dave's track record since we unveiled Stansberry Venture has been outstanding. He has recommended three companies since November (not including his latest). We can't share the names, per his request. But you can see the gains below:
 

 It's clear that Stansberry Venture subscribers are making big money on Dave's recommendations. So I'm sharing some feedback we've received about it. (There's more of it in today's mailbag.) It's some of the most overwhelmingly positive feedback we've ever received about one of our new services...
 

"I am up $29K+ on my [Venture #2] shares... I'm up about $5K on [Venture #3] ... So I'm a happy camper!" – Paid-up subscriber Rob M.   "The Stansberry Venture winners did save my overall portfolio from the losses I took on energy positions with the oil melt down in the latter half of 2014. For that I am very grateful. Stansberry Venture has been nothing short of amazing. Please keep up the great work!" – Paid-up subscriber Jacob B.

 New 52-week highs (as of 3/20/15): AllianceBernstein (AB), Deutsche X-trackers Harvest China A-Shares Fund (ASHR), ProShares Ultra Nasdaq Biotech Fund (BIB), WisdomTree Japan Small-Cap Dividend Fund (DFJ), Dollar General (DG), Esperion Therapeutics (ESPR), Expeditors International of Washington (EXPD), Fidelity Select Medical Equipment & Systems Fund (FSMEX), iShares Core S&P 500 Small-Cap Fund (IJR), SPDR S&P International Health Care Sector Fund (IRY), Eli Lilly (LLY), Prestige Brands Holdings (PBH), ProShares Ultra Health Care Fund (RXL), Constellation Brands (STZ), Travelers (TRV), Two Harbors Investment (TWO), Walgreens (WBA), and Alleghany (Y).
 

 In today's mailbag, more notes of praise for Dave Lashmet's Stansberry Venture advisory. Do you subscribe yet? Let us know about your experience at feedback@stansberryresearch.com.
 

 "I am very happy and pleased... up $35K." – Paid-up subscriber Walter V.
 

 "3 recommendations so far... Up 92%, 45% and 14% respectively so cannot complain. Feels good." – Paid-up subscriber L.G.
 

 "This is the most money I've ever paid for any investment publication. So far, it's been a bargain." – Paid-up subscriber John L.
 

Regards,
 

Sean Goldsmith

March 23, 2015