Burning love and burning cars...

How to buy stocks at a 30% discount to today's prices...

The majority of investors have never heard of this strategy... But used correctly, you can use it to buy stocks at a huge discount.

In today's Digest Premium, Frank Curzio reveals this strategy, which he uses regularly in our most exclusive service, Phase 1 Investor...

To subscribe to Digest Premium and receive a free hardback copy of Jim Rogers' latest book, click here.

 It's Valentine's Day. Love is in the air.

A quick review of the market shows that many people are celebrating with their stocks...

Today, we look at some areas of the market where folks are celebrating their relationships... and we offer opinions on how things will turn out.

First, we'll start with Tesla Motors... a stock we've written skeptically about over the past year.

Tesla is the world's premier electric-car maker. CEO Elon Musk is a genius. We hear Tesla's cars are fine products when they aren't on fire.

 Today, Tesla trades for more than 14 times sales. Remember, that's "sales," not "earnings." Tesla is a now a member of Porter's "Black List" of large companies that trade for the dangerous valuation of more than 10 times sales.

When a large-cap company enters this list, shareholders are in danger. It's very, very unlikely that a company with a $10 billion-plus market cap can grow quickly enough to justify such a huge multiple... and it makes the stock a dangerous bet.

But investors don't seem to care. As you can see from the chart below, the market likes what Tesla is selling.

Shares have soared from $27 in late 2012 to $199 – a huge 637% gain. This week, shares climbed again to reach an all-time high...

 True Wealth subscribers who took Steve Sjuggerud's advice and bought international health care stocks have reason to celebrate today.

Back in 2012, Steve urged his subscribers to buy shares of the S&P International Health Care Fund (IRY). It was a classic Sjuggerud setup...

IRY holds a basket of health care stocks, including European giants Novartis, Bayer, AstraZeneca, and GlaxoSmithKline. These are the "dominators" of the industry.

At the time, these companies were paying huge dividend yields and trading for 10 times earnings or less. The sector was largely ignored. And as Steve pointed out, shares were starting to show some price strength...

Once again, Steve found an area of the market that met his "cheap, hated, and in an uptrend" criteria. It's common sense... and it has produced huge winners for Steve's subscribers for more than a decade.

As you can see from the chart below, the "cheap, hated, and in an uptrend" theory is working out well for IRY shareholders. Shares have climbed from $33.54 (when Steve recommended shares) to a fresh high of more than $46.50 today. It's an outstanding gain for such a safe, high-yielding, diversified portfolio of stocks. These stocks are still not expensive... The market is warming up to the idea of European stocks, so expect this uptrend to continue.

 Gold continues its ascent...

The precious metal is up nearly 1.5% today to $1,319 an ounce. It's gold's eighth-straight day of gains. The Market Vectors Gold Miners Fund (GDX), which holds a basket of major gold producers, is up nearly 2% today. Gold is up nearly 10% in 2014. GDX is up more than 22%.

 Even the exchange-traded funds have stepped in and started buying gold again...

Assets in the SPDR Gold Trust (GLD), the largest physical-gold fund, grew 1.2% this week to 806.35 metric tons – the highest since December 20. It's the third consecutive weekly advance... a bullish sign after GLD shrunk 41% last year.

It sure looks like gold has bottomed.

 And silver, gold's cheaper cousin, jumped nearly 5% higher today... It's the first time silver has traded for more than $21 an ounce in three months.

 We may even be seeing signs of a bottom in emerging-market stocks...

Brevan Howard Asset Management, one of the largest hedge funds in the world, is shuttering its emerging-markets fund. The $2 billion fund lost 15% last year. The iShares MSCI Emerging Markets Fund (EEM), which holds a number of emerging-markets stocks, is up nearly 1.5% today to around $39.75. Shares are up more than 7% over the past nine trading days.

 One last note... Our offices are closed Monday for the Presidents' Day holiday. We'll be back to our usual fare on Tuesday. Enjoy the long weekend.

 New 52-week highs (as of 2/13/14): Activision Blizzard (ATVI), Becton-Dickinson (BDX), ProShares Ultra Biotechnology Fund (BIB), Comstock Resources (CRK), Dominion Resources (D), Diebold (D), Enterprise Products Partners (EPD), Express Scripts (ESRX), Energy Transfer Equity (ETE), GigaMedia (GIGM), Corning (GLW), Hershey (HSY), iShares Nasdaq Biotechnology Fund (IBB), SPDR International Health Care Fund (IRY), National Fuel Gas (NFG), Penn Virginia (PVA), ProShares Ultra Technology Fund (ROM), ProShares Ultra Health Care Fund (RXL), Sanchez Energy (SN), Targa Resources (TRGP), and Walgreens (WAG).

 Love must be in the air, more positive feedback today. Send your e-mails to feedback@stansberryresearch.com.

 "Again, the subject matter in today's (2-13-2014) DailyWealth Trader is of interest to me. And the presentation is very well done. I have done short selling before – but rarely resulting in gains. The reason? Generally, I went in too soon or stayed too long. Perhaps with proper guidance, giving me both entry point and exit point, I might try again. Again, a well-done piece." – Paid-up subscriber David Li

 "I've been with you since the Pirate Investor days and have been an Alliance member for so long it's sinful to mention what I paid to join you for life. Your Black Label Radio show of Jan 31st. had been red flagged by my e-mail program till today. Opening that show and listening in was just an absolute gut splitting pleasure and reminded me of how greatly I've benefitted from knowing your work. All of it. The good with the 'bad.' After all, I've learned as much if not more from 'mistakes' or bad decisions than from the better of choices. PLEASE don't retire until after I get to shake your hand someday and thank you personally for enrichening my life, not just monetarily but intellectually as well. Hoping to get to an Alliance meeting or another of your get togethers someday to share some lively conversation over a g&t!!" – Paid-up subscriber Chris Demopoulos

Regards,

Sean Goldsmith and Brian Hunt
Miami Beach, Florida, and Delray Beach, Florida
February 14, 2014

How to buy stocks at a 30% discount to today's prices...

Editor's note: Today's Digest Premium is adapted from the latest episode of Frank Curzio's S&A Investor Radio podcast. In it, Frank discussed a little-known way to buy stocks at a massive discount to today's prices.

He also featured an interview with CNBC's Mad Money host Jim Cramer. Cramer typically refuses to speak to the media. But because he and Frank used to work closely together, he agreed to do a 20-minute segment. It could be one of the best interviews you'll hear this year. You can listen to the episode for free by clicking here...

 Today, I (Frank Curzio) would like to discuss "flash bids."

I was amazed that so many people did not know about these... I've used flash bids to book dozens of triple-digit winners over the past few years in Phase 1 Investor.

Flash bids is just another name for "stink bids." They're when you put in lowball limit orders on small-cap stocks, sometimes 25%-35% below the current trading price. I know you're saying, "Well, Frank, if I did that, how would I ever get these stocks? It sounds crazy."

Believe it or not, I get filled on these types of bids all the time. Small-cap stocks – especially microcaps in biotech and the junior-mining industry – can be incredibly volatile.

 People sell on news. For example, if a biotech company has Phase II data that didn't come through, the stock in question will sell off 50%-60%... And sometimes, it trades for less than cash.

That goes for junior miners as well. The entire junior-mining industry is down 60%-70% from its highs.

Junior miners bumped higher over the past month or so, but not every company is the same. Some of these firms have great management teams sitting on great properties that will be developed in the next 18 months. Most of these junior miners put a stake in the ground, find gold, and get assigned a $100 million market cap. It's cheap. But what that company doesn't want to tell you is it costs $1 billion to get that gold out of the ground. There are lots of good junior-mining stocks. And sometimes, they sell off and people overreact.

 But it's more than just putting in flash bids on stocks. You need to do deep, fundamental research to make sure the price you pay for these stocks provides an almost no-lose situation for you, while giving you triple-digit upside.

You're probably asking, "How is that possible?" Like I just mentioned, sometimes a biotech stock would trade under cash after bad news on Phase II. But the market is just looking for more data... And that may come out in six or nine months. The company may have a portfolio of early-stage drugs you're getting for free, just because investors overreacted to the bad news and sold the stock down to less than its cash value.

 A good example is during the credit crisis, you had opportunities to buy good banks for less than book value. Most of the time, that's a steal. Banks today would have to fall about 35% from current prices to trade for less than book value. That's a big drop... But maybe the bank announces bad earnings one quarter, or maybe you have a "flash crash." Remember when Procter & Gamble dropped 50% in a couple of hours? It came back in less than 30 minutes.

The strategy is simple. You throw out a bunch of flash bids with the hope that you hit them. Most of the time, you'll hit on maybe one-third of your bids. I've created a whole portfolio of stocks I'd like to buy 25%-35% cheaper than today's prices. So you put in limit orders to buy these stocks.

– Frank Curzio

Editor's note: Frank is hosting a free webinar on Thursday, February 20 to explain the "flash bid" strategy. In the 40-minute presentation, he will teach you exactly how to use flash bids... and how he applies the strategy to the microcap stocks he has found in Phase 1 Investor. Listeners will also receive a special one-time offer to subscribe to Phase 1, our most expensive research service. To sign up for the free educational webinar with Frank, click here.

How to buy stocks at a 30% discount to today's prices...

The majority of investors have never heard of this strategy... But used correctly, you can use it to buy stocks at a huge discount.

In today's Digest Premium, Frank Curzio reveals this strategy, which he uses regularly in our most exclusive service, Phase 1 Investor...

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 02/13/2014

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.

Stansberry & Associates Hall of Fame
(Top 10 all-time, highest-returning closed positions across all S&A portfolios)