Wed, Jun 1, 2011|Sean Goldsmith

Coca-Cola moving to China...

The exodus of U.S. companies to mainland China continues...

Great Minds Wanted, Wicked Pens Adored

Stansberry & Associates Investment Research is hiring an assistant analyst for Stansberry's Investment Advisory. We're looking for people with a genuine passion for finance.

The ideal candidate is excellent at balance sheet and cash flow analysis, has a keen mind, lives and breathes the world's markets, and writes great stories. Formal experience is preferred but may not matter, depending on the candidate.

If you've ever wanted to make a living reading, writing, and thinking, please send us:

• A writing sample. Tell us about an investment opportunity. We're interested in the fundamentals of your best idea, not something based solely on charts.

• A basic resume. Tell us what you've done before. We admire people who aren't afraid of hard work or odd jobs.

• Your income requirements. While we prefer candidates that are willing to work for free, we expect to pay handsomely for qualified employees.

No other information is necessary. Send via e-mail, with the subject line "Assistant Analyst," to: stansberryresume@gmail.com.

Casino mogul Steve Wynn said he considers his company, Wynn Resorts, a Chinese company. And Intel is moving one of its top executives, a future CEO candidate, to China. The microprocessor giant believes China will soon become the world's largest market for personal computers.

Today, Coca-Cola announced it is seeking a Shanghai Stock Exchange listing. The world's largest soft-drink maker is currently in discussions with China's government to list its shares in mainland China. Around 14% of Coke's $35 billion in 2010 sales came from the Pacific region. Sprite is China's top-selling soft drink. And Coca-Cola is building plants in China at a faster pace than expected. According to Geoff Walsh, Coke's Hong Kong-based director of Asian PR, the company is ahead on its commitment to invest $2 billion in China between 2009 and 2011.

Also, Citigroup is close to completing a joint venture with Chinese brokerage Orient Securities. The partnership with the Shanghai-based brokerage could be announced as soon as Thursday. According to Chinese law, Citi is able to hold up to a one-third stake in the partnership, with Orient holding the rest. Morgan Stanley and JPMorgan were both approved for similar joint ventures in January. These partnerships give U.S. banks a platform to underwrite in China... which had the most initial public offerings in the world last year. In 2010, 346 companies raised $83.7 billion in Chinese listings (more than double what was raised in the U.S.).

Yes, sending executives to mainland China and seeking listings there will aid in U.S. companies' growth abroad. But the biggest reason these firms are listing in China – which you won't read in their press releases – is that they will be able to fund their growth in a currency other than the U.S. dollar: the yuan.

While U.S. corporations are rushing for the Chinese border, we continue to see clear signs of inflation in the country. We already discussed Chinese buyers pushing up the value of Vancouver real estate. It appears the hot Chinese money is also funneling into art...

Sotheby's Hong Kong auction sales jumped to $540 million in the first half, doubling sales in the same period last year. The record was boosted by $87.6 million in proceeds from yesterday's sale of 25 works by 20th century Chinese master Zhang Daqian. One painting sold for a record $24.5 million to an Asian bidder (more than nine times the high estimate).

The Eagle Ford shale formation in Texas could be the largest oil find in the history of the United States. And we told you about it before anyone else. Our friend, Texas oilman Cactus Schroeder, told us about Eagle Ford while we were fishing for marlin in Panama.

Porter wrote up the full story in the April 2010 issue of Stansberry's Investment Advisory. Cactus and his partners eventually sold their shale properties (Enduring Resources) to Norway's Statoil for $1 billion. Big Oil has invested tens of billions of dollars into the area. We've seen purchases from China's largest oil and gas company, CNOOC, ExxonMobil, Chevron, Chesapeake Energy, etc.

Today, Marathon Oil announced it will pay $3.5 billion in cash to buy Hilcorp Resources Holdings, which owns around 141,000 acres in Eagle Ford. The deal should close November 1. Marathon Oil expects to double its acreage in Eagle Ford to 285,000 acres.

End of America Watch

The private sector added only 38,000 jobs last month, according to today's report from payroll giant Automatic Data Processing (ADP). Economists were expecting 190,000 jobs. We don't know why people still listen to these "expert" economists, but the market fell on the news.

Perhaps these poor U.S. job numbers are why the euro is rallying against the dollar, nearing $1.44. We can't think of any other reason. The news from the European Union today is that Greece will receive its second bailout in two years. (Last year's $159 billion bailout wasn't enough.) The government is trying to entice bondholders to roll over Greece's debts in return for higher yields, preferred status, and collateral.

The rising euro is short sighted. No, Greece will not technically default. But the country's debt should hit 157.7% of gross domestic product in 2011, the highest in euro history. And the European Commission expected Greece's economy to contract 3.5%, leaving the country unable to generate tax revenue to pay off its debts.

To see the End of America video that started it all, click here...

Also, to read an exclusive interview with Porter Stansberry explaining how to protect yourself from the End of America, click here...

To sign up to receive the latest information about our Project to Restore America, click here.

New 52-week highs (as of 5/30/11): Forest Laboratories (FRX), Prestige Brands (PBH), Automatic Data Processing (ADP), Royal Gold (RGLD), Johnson & Johnson (JNJ), Icahn Enterprises (IEP), Altria (MO), Philip Morris International (PM), K-SEA Transportation (KSP).

In today's mailbag... It's more difficult to buy bonds than stocks... and that's a good thing. Send your feedback here... feedback@stansberryresearch.com.

"After reading the positives regarding bonds vs. stocks, as written by Porter Stansberry, I decided to try a subscription to this newsletter. As it is not cheap, I have spent some time trying to learn the benefits of the investing style that is used. My problem is that I have tried to purchase the last two recommendations without success. My broker, Wells Fargo, apparently does not have these bonds for purchase and more importantly the order has to be renewed on a daily basis. I usually purchase my stocks with a good until cancel order that has a limit price set to where I want to buy the stock.

"I need some help trying to figure out how to best handle my buy orders or it will be easier for me to cancel the newsletter and take the penalty vs. wasting a year's subscription price. I must say that I am a VERY SATISFIED customer with your overall work. This is a probably an easily fixed problem and I need to figure out how to best handle it." – Paid-up subscriber James Veale

Mike Williams comment: Investors who are used to "double clicking" to buy stocks are a little surprised by the effort it takes to buy bonds. New subscribers to my advisory, True Income, often write in describing the difficulties they have with their broker. I have covered much of this in the True Income Basics special report. Subscribers can find it on the True Income page of the Stansberry & Associates website. It's posted in the "Special Report" section. In the report, you'll find a section entitled "A conversation with your bond broker" that answers many of the common questions.

Regards,

Sean Goldsmith

Baltimore, Maryland

June 1, 2011

Coca-Cola moving to China... Investment banks are, too... Chinese moving their money out... Another major purchase in Eagle Ford... Sad employment numbers... Euro still rallying... How to buy a bond...