Goldsmith comment: Today's Digest will be brief. I'm flying back to the states today, hoping Hurricane Earl won't strand me in Miami. Dan's busy finishing up his latest issue of Extreme Value. To read about Dan's incredible record in Extreme Value and why you should consider a subscription, make sure to read Tuesday's Digest.
I'm sure you'll hear more about this from Porter tomorrow, but I wanted to congratulate him on his latest coup... Richard Russell, publisher of the Dow Theory Letters and the unofficial dean of the financial newsletter industry, quoted Porter in yesterday's issue.
Russell, who "insisted, demanded, and begged" his subscribers to dump stocks and buy gold last month, shares our belief that the government is destroying our economy. So we're not surprised he enjoyed Porter's essay "This Is Why There Are No Jobs in America." Already, newsletter heavyweights Dennis Gartman and Richard Maybury have quoted Porter's essay after we ran it in DailyWealth last month (you can read it here). Russell added to Porter's musings, beginning in the voice of the "business partner":
Well you get the idea. And oh yes, you might buy a lot of life insurance. Because after you die, I'll take half of whatever your estate is worth. One final thought, if you ever try to stiff me or hide anything from me, I'll break down your door in the middle of the night, throw you in handcuffs in front of your wife and kids and threaten you with my crowd of agents, all carrying automatic weapons. Then I'll throw you in the slammer, and you'll stay there until we work things out to my satisfaction.
Wait, who's the guy who's doing all the talking and offering you such a great deal? What, you haven't guessed? It's the US government, your partner in success. What's this? Now you're rethinking your idea about starting a new business? And your neighbor is rethinking his fantasy of expanding his business? Don't worry, guys, go ahead, you've got a big, powerful partner who is "always there and ready to help". What more could anyone ask for?
With this kind of partner, would you want to start a new business? And we wonder why nobody is hiring.
It's the little guy, the moms and pops, who do most of the employing in this nation. And mom and pop are tearing their hair out these days, wondering how they're going to survive in the Obama world of "tax the hell out of the rich, and share the wealth – just spread it around." The rich man and the little guy are both dizzy and confused. Maybe it's best to hunker down and see what Congress comes up with.
Yesterday, we highlighted the amazing profits Phase 1 readers earned with Matt Badiali's ATAC Resources recommendation. A recommendation from the November 2009 issue, ATAC soared 50% yesterday after fantastic drilling results. Today, as I write, the stock is up another 21%, bringing the total return to 523% in less than a year.
Matt recommended two other small-cap mining stocks that issue: AuEx Ventures and Rainy River. Those stocks gained 103% and 161%, respectively. Picking three huge winners in the small-cap mining sector is difficult. But Matt has developed a strategy that allows him to weed out the losers in the group and focus on miners with huge prospects. Today, he's releasing three new small-cap mining recommendations in Phase 1... He expects these stocks to produce similar gains. Don't miss your chance for triple-digit returns with Matt's latest junior miners. You can learn more about Phase 1 here...
The battle for technology firm 3PAR is finally over... Dell dropped out of the race today after Hewlett-Packard raised its bid to $2.1 billion, or $33 a share. Dell will receive a $72 million breakup fee as part of its contract. Hewlett-Packard will receive a company it's likely overpaying for. Digest readers could have scalped a quick 26% buying when we brought the arbitrage opportunity to attention.
New highs: ATAC Resources (ATC.V), McDonald's (MCD).
Today's mailbag is light... But we heard from one happy short seller. Send your notes to feedback@stansberryresearch.com.
"Like Sean B. I was very reluctant to short but I finally got the courage to short the Luxury Toy Maker and of course the process was rather simple and painless like Porter said. I always knew that but was too chicken to try it before. I read about numerous stocks to short in PSIA over the years and certainly wouldn't do it without some 'encouragement, education, and guidance' as Sean said. I'm looking forward to further shorting recos. Thanks for all your research and work." – Paid-up subscriber Bob Domino
Regards,
Sean Goldsmith
Managua, Nicaragua
September 2, 2010
Porter's latest coup... Phase 1 readers up 520%... New junior mining recommendations out today... 3PAR bidding over... Another short seller is born...