The S&A Digest

Stansberry & Associates Top 10 Open Recommendations
(Top 10 highest-returning open positions across all S&A portfolios)

As of 07/01/2013

More 'fun' with dividend grabs... Taking the 'coca' out of cola?... Signs of a market top thanks to private equity... Racist mortgages?... Yes, we tell you when to sell, too...

 Don't miss Monday's Digest. We'll discuss another dividend offering... and we'll introduce you to our newest publication – S&A Dividend Grabber. There's even a simple way to get your first year's subscription totally for free.

 A couple of days ago in the Digest, I told you to visit the blog of my friend Will Bonner, who lives in Buenos Aires. One of our Alliance subscribers took note and met up with Will and his wife. Our subscriber happened to be a member of one of the oldest social clubs in the city and invited the Bonners to be his guest. Luckily for us, Will posted some pictures of this club on his blog. The architecture, inside and out, is absolutely stunning. You need to take a couple minutes out of your day to look at these pictures. It is under the heading "The Jockey Club."

 Let me say for the last time... Dan Ferris is not leaving Stansberry & Associates. Why would he? He can manage billions of dollars from the comfort of his home office. Just today, a New York money manager and Alliance member, with $2 billion in assets, spoke with our head salesman, Michael Cottet, and raved about Dan's excellent picks. This is just further proof that you should cut out the middlemen who charge high management fees. They try to attract more money than they can comfortably manage, so their holding fees will increase. They do not have your best interests in mind. Go straight to the source, Dan Ferris.

Goldsmith Comment: That is all Porter could contribute to the Digest today. He is pouring shots of single malt to calm his friend backstage at his wedding. Porter's the best man. He will be returning from Miami next week, I'll take over today's Digest from here.

PSIA pick Anheuser-Busch (BUD) is looking to beef up sales in China. The company wants to double the number of Chinese cities where it sells Budweiser over the next five years from the current 100. BUD sees huge growth potential in the Chinese premium beer market. Right now, Budweiser has only 2% of the Chinese beer market, but 40% of the premium Chinese beer market.

 Bolivian farmers are trying to get Inside Strategist pick Coca-Cola (KO) to drop the word "coca" from its product. The coca farmers are arguing that the coca plant, which is sacred to many, is part of their cultural heritage. The coalition also is trying to get the United Nations to decriminalize the coca leaf, the origin of cocaine.

 Bear Stearns, the nation's fifth-largest investment bank, has joined the hunt for a beaten-down subprime lender. The bank, which is the largest underwriter of mortgage-backed securities, is hoping to buy a whole company or pieces of portfolios.

 Signs of a market top… While other major private-equity firms are playing hot potato with their cash, Bill Conway, co-founder of major private-equity player Carlyle Group, is openly advising his employees to play it safe. Conway realizes that recent successes in the industry were largely due to a favorable environment, and he is advising staff to sacrifice returns for deals with less debt.

 If that weren't enough, another private-equity giant, Blackstone Group, is in advanced talks about an IPO. This is almost guaranteed to be one of the most overbought IPOs in history.

 A study led by the Woodcock Institute, a Chicago-based organization that promotes community development, found that home loans are more expensive for minorities in New York City, Charlotte, Boston, Chicago, Los Angeles, and Rochester, New York. In these cities, blacks were 3.8 times more likely to receive a higher-cost home loan than whites, while Latinos were 3.6 times more likely.

 New highs: Enterprise Products (EPD), Oneok (OKE).

 We apologize for any trouble you may have had accessing our website or sending e-mails to us. We have been experiencing some technical difficulties, which hopefully will be cleared up by Monday. On the bright side, we haven't had to read too many angry rants in the past couple of days. Give us something to look forward to on Monday... feedback@stansberryresearch.com.

 "Like flame to the moth, the beacon of your S&A Digest draws me in despite myself. Thank you for opening my eyes once again to the shysters and con-men lurking in all corners of our greater society..." – Paid-up subscriber Baz Stevens

 "This HMA dividend grab has just been too fun! Both the action of the grab and how it works AND all the letters from everyone who just don't get it. I happily watched HMA go up to $11.11 today. Come on HMA, I've got $8.89 to go (hopefully in 6 months, I bought @$20.00) and I've already got my dividend up front and I'm pondering this new Japanese idea Dr. Sugg just came out with! To put it another way, I'm already up 11% in just a few short weeks! ($1.11/10.00) This will only make some readers more confused. WAY COOL IDEA, keep up the good work!!" – Paid-up subscriber Steve Russo

Goldsmith Comment: Remember, keep your eyes open on Monday for more on dividend grabbing… We'll be discussing a new dividend situation... and introduce you to the S&A Dividend Grabber.

 "Easy, Porter, you may go too far if you were to defenestrate your once-every-five-years consultant. Why don't you just throw the consultant out a window?" – Paid-up subscriber Richard Egli

 "Ferris suggests today that there may be value in the sub-primes – with a very big caution on the MAY. He then counsels diligence. Mortgage lenders are currently facing a macro risk that is way beyond their control to manage. If US housing drops on a nationwide basis by 10% over a year, it will start a downward death spiral that will take out all the mortgage lenders, not just the subprimes. It will be a classic Soros 'reflexive' situation – housing price drops creates higher losses for lenders as borrowers walk away and foreclosure proceeds fall; lenders, in response tighten and housing prices fall further due to weaker demand... snowballing." – Paid-up subscriber Jim Perkins

 "Due to one of your writers recommendations, I watched NEW for almost two weeks and when I thought it was too cheap to pass up I bought 300 shares on February 26 for $14.96 a share. That night I was reading one of your e-mails and someone had written that there were rumors of 'errors' in their reported quarterly reports and that you recommended selling. The next morning (February 27), shortly after the market opened, I sold my 300 shares for $15.00. Almost immediately after my sale, the stock began to drop. Today, two weeks later, [New Century Financial] is at $1.66 and is not trading. With a $7.00 commission on the $14.96 buy I bought 300 shares for $4,495. With the $15.00 sale after a $7 commission I got back $4,493 for a 24-hour loss of $2. If I had not read your sell recommendation and acted on it immediately, I would have lost $3,990. As much as I appreciate your many buy recommendations I think my favorite recommendation so far this year was a 'sell.'" – Paid-up subscriber John Guhn

Regards,

Sean Goldsmith

Baltimore, Maryland

March 16, 2007

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