The S&A Digest

Allergies... Penthouse at the Ritz... Another sign of a top... Hope he looks like mama... Just buy the whole company...

 "Goldsmith, I got upgraded to the penthouse at the Ritz," Porter told me on the phone last night.

Things seem to be going great with his Miami vacation – great room, great weather, great friends. Meanwhile, I'm on my deathbed...

Porter put me in charge of his house and his dog, Ruby, for the weekend. And, as instructed, I took Ruby for a walk this morning. As we approached the field behind Porter's house, she darted ahead through the two-foot-tall weeds, leaving me in the dust... literally. She kicked up huge clouds of pollen with every jump.

I've never had a problem with allergies before, but there's a first time for everything. Now, every time pollen-laden Ruby gets near me, I sneeze violently. As I write this, she is jumping all over me, and tears are streaming from my blood-red eyes. I'm sure these allergies are nothing a fine bottle of Brunello – from Porter's collection, of course – can't cure.

 A quick question answered about our Private Wealth Alliance special report: Twelve Stocks to Retire With... All lifetime subscribers will receive a copy of this report in their inboxes on Wednesday, May 30. We'll also post a copy of the report online.

 Signs of a market top... According to insiders, investment-banking powerhouse Goldman Sachs (GS) is putting a freeze on hiring.

 Inside Strategist pick Coca-Cola (KO) will purchase Glaceau Vitaminwater for $4.1 billion, its biggest acquisition in history. Coke is making the move in order to compete with PepsiCo's SoBe Life Water in the noncarbonated drink market.

 Next time you want to test-drive a Toyota Camry or Honda Accord, go to a Saturn dealership. PSIA short sell General Motors (GM) asked Saturn dealers to have the competing models in the showroom so potential buyers can compare the different products... and hopefully choose the Saturn Aura.

 You may want to reconsider your Memorial Day plans... AAA predicts this will be the costliest holiday in history. The travel group estimates that 32 million Americans will drive 50 miles or more over the weekend. With gas at an all-time high of $3.23 a gallon, and steak and chicken prices up 5.5% and 7.7%, respectively, from last year (according to the Labor Department), this weekend getaway could end up breaking the bank.

Despite the gouging at the pump, OPEC will not increase supply. Instead, it blames the refineries, claiming they're the "bottleneck" in the supply chain. If people were willing to pay through the nose for my product, I wouldn't want to do anything to drop the price, either.

 New highs: Buckle (BKE), American Express (AXP), Delta Financial (DFC), Manpower (MAN).

 Porter was kind enough to comment on some of your e-mails over the phone this morning, in between his hysterical laughing and my nose-blowing.

Enjoy your Memorial Day. As you know, we will not be publishing a Digest on Monday, but feel free to check in with us over the weekend to let us know about the good times and good food you're having. Your e-mails will give Porter something to look at while he's in Miami.

Also, if you have any allergy remedies for a first-time sufferer, don't hesitate to shoot an e-mail to feedback@stansberryresearch.com.

 "If U.S. politicians had your attitude about accepting and responding to criticism, maybe a lot more citizens would trust them. As it is, we can be so certain they'll lie that they reveal the truth as soon as they open their mouths, though not by intention – i.e., whatever they say is true, isn't, and vice versa. Imitation being the sincerest form of flattery, I pay you the highest compliment in this manner: If I were running an investment service that offers free e-mail service, I would copy yours." – Paid-up subscriber Stephen O.

 "It's been some ride since I subscribed to True Wealth a couple of years ago, my first impression another newsletter... let's see what it can offer... I guess what really caught my eye was the trailing stops... then watching recommendations grow in value that really get my full attention and then my own investing and making money... Got into Jeff Clark's Short Report (lousy name) about a year ago, now into 12%, Penny, Big Trend, Oil Report, and now my head is swimming with stock information & recommendations and I have acted on many and almost all are up in value... Now what gives in your pushing: Steve Sarnoff, Options Hotline, when you have Jeff Clark on staff? On top of that, one of your writers states Steve Sarnoff's service does not give information on when to close a trade and the rest of his advertising is a bunch of hogwash... I would appreciate your response." – Paid-up subscriber Stuart Anderson

Goldsmith comment: We do not endorse Sarnoff, and Porter's said all he's got to say about the matter.

 "Unless I was drunk at the time (which I allow is possible), I seem to recall

 you suggesting that no more than 4% of one's portfolio should be allocated

 to any single investment. To me this implies that, to achieve this, one should spread one's portfolio over 25 different investments (4 x 25 = 100). As I have trouble remembering where I left my keys, that seems like a lot of things to keep track of. Should I drink more until things become less confused? (I have some clear fluid in a mason jar in my dining room.) Can you please comment?" – Paid-up subscriber Paul

Porter comment: We don't believe that anyone should have all of their assets in stocks. You're leaving out allocations for gold, real estate, bonds, and other fixed-income assets. From time to time, we recommend that you take a larger than 4% position. For example, back in March 2006, I recommended a 25% maximum allocation to Budweiser (BUD).

But to answer your question directly, in the battle between diversification and knowledge of your investments, we would favor knowledge of your investments.

 "Another question if you'll humor me a bit longer... who the hell goes TO Florida this time of year? You're supposed to come invade Cape Cod like all the others who think it was created merely to accommodate their 'second homes.'" – Paid-up subscriber Joseph Zmuda

Porter comment: People who have best friends in Miami. (By the way, the temperature here today is in the seventies, Cape Cod is in the nineties.)

 "I obviously have nothing to impart in the ways of financial wisdom

 but I can help you limber up for parenthood; Take several prized books out of your library and scribble on them with crayon, spread peanut butter on your rarest DVD or CD, crush some cookies and leave them behind your sofa cushions, then smear your hands in jelly and press them on your plasma TV.  Finally, set your alarm clock to go off every 2 hours to sing some nursery rhymes then you should be all set. Enjoy parenthood. Its the greatest thing you will ever do." – Paid-up subscriber Paul Bagshaw

 "I had no idea that I would have to buy into the Stock market when I ordered the S & A report. Your reading made me think we had to just buy into those companies not through stocks and I don't know what is going on or which end is up on the stock market." – Paid-up subscriber Martin

Goldsmith comment: Were you looking to purchase the entire company?

 "Pray that that baby will look like its mother." – Paid-up subscriber Kain

Goldsmith comment: We do.

Regards,

Sean Goldsmith

May 25, 2007

Stansberry & Associates Top 10 Open Recommendations

Stansberry & Associates Hall of Fame

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

As of 06/28/2013