The S&A Digest

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

As of 06/28/2013

Dyson and the pimp... Asian CFAs... BHP jumps into the Alcoa fight... Lunch with Buffett... Baron's $103 million beach "cottage"... The best barbeque in Baltimore... A goat on a treadmill... Making 20% per month?

One more note about barbeque... Yesterday we found Big Bad Wolf's House of Barbeque where "the pigs never had a chance." It's in a little tiny yellow house, a few feet off of Harford road in the Northeast part of the city. There are no tables, but the menu is straight out of a barbeque dream. It's got sauces in all the major styles: Texas pit, North Carolina vinegar, North Carolina vinegar and ketchup, South Carolina mustard base, St. Louis sweet, and Memphis rubs. We ordered a broad sample – ribs, brisket, pulled pork, and most of the sauces. The ribs were the best I've ever eaten in my life, bar none. (My brisket beats theirs...) Sitting outside, on a picnic table, we watched as half a dozen police offers stop in – one after another. There's no better endorsement of a barbeque joint.

Another update from Tom Dyson, on the scene in Detroit... "It's a Hollywood cliché, but this is the first time I've ever actually experienced it. Last night, I was woken up at 4 a.m. by people [having sex] in the room next to mine. The woman was shrieking, and the bed sounded like the base beat of a rap song as it bumped against the wall... I chose to stay in a fleabag hotel to keep my expenses down and to get a real flavor of what downtown Detroit is like. I saw a hooker with her pimp here on Monday, so I'm guessing this hotel books rooms by the hour. Anyway, if I see them again, maybe I'll try to get a quick interview?"

As you can see, dear reader, we'll go the gates of hell in our search for great investments on your behalf.

Signs of a market top... For the first time in history, Asian applicants outnumber those of the U.S. for the Chartered Financial Analyst (CFA) exam – a standard qualification on Wall Street. Asia will field 52,900, the majority from India and China, while the U.S. has only 45,400.

True Wealth and Inside Strategist pick BHP Billiton (BHP) is in early-stage talks with Alcan, as the aluminum producer tries to fend off an unwanted $27 billion bid from Alcoa. Alcan last night said that Alcoa's bid was "inadequate in multiple respects." BHP declined to comment, but referred to its CEO's statement last night that the world's top miner will consider acquisitions to add shareholder value.

Extreme Value pick American Express (AXP) will allow cardholders to make monthly mortgage payments on their credit cards and collect points while doing so, a move that the company calls a first for the credit-card industry. PSIA pick American Home Mortgage (AHM) will be the first lender to offer the Express Rewards Mortgage program for eligible prime loans.

Big Trend Report pick Nanophase (NANX) will offer 2 million shares, worth $12.38 million at current prices, to pay for equipment and other expenses. The company also will use the funds to expand its facilities.

Get out your checkbooks... Warren Buffett will auction another private lunch to help benefit the Glide Foundation, a San Francisco charity for the homeless. The seven-person lunch at Smith & Wollensky in Manhattan went for $620,100 last year.

The perfect hedge against the real estate slump... Investor Ron Baron just spent a record $103 million for a 40-acre parcel in East Hampton, New York. Prices in the ritzy beach resort gained 14% in the first quarter as the national median fell. The median price for a home in East Hampton is $970,000 in the first quarter, up from $850,000 a year ago. Total home sales were $300 million versus $216 million a year earlier. The median selling price for homes across the nation was $212,300 for the first quarter, down 1.8% from a year ago.

New highs: Delta Financial (DFC), American Express (AXP), BG Group (BRG), Kodiak (KOG), Marathon Oil (MRO), Oneok (OKE), Petro-Canada (PCZ), Intel (INTC), Verizon (VZ), McDonald's (MCD), Sigma-Aldrich (SIAL), Janus Capital (JNS).

The mail never stops... thank goodness. We can stand being insulted, misquoted and we've always been misunderstood. Just don't ignore us. Send your blasphemy here: feedback@stansberryresearch.com.

"I am writing to come out of the lurking darkness to say I have been a subscriber of Dr. Steve for almost ten years... I find his approach illuminating and instructive. I have made a lot of money, too. So thanks, Steve. Because of you, if I retire, I will do so at least five years earlier than I thought. Teach a man to eat fish, he gets by for one day. Teach a man to fish, well, the rest is history. Thanks for teaching me how to fish." – Paid-up subscriber Thatcher Stone

"I am a 90-year-old man and have no business in this. I once visited a large antique barn in Iowa or Nebraska. There I saw an antique washing machine powered by a goat on a treadmill, with a large basket of corn or carrots, just out of reach. Almost every time I read your e-mails I am reminded of that goat on the treadmill. I wonder if anybody else ever feels like that damn goat." – Paid-up subscriber Lewis Brinson

Porter comment: Great analogy. That's why I recommend you limit the number of investments you make to an amount you can easily understand and track. Remember: Opportunity is infinite, but capital is finite. You have to pick your spots.

"If Tom Dyson needs co-investment capital to buy the David Stott building in Detroit, please let me know. I know nothing about the building, its condition, or even its location. But at $3.9 million, it's a no-brainer – unless it's leaning. I am serious, however. Count me in." – Paid-up subscriber Scott Beall

Porter comment: It's not leaning. Here's a picture.

[Regarding our note on Wagyu brisket] "AMEN! You have revealed the Holy Grail of BBQ." – Paid-up subscriber Kevin Combee

"The only thing I would add to your brisket recipe is in the tenting process. Just before closing the end of the foil, I generally ask to look at the drink of the closest person and then pour half or more into the foil and close it. I am particularly fond of red wine, bourbon, brandy, and rum drinkers at this point. Probably some white lightening would work when you are in Tennessee or some really good Tennessee sipping whiskey. If no one is around, I take along some good bourbon or red wine for the tenting." – Paid-up subscriber "Walt"

"You've described Scott County, TN, perfectly! I am originally from East Tennessee and am very fond of going back to enjoy the genuine hospitality. It is a bit of a rarity for those of us who settled closer to the cities for their careers." – Paid-up subscriber S. Roberts

Porter comment: It's a wonderful, special place... the land time forgot.

"I enjoy your news letter very much. I am a 78-yr.-old grandpa [trying] my hand at investing. I started in Feb. with 5000.00 dollars. So far I have made exactly 0 money in investing. I would be a very happy camper if I could make 1000.00 dollars a month. I need some [counseling] how do I get some. I read every day where people are making thousands of dollars in the stock market. I know I must be doing something wrong. Give me some advice, I know you can't do that but steer me to someone that can. Thank you." – Paid-up subscriber Clarence Hodgen

Porter comment: I don't envy the broker that winds up with you for a client. You're expecting to make 20% per month! Maybe you should look for a Mormon broker... (Just kidding... jeez can't anyone take a joke anymore?).

Good investing,

Porter Stansberry

May 23, 2007

Stansberry & Associates Top 10 Open Recommendations

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