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

Ruby on the loose... A 200-mile bike ride... Another Wall Street "upgrade"... Signs of a market top in China... A huge new gold discovery... We lied?...

"Who's dog is that!?!" An angry, older woman was shouting into the deli where I occasionally eat breakfast. My dog was the only one I'd seen when I tied her up outside the deli... Oh no. Walking out the door, I saw my beloved, one-year-old vizsla, Ruby, running wildly around the parking lot... pulling a bouncing and cartwheeling deck chair behind her. It was impressively chaotic. Cars had stopped. People were staring. As I called Ruby over to me and tried to calm her down, the old woman let me have it... "Who would do that to their dog... That's so cruel... You should be ashamed of yourself... That's the dumbest dog I've ever seen..."

"We're going to fly into Calgary, buy two cheap bikes at Wal-Mart, and then ride over the Canadian Rockies. We'll go through Banff and keep riding until we get to Vancouver." My friend (and colleague) Mike Cottet, whom we affectionately call "Meatball," was discussing his travel arrangements to the next Agora Wealth Symposium. "We'll just get a couple of sleeping bags and camp out on the side of the road, wherever we find a good spot..."

It's a 200-mile ride with constant elevation changes – as much as 7,000-foot hills. And parts of the road are at extremely high altitudes, where it's hard to breathe. Mike Cottet is in very good shape... he might make it. But his plan includes taking Tom Dyson with him. Tom's idea of exercise is playing 18 holes of golf. I put $50 down, on the spot, that Tom won't make it. But Meatball is undeterred...

We'll keep you posted.

Here we go again... Look at this chart of 12% Letter pick McDonald's (MCD). For the last four years, the stock has essentially gone straight up. From below $15 to above $50. But it wasn't until yesterday that Goldman Sachs decided to add the company to its Americas Conviction Buy List. To make room for the burger shop on its "conviction list," the bank removed Starbucks (SBUX), which is trading at 52-week lows – down 25% on the year. We know that investment banks aren't really in the business of providing equity research. Their job is to get the public to buy what their clients want to sell. Nevertheless, we're amazed they do the job with such shameless élan...

Signs of a market top... The upcoming Blackstone Group IPO will use 17 underwriters.

Signs of a market top... China's savers withdrew $36.5 billion from their bank accounts in May, the most ever. Most of that money is flowing into the stock market.

Links to our newest products, The Quant Trader and The Zurich Letter, have been posted on our website.

We wrote it, did you buy it...

I strongly believe that we are in a major commodity bull market, and it could last for many more years. Longtime readers know I’ve been saying this for years, way before commodities hit the headlines. And I love to hear when readers tell me they’ve followed my advice and made millions of dollars. There’ll be ups and downs in commodities of course. And some of these moves will be violent. But the general trend is up, and I expect it will stay that way.

- Steve Sjuggerud, True Wealth, February 2006

True Wealth holdings BHP Billiton (BHP) and Freeport McMoRan (FCX) are at new highs this week, up 63% and 57%, respectively. Just as Steve predicted, they were the safest ways to play the bull market in commodities.

New highs: Schlumberger (SLB), BHP Billiton (BHP), KHD Humboldt Wedag (KHDH), Petrobras (PBR), Freeport McMoRan (FCX), Pogo Producing (PPP), AutoZone (AZO).

It's a classic mailbag. Two subscribers call us liars, one because we maintain track records and another because we grant refunds. Go figure. Send your accusations here: feedback@stansberryresearch.com.

"I noted with interest your claim to always be honest. Is it honest to publish a new letter (Zurich) that has several recommendations? Or how about Dividend Grabber? The first issue listed several recommendations that were made before the letter was ever published. It seems that the initial publication would list one recommendation, the current one. I remember getting the first Medical Investor letter. The portfolio consisted of one recommendation – the one discussed in the initial publication. That is honesty!" – Paid-up subscriber Mark

Porter comment: Mark... you've got it all wrong... The Dividend Grabber picks you speak of were made available to the entire readership of the Digest. We demonstrated how the letter would work... for free. Is that dishonest? In regards to The Zurich Letter... it's a new product, and we're still trying to figure out the name. Previously, it was called The Swiss Letter, and we sent it to all of the S&A Alliance members as we were working on the content, trying to get it right. And... If I can help it... we'll soon change the name of the publication again. I've just remembered that one of our competitors publishes the Zurich Club letter already in Germany.

"Porter, now I'm really pi--ed. For weeks your marketing people incessantly pimped the 'Fraser's Legacy' report and how lucrative investing in 'Prospect Generators' can be. At the last hour, I subscribed to the S&A Gold Report. Much to my chagrin, I quickly determined in the report that to invest in these prospect generators your brokerage account must be able to trade Canadian stocks... I'm not about going through the hassle of setting up a fourth trading account and am on the phone today getting my $500 credited back. I know the game. It's all about getting the initial charge on the credit card and hoping that people are either too lazy or will forget to cancel. If you're going to hype something at least provide full disclosure. In the credit card industry full disclosure is federally mandated. Too bad you don't have to play by the same rules. Bet you don't publish this one." – Formerly paid-up subscriber Larry Herbst

Porter comment: Larry... I'm surprised that among your three brokerage accounts, none of them will trade Canadian stocks. Many discount brokers (E*Trade for example) will, as will any of the Wall Street firms.

We honor refunds all the time. And we've never supposed anyone would forget about a $500 subscription. Far from being a gimmick, we know that some subscribers ruthlessly take advantage of our refund policy, which allows folks to defraud us, if they choose. Nevertheless, if you want your money back, you can have it. I have to tell you though, I think you're making a big mistake...

Badiali e-mailed me this morning (no kidding) about one of those exploration companies in the report. Apparently, it hit a mother lode last week. "It appears to be a huge gold discovery... They found ore grade gold on the surface (you could use a backhoe and dumptruck the soil straight to a smelter). They don't even have a drill on site yet. I get sweaty palms just thinking about it... Here's why: The discovery is on a [well-known trend]. This is elephant country... If the deposit is valued at $50 per oz. [this stock] is worth six times its current value..."

"When you even mention George Soros in the same context as being American, you have lost me. I regret ever subscribing to a publication that even mentioned him as anything but 'Anti-American' scum! Remove me from your mailing list!" – Refunded subscriber Curtis Johnston

"It's a disgrace to do anything with this person, whose goal is to destroy our society and country." – Paid up subscriber G.I.

"Are you really clueless as to what Soros' agenda is all about? Now that is scary! Take me off the list as well." – Refunded subscriber Jim Maggard

Porter comment: Like I explained yesterday... we've cited Soros' ideas about investing because he's made billions in the world's markets. We don't endorse... and have always ignored... his political views. Reading a bit more about Soros' world-saving agenda, we think his ideas are as dumb as the rest. But, then, saving the world isn't our beat. We're interested in the déclassé goal of making money.

"Porter... why waste time and pollute the environment trying to BBQ some chicken. Just head on over to Costco, and for around 5 bucks, you will have the best BBQ chicken this side of heaven. The time would be better spent trying to come up with some 'HOT' stock picks and not those Turkeys you have been 'cooking' up for us...!" – Paid-up subscriber Peter Hansen

Porter comment: I promise... I only grill on my own time.

"I personally think that Porter should quit bantering with those close-minded 'self-promoted' financial geniuses (or at least they think they are). You can't change their mind because most come from the type of person who thinks he is always right and everyone else is wrong. Mr. Porter, spend your time and energy communicating with those of us who respect your talents, experience, and abilities. I know you're not perfect, but I highly respect your insight and advice that I have humbly accepted." – Paid-up subscriber Jim Evans

Porter comment: I'm flattered by your comment, Jim... and I'll do my best to deserve your trust and respect.

"I've been a faithful follower of Steve's True Wealth publication for some time, with very positive results. I now see that Steve has come out with the Sjuggerud Confidential, yet another investment newsletter. Does one replace the other? And, if not, which publication gets which investment advice? Is True Wealth still a reliable if not complete investment advisory? And, if we all sign up for the Confidential, will there in time be a third one coming out? Do you see where I'm going with this?" – Paid-up subscriber Bob Baal

Porter comment: Steve has been writing two letters for years. Three years, I think. Both letters contain Steve's best ideas and use Steve's reliable strategy. The only real difference is that one (Confidential) typically covers small-capitalization stocks that simply can't be publicized to a large audience.

"I understand you are heading to Ireland to play some golf with family and friends? If I wasn't traveling to Toronto to spend next week on a family fishing trip, I'd invite all of you over for a cold one at the local pub. However, if by chance you make it down to Kinsale to play the Old Head, like the rest of the 'rich' Americans, there are two restaurants that I'd highly recommend. Toddies, located in Kinsale and Casino House, which is located between Ballinspittle and Kilbrittain (just West of Kinsale). Both establishments offer fresh local catch of the day and other fabulous dishes to tempt the palate." – Paid-up subscriber Kent

Porter comment: Thanks, Kent... sorry to miss you. We'll let you know how our trip goes.

"I have picked several stocks to try and get into the market slowly only to loose my shirt!! I know 'cherry picking' is the wrong approach but I thought I was being smart by slowly getting into the market since I lost my shirt during the Internet bubble. I want a very safe and conservative approach. I am 20 years from retiring, so would you recommend sticking to your 'S&A 16 Model Portfolio' or go with your new 12 Stocks To Retire With? If you had to only pick one, which one would you pick?" – Paid-up subscriber Walter Bushie

Porter comment: Well... I know you'll think I'm only dodging your question... but we honestly aren't allowed to give any individual investment advice. The government forbids it... because unlike Wall Street's firms, we can't be trusted...

In any case, if you have access to our S&A 16 and our newest report 12 Stocks to Retire With, I suggest you buy the stocks that you think are safest. You might also read what I wrote to another subscriber six months ago about how to begin using our information.

The most important thing is learning how to avoid losses. You do this by sticking with the most conservative recommendations at first. Most new subscribers do the opposite... they buy the sexiest, most exciting recommendation we offer, and nothing else. If it doesn't work out (and often it won't, if it's a speculation), they blame us for leading them astray. Never mind we said "don't buy more than 2% of your portfolio" and never mind we said "cut your losses..."

Regards,

Porter Stansberry

Cockeysville, Maryland

June 14, 2007

Stansberry & Associates Top 10 Open Recommendations

Stansberry & Associates Hall of Fame