The S&A Digest

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

As of 06/27/2013

The wisdom of the Gambler... More signs of a top... Moody's takes a hit... Jeff wins the silver... You've got the wrong caviar...

Aboard the Gambler yesterday, about 25 miles east of Cape Hatteras, the so-called 'Graveyard of the Atlantic':

"Hey Captain... the Dow just crossed 14,000... "

"Aw, heel... I don't own no stocks. Hadn't bought none since they took all my money back in '01. No, these days, me and the missuz, we got houses. Six of 'em... They ain't making no more land, especially out here. As long as they stay rented, we can't lose..."

Signs of a market top... After announcing estimate-crushing earnings, shares of Intel, Merrill Lynch, and JPMorgan all went... DOWN.

Signs of a market top... Bear Stearns announced that investors in its $638 million High-Grade Structured Credit Strategies Enhanced Leverage Fund will lose all of their invested capital after banks forced Bear to sell the fund's assets at a deeply discounted price. Bear Stearns has a second fund that invests in subprime debt. It's unclear if investors in that fund – which has "very little value left" – will get anything back... But the bank is covered. The second fund scrounged up just enough to pay the $1.4 billion it owes Bear Stearns. Sounds fair to me.

Rupert Murdoch is one step closer in his quest to own The Wall Street Journal... The Dow Jones board approved his $5 billion bid. Now the fate of the company lies in the hands of the controlling Bancroft family.

PSIA pick Anheuser-Busch (BUD) will be the sole distributor of Icelandic Glacial super-premium spring water in the U.S. BUD has taken a 20% interest in Icelandic Water Holdings as part of the agreement.

Signs of a bottom in REITs... REIT insiders have bought $60 million of their companies' stocks in the second quarter... the most in 26 quarters.

Debt-rating company Moody's is taking a hit for its tough stance on lax lending. Moody's was passed over (or not hired) for 75% of the commercial mortgage-backed securities ratings assignments over the past few months. Again, we touch on why Wall Street is so crooked... The mortgage industry is blackballing Moody's because it is trying to protect you... the investor.

New highs: FLIR Systems (FLIR), Intel (INTC), Janus (JNS), KLA-Tencor (KLAC), Southern Copper (PCU), Pozen (POZN), Pogo Producing (PPP), SK Telecom (SKM).

Still more "who's the best." Tell us what you think at feedback@stansberryresearch.com.

"Jeez, Porter, how can you justify divulging Medical Investor's May pick when it's barely eight weeks old? (Sorry, I know I've harassed you about this before). It's just recently fallen back into Rob's suggested buy zone. You have been guilty of this more often lately for some reason. I don't understand. It would seem not to be a good tactic for selling subscriptions since it is similar to the 'free lunch' you mentioned in the Digest a few issues ago as being a poor marketing tool – why subscribe when you can get it for free? At this rate, an enterprising and patient person could glean enough recommendations from the Digest to do quite well. Here's a novel marketing suggestion – maybe you should charge non-newsletter subscribers a small subscription fee for the Digest – It's informative, has potential to make money, and, above all, it's entertaining (more so than many of the rags flying off magazine racks)."

– Paid-up subscriber Gary S.

Porter comment: We use the Digest to keep folks updated and informed about our coverage universe... and of course... we hope these updates also serve to interest our subscribers in reading more of our letters. We know the name of a stock isn't enough information, for most people, to make a serious investment. That's why we don't worry about people digging through our marketing to figure out a few of our recommended stocks. Those folks are spending hours of time to save $99... they're not the kind of investors we're seeking to serve. While everyone is welcome to subscribe, we're actively looking to serve people who want us to do the research for them and who appreciate the enormous value of what we provide.

Regarding selling the Digest... no way. That would make writing it feel like a job. As things stand now, at least I can tell people it's worth every penny you pay for it.

"I have been a long-time subscriber going back to the early years of first, you Porter, and then gradually working with some of the others in the Stansberry crew until I saw the light and took the Alliance plunge awhile back. First we (my wife and I) have made tons of money off many of your recos, so making this decision was not exactly rocket science for me. I have watched over the years as you, Porter, 'evolved' and I don't know of a better way to phrase that... as an investor and mentor. I admire your candor and what I perceive as your honesty as a person." – Anonymous

"While my loyalty lies with Porter, my money moves to Ferris. Dan is the only analyst whose word is gospel in my house. If he were to say buy 'dirt,' I would get a dump truck, back it up, and fill it up. When Dan finally closes his open positions, if ever, the 'Stansberry & Associates Hall of Fame' will be renamed the 'Ferris & Associates Hall of Fame.' Well, maybe it should be the Stansberry & Associates Hall of Dan. After all, Porter did give this guy a chance."

– Advisory Board Member Mark Tobino

Porter comment: Hold on there, Tobino... As things stand right now, ol' Stansberry still dominates the Hall of Fame – with seven out of the 10 slots. And, who knows how many big new tech and biotech picks I might buy and sell before Dan sells anything? I plan on giving all of these guys a run for their money.

"My choice is Badiali. You can take his recommendations and make a pie chart with each recommendation having equal investment; then all you have to do is throw a dart and you have your choice for your next investment... Nobody knows all there is to be known in oil-related stocks, and having the S&A Oil Report with Badiali sure helps. I keep more than 50% of my investment in the oil-related stocks. I have them in [businesses] from ships to gas stations. It has worked for me, and I do not expect to change." – Paid-up subscriber Oscar

"I have repented of my weak ways and saw the error of my mistakes. At first, I subscribed to 3 of your publications... In time I added the S&A Gold Report. But this is where I sinned and faltered... I joined The Oxford Club. I was not pleased with the 'style' and 'quality' of their reports as I came to enjoy and expect from Stansberry & Associates. As I said, I have repented of my ways and have joined the ranks and file of the S&A Alliance. So to all your associates, I want to say 'Thank You' for your efforts in putting together your various reports." – Paid-up subscriber Bill Moss

"Steve is the best one I have seen. Jeff is great as well if there is a silver medal." – Paid-up subscriber Tony Qi

Porter comment: Nobody around here wants to win a "silver" medal. We'll be teasing Jeff about his award for months.

"I thought Dan's July 2007 letter was as close to perfect for an investment letter as I could ask for. No hyperbole – just facts and reasoning. I really liked it. I also like Steve and Matt's work a lot, too. In fact, I generally like the work of most of the analysts at Stansberry Research. The only one that I think frequently shoots from the hip and indulges in way too much hyperbole is Porter. There is far too much arrogance in all of his writing, which probably reflects his personality. Porter, learn to tone it down and dig a little deeper for facts. I'm not buying the hype." – Paid-up subscriber Jeff Blake

Porter comment: I agree with you completely about Dan's work... though I personally think Steve Sjuggerud's June 2007 Sjuggerud Confidential ("And the Next Seabridge Is...") was the single best newsletter we've ever published. It had all of the great elements of our genre: an unknown investment idea, thoroughly researched, complete with details previously unrecognized by the public, and delivered with suspense and tense, focused writing that's very easy to read. I also know that Steve wrote it, in one draft, in a motel room in Iceland after spending a full day with his tour group.

"Porter, I'll vote again: for (1) Ferris; (2) Matt the Oil Guy. Of course, if there were a chutzpah category, you'd win, hands down." – Paid-up subscriber TIA

Porter comment: I don't know what you guys are talking about... My wife is always on my case because I'm so shy...

"How come when I try to go to the website www.pirateinvestor.com I get nothing?" – Paid-up subscriber Richard Ruocco

Porter comment: Beats me. Our website address is: www.stansberryresearch.com. It has been for three or four years now. "Pirate Investor" was our former name.

"'Caviar – king of the rednecks.' Us rednecks here in Harlan, Ky., up the road a right smart piece from Smith county cain't pronounce 'caviar,' let alone raise it. And why would any sensible human being grind up calf liver and put it on devil eggs. Besides calf liver is better with gravy and onions. Claude said to tell you that your taste buds are warped." – Paid-up subscriber Kain

Regards,

Porter Stansberry

Cape Hatteras, North Carolina

July 18, 2007

Stansberry & Associates Top 10 Open Recommendations

Stansberry & Associates Hall of Fame