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"The chief risk is paying too much for mediocre businesses during generally prosperous times..."
Benjamin Graham, 'The Intelligent Investor', 1949
Benjamin Graham, 'The Intelligent Investor', 1949
How to Buy
Better Stocks
Better Stocks
Question: What's the point in investing?
(If your answer matches mine, the information in this letter could make you a small fortune in 2010...)
(If your answer matches mine, the information in this letter could make you a small fortune in 2010...)
Dear Friend,
"I'm eager to invest - but I don't know which stocks will make me rich!"
If I had a dollar for each time I'd heard that I wouldn't need to play the markets myself!
But what if I told you there IS a way to determine which Australian stocks have the potential to make you a lot of money, and which you should walk away from?
I'm not talking about Elliott Wave, Cycle Theory, Fibonacci or any other complicated trading technique. This doesn't involve crystal balls, smoke signals, tarot cards or any other mumbo jumbo.
It's a simple, proven strategy that targets a very specific kind of Aussie stock.
To me, these little-known companies seem virtually "programmed" for profits. As you'll discover, people who have bought these stocks at the right time have made a fortune.
These stocks tend to lead the Australian market when it's rallying. Many of them thrive even when the wider market goes through a bad patch.
I call these "better" stocks.
In the next five minutes I'll reveal how this strategy works... and give you the detail of three "better" stocks you can buy now and tuck away for 2010.
If you want the chance to make big money from small stakes, forget property. Forget the Melbourne Cup. Forget the pokies or the lotto. Buying the right Australian stocks at the right time is the best chance you're ever going to get of making a big chunk of cash.
Most people realise this. But when the vast majority of new investors come to actually buying shares, something strange happens...
Somewhere along the way, the excitement of getting rich gets overtaken by the fear of losing money. So most people end up buying shares in Telstra, Myer, David Jones and BHP Billiton.
Now, there's nothing wrong with these companies. They are "safe bets". They're Australian institutions and household names. They're not going to go broke. They may even make you a few bucks.
You can buy these stocks and feel fairly happy with yourself. But you can forget any ideas you have about sports cars, yachts, early retirement and luxury European holidays.
To make life-changing money from investing you need something else. First you need to be prepared to take a few more risks. Then you need an advantage like the strategy I'm going to tell you about today.
This strategy is surprisingly simple - but it's something the vast majority of investors overlook.
I know it seems crazy, but some are just too lazy to search for "better stocks" - the kind of opportunities I dig up regularly. Others overlook them because they're not really sure what they're doing.
The vast majority of Aussies end up investing "by default". The big corporations they hear about on TV or talked about by friends; these are the stocks that come to mind when they're ready to buy.
Like I say - there's nothing wrong with these companies. These are GOOD stocks. But there are BETTER Aussie stocks out there. Stocks that, to me, seem "programmed" to generate bigger profits. Let me show you two...
Rio Tinto is a GOOD stock.
As you can see in the table above, had you bought shares in Rio in December '08, you'd have made a 82% profit thirteen months later.
Granted, you wouldn't have got anywhere near that from the bank. But with just a little extra research, you could have saved your money and bought shares in a tiny, virtually unheard of firm called Riversdale Mining instead - same industry, much smaller profile.
Instead of a 82% gain, you'd have made 247% - well over double your money - in the same period of time.
Riversdale Mining is, in my opinion, a BETTER stock.
BHP Billiton is another GOOD stock. Everyone's heard of them. Millions own shares in them, either through their super or off their own bat. And why wouldn't you? BHP is an Aussie legend.
Well let's take a look: had you bought BHP shares in December 2008, and sold them in November 2009, you'd have made a 37% gain.
That's respectable - but you could have done better.
Had you sunk the same amount of cash into Brockman Resources instead, your return would have been 435%.
Brockman Resources is, in my view, a BETTER stock.
Let me be clear: I'm not saying Brockman is a better company; certainly not as well known as BHP. But I don't care about that. I invest to make money. I want to buy BETTER STOCKS.
That's the point I'm trying to get across to you: you can invest in all the household names you like. But if you can stomach a little more risk and buy what I call "better" stocks, you'll make more money.
It's like legendary investor Warren Buffett says: "Always invest where you can make the most impact". That's what I like to do.
In the example on the previous page, the GOOD stocks made a return of $1,596 in thirteen months from stakes of $1,000. The BETTER stocks made $4,408 - almost three times as much.
Now let me ask you: wouldn't you like a handful of "better" stocks in your portfolio?
Well sit tight. Because in a moment I'm going to give you three brand new "programmed for profit" pearlers to buy now and tuck away for 2010. Each one has the potential to triple - perhaps even QUADRUPLE in value - in that time.
You wait and see your friends' faces when they compare their "blue chip" returns to your gains this time next year!
Better still; grabbing a decent sized stake in these "better" stocks will not break the bank.
You won't pay more than two bucks a share for any of them.
Before we get into all that I want to let you in on a secret that could make 2010 the most prosperous year of your investing life...
The best way - comfortably - for ordinary Aussies to make life-changing money is through a few targeted "punts" on a selection of small, virtually unknown, home-grown resource stocks - preferably before the "herd" hears about them.
The Australian resources sector is the ONLY place I look right now for unheralded gems that have the potential to make huge returns.
Australia is an investor's dream at the moment. We've got all that coal, uranium, gold, iron ore and gas buried under us and China and India fighting for it! Seriously, if you're an Aussie with a few hundred bucks to spare you're in one of the most privileged positions in the world right now.
I'm guessing you know that already. What you don't know is the names of the stocks that are primed to take full advantage of this huge opportunity. Let me tell you how I find them...
My job is simple to explain: find great stocks with huge potential. Buy them while they're cheap. Watch them fly. Sell them when they're expensive. Bank the profit.
It's not quite as simple to do - but here's the thing: you don't have to be a geologist, former BHP employee, or mining "insider" to uncover these superstar resource stocks-in-waiting. I can tell, pretty much, whether a stock is worth a punt by looking for a few "tell-tale" figures on its balance sheet.
If I like what the numbers tell me I'll carry out a full financial analysis on the company. There are eight things I look for at this stage that will make a stock a better bet for investment. When I find a firm that ticks all eight boxes, it's like the profits are "programmed in".
All you have to do at that stage is buy. Then sit and wait.
This is how I can help YOU make money from investing.
I'll go into more detail about what makes a "better" stock shortly. More importantly, I'll tell you about three small Aussie resource stocks my technique has flagged as ‘ready-to-fly'.
Buy them and I'm pretty sure you'll have cause to thank me many times over this time next year.
We'll get to the nuts and bolts in a tick. Right now you're probably wondering: if I only look at potential investments from an analytical point of view...
Let me put it like this:
If you're a crocodile, you swim along the river to where the antelope cross. If you're a seagull, you fly to where the fishing trawlers launch, follow one out to sea at 4am, and hover above it.
I turn my attention to where the best moneymaking opportunities are, pure and simple.
Right now, they're right here in the Australian resources sector.
I'm going to show you in a moment how I identify, and evaluate those "better" stocks that can literally turn a few bucks into a second home... a HSV Clubsport R8... or early retirement...
Here are four resource success stories from 2009. Imagine I'd told you about these stocks when they were selling for peanuts:
How tempting would that trip to Europe have sounded if you'd chucked a few dollars behind this quartet of Aussie beauts?
I'm telling you - the Australian resources sector is TEEMING with these kinds of moneymaking opportunities... and you probably never realised half of these firms existed.
Rest assured - the money they've made for investors is very real. In fact, buy a stake in the right patch of land in Australia in 2010 and you can end up richer than you ever imagined...
The BRW Rich list used to be dominated by media moguls, entertainers and bankers. Murdoch, Packer, Stokes and the like.
Not anymore. In 2008 Andrew Forrest became Australia's richest man. He's the CEO of Fortescue, the country's third largest producer of iron ore. Since Fortescue shipped its first tonnes of iron ore in May ‘08, Forrest's personal wealth has crept towards A$5 billion.
That shows just how much money is being thrown at Aussie resources right now... and how absolute fortunes can be made by those who target the right investments.
Google that BRW rich list when you get a moment and see how many multimillionaires have been created by the discovery of - and demand for - Australian resources.
Then read their stories. You'll be surprised. Coal tycoon Nathan Tinkler, worth $440 million, started out as a trainee electrician. Mining entrepreneur Terry Streeter, worth $250 million, was a "£10 pom" who scraped together his first $700 to invest in a gold mine.
These are regular people. What sets them aside from the rest of us is their understanding of a basic entrepreneurial fact:
Find the right asset, at the right price - before anybody else does - and you can make a terrific amount of money. In fact, it's almost impossible to NOT make money.
These people have all gotten rich thanks to Australian resources. Sure, they've taken risks with their capital - as you will have to if you REALLY want to make money. But the biggest punt they took was on themselves.
In true Aussie tradition they backed their
own judgment. Having the confidence to do
that is what will ALWAYS separate successful
investors from the ‘also-rans'.
None of these millionaires thought they could get rich by throwing their money behind those same ASX200 blue-chip stocks everyone else buys with their eyes closed. They cast their net wider for profit opportunities in a sector they knew was booming.
Now I'm hoping I don't have to convince you of the potential for big profits in the Aussie resource sector! I'm assuming you know there's money - big money - sloshing around in resources... with more set to flood in.
Your dilemma is two-fold: 1) how do you divert some of that money your way? Where do you find those stocks that will go up 5-to-1, 6-to-1... even 10-to-1, quickly? And...
2) How do you make sure you don't invest in a firm that's just going to dig a big hole in the ground? They're not ALL winners!
Most Aussies will err on the side of caution and buy well-known miners BHP and Rio - then forget about them.
Well, any fool can join a parade that's already started. Owning these stocks is not the best way to get rich from resources.
You don't need to own land, either...
The secret to making a lot of money from Aussie resources is in buying a handful of small, "primed-for-profit" stocks - before anyone else gets to hear about them.
Bottom line: as long as China, India and the developing world needs Australian natural resources, the few companies who control the supply of these resources will continue to get rich, and make investors rich.
You already know this.
The only thing stopping you from getting your share is the right information at the right time, and having the confidence to back yourself. That's where I come in...
My Name is Dr. Alex Cowie. I'm editor of Diggers and
Drillers, Australia's premier resource stock tip sheet.
I'm also not the guy you want to be sat next to at a dinner party.
Why?
Because you'll ask me what I do, and I'll say "I'm a financial analyst" and the conversation will grind to a halt.
Which is a shame, because then I wouldn't get to tell you how I identify "better" stocks to invest in!
A few years back, before the last commodities boom, I decided to find out whether it was possible to "read" the moneymaking potential of a stock from looking at its balance sheet.
I'm talking about things like debt, money in the bank, market capitalisation, cash flow, income, operating capital - and the complex relationship between them all.
These are things other private investors consider "boring" and subsequently ignore.
My aim was to see whether I could identify the ‘X' factor that turns a good company into a rip-roaring investment... to see if a picture emerged from these figures that suggested a particular stock had a better than average chance of doubling or tripling in short order.
This kind of "forensic" research is particularly valuable in a growing market like the Australian resource sector.
There are hundreds of tiny mining firms worth looking at down under, but not every one has the potential to make you a big return.
To me, the one thing worse than making a bad investment is making a mediocre one in a booming market!
That's why I spend time scrutinising a small resource firm's balance sheet. And it's why I introduced an 8-stage checklist for determining whether a stock can be recommended in Diggers and Drillers.
Many people would find this kind of analysis boring, but I enjoy it.
The question you'll probably want answering is: does it work?
Well, the stocks recommended by Diggers and Drillers in 2009 are outperforming their relevant market sectors by 40.1% on average.
And our readers seem to be happy...
Kieran M emailed recently to tell us: "I'm on the way up with very nice profits. I will have paid for my D and D sub for another 75+ years when I trade out again."
Subscriber Don L told us: "Diggers & Drillers provides by far the best means for keeping up with things that I know. I will be continuing my subscription on an annual basis. You may quote this just as loud and long as you like!"
Bottom line: I've developed a method of analysing a resource stock so that I can tell you with a fair degree of confidence whether it's worth a punt or not.
And now I'm going to share it with you.
First you must focus on the right commodity at the right time.
I look at the wider picture to see what's being pushed up by the market. Platinum is a great example.
The platinum price has risen steadily in the last 12 months. Strong demand for platinum and a very tight supply has pushed prices up and is expected to keep doing so.
Then you determine that the commodity has a promising future.
For example, Asia has a rapidly growing demand for liquefied natural gas. Australia has an abundant supply and is right on the doorstep.
Finally you target where you can invest to make the biggest impact. This is KEY.
If you take the advice of financial planners, the media or friends, you'll most likely end up investing in Rio, BHP, or Woodside Petroleum. All GOOD stocks, remember!
Or if you don't buy one of those big names, you'll probably invest in what's called an "Exchange Traded Fund". That gives you a basket of industry stocks with one single investment.
Doing this won't give you sleepless nights, but your returns will track the index, at best.
You may decide to invest in the underlying commodity - which is fair enough, but it's still not the best way to make money. Why?
Simple: you don't get any leverage when you buy a physical asset.
Gold, Copper, Iron ore - these are NOT going to go up five or ten to one in a year.
A small mining stock can go up that much in a WEEK.
It happens all the time without you ever realising it.
Please understand:
Today, if you'll give me the chance, I'll prove it to you...
I've picked out three small Aussie resource stocks that are getting virtually no coverage at the moment.
I've run the numbers on each firm, sat for hours and pored over their balance sheets. I've assessed their existing and future projects, and how they're going to fund them.
These three stocks are the real deal. They look "programmed for profit". I think this is a great opportunity to double your money - at the very least - by this time next year.
I'll tell you about them - and give you an idea why each one is such a strong buy for 2010 - in just a moment.
Then, if you're interested, I'll send you all my research on these stocks for FREE. You'll get the full deal: everything you need to invest - name, ticker symbol, profit target - the works.
If you've been waiting for the right Aussie resource investment opportunity, you will not get a better chance than this.
You can pass it up if you want, but I'm telling you: you won't get rich investing in the same resource stocks everyone else does at the same time everyone else buys them.
You might make a little money - if that's all you want, that's fine.
But the only stocks going up 5-to-1 and 10-to-1 in Australia are these little mining firms. They go up because they find something and it's worth a lot of money.
Simple, huh? The tricky bit is discovering and buying the stocks that are sitting on something valuable before other investors.
You can try that on your own if you want.
But what I'm saying to you today is: you don't have to!
I'll send you my report: "3 Cash Rich Aussie Resource Stocks You Must Own Now" - free of charge. Details on how to get your hands on a copy coming up...
Remember - this strategy WORKS.
Let me show you.
Take a look at the stocks in the table below. We told Diggers and Drillers readers about these over a year ago in December 2008. I checked on their progress again in January 2010.
Look at what happened to them...
These tiny stocks all had one thing in common... something the average Australian private investor wouldn't think to look for in a million years.
In the middle of the worst financial crisis for a generation, they had cash. Bags of the stuff.
It was right there on their balance sheet for anyone with half a brain to see.
In fact, they were the five best "cashed-up" small-cap resource companies around in December 2008. And that screamed "BUY!"
It was a "no-brainer".
You see, before September ‘08, many small Aussie miners had been reliant on credit to explore and drill for their resources. When the financial crisis hit and banks reined in their lending, lots of these firms struggled. Without cash to explore or mine, production slowed. Their share prices plummeted.
It wasn't a great time for a small mining firm to be in debt. And it wasn't a great time for you if you'd invested in credit-hungry resource firms without doing your sums.
But if your resource company wasn't reliant on credit to run its business - if it had its own money in the bank, like the five stocks we covered in Diggers and Drillers - it was "business as usual".
As you can see from the table above, we took a hit on one of them - which leads me to something important...
I look mainly for stocks that sell for under two dollars a share. Why? I like to invest where I can make the most impact.
It's easy for a two-dollar share to become a four-dollar share. That can happen in a day. When it does, you double your money.
But while each stock I tip has to pass
my 8-step screening process, there are no
guarantees. These shares are risky. Because
they're cheap to buy they can be volatile.
A lot of these tiny companies are explorers. They could be sitting - literally - on gold... or it might just be a big patch of red Aussie earth. That's the risk you take when you invest in small resource stocks.
You need to trust me and follow my advice to the letter - which means buy at the target price and sell when I instruct you to.
I think I can help you make money - good money - from this kind of investing. But they won't ALL be rocket-to-the-moon winners.
If that doesn't work for you, it's better we end things here. I'm looking for investors who don't mind taking a few risks with money they can afford to spare. If you'd rather stick with what you know, thanks for your time and good luck with your investing.
But if you can see the value in what I'm saying... you're comfortable with a little risk... and you want to invest in "better" Aussie stocks before the mainstream... you'll want to get hold of my 2010 research: "3 Cash Rich Aussie Resource Stocks You Must Own Now".
I'll explain exactly how you can get your hands on a free copy of this report in a moment. First, let me tell you a little bit more about the three stocks I've found...
Stock number one focuses on small mines that can quickly be taken to production. It invests mainly in base metals, copper, nickel and natural gas with interests in Adelaide, Queensland and West Papua.
This firm has cash reserves of $143m, and liabilities of just $16.6 million. That means net cash is at least $126.4m.
That's good. REALLY good. The strategy for 2010/11 is to develop its 100%-owned gold and copper project just outside Adelaide.
The resource is over 30 million tonnes, containing 292,000 tonnes of copper, 191,000 ounces of gold, and 3.3 million ounces of silver. Production is expected within 12 months.
The numbers virtually LEAP off the page with this one. It has strong net cash, a large good quality reserve with proven infrastructure, and is expecting production any day.
With record demand for copper, this stock is capable of producing exceptional profits. I'm expecting it to double AT LEAST in 2010. With the share trading around 40 cents currently, the time to buy is now.
My full research on this healthy little company is in your free report: "3 Cash Rich Aussie Resource Stocks You Must Own Now". You'll be able to grab your copy in just a moment.
Your second cashed-up buy for 2010 is a small uranium exploration company with 4,000 square kilometres across seven tenements in The Northern Territory.
Even though it's holding cash of just $4.46m, its market cap is just $6.9m, which gives it a high cash : market cap ratio. The company has liabilities of just $19,000. So its net cash is $6.9m.
The market cap is low because the share price is hovering around the 20 cent mark. It's another speculative one, so be careful about how much you pour into it. But I think it will give you plenty of reasons to be cheerful as we move through 2010.
Buy now and you're basically getting a cash rich, ground floor Aussie uranium play. The credit crisis deferred investment. There will likely be a reduction in supply followed by a spike in price. Uranium is expected to reach $60/lb or more over the next two years.
That will help this firm. As will China's growing interest in securing Uranium for the many nuclear reactors it needs to meet its rising energy demands.In recent weeks potential Chinese partners have been knocking on this company's door.
An expected resurgence in the uranium market is reason enough to invest in this firm. But the best stat hidden deep in this firm's balance sheet is this...
At its current spend rate, the company should survive without profit for 25 years! But I don't expect it to have to. If all goes to plan for this stock, I think you can double your investment - comfortably - by Christmas 2010...
While all the investor attention has been on gold – and rightly so – I've been quietly focussing on another ultra rare metal; one that's in even shorter supply than its yellow cousin.
This metal makes up just three parts per trillion of the earth's crust. If you took the 6,000,000 ounces mined worldwide in 2009, it would just about fill a Holden Barina. And seventy five per cent of the world's supply comes from one place; the Bushveld complex of South Africa.
Your third cashed up Aussie-listed stock is right in the thick of the action. It is sitting on the largest undeveloped deposit of this metal in South Africa. It plans to turn this underground bounty into a large productive mine, starting mid-2010.
I can't tell you how excited I am about this firm. It carries no debt, and is highly leveraged to the price of the underlying asset – which is in huge demand from Auto manufacturers, primarily in China.
Better still, there is a very strong possibility of a major global miner partnering up with this company. It has pledged to cover the capital costs of getting the mine up and running.
This stock is way under the radar right now – because the metal it deals in isn't getting much attention. That gives you a window to get in while the share price is hovering around the 60-cent mark.
If all goes to plan, this brilliant company will shoot for the moon. I can see this highly investable stock rocketing up to $2.50... maybe even $3.00 within two years – which would give you a 400% gain... provided you got in quick.
If you want in, you'll need a copy of my exclusive briefing: ("3 Cash Rich Aussie Resource Stocks You Must Own Now.")
Investing in these three "better" stocks is as easy as buying a loaf of bread in Coles. Just grab a copy of my report: "3 Cash Rich Aussie Resource Stocks You Must Own Now", read my research and if you like what you find, call your broker if you have a trading account, or go online and set one up easily in minutes.
The only thing I ask in return for this research is that you take a no-risk 30-day trial subscription to my monthly share tipping newsletter: Diggers and Drillers...
When I say "trial", I mean it. If you don't like my analysis, we simply part ways. You won't owe me a cent. And you get to keep my 2010 stock report with my compliments, whatever you decide.
Accept my offer today and here's what will happen...
In the next month (and hopefully after that if you choose to stay on as a subscriber) I'd like to send you a summary of my most exciting resource stock tips, along with details of the action you need to take to get a stake in them.
I'll give you at least one brand new Aussie resource share tip in each monthly Diggers and Drillers issue, with an explanation of why I believe it's "programmed for profit".
I'll tell you what the risks and rewards are, what price to buy at, and what I think is a realistic profit target based on my research.
I'll also update you each month on the progress of your existing Diggers and Drillers shares; and tell you whether I think you should buy more, sell your shares, or hold your position.
In addition, you'll get a private weekly email from me where I pass on time-sensitive tips, advise changes to your holdings, plus reveal details of other stocks that are on my radar.
Look, I think this is the most exciting, most potentially profitable kind of investing in the world right now. And you're in exactly the right place to take advantage. You may never get a better opportunity to make this kind of money. Provided you pick the right stocks, there's nowhere else on Earth you could grow an investment three or four times over so quickly.
I'm confident you'll see what I mean when you start receiving my research and stock tips. That's why I'm prepared to offer you a very special, no-quibble guarantee...
Click here to claim your 30-day risk-free trial subscription of Diggers and Drillers today and I'll send you your free investment report: "3 Cash Rich Aussie Resource Stocks You Must Own Now".
Have a good read. Study my analysis. If you're not ready to take a punt on these stocks, that's fine. Just "paper trade" the tips during your trial to see if I'm as good as my word...
Here's the deal: if my report, or your first issue of Diggers and Drillers doesn't match your expectations, if you can't see yourself making good money from my resource stock investing service, call my member services team on 1300 66 74 81 within that 30-days and they'll refund you, in full, no questions asked.
No one will give you the third degree. And all the materials I send you during your trial are yours to keep.
Listen, if I'm wrong, you haven't lost a cent of your money.
But If I'm right, you'll have made a profit - maybe a handsome one - and I'm hoping you'll stay on as a regular reader and join me in plundering this tiny end of the ASX for huge profits while 99% of Aussie investors plod along, doing what they've always done.
You have to admit that's a pretty decent offer. But don't make any decisions just yet. There's something else I want you to have.
Click here to claim your 30-day risk-free trial subscription to Diggers and Drillers today and I'll send you a bonus briefing - free of charge...
Have you been watching the oil price recently? I have. It's worryingly erratic.
Crude spent much of 2009 below $50 a barrel. It rocketed up to $73 in June then plunged back to $58 the following month. In November oil traded back up at $80.
Something's going on. My biggest fear (and you should read the worrying research in my report that backs this up) is that the world is much closer to running out of oil than official estimates admit. I reckon we're headed back to $100 oil - maybe even higher - DEFINITELY within the next six months.
This will be bad news at the petrol pumps. But it's great news for canny investors who prepare their portfolios now...
I've run the numbers on four tiny Aussie oil and gas stocks that stand to benefit hugely from the coming rebound in oil prices. These include Australia's best LNG stock, a fantastic, little known African / Aussie uranium play, and two explorers looking to strike it big.
These four energy picks could double, maybe triple your money over the coming year.
I'll show you how to get your stake in them in your bonus report: "The Long Aftershock": your second swipe at triple-digit energy returns.
Two big stories dominated the investment landscape in 2009. Oil was one. The other was gold. Now you may be thinking you've missed all the profits from Gold's recent record run. You haven't...
Sign up for a 30-day trial of Diggers and Drillers in the next seven days and I'll send you a second, exclusive report - for free.
As gold has crept up to and over the US$1,000/oz mark during this global economic crisis, you might be wondering if it can go higher.
The answer is MUCH higher. Right now, central bankers are warning of deflation. But I believe huge borrowing programmes by the U.S. Federal Reserve, the Bank of England, and the Bank of Japan will lead to inflation in 2010. As paper money loses its value, investors will increasingly turn to gold - and that will push its price up.
If you haven't done so already, NOW is the time to prepare for that scenario by investing in a selection of gold stocks. As you'll read in your second bonus report, Australia has some really good ones...
You'll discover what I believe are Australia's four most primed-for-profit gold stocks right now... and why they stand to benefit from growing global demand and increasing inflation in 2010.
Prepare to be surprised. These four undervalued firms are as Australian as the Boxing Day Test and billy tea. They're listed in Sydney, but their mines are not in Australia.
That gives them a HUGE advantage, which you'll learn all about in your second bonus report: "Gold Mania 2010": 4 undervalued gold stocks to buy now. Here's how to get your copy...
To claim your 30-day trial of Diggers and Drillers, click here and complete the short application form.
As soon as I receive your order, I'll send you details of my 3 best "cashed up" Aussie resource stock tips for 2010... You'll also get my report on 4 special Australian energy stocks that stand to benefit from increased oil volatility over the next 6-12 months... Plus, you'll get 4 unique ways to play the 2010 gold boom.
That's eleven "better" stocks in total to buy now and tuck away. Each one could double... even triple your money by Christmas 2010.
Your 30-day no commitment trial of Diggers and Drillers will also begin. Remember: you don't enjoy my research, for whatever reason, let me know and I'll send your money back. How does that sound?
I'm guessing you have a question...
If you're interested in investing in Aussie stocks, and you're considering getting help, there are a number of options out there.
The Rivkin Report will set you back $899 a year... The Intelligent Investor costs $545 a year... The Eureka Report costs $330 a year (but you don't get any stock tips from the Eureka guys, as far as I know).
A year's subscription to Diggers and Drillers costs $298.
Of course I'm biased, but from what I've seen you simply won't find the kind of under-the-radar resource stock analysis, advice and tips in Diggers and Drillers anywhere else in Australia.
When you consider what you stand to make from the "programmed for profit" stocks in your free reports alone, that $298 sounds like the deal of the century. But I can make it even better for you...
I realise $298 is still a big risk to take when you don't know me. So for your first year of membership I'll knock 55% off.
Join today, agree to pay by credit card, and you'll pay just $134 for the year - on the proviso that if the service performs as well as you expect it to, the price will revert to $298 should you decide to continue into year two.
Listen, if $134 seems too steep, maybe you're not cut out for this kind of investing, and that's fine. But if you decide to pass this opportunity up, I'd keep away from the ASX website around this time next year if I were you.
When you see how my three "cashed-up" stocks have done - particularly compared to those big name ASX 200 shares - you'll want to buy a pair of steel-toe-cap boots and kick yourself, hard.
Like I say, it's your call. If you're happy to play it safe and fill your portfolio with a bunch of mediocre investments, that's up to you.
But if you want to capitalise on some of the most exciting small resource stocks in Australia - before everyone else gets to hear about them - Click here now and let's get on with it!
Yours sincerely,
Dr. Alex Cowie
Diggers and Drillers
Calculating Your Future Returns
It's important to remember that investing in shares can lose you some or all of your investment money. Please seek independent financial advice regarding your particular situation.
While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. Th e value of any investment, and the income derived from it, can go down as well as up. All statistics as at 22 Janurary 2010.
For any investment, never invest more than you can afford to lose, and keep in mind the ultimate risk is that you can lose whatever you've invested. If in doubt of the suitability of an investment please seek independent financial advice.
Diggers and Drillers is published by Port Phillip Publishing Pty Ltd. Registered Office:
Level 1, 10 Fitzroy St, St Kilda, 3182.
(ACN: 117 765 009 ABN: 33 117 765 009) Australian Financial Services License: 323 988.
All content is © 2005- 2009 Port Phillip Publishing Pty Ltd All Rights Reserved
"I'm eager to invest - but I don't know which stocks will make me rich!"
If I had a dollar for each time I'd heard that I wouldn't need to play the markets myself!
But what if I told you there IS a way to determine which Australian stocks have the potential to make you a lot of money, and which you should walk away from?
I'm not talking about Elliott Wave, Cycle Theory, Fibonacci or any other complicated trading technique. This doesn't involve crystal balls, smoke signals, tarot cards or any other mumbo jumbo.
It's a simple, proven strategy that targets a very specific kind of Aussie stock.
To me, these little-known companies seem virtually "programmed" for profits. As you'll discover, people who have bought these stocks at the right time have made a fortune.
These stocks tend to lead the Australian market when it's rallying. Many of them thrive even when the wider market goes through a bad patch.
I call these "better" stocks.
In the next five minutes I'll reveal how this strategy works... and give you the detail of three "better" stocks you can buy now and tuck away for 2010.
Why most Aussies get investing wrong
- and how you can get it right
- and how you can get it right
If you want the chance to make big money from small stakes, forget property. Forget the Melbourne Cup. Forget the pokies or the lotto. Buying the right Australian stocks at the right time is the best chance you're ever going to get of making a big chunk of cash.
Most people realise this. But when the vast majority of new investors come to actually buying shares, something strange happens...
Somewhere along the way, the excitement of getting rich gets overtaken by the fear of losing money. So most people end up buying shares in Telstra, Myer, David Jones and BHP Billiton.
Now, there's nothing wrong with these companies. They are "safe bets". They're Australian institutions and household names. They're not going to go broke. They may even make you a few bucks.
You can buy these stocks and feel fairly happy with yourself. But you can forget any ideas you have about sports cars, yachts, early retirement and luxury European holidays.
To make life-changing money from investing you need something else. First you need to be prepared to take a few more risks. Then you need an advantage like the strategy I'm going to tell you about today.
Read on if you ever wanted to make money from
the stock market but didn't know where to begin
the stock market but didn't know where to begin
This strategy is surprisingly simple - but it's something the vast majority of investors overlook.
I know it seems crazy, but some are just too lazy to search for "better stocks" - the kind of opportunities I dig up regularly. Others overlook them because they're not really sure what they're doing.
The vast majority of Aussies end up investing "by default". The big corporations they hear about on TV or talked about by friends; these are the stocks that come to mind when they're ready to buy.
Like I say - there's nothing wrong with these companies. These are GOOD stocks. But there are BETTER Aussie stocks out there. Stocks that, to me, seem "programmed" to generate bigger profits. Let me show you two...
Why settle for $1,596 when you could have $4,408?
| NAME | BUY Dec '08 | SELL Jan '10 | GAIN | Turn $500 into | MY VERDICT |
| Rio Tinto | $40 | $72.84 | 82% | $910.50 | GOOD stock |
| Riversdale Mining | $2.17 | $7.53 | 247% | $1,735.02 | BETTER stock |
| BHP Billiton | $30.20 | $41.41 | 37% | $685.20 | GOOD stock |
| Brockman Resources | 49c | $2.62 | 435% | $2,673.47 | BETTER stock |
Rio Tinto is a GOOD stock.
As you can see in the table above, had you bought shares in Rio in December '08, you'd have made a 82% profit thirteen months later.
Granted, you wouldn't have got anywhere near that from the bank. But with just a little extra research, you could have saved your money and bought shares in a tiny, virtually unheard of firm called Riversdale Mining instead - same industry, much smaller profile.
Instead of a 82% gain, you'd have made 247% - well over double your money - in the same period of time.
Riversdale Mining is, in my opinion, a BETTER stock.
BHP Billiton is another GOOD stock. Everyone's heard of them. Millions own shares in them, either through their super or off their own bat. And why wouldn't you? BHP is an Aussie legend.
Well let's take a look: had you bought BHP shares in December 2008, and sold them in November 2009, you'd have made a 37% gain.
That's respectable - but you could have done better.
Almost TWELVE TIMES better for the SAME stake...
Had you sunk the same amount of cash into Brockman Resources instead, your return would have been 435%.
Brockman Resources is, in my view, a BETTER stock.
Let me be clear: I'm not saying Brockman is a better company; certainly not as well known as BHP. But I don't care about that. I invest to make money. I want to buy BETTER STOCKS.
That's the point I'm trying to get across to you: you can invest in all the household names you like. But if you can stomach a little more risk and buy what I call "better" stocks, you'll make more money.
It's like legendary investor Warren Buffett says: "Always invest where you can make the most impact". That's what I like to do.
In the example on the previous page, the GOOD stocks made a return of $1,596 in thirteen months from stakes of $1,000. The BETTER stocks made $4,408 - almost three times as much.
Now let me ask you: wouldn't you like a handful of "better" stocks in your portfolio?
Well sit tight. Because in a moment I'm going to give you three brand new "programmed for profit" pearlers to buy now and tuck away for 2010. Each one has the potential to triple - perhaps even QUADRUPLE in value - in that time.
You wait and see your friends' faces when they compare their "blue chip" returns to your gains this time next year!
Better still; grabbing a decent sized stake in these "better" stocks will not break the bank.
You won't pay more than two bucks a share for any of them.
Before we get into all that I want to let you in on a secret that could make 2010 the most prosperous year of your investing life...
The BETTER stocks I'm talking about
are Aussie "Diggers and Drillers"
are Aussie "Diggers and Drillers"
The best way - comfortably - for ordinary Aussies to make life-changing money is through a few targeted "punts" on a selection of small, virtually unknown, home-grown resource stocks - preferably before the "herd" hears about them.
The Australian resources sector is the ONLY place I look right now for unheralded gems that have the potential to make huge returns.
Australia is an investor's dream at the moment. We've got all that coal, uranium, gold, iron ore and gas buried under us and China and India fighting for it! Seriously, if you're an Aussie with a few hundred bucks to spare you're in one of the most privileged positions in the world right now.
I'm guessing you know that already. What you don't know is the names of the stocks that are primed to take full advantage of this huge opportunity. Let me tell you how I find them...
This is what helps me spot "better"
stocks before other investors do
stocks before other investors do
My job is simple to explain: find great stocks with huge potential. Buy them while they're cheap. Watch them fly. Sell them when they're expensive. Bank the profit.
It's not quite as simple to do - but here's the thing: you don't have to be a geologist, former BHP employee, or mining "insider" to uncover these superstar resource stocks-in-waiting. I can tell, pretty much, whether a stock is worth a punt by looking for a few "tell-tale" figures on its balance sheet.
If I like what the numbers tell me I'll carry out a full financial analysis on the company. There are eight things I look for at this stage that will make a stock a better bet for investment. When I find a firm that ticks all eight boxes, it's like the profits are "programmed in".
All you have to do at that stage is buy. Then sit and wait.
This is how I can help YOU make money from investing.
I'll go into more detail about what makes a "better" stock shortly. More importantly, I'll tell you about three small Aussie resource stocks my technique has flagged as ‘ready-to-fly'.
Buy them and I'm pretty sure you'll have cause to thank me many times over this time next year.
We'll get to the nuts and bolts in a tick. Right now you're probably wondering: if I only look at potential investments from an analytical point of view...
Why focus on Australian resource stocks?
Let me put it like this:
If you're a crocodile, you swim along the river to where the antelope cross. If you're a seagull, you fly to where the fishing trawlers launch, follow one out to sea at 4am, and hover above it.
I turn my attention to where the best moneymaking opportunities are, pure and simple.
Right now, they're right here in the Australian resources sector.
I'm going to show you in a moment how I identify, and evaluate those "better" stocks that can literally turn a few bucks into a second home... a HSV Clubsport R8... or early retirement...
But just so you know I'm not kidding...
Here are four resource success stories from 2009. Imagine I'd told you about these stocks when they were selling for peanuts:
- You could have bought shares in tiny coal-to-gas-to-liquid firm Linc
Energy (ASX:LNC) back in June 2007 for just 63 cents a pop and cashed
out in October this year for a 170% gain. That would have turned $500
into $1,350... or $5,000 into $13,500
- $500 invested in little-known Bauxite Resources (ASX:BAU) in March 2008
would have become $2,444 had you sold in October '09. $5,000 would have
made you $24,440... not bad for a 27c stock!
- Brilliant Natural Gas firm LNG limited (ASX:LNG) could have turned $500
into $2,157.15, had you bought for 35c in November 2008 and sold in
October '09... $5,000 invested would have become $21,572 - in less than
a year!
- Had you bought small gas-to-liquid firm MEO Australia (ASX:MEO) back in June 2009 for just 15c, and sold just FOUR MONTHS later, you could have turned a $500 investment into $2,083.35... or $5,000 into $20,840. Way more than three times your money!
How tempting would that trip to Europe have sounded if you'd chucked a few dollars behind this quartet of Aussie beauts?
I'm telling you - the Australian resources sector is TEEMING with these kinds of moneymaking opportunities... and you probably never realised half of these firms existed.
Rest assured - the money they've made for investors is very real. In fact, buy a stake in the right patch of land in Australia in 2010 and you can end up richer than you ever imagined...
The Millionaire Factory - hiring now
The BRW Rich list used to be dominated by media moguls, entertainers and bankers. Murdoch, Packer, Stokes and the like.
Not anymore. In 2008 Andrew Forrest became Australia's richest man. He's the CEO of Fortescue, the country's third largest producer of iron ore. Since Fortescue shipped its first tonnes of iron ore in May ‘08, Forrest's personal wealth has crept towards A$5 billion.
That shows just how much money is being thrown at Aussie resources right now... and how absolute fortunes can be made by those who target the right investments.
Google that BRW rich list when you get a moment and see how many multimillionaires have been created by the discovery of - and demand for - Australian resources.
Then read their stories. You'll be surprised. Coal tycoon Nathan Tinkler, worth $440 million, started out as a trainee electrician. Mining entrepreneur Terry Streeter, worth $250 million, was a "£10 pom" who scraped together his first $700 to invest in a gold mine.
These are regular people. What sets them aside from the rest of us is their understanding of a basic entrepreneurial fact:
Find the right asset, at the right price - before anybody else does - and you can make a terrific amount of money. In fact, it's almost impossible to NOT make money.
Look what happens to your bank balance
if you find the right patch of Aussie earth
if you find the right patch of Aussie earth
| Name | Company | Industry | 2009 est. worth |
| Andrew Forrest | Fortescue | Metals | $4.2 billion |
| Gina Rinehart | Hancock Prospecting | Iron Ore | $2.1 billion |
| Peter Bond | Linc Energy | Coal to gas to liquid | $880 million |
| Angela Bennett & Michael Wright | Rio Tinto (royalty) | Iron Ore | $650 million |
| Nathan Tinkler | Custom Mining | Coal | $441 million |
| Clive Palmer | Mineralogy | Iron Ore | $420 million |
| Terry Streeter | Western Areas, Fox Resources |
Mining & Exploration | $250 million |
These people have all gotten rich thanks to Australian resources. Sure, they've taken risks with their capital - as you will have to if you REALLY want to make money. But the biggest punt they took was on themselves.
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None of these millionaires thought they could get rich by throwing their money behind those same ASX200 blue-chip stocks everyone else buys with their eyes closed. They cast their net wider for profit opportunities in a sector they knew was booming.
Now I'm hoping I don't have to convince you of the potential for big profits in the Aussie resource sector! I'm assuming you know there's money - big money - sloshing around in resources... with more set to flood in.
Your dilemma is two-fold: 1) how do you divert some of that money your way? Where do you find those stocks that will go up 5-to-1, 6-to-1... even 10-to-1, quickly? And...
2) How do you make sure you don't invest in a firm that's just going to dig a big hole in the ground? They're not ALL winners!
Most Aussies will err on the side of caution and buy well-known miners BHP and Rio - then forget about them.
Well, any fool can join a parade that's already started. Owning these stocks is not the best way to get rich from resources.
You don't need to own land, either...
You don't have to discover coal, gas or uranium to
make a fortune from it
make a fortune from it
The secret to making a lot of money from Aussie resources is in buying a handful of small, "primed-for-profit" stocks - before anyone else gets to hear about them.
Bottom line: as long as China, India and the developing world needs Australian natural resources, the few companies who control the supply of these resources will continue to get rich, and make investors rich.
You already know this.
The only thing stopping you from getting your share is the right information at the right time, and having the confidence to back yourself. That's where I come in...
How "The Stock Doc" can put your
portfolio into the recovery position
portfolio into the recovery position
My Name is Dr. Alex Cowie. I'm editor of Diggers and
Drillers, Australia's premier resource stock tip sheet.I'm also not the guy you want to be sat next to at a dinner party.
Why?
Because you'll ask me what I do, and I'll say "I'm a financial analyst" and the conversation will grind to a halt.
Which is a shame, because then I wouldn't get to tell you how I identify "better" stocks to invest in!
A few years back, before the last commodities boom, I decided to find out whether it was possible to "read" the moneymaking potential of a stock from looking at its balance sheet.
I'm talking about things like debt, money in the bank, market capitalisation, cash flow, income, operating capital - and the complex relationship between them all.
These are things other private investors consider "boring" and subsequently ignore.
My aim was to see whether I could identify the ‘X' factor that turns a good company into a rip-roaring investment... to see if a picture emerged from these figures that suggested a particular stock had a better than average chance of doubling or tripling in short order.
Imagine how useful - and how potentially
profitable - that information would be!
profitable - that information would be!
This kind of "forensic" research is particularly valuable in a growing market like the Australian resource sector.
There are hundreds of tiny mining firms worth looking at down under, but not every one has the potential to make you a big return.
To me, the one thing worse than making a bad investment is making a mediocre one in a booming market!
That's why I spend time scrutinising a small resource firm's balance sheet. And it's why I introduced an 8-stage checklist for determining whether a stock can be recommended in Diggers and Drillers.
Many people would find this kind of analysis boring, but I enjoy it.
The question you'll probably want answering is: does it work?
Well, the stocks recommended by Diggers and Drillers in 2009 are outperforming their relevant market sectors by 40.1% on average.
And our readers seem to be happy...
Kieran M emailed recently to tell us: "I'm on the way up with very nice profits. I will have paid for my D and D sub for another 75+ years when I trade out again."
Subscriber Don L told us: "Diggers & Drillers provides by far the best means for keeping up with things that I know. I will be continuing my subscription on an annual basis. You may quote this just as loud and long as you like!"
Bottom line: I've developed a method of analysing a resource stock so that I can tell you with a fair degree of confidence whether it's worth a punt or not.
And now I'm going to share it with you.
How I pick "Better" Stocks
First you must focus on the right commodity at the right time.
I look at the wider picture to see what's being pushed up by the market. Platinum is a great example.
The platinum price has risen steadily in the last 12 months. Strong demand for platinum and a very tight supply has pushed prices up and is expected to keep doing so.
Then you determine that the commodity has a promising future.
For example, Asia has a rapidly growing demand for liquefied natural gas. Australia has an abundant supply and is right on the doorstep.
Finally you target where you can invest to make the biggest impact. This is KEY.
If you take the advice of financial planners, the media or friends, you'll most likely end up investing in Rio, BHP, or Woodside Petroleum. All GOOD stocks, remember!
Or if you don't buy one of those big names, you'll probably invest in what's called an "Exchange Traded Fund". That gives you a basket of industry stocks with one single investment.
Doing this won't give you sleepless nights, but your returns will track the index, at best.
You may decide to invest in the underlying commodity - which is fair enough, but it's still not the best way to make money. Why?
Simple: you don't get any leverage when you buy a physical asset.
Gold, Copper, Iron ore - these are NOT going to go up five or ten to one in a year.
A small mining stock can go up that much in a WEEK.
It happens all the time without you ever realising it.
Please understand:
Investors that back these companies
at the right time can make huge profits
at the right time can make huge profits
Today, if you'll give me the chance, I'll prove it to you...
I've picked out three small Aussie resource stocks that are getting virtually no coverage at the moment.
I've run the numbers on each firm, sat for hours and pored over their balance sheets. I've assessed their existing and future projects, and how they're going to fund them.
These three stocks are the real deal. They look "programmed for profit". I think this is a great opportunity to double your money - at the very least - by this time next year.
I'll tell you about them - and give you an idea why each one is such a strong buy for 2010 - in just a moment.
Then, if you're interested, I'll send you all my research on these stocks for FREE. You'll get the full deal: everything you need to invest - name, ticker symbol, profit target - the works.
If you've been waiting for the right Aussie resource investment opportunity, you will not get a better chance than this.
You can pass it up if you want, but I'm telling you: you won't get rich investing in the same resource stocks everyone else does at the same time everyone else buys them.
You might make a little money - if that's all you want, that's fine.
But the only stocks going up 5-to-1 and 10-to-1 in Australia are these little mining firms. They go up because they find something and it's worth a lot of money.
Simple, huh? The tricky bit is discovering and buying the stocks that are sitting on something valuable before other investors.
You can try that on your own if you want.
But what I'm saying to you today is: you don't have to!
I'll send you my report: "3 Cash Rich Aussie Resource Stocks You Must Own Now" - free of charge. Details on how to get your hands on a copy coming up...
Remember - this strategy WORKS.
Let me show you.
Take a look at the stocks in the table below. We told Diggers and Drillers readers about these over a year ago in December 2008. I checked on their progress again in January 2010.
Look at what happened to them...
See how our last lot of "better" stocks could have
more than TRIPLED your money in 13 months
more than TRIPLED your money in 13 months
| COMPANY | Share price ($) | Percent Change | Turn $500 into | |
| Dec ‘08 | Jan'10 | |||
| CAPE LAMBERT IRON | $0.18 | $0.55 | 205.56% | $1,527.78 |
| BROCKMAN RESOURCES | $0.49 | $2.62 | 435% | $2,673.47 |
| AED OIL | $1.03 | $0.60 | -41.75% | $291.26 |
| GIRALIA RESOURCES | $0.35 | $1.54 | 340.00% | $2,200.00 |
| RIVERSDALE MINING | $2.17 | $7.53 | 247.00% | $1,735.02 |
| AVERAGE GAIN | 237.10% | |
| TURN $2,500 INTO | $8,427.53 |
These tiny stocks all had one thing in common... something the average Australian private investor wouldn't think to look for in a million years.
In the middle of the worst financial crisis for a generation, they had cash. Bags of the stuff.
It was right there on their balance sheet for anyone with half a brain to see.
In fact, they were the five best "cashed-up" small-cap resource companies around in December 2008. And that screamed "BUY!"
It was a "no-brainer".
You see, before September ‘08, many small Aussie miners had been reliant on credit to explore and drill for their resources. When the financial crisis hit and banks reined in their lending, lots of these firms struggled. Without cash to explore or mine, production slowed. Their share prices plummeted.
It wasn't a great time for a small mining firm to be in debt. And it wasn't a great time for you if you'd invested in credit-hungry resource firms without doing your sums.
But if your resource company wasn't reliant on credit to run its business - if it had its own money in the bank, like the five stocks we covered in Diggers and Drillers - it was "business as usual".
As you can see from the table above, we took a hit on one of them - which leads me to something important...
If you don't like risk, don't bother asking for my report
I look mainly for stocks that sell for under two dollars a share. Why? I like to invest where I can make the most impact.
It's easy for a two-dollar share to become a four-dollar share. That can happen in a day. When it does, you double your money.
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A lot of these tiny companies are explorers. They could be sitting - literally - on gold... or it might just be a big patch of red Aussie earth. That's the risk you take when you invest in small resource stocks.
You need to trust me and follow my advice to the letter - which means buy at the target price and sell when I instruct you to.
I think I can help you make money - good money - from this kind of investing. But they won't ALL be rocket-to-the-moon winners.
If that doesn't work for you, it's better we end things here. I'm looking for investors who don't mind taking a few risks with money they can afford to spare. If you'd rather stick with what you know, thanks for your time and good luck with your investing.
But if you can see the value in what I'm saying... you're comfortable with a little risk... and you want to invest in "better" Aussie stocks before the mainstream... you'll want to get hold of my 2010 research: "3 Cash Rich Aussie Resource Stocks You Must Own Now".
I'll explain exactly how you can get your hands on a free copy of this report in a moment. First, let me tell you a little bit more about the three stocks I've found...
"Programmed-for-profit" stock 1: Who fancies
a bargain-priced slice of the 2010 copper boom?
a bargain-priced slice of the 2010 copper boom?
Stock number one focuses on small mines that can quickly be taken to production. It invests mainly in base metals, copper, nickel and natural gas with interests in Adelaide, Queensland and West Papua.
This firm has cash reserves of $143m, and liabilities of just $16.6 million. That means net cash is at least $126.4m.
That's good. REALLY good. The strategy for 2010/11 is to develop its 100%-owned gold and copper project just outside Adelaide.
The resource is over 30 million tonnes, containing 292,000 tonnes of copper, 191,000 ounces of gold, and 3.3 million ounces of silver. Production is expected within 12 months.
The numbers virtually LEAP off the page with this one. It has strong net cash, a large good quality reserve with proven infrastructure, and is expecting production any day.
With record demand for copper, this stock is capable of producing exceptional profits. I'm expecting it to double AT LEAST in 2010. With the share trading around 40 cents currently, the time to buy is now.
My full research on this healthy little company is in your free report: "3 Cash Rich Aussie Resource Stocks You Must Own Now". You'll be able to grab your copy in just a moment.
"Programmed-for-profit" stock 2: Your best chance
to invest in the coming uranium bull for peanuts
to invest in the coming uranium bull for peanuts
Your second cashed-up buy for 2010 is a small uranium exploration company with 4,000 square kilometres across seven tenements in The Northern Territory.
Even though it's holding cash of just $4.46m, its market cap is just $6.9m, which gives it a high cash : market cap ratio. The company has liabilities of just $19,000. So its net cash is $6.9m.
The market cap is low because the share price is hovering around the 20 cent mark. It's another speculative one, so be careful about how much you pour into it. But I think it will give you plenty of reasons to be cheerful as we move through 2010.
Buy now and you're basically getting a cash rich, ground floor Aussie uranium play. The credit crisis deferred investment. There will likely be a reduction in supply followed by a spike in price. Uranium is expected to reach $60/lb or more over the next two years.
That will help this firm. As will China's growing interest in securing Uranium for the many nuclear reactors it needs to meet its rising energy demands.In recent weeks potential Chinese partners have been knocking on this company's door.
An expected resurgence in the uranium market is reason enough to invest in this firm. But the best stat hidden deep in this firm's balance sheet is this...
At its current spend rate, the company should survive without profit for 25 years! But I don't expect it to have to. If all goes to plan for this stock, I think you can double your investment - comfortably - by Christmas 2010...
Programmed-for-profit stock 3: Follow the smart
investors into this ultra-rare metal and you could QUADRUPLE your money in two years
investors into this ultra-rare metal and you could QUADRUPLE your money in two years
While all the investor attention has been on gold – and rightly so – I've been quietly focussing on another ultra rare metal; one that's in even shorter supply than its yellow cousin.
This metal makes up just three parts per trillion of the earth's crust. If you took the 6,000,000 ounces mined worldwide in 2009, it would just about fill a Holden Barina. And seventy five per cent of the world's supply comes from one place; the Bushveld complex of South Africa.
Your third cashed up Aussie-listed stock is right in the thick of the action. It is sitting on the largest undeveloped deposit of this metal in South Africa. It plans to turn this underground bounty into a large productive mine, starting mid-2010.
I can't tell you how excited I am about this firm. It carries no debt, and is highly leveraged to the price of the underlying asset – which is in huge demand from Auto manufacturers, primarily in China.
Better still, there is a very strong possibility of a major global miner partnering up with this company. It has pledged to cover the capital costs of getting the mine up and running.
This stock is way under the radar right now – because the metal it deals in isn't getting much attention. That gives you a window to get in while the share price is hovering around the 60-cent mark.
If all goes to plan, this brilliant company will shoot for the moon. I can see this highly investable stock rocketing up to $2.50... maybe even $3.00 within two years – which would give you a 400% gain... provided you got in quick.
If you want in, you'll need a copy of my exclusive briefing: ("3 Cash Rich Aussie Resource Stocks You Must Own Now.")
Here's how to get your stake in these "better"
stocks before the market discovers their true worth
stocks before the market discovers their true worth
Investing in these three "better" stocks is as easy as buying a loaf of bread in Coles. Just grab a copy of my report: "3 Cash Rich Aussie Resource Stocks You Must Own Now", read my research and if you like what you find, call your broker if you have a trading account, or go online and set one up easily in minutes.
The only thing I ask in return for this research is that you take a no-risk 30-day trial subscription to my monthly share tipping newsletter: Diggers and Drillers...
When I say "trial", I mean it. If you don't like my analysis, we simply part ways. You won't owe me a cent. And you get to keep my 2010 stock report with my compliments, whatever you decide.
Accept my offer today and here's what will happen...
Australia's premier resource stock letter
try it, RISK-FREE for the next 30 days
try it, RISK-FREE for the next 30 days
In the next month (and hopefully after that if you choose to stay on as a subscriber) I'd like to send you a summary of my most exciting resource stock tips, along with details of the action you need to take to get a stake in them.
I'll give you at least one brand new Aussie resource share tip in each monthly Diggers and Drillers issue, with an explanation of why I believe it's "programmed for profit".
I'll tell you what the risks and rewards are, what price to buy at, and what I think is a realistic profit target based on my research.
I'll also update you each month on the progress of your existing Diggers and Drillers shares; and tell you whether I think you should buy more, sell your shares, or hold your position.
In addition, you'll get a private weekly email from me where I pass on time-sensitive tips, advise changes to your holdings, plus reveal details of other stocks that are on my radar.
Look, I think this is the most exciting, most potentially profitable kind of investing in the world right now. And you're in exactly the right place to take advantage. You may never get a better opportunity to make this kind of money. Provided you pick the right stocks, there's nowhere else on Earth you could grow an investment three or four times over so quickly.
I'm confident you'll see what I mean when you start receiving my research and stock tips. That's why I'm prepared to offer you a very special, no-quibble guarantee...
If you can't see the potential in investing in "better"
stocks within 30 days I don't deserve your money
stocks within 30 days I don't deserve your money
Click here to claim your 30-day risk-free trial subscription of Diggers and Drillers today and I'll send you your free investment report: "3 Cash Rich Aussie Resource Stocks You Must Own Now".
Have a good read. Study my analysis. If you're not ready to take a punt on these stocks, that's fine. Just "paper trade" the tips during your trial to see if I'm as good as my word...
Here's the deal: if my report, or your first issue of Diggers and Drillers doesn't match your expectations, if you can't see yourself making good money from my resource stock investing service, call my member services team on 1300 66 74 81 within that 30-days and they'll refund you, in full, no questions asked.
No one will give you the third degree. And all the materials I send you during your trial are yours to keep.
Listen, if I'm wrong, you haven't lost a cent of your money.
But If I'm right, you'll have made a profit - maybe a handsome one - and I'm hoping you'll stay on as a regular reader and join me in plundering this tiny end of the ASX for huge profits while 99% of Aussie investors plod along, doing what they've always done.
You have to admit that's a pretty decent offer. But don't make any decisions just yet. There's something else I want you to have.
BONUS REPORT - "The Long Aftershock":
your second swipe at triple-digit energy returns
your second swipe at triple-digit energy returns
Click here to claim your 30-day risk-free trial subscription to Diggers and Drillers today and I'll send you a bonus briefing - free of charge...
Have you been watching the oil price recently? I have. It's worryingly erratic.
Crude spent much of 2009 below $50 a barrel. It rocketed up to $73 in June then plunged back to $58 the following month. In November oil traded back up at $80.
Something's going on. My biggest fear (and you should read the worrying research in my report that backs this up) is that the world is much closer to running out of oil than official estimates admit. I reckon we're headed back to $100 oil - maybe even higher - DEFINITELY within the next six months.
This will be bad news at the petrol pumps. But it's great news for canny investors who prepare their portfolios now...
I've run the numbers on four tiny Aussie oil and gas stocks that stand to benefit hugely from the coming rebound in oil prices. These include Australia's best LNG stock, a fantastic, little known African / Aussie uranium play, and two explorers looking to strike it big.
These four energy picks could double, maybe triple your money over the coming year.
I'll show you how to get your stake in them in your bonus report: "The Long Aftershock": your second swipe at triple-digit energy returns.
Two big stories dominated the investment landscape in 2009. Oil was one. The other was gold. Now you may be thinking you've missed all the profits from Gold's recent record run. You haven't...
BONUS REPORT 2 - "Gold Mania 2010":
4 undervalued gold stocks to buy NOW
4 undervalued gold stocks to buy NOW
Sign up for a 30-day trial of Diggers and Drillers in the next seven days and I'll send you a second, exclusive report - for free.
As gold has crept up to and over the US$1,000/oz mark during this global economic crisis, you might be wondering if it can go higher.
The answer is MUCH higher. Right now, central bankers are warning of deflation. But I believe huge borrowing programmes by the U.S. Federal Reserve, the Bank of England, and the Bank of Japan will lead to inflation in 2010. As paper money loses its value, investors will increasingly turn to gold - and that will push its price up.
If you haven't done so already, NOW is the time to prepare for that scenario by investing in a selection of gold stocks. As you'll read in your second bonus report, Australia has some really good ones...
You'll discover what I believe are Australia's four most primed-for-profit gold stocks right now... and why they stand to benefit from growing global demand and increasing inflation in 2010.
Prepare to be surprised. These four undervalued firms are as Australian as the Boxing Day Test and billy tea. They're listed in Sydney, but their mines are not in Australia.
That gives them a HUGE advantage, which you'll learn all about in your second bonus report: "Gold Mania 2010": 4 undervalued gold stocks to buy now. Here's how to get your copy...
Give me the nod today and I'll send you details
of ELEVEN "better" stocks for FREE
of ELEVEN "better" stocks for FREE
To claim your 30-day trial of Diggers and Drillers, click here and complete the short application form.
As soon as I receive your order, I'll send you details of my 3 best "cashed up" Aussie resource stock tips for 2010... You'll also get my report on 4 special Australian energy stocks that stand to benefit from increased oil volatility over the next 6-12 months... Plus, you'll get 4 unique ways to play the 2010 gold boom.
That's eleven "better" stocks in total to buy now and tuck away. Each one could double... even triple your money by Christmas 2010.
Your 30-day no commitment trial of Diggers and Drillers will also begin. Remember: you don't enjoy my research, for whatever reason, let me know and I'll send your money back. How does that sound?
I'm guessing you have a question...
How much does membership of Australia's
premier resource stock advisory cost?
premier resource stock advisory cost?
If you're interested in investing in Aussie stocks, and you're considering getting help, there are a number of options out there.
The Rivkin Report will set you back $899 a year... The Intelligent Investor costs $545 a year... The Eureka Report costs $330 a year (but you don't get any stock tips from the Eureka guys, as far as I know).
A year's subscription to Diggers and Drillers costs $298.
Of course I'm biased, but from what I've seen you simply won't find the kind of under-the-radar resource stock analysis, advice and tips in Diggers and Drillers anywhere else in Australia.
When you consider what you stand to make from the "programmed for profit" stocks in your free reports alone, that $298 sounds like the deal of the century. But I can make it even better for you...
I realise $298 is still a big risk to take when you don't know me. So for your first year of membership I'll knock 55% off.
Join today, agree to pay by credit card, and you'll pay just $134 for the year - on the proviso that if the service performs as well as you expect it to, the price will revert to $298 should you decide to continue into year two.
Listen, if $134 seems too steep, maybe you're not cut out for this kind of investing, and that's fine. But if you decide to pass this opportunity up, I'd keep away from the ASX website around this time next year if I were you.
When you see how my three "cashed-up" stocks have done - particularly compared to those big name ASX 200 shares - you'll want to buy a pair of steel-toe-cap boots and kick yourself, hard.
Like I say, it's your call. If you're happy to play it safe and fill your portfolio with a bunch of mediocre investments, that's up to you.
But if you want to capitalise on some of the most exciting small resource stocks in Australia - before everyone else gets to hear about them - Click here now and let's get on with it!
Yours sincerely,
Dr. Alex Cowie
Diggers and Drillers
Calculating Your Future Returns
It's important to remember that investing in shares can lose you some or all of your investment money. Please seek independent financial advice regarding your particular situation.
While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. Th e value of any investment, and the income derived from it, can go down as well as up. All statistics as at 22 Janurary 2010.
For any investment, never invest more than you can afford to lose, and keep in mind the ultimate risk is that you can lose whatever you've invested. If in doubt of the suitability of an investment please seek independent financial advice.
Diggers and Drillers is published by Port Phillip Publishing Pty Ltd. Registered Office:
Level 1, 10 Fitzroy St, St Kilda, 3182.
(ACN: 117 765 009 ABN: 33 117 765 009) Australian Financial Services License: 323 988.
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