Are Stocks Finally Cheap Enough?

 In case you didn't notice, emotions have been running a little high in the stock market lately as the Dow has plunged to a new bear market low. Maybe it has been the excitement in the banks or all the talk about nationalization that has gotten people all riled up. Or maybe it was the goings on in Washington that has people speaking their minds about what the new kids on the block are doing/planning. But to be sure, the situation appears to be reaching a fever pitch.

For example, we recently got a first rate rant on CNBC about the administration's housing bailout plan from Chicagoan Rick Santelli. And while Mr. Santelli isn't known for holding his tongue, he obviously struck a nerve in the White House as he received a very unusual and very public tongue lashing from Press Secretary Ron Gibbs, the likes of which we haven't seen since Nixon attacked CBS's Dan Rather.

But it wasn't just the commentators on the so-called "cable shows" that were a little emotional. (And by the way, since the new administration doesn't seem to be terribly familiar with the way Wall Street works, I wonder if Mr. Gibbs knows that the little cable TV station he referred to - aka CNBC - is seen all over the world. This isn't exactly public programming in Omaha! But, oops, I might just be ranting a little myself here.) Former Fed Chairman and Obama economic advisor Paul Volcker also got into the act of inciting emotions by stating that this was the fastest plunge in global economic activity ever. And yes, that includes the Great Depression.

So, with the stock market declining on a daily basis and in the process, revisiting levels not seen since 1997, as well as the minor revolt over what is perceived as the government bailing out anybody and everybody to make up for the money the government put into Wall Street, we thought it might be a good idea this weekend to step back from the emotion of the moment and take a look at one of the keys to the stock market - valuations.

Emotions In Motion

It has been said that the stock market is itself a study of emotions in motion. The idea here is that investors will buy or sell the future revenue stream of a company based on how they feel at the time. If times are good, an investor might be more than happy to pay 30 or 40 times next year's earnings (think 1999 here) because they probably expect earnings to accelerate. However, when times are bad, stocks experience what is called "multiple contraction," which, in simple terms, means investors won't pay as much for the future earnings because the growth rate of the company's earnings may be in jeopardy.

Relative or Absolute?

Getting to the topic at hand, if you want to start an argument amongst financial analysts, simply start talking about market valuations as there are a myriad of ways to try to put a fair value on a company or index. But, let's give it a shot anyway as Market Valuation is one of the key drivers to stock prices over the long term.

There are basically two ways to look at valuations: Relative and Absolute. The first approach looks at stock prices in relation to competing interest-bearing investments such as bonds and T-Bills. And if we look at things such as earnings yields, dividend yields, bond yields, etc, we can argue that the S&P 500 is the most undervalued it has been at any time in the last 50 years. And as the bulls will tell you, this is a big-picture positive.

However, another way to look at valuation is what companies are paying in terms of dividends. The reason we like this approach is dividends represent cold hard cash that companies are willing to part with. Thus, it can be argued that dividend payments reflect the current level of confidence a company has about its future.

Let's contrast this approach to the more popular valuation measure based on earnings - aka the P/E ratio. In short, the problem with the P/E ratio is the "E." Since there are so many ways to manage, massage, or "engineer" the earnings numbers these days, it is tough to get a handle on a company's real "E."

The only real way to fairly and consistently measure the "E" is via the use of GAAP accounting. But unfortunately, you don't get GAAP earnings when a company reports their quarterly results. And often times you only get a company's "operating earnings," which usually excludes anything bad that occurred during the quarter.

So, if you insist on using a P/E ratio as your market valuation measure, please be sure to use GAAP earnings in your formula. But unless you are willing to create the numbers yourself (which could require digging through each company's earnings report) - good luck with that. (For the record, Ned Davis Research tells us the current S&P 500 P/E based on GAAP earnings is 29.83, which is considered very high given the average since 1926 has been 16.03.)

Getting back on track, while the relative valuation measure using current interest rates suggests that top stocks are VERY cheap right now (mainly because interest rates are at generational lows), our more objective valuation measure using dividends suggests that the S&P 500 is just now getting back to the historical norm.

What Exactly is Normal?

The last word in the last paragraph also poses a bit of a problem. You see, comparing today's business practices to those of the 1920's doesn't exactly make a lot of sense. And while the concept of paying dividends hasn't changed, the business climate, and as such, the expectations of dividend payments, does change from time to time.

Therefore, it is probably not a great idea to simply look back at the average Price to Dividend Ratio of the S&P 500 since 1925 and draw a conclusion. The current Price to Dividend Ratio for the S&P 500 as of 1/31/09 is 29.1. If we go back to 1925, we see that the average has been 27.0 and that levels over 35 would be considered "expensive" while readings under 18 would make the market "cheap."

However, over the past 50 years the average P/D ratio has been 37.7, over the past 25 years, the ratio has been 47.5 and since 1990, the average has been in the vicinity of 60.

Pick Your Poison

So, are stocks cheap here? To answer the question, you must first pick your time horizon. From 1925, valuations are merely neutral. Over the past 50 years, you can argue that valuations are on the low end of neutral and maybe even at the high end of cheap. And if you are looking out over the past 15-25 years, it is safe to say that hot stocks are indeed approaching bargain levels.

The bottom line is that stock valuations are not expensive at the present time, which is a good thing if you are looking long-term. However, if your time horizon is something more like the start of Spring Break, then you'd best keep your eyes on the banks and what Mr. Geithner may or may not say on the topic.

Wishing you all the best for a profitable week ahead,

ProShares Ultra QQQ ( QLD)
Date Purchased: This is a new purchase
Purchase Price: NA
Buy Strategy: We're looking to add a position here or on any near-term weakness
Active Trader Stop: $22.19

Current Strategy:
It was a relatively quiet week as we've decided to "do less" again in this environment. We did close one winning trade during the week as we sold our recently purchased position in the China ETF (FXI) for a gain of +5.57% in just 3 days. In addition, we cut our position in health care (VRX) in a timely fashion as we managed to avoid a much bigger drop in the best stock (VRX fell an additional -12% after we sold it) in response to Obama's stance on health care was announced. Turning to new trades, we beleive we're setting up for a nice bounce higher and would use any further weakness to start nibbling at the leaders.

STOCK SPLIT REPORT -- by StockSplits.net Editor Jon Johnson

For post-splits, we can play them as we would pre-splits (very short term), but we prefer to stretch our horizons, playing the trend. When playing options, we look further out, 2 or more months at least. We let the trend carry us along if there is one, but we will also take profits if the technical pattern degenerates, e.g., breaks a trendline. The main difference between post-splits and pre-splits plays is that we really have to like the pattern. Pre-splits can run right before their splits even with poor technical indicators. For post-splits, we are looking at the stocks from more of a longer term "would I buy this stock at this juncture?" position. Now there are times when a hot stock splits and investors pile in to get in while the stock is 'cheaper.' We play those, but with more of a short-term, pre-splits mentality in that we will be ready to get out fast if the momentum fades.

Remember, everything we do has to pass muster with the market that day ... don't fight the market on these plays.

Listen to Stock Split Report Editor Jon Johnson's
stock split interview on CNBC-TV [  Broadband  |  Dial-up ]

Here's a post-split play and our current analysis.

 

Chart by StockCharts.com

RIG (Transocean--$59.77; +0.01; optionable): Drilling rigs for offshore oil work.
Company Profile
After Hours: $60.04
STATUS: Flat base. After the selloff RIG put in an 8 week bottoming patter, and broke higher the first week of February, clearing that initial base. It rallied up to the 90 day SMA (59.47) and has slide laterally in a rather flat trading range on low volume. The past two sessions it moved through the 90 day but could not hold the move, closing just below that level. Looking for a breakout on strong volume to show us it is time to buy.
Volume: 8.893M Avg Volume: 10.865M
BUY POINT: $61.65 Volume=13M Target=$69.94 Stop=$57.77
POSITION: RKJ EL - May $60c (52 delta) &/or Stock

Chart by StockCharts.com

BIDU (Baidu Inc.)
Company Profile
There were many quality stocks in position to lead the market, higher, but the selling over the past three weeks on the lack of a clear bank bailout plan and the rumor becomes fact about the stimulus bill took the majority of those stocks out of their upside patterns. The Chinese stocks, however, given the Chinese stimulus plan that is perceived to be much more effective than that in the US, continued to hold good upside patterns.

BIDU had our attention. It broke higher on 2/9/09, breaking higher from a 7 week reverse head and shoulders pattern on excellent volume. We watched for a pullback to move in and on 2/11/09 it showed a candlestick chart doji right at the 50 day EMA and we put it on the report. Our play is a rebound off of that test. BIDU kept slipping, however. It did not break up its pattern, so we simply adjusted our buy point. On 2/20/09 BIDU gapped higher, clearing the 50 day EMA on a return to above average volume. We didn't chase that gap, but the next session it tested that gap and started back up. That is when we moved into the play with some stock positions at $136.15 and some June $135 strike call options at $23.60 per option. A high price but BIDU runs like the wind and pumps those values up.

BIDU was ready to move after this test. Over the next four sessions BIDU fought the overall market direction, moving up to $153 on the Thursday high. That move took BIDU through next resistance at the 90 day SMA, and it is always nice to clear such a key resistance level. It started to reverse off the high, and with a solid run over the prior six sessions and the poor overall market performance, it was time to take some of the gain off the table. We sold some stock at $151, not at the session high but it banked us a 10.9% gain and beat the closing price at $145.94. We also sold some of our options at $32.40, netting $8.80 per option or 37%. Great upside leadership in a weaker market.

BIDU hung tough, posted a gain back up to $148.32 on Friday after running up close to the Thursday high intraday. We will see how it tests and if it holds that 90 day SMA we will be looking to add some positions on BIDU. The US plan may not work but the Chinese plan is perceived to be working, and as long as it does there will be Chinese stocks such as BIDU, SOHU, ASIA for those wanting to play the upside in a weak overall market.

The Great Credit Contraction Cometh

"In a fundamental shift, consumers are saving rather than spending," notes the
Los Angeles Times.
 
This is the shift we've been talking about for months. The great credit
expansion of 1945-2007 is over. Now cometh the great credit contraction.
 
During the bubble years, more and more credit produced less and less real
prosperity. It was as if you were borrowing more and more, to invest in your
business or merely to increase your standard of living, but your income didn't
rise fast enough to keep up with the interest payments.
 
In 2005, Americans saved nothing. Not even aluminum foil or string. Now,
the savings rate is approaching 5% of disposable income � a big
turnaround.
 
We know from logic and experience that saving money � not spending it � is
the key to getting wealthier. Saving money gives you capital. And it's capital
accumulation � in the form of factories, roads, ships, buildings,
machines...and raw savings � that gives people the ability to produce more. It
may take a man with a shovel a whole day to dig a decent grave. Give him
capital � in the form of a backhoe � and he can bury everyone in town. That's
why capitalism works. It rewards the fellow who saves his money.
 
Yet every yahoo economist in the year of our Lord 2009 takes news of rising
savings rates like the death of Michael Jackson. If households don't consume,
they reason, how can a consumer economy grow?
 
The problem is that you can't really grow an economy by borrowing and
spending.
 
Recent history proves it. Despite the biggest splurge of borrowing and
spending in history, the US consumer economy barely grew at all.
 
"In the five years to December 2007," reports Grant's Interest Rate Observer,
"America's credit stock market debt climbed by nearly 57%, to $18 trillion.
However, in the same half-decade, nominal GDP was up by only $3.3
trillion."
 
For every five dollars people borrowed, they only increased their incomes by
$1. Imagine that the borrowing had an average effective interest rate of 10%
(credit card debt can be much more expensive). At that rate half of the
additional income earned between 2002 and 2007 had to be used just to pay
the interest.
 
This was not the kind of growth that was likely to last. In fact, it didn't.
The whole thing came crashing down in '07 and '08. And now, the consumer
has had a cup of coffee. He's looked at himself in the mirror. He's sorted
through his pile of bills. And he's made up his mind: that's enough of that!
 
"The ratio of cash held by households as compared with assets has been rising
sharply," says James Saft in The New York Times.
 
"Companies, households and banks all want to pay down debt and...prefer to
hold cash rather than assets, partly because the outlook for those assets is poor
and partly because after a decade of excess, everyone now looks a bit over-
extended.
 
"This is exactly what happened in Japan during its lost decade, when a
balance sheet recession, one characterized by the paying down of debt and
liquidations of assets, was self-reinforcing and very difficult to stem."
 
And now this from David Rosenberg:
 
"The ultimate question is where all this cash is going to be deployed, and
we believe it will ultimately be diverted toward debt repayment."
 
Let's see. We can figure this out from the numbers above. American
consumers must have added about $7 trillion in extra debt during the Bubble
Epoque, 2002-2007. Now, instead of buying things, they use their money to
pay it down. The average household has about $43,000 worth of income. Let's
keep the math simple by saying there are 100 million households in the United
States...and that they save 5% of their income. And let's say they use every
penny of savings to pay down debt. Hey...it will only take about 30 years to
pay it off! Get ready for a long, long slump.
 
To read more about the drag the lack of consumer spending will have on the
US economy, see The Richebacher Letter's latest report here.
 
More news from The 5 Min. Forecast:
 
"Every once in a while we stumble upon a chart or table that says it all,"
writes Ian Mathias in today's issue of The 5. "Here's one hot off the press:

"Oh my, where do we begin? This beast calls for bullet points.

Obviously, Wal-Mart is no longer No. 1. That title now goes to Royal
Dutch Shell. The American consumer is out, and a global oil
conglomerate is in… 'nuff said

There's a clear sea-change in American business. AIG, Lehman and
Bear Stearns fell off the list from 2008-2009. Nike, Google and
Amazon moved up.

The world is increasingly less Amero-centric. An American company
is not No. 1 for the first time in over a decade. In the whole list for
2009, 140 companies are American, the lowest number on record

The world is increasingly more Sino-centric. Look at China National
Petroleum and Sinopec. Both Chinese companies are by far the biggest
movers up from 2008-2009. Sinopec, an oil and gas company, also
marks China's first foray into Fortunes' Top 10. China now has 37
companies in the list of 500, its largest presence ever

Oil is still where it's at. In spite of all the price drama over the last
year, seven of the top 10 firms are oil companies.

In the face of the worst global economic environment of our lifetimes,
the world's biggest companies are still making lots of money. The
2008 top 25 pulled in $4.88 trillion in revenue. This year they made
$5.38 trillion.

And freakin' GE… what a black box. The world's producer of
everything was one of very few companies to retain the same position
from 2008 to 2009. And despite the infamous GE Capital, the finance
arm that apparently threatened to torpedo the whole company, GE
ended up increasing revenues by nearly $7 billion.

"Hmmm…"
 
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Monday through Friday? You can…by becoming a subscriber to one of Agora
Financial's paid publications, such as Strategic Short Report. Check out their
latest report, which details a strategy that uses panic on Wall Street to its
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Monday, June 13. Get all the details here.
 

And back to Bill, with more thoughts:
 
Yesterday, top stocks market went nowhere. Oil went nowhere. And the dollar went
down as gold went up.
 
The reason for the dollar's decline and gold's rise was given in the front-page
headline of today's Financial Times. China launched a "new dig" at the dollar,
it says. As near as we could tell, China merely stated the obvious � that the
world is going to have to find a better monetary system. The US dollar won't
be king of the hill forever. And China, which is up to its neck in dollars,
would like to find a solution sooner rather than later � that is, before the dollar
goes the way of all paper.
 
The dollar will eventually give way to inflation and devaluation, but probably
not soon.
 
"I'm absolutely worried about inflation," says John B. Taylor.
 
But here at The Daily Reckoning, it is not inflation that worries us...it's the
lack of it. Making a long story short, as long as the feds see no inflation they
will continue trying to create it. In the end, they will get more than they
wanted.
 
And where will investors flock when that day comes? You guessed it � to our
favorite yellow metal. Beat the rush…pad your portfolio with gold now.
 
Though, right now, instead of inflation, we have deflation. Today's New
York Times tells us that deflation in Ireland has reached 5.4% ― the highest
since the Great Depression of the '30s.
 
You know the reasons for deflation as well as we do. The world suddenly has
too many people who borrowed too much money buy too many things they
really didn't need and really couldn't afford. This caused the world's
producers to greatly over-estimate the 'real' demand. Their customers began
to disappear in 2007. Their factories are still standing.
 
"Is it always so cold in July?" asked an American visitor yesterday. London
has been cold, windy and rainy for the last week. It comes as a shock to
American tourists, who inevitably show up in shorts and t-shirts.
 
Europe has a milder climate than North America. Our guest comes from
Ottawa, Canada.
 
"Everybody thinks it is so cold in Canada. But it's much hotter there than it is
here. A lot of houses in Ottawa have air conditioning. Here, almost no one has
it. And I guess they don't need it."
 
But in the winter, the streets of North American cities turn bitter cold and
bums freeze up on the sidewalks. That doesn't happen in Europe. It rarely
gets cold enough to freeze a bum here. Maybe that's why there are so
many of them.
 
Around the corner from our office is something we had never seen before. A
mother-daughter team of 'street persons.' Dressed in black rags, they sit with
their bags and talk. They are there when we get to the office in the morning.
They are there when we leave in the evening.
 
The daughter appears to be in her 20s or early 30s. She is a pretty girl, as near
as we can tell. The mother must be in her 50s...maybe 60s. The two look very
similar � like the mother/daughter combinations you see in skin cream
advertisements. They dress the same. They have the same very English faces.
They have the same expressions and same postures...sitting on the sidewalk
with the backs to the wall. Whenever we pass, they are chatting with each
other � happily, it appears.

"War Criminal says Sorry, Sobs," was the headline in the Nation on February
9th, 2004. Robert McNamara had just done something extraordinary for
Secretaries of War: with tear in his eyes, he apologized for his role in the
Vietnam War. The war made ghosts out of 58,000 American soldiers. On the
Vietnamese side, the total was over a million. This week, McNamara went to
meet them.
 
Why do smart people do such stupid things? The French had already shown
what Western powers were up against in Indochina. De Gaulle had warned
Kennedy that it was a "rotten" country. Still, the United States sent in
troops...and McNamara, to his credit, spent the last 40 years of his life
regretting it.
 
We do not disrespect the shades here on the back page. But once they are
down, we can hardly wait for the autopsy report. We want to know what was
wrong with them. McNamara had a brain "like a computer," say the
morticians. Too bad. He needed more than that.
 
Robert McNamara was described in the obituaries as the "architect" of
the Vietnam War. This is libelous to real architects; as near as we could tell,
the war went on without plans or blueprints. Instead, Robert McNamara took
an economist's approach to war. His formula had only three numbers: how
much damage he could inflict on the enemy; at what price; and how much
pain the Vietcong/North Vietnamese could stand. Later, he discovered that the
enemy wasn't even counting.
 
Long gone are the days when economists thought deeply about how life
actually works. Adam Smith, Adam Ferguson, Anne-Robert Turgot � the
great "moral philosophers" � all died hundreds of years ago. Since then, the
trade has gone bad. They're all numbers guys now. An economist, of the
modern variety, is a statistician...an extrapolator...and a mountebank. If
numbers go up two months in a row, he predicts they will go up another one.
He rarely stops to ask whether his numbers really make any sense.
Instead, he merely adds them up and rolls them out. Thus � at the bubbly top
in 2006 � he was he able to describe the likelihood of default on a certain
derivative instrument as a "Six Sigma event" without laughing. A Six Sigma
event happens once every 2,500,000 days. Then again, when the Bubble of
2002-2007 popped, they happened once a week.

The blogs are full of chatter on the subject. What good is the economics
profession, asks Paul Samuelson, if it cannot foresee the biggest single
economic event in at least a quarter-century?
 
Yet, those same economists � who had failed so miserably at diagnosis and
prevention � they barely hesitated. Rather than spend months in drunken
shame, contemplating their own incompetence, and wondering what a bubble
really is, they denied the wild bubble side of life altogether...and tried
their hands at prescription. President Obama's economics advisors went to
Congress last autumn to predict that without the stimulus measure joblessness
in the United States could rise to 8%! Bernanke made it seem that if the bill
wasn't passed that day, the economy may cease to exist all together. How he
could know the future, when he demonstrably knew so little about the recent
past, was a mystery. Still, the politicians responded by enacting the biggest
bank bailout boondoggle in history.
 
What would have happened had the legislators failed to jump when
economists threw them a bone? We don't know. But we know what happened
after the stimulus measures were passed � they failed to stimulate. The
employment numbers for June showed that economists had misjudged both
the direction and the speed of the oncoming bus. Instead of shifting down, the
rate of job losses increased to 9.5% in the United States. Instead of going
forward, the economy was backing up!
 
Do these setbacks cause economists to stop and wonder if their theories
are bogus and their numbers are nonsense? Nope, they do what McNamara
did. They turn up the heat. They propose to spend more money they don't
have on more programs that don't work. Predictably, Obama advisor Laura
Tyson now suggests that the stimulus thus far is "too small." Other
economists too are talking about a "son of stimulus," that will offer even more
credit to the debt-saturated consumer. Only trouble is, neither consumers,
businesses nor banks cooperate. Despite trillions in cash and credit to the
financial system, lending is still going down.
 
Robert McNamara was as smart as any of today's number crunchers. A
Harvard "whiz kid' with a 'can do' attitude, he was one of the 'brightest and
the best,' the kind of American that makes you proud to be one. He was an
efficiency expert. But everything has its place. Poetry is not much in demand
from bridge builders. In love, war and bubbles, on the other hand, rational
efficiency is at best a second tier concern.

When asked to take the job at the Defense Department, McNamara replied to
John Kennedy that he was "not qualified." That was the last thing he was right
about. As to everything else, he missed the point completely.
 
Sometimes it is the brain that fails. Sometimes, it is something else.

Beware Government Insuring Accounts

What am I missing? Why do the majority of folks blindly accept the shenanigans of the federal government? Why is it advisable to bail out the failures and penalize the productive? Isn't there a moral hazard lurking somewhere in this mix?

In a recent editorial, Peter Schiff reminded me of what my late friend Harry Browne, the former Libertarian Party candidate for president, used to say: "The government is great at breaking your leg, handing you a crutch, and then saying, 'You see, without me, you couldn't walk.'" That maxim is clearly illustrated by the financial industry regulatory reforms proposed recently by the Obama administration. ("Would you like a broken arm, or would you prefer a broken leg?")

Best Stocks Investment

Every economic problem we face can be directly traced back to the federal government and the interfering laws that it continually passes. Remember the Resolution Trust Corp. back in the 1980s? It became "necessary" to bail out the savings and loan industry because so many of the S&Ls gambled wildly with their depositors' money. Sound familiar? How could the S&Ls of the 1980s and the too-big-to-fail banks of the '00s make such horrible business decisions? Were/Are the management teams just stupid or are they also incompetent?

Consider this: We've had a record number of bank failures just this year. As of June 19, 2009, the FDIC has closed 40 banks at a net cost of over $11.5 billion. Are you worried? Why not? Oh, your account is insured. By whom? So when the management of the bank that controls your deposits makes stupid business decisions, you don't care? The FDIC will bail out your account. Not only that, the "insured" amount was increased from a "mere" $100,000 per account to $250,000 this year (this extra coverage expires at the end of 2013 and reverts back to the $100,000 figure in 2014 as currently scheduled). Do you see a slight problem here?

Just for giggles, suppose there were no FDIC and your deposits at any bank or S&L were simply not insured. Would you then perhaps have a slightly different outlook as to the safety of your money? Would you perhaps behave somewhat differently when selecting a bank in which to deposit your funds? Why? Do you now see that the FDIC is a federal government-sponsored insurance scheme to protect you from greedy and stupid bankers? Or do you perhaps see that the FDIC actually facilitates excessive risk-taking on the part of the bankers, since they have nothing to loose? Do you suppose there might be a slight moral hazard hiding somewhere in this mix? If the bank did not have the FDIC insuring your deposit and that same bank had to compete in the open, free market for your deposit account, would you suppose that the bank management might behave in a slightly more conservative manner? Wouldn't you behave in a slightly more conservative manner when selecting a bank?

Now consider the actions of the too-big-to-fail companies, be they banks, insurance companies, Freddie and Fannie, or even automobile manufacturing companies. What's to restrain the management of those companies? If they mess up, the government will protect them. And as we've all observed, the very folks that made the stupid and reckless business decisions will still get their multimillion-dollar bonuses. Would you be willing to make a wild guess that maybe there is a slight moral hazard hiding somewhere in this scheme?

What about the business management that continues to make prudent decisions and continues to operate profitably? What is their incentive? How are they rewarded? The same federal government that bails out the too-big-to-fail companies totally ignores the hardworking, successful managements of the smaller businesses. Actually, it's even worse than that. The companies and individuals that are successful now get penalized, because their tax dollars are used to bail out the unsuccessful. They get to subsidize the failures. Isn't that a wonderful reward for doing a good job?

So I again ask what am I missing? Am I the only person (or only one of the very few) concerned? When I/we comment about these obvious inequities, does anyone pay attention? Does anyone question the wisdom of the federal government's decisions? Based on the feedback I've received from the congressmen and -women who claim to "represent" me, they certainly don't care. Aside from the folks who attended the various Tea Parties on April 15, the rest of the folks don't seem to care. What am I missing?

One of the factors that caused me to write this white paper is the incredible discussion of so-called "green shoots" from our eminent Fed head "Helicopter" Ben Bernanke and the observation of the recovery light at the end of the tunnel that now seem to be so visible to the mainstream media. As Ronald Reagan used to say, the media know a great deal that just isn't true.

There has been a tremendous recent effort to create "transparency" in and from government. Using that as a diversionary tactic, the public's attention is now away from the facts. While perception is important and can mask facts for a period of time, it cannot avoid ultimate economic laws of nature. In this case, the public's attention is being diverted from the undeniable facts that we are nowhere near the bottom of this economic downturn. Banks are still hiding toxic waste in their off-balance sheet accounts. These virtually worthless assets are not just going to disappear with no one noticing. Sooner or later, these near-worthless assets must be accounted for. The so-called bank stress tests were a joke. The intent was just to give the public the perception that the worst is over.

It isn't. We have at least one more major leg-down in our economic future. And I believe that leg will take us to a Dow of 5,000 and perhaps as low as 3,000. Yes, the Dow may continue upward to 10,000 from its current level of 8,500, but then it will head down once again. All we have to do is look at Japan 1989-present and our own economy from 1929-1932. Oh, yes, it can happen again! Absolutely nothing has been done to prevent a repeat of this history. In fact, what has already been done by the federal government interference with our markets almost assuredly guarantees that it will happen once again.

Best Stocks For 2010

What is it that will happen? A depression. Why? Because too many government interferences have occurred over the decades since the last depression. Perhaps it might be helpful to first define the difference between a recession and a depression ― at least by my definitions of the terms.

Business cycles frequently become what are referred to as overheated economic cycles. (Note that every one of these so-called overheated situations is a direct result of government monetary interference with what otherwise would be free market behavior.) So a so-called cooling-off period of adjustment then takes place to correct the malinvestments that were made during these periods of irrational exuberance (thanks, Alan). These adjustments happen rather quickly, and then the recession is finished. You've heard it called the "V" recession because we tend to enter quickly but then we tend to also recover quickly. Today, the mainstream is talking of a "W" recovery, meaning a double in-and-out recession. But recessions usually take place rather quickly and are then finished. In a depression, structural changes to the economy actually occur and then it takes years to readjust. Can you say Japan? The new version of the resulting economy is a major change from the prior economy. Old bubbles are never reinflated, but new bubbles are ultimately formed. Note that our federal government is trying to reinflate the last bubble, meaning a return to a consumer-led economy. It simply won't happen. We'll waste a tremendous amount of taxpayer money and it will all be for naught.

Ultimately, a new bubble will be created. In the past decade, we've enjoyed the Greenspan dot-com bubble followed by the real estate bubble. Now we are starting to form what I see as a bond bubble. In the process, everything in the path of this "recovery" is being socialized: banks, insurance companies, mortgage lenders, even automobile companies. Yet to come will probably include national health care. If you think private health care is expensive, wait until you see how much "free" health care costs. But this is what I mean by "structural" changes. It's new territory for most of the participants.

What do you think will be the end result: inflation or deflation? I think we're in for both deflation and inflation ― in that order. Short-term deflation, but longer-term inflation. So I'd invest to protect myself against inflation. That means precious metals, energy, and commodities such as foods and water. Period. For the foreseeable future. Speculations would be in the area of biotech, nanotech, and stem-cell-tech.

I also hope that my comments are just being realistic ― not doom and gloom. I admit my emotional reactions may be affecting my opinions. I hope not. But I'd rather be overprepared than underprepared or unprepared.

Considering that the value of our dollar is being actively destroyed by our government, how will you protect yourself and your family from further destruction of the dollar? Are you aware that the dollar is now worth 4% of what it was worth when the Federal Reserve was created with the charter mandate to provide a stable dollar? What did I just say? Are you happy with 4 cents of purchasing power left for your hard-earned 100-cent dollar? Don't take my word for it ― it's on the Bureau of Labor Statistics (BLS) Web site. My recommendation includes making investments in areas that are not dollar denominated. As such, you can expect to benefit from a currency hedge as well as from the performance of the investment itself. Today, all currencies are fiat, so this becomes a relatively moot consideration ― see my next comment below.

Still another area to consider is foreign exchange. Consider Swiss francs and Chinese renminbi (yuan) for starters. Also consider the Brazilian real, due to the country's incredible discovery of offshore oil. The real would be a speculation, while the franc and yuan are slam-dunks. Norway's kroner is also a consideration, due to the country's oil economy. I'd stay away from the Canadian loonie simply because Canada's economy is so closely tied to the US'.

I believe we are in a depression, not just a recession. By that, I mean we're in for major structural changes, not just a clearing of some malinvestments that got out of hand in recent years. The Dow could go as high as 10,000 before the next drop, but there will be another drop. As I said, I expect the Dow to go as low at 5,000 and possibly 3,000. I know how that sounds, but that is what the markets are telling me. While we will then recover, it will be a long, drawn-out recovery. Years, not months. This is not the muddle-through recession that so many expect. I'm guessing we'll remain in this morass for at least five years, if we're lucky. We could go the way of Japan, which hasn't recovered yet after two decades! The more Washington interferes with the markets, the more severe the problems then become and the longer the recovery period. As Bill Bonner is fond of saying, we'll see "a corrective force equal and opposite to the deception and delusion that preceded it." And of course, we could just be headed into outright and total socialism, so all this attempted planning could just be for naught.

Best Stocks Market

But back to my original question: What am I missing? What do you know that I seem to be overlooking? Why am I not in agreement with all the mainstream economists and government officials such as "Helicopter" Ben Bernanke and Timothy tax cheat-in-charge-of-the-IRS Geithner? Why is it OK for the U.S. government to "fire" all the profitable Chrysler dealerships because they donated to the Republicans while keeping the unprofitable Chrysler dealerships because they supported the Democrats? Why is it OK to medically insure the 47 million uninsured at the expense of the folks that actually pay the premiums? Why is it OK to bail out AIG because it insured Goldman Sachs? Why is it OK to "gift" a major ownership of General Motors to the UAW simply because the union supported the Obama election campaign? Why is it OK to stiff the Chrysler and GM bondholders who, by USA contract law, have first right to the assets of the corporations in case of a bankruptcy? Why is it OK to simply ignore and override centuries-old corporate law? Why is it OK to issue presidential edicts that circumvent corporate and civil law? Why? What am I missing? Why?

There is much, much more to be said on this topic. However, what I've already written is probably more than enough for the moment. By the way, were I a registered broker or financial adviser, the securities rules and regulations would prohibit me from telling you the above. So don't be too hard on your current financial adviser. The government would suspend his/her license for telling you the truth.

Nothing Shines Like Gold Stocks

Asset classes go up and down. Precious metals are, of course, another asset class. They move with the economic tides. In the past 30 years, gold has rocketed up and plummeted down.

At several points in the past 30 years, things were so bad that gold sellers were like the proverbial Maytag repairman. They led lives of quiet desperation about which no one cared. Because like the late Rodney Dangerfield, gold got no respect.

Heck, between 1999-2002, the British government sold a large amount of its national gold, nearly 395 tonnes (metric tons), for about $275 per ounce. The Bank of England used the proceeds to purchase (ahem) "high- yielding" assets, like bonds. I suppose it seemed like a good idea to somebody. But really. In hindsight, how dumb was that? The British used to fight wars for gold (remember the Boer War, anyone?) Now they're selling gold to buy bonds? They used to hang people for lesser crimes.

Last March 2008, gold sold for over $1,000 per ounce. Then the price retreated 30% as oil rocketed from about $100 to $147 per barrel. But even though gold fell back in price, it was still selling, on average, for almost three times what the Brits took in less than a decade ago. You didn't do that with bonds. So the lesson is that we have to keep our eyes open about cycles and trends, even with something like gold.

Just in the past six months, almost every nonprecious metal asset class has been headed down. The stock markets have been tanking. Prices for everything from aluminum to zircon are way down. Oil has been bottom- fishing. The world is sliding downhill into deep recession. It's a long litany of bad news out there. Except for precious metals, which have held their own.

Lately, precious metals have been in a stealth rally. It was not front- page news, until last week when gold touched the $1,000 mark again. But the operating gold miners in the OI portfolio, hit lows in October 2008. And they've all been rising in the markets ever since.

What's going on? It's a worldwide trend. Investors have been flocking to gold and silver. There's a money migration going on. And I mean BIG money is migrating. It's like those herds of zebras or wildebeests or gazelles in Africa. When they migrate, the earth shakes and the ground is just a moving kaleidoscope of hides and footprints. The dust clouds blow high into the sky.

Yes, the world economy might be in a recession. People across the world are worried about their job and security for their family. But other people with big bucks are scooping up gold and silver. Those buyers are looking for investment safety.

Moneyed investors don't trust the world's governments or paper currencies. So they are going with gold and silver. The mines and mints are having trouble keeping up with demand. Exchange-traded funds (ETFs) are buying huge volumes of gold and silver. (And they ought to be buying more. At the margins, at least, it appears that even the ETFs are holding "paper" gold rights, as opposed to the real McCoy metal.)

Let's look at silver. In January 2006, the total silver held in ETFs was about 40 million ounces. By January of this year, 2009, the total silver in ETFs exceeds 280 million ounces. That's an increase by a factor of seven in just three years.

The story with gold is just as dramatic. Who ever heard of a gold ETF until just a few years ago? But by the end of 2008, gold holdings of ETFs reached a record level of 1,090 tonnes, according to the World Gold Council (WGC). Thus, ETF holdings now exceed those of Switzerland and many other large and important nations. (Check the listing below.) In the fourth quarter of 2008, investors purchased ETF gold interests representing 96 tonnes of gold. (Far more than the total gold reserves of Australia.) This followed the purchase of an unprecedented 145 tonnes (more than the reserves of Saudi Arabia) in the previous quarter, according to the WGC. These are astonishing levels of demand, where there was almost none just a few years ago.

Much of the gold in the vaults of the worlds' central banks has accumulated over many decades. Much of the U.S. government gold reserve, for example, dates from the national gold confiscation of 1933 under President Franklin Roosevelt. Roosevelt had a compliant Congress to do his bidding. Eventually, even the Supreme Court backed him up. So what's that old expression? "It CAN happen here."

Many other countries of the world are currently buying gold, fresh from the mine. Today, China is the world's largest gold-producing nation, and its central bank is buying and building reserves. Russia, too, has a tradition of holding gold and today is acquiring gold from its own mine output and via purchases on international markets. Or look at tiny Qatar, a small nation in the middle of the Persian Gulf. Qatar had only 8 tonnes of gold about three years ago. Now it has 12 tonnes, an increase of 50% in a very short time. What do the Chinese, the Russians or the Qataris know? They know that they want gold. They can buy it. They will hold it. And they are hoarding it.

I've mentioned on many occasions that I like holding precious metals. I like holding metals as an investment and I just like the feel of the stuff. At the "elementary" level (yep, that's a pun), you can hold physical metals. If you've never felt the coolness and heft of a shiny gold $50 Eagle or a Canadian Maple Leaf in your hand - let alone a fine old specimen of a $20 coin from the days of old in the U.S. - you've missed something. Really, the only thing better than holding an Eagle or Maple Leaf is holding an entire roll of 20 of them.

When I was in South Africa last year, I visited a refining operation and actually picked up a gold brick. It was almost right out of the melting pot. The brick was still warm, and the darn thing weighed about 75 pounds. That's what I call "useful weight gain." Too bad I couldn't bring it home with me. But the armed guards at the refinery might have objected.

I've never made a formal OI recommendation for buying a particular kind of gold or silver coin, or ingots from this mint or that or any such thing. Those kinds of gold purchases are too hard to track in a newsletter like this. So I've recommended gold and silver miners and their shares. But over the past couple of years, I hope you've had the chance to acquire some real metal for your portfolio. Agora Financial has been banging the golden drum for at least 10 years. If you have never bought any gold, it's still not too late. I think that the recent visit to $1,000 is just the beginning of another great wave of gold buying. I won't be surprised to see $3,000 gold.

Coins and ingots are the kinds of things you keep in your bank safe deposit box or in a well-hidden home safe. Some people keep them in their "second" home safe. Why a second safe? Well, the first safe is the one with a few hundred bucks of cash and some good-looking costume jewelry in it. You would open the first safe if a robber broke into your house and held a gun to your head. (Sorry, I'm not kidding. We live in a tough world.)

And for as much as I urge you to own some gold or ingots, you should never talk about it. OK, you might tell a few family members or maybe a trusted friend or two. But the fact that you have a stash of real gold is too valuable to broadcast or advertise. As I said above, "It CAN happen here." It already has happened here. It might happen again, if things get too rough out there.

 

 

U.S. Hits New Oil Gusher

29 days...

That's how long it took a barren stretch of land from Montana through North Dakota, known as the "Bakken," to catapult from a forgotten region...to America's hope for energy independence.

The incredible story behind the largest oil find in US history has plastered itself across every major financial outlet. It's been featured everywhere from CNBC and Fox News to The Wall Street Journal.

Every one of them is getting excited for the same reason we are...there's a massive deposit right under the frozen soil -- so large -- it could meet America's oil demand for the next four decades.

But here's what they don't tell you...

Thanks to certain technological advancements (and three very special companies), these reserves just created a new generation of wealth for savvy American investors.

With the rapid return coming from this unique group of companies, the media's already dubbed early investors the "Montana Millionaires."

It's easy to see why. In just the past 11 days -- since the story started to take-off -- each of these outfits gained an average of 21.3%.

And they're just getting started. As you'll see in just a minute, by the time all this is said and done, Montana Millionaires could collect as much as 1,000% in profits.

Below, I've attached my full report, detailing the entire situation and exactly how you can join the Montana Millionaires... before it's too late.

The best part is - you don't have to be a Montana resident to take part.

As I write this, oil is closing at roughly $113 a barrel.

But imagine being able to extract it... for just $16.

The price of gas you'd pay at the pump would--quite literally--drop in half.

Well, in Richland County, Montana - about 470 miles outside the state capitol of Helena - America's greatest wealth boom is fast - and secretly - underway.

To get right to the point...

It's the largest domestic oil discovery since Alaska's Prudhoe Bay and has the potential to eliminate all American dependence on foreign oil.

The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable... at $107 a barrel, Montana is looking at a resource base worth more than $5.3 trillion.

"When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea." says Terry Johnson, the Montana Legislature's financial analyst.

"This sizeable find is now the highest-producing onshore oil field found in the past 56 years," reports The Pittsburgh Post Gazette.

It's a formation known as the Williston Basin, but is more commonly referred to as the "Bakken." And it stretches from Northern Montana, through North Dakota and into Canada.

For years, U.S. oil exploration has been considered a dead end. Even the "Big Oil" companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken's massive reserves... and we now have access of up to 500 billion barrels.

And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!

 

That's enough crude to fully fuel the American economy for 41 years straight.

To America, this discovery couldn't have come at a better time. You see, when all the wells are finally drilled and pumping, we won't have to import any foreign oil from the Middle East. Not a single drop!

For investors like you and me, it offers a "once-in-a-lifetime" chance to profit on ever-rising demand for oil. And we can do it by getting in on the groundfloor of the next great oil boom...

Even the US Government has confirmed the Bakken as a huge oil formation. The government's own Energy Information Administration (EIA) issued this press release:

"...with new drilling and completion technology taken into account, the resource base for the entire formation is potentially much larger. A study provides estimates ranging up to 503 billion barrels of potential resources in place."

Oil in the Bakken isn't gritty, dirty and expensive like the Alberta oil sands.

We're talking light, sweet crude oil - the least expensive and easiest to refine oil out there.

And here's the kicker...

 

Montana lawmakers recently passed a bill that creates an 18-month tax holiday for oil wells drilled and completed in this area.

This legislation has caused a massive increase in exploration and has blown the top off this hidden ocean of oil.

Since this bill was passed, a small group of investors have been taking advantage of this untapped resource and are making thousands of dollars each month.

The good news is that you don't have to drive up to Montana to get your piece of the pie.

In fact, I have uncovered three companies that are drilling in the Bakken right now and are seeing returns and revenues second to none...

"It's a good, old fashioned oil boom," says Dr. Paul Polzin, a University of Montana economist.

One company has been there since the beginning of the Bakken boom... and is already selling its oil to the market. And the best part about it - this company is sharing its Bakken profits with everyday investors.

You see, for the past seven years, this company has distributed its net profits in the form of MONTHLY cash payments. They have sent their shareholders profit-sharing checks for 84 months in a row... and the check amounts are on the rise.

Straight from the company's annual report:

That's how huge and insanely profitable the Bakken play is becoming.

The other 2 Bakken companies I've uncovered are true "wildcatter" plays... with the potential to return investors 100-to-1 on their money. They currently trade for $7 and $5 a share, respectively.

Amazingly, this monumental oil discovery - and these 3 companies - have remained a secret.

Before I explain this opportunity in more detail, let me be perfectly clear - I have never come across a more ideal profit scenario.

In this letter, I'm going to tell you everything that I've learned about the Bakken discovery, why it is still a secret, who's involved, and - more importantly - how to profit from it. Especially before the rest of the investment community finds out.

Mark my words, an opportunity like this only comes around once every so often and I can GUARANTEE that this will not remain a secret for much longer.

In fact, some of the local media are beginning to report on it...

"People in the region 'are just starting to see the potential' in this new oil play" - Grand Forks Herald, Nov. 4, 2007

"The huge potential of the Bakken play has industry and government officials gushing with superlatives." -CanWest News Service, Dec. 10, 2007

"Montanan residents with oil royalties have, literally, been made millionaires." -Missoulian.com, Dec. 2, 2007

As we all know - the people who make the most money are the people who get in first.

And for the shareholders of oil companies that make huge, new discoveries, the potential payoff is mind-blowing.

There are several companies that have seen similar situations to the Bakken - of course on a far smaller scale - and have rallied hundreds of percent in just a few months. If these companies can see their stock prices increase by 300%, 400% or even 500% with oil discoveries of 1 or 2 billion barrels... just imagine what a discovery of up to 500 billion barrel of oil would do to a stock's price!

Here are a few examples...

Bankers Petroleum is a company based in the Patos-Marinz Oil Field in Albania. Upon discovery of its 1.96 billion barrels (1/250th of the potential of the Bakken Basin) the company's stock price increased 468% in just 7 months!

Let me fill you in on the details...

It was a true "rags to riches" story.

Then there's Petrominerals, a company whose primary drilling area is in the Llanos Basin in Colombia, South America. When uncovering a 1 billion barrel potential (1/500th of the potential of the Bakken Basin), this best stock jumped 775% in just 10 months!

Lastly, there's the example of BPZ Resources, a Peruvian company that has concentrated on two main oil fields: The Corvina and Albacora Formations. Recently, it was reported that the Corvina Field holds reserves of 60 million barrels and that the Albacora field hold reserve of roughly 500 million barrels (1/1000th of the Bakken Basin Potential) and the stock price rocketed 449% in just 8 months!

As you can see from the charts above - the potential is huge when a company makes a new discovery. And with the Bakken being exponentially larger than any oil field listed above, there is no telling how high the stock prices of the companies that I have outlined below will go - 400%... 700%... 2000%... maybe much, much higher.

Keep reading and you will soon find out the secret way to become a Montana Millionaire and get in on the ground floor of this unprecedented oil discovery called the Bakken Basin...

How a starving geologist found the largest oil field in modern day history

A few years ago, a Billings petroleum geologist by the name of Dick Findley was working out of his basement - searching for oil in an area that had been barren for over 20 years. Things were rough and he was struggling to get by.

He even flirted with the idea of getting a second job as a restaurant cook. On a diet of nothing but Ramen noodles and hard-boiled eggs - how could you blame the guy?

But one thing kept Dick going - an unprecedented suspicion that this area, known as the Bakken Basin, contained more oil than Saudi Arabia, Iraq and Iran combined.

The Bakken Basin, located in Montana, North Dakota and Saskatchewan - was at one point coined "one of the largest disappointments in the oil industry."

During this period, technology lacked the efficiency to make drilling worthwhile. And when oil hit all time lows in the late 90's - the Bakken Basin was basically abandoned.

But Findley kept digging around.

And through sheer luck, he and his partner stumbled upon a porous layer of dolomite, 9000 feet below the ground of a ranch just outside Sidney, Montana.

This stumble turned out to be the largest on-shore oil discovery in decades.

Little did he know, but Findley discovered enough oil to fuel the U.S. for 41 years.

And the oil field he found - and the technology that he helped develop to extract the oil - has recently made millionaires out of ordinary Montanans...

"It was a light bulb kind of thought - When I discovered that the oil was in the middle shale and it continued for 50 miles, I called my partner and I said, 'I think you'd better sit down...we found a giant oil field," says Findley of his initial discovery.

Findley soon took his discovery to energy giant Haliburton, which backed him financially and provided the support to help him develop the necessary drilling technology to efficiently take advantage of this huge oil discovery...

The Technology That Makes It All Possible

It's true that the oil industry has known about the Bakken Basin for over 20 years - but the problem always was that no one knew how to get at the oil. The technology just wasn't there. Until now...

But even today, the exact science behind getting the Bakken oil is still somewhat of a secret.

I mean, think about it for a minute...

Imagine you found a massive, but trapped gold mine in your neighborhood. Now imagine you created a technology to mine it - a technology unique to this specific gold mine.

Would you tell anyone how to do it? Would you reveal your secret?

No, of course not. You would want to make as much money as possible, before everybody else found out about it.

Well that's exactly what's going on with the Bakken Basin.

"It's too early in the play to be sharing information," says Bill Walker, a Denver-based geologist with Headington Co.

Bill says his company has recently developed the technology to drill the Bakken down effectively - and it's one of the company's closest guarded secrets.

Even though the technology I'm talking about is rather well known, actually using it successfully is the big secret.

The technology is called Horizontal Directional Drilling or H.D.D., and only a few companies have mastered the process.

How Does Horizontal Directional Drilling Work?

Getting oil out of the Bakken is not a matter of poking a hole in the ground until you hit a soft spot full of oil - which is the old vertical drilling technique.

The Bakken is woven with rocks, and that rock-layer is wide but very thin. Thin enough that vertical drilling is horribly unsuccessful.

It was Findley's idea to drill a well sideways - a technique called "horizontal directional drilling," in which wildcatters drill down to the oil and then kick out their well thousands of feet to the left or right.

Sort of like an underground sprinkler. Here is what it looks like:

But horizontal drilling alone isn't enough to get the oil out of the ground.

Findley had to work with Haliburton engineers to figure out a way to both drill sideways and fracture the rock to release the oil.

Both horizontal drilling and fracturing had been done before, but never together. This was Findley's revolutionary idea.

These combined technologies made drilling the Bakken Basin possible and extremely profitable.

In fact, the technique is so efficient that companies - like the ones I will tell you about below - are extracting oil from the Bakken at an amazing cost of just $16 a barrel!

And with oil now over a $100 a barrel - the companies below are making a killing - and you can too if you get in quickly enough...

The Best Way to Get in on the Groundfloor of One of the Largest American Oil Booms in History

I've spent the past 6 months researching every possible way of making money with this monumental oil discovery.

I've found a total of THREE ways.

Each opportunity has a unique advantage. And whether you're an income investor or a best stock investor, there is a way for you to get in on the Bakken boom, before the herd does...

Montana Millionaire Opportunity #1

The first opportunity is an explosive growth stock that was recently upgraded to the AMEX exchange in February 2007.

Since being upgraded this stock has gone from $3 to $10 - that is a 233% gain in just over one year.

And that is just the beginning...

The main catalyst for company's stock price spike is an increase in its acerage position in the Bakken Basin to 50,000 gross / 16,000 net acres. This additional acquisition increases its total Bakken position to about 105,000 gross / 52,000 net acres. That's huge.

They are gobbling up land in this precious region with fervor second to none.

In the past 12 months, insiders of the company have purchased more than 120,000 shares. They know that the Bakken play is going to be a fortune-maker.

With a deep foothold in the Bakken and the expansion of wells throughout the region - there is no telling how high this stock could go. Companies in similar situations have seen their stock rise to over $200 a share. Right now you can buy it for $7 a share.

But let me be very clear: we are talking about the potential of several thousand percent gains. This company trades at a market cap of just $196 million. So it's very small. When this company starts pumping oil out of the Bakken, its market cap could balloon to $2 billion! Right now the company stock is under the radar. But now that the U.S. Geological Survey has officially launched its Bakken report, this company could jump as much as 400% in just couple of days...

By combining experienced management, low overhead and aggressive acreage acquisition, this company is one of the nation's fastest growing small-cap gas and oil exploration and production companies.

"We are excited to announce the expansion of our [Bakken] acreage position," said the Chief Executive Officer. "Our position in this productive resource play is well situated among acreage held by leading Bakken exploration companies. Assuming full development of our [Bakken] leasehold on 640-acre drilling units, [our] acreage would result in approximately twenty-five net wells."

With the newly acquired acreage, this company is poised for profit over the next couple months, which means higher stock price and more cash in your pocket...

Montana Millionaire Opportunity #2

The second Montana Millionaire opportunity is an aggressive income play. This company has been involved in the Bakken for years and has significant acerage in the region.

This company is a high-yielding equity investment in the oil and natural gas business. They have built a balanced and diversified portfolio of producing properties across the United States with a focus on large resource plays, like the Bakken.

They have a strict discipline of paying a significant portion of their cash flow to investors each month. And with a payout ratio of 190% and a dividend yield over 11%, it's hard to argue otherwise.

But here's the rub...

This company is also a significant growth opportunity. Compared to the industry this company is trading at a heavy discount.

They have a forward P/E ratio of 14 compared to an industry average of 18.3 and a price to sales ratio of 5.76 compared to 11.04 for the industry.

Based on conservative valuation models, we believe this stock has the potential to double in the next 12 to 24 months.

That's on top of the cash payments it pays out every single month.

Montana Millionaire Opportunity #3

The third opportunity to take advantage of the next great American oil boom is through an independent exploration, development and production company that utilizes a revolutionary 3-D seismic imaging technology to systematically explore and develop domestic oil and gas reserve.

The use of this 3-D seismic technology reduces drilling risk and compounds their ability to grow reserves and production volumes.

Just recently this company announced three monumental Bakken discoveries and a plan for a significant acquisition of acreage in the Bakken Basin to the tune of 67,500 acres - bringing the company's total Bakken acreage to 219,000.

And their oil revenues have been booming. Take a look:

As a result, their profits are expected to grow at a huge rate.

According to ratings company Morningstar, the company's EPS growth is expected to grow a whopping 172% from its 2007 earnings.

Take a look:

This company, like the first one, is a huge growth play. It is currently trading at a huge discount with a price to sales ratio of 2.35 compared to an industry average of 11.04.

As the true potential of the Bakken is revealed by the U.S. Geological Survey - this company is sure to trade at a fair valuation - which comes to a 477% gain.

Not to mention that over the last 7 months there have been nothing but purchases with insiders...

This company is setting up for major success and the insiders know it - this best stock to buy is going nowhere but up over the next couple years...

This is a once in a lifetime opportunity to get in at the beginning of an oil boom - for next to nothing...

Now listen closely, I've put together an exclusive report that details the 3 companies currently in the Bakken ready to get America off of Mideast oil.

I call the report The Bakken Billions: The Next Big Oil Rush.

Below I will show you how to obtain your free report and become a Montana Millionaire yourself.

But first...

Let Me Introduce Myself and My Research Team...

My name is Brian Hicks. I'm the president of the investment research company Angel Publishing. I've spent my entire investment career uncovering the market's best moneymaking trends and developing friendships and contacts with some of the brightest financial minds around the world.

I literally travel the world looking for the best investment opportunities.

 

I've taken research trips to remote, historic oil boomtowns like Desdemona, Texas, the Powder River Basin in Wyoming and Kiev, Ukraine. We've been to the heart of the oil sands industry, Fort McMurray in Alberta, Canada. And I've taken helicopter flights over the Barnett Shale, to see first-hand the natural gas boom.

My investment insights and ideas have landed me frequent spots on financial shows like CNBC, Bloomberg, Fox, CNN and Fox Business.

Recently, I co-authored a book with Chris Nelder, an energy expert who has designed and built dozens of solar energy projects. This is a guy who understands the energy market inside and out . . . from energy's worst problems to its brightest solutions.

Together, we wrote Profit from the Peak: The End of Oil and the Greatest Investment Event of the 21st Century.

And that's why I'm writing to you today. The energy crisis in the 21st Century is, without a doubt, one of those investments where you can achieve a lifetime of wealth. . . a sector that could make you a legendary fortune.

When you sign up for The $20 Trillion Report, you'll immediately get access to The Bakken Billions: The Next Big Oil Rush.

But that's not all you'll get . . .

I have 4 more money-making reports to give you.

Here's what I suggest...

Test-drive The $20 Trillion Report

There's a super-easy, no-risk way to receive everything I've mentioned in this letter, including...

 

Energy Investment Report #1: The Bakken Billions: The Next Big Oil Rush.

The Bakken Basin is home to an estimated 503 billion barrels of oil.

Right now, 3 companies are there producing oil. All 3 have the potential to be huge moneymakers for investors.

Energy Investment Report #2: Canada's First Underground Refinery: How to get Access to 31.63 Barrels of Oil Resource for just $47.

With oil trading over $100, every 100 shares you buy gives you access to $316,300 of oil resource.

So far, investors who own this stock have earned over 225% in 2007 alone!

 

Energy Investment Report #3: The Mother Lode Up North (over 20 companies in the region)

We'll tell you about an ETF dedicated to the Canadian oil sands which provides stellar growth in addition to paying a nice, steady dividend.

This is our favorite fund for the future. We consider it a no-brainer, as Canada has become America's #1 oil lifeline. The Canadian oil sands are also one of the few places in the world that'll experience significant production growth.

Energy Investment Report #4: Our Favorite Oil Stock Under $5.

I'll reveal our favorite oil stock under $5 a share . . . a stock we think has the potential to hit $26 in the next three years. It's a Texas oil and gas company that's doing something unique - reviving old oil fields and squeezing out what's been left behind. For instance, did you know that for every barrel of oil that was pumped out of the ground in America, two barrels were left behind?

Well, this company is going after it using EOR, enhance oil recovery.

 

Energy Investment Report #5: The Energy Trade of 2008.

It's a stock in which one American billionaire recently bought 395,000 shares. The company is an "alternative energy" company . . . and this billionaire bought those shares for $13.95 apiece on the open market. Not exactly chump change.
He made this same move last summer, but with a different top stocks for 2010. And it rallied 100%.

That's why we're calling this "The Energy Trade of 2008." It currently trades for around $13 . . . but we think it'll reach $30 in the next couple of months.
And lastly, you'll receive my book, Profit from the Peak, absolutely free of charge.

Profit from the Peak is a roadmap that shows you how to profit from the rise of oil prices. And I'll give you a copy absolutely free.

Just click on the link at the end of this email and let my team know that you'd like to begin your membership in The $20 Trillion Report.

You'll have plenty of time to examine my research and my investment philosophy. If you decide The $20 Trillion Report is not for you, simply let me know within the first 30 days by phone or mail and we'll completely reimburse you for the entire subscription fee of $99.

You can even keep my book, Profit from the Peak: The End of Oil and the Greatest Investment Event of the Century.

And in a minute, you'll get access to it all.

Before I give you the specifics, let me quickly tell you about one of the investment ideas I'm extremely excited about right now . . .

The Energy Trade of 2008

Thanks to my connections and contacts in the global energy industry, I have uncovered a little-known way you can earn more profits from the energy bull market...

I'm calling it "The Energy Trade of 2008."

Simply put, some of America's richest investors are placing huge bets on energy, and especially "alternative" energy.

There's an alternative energy stock that currently trades for around $13 a share. Its market cap is $524 million... and it does $114 million in annual revenue. So as you can see, it's a real company with real revenues.

But more importantly, a billionaire recently bought 395,000 shares of it. He bought those shares for $13.95 apiece on the open market. So he must think - or even know - that the stock is going a lot higher.

He bought another energy stock last summer and it rallied 100%.

We think the stock he's buying now is an easy double in 2008. And you can get your hands on it immediately when you become a member of The $20 Trillion Report.

How to Get $20 Trillion for Just $99

The $20 Trillion Report costs only $99 for an entire year of research and reports.

Let me ask you a simple question: Is it worth paying $8 and change a month to learn about the best energy investment opportunities you'll hear about nowhere else?

We absolutely believe it is. If we didn't believe in the research my team and I are doing, we wouldn't spend weeks traveling to the Barnett Shale, Fort McMurray, Alberta, Kiev, Ukraine, Wyoming and Montana.

I'd like you to have the opportunity to try The $20 Trillion Report without feeling obligated to pay a single penny.

When you sign up for a trial subscription to The $20 Trillion Report today, you will receive:

Monthly Issues of The $20 Trillion Report. You'll receive every copy by email quickly and efficiently.

Hotline Updates. In addition to the monthly issues, we'll also send you a weekly hotline update.

Research Report #1: The Bakken Billions: The Next Big Oil Rush.

Research Report #2: Canada's First Underground Refinery: How To Get Access to 31.63 Barrels of Oil Resource for just $47.

Research Report #3: The Mother Lode Up North (over 20 companies in the region).

Research Report #4: Our Favorite Oil Stock Under $5. This company is doing something unique - it's bringing old oil wells back to life.

Research Report #5: The Energy Trade of 2008.

Take the next couple of weeks to have a close look at my work.

If you don't agree The $20 Trillion Report delivers the safest and most lucrative energy investment ideas and recommendations you've ever received, please contact my staff within the first 30 days by phone or regular mail and we will see that you receive full reimbursement for the money you've paid. The longer you wait to get started with these investments, the less money you will have in 2008 and beyond.

Make $10,200 or more from Top Stocks

105% in just three months…

Run-ups like that aren't typical. But that's exactly what's happened to crude oil just since this past March.

And according to Goldman Sachs, this is only the beginning. Analysts conservatively predict that prices could shoot to $95/barrel in the short term, and exponentially higher from there.

Oilman T. Boone Pickens says, "If you don't think we'll see $200 to $300 oil… you are kidding yourself."

And now this shocking news…

Oil prices are soaring so quickly that the International Energy Agency just increased its world-oil-demand forecast for 2009… midyear! According to IEA analysis of coming demand, we can expect demand to spike an average of $3.6 million barrels… per month!

You've probably already felt the effects of this mega trend at the gas pump. Prices have jumped 60% so far this year.

But how can you possibly take full advantage of it without taking on unnecessary risk?

Yes oil stocks in 2010… funds… commodity futures… can all hand you windfall profits – if your timing is absolutely perfect. But the rewards just don't outweigh the pitfalls if one of these investments heads south. Instead…

The answer lies in a little-known, government-authorized program. It allows you to collect checks each month —automatically – from the oil industry.

Insiders refer to it as the "Gas Rebate Program".

In total, you could make $10,200 or more. And this report shows you exactly how. But I must warn you, the deadline for the August 14th payout is fast approaching.

So I'll get straight to the story…

The Best-Kept Secret in this $1.6 Trillion Dollar Industry

As a former analyst for a Wall Street bank with $356 billion in assets under management, I've seen my fair share of "get rich quick" schemes.

And I must admit, I was skeptical when I heard about this "gas rebate" program. But in the eleven months I spent researching this opportunity, I discovered that it is very real… and can be very profitable.

This "Gas Rebate" Program dates back to 1985 when gas prices spiked.

A gallon back then averaged $1.20. Inflation-adjusted that's about $3.00 today.

It was the perfect time for government intervention.

So they passed legislation that required certain energy companies to distribute "rebate" checks to everyday people.

But over the years as gas prices retreated, people forgot about the program.

Even last year, when prices reached an all-time high, only a handful of Americans were turned on to this opportunity. As Marketwatch recently revealed, "Few people know about [the "Gas Rebate" Program]… but this is a great income generator."

In 2008 alone, the program paid out $2.3 billion dollars.

And now that gas prices have retreated, it's an even sweeter deal. The program is still paying at nearly the same levels as when gas was high. Meaning now you have more money leftover to do with as you please.

But time is of the essence…

The government has authorized the "Gas Rebate" Program to run until January 1, 2011.

That means there's still time for you to make more than $10,000 before the program is discontinued.

Just take a look at what your checks can do for you.…

According to AAA, the average American last year spent $207.50 each month just to fill up their tanks.

As you're about to see, you could make an easy $600 each month in "Gas Rebates."

But where is all of this money coming from? How is this program funded?

You might be glad to know it's not coming out of the pockets of taxpayers like you and me.

It's coming straight out of the coffers of the very businesses that made a fortune off of booming energy prices.

Let's take a closer look at one of them now…

Collect Fat Monthly Checks, Thanks to the Government

There's one under-the-radar company that is legally obligated to siphon off the majority of its $544 million cash flow and pass it on to everyday people.

In 2008, it distributed $457 million to just a few thousand check recipients.

But why are these checks so big?

It's because this company makes loads of money from every stage of the profitable gas-producing process. And the government requires that any extra profits go right into the "Gas Rebate" program…

Here's how it works…

» Step 1: Drilling Profits from the Ground...

First, this cash-spewing company is safely producing 20 million barrels of crude each year… half a world away from OPEC's iron grip.

As you may know, OPEC controls 45% of the world's oil. And most of their fields are in volatile areas – like the Middle East or Venezuela – where disruptions are a daily occurrence.

But this company is sitting on $ 153 BILLION DOLLARS worth of oil at current prices… right here in North America! There's nothing to disrupt the flow of oil or profits… or "rebate" checks.

But there's more… Because huge "rebate" checks aren't dependent on crude oil alone.

This company makes money from every stage of the gas business – oil production, refining, and retail sales.

And up to 84% of the cash flow from each
of these operations must, by law, be funneled back into the "Gas Rebate" program… For example…

» Step 2: Funneling Cash through the Refiner...

The refining business is more lucrative than ever.

In the early 1980s, there were over 350 refineries. And most of them were owned by Big Oil.

By 2002, the number of active refiners had fallen to 153. Only now, instead of Big Oil, independent owners maintain control. So what does that mean for the refiners? In a word: cash.

With their increased leverage, refiners rake in an astonishing $230 billion each year.

And the North American company I mentioned earlier pocketed a huge chunk. Because it's not only producing crude oil from the ground, it's converting it to gasoline in its very own refineries. This company is undercutting the competition every step of the way… and pocketing all of the extreme markups itself.

In 2008, its refining operations pulled in $1 billion... and a large portion of the profits were required, by law, to fund the "Gas Rebate" program. No wonder participants collected $457 million from this one company alone in one year!

And it doesn't end there. Because once this company has produced and refined its own petroleum, it then ships it to its own gas stations… tacks on another premium to the pricing… thereby increasing the rebate checks to participants even more.

» Step 3: Pumping up Prices at the Gas Station...

This one-of-a-kind company has discovered a way to harvest cash from the wellhead all the way to the gas tank. It owns and operates its own gas stations… multiple locations throughout North America.

As you've seen, the price you pay at the pump is the inflated result of an expensive process. The moment the futures market rises, refiners raise the price of their fuel. This higher price gets passed along to the gas stations who are forced to pump up the price even more. It's the only way they can turn a profit.

But since this company has control over the entire value chain, all of these multi-layered profits go right back into this company's coffers… And directly back to "gas rebate" recipients.

So while most consumers have had no choice but to pay up, some smart Americans – by simply signing up for govt.-backed "gas rebates" – have been getting their gas for free the whole time.

Even better, if you sign up now, you can still receive more than enough money to pay for your current monthly gas expenses… on top of getting reimbursed for whatever you've wasted on gas over the last two years.

But this is only the tip of the iceberg…

There are still two more opportunities… similar companies raking in fuel profits and being forced by the government to funnel millions back to ordinary people like you and me.

Together, these three companies make up what my colleagues and I call the "Gas Rebate Program."

According to Forbes, these opportunities offer "fat payouts" that "ease your pain at the pump."

But you must get in before the deadline to qualify for your first check on August 14th.

And you can get all of the details in our special report, How to Collect Your Government-Backed "Gas Rebate" Checks. I'll show you how to get this report FREE in just a moment.

But first, here's how it's going to work…

Uncovering the Deeply Buried Profits

In the first 6 months of 2008, gas prices exploded 31%.

But during that same period BP, ExxonMobil and Royal Dutch Shell dropped in value. They performed no better or worse than the overall market.

Take a look:

The surge in gas prices wasn't the bonanza for "Big Oil" shareholders most people would have expected.

What's worse, oil stocks are much too volatile…

In a 2-month period earlier this year, Exxon stock shot up over 14%. Two months later, it was down more than 17%.

Plus, these top stocks to buy are tough to gauge… The day after Exxon reported its second-quarter earnings of $11.68 billion – the biggest profit ever of any U.S. corporation – its stock plunged.

Bottom line: There's only one safe way to collect extra income… by targeting solid, well-managed companies legally required to funnel their profits back to investors.

Now you can join them…

Start with an Extra $7,200…

Here's how you could pocket an extra $7,200 in the next year…

» Gas Rebate Opportunity #1:

This is the money gusher that lets you collect money from every phase of the gas-producing process – from the ground, through the refiner and into gas pumps.

It's a $780 million dollar company – small compared to its competitors… flying well below Wall Street's radar.

Simply invest just a bit of money with them. You can call your broker or do it yourself online. But be sure to get in before the deadline. Then just wait for your check for $80 in mid-August and every month thereafter until 2011.

» Gas Rebate Opportunity #2:

This opportunity provides you with direct access to a $1 billion gas revenue stream.

Per government mandate, this company returns roughly 70 cents of every dollar it earns to check recipients. And although the government has decided to end the "Gas Rebate" Program in 2011, investors in this particular company have discovered a secret "loophole" that means they could continue receiving hefty checks until 2014.

You can receive your first payment for $240 on August 14th. In the course of one year, you can generate an extra $2,880.

» Gas Rebate Opportunity #3:

This energy company was the first of its kind to send out gas rebate checks
23 years ago. Back then it was worth barely $9 million dollars. Today its value exceeds $3 billion.

In 2008, the company sent out over $654 million in checks. By depositing a bit of cash with this company, you can collect an easy $280 each month… that's more than $3,360 each year.

These checks go out on the 20th of each month. They just keep coming – safe and steady.

You'll never have to send more money. Just sit back and watch your bank account grow each month.

But there's yet another bonus…

If you're considering taking on a second job, or accruing more hours at work to make up for inflated prices, think about this: The government will tax your "extra" income. You could lose almost half of every dollar you earn.

But as Forbes recently revealed, thanks to landmark legislation your "gas rebate" checks are "effectively tax free."

And that's not all they've got to say…

The Best Way to Turn Yesterday's High Gas Prices into Money in Your Bank Account Today

According to Forbes, these companies "operate in the lowest risk segment of an otherwise high-risk business."

They aren't at the mercy of fickle governments… or unpredictable hurricanes.

Indeed these companies represent the safest way to make back the money you've wasted on gas these last few years... plus collect a regular income.

That's why I'd like to send you our latest research report – How to Collect Your Government-Backed "Gas Rebate" Checks – right away.

In it, we provide every detail you need to get started now. We give you the exact deadlines and payout dates for each of the companies listed above.

And we'll send this report to you for FREE.

How You Can Start Receiving Your 36 Checks Each Year

My name is Louis Basenese. I've spent years working for the most powerful investment firms on Wall Street as an analyst and researcher.

Today, I am the Associate Investment Director of a far more prestigious organization. Called The Oxford Club, it is arguably the world's most powerful alliance of wealth builders.

Our members quietly control a combined total of $18 billion in investment assets. They demand only the finest research… and the most compelling opportunities. And that's precisely what we give them…

We have no relation to any outside organization. Our recommendations are based on independent research and years of experience in the trenches – not backroom deals between corporations and brokerage houses. That's how we've delivered hundreds of profitable ideas to our members throughout the years.

Even now, with the Dow in official bear territory and the Wall Street Journal calling it the "worst performance since 1930," our members have enjoyed a number of triple-digit gains such as…

273% in the biggest retailer in Mexico... 124% in a high-tech defense firm... 115% in a hidden gem in medical manufacturing... 172% in a super-hot play on emerging markets... 100% on a real estate play of all things... and 186% in a "boring" Asian fund.

But it's no fluke.

The average gain for our model Trading Portfolio in 2008 was 28% (even while the markets fell 40%)… in 2007 it was 60.25%... in 2006 it was 63.9%... Even in 2000, when the Nasdaq tumbled almost 40%, The Oxford Club portfolio showed gains of 24%.

We spend hours researching, crunching numbers and sifting through the "noise" to locate opportunities long before the mainstream catches on…

…Under-the-radar opportunities like the "Gas Rebate" Program, which you'll discover in our newest research report called How to Collect Your Government-Backed "Gas Rebate" Checks.

This report explains exactly how to claim your first check on August 14th. And I'd like to put it in your hands immediately for free, just for taking the Club's research for a test drive.

But there's something else I'd like to send you free right now…

Ride America's New "House Call" Wave to Riches

The U.S. Census Bureau counted 35 million Americans age 65 or older in 2000. By next year, the bureau expects there will be more than 40 million. And by 2030, that population will double to 71 million.

And 85% of them will require the type of services this company provides at some point!

I know that sounds incredible. But it's not so hard to believe when you consider what this company is doing…

It is quietly amassing an army of doctors, nurses and therapists (more than 8,000 already!) to provide care in the comfort of a patient's own home. They're bringing back the good, old-fashioned house call in the form of modern home healthcare.

This company is a pioneer in one of the world's fastest growing industries. Today, there are 3 times as many patients receiving home health services than those receiving care in hospitals. From 2000 to 2007, the number of home health employees jumped 45%.

And during that same period, this company's market cap exploded by 4,288%! But that's not all…

Its revenue stream is practically guaranteed. Medicare is already its top customer, representing a full 89% of this company's revenues. That's like money in the bank.

The best part?

This success story is just getting started… As more and more baby boomers require healthcare, demand for this company's services will soar.

As you can see, this unique company is equipped to churn out profits for many years to come.

And you can discover every last detail about it in a new report we've recently completed called How to Score Huge Profits in a Shell-Shocked Market with Just One Move.

If you're interested in finding out more, I'd like to send you the report free today, just for agreeing to try the Club's research.

Safe and Steady Gains of 148%... 234%... 309% and More

Spinning high gas prices into profits and booking mega-gains right in the teeth of a bear market might sound unusual if you're used to dealing with brokers, big firms or some of the average independent researchers out there…

But for Oxford Club members, these types of opportunities have become the standard.

Take a look:

FORDING CANADIAN COAL: This tip-off came straight from Jim Rogers, former partner of George Soros, the world's most successful hedge-fund manager. We recommended this Canadian trust as a China play... and members scored a 293.9% gain in 18 months.

ALUMINUM CORP. OF CHINA: After weeks of on-the-ground-research, our top analysts uncovered this play. It's the largest aluminum producer in China… and we got in just as its industrial boom was reaching red-hot status. Members locked in gains of 234.01% in 23 months.

LANDSTAR SYSTEMS: Who cares about a boring old trucking company, especially one with no trucks? Well, our researchers saw something the other guys didn't. Wall Street was asleep at the switch, but members locked in gains of 148.8% in 27 months.

INTUITIVE SURGICAL: Recommending shares of a company that created a whole new trend in medical robots was a boom for investors who had the opportunity for gains of 309.36% in 18 months.

But how do we unearth these kinds of profitable opportunities time and again? Here's the answer…

Crucial Intelligence… Solid Gains

The Oxford Club has members from 100 countries worldwide. They include executives, computer technicians, analysts, teachers, lawyers and retirees. Many of them are entrepreneurs.

And we all work together, forming a network of unique ideas and hard-to-come-by intelligence. Part of our success is due to these relationships. The rest is based on an acute understanding of what works in the markets... and what doesn't.

And that's where Alexander Green comes in.

Alex is the Investment Director of the Club. And he isn't your typical finance "guru". For 16 years, he operated deep within the Wall Street machine. He was getting rich… and making loads of money for his firm and his clients. But he didn't like how things worked.

He once confessed, "I was tired of the complete lack of concern for the ordinary investor. Instead of helping people meet their financial goals, the big firms were ripping them off. I couldn't stomach it anymore."

So at the age of 43, Alex walked away from his prestigious position, returning most of his half million dollar signing bonus.

But Wall Street's loss has turned out to be a boon to Oxford Club members.

The Hulbert Financial Digest, the industry's top independent watchdog, has ranked Alex's stock selections for The Oxford Club fifth among the world's top 200 investment newsletters, based on their five-year, risk-adjusted return.

Along with Alex, myself and our global connection of research advisors, we post twice-monthly stock, options, and outside-the-box recommendations for our members.

By joining our club today, you can receive regular updates on all of these developing opportunities. Plus you'll have full access to each of our model portfolios… and ALL of them are consistently delivering solid gains to our subscribers.

In fact, all five of our investment portfolios beat the S&P 500 in 2008.

Not surprisingly, our members are more than pleased. But you don't have to take my word for it…

Our Members Tell It Like It Is

This is what member Roger W. from New Orleans had to say in a recent letter:

"By rigorously following the investment recommendations and rules provided by The Oxford Club, I have made consistent 40% ROI every year for the past three years, and was able to retire at age 45 and now live comfortably off my investments."

And then we received this unsolicited feedback from member Craig J. last year…

"I manage $100 million of discretionary equity at a large brokerage firm. In spite of our multimillion dollar research department, I use my Oxford Club subscription extensively in managing my high net worth clients' money."

Here are a few more:

"Thanks for your continued help and guidance in this crazy stock market world. My portfolio has almost doubled in the three years I have been following your advice. Thank you, thank you, thank you!"
– Terry S. from Detroit, Michigan

"Many of my friends and family, whose money is managed by the top brokerage firms, refuse to believe me when I tell them of the tremendous returns I have accumulated from your recommendations. It's no wonder, as their accounts and "Blue Chip" investments continue to flounder in mediocrity under top management and large fees. Thanks for allowing me to diversify my account and invest in growing companies with consistent returns."
– Andrew O., a member since 2004

"I normally don't subscribe to e-mail advertisements, but yours looked interesting. Two weeks later I quadrupled my initial investment of $1,500 on just two recommendations."
– Bill H., a member since 1998

And now here's one more high-profit opportunity that's sure to help our members get much richer in the coming months…

126,850% Gains… on this Global Retail Giant

Without a doubt, Wal-Mart is one of the greatest success stories of all time. Since going public, its stock has skyrocketed 126,850%.

This meteoric rise took the company's shares from four cents in 1971 all the way to $50.78 as of April 16th. That means that you could have made $12.6 million dollars off of just a $10,000 investment!

It was an amazing once-in-a-lifetime opportunity. Right?

Wrong.

Our research team has uncovered a way to buy actual shares of Wal-Mart stock for about $3...

The investment is simple. And it has nothing to do with options. You'll find out how to buy a special form of common stock.

And all the details are laid out in a new report we've just finalized called The World's Most Profitable Retailer for Under $5 a Share.

I'd like to send it to you free, right away… when you accept this limited-time offer to join our unique organization.

Your Invitation to a Lifetime of Profits

So here's what I suggest… If you agree that these ideas are worth a closer look, I'll immediately send you the below reports with my compliments. You'll get:

SPECIAL REPORT #1: How to Collect Your Government-Backed "Gas Rebate" Checks – Between October 1 and December 31, 2008, thousands of smart Americans received more than $582 million in govt.-authorized checks to refund wasted gas money. You can join them in just five minutes, in time to receive your first payment on August 14th… And you can find out how to continue getting payouts for the next year-and-a-half.

SPECIAL REPORT #2: How To Pile Up Huge Profits In A Shell-Shocked Market with Just One Move – This company is riding high on the $7 billion "house call wave." With more than 8,000 caregivers providing 4,302,000 home visits last year alone, it's the undisputed leader in the industry. And with 71 million potential customers on the horizon, business could easily double in the coming years.

SPECIAL REPORT #3: How to Buy the World's Most Profitable Retailer For Under $5 Per Share – There's a new way to own Wal-Mart… at a 95% "virtual discount". While your broker probably won't tell you about it – even if he knew about it – he can easily purchase this investment for you. Profits here could be extreme. Remember, "regular" Wal-Mart stock is up 126,850%.

*JUST ADDED
SPECIAL REPORT #4: Trend Traders: Two Decades of World-Beating Performance – Most investors don't know it exists. But there's a simple investment with no correlation to the best stock and bond markets. It's produced an average gain of 15.5% per year since 1983. And made stunning bear market returns in 1987, 1990 and even from 2000 to 2002. You can find out how it can make you rich now… just in time to help you through these tough markets.

After receiving these reports, you'll start getting a stream of new recommendations – just like these. We'll also send you our private e-letter, The Oxford Insight, which provides instant updates on all our positions.

But that's not all…

Benefits You Can't Put a Price on

Here's more of what you'll get as a member…

You'll receive 24 issues of our confidential newsletter The Communiqué each year. This bulletin provides in-depth reports for our most urgent opportunities. You can also find updates on all of our current positions.

You'll get access to our financial network spanning 100 different countries… Special subscription offers to our highly profitable VIP services… Invitations to members-only regional meetings in exotic locales…

You'll receive our members-only publication – The Oxford Portfolio Update – twice-weekly right to your email inbox. We'll send urgent buy and sell alerts... inform you of new groundbreaking opportunities we're looking at... updates on current picks... recommendations on how to stay clear of the market mayhem. We'll also email you a weekly broadcast of our brand new talk show – Market Wake-Up Call. We bring in our top analysts and a series of special guests to get their up-to-the-minute insights.

You'll also get your own password so you can log onto our private website anytime – day or night. Here you'll find all of our recommendations and portfolios… More than three year's worth of Communiqué issues… Back issues of The Oxford Insight… An entire wealth library containing private dossiers on specific, timesensitive opportunities.

And more!

And then there are the members-only Oxford clubhouses around the world – a stunning chateau in the French countryside… a Pacific Paradise resort along the Nicaraguan coast… our restored brownstone mansion in Baltimore's historic Mt. Vernon district. As a member, you'll be free to visit any one of them…

You'll also enjoy access to financial experts in every field… Global investment expeditions… Pre-IPO investments… Financial services at huge discounts… The list goes on and on.

Use as many or as few of the services as you like. And you'll find out all about them in the Welcome Kit you'll receive once you sign up for a one-year Premiere membership to The Oxford Club for only $149.

Think about it…

You can discover how to get your gas for "free"… find out how to buy the world's most successful retailer for less than $5 a share… and most importantly, align yourself with one of the world's most powerful alliance of wealth seekers… all for about the cost of a nice dinner for two.

Plus, there's absolutely no risk for you to simply try it out.

If you look over our research and decide it's not for you, just send us an e-mail or give us a call within 45 days to let us know. You'll receive a full refund.

But feel free to keep the reports and everything else in your Welcome Kit. Consider it "thanks" for giving us a try.

The World's Most Profitable Opportunities… Right at Your Fingertips

Joining is simple. It only takes about five minutes. And once you've joined, you'll receive your Welcome Kit, along with the special reports I've told you about:

FREE Report #1 - How to Collect Your Government-Backed "Gas Rebate" Checks

FREE Report #2 - How To Pile Up Huge Profits In A Shell-Shocked Market with Just One Move

FREE Report #3 - How to Buy the World's Most Profitable Retailer For Under $5 Per Share

FREE Report #4 - Trend Traders: Two Decades of World-Beating Performance With No Market Correlation

And again, if you decide for any reason that The Oxford Club isn't for you, just pick up the phone and let us know within 45 days. We'll refund every penny of your membership…

But the research is yours to keep.

But You Must Respond Immediately to Get Your Check on August 14th

The only catch is…

… you must act now to ensure you qualify for your first check on August 14th.

So for a limited time, we're going to allow you to join for only $79 – almost half off the normal price.

But please don't delay.

As soon as we receive your acceptance, we'll rush you this special report by email (if you provide your address) to make sure you get in before the deadline