Dear Friend, Robert McCleskey strode to the podium, pushing his way through the mob of reporters. The date was July 2, 1999. George W. Bush's assets had been in a blind trust since he was elected Texas governor four years earlier. And Bush liked it that way. But with his sights on the White House, McCleskey, his accountant, gave him the bad news: He'd have to produce the federal financial disclosure report that is required of all presidential candidates. GWB contemplated just heading back to the Bush-friendly confines of Texas. He'd be able to sidestep all the negative publicity and awkward disclosures that Washington would bring. It would be tempting, he thought, to keep his investments from scrutiny and continue to earn outrageous profits on the deals his special advisor had quietly arranged for him over the years.
Or the one they cashed
out on September 17, 1994, in Fort Worth. Three years earlier, Bush and
his wealthy advisor had organized a consulting services partnership. The
advisor provided the backing, and he asked W for only a token ante. Thanks
to this deal, Bush's meager stake of just a few hundred dollars jumped
to $45,512 a mind-boggling 11,721% gain in just 36 months.
In the end, however, the lure of power proved even stronger than that of money. W realized that he would have to come clean. And so now, on this 94 degree day in July, his accountant was providing sweating reporters with these startling details of W's investment history with his confidential advisor. How
Did W Transform Himself From a Novice Oilman Into a Midas-Touch Investor
Whether it's been real-estate deals or energy investments, on many occasions Bush has turned to one man to increase his personal fortune and this man has never failed him. "He just loves to make people rich," said Alfred Checci, the former chairman of Northwest Airlines, who worked with this "Billionaire Investor" in the early 1980s. And now. we've uncovered how he's about to do it again.. He's found the perfect moment to enter a business that everyone else is overlooking. Allow me to show you how to get in, and how this move could make some investors (possibly including you) very wealthy, very soon.
Think about what it would mean to own an investment that that gives you annual returns of at least 145% by the third year, with very little risk and extraordinary upside potential an investment that can turn a ho-hum portfolio into your early retirement package. Think about what it would mean to own such an investment, one that was fortified by three rock-solid pillars
I really believe that you can't afford to miss this opportunity to get in on the ground floor of what very well may be the best profit opportunity of 2005. If he weren't President now, GWB would probably be teaming up with his old Texas pal on this deal too. But even though "W" can't get in, right now there's a limited-time opportunity for you to join the Billionaire Investor yourself. Position
Yourself for Big Gains
How much you can make by investing in this company depends upon your particular situation. But, as I'll explain in a moment, even a small investment may have the potential to give you an extraordinary return on your money that could bring financial independence to you and your family provided you don't let this chance slip away. Right from the outset, this price of this investment marched upwards like some unstoppable army. The viability of the business model was proven and a solid track-record emerged. For the moment though, it's taken a breather as it readies itself to break out to all-new, lifetime highs (the kind of returns that the "Billionaire Investor" is used to seeing). This short break in the action is good news for you because when it does explode, there's no telling how high it will go. But the pause won't last long so the ideal time to jump on board is now. 164.9%
Return Just To Catch Up With
Just how good is the upside on the "Billionaire Investor's" latest play? Consider this:
So between the potential for a phenomenal annual return and a rock-steady dividend stream, I expect that you could earn a total annual gain of 82.4% on your original investment over the next few years! In short, you could be doing more than buying cheap. You could be buying outstanding value with almost unlimited upside potential. What
Outrageously Profitable Investment Has It's obvious from his track record that the billionaire investor knows a breakthrough opportunity when he sees one. And that's why he's an owner of this remarkable new investment. It's a real estate investment trust company, otherwise known as a REIT. And we're talking about one of the largest real estate investment trusts in the country. In fact, it's the largest REIT in Texas with a total market capitalization of $1.6 billion and publicly traded on the New York Stock Exchange, so it's easy to buy and sell. But it gets better, much better Your Chance to Scoop Up Big Real Estate Profits, Before They're Even Taxed What really makes REITs truly outstanding investments can be summed up in three words: "No Double Taxation."
The beauty of REITs is that by law they must distribute 90% of their taxable profits to you and their other shareholders. How does that work? Usually, a company's profits are subject to corporate income tax. Whatever is left over is reinvested in R&D or is paid to shareholders as dividends. Unfortunately, those dividends are then taxed again as capital gains. For example, imagine a company that has a profit of $1 million. The IRS will take its percentage of that profit. Then, when the company pays its dividend to you, the IRS gets another 15% of the action by taxing you as the shareholder. By contrast, a company with REIT status is exempt from paying corporate income tax. Instead, you get all the untaxed profits when they distribute their dividends to you. It's like being on top of the corporate profit-sharing totem pole. At this point, Uncle Sam hits you with a tax bill. But, with our REIT, you don't get a full tax bill. In 2004, 60% of your dividend would have been tax-free. In 2003, 90% would have escaped taxes! In short, REITs offer diversification, liquidity, and tax benefits, without the headache of actually owning property. 5
Strong Foundations for Big Profits This company is well-positioned to be a big gainer in the months ahead. Just some of the excitement that's brewing beneath the surface, about to explode, includes
Double
Your Diversification, The company is more than just geographically diversified. It's further diversified across four different kinds of real estate properties, including:
The Next Time You Go To Las Vegas The Billionaire Investor is too smart to put all his eggs in one basket. So he's also invested in real estate in some of the fastest-growing metropolitan areas in the country, such as Atlanta, Denver, Miami, and Las Vegas. Speaking of Las Vegas
The next you go to Vegas, take a tour of the business district near Flamingo and Paradise Roads and you'll see the beginning of their latest project: A pair of office towers, more than 525,000 square feet of real estate, that's scheduled to break ground this summer. Another 11-story, 250,000-square-foot office tower is scheduled in the not-too-distant future. This company already owns a 115-acre mixed-use business center in central Las Vegas. At this rate, they may soon own the entire Las Vegas business district! If you think these investments are a wild throw of the dice, look at what's happening to Las Vegas real estate recently:
Obviously, the man who helped earn George Bush over $14 million knows a good investment when he sees one. The Billionaire Investor Has Tipped His Hand! What most people don't know is that he's been quietly investing his own money in his company. Over the past few months, he has made a series of large purchases to the tune of more than $8 million. Why should that matter to you as an investor? Because inside purchases especially large purchases by those "in the know" suggest the stock is on the move. Graham Summers, a top investment strategist and specialist on insider trading, says "following insider trades is one of the most effective stock investing strategies in the world, a fact that's been proven by several independent studies to double the performance of stock market averages. Insiders buy shares of their own stock for one reason: It's a great investment." And John D. Spears, a co-manager of Tweedy, Browne American Value Fund, observes "Long-term studies have shown that insider purchases, especially at companies whose stock price is cheap relative to the overall market, generate outsized returns." Let's face it. There's only one reason insiders buy their own stock. It's because they know their company is a great investment. The fact is, insiders have a better knowledge of what their company is doing and, more importantly, where it is headed. The Billionaire Investor knows where his company is headed and that's why he's bought more than $8 million worth of his own shares. Skeptical? You'll Have Plenty of Company Here Perhaps you're wondering who we are and why we're telling you all this. Let me take a moment to introduce myself.
He hired me because he knows me as an experienced fellow businessman and a meticulous market and business analyst. For many of the candidate companies I look at, I can say: I've been there I know the challenges they face.
And as a partner in two $100 million businesses and multiple $10 million businesses, my wealthy colleague has truly seen it all done it all perhaps too much. For every company that has succeeded, he's seen a dozen fail. His experience and observations ingrained in him an unmovable skepticism, so much so that, as he told me a few months ago, he only begins to relax when he knows for sure his companies are going to hit their numbers in two key areas. That casual aside launched a remarkable collaboration, creating a stock grading system based on those two critical areas. It's a system that is uncannily effective in identifying the inherent strengths (customer acquisition) and hidden potential (backend) of companies. Those two areas comprise the core of this investing strategy. They are the telltale signs of future growth and growth sustainability (especially important when the rest of the market heads south). By identifying those signs, we can hone in on companies with huge growth potential and minimal downside. Before we could release this system, we wanted to see how it would have performed if it had been available a few years ago. So I spent weeks "backtesting" by running a group of companies through our filtering process. Take a look at the following examples just a few of the companies that match these criteria in past and see how you could have done if you had known about them #1
Skeptical Blast From the Past An unbelievable 81% gross margin and 40% operating margin. Customer acquisition for commodities in this case, oil and gas is a low-cost operation. Its "backend" is built into the industry: the same customers coming back for more and more product. From $6 in 2001, the price is more than six times higher now at $40.48. A $10,000 investment four years ago in this skeptical winner would now be worth $67, 467. #2
Skeptical Blast From the Past Coach Inc Its telltale signs appeared back in 2000, three years before the stock soared out of sight. From a hip lineup of handbags, it extended its products to men too, and began giving guys and gals lots more stuff shoes, watches, hats, wallets, electronic accessories, and more. Plus, its gross margin has averaged 67% over the past five years. From $5.77 in January 2002, the stock price has soared to a current $28. A $10,000 investment three years ago would now be worth $48,527. #3
Skeptical Blast From the Past H&R Block Inc. Its aggressive growth of backend products into accounting and consulting services for businesses, and mortgage and investment services made this company a prime candidate poised to be a winner not to mention its impressive 47% gross margin for the past five years. If you had invested in this stock in 2001, when it was going for $20 a share, you would have made a 150% return. It's now going for $51. A $10,000 investment four years ago would now be worth $25,500. #4
Skeptical Pick Blast the Past With operating margins of 50%, it generated enough revenues to expand its backend from strictly a savings bank operation to brokerage and investment services. It took off as a result. Its January 2002 share price of $31 more than doubled in three years to $64.50. A $10,000 investment three years ago would now be worth $20,806. The
Smartest, Safest Investment The more we looked at big winners like these, the more we realized that other conservative investors such as yourself would appreciate and benefit from learning about this system. Thus, The Skeptical Advisor was born. At The Skeptical Advisor, we are beholden to no one. We are an independent research firm. We don't make commissions from what we recommend. We have no ties to brokerages or special-interest groups. We have no axes to grind. If you decide to join us in our search for outstanding and undervalued opportunities, each month we'll send you a special company investment advisory. In each report, we'll unveil what we believe is the smartest, safest investment opportunity available in the marketplace. We want your portfolio to prosper so you can rest assured that with each issue, we will stick to our own unique formula in identifying stocks that are flying off the radar screen of brokerage-house analysts. We've heard analysts talk about doing things differently, but they really don't. They end up using the same tired tried-and-failed stock-picking methods that have led to such underwhelming results in the past. We go about it differently. That's why we're able to get such good results.
And for each issue, we'll follow strict company protocol to avoid even the appearance of conflict of interest. The editor of the report cannot invest in the recommended company at any time (no matter how great the opportunity!). All investment recommendations are carefully tracked and continuously updated after they are published. And price guidelines as to when to invest and when to take profits are always given along with the stock recommendation. Send My First Recommendation by Email Now Special
Ingredients For This Unique How do we pick the stocks? Some advisory services keep their stock-picking criteria secret. You have to take them at their word. At The Skeptical Advisor, we hold nothing back. We don't want you to take anything we say on faith. After all, if we're skeptical, you should be too. Perhaps the most unusual characteristic of our criteria for picking stocks is that we don't look at past earnings growth. And it doesn't matter whether the rest of the stock market is in the doldrums. We don't try to predict trends or what the overall market will do. Our two criteria go right to the core of what makes THIS ONE COMPANY successful or not successful if they fail to hit their numbers. Key
Success Ingredient #1 Companies need a model of customer acquisition that works in current market conditions. We're not interested in past performance or in last year's glowing numbers. If a company can't figure out a way to grow its customer base within reasonable spending limits NOW in today's market conditions it's not going to prosper. When evaluating any new company, our first two questions are going to be: "How are you going to acquire new customers?" and "How much is that new customer going to cost you?" Unless we get good answers to those two questions, we'll take no further interest in the company because we know that its chances of success are very slim. Prove to me that (a) you know how to bring in new customers and (b) you can bring them in without going broke and I'll be interested. Key
Success Ingredient #2 The ability to market additional and especially higher-priced products to an existing customer base is critical to a company's profitability. It's all about human nature. Once customers decide to invest their time and money in a given business, they're psychologically disposed to do it more frequently and in greater depth, because it reinforces the validity of their choice. But unless the business can find a way to convert the initial transactions into substantial, longer-term business relationships, then the business model is faulty. A business that depends entirely on new sales for growth and profit is like a vehicle driving uphill on a road coated with oil. It may have enough traction to travel for a while, but eventually the work involved in moving exhausts the engine and wrecks the car. We like businesses that can expand geometrically businesses that can acquire an increasing number of customers from an expanding market and then improve the value of those customer relationships by selling them more, better and more expensive products. If acquiring new customers is the front end of the business, making those customers more valuable (by selling them more, better and more expensive products) is the back end. Companies that have backend products, multiples of quality products, often see profit margins of 15%, 30%, and 50%, and in growth markets or in growth periods even higher profits of 70% and 100%. This gives these companies a huge added advantage. It only makes sense, then, that when analyzing a company's potential to exploit its customer base, we carefully scrutinize its current marketing and product mix to determine how this will affect cost of customer acquisition, as well as back-end potential. Key
Success Bonus Ingredients There are two more important factors that can help a company pass our strict filters. If a company has high margins, it has more room for error and more room to grow even in difficult market conditions. Success in business is all about learning from mistakes. Growing a successful business is about making all the mistakes you need without going broke in the process. Companies that operate on big margins allow for a lot of mistakes. I like that kind of allowance. Likewise, companies with low accounts receivables and inventories are much more likely to generate a nice cash flow. And cash flow can help sustain companies through difficult times. When we find that rare company that matches on all four criteria, we see it as an almost certain sign that they're poised for solid growth and that the best is yet to come both the company and it's shareholders. Why Your Broker Falls Short You'd think that by now some of the "experts" on Wall Street would have caught on to our methods for identifying what makes a company a future winner. But there's a reason why all this well-intentioned advice from Wall Street doesn't work better than it does and it's the same reason why Wall Street is so often late to the party. They focus on the past. Their favorite criteria earnings growth, sales growth, P/E, price-to-sales that's all about past performance. But past performance is nothing but history. When Wall Street touts these numbers as a reason to buy or sell a stock, you're looking at nothing but an old mug shot of a company. Isn't it about time you had investment advice that you can depend on that looks at a company in real-time NOW that makes an effort to search out the critical information not included in its news releases or quarterly reports? Making
Great Stock Recommendations The Skeptical Advisor is unlike any other investment advisory. Our aces in the hole are efficient customer-acquisition models and backend revenue. Taken separately, these criteria will identify companies with how can we put it "very interesting potential." Perhaps for most stock-picking pros, that's good enough. But we insist that our companies satisfy all our criteria because, taken together, they're an unbeatable combination for separating the losers from the up-and-coming superstars. We've already told you about our exciting REIT pick that's set to explode. But there are other opportunities for winners that will be profiled in The Skeptical Advisor in the next three months #1:
The Amusement Park Company There's an amusement park company whose success possibly runaway success depends entirely on making capital investments that it's already initiated! Average resale value of its parks is around $200 million. The company owns 30 parks. Let's see, 30 times $200 million equals $6 billion. That's more than 10 times its cap value of $510 million. This company is priced at a huge discount! About 45% of the company's revenues derive from its backend business, and we think it will do even better in the future. We think returns of 60% to 140% in the next 9-14 months are possible. #2:
The Energy Company With a Plan It has huge gas holdings, plus pieces of oil, nuclear, and coal. It's a fully integrated company under smart management. It also grades out very high on our criteria and bonus points. It boasts a 52% gross margin and an operating margin of 20%. And, as a fully integrated company, it's able to backend its wholesale delivery of gas and other energy sources into the retail end of electricity supply to households and businesses. This company is making
all the right moves. It's about to break out big-time with annual double-digit
growth that has a chance to double your investment in 3-4 years. #3: The 500% Growth Telecom Company This integrated company provides a full range of telecommunications services to business and residential customers. It also aced our criteria and bonus points. Its gross margin is 50% and its operating margin is 34%. As for backend, it's expanding its product offering by deploying advanced broadband integrated video, voice, and data services. This stock is set for explosive growth. We think triple-figure growth, up to 500%, is within reach. There is also, of course, the real estate company we told you about earlier with the 30 million square feet of high-end office building space in some of the fastest-growing cities in the U.S. and with an upside so irresistible that one insider has poured $8 million of his own money into it. TIck...Tick Tick If you get on board right now, you'll have a great chance of making remarkable gains on the "Billionaire Investor" recommendation. If you wait well then nothing happens. Good luck standing on the sidelines, my friend. But if you would like to take advantage of our unique approach to evaluating companies to appreciate why this undervalued real estate company has grabbed our attention to recognize what it means when we say this company has aced our criteria and bonus points then you are making a wise decision. But the clock is ticking prime cuts always go to the first at the table. And if you don't have enough reasons to invest in this company yet, here's one more compelling reason. The company is in the middle of a brilliant switch in strategy that I believe will allow it to boost earnings by 30%-40%. And it doesn't depend on increasing occupancy rates... or cutting costs or getting better prices for buildings. Earnings will rise and that will help generate a larger stream of revenues from the backend of property management and leasing. So between a phenomenal annual return and a rock-steady dividend stream, you could earn as much as a total annual gain of 82.4% on your original investment! The Next 10 Days May Give You An Edge
This company's earnings report comes out in less than 10 days. If the earnings are stronger than expected, it could take off in less than two weeks. That means the cost to get in will rise. So although we think this company has many years of profitable growth ahead of it, the best time to act is now. Why else would its insiders be making such a huge investment in their own company? If You Are Serious About Making Money There's no better value than getting your investment advice from The Skeptical Advisor. If you were to purchase research like this from other equity researchers, such as David Tice and Associates or Ned Davis Research, you'd pay somewhere in the neighborhood of $15,000 to $25,000. If you wanted to get advice directly from my skeptical multimillionaire colleague, he would charge you $5,000 per hour. And if you paid a real estate agent on a $100,000 piece of property, you'd be looking at a $6,000 commission. But with my research, you avoid Wall Street's usual high fees. And you avoid the fees normally associated with real estate of course. My research staff and I have done all the legwork. We've flown down and visited the company. We've spent weeks pored over the company's financials and its recent sales and purchases. I've met with the people who run this company, and have had a long discussion with the CEO. And of course we run all our investment advice by our skeptical multimillionaire. He doesn't suffer fools gladly. He despises B.S. and double talk. And most importantly, when it comes to business, he knows what separates the winners from the losers. How to Get Started Today Our
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The Skeptical Advisor Make Sense For You? One thing you should keep in mind. The time to buy into this company is now. Its price is not likely to stay this low much longer. And when it busts loose, we expect it to climb quickly. Likewise, the Asian telecom company I mentioned earlier is issuing new American Depository Receipts (ADRs) to U.S. investors within the next 2-3 months. If you don't subscribe to The Skeptical Advisor now, you may miss out on the best investments you'd be making this year. These are opportunities you can profit from for years to come. As soon as you have decided to join us, you will be sent an e-mail version of your first issue. Send My First Recommendation by Email Now
P.S. Don't miss out on the best stock investment you can make today the one offered to you in your first issue of The Skeptical Advisor... it's the best investment opportunity I've seen in thirty years. Your very first issue of The Skeptical Advisor will include everything you need to know about how to invest in this company. If you're not completely satisfied with it, let me know and you'll receive a full refund. Send My First Recommendation by Email Now
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