The Smart Way to Profit from the Crisis:
Make 50% in Months,
or Your Money Back– Without Buying Stocks
By Porter Stansberry
There's an opportunity so safe and so big right now in the market that I've dropped everything, spent the last week digging up the numbers you'll need and written this letter to tell you all about it.
Here's the gist of what you'll learn in this letter:
1.
There's a way to make 50% or more over the next year, just watching stock prices. You shouldn't have to actually buy any stocks. You'll just have to keep your eye on them.
2.
Warren Buffett (the world's great investor) is using this technique right now, unbeknownst to most investors.>
3.
Stock prices have fallen so low that, for the first time in decades, you can use this strategy with almost zero fundamental risk.
When the market sells off like it has over the last 30 days – down more than 30% -- wise and cautious investors begin to put their money to work. If you know what you're doing, right now is the best time to be buying stocks in the last 30 years.
On the other hand... there's always the risk that stocks will get cheaper still. And, because so many investors are afraid that stocks will continue to crash, the price of insurance on stocks – put options – has soared to a record high level.
Right now the world's savviest investors aren't buying stocks. They're simply selling insurance on stocks via the options market. This allows them to make huge gains, without buying stocks at all.
I know this might sound complex and confusing. And yes, it's a strategy that typically only professionals use. But I'm bringing it to your attention because right now we have the opportunity to make 50% gains over the next year, just by selling puts on stocks whose share price and balance sheet value pose almost zero risk to us.
I've never seen an easier or safer way to make a lot of money. Remember, I've been telling you for years that this stock market wasn't safe. That Fannie and Freddie would go to zero. That General Motors was going bankrupt. That Downey Financial, Corus Bank, Capital One and Goldman Sachs were all in deep trouble and might go broke too.
I wouldn't tell you to consider this strategy unless I was 100% sure it couldl work. This is the single best opportunity to make a low risk profit that I've ever seen. In fact, the opportunity is so unusual and will prove to be so lucrative that I'm doing things I almost never do.
First, I'm publishing a separate special report on this situation, Porter Stansberry's Put Strategy. Over all my years in publishing I've only set up a publication based on single events twice before. Once when I learned USEC – the monopoly uranium enrichment company – had a new pricing agreement with its Russian supplier. The stock nearly tripled over the next two years. The second time was when I figured out how to profit from the rise in the Chinese currency via Chinese stocks that were trading in the U.S. and therefore denominated in dollars. (Warren Buffett did the same thing here too, by the way). We averaged 80% gains on these four stocks in less than six months.
I only publish a special strategy report when I'm 100% sure a situation is going to work out for us. And this time, I'm so confident that you'll make money following my Put Strategy that I'm willing to guarantee we’ll see 50% -- at least – based on this advice over the next 52 weeks. If we don't produce average gains over 50% in the next year, you can have all of your subscription fee back, no questions asked.
THE BUSTED PRIVATE EQUITY DEAL
We're going to sell puts (don't worry, I'll explain exactly what to do) on stocks whose share prices have become absurdly cheap. Normally selling puts can be risky, because you're agreeing to buy the stock in the future, if the price falls. However, because stocks have gotten so cheap and because there's so much fear in the market, we have a very rare opportunity to sell what amounts to very expensive insurance against stocks where there's essentially no risk.
You can think of this as selling insurance after hurricane season. Everyone wants to buy, but the hurricane has already hit. That's when you make a killing selling insurance.
Here's exactly what we're going to do, using a real example.
First, we identify a stock that's woefully undervalued. Our first opportunity is a busted private equity deal where the acquirer was willing to pay almost $30 per share only a few months ago, but the company being acquired turned the deal down because the price wasn't high enough.
You can now buy the stock at $12.00. So, the stock is now trading for less than half what knowledgeable investors were willing to pay a few months ago. And by the way, this is a blue chip company. It's the leader in its industry. It earned over $200 million in cash in the last quarter – yet its current market cap is only $1 billion. It's essentially trading at one times cash earnings.
I've never seen such a high quality business selling for such an absurdly low price.
Normally I'd simply tell you: Buy the stock. It's safe. It's incredibly cheap and you'll make a fortune owning it. If you buy it right now at $12.00, I have no doubt that you'll double your money in the next few months. In fact, another buyout offer could materialize at any time – which would double your money overnight.
But, thanks to the crazy situation in the market right now, you can make a lot of money without even bothering to buy the stock.
Instead of buying the stock, I recommend you simply sell insurance on it via the options market.
It's simple. All you have to do is be approved to sell options by your broker. Call up your firm and tell them you want to sell puts on a few beaten down, very high quality stocks. You'll have to have enough money in your account to make good on the insurance you're selling, but you probably won't have to buy anything at all.
As I type this report (Thursday morning, October 16, 2008), you can sell a put on the busted private equity deal company for $2.40. To earn this premium you agree to buy the stock at anytime between now and January 16, 2009 if the price falls below $12.00.
I don't think the stock price is going any lower. But, what if it does? What if we're forced to buy the stock? Well, since we've collected $2.40 by selling the put already, if we have to buy the stock at $12.00, we're really only paying $9.60.
So, even if we do end up buying the stock, we'll get it at a huge discount to its price today – almost 20% cheaper than if we simply bought the stock. That's not a bad outcome for us, because we're sure the stock will rebound, it's worth at least twice as much as we've paid and – and this is the key – the liquidation value of this company is $9.82. If you simply sold off all its assets (82% of which are cash) and paid off its debts, you'd be left with $9.82.
So... lowering our buy price by selling a put makes it almost impossible for us to lose a penny in this deal. And that's our worst case scenario.
What's most likely to happen is that the stock price moves back up as investors come to their senses. If that happens, we simply keep the insurance premium we've been paid, the $2.40. We didn't have to buy anything. We got $2.40. Measured against the capital we had to hold in our account (remember: you have to be ready and able to buy the stock) we've earned 20% in three months. On an annualized basis (if we can sell a similar put each quarter) we'll make 80% on our money.
That's right. We'll make 80% per year, simply watching stocks and selling insurance against stocks that have long since become too cheap and that we'd be happy to own ourselves.
Using my technique you should be able to earn 50% next year, just watching them and being ready to buy. Meanwhile, if we actually get in to these stocks at the right prices, we'll make a killing – probably 100% on average.
I've already found four situations where I think we can safely sell insurance (sell puts) that will earn us over 50% per year in premiums. If we end up buying any of these four stocks, you'll want to own these companies forever. They're the best companies in their respective fields – the very best.
If you want to get in on this deal, you must act right now. I've never seen a better opportunity to use this strategy. And it won't last very long. In a few days the prices on insurance will fall as investors come to their senses.
Here's how you can join us.
First, I want to send you one of the first copies of my report – Porter Stansberry's Put Strategy Report. Keep in mind, the market is changing very quickly right now. The set-ups I've found will not last. But, as the market bounces around, more opportunities will arise.
So, each week for the next 52 weeks, I'll send you a brief update on which puts you can sell safely. I'll tell you exactly what to do, each step of the way. When its time to collect more insurance money, you'll know it. When its time to pocket another $1.50 or $2.00 of premium, I'll let you know. There won't be a single situation where you don't know exactly what to do.
I'm sure 99% of you have never sold puts before. We'll show you how, step by step.
This is a situation where you can make 50% in the next year, even if you never buy the stocks. If we do get our price and we buy, we should make more than 100%.
If you've ever wanted to become a more serious or more professional investor, now is the time. If you need to repair losses to your portfolio, this is the best way to do it. Our strategy makes it both harder to lose money and easier to make a lot of money. That's why professional investors use this technique almost every time they buy a stock.
Like most things in life though, there is a catch...
First, unless you have at least $10,000 in your brokerage account, your broker will probably refuse to allow you to sell puts. To use this service, you account must have a margin account that's approved for selling put options.
So, before you subscribe, call your broker and make sure you're allowed to buy stocks via selling put options.Most individual investors are not approved for this kind of trading. But, you can get approval from your broker if you request it and if you have adequate capital in your account.
And here's the other catch: because there are a limited number of people who can do these types of trades and because we're making such an incredible guarantee, we must charge a substantial fee for this information.
We're showing you how Wall Street's savviest traders will play this market over the next six to twelve months. We're putting you in a position to make at least 50% -- without even buying a stock. In fact, we're guaranteeing we’ll show you at least 50%, on average, with our portfolio next year. We think you'll actually make much, much more as we expect to end up owning a few of these stocks and doing very well with them.
What's this worth? Well, assuming you put $10,000 into only our first four recommended positions, even if we don't end up buying a single stock, you should make $20,000. That's twenty grand just for watching these stocks next year. And, if we do get the prices we want and you buy, you could easily double your money. You'd make $40,000 in one year. Doubling your money on four stocks should help recover whatever you might have lost this year.
Best of all, we're so sure of our strategy, if we don't record a gain of 50% on average, you can have 100% of your subscription back at the end of the year. All you have to do is give us a call.
What's this worth? We always struggle over what to charge for our specialized information. We know that most subscribers won't bother to learn this new technique. And most subscribers are simply too scared right now to buy stocks anyway. This report is for those in our audience who are experienced investors, who recognize the opportunity in the market right now. This is for those of you who want to step up to the plate and get much more serious about your investing.
Considering the value of the information, the guarantee and how much of my personal time and energy is going into this process, I think charging our standard $1,000 is just too cheap. In fact, considering the kind of stuff that's routinely sold at that price by many other publishers, I'd be insulted if someone offers $1,000 for this information. What I sell works. I won't accept less than $2,500. If that's too rich for you, either you don't have the funds to invest or you simply don't understand how much money you'll make following this strategy.
That's $2,500 for 52-weeks of coverage on my four best ideas on how to profit from the inevitable rebound in the stock market. You'll also learn my professional strategy for buying stocks for less than they're trading at now – something you probably can't learn anywhere else.
Plus, this fee comes with my personal performance guarantee: If we don't record gains of at least 50% on average by the end of 52 weeks, you can have every single penny of your subscription back. Just let us know we haven’t hit the mark for you. I can't think of any better way to show you how serious I am and how certain I am that this strategy and these ideas will work out.
There's not another analyst in America who is willing to make you that kind of promise.
This is our new chance to take advantage of the markets. I hope you're with me.
As I mentioned, there's one very important catch:
You must be allowed to sell put options in your brokerage account. Without this approval you will not be allowed to implement our strategy.
Best regards,
Porter Stansberry
P.S. According to a recent SEC filing, Warren Buffett has been selling puts on Burlington Northern, the railroad company he's been buying for several months. Buffett knows the railroad is worth more than its current price, so selling puts allows him to capture the premiums without risking anything at all. He's happy to own the stock if it gets put to him. We're doing exactly the same thing in my new Strategy Report.