To Run China's Biggest Lottery Expansion
"When you add up all the new business
[this company] has gained over the last few
weeks, you'd think it won the lottery."
~ Investor's Business Daily
From the Desk of S&A Analyst Braden Copeland
Thursday, September 02, 2010
Dear Reader,
I've uncovered an opportunity that could make you a quick 100% gain.
A few months ago - on July 1st, 2009 - the Chinese government approved a new gambling law, allowing lotteries to operate across the entire nation... expanding China's gaming markets for the first time in decades.
In a country that's "home to the most fanatic gamblers," as the New York Times reports, that means just one thing:
If you're an early investor in the lottery business, you're set to make a killing.
According to Peking University researchers, China's lottery is estimated to grow into a whopping $150 BILLION industry, thanks to this new law.
That's almost 3 TIMES the size of the U.S. lottery market, which is currently the world's largest.
It's also equivalent to the economic output of entire countries such as Egypt and New Zealand!
And that's a conservative estimate.
David Green, a gaming expert at PricewaterhouseCoopers, says the market could potentially be as big as $600 BILLION per year.
But the most incredible part is, one little-known New York City company just won an exclusive 15-year contract with the Chinese government to run the biggest legalized lottery boom in history.
The amount of money at stake here is incredible.
This U.S. firm started operations in China full swing last quarter...
In just 4 months, it raked in more than $100 million in profits... with much, much more to come.
I believe this stock could easily DOUBLE your money within the next 6 months.
But as I'll show you, gains of 1,000% or more are possible.
How can I be so sure? Well...
This isn't the first time a new gambling law has been passed in Asia.
And certainly not the first time you could have made a fortune riding the wave of profits that almost always follows the passage of such laws.
For example, in 2002, a tiny independently governed region off the southeastern cost of China legalized casino gambling for the first time in its history.
You've almost certainly heard of it: Macau.
What you may not know is that, within just a few short years, Macau overtook Las Vegas as the most profitable gambling destination in the world.
When one of the first casinos operated by U.S.-based Las Vegas Sands opened in May 2004... a phenomenal crowd of 30,000 folks clamored to get in.
90% of them traveled from mainland China. Just to experience a new and exciting gambling phenomenon.
"You can set up 10 Macaus and you still won't saturate the market because there are just too many people," says Sheldon Adelson, CEO of Las Vegas Sands.
Adelson's Macau casino was so profitable, it recovered its initial cost of $330 million within the first 11 months of operation.
"That's unheard of," says David Green, a gaming expert at PricewaterhouseCoopers. Returns like that aren't at all common in the casino business.
Since Macau's new gambling law was passed, the money has been spreading like wildfire.
Each day, around $27 million flows into the tiny city.
And for U.S. investors who got in on the Macau trend early, the payouts were simply astounding...
Las Vegas Sands (NYSE: LVS) was one of the first American firms to set up shop in Macau after the government legalized gambling.
You could have made 320% gains if you'd got in after the company's December 2004 initial public offering.
Wynn Resorts (Nasdaq: WYNN), another American company that opened a profitable casino in Macau, could have made you 1,325% gains in just 5 years.
Melco International, a Macau casino stock, shot up as high as 1,700% after the new law was passed.
Hong Kong-listed Shun Tak Holdings, a Macau-focused conglomerate, more than quadrupled since December 2003.
And incredibly, in November 2004, the shares of a little-known technology company called Cyber On-Air Group skyrocketed 542% in one day after it announced plans to invest in a hotel-casino project in Macau.
My point is, there's one trend that's been a surefire investment bet over the past few years, no matter what has happened to the stock market...
Every time a new gambling law is passed in Asia, investors have made a fortune.
And Macau isn't the only place you could have seen phenomenal gains recently...
make 1,350% gains
The government in Hong Kong, another independently governed region in Asia, authorized something unprecedented last April:
Lottery games through the Internet and mobile phones.
If you had been paying attention, you would have noticed that a tiny Internet company called VoDone Limited moved immediately to take advantage of this new legislation.
VoDone launched a "lottery channel" on its website, attracting millions of enthusiastic Asian gamblers.
The tiny stock listed on the Hong Kong stock exchange shot up 300% in ONE month... and could have made you 1,350% gains in 7 months.Incredible, isn't it?
Something similar happened in neighboring Thailand as well...
After years of tightly enforced bans on gambling, the Thai government decided to pass a new law allowing online lotteries last year.
A company called Loxley moved in to cut a deal with the government.
If you had been following the story, you could have banked 228% gains on the stock, right after the deal was announced.
And then there's the story of a small British company called PartyGaming...
In 2008, they introduced new online poker games in Asia Pacific countries like Singapore, Taiwan, and the Philippines... after months of waiting for the right government approvals.
If you had taken a stake in this penny stock, you could have watched your shares TRIPLE in just 6 months.
I could go on. But you get the idea...
Every time a new gambling law has passed in Asia, big gains followed like clockwork.
Right now, thanks to a new Chinese lottery law... and a little-known American company that moved in early to take advantage of the coming boom...
You have another historic opportunity to make a fortune off Asia's gambling craze.
And this time, I anticipate the gains could be even bigger, because of one key factor...
When I was in China recently, I saw something no one had prepared me for.
It wasn't the booming economy. Or the jungle of brand-new skyscrapers. Or even the sheer number of people.
No. What amazed me most was how almost every ordinary Chinese person was crazy about gambling.
Every third storefront along the city streets has guys sitting out front playing cards and other betting games... with a pot of cash in the center.
And that's how I knew China's new lottery story could be HUGE.
Because, as you might guess, only wealthy Asians can travel to Macau, to indulge their gambling craze in fancy casinos.
Even with Internet games and mobile phone lotteries like in Hong Kong, Singapore, and Thailand only the relatively rich have access.
But China's new lottery is unlike anything the global gaming industry has ever seen...
With the introduction of lottery tickets and new types of instant games sold in almost every local store... even the average Chinese with just a few yuan to spare is a potential customer.
|
"It will be dramatic," says Gary Newman, head of Global Lottery Corporation, a Las Vegas-based lottery technology provider.
Andrew Gellatly, editor of London-based journal Gambling Compliance, calls China "the new frontier of the global lottery industry."
And as I mentioned, David Green of PricewaterhouseCoopers estimates the market could potentially be as big as $600 BILLION per year.
That's almost 60-TIMES bigger than Macau!
Bigger than any of the gambling opportunities we've seen in other Asian countries.
Right now, one New York-based firm has the lead in capturing a big chunk of China's legalized lottery market.
This U.S.-listed company has secured a 15-year contract with the Chinese government to supply "instant-win" lottery tickets in every region of the country.
(These instant-win tickets are very similar to the scratch-off tickets you see in nearly every convenience store here in the States.)
The firm has set up a state-of-the-art, multimillion-dollar facility the first of its kind in China to produce lottery tickets.
And just to show you how much demand they anticipate, the facility is equipped to produce 4 billion instant tickets per year...
And the company recently said in a press release that they anticipate "adding another four billion of ticket printing capacity [to] meet existing demand in the market."
In other words, they plan to churn out 15,000 lottery tickets every minute of the day.
Here's why I think this stock is a safe bet to double your money in 2010...
a deal with the Chinese Gov't
Put simply, this little-known company is an innovator in instant lotteries.
Although most people have probably never heard of it, the company produces instant scratch-off tickets and promotes new lottery games across almost every state in America.
For example, they recently created a very successful "scratch and sniff" game for a famous candy company, to help increase Christmas sales.
But its success in the U.S. is nothing compared to the possibilities for growth in China... which is just beginning to expand its lottery market.
This New York company was smart. It moved into China in 2007, when almost no one was paying attention to the lottery industry.
The company's American executives gradually made important contacts in the Chinese government's gaming commission... going so far as to start a 50% joint venture with a local government-backed gaming firm.
Not surprisingly, in 2009, when the government issued a new gaming law - opening up China's lottery market for the first time in decades - the firm was already poised to benefit.
Thanks to its first-mover advantage, this New York company secured access to lottery ticket sales in 22 provinces across China.
But the most important thing for you to know is this:
This U.S. firm provides something the Chinese have never had before: new, innovative instant scratch-off games.
And as we've seen before, every time there's been an exciting new gambling phenomenon in Asia, savvy investors have had a chance to see incredible gains.
Conservatively, I estimate you could bank a quick 100% gain over the next 6 months with this U.S.-listed stock...
And I think you could make 2 to 3 times more money over the next few years, as China's lottery booms.
But as you saw with Macau and Hong Kong, gains of 1,000% or more are not out of the question.
If this sounds like something you'd like to get in on, the full details are in a Special Report I've just prepared, called: How to Profit From China's Biggest Lottery Expansion.
If you're interested, I'd like to rush you a copy immediately, absolutely free...
My name is Braden Copeland.
I've been working closely with Porter Stansberry for the past year on one of Stansberry & Associates' most successful research advisories.
It's called the Inside Strategist.
I spend the majority of my time combing through company 10-Ks, annual reports, Bloomberg data sets, and technical stock charts.
But the truth is, the only way I come across truly breakthrough investment stories is by being on the "inside" of a major opportunity.
For example, I saw China's gambling phenomenon first hand on a recent research trip.
If I hadn't spent the time, energy, and money to investigate the full story, I would never have found the opportunity I just told you about.
When I visited Shanghai, Shenzhen, and Guangzhou I made it a point to talk to folks on the ground. I visited factories... spoke to the workers and management teams... took notes and pictures.
When I got back, I looked into China's new gambling law. I researched the small U.S.-listed company that won an exclusive 15-year contract to run China's biggest private lottery.
And when I made inquiries about company insiders, I noticed they were loading up on the company's stock like I'd never seen before.
My point is, to get the "inside" scoop on a major investment opportunity, it's not enough to simply analyze stock charts and read analyst reports.
Sometimes you need to travel, to see things first hand. Sometimes you need to have the right "insider" connections.
That's how my colleagues and I at S&A Research have made some of our biggest gains in the past:
- For example, back in 2005, Steve Sjuggerud received information about a penny stock that had made a mammoth gold discovery in Canada. He followed up by traveling to Vancouver and meeting with the company's CEO to get the inside story.
- In 2008, in the middle of the financial meltdown, Porter received some pertinent information from a trader at Fannie Mae. He dug into the story and figured out that Fannie Mae and Freddie Mac were going to zero. Some subscribers made as much as 2,000% gains thanks to Porter's prediction.
- Last year, my colleague Dan Ferris traveled to a remote village in Western Newfoundland to get the inside story on a mining stock. He met with and followed a 12-man exploration team.
- And just last month, our in-house energy expert Matt Badiali went all the way to Papua New Guinea to get the details on a world-record natural gas discovery. His recommendation resulted in a quick 10% pop in just days, with potentially hundreds of percent more to come.
It resulted in 919% gains for subscribers... one of the best performing plays we've ever seen at S&A.
His on-the-ground reporting resulted in 321% gains... and still climbing.
That's why Porter decided to create an entire advisory research service centered on the idea of tracking and using "inside" information.
And last year, he hired me to helm this service.
Inside Strategist is a weekly advisory newsletter that tracks all the information we receive from experts with "inside" knowledge of an investment situation.
We often travel to get the full story. We interview company insiders and industry experts. We also constantly monitor SEC Form 4 documents and track what company insiders are buying and selling.
The most important thing for you is our track record...
In 2008, the stock market was down 37%. Here's a snapshot of what our winners looked like:
- 100% on Chesapeake Energy (in 2 months)
- 100% on Williams Companies (in 2 months)
- 64% on Regions Financial (in just 6 days)
- 100% on Smithfield Foods (in just 2 weeks)
- 63% on insurance firm Conseco (in 1 month)
- 85% on building company Centex (in just 28 days)
- 104% on tech firm VeriFone (in 6 months)
- 56% on auto supplier Dana Holding (DAN) (in 1 month)
As I said, the full details are in my Special Report: How to Profit From China's Biggest Lottery Expansion.
I'd like to rush it to you free of charge. In exchange, I only ask that you try a subscription to the Inside Strategist for 90 days.
Now, there are several companies you can hire on Wall Street that will track what company insiders are doing... and monitor Form 4 documents for you.
The best service we know that does this costs $20,000 a year.
Inside Strategist doesn't cost nearly that much. In fact, our service costs less than a subscription to the Wall Street Journal.
But the big difference is, thanks to our vast network of contacts and our on-the-ground reporting, we can do something none of these other firms can do...
Which is access and track information that never even shows up on SEC documents.
Let me show you what I mean...
the ultimate gold insider
One of our most trusted contacts happens to be one of the richest and most successful gold traders in the world.
But he doesn't run a mutual fund or hedge fund, so his trades and personal holdings are not mainstream information.
You may have heard us mention his name before: John Doody.
Well, John just alerted us to an opportunity that could double your money... on a very unique gold stock.
Why should you care?
Put simply, Doody tells us he went from being an economics professor at a small college in Massachusetts, earning $40,000 a year... to making over $5 MILLION just by using a simple strategy he invented for picking gold stocks.
According to him, this strategy has made 390% gains over the last decade, even as the S&P 500 dropped 40%...
Which is why, he now spends his time sailing his yacht between his condo in Florida and his vacation pad in the Caribbean.
In other words, he has enough money to retire luxuriously and never work again.
John's gold picks have done so well, Barron's has profiled him numerous times, saying his strategy works "spectacularly."
Bottom line: when John Doody calls us with a new gold stock idea, we listen.
Back in July 2009, John gave us information on three small-cap mining firms.
Two of them shot up as high as 57% and 32% shortly after we recommended them. (And still have a long way to go.)
The third, a tiny firm called European Goldfields, gave Inside Strategist subscribers a chance to bank 85% gains in just 5 months.
Just the other day, John called us about a fourth. This one, he tells us, could rack up even higher gains...
John Doody's latest recommendation has an unending share of profits in a huge new gold mine in Mexico.
The mine is set to produce about 500,000 ounces of gold. The revenue from this is estimated be about $1.5 billion, easily putting it in the big leagues.
But the best part is...
Instead of owning and operating a big, expensive mine... this firm simply collects royalties on the gold sold every year which it then passes on to shareholders.
The company doesn't actually do any of the mining work itself. Another larger mining firm operates the mine.
In fact, this tiny company has so little overhead, it only employs 17 people.
Along with the huge new mine in Mexico, this royalty company owns interests in 20 other mines...
"Given what they have in their pipeline," John told us, "the company said they could see the order of $160 million in royalty revenues. That's almost $4 a share."
Very simply, John believes that thanks to the revenues from the new mine in Mexico, this company could pay out HUGE dividends this year. Not to mention, the stock could easily DOUBLE from here.
We just put together John's research in a Special Report called: An Easy Double Thanks to the Ultimate Gold Insider.
Inside, we share with you exactly what company John is recommending (and how to buy it).
In addition, you'll get the full details on a second gold stock that John thinks should see significant gains in the next few months anywhere from 60% to 160%.
I'd like to give you access to this report free of charge... along with the report I told you about earlier, How to Profit From China's Biggest Lottery Expansion.
To get access, I only ask that you try a subscription to the Inside Strategist for 90 days.
Let me quickly tell you a little more about our investment philosophy and this letter so you can decide if it's right for you.
You can't possibly know everything going on behind the scenes in the market. No individual in the investment world is that connected...
That's where Porter and I (and our network of connections) come in.
Because of Porter's unique position as the founder of a publishing company with subscribers in over 100 countries, he has access to a number of insiders across different countries, markets, and sectors.
And my experience as founding partner of a $1 billion commercial real estate firm... as well as venture capitalist for a music band with a platinum debut album and founder of a successful motorsports business... make us a formidable investment research team.
Very simply, we don't miss much.
In the pages of the Inside Strategist we use our expertise and connections to help our readers see huge gains in a number of ways:
- We often travel all over the world to ferret out investment opportunities. Being on the ground... seeing things first hand... and talking to the people involved helps us get the "inside" story.
- Often, our contacts inside various companies will alert us to great buying opportunities.
- We have a lot of friends with 20, 30, even 50 years of experience investing in their particular fields, whether it's oil exploration or gold mining.
Like our friend John Doody, who just recommended two gold stocks he thinks could easily double. - Sometimes, we find the biggest gains by monitoring insider buying and selling at various companies. We keep track of literally hundreds of promising companies every week.
But, we don't recommend them until we've seen a firm commitment from insiders to put their "money where their mouth is." We've had a lot of these types of plays recently, like our recent recommendation of Chimera Investment Corporation (CIM), an investor in mortgage securities.
For example, a buddy of Porter's is the CEO of a pharmaceutical company. Thanks to a conversation Porter had with this gentleman, S&A subscribers had a chance to make 207% on a biotech stock called Elan.
Like clockwork, within a few weeks, the company raised its dividend, reported 50% higher earnings... and watched its stock spike over 50%.
And we went along for the ride.
Think he knew something the rest of us didn't?
I do.
We recently found another company in a similar situation...
make you 50% gains
This Pennsylvania firm supplies a one-of-a-kind substance useful in cleaning contaminants in things like municipal water systems.
As you might guess, the company's major clients are municipal governments and giant utilities.
In other words, big contracts from the government often boost this company's share price tens of percentage points higher.
Normally, you and I would never be tipped off before such an event occurs.
But here's the thing...
Recently, a major insider at the firm TRIPLED his stake in the company, buying $500,000 worth of stock. An unusual move, to say the least.
Even better, the company recently announced that it is waiting for an important decision from the Department of Commerce.
Frankly, I think the news will be good. Why else would this insider triple his holdings in such a hurry?
Clearly, he has a good feeling about the company's future.
According to my calculations, you could bank a quick 50% gain on this play within the next few months.
Unfortunately, I can't give you more details here. It just wouldn't be fair to my paid subscribers.
But I've included all the details in my Special Report, Major "Insider Support Level" Just Reached... It's Time to Get in Now.
When you agree to try the Inside Strategist for 90 days, I'll send you this report as well free of charge.
Here's how to get started...
We monitor the "inside story" on thousands of stocks every day with just one goal in mind: Big, quick gains.
And we put out a new report every week things we've heard, big moves being made, and exactly what you can do to take advantage of them.
If you're looking for buy-and-hold recommendations, this is not necessarily the letter for you.
That's not to say we don't do our homework... or stand behind the stocks we recommend. What I'm saying is, you have to be prepared to get in and get out quickly, if the situations arise.
That's why we publish a report every Wednesday, and send updates as needed.
Do you have to sit at your computer waiting for a "buy" signal?
Absolutely not.
In fact, in some cases, we publish a recommendation with the strict instructions NOT to get in until a certain day. But these are not usually investment opportunities you can mull over for a week or two.
It's this kind of trading strategy that has allowed our readers to make some fantastic gains... even in this rollercoaster market...
"Inside Strategist is a steal. I made 101.4% gain on a single trade."How much can you expect to pay for research as potentially profitable as this?
-- Richard Dunbar
"I made 250% and 100% gains on two of your picks!!!"
-- Hal Green
"With Inside Strategist I have probably made about $25,000 in a year."
-- Tim Pinkerton
"[Inside Strategist] recommendations have helped me rake in over $100,000 in total gains. I made over 100% on two picks, and doubled my money on three different occasions... "
-- Gerry Winston
Normally, exclusive access to this kind of "inside" analysis would cost you thousands of dollars a year. As well as a portion of any gains you made.
Outside marketers have suggested we sell this research for $20,000 or more, which is what many professional traders charge for this type of service.
In the past, we've charged as much as $1,000 per year.
But as I said before you won't pay nearly that much...
within the next 15 minutes
Sign up for the Inside Strategist through this special invitation and you'll pay just $199 for a full year of research.
|
- Special Report #1: How to Profit From China's Biggest Lottery Expansion. You'll find out the name and full details on the little-known New York firm that's set to run the biggest lottery boom in history.
- Special Report #2: An Easy Double Thanks to the Ultimate Gold Insider. I'll tell you all about John Doody's top gold mining stock. He thinks it has an easy chance to double this year.
- Special Report #3:Major "Insider Support Level" Just Reached... It's Time to Get in Now. An insider at a small Pennsylvania firm just tripled his stake in the company before a key government decision. You could make a quick 50% gain following his lead.
It's all there for you to look at our full archive of special reports and email updates, with all of our past recommendations and current recommended portfolio.
If this looks like something you'd like to be a part of, do nothing. We'll automatically extend your subscription for a full year.
If you decide it's not for you, simply call our toll-free number and cancel before your 90-day preview period is up.
You'll receive a full refund, no questions asked.
Even after your 90-day preview period you can still change your mind, and receive a pro-rated refund on the remaining portion of your subscription.
To get started right away, Subscribe Now
Sincerely,
Braden Copeland
Editor, Inside Strategist
March 2010
P.S. Remember, the China gambling play I told you about at the beginning of this letter won't stay within our "buy" range for very long...
The company just received a 15-year contract with the Chinese government. And it's gearing up to produce 15,000 lottery tickets every single minute to satisfy the demand it anticipates from gambling-crazy Chinese citizens.
A Hong Kong company that recently received a similar contract shot up 300% in just ONE month. You'll get all the details on this opportunity within minutes of signing up.