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Stephen Leeb, Ph.D., Research Chairman Dear Reader, Yes, it’s been a very tough market. I don’t want to trivialize the precipitous sell-offs and the incredible, white-knuckle volatility. But if you’ve been reading my analysis, you know that our Portfolio is well-positioned to minimize risk and maximize income. You’ve also read my comments that these are incredible times. Never, ever have I seen such volatility. And, never ever have I seen a market so ripe with short-term opportunity! And, although I know your primary interest is low-risk, income-producing investments, I’m writing to you today to encourage you to take advantage of what may prove to be a once-in-a-lifetime opportunity for quick and significant profits courtesy of this unprecedented market. I’d like you to take a look at Leeb’s Ground Floor Trader, a new, specialized advisory that concentrates on the kind of quick explosive gains that can help to erase some of the damage caused by the recent sell-off. Let me show you what I’m talking about and why I think, right now especially, even the most conservative, income investor ought to consider this strategy for at least a portion of his retirement money. Since launching Ground-Floor Trader, we’ve racked up gains of:
String a few quick gains like those together and you can make up for the recent carnage in short order. Of course not all our trades have been winners, but I hasten to add that all of the above trades were made without the benefit of the flood of money that’s on the way thanks to almost $4 trillion in until-reentry side-lined hedge-fund money! When all that money gushes into play, you’re going to see incredible short term gains in certain low-cost stocks. Extraordinary Times Justify Extraordinary Measures! Don’t get me wrong. I’m still 100% in favor of loading up on the stocks of companies that pay the highest dividends and putting most of your money where it’s not only sheltered from risk, but producing the greatest yield. But, I simply can not, in good conscience, sit by and not alert you to opportunities to cash in on what should prove to be absolutely spectacular short-term profits. Remember how fast things came tumbling down? Well, a few (but by no means all) under-priced, rigorously-researched stocks are getting set for an equally explosive return trip! There’s never been a better time to make quick and significant profits of…
…by taking advantage of short-term moves. And I want to help you go along for the rocket ride. There are four simple reasons why now, perhaps as never before, certain low-priced stocks are about to leave range-bound indexes in the dust: First: there’s $4 trillion in cash still sitting on the Wall Street sidelines. Most of that $4 trillion came out of the market as hedge funds, money managers and mutual funds fled for the exits. But, that much cash can’t stay parked in lowyield T-bills for long. All that cash is like a railcar of nitroglycerin waiting to explode. When the hedge funds and the heavy hitters get back in, it’s going to create unbelievable upward pressure. But here’s the thing, the hedge-fund jockeys have got to keep their big-money clients happy by making up for lost time and money. They need to post some big numbers as quickly as possible. So, with the economy struggling through a serious recession, and even though many blue chips are tantalizingly cheap, one thing is certain, there aren’t enough blue chips to absorb all that money. The name of the game will be where to get the most bang for the buck. And that dictates a move toward beat-up, under-priced, low-cost stocks. Obviously, it’s a lot easier for a stock that’s trading at $3 or $4 to double or triple than it is for a giant like Google that’s trading at $400 or $500 to double or triple anytime soon. Of course, as in every market, there will be laggards as well as supernovas. Not every battered and bloodied, under-priced stock is going to blast off. To maximize your short-term profits as that $4 trillion floods back into the market, you need to think like a hedge fund manager. You need to know the special conditions that position a few under priced companies for the kind of quick—days or weeks—gains of 20%...30%…50%…even 75% that can help you forget the recent ugly market. Remember, $4 trillion flowing into the best of the low-priced stocks is going to create explosive upward movement. But this is not a tide that will lift all boats. You’ll need to be very selective, and a bit more nimble, able to pounce at the right moment and take your profits in a matter of days or weeks. To help income-oriented investors do just that, I’ve created a new advisory, Leeb’s Ground-Floor Trader. More details follow, but first the other reasons why, even though you are primarily interested in income, these unprecedented market conditions beg for an additional approach: Second: the market is likely to gyrate wildly but go nowhere! If you were investing back in the 60s, you no doubt remember that agonizing period when the stock market rose and fell repeatedly, but ended a 20-plus run exactly where it began. I hate to say it, but for years to come, we could be looking at a repeat cycle—a volatile, bipolar DJIA that continues to post weekly gains and losses of 1,000 or more points. The combination of sudden and massive amounts of capital flooding the stock market together with fear over higher inflation guarantees continued volatility. Stock prices will continue to gyrate up and down within a confined trading range. I’m afraid we won’t see 14,000 again on the DJIA for a long time, perhaps several years. As you know, trading ranges are marked by short-term price swings within clear boundaries. They are frustrating for anyone holding a diversified portfolio for the long-term (although certain inflation-leveraged stocks, like those featured in LIP, should do very well). But the great thing about trading ranges is that they offer plenty of opportunities for short-term traders to buy near the bottom of the range and sell near the top. Repeat that process regularly, and you can make a lot of money in a relatively short period of time. I know that this market is nerve wracking for buy-and-hold income investors but, even if you don’t consider yourself a trader, you’re shortchanging your retirement if you don’t dip your toe into these fertile waters. My new service, Leeb’s Ground-Floor Trader, is specifically designed to limit the risks of short-term investing and make it simple and easy for the investor who doesn’t want to get involved with puts, calls and options. I’m talking about identifying a few stocks that are literally bursting their tethers, pouncing on them just before they let loose, and then selling them in a few days or weeks for profits of 20%… 35%…hopefully even 50% or 100-plus percent! Third: as inflation and a global slowdown stifle earnings, the market will become even more opportunistic. As a subscriber to my LIP, you know that despite the recent drop in oil and the sell off in commodities, I remain very concerned about the risk of runaway inflation. I still believe we’re headed back to $150 crude and ultimately onward to $200 a barrel and higher. Despite the so-called global slow down, the growth genie is out of the bottle. There’s no way to permanently stop the tremendous wave of modernization taking place in the developing world—Chindia, South America, and even Africa. 50% of worldwide growth is coming from the developing world. Demand for commodities such as oil and copper must inevitably lead to inflation. It’s going to be like the 70s but this time on steroids. Expect inflation to hit a high of 12-15% at some point! Runaway inflation will limit the stock market’s recovery. It could be years until we see the DOW above 14,000 again. With the Dow and the S&P stuck in a trading range, the savvy money, the hedge fund and mutual fund managers will be forced to seek significant profits in smaller, lesser-known stocks that haven’t yet enjoyed a run up. And, when Wall Street takes a fancy to one of these low-cost stocks it can literally double in days. Our job is to identify them early so you can swoop in, buy a few shares, and then take your 20%…35%… maybe even 50% profits and get out. Another way you’ll make money off of short-term moves is to get in early on under-priced companies that are ripe for a takeover. Companies that have developed a strong competitive edge—such as a new drug, a resource discovery, or breakthrough technology—are prime candidates for short-term gains. Once they’ve established the value of their assets, they can sell themselves to their larger peers with the resources to develop those assets.The result is often a big leap in the share price, and a big reward for early investors, often in a matter of just weeks or months. The challenge of course is in being ahead of the crowd. Obviously, we needed to construct an easy-to-use, real-time advisory to help you maximize your short-term returns— one based on a straightforward “buy low, sell high” method, that doesn’t involve risky or complicated options techniques like calls, puts or straddles. I’m happy to announce that I now have a way to do all that. And it couldn’t have come at a better time.You see, there are going to be a lot more short-term trading opportunities over the coming months that you won’t want to miss. Fourth: stocks of many superb companies are trading at 40%… 55%…even 70% and more below their October 2007 highs. Many stocks may never regain their previous highs. For most that eventually do, it could be a protracted and halting journey. But in some cases, as it panicked for the exits, Wall Street indiscriminately tossed the baby with the bathwater! There are many strong, profitable, well-positioned companies, in key recession-proof industries trading at ridiculously low prices. Even blue chips are now trading at ground floor prices. In addition to anticipating short term swings, my new service, Leeb’s Ground-Floor Trader identifies stocks that represent other types of short-term opportunities.You’ll also have the chance to profit from … Low-Priced Growth Stocks. One of the ways to target bigger short-term gains is to focus on low-priced shares.This gets you greater leverage without resorting to high-risk strategies like options or short-selling. Here’s why… If you buy a $100 stock and it goes up $1, you’ve only made 1%. But if you buy a $5 stock, a $1 gain equals a 20% profit. I expect low- priced stocks of rapidly expanding businesses will give us some of some of the biggest gains in the market this year. Turnaround Plays. These are stocks with great potential that have been unfairly marked down by the market—sometimes because of temporary problems that are being resolved, sometimes because fundamentals get misinterpreted. Fortunately, sometimes all it takes is some positive news to make these shares jump back towards their former highs—giving a quick return for investors who bought during weakness. Short-term Dips in Long-Term Holds. Market dips are a great opportunity to load up on our favorite inflation-leveraged plays. For example, my favorite long-term inflation hedge is gold. In July-August, gold held up very well while most stocks—including gold shares—took a tumble. But with interest rates dropping, they won’t stay down for long. So we told short-term traders which gold stocks to buy while the bargains lasted. Intel, General Electric, National Oilwell Varco—all these are the long-term favorites with short term trade potential.… Spin-Offs. Sometimes a large company will take one of its divisions public—usually because that division has a unique edge that will attract a lot of new investment. For example, a 2007 spin-off of EMC gained 44% in the first 8 days of trading—and we were along for the ride. Stocks in each of these categories tend to make sudden, huge moves upwards, giving you sizeable gains. Sometimes these moves occur over the course of a year. Sometimes it takes only a few months or even weeks. And some very exciting moves happen in a matter of weeks or even within a day. But before I tell you how to sign up, there’s one factor you should know about that’s essential to trading these stocks successfully… Buy and Sell At The Right Moment To Maximize Your Returns Like I said, the key to taking advantage of these short-term plays is timing.When a great opportunity appears, you may only have a few weeks or even only a day to take your position. Likewise, when it’s time to sell, you must often act quickly to get out at the top.That’s why I’ve designed Leeb’s Ground-Floor Trader to get you the information and trading signals you need, right when you need them. Every day, my staff and I scan the markets for low-priced stocks that are gearing up to make a big move. Generally, we find great opportunities once a week, and sometimes more often. And when we find an opportunity too good to pass up, we send you an Instant Trade Alert by email or fax (your choice). In fact, if you like, we can even call your cell phone with a message telling you to check your email or fax machine for the latest Alert. The Instant Trade Alert tells you everything you need to know about the opportunity—what makes the stock appealing, why the timing is ideal, how much you should pay for your shares, and everything else you need to place a trade. We make it as easy as possible. We don’t do any trades involving complicated option methods such as naked puts, strangles, spreads….There’s no difficult vocabulary to learn. And because email is so fast, you can execute a buy order just minutes after the stock has passed our scrutiny! To help you keep track of all your positions, we will send you a weekly update, also by email or fax. Each update will cover important developments about the companies we are currently holding. Plus, you’ll get our take on current market conditions and advance notice about what to expect for the coming weeks. When it’s time to sell a stock, we’ll email you another Instant Trade Alert, so you can get out within minutes at the best possible price. There’s no worry or guesswork involved.We make short-term trading as easy and effortless as possible, so it will take only a few minutes a week for you to participate in some very exciting opportunities. In fact, if you like the idea of making big money in short periods of time, Leeb’s Ground- Floor Trader is the ideal tool to help you.There are just so many opportunities lined up for the next few months where a nimble trader could make a real killing. But before you make up your mind, there’s something else you should know. I have something else in store for you that could spell even higher profits … Special Bonus Collect Your Share of the $Billions About to Be Made In Coming Wave of New IPOs! As I mentioned earlier, the backlog of IPOs that’s built up due to the financial crisis is about to create a tidal wave of new offerings. For some time now, I’ve been editing a very successful service that helps investors like you make money in Initial Public Offerings—stocks being offered for sale to the public for the first time. As the financial community regains its confidence, I expect to see literally billions of dollars worth of IPOs take place, making this a market you don’t want to miss out on. What’s really great is that IPOs have many of the same characteristics as the stocks featured in our other short-term trades.They are generally low-priced (so you get leverage), and the best of them make very big advances in a short period of time—sometimes in as little as a few hours. For instance, here are some of the returns my IPO traders have made before the arena went quiet. Considering the short holding times, these are exceptional gains and we should see plenty more of them as things get going again…
As with our other stocks, the keys to successful IPO trading are to choose stocks with a strong competitive advantage, and to get in and out at the right moment. If you love trading lowpriced stocks, chances are you’ll love IPOs as well. In fact, if you’re serious about becoming wealthier in today’s market, IPOs are an area you shouldn’t ignore.Which is why I’m prepared to make you the following Special Offer… Save $2,000 By Taking Advantage Of Our Low Charter Rate—Plus Get IPO Trades For FREE! Normally, a subscription to Leeb’s IPO Trader costs $2,995—a good deal considering all the hard work we put into it. But to save you having to subscribe to both services, I’ve decided to combine them and give you access to all our upcoming IPO trades FREE with your participation in Leeb’s Ground-Floor Trader. That way, you’re essentially getting two high-powered trading services for one low price. What’s more, because Leeb’s Ground-Floor Trader is a new service, I’m able to offer it to you at a special Charter rate of just $995 for the first 12 months— a savings of $2,000 off our regular rate. However, in exchange for making you this Special Offer, I want you to promise me something. You see, short-term trading is a more aggressive strategy. I want you to promise me that you will use good money management techniques to limit your risk. Decide right now to keep the bulk of your assets in safe, longterm investments, while setting aside a smaller percentage for short-term trading. In addition, I want you to diversify that short-term money equally among the many recommendations we make—no putting all your eggs in one basket! By following these two principles, you will be better equipped to handle volatility, and improve your chances of making spectacular long-term gains. At the same time, let me assure you that my staff and I will do everything possible to present you with only the best trading opportunities available. Even better… I invite you to try Leeb’s Ground-Floor Trader RISK-FREE for the next 60 days. Sign up today, and we’ll begin sending you our Instant Trade Alerts and weekly Leeb’s Ground-Floor Trader updates.You can follow them or just trade on paper to see how well we do. Anytime within the next 60 days, if you decide not to continue, just let us know and we will promptly refund every penny of your participation fee. In other words, it costs you nothing just to try us out. Let me also assure you that, even after the first 60 days are up, you can cancel at any time and get the balance of your fee refunded. So you really have nothing to lose. Just complete the form below, and I’ll get you started on some of the most exciting trading opportunities in the market today. Sincerely, Stephen Leeb, Ph.D. P.S. When you choose to participate in Leeb’s Ground-Floor Trader, I’ll also give you an access to a FREE copy of Leeb’s IPO Trader User’s Guide.This guide features all the techniques and strategies you need to know to make money trading Initial Public Offerings. It will prove especially helpful to you, since you will be getting all our IPO trades along with our other low-priced stock trades—a combination which I expect you’ll find extremely profitable in the months and years ahead. |
