Monday, April 7, 2008

Doubling Stocks ...The Most Undervalued Mining Company, I've Ever Seen

This week's stock is something special. I know it, my team
knows it, Marl knows it and by the time you have finished
reading this email you will know it.

And there is one vital reason I believe researching this
company tomorrow could be the smartest financial move you
make this year.

First, I'd like to tell you about my favorite industry to
invest in at the moment...

Alternative Energy!

Why? Because it's a hot topic. It's in the media every single
day... And for a problem humans face it's probably the biggest.

Now usually I don't like "hot topic" stocks. Riding the latest
wave usually produces mediocre results, since companies in
"hot sectors" are usually overpriced to begin with.

It's not uncommon for hot companies to have huge price to earnings
multiples... In fact, one of the hottest companies, Apple has
a 33.38 P/E ratio...

In other words it would take over 30 years for the company to
make back (in earnings) any money you invest.

Forgive me, I digress... Because I've found what I consider to
be an absolute rarity...

A hot topic stock, that is virtually unknown!

And this company is operating in the alternative energy field...

But more specifically I'm talking about a silver-gray metallic
chemical element in the actinide series of the periodic table
that has the symbol U and atomic number 92.

Uranium!

Like I said last week, the US and UK economies, aren't looking
healthy at the moment. Highlighted by the very recent takeover
of Bear Sterns at just $2 a share.

The markets may be headed into recession, but there are two
commodities I believe you can count on... Uranium and Gold...

Mineral commodity markets tend to be cyclical, i.e. prices rise
and fall substantially over years. In the uranium market, very
high prices in the late 1970's gave way to very low prices in
the early 1990's.

... In fact they were below the cost of production... and mines
were losing millions of dollars a month!

But on cue, in 1996 prices recovered so that mines could produce
profitably again... But since 2003 there has been a very very
strong recovery.

And because of this, and the mindset of consumers and investors
that energy is scarce further forcing prices higher... Investing
in these markets is I think...

Recession Proof!

And by what I've said you must be thinking that investing in
Uranium as a commodity is a good move... But there's something
even better.

Whenever I investigate and find a commodity is heading into a
bull market... I always... try and invest in a company which
benefits from this bull market instead.

You' see over the years, stocks have provided (on average) far
better returns than any commodity.

And pairing up a strong company, with a strong link to a commodity
expected to increase in value... Is the smarter way to invest
in commodities.

And the company I've picked is a uranium exploration firm whom
base their operations in Saskatchewan where high-grade ore can
be extracted but most importantly (and here's the reason I
chose this company):

... Unlike other Uranium exploration companies this one can
extract the valuable mineral at extremely low production costs
primarily because of where they are located.

You' see the company own several large claim blocks, in a place
called Athabasca Basin. This place is renowned for its low cost
of production... and this affords the company a vital competitive
advantage...

Because Uranium is purchased solely on the price, (apart from if
the quality is inferior)...

Profit Margins are Slim...

And therefore the ability for one company to have a lower cost
base means they can charge less, and make more. In addition
they'll have more profits to invest in exploration and they'll
be able to continue operation even when times are hard.

And this company have their own "secret weapon".

One of the companies staff is a maverick of the mining industry:

I cannot name him, but he has been in the mining industry for 18
years... And during this time he was instrumental in the discovery
of million dollar gold deposits in Nevada and South Carolina.

He has helped find mines which have taken companies to millions of
dollars in annual profits.

This guy is also an authority on professional geology, and is the
author of numerous acclaimed publications.

But most importantly for us, this company is operating in a
"hot topic" industry... And it has been flying under the radar
of almost every investor.

In fact... This company is I believe undervalued even in comparison
to normal companies, but in comparison to similar hot topic stocks...

It's an Absolute Bargain!

Now I must tell you, I don't usually like to invest in stocks that
are undervalued. And by this I mean, for example, companies that
are selling for $500 Million with $600 Million worth of real estate
or oil or anything that can be fairly easily turned into cold hard cash.

You' see stocks like this can be a bargain. And they are almost
guaranteed profits... But it can take up to 5 years for the market
to finally correct the price, and take into account the resale value
of the factories (in this example).

... And so the only reason I chose this stock as a value play, was
because... It is in a "hot topic" area... And so I believe the process
of the market re-evaluating it could take...

Just Two or Three Weeks!

By the way, there is a strange, and unusual reason the company has
kept itself "under the radar"... And I'll explain why in tomorrow's
report.

If you want to read that email, as soon as it hits your inbox, I
suggest you have your email inbox open at precisely 9:30AM tomorrow
morning... That's when I'll be sending an intriguing report with all
my findings.

Best Regards,
Michael Cohen

P.S: A number of members have left feedback that they occasionally
receive the "warning email" (this email)... But not the actual
newsletter during market open.

Because of this, I've setup a page where you'll be able to view
tomorrow's stock pick report online (At 9:30AM EST)...

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