Financial Advisor

Fundamental Potential Values for Gold

Gold is rare.The gold market is small.Gold will go up.A lot!





As I reported yesterday, the study of economic fundamentals is a lost art, a lost science, something that nobody has paid attention to in the financial world for nearly 30 years, except a few "crackpot" independent thinkers like me, who have been making money hand over fist for the last decade as we discovered the bull market in precious metals by studying the basic fundamentals like "Most gold mines can't produce more gold for less than $300/oz." back in 1999.

Sometimes, it's helpful to review the fundamentals of money, in context with the fundamentals of gold and other precious metals markets.

The World GDP is $54 trillion.
http://en.wikipedia.org/wiki/World_gdp

USA GDP is $14.2 trillion
http://en.wikipedia.org/wiki/Usa_economy

USA GDP as a percentage of World GDP is 14.2 / 54 = 26%. The US economy is 26% of the world economy.
What if the GDP of the world ran entirely on the world production of precious metals, and what would the price of the metals be?

World production of silver is 600 million oz./year.
World production of gold is 80 million oz./year.
World production of platinum is 8 million oz./year.
World production of palladium is 7 million oz./year.

Or, another identical question, what if the GDP of the USA ran entirely on precious metals?

What if the USA needed 26% of each of those to run its $14.2 trillion economy per year?

26% of world production of the precious metals is:
156 million oz. of silver
21 million oz. of gold
2 million oz. of platinum
1.8 million oz. of palladium

Well, let's scratch that. What if the USA needed 26% of the world's precious metals to pay its relatively much smaller $800 billion annual trade deficit?

Let's start by assuming a value ratio of 10:1 for silver to gold, as that will help the payments, and of course, the value of silver would go up as monetary demand returns. Let's also assume platinum and palladium are valued at twice the value of an ounce of gold, as they are more rare, and monetization will increase demand, and hence, value.

Converting:
156 million oz. of silver = 15.6 million oz. of gold
2 million oz. of platinum = 4 million oz. of gold
1.8 million oz. of palladium = 3.6 million oz. of gold
21 million oz. of gold = 21 million oz. of gold

Total gold equivalent oz. of 26% of the world's annual production of precious metals = 44.2 million oz. of gold

$800 billion trade deficit ($800,000 million) / 44.2 million oz. of gold = $18,099/oz.
See, gold would have to be worth $18,099 per oz. for the USA to pay the trade deficit with precious metals, and silver would have to be worth $1,809/oz.!
And there would be zero precious metals left over to run the domestic economy, so that's an understatement of a price prediction.
So, if we go back to the domestic GDP, if it ran on all 4 precious metals that would be, um, $14,000,000 million / 44.2 million oz. = $316,742/oz.
Yeah, gold will never go that high. Right? Of course not. A 100 bill is used many times during the year, as money circulates again and again.
So, what if the Annual Budget of the USA used 26% of annual precious metals production?
Currently, the annual budget of the United States is about $3 trillion.
$3 trillion ($3,000,000 million) / 44.2 million = $67,873/oz.
Ah yes, $67,873/oz. is a much more realistic and more conservative figure for a potential gold price.
That's also very close to another figure, M3 money in the banks, divided by US gold.
$14 trillion M3 / 261 million oz. of US gold = $53,639/oz. That measures two comparable piles of static wealth, two forms of savings in the US, one fraudulent (dollars), and one real (gold).

In sum, we have several ideas on where gold will go:
If the Trade Deficit were paid by 26% of the world's mined precious metals, which is clearly an undersatement: $18,099/oz.

If the US Gross Domestic Product were equal to 26% of the world's mined precious metals, an overstatement: $316,742/oz.

If the Annual Budget of the USA were equal to 26% of the world's mined precious metals: $67,873/oz.

If M3, money in US Banks, were equal to the official US gold held in Ft. Knox, etc.: $53,639/oz.

The last two figures are much more realistic, and surprisingly close to each other.

Sincerely,
Jason Hommel

Sell in May and Go Away ?

A common saying on Wall Street is “Sell in May and Go Away”, meaning it's time for you to sell your stocks and take a vacation-because the stock market is going to drop in the summer months.

But, is this saying based in fact or is it just some kind of myth?

Last year it worked, if you sold on May 1st of 2008 and bought back in on October 31st of 2008 you would have avoided a 31% drop in the S&P 500.

But, what if you go back further?

Historically, long-term statistics reveal that most market down periods occur over the six months from May to October. Furthermore, many historical studies show that the old adage holds water.

I crunched the numbers back to 1950 and according to my calculations if you invested $10,000 into the S&P 500 with a strict sell on May 1, buy on October 31 strategy, you'd have more than $500,000 on May 1 of 2009. If you'd just bought and held the S&P 500 during the same period you would have less than $80,000.

Hence “Sell in May and Go Away” has a history of success. But, past performance is not indicative of future returns and does not work every year.

Some negatives to this strategy include higher short-term tax rates because you hold stocks for less than a year, and you pay more commissions than simple buy-and-hold investing.

The “Sell in May and Go Away” strategy works due to seasonal factors like the so-called Santa Claus rallies that typically boost November, December and January performance due to holiday spending. And, April is normally a good month for the market due to optimism on the upcoming first-quarter earnings reports.

And, remember to have a happy May Day tomorrow!

Best Wishes,
Ted Peroulakis.

Hot Market Of the Week - Currencies

Check Out this Recent Opportunity for the Japanese Yen
Japanese Yen Drops Against Majors
The market moved up 219 ticks.
219 ticks = $2,737.50 per contract(about 9 trading days)




When the blue line (forecast) crossed above the black line (actual), VantagePoint predicted the market to trend up. The Neural Index at 1.00 also indicated an expected up trend.

The Japanese yen lost ground across the board on Wednesday morning in Asia plunging to multi-day lows against its major counterparts.

Traders are eagerly awaiting the Bank of Japan's rate decision today. At the end of a two-day monetary policy meeting, the Bank of Japan is expected to keep its target for the unsecured overnight call money rate unchanged at 0.1%.

5 Key Reasons To Invest In Pakistan





5 Key Reasons To Invest In Pakistan
Reason - 1: Geo-strategic Location

Located in the heart of Asia , Pakistan is the gateway to the energy rich Central Asian States, the financially liquid Gulf States and the economically advanced Far Eastern tigers. This strategic advantage alone makes Pakistan a marketplace teeming with possibilities.

Reason - 2: Trained Workforce

Here the people are mostly English proficient, hardworking and intelligent. They have ….lesser costs.

Reason - 3: Economic Outlook

Pakistan is one of the fastest growing economies of the world having touched a GDP growth rate of 8.4% in 2005. Today Pakistan has 160 million consumers with an ever growing middle class. Foreign investment has risen sharply from an average of $400 million in the 1990s to over $ 3.5 billion in 2005-06. Fiscal deficit has declined from an average 7% of GDP in the 1990s to around 3% in recent years. And FOREX reserves have increased from $3.22 billion in 2000-1 to $13.14 billion in 2005-6.

Reason - 4: Investment Policies

Current investment policies have been tailor made to suit investor needs. Pakistan 's policy trends have been consistent, with liberalization, de-regulation, Privatization, and facilitation being its foremost cornerstones.


Reason - 5: Financial Markets

The capital markets are being modernized, and reforms have resulted in development of infrastructure in the stock exchanges of the country. The Securities and Exchange Commission has improved the regulatory environment of the stock exchanges, corporate bond market and the leasing sector. Whilst the Central Board of Revenue has facilitated structural reform in tax and tariffs and the State Bank of Pakistan has invigorated the banking sector into high returns on investment.

April 21st and the Promise of a 118% Gain Is Almost Here

Dear Reader,


I dont want you to feel pressured. But April 21st is right around the
corner.


And Im looking right now at a company whose fake dividend
is about to trigger a 118 percent gain.


Its not too late to join one of the fastest growing groups of people
who get opportunities just like this once or twice a month.


In the last three weeks alone, theyve cashed out on these boring
gains...


* 97.92% from a energy company

* 98.4% from a auto parts company

* 115.96% from a utility.


You see, its no big deal for them anymore raking in triple-digit profits!
Maybe we ve spoiled them.


And, now, were asking for a chance to spoil you. Give us a try and make
one 100%-plus gainer after another a no-big-deal part of your life.




To Your Success,


Andy Gordon




How a "Fake Dividend"

Just Made Me 148.5%


Learn How You Can Follow These "Fake Dividends"

to Triple-Digit Gains With a Strategy That

"Gets It Right" Over 90% of the Time


URGENT


Another "Faker" has now surfaced. On April 21, this company could
hand you profits of 118%. And you can be there right alongside me when it happens.


Dear Reader:


I bet when you were growing up, your parents taught you never to tell a lie.
Mine sure did. And it was for good reason.


There is nothing more important than your honor and integrity.


But it seems that many of today's corporate CEOs didn't learn that lesson -
or willfully ignored it.


For years, our financial system has focused solely on performance in the short
term. Either earnings, revenues, and profit margins go up, or share prices go
down.


The stakes couldn't be higher. Tens of millions of dollars in bonuses and stock
options hang in the balance...


Plus the fate of one company I've recently uncovered...


On April 21, I expect its past transgressions to turn into triple-digit gains
for anybody getting in on this opportunity alongside me.


Secrets and Lies and More Lies


Can you blame CEOs for lying to prop up the price of their shares?


OF COURSE YOU CAN.


Someone has to pay for their lies. And it's usually the shareholders.


CEOs who disguise the shortcomings of their companies... hide their misdeeds...
and make claims that simply aren't true used to be the exception. Sadly, that's
no longer the case.


Have you seen the CEOs of GM and GE recently? They can't open their mouths
without breaking into a nervous sweat.


These smooth talkers live by the "Never let them see you sweat" Wall
Street code. Something sure is bothering them...


Ah yes. The economy is in the dumpster.


Their problem. NOT YOURS.


By spending the next five minutes reading this SPECIAL REPORT, you could make
over 100% gains from your ex-favorite blue chippers pretty much whenever you
want.


How does a powerful blue chip company get on your bad side and become an ex-favorite?
By saying one thing and doing another...


These Lies Led to 105.6% Gains


For example, on August 22, 2007, a powerful banker said of his new acquisition,
the country's largest independent mortgage lender, that he...


"Believes that in the current turmoil the stock
market has been underestimating the value in Countrywide's operations and assets...


With Countrywide's mortgage business cutting corners in every imaginable way
(about 83% of the lender's mortgages were either low-doc or no-doc), he later
swore "We are making every good loan we can find."


A little too late for that, don't you think?


I had seen enough. In October, I made my move. Less than six weeks later, my
readers pocketed a profit of 105.6%.


When the Truth Gets Lost, I Find 103% Gains


Here's another example of a company saying one thing and doing another...


On August 5 last year, a well-known financier said that his bank was...


"Probably 75%, 80% kind of hitting on all cylinders,
if you will. So I think things are ramping up nicely. The market is very attractive."


The following month, the bank threw in the towel and told shareholders they'd
be getting less from the company. I was expecting this about-face and knew exactly
what to tell my readers.


Less than seven weeks later, I showed them a 102.7% profit.


The New Way of Making Money in an

Upside-Down Investment World


I have in my briefcase a list of 340 companies that said one thing and did
another. In 90% of the cases, their shareholders got nailed to the wall.


One of them will be getting its comeuppance on April 21. Shareholders will
scream and shout. But I can't wait. It's going to be a big payday for me. And
it can be a big one for you too.


Shareholders can avoid their losses and double their money from the very same
companies.


How do I know?


Over the past half-year, I've been racking up one 100%-plus winner after
another with these fakers.
In just the last three months, this is what
I've closed out on in my portfolio...


* On January 12... a 100.93% gain

* On December 11... a 148.48% gain

* On November 19... a 105.57% gain

* On October 28... a 102.73% gain


It all became possible when credit dried up and our investment world turned
upside-down.


But so what? You adapt. You move on .And instead of setting the
bar lower (which is just plain giving up), you set it higher.


So I adapted. It took me six months of intense research and testing to work
out a new strategy. At the end of the six months, I knew I had something special.


Now I'm showing my readers the kind of life-changing opportunities I always
knew were possible - bigger gains and more consistent profits - coming in month
after month. And I'm doing it with some of the most boring companies out there...


Utilities, insurance companies, materials companies, cellphone companies...
the very same "steady-as-she-goes" companies that don't like risks
and pursue conservative cash strategies.


By now you must be wondering how the heck I do it. Fair enough. I have nothing
to hide. In fact, I think it's very important for you to understand my strategy.


I want you to fully appreciate just how powerful this strategy is. So when
you've finished reading this SPECIAL REPORT, I'm going to hand you an incredible
opportunity to pocket a big gain within days - AS SOON AS April 21.


Blue Chippers Aren't What They Used to Be


Many of the blue chip "solid-as-Sears" companies have become downright
dangerous.


One day you love ‘em because they're so reliable and predictable...


The next day you hate ‘em because their sweaty, overpaid CEOs decided
to throw shareholders under the bus.


For example, owning Verizon and Pfizer was almost like having pet dogs. You
knew what they could do. And you knew you could depend on them to do their little
tricks to please you. For Verizon and Pfizer, it was giving you dividends every
quarter... without fail.


Then, before you knew it, they turned into teenage children. Now you NEVER
know what they're up to. And whatever they say, you can almost count on the
opposite being closer to the truth.


Check Out These Whoppers


The truth according to John Thain, Merrill Lynch...


"We're very confident that we have the capital
base now that we need to go forward in 2008." (January 18, 2008)


"...Today I can say that we will not need additional
funds. These problems are behind us. We will not return to the market."
(March 8, 2008)


"We have more capital than we need, so we can
say to the market that we don't need more injections. We can confirm that we
have tackled the problem." (March 16, 2008)


On September 14, with the prospect of going into government receivership looming,
Merrill was taken over by Bank of America.


The truth according to Dick Fuld, Lehman Brothers...


"Do we have some stuff on the books that would
be tough to get rid of? Yes. Am I worried about it? No. If you have some repricing
of these things will we lose some money? Yes. Is it going to kill us? Of course
not." (Summer 2007)


On September 16, Lehman filed for Chapter 11 bankruptcy protection.


The truth according to Ken Thompson, Wachovia...


"The mortgage market is going to be a great
market in this country for a long time. We've got population growth. We've got
people who are always going to want to live in homes that they own. It's going
to be a great market." (May 15, 2006)


On October 12, the Fed approved the purchase of Wachovia by Wells Fargo for
a fraction of what the stock was worth in 2006.


The truth according to Martin Sullivan, AIG...


"But because this business is carefully underwritten
and structured with very high attachment points to the multiples of expected
losses, we believe the probability that it will sustain an economic loss is
close to zero." (December 5, 2007)


On September 24, the government took over AIG with its agreement to lend it
up to $85 billion (later changed to $60 billion).


The truth according to John Mack, Morgan Stanley...


"Well, number one, I think this firm has the
capacity to take a lot more risk than it has in the past. So from that aspect,
we're really using our talent in a more productive way than we have had in the
past. I am comfortable with the risk... " (April 2007)


On September 21, Morgan Stanley received permission to become a bank holding
company in order to get better access to cheap Fed funds.


Do They Know the Truth Can Make YOU Rich?


As you can see, truth is just another commodity to CEOs - to be bought, sold,
marked down, traded, and packaged.


The unadulterated truth about these companies would scare most investors. But
in a minute, I'm going to explain to you why it's just another chance for a
100%-plus profit investment.


So guess which company is now acting like a rebellious teenager?


It's none other than the venerable Dow Chemical, lead by sweet-talking Andrew
Liveris.


Liveris has actually done some pretty smart things with Dow. It's not his fault
that demand for Dow's products has dried up. But it is completely his fault
for misleading shareholders.


This is what he said at the beginning of January...


"Dow is the only company in the Fortune 200
to have paid its regular quarterly cash dividend without reduction or interruption
since 1912. That is 388 consecutive quarters. I have said it before, but I want
to say it again, we will not break that streak. Not Dow, not on my watch."


Inspirational words, yes? Sort of like Jack Bauer saying, "Damn it. I
will not let you destroy the United States. Not on my watch. Not in the next
24 hours."


I watched that little speech (Liveris's, not Jack's). He was sweating the whole
time. And here's why...


DOW COULD NO LONGER AFFORD ITS DIVIDEND.


DBDs May look Like the Real Thing...


The next dividend payment shareholders get from Dow will be borrowed or "stolen."
Some unsuspecting division manager will discover that his budget has been cut
in half...


Or Dow will dip into some revolving line of credit...


Or it'll find a new bank to borrow from.


Listen, if a company as big as Dow wants to find that money, it will.


In my book, that dividend isn't real. Real dividends come from a company's
revenues that are left over after costs are paid. DBDs (debt-backed dividends)
come from borrowings. They're completely fake.


Less than two months after making that heartfelt "not on my watch"
promise, Liveris caved. He announced a dividend cut.


And, by the way, he was sweating up a storm.


So why was Dow trying to convince shareholders that a "fake" dividend
was better than a smaller one or no dividend at all?


Why 99% of Investors Get the Right

Signal Wrong


I have 340 case histories that say Dow was wrong. "Fake dividends"
are worse than useless. They give shareholders false hope...


Dow's shameless CEO is simply doing the same "two-step" dance that
many other sweaty CEOs are doing these days.


First step is denying that anything is wrong. Cue the appearance of a "fake"
dividend.


The second step is the actual dividend cut or suspension. This is where we
jump in to make our 100%-plus profit.


You see, I've developed a patented strategy. Nobody else has this strategy
but me...


It uses "fake dividends" to tell me exactly when stocks can
be expected to slip, and for how long.


Most folks who notice "fake dividends" do the wrong thing. They get
scared. And they flee the company like the plague. The faster they get out,
the better they feel.


First off, that's not how you make money. That's how you try to keep your losses
down.


Second, fleeing is not a strategy. It's using your 50,000-year-old "flee
to safety" reflex. And that creates the same problem you would have had
50,000 years ago. If you're not running as fast as the guy next to you, you
could be someone's dinner.


Listen, if you don't know this, you should...


Whenever you can predict which direction the herd will go in, you can make
serious money from it. In this case, you can at least double your money.


And you do it by following the market's BIGGEST AND MOST BASIC TREND. The market
is going down. And that's the way you should invest.


Betting that the most vulnerable companies are going down in a bear market
is exactly the same as betting that the strongest companies are going up in
a bull market.


It would be foolish not to invest with the odds overwhelmingly on your side,
don't you think?


And here's the best thing. If you know where to look, these companies find
you. In fact, there's...


ABSOLUTELY NO GUESSWORK INVOLVED


I don't recommend taking any action until a company itself exposes its dividends
as fake.


And when I do make my move, I make it by myself. As far as I know, no one else
is using this strategy. Everybody else is concerned with what a company with
a "fake dividend" will do in the next 24-48 hours.


I couldn't care less. Let it soar. Let it dive. Let it go sideways. It's all
the same to me.


I have my eyes on a later date. It's too bad investors haven't noticed what
happens to these companies a few months down the road. If they really looked
(not just taking a five-second glance but searching for money-making patterns),
they'd be astonished.


It's like there's a pot of gold waiting for you. All you have to do is pick
the right moment to scoop it up.


But with the passage of a few months, nobody cares about fake dividends.


I care. And you should too. Because I've discovered a way to make big profits
just by waiting.


As I said, the waiting period is almost over for our next big payoff. And you
can still take advantage of this amazing opportunity. Interested? You should
be.


But maybe you want to know more about how all this works. So let me give you
a couple of examples...


Bank of America Bites (the Dust)


On October 6, Bank of America CEO Kenneth Lewis announced a dividend cut of
50%. On October 7, I wrote to my readers...


"Bank of America (BAC) decided to cut its third-quarter
dividend by half yesterday evening because... well... you can't give out what
you don't have.


"It's clear that Bank of America has bitten
off more than it can chew. Making big acquisitions followed by a dividend cut
is highly unusual. Companies usually don't use money intended for dividends
on acquisitions. It shows a worrisome streak of shortsightedness on the part
of management. They saw themselves as one of the winners of the crisis... a
company with enough cash to clean up... not get taken to the cleaners".


On the same day I made a bet that the company's share prices would go down,
this happened..


Bank of America Dropped 90% After Dividend Cut







Share prices dropped, then went up, then fell before rising slightly. Then
they made a sheer drop before recovering and going up. Then another sheer drop.
Finally, they bottomed.


But through it all, I was 100% certain that our position would make big money.


Shares had dropped 78% from when Bank America cut its dividend. Overall, on
these two drops, our profit was 103.25%.


Capital Source's Luck and Money

Finally Runs Out


Capital Source is a REIT. It provides financing for commercial development
and healthcare facilities.


On September 9, it cut its dividend by 92%. On September 10, I told my readers
that I found another "fake dividend" company...


"Capital Source's substantial exposure to increasingly troubled sectors
plus its dividend cut makes it an ideal candidate..."


CapitalSource Dropped 91% After Dividend Cut







Shares went up before they began their long journey down.


On October 1, when the market was rallying on news of an impending bailout
of banks, I wrote to my readers...


"The bailout package will not turn around the
financial sector or, for that matter, Capital Source. It will merely prevent
the worst scenario from happening - which is the wholesale collapse of the banking
sector. Banks will continue to write off bad debt. They will continue to be
strapped for cash. Their earnings will continue to be depressed."


I was right. Banks and financials, including Capital Source, continued to fall.
On October 24, I wrote...


"We are sending this closeout to lock in profits
of 100%... And more good news is on the way. The Dow is down again today. As
it should be.


"Everywhere you look, economic fundamentals
are worsening by the day. People are starting to talk about markets closing
for a week or two. I'm not saying it will happen. But the fact that such predictions
are getting into print means that they're not considered outrageous. But when
the market drops, chances are very good that your investments in the Red Flag
Insider get better. Don't expect these downward trends to stop soon."


On December 11, I asked my readers to lock in the rest of their profits...


"Now is the time to sell the remaining half
of your position. By closing out now, you are locking in profits of approximately
148%."


Macquarie Infrastructure's Dividend

Backed by Pennies


Macquarie Infrastructure has the biggest fixed-base airport operations in the
U.S. and operates gas stations for private jets to gas up, get de-iced, and
receive other services.


On November 7, I told my readers that Macquarie had...


"...just slashed its dividends for the first time
to 20 cents from 64.5 cents last quarter. That's a substantial two-thirds reduction
and reflects the company's concern over the global economic meltdown. The company
should be playing it cautiously. The sectors that it is in are very vulnerable
to the dramatic slowdown in economic activity we're seeing. In its second quarter
- the last quarter it reported on - it disappointed analysts with earnings of
$498,000 or a penny per share.


"With money tight, the last thing the company
wanted to do is dip into its cash reserves or increase its debt. So now you
know..."


Companies hate "fake dividends" as much as investors do. But the
only way to avoid them is to reduce or suspend quarterly dividends. That's a
"damned-if-you-do" and "damned-if-you-don't" proposition
for shareholders.


In all scenarios, the company goes down.


Take a look what happened to Macquarie when it announced its dividend cut...


Macquarie Dropped 91% After Dividend Cut









Less than a week later, on November 14, I told my readers...


font color="#0066FF">"In less than a week, you have made 57%. Go
ahead and cash in half your position in Macquarie. Keep the other half."


Three months later, those who kept the other half were told to cash out. They
made an even bigger gain -- 72.5%.


Every Company in the S&P 500 That Made a "Fake Dividend"
Announcement for the First Time Last Year Saw Lower Share Prices Within 90 Days


It's obvious to everybody except certain pampered CEOs...


Stocks can't be expected to shine in the middle of a recession.


Once you accept this one simple truth, EVERYTHING BECOMES EASY.


All of a sudden you're swimming with the tide. And the tide is bringing in
one 100%-plus winner after another. You can see for yourself on April 21. That's
when our next winner is expected to hand us another huge gain.


Betting against crappy companies in a struggling economy makes perfect sense.
It's the mirror image of betting on the best companies in a healthy economy.


But some people are uncomfortable betting against companies. If you're one
of them, you can stop reading right now. What I'm proposing isn't for you.


Every now and then (less than two out of every 10 times!), investors give "fake
dividend" companies a break. Don't ask me why. But I will tell you two
things about investing:


1. No strategy can correctly anticipate the market's every move. If it looks
like it does, you know you're doing something illegal or you've been hooked
into some Madoff-like scam.


2. The market acts irrationally at times, and there's nothing you can do about
it.


So building redundancy into a trade strategy isn't a luxury. It's a must.


It's why 99% of investing strategies don't work and have win rates of less
than 50%.


Our win rate? It's 90.5%. Our portfolio boasts a win rate of 90.5%! I've even
shown my readers four 100%-plus winners in the last several months.


I know of no other strategy with as good a win rate. (This may sound like boasting,
but I'm just stating the facts.)


Why CEOs Hate Me


CEOs cringe at the sight of me. Investor relations hacks hang up on me. A good
friend told me they call me "Professor Doom" behind my back. (Yes,
I was a professor. And a company CEO. And an international financier.)


They hate me because when I place a bet on their company, there's an 90.5%
chance that the company will go down.


And not just down... but WAY DOWN.


Do I mind having company executives hang up on me? Naw...


What I mind is CEOs feeding investors a pack of lies...


* The CEO of SunTrust, a big "fake dividend" distributor, said cutting
dividends is "the responsible thing to do."


* The CEO of Zions Bancorp, which tried to shore up its "fake dividend"
with a 26% payment reduction, said, "This modification to our dividend
will allow us to further strengthen our capital base."


* The CEO of Washington Federal "categorically" denied that the
company would use the U.S. government's $200 million handout for its "fake
dividend" payments. In the meantime, the company took money from its capital
reserves, not from its real cash profits, to pay its "fake dividend."


* GE is trying to avoid giving out "fake dividends" but is fighting
a losing battle. Moody's said, "Incremental borrowing or reduction of existing
liquidity levels to meet the dividend would be uncharacteristic for a firm with
an Aaa rating."


But sweaty CEO Jeffrey Immelt doesn't seem to know he's in a lose-lose situation.
His recent statement...


"Our objective is to maintain our Triple-A
rating but we do not anticipate any major operational impacts should that change.
We expect to deliver on the 2009 financial framework that we outlined last week."


THEN WHY DIDN'T I MAKE GE PART OF MY "FAKE DIVIDEND" PORTFOLIO?


The other shoe hadn't yet dropped. "Fake dividend" companies always
drop their dividend payments. It's just a matter of time.


So when GE finally slashed its dividend in late February, I was ready.


We don't anticipate it. We don't try to "time" the market. AND WE
DON'T RECOMMEND THAT YOU RUSH INTO THE MARKET AT A MOMENT'S NOTICE.


You don't have to beat the crowd. You don't have to be super-fast. But you
do have to be patient. Take a look at this...


Another Dividend "Faker"







There's an 90.5% chance that this dividend faker will take another major leg
down. And when it does, we'll be in the perfect position to rake in ANOTHER
100%-PLUS GAIN.


It's pretty easy to understand, right?


There are over 7,000 dividend paying companies across the market that may choose
to cut their dividends at any time. Last year, at least 340 "fake dividend"
companies cut theirs. 125 of them were banks.


I can promise you that this year there will be many more than that.


For most of them, this is the beginning of a long fall. Having
chosen the right option could have bagged you an average of 102% gains.


I'm 55 years old. I've followed and evaluated hundreds of investing strategies
in my life. I really believe with all my heart that this is the best of all
of them.


This strategy (quite literally) is made for this market. It's the perfect strategy
for what is going on in this market RIGHT NOW.


So it's hard for me to understand that...


NOBODY ON WALL STREET GETS IT


I suppose that this is not completely unexpected. Wall Streeters focuses on
the fast money... the quick kill. They like to be the first ones in and the
first ones out...


How else can they justify their inflated salaries and expensive software?


And the media that report on Wall Street and get their information quotes from
so-called "experts" don't get it either.


* "At this point, we don't view dividend cuts all that unfavorably, only
because the alternative is to tap the public markets to raise capital."
(Bill Fitzpatrick, Optique Capital Management Inc.)


* "It [a dividend cut] is the responsible thing to do." (SunTrust
of Atlanta)


* "If a bank needs to cut a dividend to preserve capital, I think that's
a very wise move in the current environment." (Thane Bublitz, Thrivent
Asset Management)


Let me get this straight. The so-called "experts" are now calling
fake dividend companies "responsible" and "wise."


So what that they've run out of cash. So what that they've run up big debts.
And can it be that holding risky assets isn't as bad as it seems?


This much I know...


The market isn't about to give these companies a big wet kiss. The damage is
done. These companies have completely blown it - and they will have to pay.


The next "victim" is already in my crosshairs. On April 21, my readers
are set to see a huge winner. You could join them. It's up to you...


This Could Be Your Most Important

Decision of the Year


Which group would you rather be in? The thousands of investors who are trying
to lower their losses by selling the shares of these fake dividend companies?


Or the small group of those who follow my recommendations and have had the
chance to make 100%-plus gains??


If you like to invest like everybody else... if you only feel comfortable when
you're following the crowd... this isn't an investment strategy for you.


But I hope that's not the case. After all, I've been responsible for thousands
of investors making big profits. Here are some of my recent calls...


* 219% in an established uranium mining company

* 60%
in one of the world's leading mining companies

* 39%
in puts on a leading passenger airline

* 125%
in a little-known heavy equipment manufacturer

* 75%
in one of China's leading clean energy companies

* 53%
in a stock exchange holding company

* 83%
in a metal mining company

* 38%
in a midstream oil transport company

* 107%
in a Silicon Valley tech company


Let Me Introduce Myself...


As I've told you, the greedy CEOs call me Professor Doom. But my readers call
me the "Dividend Detective."


My name is Andrew Gordon.


You might know me from my TV appearances. Or you may have come across me in
Bloomberg and CNBC.com, where I've been interviewed on the most vexing issues
facing the market.


Even if you have seen my face before or have read my views, you probably don't
know the two most important things about me...


* I'm the most cautious person you'll ever meet. My family, friends, colleagues,
readers - everybody who knows me and my investing style agrees.


It's why I gravitated toward the most conservative stocks in the market - dividend
companies. I've been recommending them to my readers for years with great results,
including...


* 82.7% gain for a nickel company

* 29.5% gain for a tobacco company

* 38.5% gain for a pipeline company

* 37.8% gain for a real estate company

* 30.9% gain for a telecom company


But when the market turned in late 2007, I showed my other side...


* I'm at my best in hostile environments. Landing on my feet isn't good enough
when things turn sour...


THAT'S WHEN I THINK BIG AND ACT FAST.


Like the time the "Asian Contagion" hit several Southeast Asian countries.
I was deeply invested in the Indonesian market. When their economy went into
the toilet, I lost big. But I immediately refocused and turned to the biggest
cash business in the country - OIL. Within a few months, I had my first major
contract from the huge international oil company Caltex.


So when dividend companies started to pony up "fake dividends," I
was in familiar territory. I knew there was a way to make serious money with
this, and I was confident that I would find it.


(Jeesh. This sounds like bragging... and I hate that. Believe me, I've taken
my lumps - including that boatload of money I lost in Indonesia. But I earned
it all back... That's exactly what I'd like to do for you. Help you recover
the money you lost in the past year.)


Confession Time


I haven't always been a stock market expert. For 20 years, I conducted business
all over the world at the highest levels.

Andy,


Great job on CSE! I even got a better price than you recommended. (You use
conservative prices, a huge relief.)


Thanks to you, I was able to pocket 100% in a down market.


I can't wait for your next rec.


- Brian R.


I can't tell you everyone who is in my Rolodex. The list is way too long. But
here are just a few of the people I've met and counted among my colleagues...


* Mr. Sandy Weill, founder of Traveler's Group and CEO of Citigroup during
its glory years. We went to Moscow together.


* The second most powerful man in Indonesia, after the president, and (at
the time) the "Speaker of the House": Dr. Suko (one of the few honest
politicians that country had).


* Mr. "Inconvenient Truth" himself: Al Gore. We worked on some international
environmental issues.


* "Dr. D.," who used to be the number three guy at the CIA. (I can't
give you his real name - hope you understand. And you can't ask me about the
"Top Secret" report I did for the CIA in the late 1970's.)


* Mr. N. Li, a Shanghai governor when I worked with him. He's since moved
onward and upward.


*


Andy,


Great call on these puts!

I was able to get out at $6.30, giving me a gain of 90%.


With these whipsaw markets, options are the only thing I will sleep with.


Thanks for your great research and service.


Sincerely,

- Raymond B.

Mr. William Donald Schaefer, former governor of Maryland. I was his right-hand
man on the international front. We sat down opposite numerous presidents, prime
ministers, and VPs from around the world.


* My favorite meeting? Probably the one with Boris Yeltsin. We all thought
he would show up drunk and rambling. Instead, he displayed a mastery of global
geopolitics that rivaled that of "Dr. D."


* Ambassador and High Commissioner Stephen Ketenta of the Republic of Uganda.
He's an old friend who knows everybody who is anybody in Africa and Europe.
(He's based in Brussels.)


I could go on, but I think you get the picture. I'm from a world where business
and government overlap at the highest levels.


With Friends in High Places,

Who Needs a Crystal Ball?


It's an interesting perspective, and my sources do a good job of keeping me
informed...


* When did you learn that the U.S. government was closing Guantanamo Bay?
Even if you had picked up the earliest news reports, I knew one month before
you did.


* When did you suspect that all was not right in the banking world? A shrewd
Wall Street banker I have known for 15 years told me three Christmases ago over
holiday drinks.


* When did you hear that the hedgies were about to have their worst year ever?
News began to filter out the middle of last year that hundreds of hedge funds
were on the losing end of huge bets.


I was at a top hedgie's beach house in the Hamptons two summers ago when he
matter-of-fact told me that they were headed for disaster.


It's not all about getting a heads-up on major world events. My contacts also
help me get in the doors of top company executives.


Andy,


While I wasn't able to get into the trade as quickly as I had hoped, I still
got in at a good price. Today, I saw your recommendation and sold my position
- capturing a 79% gain.


Thanks. I look forward to more opportunities!


- Albert M.


When I went looking for more information on a Taiwanese telecom, all I had
to do was phone my Taiwanese friend based in Washington, DC. He gave me half
a dozen phone numbers to call, and made sure the telecom company would talk
to me (which it never does with Americans).


When I was evaluating a Texas oil and gas company, I called Charlie C., my
longtime Texas colleague. (He lets me fly one of his fleet of seaplanes whenever
I come down to visit.) Charlie supplies chemicals to all the oil companies working
in the Gulf. I asked him questions I could never ask the companies or so-called
Wall Street experts. That phone call lasted one-and-a-half hours, and I got
all the information I needed.


My Rolodex is my best friend. Doesn't matter where the company is. From Moscow
to Montana, I know people. And they know me.


China Is a Phone Call Away


That's how I got the scoop on the demand for coal from China before investing
in a company that makes equipment for mines around the world, including its
fastest-growing market - China.


I'd say that's critical information, wouldn't you?


Dr. Yang came through for me, as I knew she would. After all, she's a member
of one of the most powerful families in China.


If my results sound too good to be true, blame it on my worldwide network of
friends and colleagues. I don't make stuff up. And I never do anything that
remotely smells illegal.


And I don't do anything that strikes me as risky.


Super-Safe Solar Investment Reaps 107% Payoff


That's why, when I invested in the relatively new solar market, I didn't go
with the latest "hot" company that analysts loved. Instead, I recommended
an under-the-radar company with the best technology and R&D program in the
U.S.


By the way, it made my readers 107.5%.


But then I saw a solar company in China that had lower costs and still offered
the latest generation of technology. After a few calls, I recommended investing
in them too.


It made my readers 75.5%.


Maybe I'm too cautious. With dozens of people in the U.S. and around the world
feeding me information from inside industry, business, and the government every
week, I don't get surprised very often.


But playing it safe is in my genes, I guess. I just can't help it. That's why
I turned these two "fake dividend" companies down...


Not All "Fakers" Make the Grade


Synovus, a regional bank, slashed its "fake dividend" by 65% last
September. I like slashers. But I don't like serial slashers. It had cut its
dividend months before too.


Slash your dividend once and I'm all over it. Slash it twice and you're boring
me.


I have my standards. Cutting a dividend is the ultimate insult to shareholders.
They get out. Shares go down. And puts make a killing.


Simple and straightforward. The way all investment strategies should be (but
never are).


Was Diana Shipping Sunk?


When Diana Shipping cut its dividend, I wasn't biting. I didn't believe they
were in trouble. As I told my readers on November 14...


"Sometimes companies cut dividends for the
wrong reasons. For example, yesterday I saw that Diana Shipping cut its dividends
for the first time. But as I looked into the circumstances surrounding Diana's
cut, I learned that at the same time they were pursuing a rather substantial
buy-back program costing them $100 million. Why could a company that didn't
have enough money to keep its dividends up be able to afford a major shares
buy-back initiative? I've seen it before. Florida Power & Light did the
same thing a while ago..."


Diana Shipping is now 27.3% higher than it was November 14. I had made the
right call.


Distressed Assets Is Strictly Big Time


The old investment game: riding assets up and making a bundle.


The new investment game: riding assets down and making a bundle.


Hedge funds are playing this game. So are the proprietary investing units of
big banks.


Right now, it's the only big game in town - and you get to play in it too.
So welcome to the big time, and prepare for one monster gain after another.


All You Need Are DIVIDENDS That Are

TOO GOOD TO BE TRUE


There are thousands of down-and-out companies. You can't bet against all of
them.


Some of them have already hit bottom and are going up. Others have lousy earnings.
All they have to do is perform better than the historically low expectations
of analysts.


Some underwhelming companies could ride the coattails of the broader market.
If markets rise, so could they.


But you can avoid all this uncertainty by getting the only service that has
closed out HUGE WINNERS and has an average win rate of 90.5%.


You can't get this from overrated hedge funds, even though they'd charge 10-15
times more.


You can't get this from your IRA fund or your brokerage. These 100%-plus gains
simply aren't available through them.


We've chosen YOU to get this service, because we think you deserve to be a
WINNER.


You haven't given up on leading the life you've always wanted to lead... and
you'll never be satisfied with the kind of returns the market was throwing at
you last year.


Here's a chance to turn your life around. I don't care if you're 50, 60, or
70...


IT'S NOT TOO LATE


When you join us, you'll find out with the very first trades you make just
how profitable this strategy can be.


But before I tell you the amazingly low price of this service, I want to show
you how our strategy has turned "fake dividends" into big winners
90.5% of the time...


* The homebuilding business went south last year as housing imploded and credit
dried up. One fake dividend company - DR Horton - revealed its true colors on
May 6. Three months later, its shares had plummeted by 33%.


* The housing implosion also turned banks that were heavily invested in mortgages
into basket cases. Wachovia watched in horror as its profits turned into mega-losses
and its dividends became as phony as a three-dollar bill.


On April 14, 2008, it bowed to reality and cut its fake dividends. On July
14, its stock was worth 61% less.


* Ambac Financial was flying high from insuring municipal bonds against failing.
It should have left well enough alone. But it wanted a piece of the huge insurance
market for corporate bonds. Big mistake. When that market tanked, so did Ambac.
Its fake dividends had to go. Ambac did the dirty deed on January 16, 2008.
Ninety days later, Ambac's shares had lost 59%.


* Let's go back further... to the beginning of the century. There were plenty
of "fake dividend" companies around then too.


The same thing happened to these early fakers...


* Dynergy in late 2002 slid down 49% from its dividend cut

* Heinz in mid-2002 retreated 23%

* Aquila in late 2002 dropped 30%

* Ford in late 2001 slipped 16%

* Alliant Energy in mid-2002 fell 25%


You could have played these companies short and made 16-49% every three months.
There's nothing wrong with that!


But if you play the fakers with put options, you make a lot more money. Puts
give you leverage - anywhere between 2 and 10 times the actual "loss"
on the stock.


In other words, if the stock goes down 49%, you could make up to 490% profit.
With a stock going down 16%, you could make up to a 160% profit.


With leverage comes more risk. But with a proven 90.5% winning rate, the odds
are greatly in your favor...


In the past half year, I've offered my readers 14 winning plays (out of 16
recommendations). The average gain of these winners? 75.4%!


I've been in the business a long time, and without a doubt this is the best
investment service I've ever seen. I really and truly believe that it can turn
your life around. I believe that so strongly that I'm going to make it incredibly
easy for you to...


 


One Company Ready to Give You

a 118% Gain on April 21


I don't want you to feel pressured - but right now I'm looking at a "fake
dividend" company that is preparing to cut its dividend.


It could come tomorrow. If not tomorrow, very soon thereafter.


If you're on board, you'll know exactly when it happens and what to do about
it.


Will you close out a 110% gain... maybe even a 220% gain? You'll never know
unless you try.

But with a strategy that gives you big winners 90.5% of the time, what could
possibly stop you from at least checking this out for yourself?




Andrew Gordon

March 2009.


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