Chief Metals & Mining Investment Strategist
An Open Letter
to Investors Sick of the Hype –
Who Still Want Real,Verifiable
Opportunities for Fast Portfolio Growth
It's Happening Again...
We're About to See a Repeat of an Investment Situation So Incredible, We're Concerned Mentioning It Could Blow Our Credibility
In the End, the Debate Was Settled by the Fact That This Situation Previously Handed Readers 38%, 40%, and 46% Gains – Overnight
Here Are the Details – You Decide
UPDATE: One of the seven opportunities listed below was gone before we could get this out to you – giving readers another 37% overnight win. This underscores the need to act now.
For years Casey Research has worked tirelessly to maintain an outstanding reputation among clients, friends, and industry associates.
We have no illusions about the darker corners of the investment research industry, such as...
- Promises to turn $10,000 into $2,582,963 in just 9 trades
- Hyperbolic claims of double- and triple-digit day trading gains
- ... Even secret systems for gaming the market!
And most of it is a load of bull...
For example, I recently read an article by a... I hesitate to call him a competitor. Let's just say it was someone in my industry who claimed he'd found the "Rosetta Stone" to turning $10,000 into $2.7 million. And for just $1,500, he'd show you the system that could do it. Unfortunately, to get numbers like that, he relied on a fabricated scenario with a 100% flawless track record – impossible even for Goldman Sachs to maintain.
If the performance of some of these gurus were half as good as their promises, their readers would have all retired in the Bahamas by now. Unfortunately, that isn't the case. And promises like these are thrown around far too often.
This environment requires us to be ever-vigilant. And it's why, even though we've had many great successes, hyping trades that put clients' money at excessive risk makes no sense to us.
We like to sleep well at night.
That's part of why I actually hesitate to tell you about this investment opportunity I've identified – and why some members of our team want to keep me quiet. Even if I think it's the single-best opportunity in today's market.
Because even though it's 100% well researched, completely factual, and above the board...
It borders on the incredible when I share the results it's already delivered for my readers. For example, three similar opportunities recently handed readers gains of 38%, 40%, and 46% between one trading day and the next.
All verified. Yet so incredible, it borders on unbelievable.
Avoiding the incredible – and its good friend "hyperbole" – is a large part of why we've been able to maintain the reputation we have:
- It's why when we host our biannual Summits, some of the world's top economic and investing minds are proud to put their names on our agenda.
The long list of esteemed guests has included folks such as David Stockman, director of the Office of Management and Budget under Ronald Reagan; David Walker, US comptroller general from 1998 to 2008 and CEO of the Comeback America Initiative; Lacy Hunt, VP of Hoisington Investment Management; John Williams of Shadow Government Statistics; famed economist Jim Rickards; leading resource investor Eric Sprott; voice for liberty Lew Rockwell; best-selling author John Mauldin; "The Godfather of newsletter writers" Richard Russell; and countless others.
- It's why, while we write for individual investors, our material gets picked up and circulated among institutional investors.
- It's why, for example, I recently got a call from an Internet broadcaster who covers some of the investments we cover, and invests in them as well. While he was interested in my personal take on the investment, he was more interested in the ethics of him participating when there won't be enough room for his listeners as well. This goes beyond my knowledge of the deal (which I did know about) to wanting my input because I – with Casey Research – am known in the industry for being totally uncompromising.
- It's why I pack rooms when I speak at conferences. At the last Cambridge House Conference, which was not as well attended as usual, I was one of the very last speakers at the show. As I took the stage, the promoters were out there making a racket, dismantling their booths, heading out for a post-conference beer. And still, I packed the hall, standing room only – because people wanted to hear what I think and ask me about various deals. After almost every talk I give at such conferences, someone or another comes up and says how "refreshing" it is to hear my simple, honest take, rather than all the slick hype they hear from most others.
- It's why our longest-running clients have been with us for over three decades – a good number of them having even bought Doug Casey's book, Crisis Investing, when it became the best-selling financial book of all time in 1980.
Because we're dedicated to delivering you the truth, the whole truth, and nothing but the truth on what's happening in our world and the investment opportunities that creates...
This hasn't made us the fastest-growing or the most profitable firm in the business. Yet it has given us a solid base of readers and clients we can also call friends.
And essential to me: the ability to look at myself in the mirror every day and know I deliver real value to my clients and readers, through thick and thin. That's how I sleep well at night.
Even so, every once in a while we come across a situation like the one I'm going to tell you about today. A situation – an investment opportunity – with a truth so bold, it stretches the limits of believability.
A situation that, frankly, makes us uncomfortable to share.
Then we're faced with a decision:
- Do we risk putting a chink in the armor of our reputation... Sharing the truth as we've uncovered it, even though we know recent results – presented conservatively – may stretch your credulity?
- Do we hide this opportunity from your eyes... Reserving it only for paid-up clients, denying you the opportunity to profit in order to maintain our credibility?
I put this decision before my partners in Casey Research to get their take.
There are certain members of our team who – if they had their way – would rather I stay silent on the opportunity. They'd rather I keep quiet today and share it only with paid-up readers of my private investment research service.
Others pushed me to share. It was a split decision, so I decided to go ahead so you can decide for yourself.
Either way, one message was clear: the opportunity is better understated than overstated. It's exciting enough by itself. No hype, no exaggeration, and – especially – no bull is needed. That's the way I prefer it anyway.
Now, before I tell you what this opportunity is...
I have a warning.
My warning to you is that this opportunity – by its very nature – is time-limited. It will require you to take action before a very specific market event happens. To take advantage of this opportunity, you must be able to weigh information quickly, make a decision, and take action.
I recommend you keep reading ONLY if you have the guts and gumption to take decisive action on the right opportunity when it presents itself.
This is important for another reason, as well. The market only gives us a limited window to take advantage of this opportunity. So we'll only be keeping this letter online for a few days.
If you find this opportunity as exciting as I do – and I think this is the single best opportunity in our market today – you'll need to take action now. Because it may be gone tomorrow.
So what is this unique investment opportunity?
You can collect 38%, 40%, even 46% gains...
Between one trading day and the next...
By investing in companies before they receive a takeover bid.
Sounds obvious, but it's easier said than done, and I have a strong track record of identifying these opportunities before the value-adding news hits the market. And that's just the start of it...
These "overnight" gains often come on top of much bigger gains – up to 200% or more. Because companies get taken over for doing the right thing. That is, growing the business and building value for you as a shareholder.
No surprise: when the company does things right, Mr. Market usually rewards shareholders with higher prices.
So by investing in these "takeover target" companies, you win first as the company builds value for shareholders. Then you win again – icing on the cake – with fast gains as they receive a takeover bid.
And you can even win again, if the deal includes shares in the buyer, which usually gains greater market valuation in time, as it unlocks the value inherent in its acquisition.
At the risk of being accused of braggadocio – I have to tell you I've developed a proven methodology for predicting takeovers. In a moment, I'll share with you a number of stories that prove this claim. All are pulled directly from the online archives of my private investment research service.
Of course, I wasn't born with this "sixth sense" for opportunity...
Unlike many cocksure investment "gurus" who claim natural genius, I think the true story is actually more amazing – and more relevant to you enjoying bigger investment wins more often.
You see, everything I know about investing – everything I share with my readers – comes from a group of "best in the business" private mentors. These are self-made, multimillionaire and even billionaire investors. Each has built his personal fortune largely through finding and exploiting unique investment opportunities. Along the way, they've shared with me their personal strategies and techniques.
I'll even share some of their best strategies with you in a moment.
First, an introduction...
My name is Louis James. I'm chief metals and mining investment strategist for Casey Research. We're a world-renowned New England-based investment research firm employing a worldwide team of dozens of analysts.
As you know, Casey Research is most widely known for finding the best investment opportunities in the natural resource sector. In particular, within the precious metals and energy markets.
My role at Casey Research is finding and bringing to you stocks in small companies doing things right in the metals and mining industries, because these are the most likely to deliver 100+% gains in 12 to 24 months.
These are typically earlier-stage companies – we often call them "juniors."
Some are explorers – they're trying to find new resources. Others are producers – they extract the resources and bring them to market, well on their way to becoming larger mining companies.
Either way, these are companies with small market caps and explosive upside.
By finding the best of these, my readers have been able to take advantage of gains of 522% or more from a single investment play.
We do an annual report card for readers, covering our total portfolio performance – you can verify what I'm saying for yourself, if you like.
While many investment research firms "cherry pick" the one or two big winners from oversized portfolios of poor performers, I prefer honesty. What matters a whole lot more to me (and I imagine you, too) is total portfolio performance...
We give readers an annual update on how we've done...
At the beginning of 2012, we looked back at the past 8 years. Since January 2004 (including the 2008 crash) our average position gain was 49.9%, with an average holding time of 22 months. That means, on average, each stock my readers bought increased almost 50% in less than 2 years, before they sold.
And that was with some pretty conservative math – if I wanted to use market peak prices to make my track record look better, it would have been easy. But I know few people sell at the top, so I assumed readers followed my actual recommendations, including when we closed our positions, to get these numbers.
Adding up every position we've recommended, even when taking the bloodbath of 2008 into account...
Readers have enjoyed 27.2% annualized gains over the last 8 years!
For reference, according to Forbes magazine, Warren Buffett's annual return in his first 40 years running Berkshire Hathaway was 22%.
This is all good, but nothing compares to the excitement logging into your brokerage account one day to discover one of the little stocks in our portfolio has received a takeover bid priced at as much as 40% over the current market price – and the share price is shooting up accordingly.
My readers and I have enjoyed these wins often...
For example, on May 3, 2010, I alerted readers of a "buy" opportunity on Antares Minerals. They were a junior resource explorer developing a huge copper deposit at their Haquira copper-gold project in Peru.
In that recommendation, I called them a particularly juicy candidate for takeover, given the major mining company next door: Xstrata. Well, I was right, and I was wrong. Yet the important part is, readers who followed my recommendation enjoyed a quick 150% gain in six months!
Right and wrong? Well, turns out I did get one thing wrong about my prediction. I'll tell you in a second what that was. Yet it was the most inconsequential aspect of the whole deal.
You see, prior to my recommendation, Antares had announced a world-class deposit at Haquira.
They were continuing to drill, with more good news coming all the time. And as their good news came rolling in, their neighbor Xstrata had bad news.
Xstrata was sent scrambling. They'd asked Peru's government for an extended timeline to complete a feasibility study on their property next to Haquira. But the government said "No" – Antares would have to finish their study on their original timeline.
My best guess was Peru's president at the time, Alan Garcia, wanted a major new project announced while he was still in office. While I'm no mind reader, I thought Garcia saw Xstrata as his best bet for the new project announcement. He couldn't politically afford to be flexible. (Don't you love politics?)
This left Xstrata with a serious decision to make. How would they make their own project profitable enough to move forward? My speculation was that Xstrata would buy out Antares to get greater economies of scale going to make their own project make more sense.
I said in the recommendation, "That's a total spec, but a pretty juicy one."
My prediction paid off big!
I was proven correct within months on almost every aspect of the Antares deal...
- First, I was right; Antares shares were undervalued at market prices – particularly in light of their successful exploration at Haquira and on other projects
- I was also correct that Antares' share price was bound to go up with or without a takeover bid as news of its developing projects continued to break
- Moreover, I was on target with my prediction that Antares would soon be bought out at a premium
The only thing I got wrong was the least important detail... Who would buy Antares.
So what happened?
Well, my original recommendation in May 2010 was to pick up shares of Antares at $2.78 per share. Good timing. By October, just five short months later, market strength and further developments on Antares' projects had pushed its shares up over 60% from the original recommendation.
At that point, I called Antares one of two stocks with the "most imminent takeover potential."
Then... In less than a month, it came... The announcement that Antares would indeed be taken over.
Though it was a surprise bid from First Quantum Minerals, instead of neighboring Xstrata.
This takeover bid handed readers who'd gotten in on the original recommendation a solid 150% gain in six months, including a 46% jump on the day the takeover was announced.
As you can imagine, readers cut me slack for getting the "who" wrong, when everything else added up to numbers like that.
Then in December, Antares shares were converted into First Quantum shares at full market value – up another 34% since the takeover announcement.
To top it off, shareholders were given additional free shares of Regulus Resources, a spinoff company created to further develop Antares' copper-gold-silver Rio Grande project in Argentina.
All in all, gains from this play were 202% in less than eight months from recommendation to the completion of the takeover deal. And those gains got up to 245% after adding in the value of the spinoff Regulus shares on their first trading day.
But this story is only the beginning...
You see – big gold and resource companies are on the hunt right now.
As gold, silver, and other resource prices remain near all-time highs (and, most importantly, well over the cost of production), they're looking for quick ways to increase their capacity and profits.
Yet in most cases, they're already near maximum output from their current mines. So their next best way to get a quick boost is to buy out junior companies with metal in the ground that can be brought to market quickly – just like what happened with Antares.
This can lead to big paydays for you.
Take Fronteer Gold – another big win for my readers.
Fronteer had been in the portfolio since 2006. It originally handed readers 198% gains in 12 months. Then we recommended readers take what we call a Casey Free Ride and take profits on the stock. (This strategy helps our readers lock in wins and enjoy risk-free long-term profits – I'll share more about how it works shortly!) After this, Fronteer had some political setbacks on its uranium project in Labrador, so I put them on a hold through most of 2008.
Toward the end of 2008, though, Fronteer was starting to scream opportunity.
I told readers in October 2008 that Fronteer was "deeply undervalued" thanks to the combined effect of the market crashing and its political setback.
So in January 2009, I issued another buy recommendation on Fronteer, calling it...
"Too good a deal to pass up!"
My recommendation was to buy Fronteer below $2.25 – the price was hit quickly, giving readers what I thought was a great entry point.
But I didn't stop there... I felt so strongly about this pick that I kept urging readers to buy:
- In March 2009, I labeled Fronteer a "Best Buy" at $2.89.
- In April, I advised readers to put in an order at $2.50 to buy on dips – and again, readers snapped up shares at below-market prices.
- In June 2009, as the price of Fronteer started to take off, I reassured readers there was "a lot of upside."
With Fronteer hitting $4.64 in September 2009, readers who got in on the second recommendation were told to take a Casey Free Ride on their nine-month, 95% gains... Leaving those gains invested to ride the remaining upside risk-free.
Even as I issued that Casey Free Ride recommendation, I still saw more upside in Fronteer and urged readers who had not bought yet to do so.
In another 12 months – by September 2010 – Fronteer had almost doubled again... As in one month they'd announced impressive gold assay results, plus put out a takeover bid on joint-venture (JV) partner AuEx Ventures.
By October, alarms were going off in my mind...
I told readers Fronteer's takeover of AuEx made it a much better takeover target itself. Fronteer was taking 100% ownership of an attractive project, making it much more likely to be snapped up.
I was proven right again on my "takeover" alert to readers, when in early February 2011 Fronteer entered a takeover agreement with mining giant Newmont. The takeover pushed Fronteer shares up over $14.00 – including a 40% jump on the day the takeover was announced.
When the takeover was completed, Fronteer shareholders got $14.00 cash plus one-quarter of a share in the spinoff company (called Pilot Gold) for every Fronteer share they owned.
All told, readers who got in on the $2.25 recommendation in January 2009 closed out the takeover transaction with a solid six-bagger (522% gains) plus a free stake in the new company taking over a portfolio of Fronteer's earlier-stage exploration projects.
Even if you'd gotten in on the original recommendation in 2006, taken your original money off the table when the Casey Free Ride recommendation was issued, and simply kept the "house money" in the game through the takeover, you'd be sitting on a quite respectable 198% gain plus your stake in Pilot Gold.
And it happens over and over...
Again... I mentioned AuEx Ventures' takeover by Fronteer above, but I withheld a little detail. Namely, that my readers were also invested in AuEx on my recommendation.
Readers holding AuEx at the time of the Fronteer takeover saw their shares jump 38% the day the takeover was announced. Yet for many this was icing on the cake – readers who'd gotten in at the original recommendation were sitting on 380% total gains by the time Fronteer's acquisition of AuEx was complete.
And because AuEx shares were converted into Fronteer shares (plus cash, plus shares in another spinoff, Renaissance Gold), readers who held on were also able to take advantage of the big bump in Fronteer's share price when it was acquired by Newmont.
Anatomy of a BIG takeover double-win:
This is where things get so incredible I don't think I could put them at the front of this letter and have you still believe me...
Let's look at what would have happened if you'd simply put $1,000 in AuEx at my original recommendation...
When AuEx was taken over by Fronteer, you would have received: $500 cash, $3,855.34 worth of Fronteer shares, and $450.76 worth of Renaissance shares. That's $4,806.10 from your $1,000 investment.
But it gets better...
Holding the Fronteer shares until their Newmont takeover, you would have ended up with: your original $500 cash and Renaissance shares (now worth $806.82) from the AuEx takeover, plus $6,840 cash from Newmont in exchange for your Fronteer shares, and $1,715.11 worth of shares in Pilot Gold.
Let me tally that up for you: your original $1,000 turned into $9,862.84 in cash and stock by the day Newmont's takeover of Fronteer was complete.
That's an 886.3% gain.
With a $5,000 initial investment, your final stake would have been $49,314.20...
One reader who was with us the whole way told me:
"I took that ride, and it was wonderful!"
And again... Yet another example of a big takeover win for my readers was Red Back Mining. After a previous go at the same stock, I re-recommended Red Back in October 2009. After Kinross Gold took a 9.4% stake in Red Back in June 2010, I suggested to readers, "Support like this could easily be seen to imply Kinross has bigger plans."
I was right. Less than three months later, Red Back was taken over by Kinross, with readers booking 133% gains in under a year, including a one-day bump of almost 8% when the takeover was announced.
And again... Brett Resources was originally recommended at $1.20 in November 2007. They got beat up quite a bit by market weakness through 2008 and into 2009, though that didn't deter me. Because I know sometimes all you need for the win is a bit of patience.
In this case I knew Brett was a good company, and knew the time to buy is when bad markets put good companies on sale at cheap prices. (This is exactly why the recent correction has created a number of screaming opportunities, including several I'll tell you about in a minute.)
So I told readers we were holding tight on Brett and invited them to "buy if you dare" at $0.58 in May 2009.
By January 2010, the market was singing our tune on Brett again, and the stock was taking off. As it hit a near-record high at $1.67 per share, I called their Hammond Reef project "an increasingly attractive takeover prospect."
Just about two months later, Osisko Mining announced a takeover bid for Brett that bumped shares up by 35% in a day, and continued to send Brett's share price upward until I urged readers to cash out at $3.52 per share.
For readers who bought Brett at the original recommendation, this was a 113% gain. Of course, you could have done better. If you "dared" and jumped in on my "buy if you dare" recommendation when Mr. Market put Brett on sale, you could have cashed out with as much as 341% gains. Many readers fell somewhere in between.
It's clear why we buy takeover targets when you look at the results...
Through investing in my various takeover calls, readers have enjoyed:
- 150% on Antares, including the 46% one-day "takeover bump"
- 198% to 522% on Fronteer, including the 40% takeover bump
- 380% on AuEx, including the 38% takeover bump
(and as much as 883.6% total by holding on to their new Fronteer shares!)
- 133% on Red Back, including the 8% takeover bump
- 113% to 341% on Brett, including the 35% takeover bump
And these are just some of the examples from our portfolio.
How do I consistently create these results for readers?
When you start to build a track record like this – particularly on very specific market events like predicting coming takeovers – you're often accused of things... After all, you can't win this often without some sort of trick... Can you?
I assure you, it's no trick. Just a simple application of certain lessons I've been taught – lessons I share with my readers every month.
It all started with legendary speculator, best-selling author, and self-made multimillionaire resource investor Doug Casey.
Doug took me under his wing to show me his secrets to making a lot of money by investing in resource companies – mining companies, in particular.
Doug, who made a personal fortune in the resource markets over the last few decades, got started during the 1970s bull market in gold, and never looked back.
More to the point: while he can run circles around your average math Ph.D., he's no spreadsheet junkie. A big reason Doug has been so successful is that he's willing to travel anywhere to look for his next big opportunity – even to war-torn backwaters. He's traveled to nearly every country in the world and lived in a dozen. He's even building his own personal version of "Galt's Gulch" in Salta, Argentina.
He's published multiple best-selling books along the way and built a loyal following of readers for his monthly investment research publications.
When Doug took me under his wing...
He shared many of his most powerful secrets, including how to:
- Find small mining stocks ready to double
- Evaluate investments in resource exploration companies with no cash flow
- Use Casey Free Rides to keep gains and grow a portfolio
- Discover and invest in the people who can make us rich
- Speculate on political forces to win bigger, more often
And that's just the beginning. Doug taught me to understand the psychology of the average investor, and even of Mr. Market himself. He taught me a risk-minimizing buying strategy that helps load up on the stocks we want, for less than what most others pay.
He also taught me exactly what makes a resource company a good takeover target – what big companies look for when they go shopping.
Perhaps the most important thing Doug did was to give me his personal endorsement while introducing me to his private network of leading minds in resource exploration, economics, investing, and beyond. Many of them would become mentors of mine, to one degree or another.
And yet, the far more interesting parts of the story are about...
Secret societies, industry insiders, and respect.
For over a decade, Doug hosted private meetings of a group that bordered on a "secret society." Though its purpose was sharing breakthrough ideas, rather than any nefarious collusion.
The group was called the "Eris Society," and among its private membership you'd find presidential candidates, astronauts, leading doctors and scientists, best-selling authors and thought leaders, economists, business leaders, futurists, and even hobos living the high life crisscrossing the continent by freight train. (Doug has a thing for people who seize life by the horns – however they choose!)
On top of open access to the "Erisians," Doug connected me with the resource industry's most successful investors, geologists, and management teams. With decades of experience traveling around the globe to visit these companies and their projects firsthand, Doug has one of the biggest networks in the business.
Recommendation by recommendation, Doug's network became my network.
I soon found myself jetting around the globe with Doug – and on my own – visiting mine sites and working closely with many of the best and brightest resource professionals on the planet.
This is the very same work I do to this day, to bring readers what I determine are the stocks most likely to double your money within 12 to 24 months.
Mining industry CEOs, geologists, and investors became an open book to me. Including the famed Explorers' League – the "Hall of Fame" of the mining and resource exploration industries.
I'd stand next to world-famous geologists as drill samples came out of the ground, or looking at the veins exposed by new mine tunnels. I'd speak with CEOs about new project strategies or recent results. I'd sit across the boardroom table from billionaire investors as they shared not only what they were doing with their money, but all the reasons why.
Some offered direct mentorship. Others I just watched, to see what made them so successful.
And secret by secret, strategy by strategy, and technique by technique, I started to pick up every lesson you need to know if you want to enjoy life-changing results buying and selling shares of miners, explorers, and other resource companies.
The first few years were... intense.
I rounded the globe too many times to count. I found myself writing my research for Doug's readers everywhere from mine camps in the Congo to Vancouver boardrooms, and often on the airplane while my fellow travelers were engrossed in in-flight entertainment.
Eventually – through non-stop hard work and a growing string of investment wins – I earned Doug's respect.
Not only was he asking me to share more and more of my analysis with his readers, Doug was asking my advice to make his own investing decisions.
That's when he asked me to take the reins of his private investment research publication, the Casey International Speculator.
It's been at the helm of the Casey International Speculator that I handed readers their takeover wins on Antares, Fronteer, AuEx, Red Back, and Brett, among others – with one-day gains of 40% and greater, and total gains as high as 883%.
Yet... These five stories are just the beginning.
Because there are...
More opportunities than ever to profit from mining industry takeovers.
Back to our main story.
Takeover activity – or Mergers and Acquisitions (M&A) – within the mining industry have been on a tear in the last couple years.
According to a PricewaterhouseCoopers research report, 2010 was a record-breaking year for global mining M&A deal volume. It said, "No other global industry sector has experienced comparable growth rates or volumes."
Another report by Ernst & Young found the mining industry's M&A deals broke another record in 2011 – total value of deals was up 43% for an all-time high.
So between 2010 and 2011, we've seen both value and volume of takeover deals hitting historic highs.
Going forward, takeover activity will increase, even with continued market volatility. Particularly when it comes to the type of small companies I cover for readers in Casey International Speculator.
Commenting on the Ernst & Young report, Lee Downham, Ernst & Young's Global Mining & Metals Transaction Leader, said...
"The global uncertainty and volatility is likely to continue through 2012, but mining and metals companies have an appetite for growth and are increasingly unwilling to stall their growth plans, so it’s likely there will be a return to deal-making in 2012."
Further, he suggests the little stocks we follow – especially those operating internationally, in politically friendly jurisdictions – are likely to be the target of more acquisitions.
According to Downham, mining companies are shopping internationally, "due to the diminishing availability of quality mineral deposits in developed mining countries at a reasonable price."
In plain English: Most of the easy discoveries in places like the US and Canada are gone, but there are plenty of opportunity elsewhere. (My readers have been making money from companies with projects outside of North America for years.)
To stay profitable – or even to remain in existence, since mines are by definition depleting assets – mining companies need new resources. And they're going to get them by buying up small companies, wherever in the world the best, easiest-to-produce discoveries are.
This is good news for us, because these are the exact types of companies we follow in the Casey International Speculator.
And it's not just the big business consulting firms noticing this trend.
The industry insiders in my network are just as bullish on takeovers...
I consider Rick Rule – whom I met through Doug – a critical contact within the resource investing world.
In addition to being a popular speaker at Casey Research's biannual summits, Rick is one of the industry's most successful speculators and founder of Global Resource Investments, Ltd. His company was recently acquired by Canada's most successful resource-focused investing company, Sprott, Inc., and is now their center of operations within the United States.
In a recent conversation, Rick agreed with my assessment that...
Takeovers are the single-biggest opportunity in mining stocks today!
Rick points out the huge rally off the 2008 lows was driven largely by speculative buying from hedge funds and money managers. Rick expects the next rally to be a different beast.
He knows – from an inside perspective on the industry – the mining companies need new resources.
Many have been gushing cash as metals prices soared. Their tills are full. But day by day, the resources in their mines are becoming more and more depleted. To increase, or even maintain, production and profits, they need more resources.
Rick agrees with me that this situation will lead to a major wave of acquisitions in mining stocks. He expects this wave will drive the whole sector higher, leading straight to the type of overnight excitement I've been talking about...
Perfectly positioned companies in our portfolio receiving premium-priced takeover bids and watching their stock price soar!
And Rick is only one of my many contacts within the industry coming to this consensus:
There's a wave of takeover activity growing on the horizon,
and as it hits our portfolios in the next few months...
We're in for an exciting ride!
I'd like to help you experience a little bit of that excitement in your portfolio.
But first, a quick note...
MARKET CORRECTION = OPPORTUNITY!
A note about recent weakness in the precious metals markets: The gold market has taken a severe beating. The TSX Venture exchange – where most junior gold mining stocks are listed, including many from the Casey International Speculator portfolio – fell from over 2,400 in early 2011 to around 1,200 in mid-2012.
First, this is exactly what I warned readers of as gold prices headed toward record highs. Prior to the dip, I'd repeatedly recommended readers take profits off the table, reduce risk, hold cash, and wait for opportunity.
In short, take advantage of volatility. And volatility we got, as the entire sector ground lower, until...
Now we're looking at the best buying opportunity in junior gold stocks since late 2008!
Opportunities like this only come around once every few years. But when they do, they can lead to tremendous gains. The beating stocks took in 2008 was followed by Casey International Speculator total portfolio gains of 67.9% in 2009, and another 79.6% in 2010. As the market rebounds in the coming months and years, we expect similar gains across our portfolio.
And even more so for takeover targets. Cash-rich companies in the mining industry know what they're doing. They know the market is volatile. They want to avoid paying too much when the market is only going up. And they're willing to pay decent premiums to ensure a smooth takeover when Mr. Market is offering sale prices. We've seen it before, and we'll see it again.
That gives you two ways to win on these takeover targets... A market rebound should push them up, and they'll go up quicker with a takeover bid. Though if you want to take full advantage of the market's weakness, you can't wait around...
Here's your chance to get in on the next
seven SIX takeover wins...
seven six specific stocks in our current portfolio that make particularly great takeover targets.
Any day now, any one of these stocks could get a takeover bid.
And at a premium price, too – a price that could send share prices up as much as 40% between one trading day and the next.
UPDATE: Stock #7 below did in fact get a takeover bid before we could get this report out to you. More details on that below. Yet this underscores two things. FIRST, this system for identifying these "Takeover Target" stocks continues to work – and work well. And SECOND, I'm speaking with real urgency when I emphasize: if you want the gains this opportunity can provide, you must take decisive action today.
I've put together a series of brief "Takeover Target" reports, covering each stock and the compelling case for them being taken over in the near future:
- Takeover Target #1: Good neighbors. This company's flagship property sits right next door to a multimillion-ounce deposit. And the deposit crosses the property lines – talk about the ultimate in proximity. The gold will practically be sticking out of the neighbor's pit wall if both projects aren't developed together. It's likely the company's larger neighbor is only waiting for the deposit to be better defined and quantified before placing a takeover bid.
- Takeover Target #2: Location, location, location. This company has multiple substantial high-grade projects near producing mines. Not only that, they recently consolidated ownership on their flagship project (like Fronteer did when they bought AuEx). This one's just a matter of time.
- Takeover Target #3: Low-grade monster. This company is aggressively developing and expanding its flagship project, proving it out with every updated resource estimate. It's a large, low-grade deposit that just keeps getting larger. Readers have already enjoyed growth as this project developed, but soon we expect it to reach a tipping point that brings the big boys knocking.
- Takeover Target #4: Elephant deposit, elephant margins. Our next takeover target has a 100%-owned elephant (a.k.a. massive) deposit not far from a similar mine owned by a major with a penchant for takeovers. Not only that, the company has been proving out its deposit's economics at sub-$1,000 gold, and it still looks good. Even better, they just keep finding more to the deposit. And it's been taking all the right steps to move the property from exploration to production. When you're ticking off the boxes looking for takeover targets, this one sure looks good.
- Takeover Target #5: Win in the courts, win on the ground. There's an oddball reason this company makes a good takeover target: there's a legal dispute over ownership on one of its projects – and precedent is entirely on our company's side. An easy solution to the dispute would be a merger favoring us as shareholders. Plus, the company is making big strides with active drill programs on other projects. It's a recent recommendation, with juicy potential for quick returns.
- Takeover Target #6: All-star geologist looking for bids. One of our favorite geologists is working on a bonanza-grade gold deposit. He's stated he has every intention of selling it if the right buyer comes along offering the right price. In the meantime, he's finding more and more gold, at unbelievably high grades (where others report grams per tonne, or ounces per tonne, this company is consistently drilling into kilos of gold per tonne), and has already delivered readers 106% gains.
- Takeover Target #7: Going, going... I hope our last takeover target isn't gone before you're reading this. In response to recent market action, they admitted they've been in negotiations with a potential acquirer. This could be nothing – and if it isn't, that's fine by us. We see more upside as they develop their projects. But then again it could spark a bidding war, and those can be very good for us as shareholders...
Oops – "Going, going..." turned into "Gone!" before we could get this out to you. n August 27th, Inter-Citic Minerals (ICI) announced that they had received an all-cash takeover offer from Western Mining Group Co. Ltd. The offer was for $2.05 per share. Shares had closed at $1.45 on the previous trading day. Shares shot up to $1.99 on the day of the announcement, representing over 37% "overnight" – or, "over weekend," in this case – gains. All in all, this stock has given subscribers two opportunities to double their money by following our recommendations, and these final gains are icing on the cake. You may be down to six opportunities, yet this win for our current readers should give you even more confidence in taking advantage of what's left, while it's still available
I'd like to send each of these seven "Takeover Target" reports to you. So you can be in with my readers on our next big win.
I'd also like to send you another free report.
This one will teach you my secrets, rather than giving specific investment recommendations. This actually makes it more valuable than the seven stock-specific "Takeover Target" reports. Because by the time you're done reading it, you'll know what my mentors taught me about how to find takeover targets in the mining industry.
I tend to agree with the maxim of, "Give a man a fish and you'll feed him for a day. Teach a man to fish and you feed him for life."
While I'm happy to hand you fish after fish in the form of good stock recommendations, I know my job isn't complete until I've also shared with you how to find these opportunities for yourself.
So I've put together one more report called How to Profit from Mining Industry Takeovers that shows you exactly how I identify and take advantage of these opportunities. And I'd like to send that to you as well, with the seven "Takeover Target" reports.
And even without a takeover,
you can still win big.
The free "Takeover Target" reports I'm going to send you focus on the seven stocks most likely to give you the takeover bump in the coming weeks and months. The how-to report you'll get along with them shows you how you'll discover similar opportunities for yourself.
And if you're looking for the type of one-day gains that will give you a huge shot of adrenaline, there's little like takeovers in the investing world.
Yet my newsletter, the Casey International Speculator, is chock-full of metals and mining companies that can provide readers with big gains – with or without a takeover.
You only have to look as far as our current portfolio.
As of the July 2012 issue (even with gold and silver prices struggling in recent months, creating fresh opportunities in my view), readers are enjoying these gains:
- Silver producer First Majestic is up 395.1% since our original recommendation, another silver producer is up 94.6%, and yet another is up 107.3%
- Darling silver story Silver Wheaton, originally recommended in 2005 (far before most of the rest of the investing world had a clue) has those early investors up 465.1%
- Junior explorer Almaden is up 292.9% for readers since recommendation, and a handful of other juniors are up 45.5%, 101.2%, 86.5%, 75.2%, 106%, and 55% – with more upside expected
(NOTE: Because these are current recommendations, I've withheld most names out of respect for my paid-up readers. The ones mentioned are not necessarily buy recommendations – check the portfolio page once you subscribe.)
Of course, not every current portfolio holding is a winner. The junior resource sector is volatile. And yet...
You can use volatility to your advantage.
I'll help you to take advantage of the junior resource market's upside volatility. After all, it's those fast moves to the upside that allow investors in these markets to enjoy such incredible gains.
I'll also show you how to use pullbacks in the market – downside volatility – to your advantage. Among other things, I'll introduce you to the powerful "tranche buying" strategy Doug taught me to mitigate risk and buy stocks cheaper than other investors, for bigger wins.
These – and more – are the strategies I can teach you that can make you an exceptionally successful investor, enjoying exceptional returns.
These are the strategies that have helped readers collect average position gains of 49.9% over the last eight years, with annualized gains of 27.2%.
I recognize this sounds incredible. In fact, if you calculate out what these gains actually do to your portfolio, it's almost unbelievable. In simply showing you this calculation, I know I risk being grouped in with the very same characters I disparaged earlier.
And yet – as my readers can attest – these are not cherry-picked gains, but a complete portfolio average. So at the risk of being accused of hyperbole, here is a simple calculation.
Imagine if this were an interest-bearing account.
You put $100,000 into the portfolio eight years ago. With annualized gain of 27.2%, by the beginning of this year, your portfolio has grown to $685,325.50.
Keep this up much longer, and the numbers get big enough to seem completely unreal.
It adds up fast. You can see why speculators like Doug Casey, Rick Rule, and others have devoted their careers to seeking out these opportunities.
Of course, for you the best way to get started is to simply follow the recommendations in the Casey International Speculator.
How to get it all, risk-free...
As I mentioned above, I'd like to send you the seven "Takeover Target" reports. These are the companies in the current Casey International Speculator portfolio I see as having the most imminent takeover prospects.
I'd also like to send you my report, How to Profit from Mining Industry Takeovers, to both show you how I identify these opportunities and how you can spot them for yourself.
All you have to do to get these reports with my compliments is to agree to try the Casey International Speculator risk-free for the next three months.
Keep reading, and I'll tell you exactly how you can take it for a spin for the next three months at no risk, though first you should know that with your subscription, you'll get...
Monthly coverage of the best opportunities in
the junior resource sector:
Every month's issue of Casey International Speculator goes in-depth to show you whatI think are the best profit opportunities in the junior resource sector.
Remember, it's my goal to find those stocks most likely to deliver 100+% gains within 12 to 24 months. And Casey International Speculator is where you can get the inside information on every one.
Not only that, in each issue I'll share lessons from my private network of industry insiders to help you uncover these opportunities for yourself.
Here's what you'll find in each issue...
- What today's news means to your portfolio: I begin each issue with a personal letter covering the big trends and new developments driving the precious metals and junior explorers markets.
- Secrets to successful resource investing: I and other members of the Casey Research team weigh in on everything from calculating gold mining costs in analyzing a project's potential... to country-specific developments in mining laws that may impact our investment strategy going forward.
- Notes from the field: Nearly half my time is spent crisscrossing the globe, kicking rocks, checking drill cores, talking to people on the ground, and evaluating investment opportunities. You'll receive regular updates on where I've been and what I've found.
- Deep analysis of every new recommendation: In nearly every issue, you'll find one or more new additions to the portfolio, rigorously analyzed using our proven and proprietary Eight Ps system. Not only that, you'll get specific advice on where to buy for the best profit opportunity (even if that means waiting a week, a month, or more to get in).
- The latest updates on your stocks: Drills are always turning, markets are moving, and a hundred other factors are influencing the recommendations in the Casey International Speculator portfolio. Each month you'll get an update on where we stand, strategies for the current market, top picks to buy today, and current buy/sell/hold recommendations on the entire portfolio.
- Your questions answered: Get your questions about the newsletter, portfolio stocks, gold investing, economics, and more answered by myself and other members of the Casey Research team.
And those are just the major sections. Each issue of Casey International Speculator is also loaded with additional information to help you become a better speculator and investor, and to lead you to the best profit opportunities in the junior resource sector...
For example, in the July 2012 issue, not only did we hand readers a "picks and shovels" play we expect will deliver terrific gains, we also showed readers how to analyze mining cash costs vs. gold's price. (And came to a very positive conclusion.)
There's also a special members-only portfolio page on the website that lets you see, in seconds, what our latest recommendation is on each stock. We update this page throughout the month with new company news and our take on what it means. Many readers bookmark this page and check it regularly because news breaks here first, and checking in can mean you're buying and selling ahead of the crowd and at better prices.
Oh yeah, and you'll have archive access to read every past issue of the newsletter...
And you get all of this (plus the reports!) risk-free for the next three months...
Before I get to what exactly it costs to subscribe to Casey International Speculator, I want to emphasize that your first three months are at absolutely no risk.
When you agree to give it a try today...
- We'll send you the seven "Takeover Target" reports – this is everything you need to buy shares of these companies before they receive a premium-priced takeover bid... And the How to Profit from Mining Industry Takeovers special report
- You'll also get three months to enjoy all the benefits of being a subscriber before you decide it's right for you – including the monthly issues delivered by email and through our website, the online archives, and the portfolio page with special updates
- I'll even throw in a few surprise special reports you'll be able to access through our website – though I'll leave them up to you to discover on your own!
Put it to the test. Read the current issue. Browse the archives. Do your own research on the recommended companies in our portfolio.
Even buy a few of the companies and see how the stocks perform. (Chances are the next few months will bring some of the takeovers I'm predicting – along with that takeover bump!)
Take three full months to decide if Casey International Speculator lives up to everything I've said about it and more.
Then – and only then – decide if it's right for you. If for any reason you decide you're not completely satisfied, simply let our customer service department know.
They'll be happy to provide a prompt and courteous full refund of every penny you've paid – whether you ask for it tomorrow or in 90 days.
As Casey Research's chief metals & mining investment strategist and editor of the Casey International Speculator, I wouldn't be happy offering products I couldn't stand behind. And I know I can only make a guarantee like this if the product delivers.
You can be confident knowing you'll either get exactly what you wanted – or your money back.
Now, about that price...
It's not cheap, but it's well worth it...
I'm sure you've been wondering what kind of an investment it takes to subscribe to the Casey International Speculator.
After all, an investment research publication that has delivered annualized gains of 27.2% over the past 8 years can't come cheap, can it?
Well, no. Yet you may be able to get started for a lot less than you think.
The regular price of an annual subscription is $995. Of course, most subscribers can make this back quickly on one good play.
For example, $5,000 invested in AuEx at its original recommendation would have been worth $49,314.20 by the time the double takeover was complete.
Even so... Today with the Annual Auto-Renew option, you can lock in a $246, 25% savings – and get Casey International Speculator for just $749 per year. Not only that, you can keep that low price for as long as you remain a subscriber – no matter what new subscribers may pay in the future.
Even better, get started for just $199.
If for whatever reason you don't want to pay the $749 fee today, you don't have to. Instead, you can subscribe using the quarterly option.
Pay just $199 today to get started with a 3-month subscription. You'll save $199 and 20% off the annual retail rate.
This low quarterly rate is locked in for as long as you remain a subscriber – and you can upgrade to the lowest-available annual rate at any time.
And remember, the "Takeover Target" reports are yours free, just for trying Casey International Speculator.
When you try Casey International Speculator risk-free for the next three months, you'll get...
- The monthly issues delivered right to your inbox
- Access to the entire archive of past issues
- A portfolio page with current news and recommendations on each pick
- All seven "Takeover Target" special reports plus the "How To" report
- And additional surprise special reports you'll find on our website
As my personal thank-you for giving Casey International Speculator a try, you can keep every single special report whether or not you choose to remain a subscriber after the 90-day risk-free trial period.
IMPORTANT: About that deadline...
Before we wrap up and you get started with your risk-free trial of Casey International Speculator, I have one very important reminder for you.
As I said at the very beginning of this letter, takeover opportunities go fast. As is the case with InterCitic, the opportunity can be gone – the takeover bid can come – between one trading day and the next.
Those who take action before it happens can enjoy gains of as much as 40%, practically overnight. Those who miss it, miss it.
So you have to take action. Don't wait.
Start your three-month, risk-free trial to Casey International Speculator today so you can get your hands on the "Takeover Target" reports, and add these stocks to your portfolio.
It's easy to order – just fill out this simple order form.
You'll get access to the most recent issue of Casey International Speculator, the archive of past issues, the portfolio page with every current recommendation, and all the free reports.
Fortune doesn't favor those who wait. You don't want to hear tomorrow that any one of these seven stocks was taken over and you missed your opportunity.Try Casey International Speculator
Risk-Free, Starting Today
With the three-month guarantee, you have nothing to lose... And quite a bit to gain.
Chief Metals & Mining Investment Strategist
P.S. By the way, your subscription to the Casey International Speculator also includes a complimentary subscription to BIG GOLD – Casey Research's newsletter on the best investments in the large-cap gold and silver mining stocks. This is a $129 value, but it's yours free when you subscribe today.
(If you're an existing BIG GOLD subscriber, we will automatically apply the balance of your current subscription to the Casey International Speculator.)
P.P.S. Remember, it's critical you take action today and start your risk-free subscription to the Casey International Speculator – because any of these takeovers could happen any day.
While I'm always on the hunt for the best takeover targets, the seven opportunities featured in the seven "Takeover Target" special reports could disappear quickly (rewarding fast movers with as much as 40% one-day gains). I'd much rather hear that you were in on the gains than that you missed your chance.Get Immediate Access to
Casey International Speculator
and Your Free "Takeover Target" Reports