Thursday, July 21, 2011

Don't Buy American

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Don't Buy American
By Christian A. DeHaemer | Thursday, July 21st, 2011

I don't know anyone who wants to buy a new General Motors (GM) car.

The automaker is controlled by the government and the unions, and it went bankrupt last year. It reminds me of United Airlines, which goes bankrupt twice a decade (buy UAL puts if it breaks $20 to the downside).

It is always a good idea to short bad companies. And one of the worst companies out there is Government Motors.

Last week, it was reported that big trucks are jamming up the dealer lots; big trucks have the highest profit margin for GM.

The Chevrolet Silverado and the GMC Sierra full-sized trucks were sitting on lots an average of 122 days at the end of June. Car companies aim for inventory to sit around for 60 to 70 days. The average last year was 99 days, according to Ward's Auto.

One look at the numbers and it becomes clear that GM can't sell the vehicles it has and is stuffing the dealers...  

Zero Hedge is reporting the inventory-to-sales ratio for the car industry just surged to 1.62, a level not seen since the summer of 2009. That's a 16.55% increase — the biggest percentage jump in the inventory-to-sales ratio in history.

In other words, no one is buying cars.

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The Best Stock Pick of the Last Quarter-Century?

Most analysts never uncover a 1,000% gainer in their entire lives...

Yet that's just what Crisis & Opportunity editor Chris DeHaemer did last year.

Some sources have called it "the best pick they've ever seen". We call it money in the bank.

Either way, this thing's about to run up yet again — so I suggest you get the full details here. 


And yet last week, GM stock was at the top of its range at $32 a share.

I immediately put out an option trade. My readers took profits of up to 105% in five trading days.

This is precisely why I created a financial trading service called Crisis and Opportunity. My readers and I buy fear and sell greed.

This is "blood-in-the-streets investing," pure and simple.

The 19th century banking magnet Baron Von Rothschild is credited with saying, "The time to buy is when blood is flowing in the streets, even if it's your own." He made a fortune buying Paris real estate after Napoleon's defeat at Waterloo.

The idea is quite simple: When everyone is selling and no one is buying, the price must be low. Furthermore, when the buyers return — and buyers always return to true value — they will pay a premium as they rush back in.

Crisis and Opportunity will coolly buy when others sell in panic... and sell back to them when the herd changes direction and tells each other, "Now is a smart time to buy."

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I wasn't planning on ever opening this offer again, but thanks to my special silver connection, I'm currently able to accept a handful of more folks.

Supply is extremely limited. And this time — once the silver is gone — I can promise you this offer will be off the table for good. 


Your humble editor will take any plane, Soviet chopper, or steed to anywhere on earth if it means you will be the first in on extraordinary opportunities.

In 2010, I told my readers to buy what was to become the best-performing market in the world: Mongolia — up 120% in dollar terms.

That same year, the C&O portfolio was up 330% on an annualised basis, with many big winners coming from quick trades. (As I already mentioned, I booked up to 105% from Government Motors (GM) puts in five trading days.)

The Stock Gumshoe, a well-read reviewer of investment newsletters, is on record as saying Crisis & Opportunity produced the best-performing stock pick he has ever written about:

One of the all-time best-performing ideas in the history of stock teasers, right up there with NetFlix and Skyworth Digital, came to us from Christian DeHaemer as the first salvo in the enthusiastic battle of Mongolia’s resources.

This was a small, unknown oil company that went up 1,059% from the time it was recommended to investors just like you at 18 pence. That's like $0.36.

Crisis & Opportunity sold half the position for a 759% gain, and is now buying more for the next leg up.

My service uses a top-down approach to investing. Once you understand the macro situation, you drill down to the essence, the core... the pure, unadulterated profit opportunity.

In today's market, the way to make money is to avoid fiat currencies and the money printers, and seek out hard assets.

The cheapest hard assets — oil, coal and gold — are located in unseemly places most Wall Street brokers won't visit; they don't want to put down their banana-nut bagel or leave their sexy assistants to go to the hard places of the world.

Not only will I go to places most have never heard of, but I will get there first and with the most.

If you are fine making 4% a year off of mutual funds, or 0.25% a year off of CDs, then you need to stop reading now. Get out, leave.

On the other hand, if you have the head to coolly buy from those who panic and sell to fools who think they are smart... if 1,000%-plus profits are important to you... you want to be a Crisis and Opportunity member.

Learn how to join us today.

Christian DeHaemer
Editor, Energy and Capital


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The Smart Money in Canadian Energy
2011-07-19 - Keith Kohl

Energy Companies Need to Increase Value
2011-07-19 - Brianna Panzica

Economic Releases for the week of Monday, July 18th, 2011:

Jul 18 - NAHB Housing Market Index
Jul 20 - MBA Mortgage Index
Jul 20 - Existing Home Sales
Jul 21 - Philadelphia Fed
Jul 19 - Building Permits
Jul 19 - Housing Starts
Jul 21 - Leading Indicators

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Energy and Capital, Copyright © 2011, Angel Publishing LLC, P.O. Box 84905, Phoenix, AZ 85071. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of Angel Publishing may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.

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