Dear Value Investor,
I just ran the numbers again and they check out.
While the Dow sputtered along at an anemic 6.4%, my readers and I racked up 32.6% in compound annual returns during the same period.
Yep, 32.6%. That's 5 times better than the Dow ...
... and we did it without trading options, buying on margin or other high-risk strategies.
I'm getting too old to gamble my hard-earned savings on those risky shell games, aren't you?
My readers and I make a LOT of money, but we do it safely ...
... using the same "common sense" method of investing that people like Warren Buffett, Mario Gabelli and John Neff use to live comfortable secure lives.
You better believe it's working for us: we get steady individual stock returns of 124% ... 169% ... 103% ... 189% and more. So can you. Let me explain.
Urgent Bulletin Ready For You--FREE
I just finished preparing a special Investor's Report that I'd like to send to you absolutely FREE. It's called 5 Top Value Stocks Every Investor Must Own.
In this Report I reveal my favorite undervalued stocks. Stocks Wall Street ignores. I personally selected them from more than 500 choices for their low risk and high reward.
I'll name ...
- The mining company that won long-term agreements to sell iron ore to China and sells for only 11 times earnings. Profits have soared and the stock looks like a great buy here. And you’ll get a dividend to boot!
- A company that's profiting from acquisitions and partnerships. It’s an Internet stock that’s safe and undervalued.
- This diversified worldwide manufacturer of industrial products sells at only 10.3 times earnings and pays a 1.9% yield. I see 15% annual growth due to rapid international expansion, exciting new products and tight cost controls.
- The world's largest land drilling contractor doubled its earnings in the first half of 2006 and shows no signs of slowing down in 2007. It has a strong balance sheet, lots of cash and sells at just 7.6 times earnings. A recent price decline makes this an excellent buying opportunity for investors.
- This leading metals service center enjoys strong demand for its products. EPS jumped 65% in the first half of this year, but you can buy shares for a bargain at just 6.8 times earnings.
Valued at $25, 5 Top Value Stocks Every Investor Must Own Now isn't available anywhere else. I want to send it to you FREE because it's the best way I know to introduce you to my monthly investment advisory:
The Cabot Benjamin Graham Value Letter.
Wall Street's Loss Becomes Your 200% Gain
The Cabot Benjamin Graham Value Letter is unique: it's the only advisory in the country that applies the fundamental principals of Benjamin Graham to stock picking.
Benjamin Graham, considered the father of value investing, taught his wealth-building secrets to Warren Buffett, Mario Gabelli and John Neff among others ... each of whom went on to establish fantastic fortunes.
In the same way, the Cabot Benjamin Graham Value Letter produces steady, above average returns -- with reduced risk -- in undervalued companies that Wall Street misses time after time.
Now you're probably wondering: what do I mean by "above average" returns? Let me show you:
- Standard Pacific: up 169% in 23 months
- CVS: up 150% in 40 months
- Pulte Homes: up 103% in 13 months
- KB Home: up 90% in 13 months
- Honda Motor: up 75% in 27 months
- Express Scripts: up 204% in 33 months
- UnitedHealth Group: up 103% in 16 months
If you had invested just $5,000 in each of these low-risk investments, you would have turned your money into $80,000.
Yep, $80,000. Actual, on-the-record profits our subscribers pocketed in undervalued stocks that Wall Street couldn't care less about.
Look at the amazing facts:
- In the past 45 years, value stocks have consistently outperformed growth stocks by about 9% per year.
- Benjamin Graham himself achieved returns of 20% per year regularly for over 40 years.
- We've achieved returns of over 20% per year for the past 10 years following his principles.
- During the past 9 years, using Graham's guidelines, I've beaten the market indices in every year with a margin of out-performance of 13.7% per year.
- Since inception, my Classic Model portfolio has achieved a compound annual return of 32.6%, compared to a 6.4% return for the Dow. That's FIVE TIMES BETTER.
- My Wise Owl Model portfolio has achieved a compound annual return of 17.3% since inception, compared to a 7.1% return for the S&P 500
What Makes Us Different From -- Maybe Even Better Than -- Any Other Investment Advisory?
Like Graham, I believe in a "margin of safety" ... which means buying companies that are cheap relative to their intrinsic value. Using Graham's criteria, I can figure out the optimum "buy" price for you.
Like Graham, I believe in research. To achieve returns of at least 20% a year, I screen a database of over 1,700 stocks for the highest quality companies. This ensures that my recommendations to you are strictly firms with solid balance sheets and track records of success.
Like Graham, I believe that the secret of building wealth during economic downturns is to buy low and stay fully invested.
Now you might be thinking: sounds good, Roy, but how does the system really work? I'll demonstrate three ways.
189% Gain In 26 Months
Countrywide Financial is the world's largest independent residential mortgage leader.
CFC originates, purchases, services, and sells mortgage loans. During the past several years, CFC has successfully diversified into banking, asset management, insurance and international markets.
Mortgage lending currently accounts for 65% of revenue.
I believed that CFC's earnings growth would slow in the next several quarters, but long-term growth would stay solid based on the company's diversification efforts.
As the housing boom weakened, I expected loan activity to slow in 2006, but I also expected that this would be more than offset by increased revenue from loan servicing fees and CFC's new business operations.
In short, a great undervalued stock.
I recommended Countrywide Financial to subscribers in January of 2006. Only 26 months later, our readers cashed out for a return of 189%.
If you had invested only $10,000, you could have turned it into $29,000 in this low risk/high reward stock.
124% Return in 13 Months
Centex Corporation operates 3 divisions: home construction, mortgage finance, and construction services.
The company is one of the nation's largest homebuilders and operates in 489 communities in 26 states. CTX offers a variety of homes that vary widely in price.
The company's mortgage finance division provides mortgages for over 70% of CTX's sales. Centex's construction services division builds large commercial structures for a wide variety of uses.
I saw that Centex was selling off its less profitable businesses from its core divisions. The proceeds were being used to pay down its heavy debt load and to repurchase common stock.
Not only that, but Standard & Poor's rated the company A+ for steady earnings and dividend growth during the past 10 years.
I recommended Centex in November 2005.
Investors who listened saw a 124% return. For each $15,000 invested, they walked away with $33,600 in only 13 months.
126% Return In 28 Months
Korea Electric is the only company in Korea that produces and distributes electricity. The company is 54% owned by the Republic of Korea and even receives special tax treatment from the government.
KEP electricity is generated 42% from nuclear power, 41% from coal and 11% from liquefied natural gas.
In addition to a lower tax rate and a rate increase of 3.5%, Korea Electric's outlook was excellent: It has plans to expand within its own country and is building two power plants in China, too.
Its shares sell at just 7.2 times forward earnings and produce a dividend yield of 2.2%. In my opinion, Korea Electric offered a unique opportunity to purchase a Classic Value Stock combined with the low risk of buying a utility company.
Investors who put in $20,000 walked away with $45,135 in only 28 months.
Not bad for undervalued companies that Wall Street dismissed, wouldn't you agree?
Now, not every recommendation will be profitable. Our largest drop was 19.3% in the Kellwood Company in the Classic Model and 24% in Health Management Associates in the Wise Owl Model.
But as you can see ... even when we do suffer the occasional loss, it's relatively minimal.
When that happens and our unique risk-reduction strategy kicks in automatically, I'll send you a "sell" order immediately.
Subscribe Now For 24 Cents A Day
Okay, let's add up what you'll get:
You'll get 12 issues of the Cabot Benjamin Graham Value Letter.
A one-year trial subscription to the Cabot Benjamin Graham Value Letter is only $87. You save $162 off the regular price.
Or choose a two-year subscription and save even more.
You'll get all the great benefits of the one-year subscription, and I'll also include a SECOND Bonus Report: Graham's Double-Digit Income Stocks, my five favorite companies for above-average dividend yields in the next 2 to 3 years. Simply click the link below.
https://secure.netatlantic.com/benjamingraham/ebgvhcwa11.html
Use Benjamin Graham's and Warren Buffett's "common sense" method for achieving returns of 20% or more without risking your hard-earned assets.
Sincerely,
J. Royden Ward
Editor Cabot Benjamin Graham Value Letter
P.S. Join our family of happy, profitable value investors.
Click now: https://secure.netatlantic.com/benjamingraham/ebgvhcwa11.html
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