| The Penny Sleuth Features: Penny Stocks, Options and High-Growth Opportunities! |  |      | A Reason to Buy the Most Hated Industry on the Market
By Jim Nelson
March 3, 2011
Dear Penny Sleuther,
In research I send my Lifetime Income Report readers, the theme you I cover more than any other is market mispricings. Some of the best times to buy a stock are when it is the least popular.
It’s because of this that we’ve been able to lock in gains of 32%, 46% and even 104% in the past two years — and that doesn’t even count the massive gains currently open in LIR’s portfolio.
This month, I may have found the largest Wall Street mistake in my career…
Of course, finding investor errors is the nature of contrarian thinking. If we were following mainstream lines of thought, we would never find undervalued plays. And I’d certainly never find the kinds of yields my readers have been able to lock in.
50% OFF Mayer’s Special Situations Ends TONIGHT at Midnight! Microcap “Stealing” Oil from Iran Could Return 4,599%! One tiny company has found a way to legally “steal” oil from Iran’s largest oil field... Which means it’s now sitting on oil reserves that could be worth over fifty times its total market-cap, setting the stage for an astronomical run-up of 4,599%! Resource expert Chris Mayer shares everything you need to know about this urgent opportunity in his brand new presentation...
Contrarian investors, at least good ones, don’t find just out-of-favor stocks. They find hated ones. And despite one of the best years in this one industry’s history, investors have washed their hands of it.
The industry leader is down more than 50% since it came under fire. (My favorite stock in the industry has also seen its share price halved. But its dividend grew 33% in the last quarter — and a massive 166% since the start of the recession.)
The best part, we’re able to lock in a solid yield on this industry for the first time in its history…Thank you, Wall Street!
Before I get into the specifics, let’s dive right into this industry…and investors’ repugnance of it.
The Down-and-Out Industry We Can’t Help But Love
Here’s how bad things look for this industry — or at least how the mainstream media have framed the argument against it.
The Senate HELP Committee brought in top players to berate them. A Government Accountability Office report found fraud across the board. And the industry’s independent regulators may even lose their jobs over a scandal. In fact, if events continue to unfold in this fashion, these businesses will lose the majority of their funding — which comes from Washington.
These threats and issues have even caused one CEO to recently say, “Most of [the decline] is based on the fact [that] you have important public policy commentators…as well as significant media who have questioned the efficacy of [our business].”
The industry, as you may have guessed by now, is for-profit education. Those may just be three of the ugliest words in Washington.
As I noted, the industry first came under fire in early August when the GAO report on abuses and fraud was leaked to the press. Shares of every for-profit education company collapsed.
WARNING: This is Controversial. It Offends “Gloom and Doomers.” Here’s why it’s NOT the end of America…
The HELP Committee immediately called a hearing on for-profit schools. From there, arguments for changing how universities are accredited started popping up. Chairman Tom Harkin and Sen. Al Franken laid into the executive director at an accreditation agency. They even dragged in a former admissions representative from a for-profit to give the gory behind-the-scenes details.
When the smoke cleared, nothing was changed. But the damage was done. Harkin is still the committee’s chairman. And this story could still have an unhappy ending for the likes of Kaplan University and University of Phoenix.
But just as everyone is turned against the industry, there are still some golden eggs to be found.
***Editor’s Note: More specifically, there are a number of small-cap for-profit education stocks that could have upside from this point. One of the small education stocks to watch is National American Univ. Holdings (NASDAQ: NAUH), a $328 million college operator that pays out a 1.54% dividend yield. Of course, Jim has identified his favorite education play for his Lifetime Income Report readers — to get his detailed analysis for yourself, just click here.***
Sincerely,
Jim Nelson
P.S.: Your retirement could be in trouble — especially now that Social Security admits it might run out of money to cover future payouts. But did you hear?
There’s another government-backed “retirement program” you can still legally tap... just a handful of Americans even know about it... for thousands of extra dollars per year.
Check out this free presentation for details...
Watch This: Nine Easy Ways You Can STILL Get Rich With Gold Is it too late to get rich on gold’s bull run? Not according to this stunning new report. You’ve got at least NINE new ways you can still pile up new gains on the yellow metal’s surge.
A Reason to Buy the Most Hated Industry on the Market is featured at Penny Sleuth.
|
| |  | | |  The Penny Sleuth, a free e-letter, offers independent news and commentary on small cap stocks, options and high growth opportunities. We sent this e-mail to KNUMASSCN@gmail.com because you or someone using your e-mail address subscribed to this service.
Are you having trouble receiving your Penny Sleuth? You can ensure its arrival in your mailbox by: Whitelisting Penny Sleuth.
To end your Penny Sleuth e-mail subscription, click: Unsubscribe.
The Penny Sleuth is your free and independent source for analysis, commentary and news on small cap stocks, options and high growth opportunities. At the Penny Sleuth, we give your our 100% independence pledge. That means that we never receive compensation to talk about any stocks we feature. Our editorial staff never owns a position in any of the stocks we mention at the time of publication. And we only recommend stocks that we come across in our own original research. Our pledge also means that we won't collaborate with companies who don't live up to our independence requirements. Nothing in this e-mail should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. © 2011 Agora Financ ial, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202.
| |
No comments:
Post a Comment