Tuesday, April 15, 2008

Opportunity To Make Explosive Gains On Stocks

The Worst Financial Disaster to Rip through The Market in Decades... Has Just Handed You an Opportunity to Make Explosive Gains (With Very Little Downside Risk...!) “THANK YOU WALL STREET!” The Last Time Conditions were This Ripe I Made a 9,323% Return... Today, YOUR OPPORTUNITY is Even Better!
Dear Reader,
Wall Street has just handed you the opportunity of a lifetime.
In the midst of the greatest financial disaster in decades (probably since the Great Depression) you have an opportunity to make hundreds – even thousands – of percent returns, with very little downside risk.
It might be hard to believe, but it’s absolutely true.

Right Now, YOUR Opportunity is Even Better...!


I have an extraordinary opportunity to share with you – one that could easily net you 10... 20... maybe even 100 times your money in the coming years.
And you won’t believe how simple it can be. This does not involve buying options or using leverage. Nor must you put your money at undue risk.
This opportunity is in a market sector that I specialize in. And I didn’t think I would ever be able to say this in my lifetime, but...
It is an even BETTER VALUE TODAY than it was years ago when I got involved!
There has never been a better time to invest in this market than RIGHT NOW.
I’ll explain everything below. But before I do...
Let’s Give Credit Where Credit is Due...
If you want to send a thank you note to those responsible for this once-in-a-lifetime opportunity, address it to the con-artists at Wall Street’s biggest banks.
You see, for years these over-educated charlatans in pin-striped suits have played as if they mastered the art of financial alchemy... turning steaming piles of manure into solid gold bricks.
With their structured investment vehicles (SIVs) and collateralized debt obligations (CDOs) and a whole alphabet soup of exotic scams, the swindlers took over a trillion dollars in toxic mortgages and “structured” them into pristine packages of highly rated debt.
After keeping some for themselves, they sold this debt to hedge funds, foreign investors, other banks and the pension funds that manage the accounts of little old ladies across America.



For a while, everything was humming along smoothly...
As real estate prices continued to climb and the economy continued to grow and the underlying borrowers continued to pay up, the swindle worked just fine.
But you know what happened next...
Real estate prices fell... the economy weakened... and the over-indebted borrowers at the bottom of this giant pyramid began to default on their obligations.
So far, the banks and other holders of these loans have already written off more than $215 billion. And when it’s all said and done, some estimate the write-downs could total well over a TRILLION dollars!
But that’s nothing compared to the $7.7 trillion that has been lost in the global stock markets just since October.
But There is a Bright Side to this Mess... And it Could Hand You 1,000% Returns
You see, in all the confusion and uncertainty caused by this PhD-level financial disaster, masses of investors joined a mad rush to “sell it all”.
In their panic, they pushed prices down across the board. Of course, some sectors, like the financials, deserved to get crushed.
Other sectors were simply caught in the crossfire. And one of the markets that has suffered the most is one that has consumed my time and intellect for the better part of 15 years.
Right now... thanks in large part to the crisis on Wall Street... the values in this sector are positively absurd! Stocks with extraordinary value are trading for pennies on the dollar.



The health of the U.S. economy is on very shaky ground, to put it mildly. I believe we have already entered a recession, and there’s a good chance we’ll see a full-blown depression in the coming years.
And it’s not just our economy. The U.S. dollar is tanking too. And while it may bounce, bounce,

bounce... the long-term trend is down, down, down



If they do anything at all, the bailouts, rate cuts and “stimulus” plans will only delay the pain, making the end result that much worse.
Here is the bottom line: If you do not act quickly and decisively, your personal wealth and even your way of life could be at serious risk.
But the demise of the dollar and a weakening economy won’t be a calamity for everyone. There are some who will do a lot better than survive... they’ll thrive. And I want you to be among them.
So, keep reading, and I’ll show you how to protect your wealth... and potentially make better returns than you have ever imagined!
Let’s get to it...
Let Me Lead You to the Opportunities of a Lifetime


The ongoing bull market in commodities and natural resources will continue to be one of the greatest financial mega-trends of the coming decade and beyond.
But I can already guess what you might be thinking... right now seems a little late to the party.
Gold has cleared $1,000 an ounce... silver is over $20... platinum and copper are at all-time highs... crude oil is more than $100 a barrel.
With most commodities near their record highs, how can I possibly say that NOW is the best time in a decade to get involved?
Let me assure you, it is. Because I’m prepared to lead you to...
The Most Undervalued Sector of The Natural Resources Market (By Far!)
I specialize within a unique (and extremely profitable!) niche of the natural resources market – exploration companies.
These are the highly talented and specialized firms that go out and discover the world’s natural resources. Everything from gold and silver... to oil and gas... diamonds, platinum, nickel, lead, zinc and copper, the exploration companies literally draw the treasure maps.
And during a bull market in natural resources, the payoff to investors in these companies can be astronomical. In the last precious metals bull market, many mining stocks went from under $2 a share to well over $100 a share between 1975 and 1980.
Today, more than 20 years later, we are near the beginning stages of another – this time a MAJOR – bull market in gold, silver and virtually all commodities. And if history is any indication, this bull still has years left to run.
In the last 100 years, there were three major commodities bull markets. The shortest lasted 14 years and the longest lasted 23 years. If this one is simply average, we’ve still got another 10 years to go... at least!
So, if you think you missed out on the commodities boom, think again. Amazingly, you can still get in on the ground floor. But this opportunity won’t last long.
The Buy of a Lifetime is Here and Now!
Because of their significant leverage to the price of gold and silver, mining stocks usually outperform the metals in a precious metals bull market. As the price of gold and silver rise, gold and silver stocks rise even faster.
But that’s not what has happened, recently...
While the price of gold rose roughly 50% between August of 2007 and March of 2008, gold stocks gained only about 40%. That’s still quite a move, but it hasn’t kept up with the metal.
And get this...
During the same time period, the exploration companies (they’re also called the “juniors”) have actually gone DOWN! That’s amazing. These are the companies that typically demonstrate the greatest leverage of all.
Rather than following the metals up, the junior mining stocks have been following the markets down



Amazingly, while gold and silver, oil, copper, platinum, uranium, and a whole host of commodities are soaring in value... the companies that explore for these natural resources have been positively beaten down.
Many companies with extraordinary potential are trading for just pennies on the dollar, priced as if gold is at $400 instead of $1,000.
The global financial crisis has caused investors to sell shares in just about everything, driving prices down. But if anything has value in a world that is awash in paper money, it is hard assets... real tangible things... natural resources.
And that’s where YOUR opportunity lies.
These Companies Might Be Juniors... But Their Returns are Truly GIANT!!
In the midst of a precious metals bull market of historic proportions, the exploration companies are seriously lagging the resources they are exploring for. These companies are due for a major run. And when they get hot, they’ll blast off like rockets.



Why NOW IS THE TIME to Enter the Junior Resource Market
Over the last six years, the bull market in precious metals and commodities has brought billions of dollars in capital to the exploration sector.
This money has already been put to work, and many of these companies are working on highly promising targets and proving reserves. That means there is a lot less risk and less time to wait than if you had bought shares years ago.
And not only that, but the materials these companies will help bring to market... gold, silver, platinum, oil, uranium, copper... you name it... these resources are at or near their all-time highs.
There has never been a greater reward for discovering these resources... and yet the companies that are out there doing it are about as cheap as they have ever been. There is a MAJOR disconnect here... and it’s one that can make you RICH!
Today, you can buy some extraordinary exploration stocks for just pennies a share... stocks that with just a little success, will soon sell for $10 or $20... or even more!
The Junior Exploration Companies are Essential to the World’s Quest for Resources
Currently, the demand for natural resources and precious metals is growing at the fastest rate in history. Now combine that with the fact that most of the world’s biggest mines are experiencing falling reserves.
Take gold, for example. Despite the incentive of the highest prices ever, global gold production fell to its lowest point in 10 years in 2007. This is happening while worldwide gold demand is exploding.
Talk about a squeeze play of massive proportions!
And it’s not just gold... this is happening with many other commodities too. The major mining companies MUST replenish their diminishing reserves. And in most cases, the only way to do that is to buy out or joint venture with the juniors.
The big mining companies need new deposits... and they need them NOW!
And to get them, they are willing to pay up... BIG TIME!
With cash pouring in from high commodity prices, the mining companies will not miss this opportunity to buy the undervalued juniors. In the months and years ahead, there will be a flood of mergers and takeovers as these cash-rich producers go shopping.
This is your chance to get in early.


$2,000 Gold...? Think More Like $6,000 Gold...!



There is no rush quite like a gold rush. And we are about to see a gold rush like never before.
In 1980, the price of gold hit $850 per ounce. We’ve already eclipsed that high-water mark. But don’t forget about inflation. Today’s dollars are worth a lot less than they were 30 years ago.
In fact, if you adjusted for the “official” rate of inflation, gold would have to hit $2,150 an ounce, before it breaks the old all-time high. I believe that’s a given.
Lies, Damned Lies, and Government Statistics
But just about any housewife in charge of the family budget could tell you the “official” rate of inflation is a lie. By taking out food and energy and tinkering with the way it’s calculated, the government has managed to hide the fact that inflation is soaring.
And with the central banks continuing to pump out liquidity, it looks like there is no end in sight.



Even today, with gold near $1,000 an ounce, the yellow metal is still a long, long way from the top.
And just wait until the REAL rush for the lifeboats begins! When the dollar comes under serious pressure, as it certainly will, millions will turn to precious metals as a store of wealth.
When that time comes, the upward pressure on gold and silver and the companies that explore for these metals will be astronomical.
So, let me tell you how to climb on board for a very profitable adventure.
Build a Fortress of Wealth with The World’s Most Valuable Natural Resources
You might have heard that resource exploration stocks can be risky. They are definitely volatile, but they don’t have to be “risky.”
When you buy an exploration stock, there is always the risk the company won’t find a significant deposit before the money runs out.
The way to reduce this ‘company specific’ risk, of course, is to invest in multiple companies. This limits your downside risk while still exposing you to tremendous upside potential.
And when you can buy shares for less than a dollar, you can control thousands of shares with a very small commitment of capital. When these companies are successful, you can make a fortune almost overnight!
It also helps to buy when the sector is out of favor and deeply undervalued... as it is TODAY.
But there is even more you can do besides spreading your risk and buying when the time is right.


A Nine-Step, Well-Proven System for Picking Winning Exploration Stocks

Buying exploration stocks that meet these criteria, can help to dramatically reduce your risk.


Management must have a successful track record – The greatest assets of an exploration company are the talent and motivation of its management team. Just having great properties is not enough. The management team should also have a high level of experience and a proven track record of exploration success.

I primarily choose “project generators” – These are companies whose operating plan is to discover resource assets, retain a significant ownership stake, and then turn those properties over to well-funded joint venture partners for the capital intensive development and production.


The company must have multiple irons in the fire – The safest companies are those that have multiple projects in the works, preferably in multiple countries. That way you get exposure to major discoveries on many fronts.

Management must be invested – You want management working alongside your own interests. You want them to be shareholders, with their own money on the line, not just options grants.

The company must be financially sound – You want companies with sufficient working capital, low or no debt, and the ability to run a tight ship. What you want is STAYING POWER.

I only seek companies that have MASSIVE potential – There’s always the risk that a property won’t pan out. That’s why you invest in companies where every project could host a world-class discovery. You want your companies hunting elephants... in elephant country.

I always buy early... and I buy right – This is not about chasing momentum. You want to buy these stocks early, at a good price. Timing can mean the difference between a $10,000 and a $100,000 windfall.

I am wary of political risk – There are plentiful resources in countries with low political risk. Generally, you should avoid areas with the greatest political risk, and stick to exploration in countries like Mexico, the U.S., Argentina, China, Brazil, Australia, Canada, etc.

The company must have promotional skills – Experienced geologists who can find the deposits are mandatory. But you also want a company that can promote itself and has a plan to tell its story.
By following these simple criteria... and spreading your bets across multiple companies... you achieve extraordinary success.
When you combine this strategy with a bull market of historical proportions (and the fact that these companies are as cheap as they have been in years) the odds of success are decidedly in your favor!

Monday, April 14, 2008

Investors Delight on Income

Only 1 out of 5 Americans has enough savings to cover their living expenses for more than 6 months, according to LexisNexis
To maintain your current lifestyle after you stop working, you'll have to earn between 70% and 75% of your pre-retirement income. YEAH, RIGHT!
Social Security Surprise: Think your benefits will be there when you need them? Think again. Oh -- and your family owes Uncle Sam $473,456, too
Your pension -- GONE? $22.8 billion deficit at government pension insurance agency threatens the security of every hard-working American -- including you
Don't panic -- HELP is here! Make back every dollar you lose in government shortfalls, volatile Wall Street markets, housing bubbles -- and MORE
REVEALED IN THIS REPORT: The names of 3 under-the-radar dividend-paying stocks you MUST BUY in the NEXT 5 DAYS -- that have already rewarded some investors with a total return of 49.21%
GOOD-BYE, OLD MAN STOCKS! These income producers are NOT your father's fuddy-duddy blue chips ... these exciting, little-known companies give you STEADY gains for a safe secure future.
Dear Fellow Market-watcher:
If you ignore this warning and put your faith in government-backed Social Security or a company-sponsored pension in the hope you'll have an easy retirement ... it's just like FLUSHING YOUR FUTURE DOWN THE TOILET.As an advocate for potential investors, I don't want to see you make this mistake. You deserve a better future.
Give me the next five minutes to explain everything in this critical report and I promise to let you in on a guaranteed strategy that can ...
-- protect you from the coming Social Security bankruptcy
-- shield you from the coming blast of inflation
-- guard you against the coming pension debacle
... AND ...
-- fill your mailbox with a steady stream of steady income ... every month ... for the rest of your life.
Best of all, you could begin seeing your first checks in the next 90 days.
It's so easy.
Just imagine:
While other people only have bills to look forward to when they get their mail - YOU COULD BE pulling out a fistful of new cash and getting RICHER every time you open your mailbox -- if you make the right moves NOW.
My specialty is helping early-bird potential investors learn how to rake in reliable and consistent monthly income. Specifically, from dividend-producing stocks.
They're among the SAFEST investments on earth.
They don't involve options, short selling, market timing, betting on commodities, hedge funds, derivatives, the volatility of gold ... or any other high-risk strategy.
As I demonstrate below, this strategy delivers healthy gains ... month after month, year after year ... and can build you a "wealth fortress" for a lifetime of independence and security.

I give you my word: We'll get a total gain from EACH stock of AT LEAST 14% ...and usually more ... or I won't bother with them.

For the past 12 months and counting, my recommendations have been spot-on:
Crescent Real Estate Equities gave us a 27.39% gain in 16 months ... Dominion returned a gain of 14.18% in 14 months ... Inco showered us with a windfall gain of 85.83% in 11 months.
Then there was the 24.82% gain we pocketed from Verizon in only 12 months ... a 24.60% gain in 11 months from OMI ...
I could reveal the names of many more (and I will, in just a second), but first --
Let's put it in perspective:
Just ONE of these stocks would have protected you from the bite of inflation (roughly 2.9%) and still could've handed you a juicy profit!
Can you see why income investors jump for joy every time the mail comes?
There's another reason, too: higher returns.
Standard & Poor's predicts that over the next few years, the average annual appreciation in stock prices will be an anemic 6% -- if that. Let me ask you:
If you were concerned about the total return of your investments, wouldn't YOU zero in on the dividend payout? Wouldn't you hope to do better than 6%?
You bet you would.
Well, WE did.
As investors in dividend-paying stocks, we'd be rewarded with an 9.20% dividend from BP Prudhoe Bay ... more than 8% from American Capital Strategies ... a healthy 10% from MCG Capital ... 9.70% from Genco ... 10.30% from Double Hull ...
Should you rush out and buy these now? Heck, no!
They're great stocks, to be sure, but I have something much better in mind for you.

These stocks have already rewarded us with a combined total gain of 49.21%. If my analysis is correct, they've only BEGUN their rapid climb.
And finally, I'm going to tell you how to gain membership in a unique program that uncovers safe, high-yielding dividend-paying stocks EVERY month.
More on that in a minute. First, I have to ask you ...

Do you want to follow the jittery "record-breaking" Dow ... or do you

want to make real money?
I'm really steamed.
Because honest investors are being handed a line of bull about the Dow's new highs this fall. They're getting a false picture of how things are -- and it could put them at grave risk.
Here's why I'm so riled:
When the Dow hit a new peak in October, the media was all over the story like a cheap suit.
Break out the champagne! The economy is strong. Inflation is under control. Interest rates are going to tumble. Whoopee!
But astute investors saw three things that the media did not dwell on:
First: to get any good news from this spike, your portfolio would have to consist of every one of 30 big-company stocks in the Dow index

How many portfolios are like that? Right: VERY FEW.

Second: The Dow is a price-weighted average. This means that the higher the price of the stock, the more it influences the index itself.
But remember: the Dow is made up of only 30 stocks.
There are over 10,000 publicly-traded stocks in the U.S. Bottom line: having the most closely watched index comprised of only 30 is ludicrous and paints a PHONY picture of prosperity.
Third and MOST SIGNIFICANT: Of the 30 stocks in the Dow, only 10 are actually higher today than they were back on its high on January 14, 2000.
That means that TWO-THIRDS of the stocks sitting in the Dow's "record high" are LOWER than they were SIX YEARS AGO.
For investors, the news is grossly misleading. It gives a false sense of security. The benefits are as much of an illusion as Enron's ethics. And just as deceitful.
A better indicator of overall market conditions is the S&P 500. But when you look closely at this index, the picture looks worse:
The broader-based S&P 500 is still about 11% BELOW its record March 24, 2000 high of 1552.87.
Forget about the Nasdaq:
It's off more than 54% from its peak above 5000 that it reached in March 2000. Put another way: it hasn't even made it back to half of its all-time high.
How many Wall Street bulls told you this? You guessed it: NONE!
But I WILL -- because I'm concerned about your welfare. I'm determined -- no, make that committed -- to do everything I can to ensure that you don't fall victim to this double-talk and nonsense.

But first I want to prove why I'm firmly convinced that ...

Income stocks will be the hottest investments in 2007 ... and beyond

I was flabbergasted to see the number of investors who ditched dividend-paying stocks in the 1990s.
Clearly, this was abnormal. It certainly wasn't the case for most of the last century. Since 1926, history teaches us that dividends made up 41% of investors' total returns.
In other words, people like you and me made almost HALF of our wealth during the past 100 years from dividends of companies who gave out cash to their shareholders. Not just in boom times either. Even during the worst economic downturns in our history, the prime "way to wealth" was dividends:
After the Crash of '29, corporations paid out as much as 80% of their earnings in dividends to win back investor confidence.
During the Market Slaughter of 2000-2002, companies that paid dividends fared better than non-dividend paying companies.
Much, much better.
While non-dividend paying stocks fell 35%, dividend payers broke even on average -- and only a few companies lowered their payouts. Which proves that they're ultra-reliable.
Believe it or not, corporations love to pay them. Once they start handing them out, companies would rather die than omit them or even cut them.
Even if stock prices fall, investors can still count on a quarterly payment. Which means that dividend-paying stocks are less volatile because the companies pay out CASH.
Amazing, wouldn't you agree?Dividends made investors rich and secure for almost 100 years. So I couldn't understand what happened next, when ...
... investors were seduced by the glitz and false promises of growth companies, particularly in the tech field.
Suddenly, fundamentals didn't matter anymore. Earnings didn't matter. Profits didn't matter.
Even after they heard people like Fidelity superstar manager Peter Lynch and others push stocks that paid dividends -- investors stayed away in droves.
Until the 2000-2002 market collapse.
Then everything changed.

Six years later, the markets still haven't recovered

Between March 2000 and October 2002, U.S. stocks lost HALF THEIR VALUE -- or $7.4 trillion.
In just two years, the S&P 500 lost 49% of its value.
The Nasdaq got creamed, plunging 78%. In fact, the Nasdaq had the worst performance of ANY U.S. index in 70 years. And as you and I just saw ... the S&P and the Nasdaq are languishing.
When the market fizzled in March 2000, the biotech and tech stocks that didn't pay dividends got hurt the most.
I don't have to tell you: investors got wiped out. Lives were ruined and savings vaporized.
Suddenly investors turned back to -- no, they demanded -- the reliable income that dividends provide. Fortunately, corporations who had never issued a dividend payout in their history saw the handwriting on the wall and acted.
If you were in their shoes, what would YOU do?
To stem an investor exodus, wouldn't YOU start paying dividends to hold onto shareholders?
Of course you would! That's exactly what happened, too.
Luckily for investors, the timing couldn't be better:

Since the Bush administration lowered the tax rate on dividends from 38.6% to a maximum rate of 15%, investors are able to keep MORE dividend income now than ever before.

With the lower tax rate, even the dividend-averse tech sector has come around. Now more than 24 U.S.-based tech companies have started paying dividends. What was unthinkable 6 years ago is now commonplace.

Corporations love paying dividends. Because corporate honchos own a lot of their company's stock, they get a windfall at the lower tax rate, too.

From January 2003 through March 2005, 36 companies paid out dividends for the first time. Of those, 24 went on to INCREASE them. That's almost 7 out of 10 companies.

In 2004, more than 1,740 companies tracked by Standard & Poors increased their dividends. That's about 1 out of 4 companies in the index.

During the 2001-2004 period, when the market crash gave way to recovery, the total returns of dividend-paying stocks in the S&P 500 rose 40.5%, compared to only 27.4% for non-dividend payers.

The facts are clear: After years of fear and craziness in the markets ... after wild interest rate spikes and an accelerating meltdown in real estate ... after deceptive news about the Dow and the S&P and the Nasdaq ...

... investors are RUNNING BACK to dividend-paying stocks because ...

They want the safety.

They want the security.

And most of all: they want to PUT MONEY IN THEIR POCKETS.
PLUS: More and more companies than ever before are jumping on the bandwagon and paying
dividends. And the trend shows no signs of slowing down.

So let me ask you ...

"Why invest in high-risk growth equities when you can let dividend stocks make you RICHER by 404% ... 553% ... 1,367% and MORE?"

WARNING: Growth stocks may be flashy -- but history proves beyond a doubt: an income stock strategy PUMPS OUT ABOVE AVERAGE total returns over time.
From 1975 to 2005, dividend payers in the SP 500 grew at an annual rate of 10.2% ... while non-dividend paying stocks advanced by a pathetic 4.4%
A dividend stock strategy is ULTRA-SAFE.
Instead of plunging into high-risk options trading or commodities or margins or hedge funds, investors EXPLOIT soaring dividend returns to build wealth by an order of magnitude.
Let me demonstrate.
Had you invested in stocks that pay dividends from 1995 to 2005, you would have raked in returns of:
404% in ACE Limited ... 332% in Alberto-Culver ... 553% in American International Group ... 251% in Becton, Dickinson ... 1,660% in Citigroup ... 1,018% in Doral Financial ...
1,367% in Federal Home Loan ... 930% in First National Lincoln ... 1,011% in Harley-Davidson ... 848% in Home Depot ...
261% in Illinois Tool Works ... 256% in Johnson & Johnson ... 967% in Linear Technology ... 319% in McDonald's ... 1,365% in Paychex ...
1,438% in Pier 1 Imports ... 1,145% in Royal Bancshares ... 800% in Stryker ... 445% in Sysco ... 1,227% in USB Holding ... 441% in Wal-Mart ...
These stocks -- and dozens more -- raised their yields annually for 10 years. Does that mean that they -- or ANY income stock -- will continue to do that forever?No, you and I both know that there are no guarantees when it comes to investing. The risk of losing money never goes away completely.
But those returns weren't a fluke either...

Get a 50% dividend increase with your next Big Mac from McDonald's

I can tell you for a fact: many companies tend to INCREASE their dividends year after year.
More than 100 companies have raised their dividends for 30 years in a row ... 22 companies have done it for 40 years.
In September of 2006, McDonald's hiked its annual dividend almost 50%. This means that the fast food giant raised its yield EVERY YEAR since mailing out the first dividend check 30 years ago.
Microchip Technology, an Arizona-based maker of microcontroller and analog semiconductors, boosted its dividend every quarter since November 2003 -- a hefty total of 850%.
Analog Devices, which makes chips that convert real-world information into electrical signals, jacked up its dividends by 300% since it began paying them.
American Express, Pepsi, Target, Wal-Mart, State Street, Microsoft, Intersil, Guidant, eExclon ... and dozens more ... all PUMPED UP THEIR DIVIDENDS in 2006.
While 10 companies in the Dow "surged" and inflation crept up, dividend investors got more bang for their buck.
Much, much more.
Sweet, isn't it?
As sweet as it is, though, you can have it EVEN BETTER. That's because ...

When you invest in dividend stocks, it's like getting them for FREE!
How?


Because of the power of compounding.
Let's say you own shares in a company that pays you a dividend of $1 a share.
And let's say the payment goes up 10% a year (as we've just seen, that's VERY common). That means your dividend alone will DOUBLE every 7 years. It is this extra bit of compounding that helps your money to grow exponentially. Your original investment increases because you're earning a return on what you originally invested PLUS the dividends you've accumulated.
Over time, it's like PAYING NOTHING for a stock -- but you're still cleaning up on the returns.
When you add price appreciation to dividends, the amount of money you pile up is even more dramatic ...

From 1983 to 2003, the S&P gained 370%.
But if you had re-invested your dividends, your gain more than doubles to 880%! Talk about building a "wealth fortress"!

The 2 Commodities That Can Offer You Perpetual Income

Commodity companies have been making a fortune for their shareholders for years.
But what few investors realize is that the best way to profit from the ongoing commodity boom isn't the obvious one – of buying companies that produce or own the natural resources.
Rather, there are several "backdoor" commodity plays that I believe will be much more profitable in the months and years ahead.
(A backdoor play is a way of participating in a popular investment idea that few other people have thought of. It's covert. It attracts scant attention. The "investing herd" has no idea it exists. But it's the absolute best way to invest in a hot idea.)
Today, I'm going to share two of them with you.
The two companies are perfect for income-seeking investors, because they provide a constant stream of cash in the form of hefty dividends. This means you can receive checks in the mail every quarter – or even every month – while you sit back and watch your invested capital grow.
So let's get started...

Opportunity #1:The Oil Sands Story No One Is Telling

Canada's oil sands make up a gargantuan oil deposit in the western province of Alberta.
Trapped beneath the frozen tundra lies seven times more oil than Saudi Arabia's proven reserves... enough oil to last us 4,896 years.
It's not as cheap to produce oil from the oil sands as it is to pump it from conventional deposits. But as long as the international price for crude oil is more than $40 a barrel, it's profitable.
With oil prices around $100 a barrel, business in the Canadian oil sands is absolutely booming. More than $125 billion has been committed to projects in the area. That's 19 times the total U.S. investment in the alternative energy sector.
Of course, this probably isn't news to you. The huge boom in the Canadian oil sands has been widely reported in the press.
And it has made some investors very rich. Big companies like Suncor and Petro-Canada are up more than 1,000% since 2000.
But instead of buying into the obvious investment story that everyone already understands, I've got something much more interesting to tell you about...

The Absolute Best Way to Playthe Oil Sands Boom

Not many people realize this, but it takes huge quantities of natural gas to produce oil from the oil sands. Steam is used to separate the oil from the sand after the workers have dug it up from the ground. And to make that steam, you need natural gas... a thousand cubic feet of natural gas for every barrel of oil processed.
In other words, the Canadian oil-sands industry consumes about 1.1 billion cubic feet of natural gas every day. Of all the gas consumed in Canada every day, more than half of it is used to turn bitumen – oil sand – into oil.
Canada's National Energy Board says, "Natural gas requirements for the oil sands industry are projected to increase to 2.1 billion cubic feet (bcf) per day in 2015."
Currently, the area produces one million barrels of oil a day. Experts believe oil production in the region will quadruple over the next 18 years. That means demand for natural gas will multiply, too... probably to around 3 billion cubic feet per day by 2025.
Here's the thing... Up until now, the major oil companies have either produced their own natural gas or bought it straight from the main pipelines running across Canada.
But sourcing your own is a major pain in the neck. For starters, you have to find it. And it's usually located in some desolate corner of the frozen Canadian tundra.
Then you have to compress it on location and bring it back home in pipelines that could be several hundred miles long. All this work requires lots of heavy equipment, which must be dragged around western Canada, where there aren't many roads and the weather conditions are awful.
Do you really think the major oil companies operating in the oil sands want this hassle? I don't, especially given their ambitious plans in the oil sands.
The answer? Hire a specialist gas provider and secure long-term supplies. That specialist is
AltaGas (TSX: ALA-UN), my first backdoor oil recommendation.
AltaGas is a natural-gas transportation business. It has a fleet of 74 skid-mounted gas plants and compressor stations that it drags around the Canadian countryside.
It also owns a 6,000-kilometer pipeline network that brings gas from the wellheads in the field to the oil companies in the oil sands. AltaGas never owns the gas – it simply collects a fee every time someone wants to use its equipment.

Heading Full Speed into aNatural Gas Supply Crunch

Some investors get nervous about natural gas. But it's important to remember that the natural gas market is cyclical.
Take the current situation, for example. In 2005, natural gas prices rocketed to $15 per thousand cubic feet (mcf) – an astronomical rise. That led to a flood of investment in natural gas projects. By early 2006, the price of natural gas declined, undercutting many of those projects.
But the investment boom left so much infrastructure in the field, it seemed Alberta would never need another oil company, gas well, or pumping station again. Abnormal supplies pushed down prices.
That's about to change. Soon the market will face a deficit, and the whole cycle will repeat itself. Depressed stocks will be highfliers again. We need to get into this trend before the herd...
It looks to me like we're charging headlong into a supply crunch in the natural gas market... and that makes me very bullish on the price of natural gas. In fact, the market is already showing signs of perking up:

In sum, I think there's a good chance natural gas may rise above $10/mcf in the next 24 months. Although AltaGas never actually owns the natural gas, it will profit when higher prices stimulate drillers and explorers to start looking for more gas. More driller activity means more business for AltaGas.
Since AltaGas started business in 1994, it has increased net income every single quarter. Last year, AltaGas brought in C$115 million in net revenue from its combined businesses and paid out C$110 million in dividends. It has never reduced its dividend. Currently, the monthly dividend is 17.5 cents per share – an 8.5% yield.

Action to take: Buy AltaGas (ALA-UN.TO) below C$30.

Buying Canadian stocks is easy – and no riskier than buying American stocks. All good discount brokers can trade them. The fee structure may vary from regular U.S. stocks, but there won't be a big difference. You can trade Canadian stocks online, too. Just call up you broker and ask him for the correct symbol.AltaGas' symbol is ALA-UN.TO. But that's its symbol in Toronto. If you're buying AltaGas through an American broker, he'll give you its U.S. symbol. For AltaGas, that will probably be ATGFF.

Opportunity #2:Oil Patch Banking

The second income-producing commodity-related opportunity I'm excited about is closer to home. It is a predictable money-lending operation that will generate 22% this year from the Texas oil patch... pay no tax... and distribute 95% of its profit back to shareholders.

The company is NGP Capital Resources Company (Nasdaq: NGPC).

NGPC is going to generate an 8% dividend – with an additional 15% jump in the share price by the end of 2007. Beyond 2007, its average annual returns should settle down to around 20%, with 6.5% coming to you in dividends and 13.5% in price appreciation.
How can I be so accurate with my forecast? Suffice it to say, money lending is a very stable, predictable business... as long as people want to borrow.
Houston-based NGPC specializes in energy-patch money lending. All it does is provide financing to very small businesses in the oil patch... These companies are almost always private, fast-growing, and desperate for cash.
NGPC's loans range in size between $10 million and $50 million, and terms vary. NGPC is not subject to many of the limitations that govern traditional lending institutions, so it can be more flexible and close deals quickly.
We don't need to delve into the ins and outs of corporate finance in this report. All you need to know is that NGPC lends money to cash-dry energy companies at exorbitant interest rates.
And, there is very little risk associated with the loans because NGPC demands collateral, equity kickers (shares), and a senior position in the pecking order during liquidations.
NGPC only lends money to very small companies. This is a very important feature of its business for four reasons:

For starters, tiny companies don't have access to capital markets. They can't issue stock or bonds, and banks aren't interested. So they have a hard time borrowing money and accept high rates to get it.

Secondly, tiny companies grow fastest... Not only are small companies the most desperate companies in the market for cash, but they have the most to gain from a loan. So they'll pay any price to get it... sometimes as much as 20% in annual interest payments, plus a piece of the ownership.

Third, investing in small companies allows NGPC to spreads its portfolio over a large number of companies, sectors, industries, and geographical locations. Diversification is one of the secrets of the lending business. The more companies you hold, the more stable your returns become. NGPC has approximately 15 investments and considers companies in oil, gas, coal, electricity, transport, development, production, exploration, and pipelines.

Finally, tax is the best reason for investing in small companies. The U.S. government thinks small businesses are vital to the economy and gives huge tax breaks to companies that lend money to them. NGPC is one of these companies.
The official term for NGPC is a Business Development Company (BDC) that has elected to be treated as a Regulated Investment Company (RIC) instead of a corporation for tax purposes. As a result, NGPC doesn't have to pay any corporate tax.
In return for its tax exemption, NGPC must invest in a diversified portfolio of small companies and it must pay out at least 90% of its revenue to shareholders in the form of distributions.
I've already given you many reasons to like NGPC... but I saved the best until last:NGPC's management is the best in the business.
I could tell you about the deep Ivy League, Wall Street, and Big Oil footprint that's all over these guys' resumes. According to the CEO John Homier, "the seniors in our group probably bring together 70 or 80 years, if not more, of cumulative experience in the energy finance business."
But I have something far better: I contacted one of its competitors and asked him what he thought of NGPC's management team. His name is Rick Rule, founder of Global Resource Investments. Global Resources was one of the very few boutique investment firms that survived the 20-year-plus bear market in resource investing.
It's no exaggeration to say that Rick knows every single important executive in the resource business, because for years and years he was the only person in the world who could raise a significant amount of money for small resource companies like the sort NGPC deal with.
Rick gave them the perfect reference. He told me these guys are the best in the business and they're very, very good at what they do.

Action to take: Buy NGP Capital . This is Resources Company (Nasdaq: NGPC) below $16.50ery important: NGPC is a small company with a $270 million market cap. Do not chase this stock above $16.50. Use a trailing stop.