Dear Reader,
In 1939, a decade after the Crash of '29, stocks were given up for dead.
The Great Depression left many of America's best businesses on the verge of bankruptcy and investors sold everything they could.
Things were so dire that 104 companies on the New York Stock Exchange were trading for less than $1.
And these weren't penny stocks, they were the great American companies that, just a few years before, were the most valuable in the world.
At the time, John Templeton – a Rhodes Scholar and Yale graduate – was traveling through Europe when he realized another global war was brewing.
A war he believed would unleash an unprecedented economic rebound for American industry.
Returning home, he borrowed $10,000 and told his broker to buy equal amounts of every single stock trading below $1 – including 34 firms that were in bankruptcy.
Most notable of his investments was the preferred shares of a railroad company trading at only $0.12.
His prediction of another global war, of course, proved correct… as did his prediction that it would send the U.S economy roaring back to life.
As these near-bankrupt companies boomed, Templeton made a fortune. It was arguably one of the greatest investments in the history of finance, with many of the stocks surging in value.
That 12-cent railroad company?
It soared to a staggering $60 per share – an almost 50,000% return.
But could Templeton get any other investors to join him in 1939? No. Not a single one.
And that brings us to today...
You see, right now, an almost identical situation has emerged whereby an entire sector is trading for a fraction of its value – many of the companies are even cheaper than Templeton's $1 "dogs."
Hundreds of companies in one sector are now "net-nets."
This means they are trading for less than their current assets… and in many cases for less than the cash they have in the bank.
In other words, you could literally buy any one of them outright, pay off their debt, shut them down, and still walk away with more money than you had before.
This isn't supposed to happen. In a normal environment, a company's cash reserves should never be higher than its total market value. It's completely backwards.
But that's exactly the situation we're in right now.
These aren't penny stocks that belong in the trash. Like Templeton's "dogs," these are high-quality companies developing some of the most important products in the world.
While many of them will fail, for those that survive, I believe returns to the tune of hundreds, potentially even thousands, of percent are up for grabs…
When all is said and done, I believe those who take advantage of this rare situation could potentially amass a lifetime of financial returns in a matter of months or years.
Yet nobody is telling you about it. That ends tomorrow though.
Every day this week, I'm going to sit down each morning and write an email (like this one) that brings you up to speed on what's going on - and why I believe it's the most important story of 2024.
To get your name on the distribution list for this special series (it costs nothing), go here now.
I'll talk to you tomorrow.
Regards,
Porter Stansberry
This ad is sent on behalf of Porter & Co., 1001 Cathedral Street, Fourth Floor Baltimore, Maryland 21201.
If you're not interested in this opportunity, please click unsubscribe below and remove yourself from these offers. | 
No comments:
Post a Comment