Thursday, February 08, 2007

SUF

Today's Guest Blogger is Jon Anderson, who I have been fortunate enough to have met through this Blog and who is an avid participant in our world of stock trading. Jon describes himself as, "a war correspondent-turned-daytrader," which does seem to make sense, in the karma of the markets.




A little less than a year ago, Sulphco, Inc (ticker: SUF; website: http://www.sulphco.com) was a $12 stock flying high on the prayer and the promise of new ultrasound technology that would turn heavy crude oil into light sweet. While the promises remain, prayers have done little in the months since to prevent a steady to slide to $2.25 just a few weeks ago. The reasons are predictable enough. A fair share of bad press, pushed deadlines, and heavy shorting certainly hasn’t helped. And even die-hard longs have described original inventor/chairman/CEO Dr. Rudolph W. Gunnerman as a mad genius, frenzied and Edison-like in the lab, but without the innovator’s business sense or savvy. Some critics call the company nothing more than an elaborate scam and their arguments are at times compelling.

And yet…

After bottoming out Jan 22, SUF has rebounded with a vengeance. Eight days after hitting a new 52-week low it captured the number one percentage gainer on Amex garnering more than a 25 percent increase. The reasons again seem straight forward enough. A shake up on the board appears to have instilled new confidence in both the promises and the prayers. Gunnerman has been pushed out in a boardroom coup, replaced by a GE PhD heavyweight in the CEO’s office and an investment fund greybeard in the chairman’s seat. Meanwhile, even the bashers are having a tough time dismissing the new Sulphco refinery now being completed in UAE.

The new leadership team concedes there are still technical hurdles to overcome, but in their first conference call last week – hailed even by critics as refreshingly forthcoming – insisted solutions were within a few weeks’ range. Its climb unfazed by a weekend slam job in Barrons, today SUF crossed the $4 mark, up more than 6 percent from yesterday’s close. And this on no apparent news. Meanwhile, 8 million shares are sitting short, still largely uncovered.

If SUF can see a 77 percent increase in three weeks with just a management shake up and a conference call, what would it take to return it to double digit prices? Surely more than just prayers and promises, but it certainly seems to be heading in the right direction.

3 comments:

Greg Reiman said...

Hype-Pop-Scalp prospect for Friday 2/9

I believe the company discussed below is CTO

Greg Reiman

February 08, 2007

Dear Reader,

Dan Ferris, analyst for Extreme Value, broke his vow of silence today.

He stopped his research to send this advance alert. You see, recent developments are about to send one of his recommendations soaring.

It's already made his subscribers 192%. But recently, the company made a mind-blowing 91,000% profit... and still no professional analyst noticed. Nobody on Wall Street has covered it.

Dan believes this is a short window of opportunity, and is releasing his full report tomorrow in his next issue of Extreme Value.

If you're interested in what he has to say, read his advance notice below. This may be your only chance to take advantage of the situation...

Sincerely,

George Rayburn
Publisher, Stansberry & Associates Research



--------------------------------



A Stock Manipulator’s Perfectly Legal Secret to Double Your Money in the Next 12 Months

By Dan Ferris
Analyst for Extreme Value

Dear Reader,

I don’t usually write letters like this one.

But recently a major development in my Extreme Value portfolio has prompted me to do so.

I first recommended this stock four years ago. And it’s gained 192% since then. I’m not writing to brag, but to alert you to the two major situations that are about to send the stock soaring even higher.

In short, you can make an easy double on your investment in one of the safest investments around.

Most investors aren’t paying attention to it now. The news I’m about to tell you is still pretty much unknown. No analyst covers the stock. Nobody on Wall Street follows it.

The company I’m talking about is one of the largest land holders in Florida. It’s been around since 1902, and owns 11,250 acres of prime Florida land. Because of this, it’s in a unique position to profit while its competitors don’t.

Reason: This company makes enormous profits because it bought its properties a 100 years ago at $125 an acre – was holding the land for free – And today it’s selling those properties for $114,000 an acre.

For the company, that’s a 91,000% tax-free gain! And my readers already made 192% since I recommended it four years ago.

But the company still has a lot of land to sell. And now its shares are about to double again.

You see, other companies can’t compete with it. They can’t buy land at the price this company did. And demand is growing fast.

Even today, with softening real estate prices across the rest of the U.S., Florida has the fastest growing population in the U.S.

According to the U.S. Census Bureau, 1,000 people move there each day!

It’s the number one destination for retiring baby boomers.

As a result, the Florida government is desperate to make more highways... build more schools, hospitals... and attract more businesses.

This brings me to the first important situation I told you about:

The company I mentioned has just allowed the government to start building five major thoroughfares through its properties... and afterwards to build two hospitals.

Because of this, the company is now selling more of its land at enormous profits, and turning other land into income properties... distributing those profits in dividends.

It already has some of the most creditworthy, and reliable businesses to collect from. Including many locations of Lowe’s, Walgreens, Barnes & Nobles, CVS pharmacy, Best Buy ... as well as two LPGA championship golf courses.

In addition to this, the second situation that’ll make you money is the recent rush of insider buying.

One investor, Douglas Wheatley, personally made 53 separate purchases totaling over $33 million – and he’s now become the company’s largest shareholder.

I mention Wheatley because of the way he invests. He doesn’t wait and pray for a stock to go up like other investors.

Instead, he makes the stock price go up!

Let me show you how he’s done it so you see what I’m talking about...

In April 2005 Wheatley came across Potlatch, a paper company. The business had enormous forest reserves, but it wasn’t using them efficiently.

Wheatley knew if he helped management convert the company into a REIT (Real Estate Investment Trust), it could make enormous profits. And it would pay 90% of these profits to shareholders. (Companies that are REITs get special tax breaks, and in return, are required by law to pass 90% of their income to shareholders.)

So Wheatley bought enough stock to be the biggest shareholder, and persuaded the company to streamline its business. As a result, the company paid out a huge $15.15 dividend.

He did a similar thing with a media company called Meredith.

Half the company was making enormous profits, while the other half was floundering. So once again he bought enough stock to become one of the largest shareholders, and got management to split up the magazine and broadcasting groups.

As a result, the company's stock took off from $30 to $50... Wheatley and other shareholders walked away with a quick 67% profit.

You can see the pattern here...

Wheatley finds a high quality company and buys enough shares to become the biggest shareholder.

It seems Wheatley can squeeze profits out of a company in any market.

Remember the Crash of 2000? Everybody lost money.

But Wheatley didn’t. In fact, he made 61% during that time using his hands-on strategy.

This time is no different. And I’m convinced the biggest gains are still ahead.

If this kind of opportunity interests you, I urge you to look at my latest report on the situation released this Friday.

Let me quickly tell you about my research service so you can decide now...

The Secret of Picking Safe Companies
With Extreme Value

It’s because of our “extreme value” approach that the Extreme Value portfolio has delivered a 53% average gain for the past 4 years. Enough to turn a $5,000 stake in each of my picks since 2002 into $191,969 (as of Jan. 2007)...

And it’s also why 34 of our 36 current Extreme Value stocks have gone up in value. In fact, our average open gain is 58% (as of Jan. 2007).

My readers have seen gains of...

123% on Gateway (GTW)
110.6% on Blair (BL)
98% on Consolidated Tomoka (CTO)
97.6% on Circuit City (CC)
94.7% on JAKKs Pacific (JAKK), just to name a few.
What is an “Extreme Value” situation? Let me show you...

A few years ago, I flew to the island of Maui, rented a car, and toured 37,000 acres of sugarcane fields owned by a company called Alexander & Baldwin.

Afterward, I went to the Maui County Real Property Assessment Division – where I found 242 tax records filed under Alexander & Baldwin’s name. What I discovered was remarkable...

The real assets owned by the company were selling on the stock market for a fraction of what they really cost.

Specifically: The company owns 90,600 acres of Hawaiian land, most of it on the islands of Maui and Kauai. But I discovered that almost all of it is carried on the company’s books at its original average cost of just $150 an acre. Today, some of that land is worth in excess of $1 million per acre.

That’s an “Extreme Value” situation... the same kind of situation as the Florida company I told you about.

(Prices below as of Jan. 2007...)

I immediately recommended this rarely publicized company to my group of Extreme Value readers... since then, the stock is up 134%, with a long way yet to go before it reaches full value.

Here’s another example: I once spent an entire week analyzing 2,901 different companies. I discovered a company called KHD Humboldt Wedag, that owns a royalty interest in a massive, extremely undervalued iron-ore mine in Newfoundland.
Today, readers who followed my recommendation to buy this company have seen gains of 211%.

That same week, after meeting with the manager of an exclusive asset management firm focused on high-net worth individuals, I discovered another “Extreme Value” investment situation – a company called American Real Estate Partners, that owns a chain of hotels and resorts.
So far, my readers have seen 409% gains on this company.

A month later, by gaining quick access to a fund’s holdings run by one of the most recognized managers in the world, I found a company called EnCana Corp., which owns over 25 million acres of oil-rich land selling at $30 less per share than what the stock was actually worth.
I wrote to my readers about this oil-drilling company immediately, and those who bought shares have made 127% gains.

All three of these situations are what I call an “Extreme Value” play, because the company’s assets are worth considerably more than its share price...

In other words – When you buy “Extreme Value” investments, you’re buying the safest, cheapest stocks in the entire market. Every investment has a built in safety net – because the assets the company owns are worth more than the stock price!

The Florida company I told you about has bought into is exactly this kind of investment.

If this sounds like the kind of investment you’re interested in, here’s what I recommend you do...

The Only Proven Way to Get Rich
in the Stock Market

I’m the editor and analyst of Extreme Value, an investment advisory that focuses on the safest, cheapest stocks in the market – “value” situations like the one I’ve been telling you about.

If you are interested in getting the full details on the investment idea I’ve told you about here, I encourage you to try a subscription to Extreme Value.

On Friday, February the 9th, I’ll publish the full details on the newest development in the Florida company… and how you could double your money from this “extreme value” situation.

If you’ve never heard of the “extreme value” strategy before, I’m not surprised. Most people haven’t...

But we’ve been using this strategy for the past 4 years to find the absolute best, safest, most overlooked “value” investment situations in the world, for a small group of in-the-know investors...

The truth is – it’s the only proven way to really get rich in the stock market. This investment strategy has been used by the most well-known, successful investors in the world... including Warren Buffett of Berkshire Hathaway (the 2nd richest man in the world, according to Forbes) and the late William Ruane ($10,000 in his Sequoia Fund at inception would be worth $1.7 million today).

Let me tell you about another extreme-valued play I uncovered recently...

A Safe, Easy Way to Profit from Oil

California has a secret new oil supply...

And it’s located in downtown Los Angeles.

Here, hidden beneath 900 acres of land off La Cienega Boulevard, is an oil field so deep it produces enough crude oil to fill the tanks of 5,500 SUVs every day – based on a recent estimate reported in The Los Angeles Times.

In all, there’s 688 MILLION barrels of oil. Untapped. Right in the middle of downtown Los Angeles.

If you happen to live or work in Los Angeles, you may have already heard about this unusual situation...

But what you may not know is that one small oil-drilling company owns all the rights to this field, including the “X-ray”-style 3D technology that now makes it possible to extract about 200 million barrels successfully.

Full-scale drilling has now begun beyond the shallow test zones and into the deeper oil (already yielding 6,900 barrels of crude oil a day).

Bottom-line: One of the biggest secret oil discoveries in California is about to make a tiny oil-drilling company very big, very fast.

If the company extracts just one-third of the potential oil in the ground, its total revenue should expand by a factor of 18 – making it a multibillion-dollar outfit.
If you’re a shareholder when the full story hits the mainstream press over the next few months, you could make a fortune...

In my recent Research Report called The Los Angeles Oil Discovery, I tell you everything I learned about this oil discovery at a private meeting I attended in Los Angeles... and how a small stake today could make you 350% gains.

Best of all, when you take a trial subscription to Extreme Value, you'll get a copy of The Los Angeles Oil Discovery, absolutely free.

Let me tell you a little more about “Extreme Value” investing, so you can decide if you want to have a look at our work...

How to Beat the Stock Market by 189%

After four years, we’ve learned that the “Extreme Value” strategy offers the single best, safest way to make money. As I mentioned earlier, as of January 2007:

Our Extreme Value portfolio has delivered a 53% average gain for the past 4 years– turning a $5,000 stake in each of our picks since 2002 into a possible $191,969 (as of Jan. 2007) ...

Put simply: When you buy extreme-valued investments, you’re buying the safest and most profitable stocks in the entire market.

This was proven in several studies – most notably in a 1992 study in The Journal of Finance, the most respected journal in its field.

The study was done by two well-known economists, Ken French and Eugene Fama (nominated for a Nobel Prize in Economics), who studied the prices and performance of every stock on the NYSE, the American Stock Exchange, and the Nasdaq from mid-1963 through 1990.

What they found was incredible...

The economists discovered that the cheapest 10% of stocks – “value” stocks that trade at a discount to their total assets – returned an average of 21.4% each year, for over 24 years.

This study also found that these kinds of safe, cheap stocks brought 189% higher returns per year than the markets – performing especially well during bear markets. Riskier, more expensive “growth” stocks, in the same time period, returned just 8%.

This proved that Value Stocks – the cheapest 10% of all stocks – make the most money in the stock market. Take a look:



But these two well-known economists weren’t the only researchers who studied why this investment strategy has been so successful...

Forbes magazine has investigated it as well, reporting that: “Since 1965, [value stocks] have appreciated 13,315%, versus an increase of 767% for the Dow Jones industrial average.”

But I have a confession...

Please Be Advised:

Extreme Value may not be right for you.

It’s not for the average person.

My Extreme Value readers tend to be hands-off, patient folks who want to invest for the long term... and expect staggering returns as a result.

In the majority of cases, that means you could be putting your money into a company your broker may not know about... with little-to-no coverage on Wall Street... and then forgetting about it for months at a time...

For example: Back in 2002, I wrote about a small Pennsylvania-based company called Blair, that sells women’s apparel. Nobody had ever heard of it... But I determined that Blair offered one of the best-discounted stocks on the market...

Readers who held their nose and bought shares of this “boring” company could have more than doubled their money, for a 110.6% gain.

The point is – if you’re looking for the “next hot trend” or hot new technology, I can tell you right now: Extreme Value is not for you.

That said, the companies we add to the Extreme Value portfolio all have one thing in common: If you get in early, they should all double or even triple your money – with extremely low risk.

But how can you be sure Extreme Value is right for you? Here’s what I propose...

3 Months, 100% No Risk

If you’re interested in becoming a member of Extreme Value, I’d like to let you try it out first – risk-free – for three months.

That means you can learn all the details about the Florida land company I mentioned earlier and the Los Angeles oil discovery, and still have a total of three months to decide if you’d like to remain a member of our Extreme Value group.

If you decide that Extreme Value is not for you, simply contact us by phone, e-mail, or regular mail, and you’ll receive a full refund, no questions asked.

Even if you wait until the very last day of your three-month trial to cancel, you’ll still receive 100% of your money back if you’re not happy with our research. And my Research Reports are yours to keep, and use, as you please.

For that matter, once your three-month trial period is over, you can still receive a refund on the unused portion of your subscription if you’re unhappy.

When you give Extreme Value a no-risk trial today, here’s what you’ll receive:

The February 2007 issue of Extreme Value, released by Friday evening on February 9th, which details our most recent Extreme Value play in full detail.

Research Report: The Los Angeles Oil Discovery

12 Monthly Extreme Value Newsletter reports on the single most outstanding value investment opportunity available, delivered on the second Friday of each month. You’ll receive a copy first by e-mail, then by regular mail too.

Regular e-mail updates on our investment portfolio.

Instant online access to our full 4-year archive of research – where you’ll learn all the details on 15 super-safe and potentially very lucrative Extreme Value stocks I still consider a Strong Buy.

How much does one year of Extreme Value cost?

Before I give you all of the specifics, let me tell you about an extreme-valued Blue Chip stock that one could make you 100% gains in 18 months...

The Best Place to Put Your Money
for the Next 10 Years

Most investors know about the greatest extreme-value Blue Chip in America.

Fortune magazine says: “[It has] changed the world.”

Century Management founder and president Arnold Van Den Berg says, “It’s an amazing situation.”

Time magazine, BusinessWeek, PC magazine, The Wall Street Journal, and The New York Times have all profiled this company recently.

It’s not hard to see why...

Just consider the list of clients who have already made deals with this firm, to use their technology:

The U.S. Government (most recent deal took place on July 13, 2006)


IBM (one of the world’s biggest information technology companies – $88 billion in revenue last year)


Dell (PC giant – $57 billion in revenue)


Intel (world’s leading producer of semiconductor chips – $37 billion in revenue last year)
Even more amazing is how fast this company has grown...

Just by offering stock options, this innovative tech outfit has turned 3,000 of its employees – regular Joes who work from 9 to 5 – into millionaires.

I’ve been researching this company for the past 4 months. And I told my readers in a recent Special Report:

My advice to you is simple. BUY [this investment] with as much money as you can spare, and then forget about it. When you get some more money, buy more. I think you could buy this company and totally forget about investing for at least 5 years, and longer. It should beat inflation, maintain its value, and continue to outperform all the competition for decades to come.

Everything you need to know about this company is included in a Special Report called The Blue Chip Portfolio.

Best of all, you’ll receive this new research free of charge when you give Extreme Value a no-risk trial today. As you’ll see, this Special Report also includes reports on 5 other outstanding blue chip stocks – written by True Wealth editor Dr. Steve Sjuggerud and S&A Investment Research founder Porter Stansberry.

So how much does a one-year subscription to Extreme Value cost?

Let me make something clear...

As part of our research, we subscribe to 23 different publications and services – including The Wall Street Journal... Barron’s... Grant’s... SmartMoney... Outstanding Investor Digest... Los Angeles Business Journal... Technology Review... Value Investor Insight... Fortune... Forbes... Schiff’s Insurance Observer... and Spin-off Advisors’ Spin-off Research...

You name it, I probably read it.

It costs us $26,000 a year for all this material.

I spend even more attending private investment conferences – such as Grant’s Interest Rate Observer... Schiff’s Insurance Observer... and the Value Investing Congress, to name a few.

I travel extensively... When we wanted to research alternative energy a while back, I visited research labs and company headquarters all over the Northwest... in Washington, Oregon, Idaho, and California...

I meet with people like Mohnish Pabrai (an investment manager whose fund has grown from $1 million to $218 million and was featured in Forbes magazine as having out-performed Warren Buffett for four straight years. “I read Extreme Value every month,” he told us recently).

Of course, all this research is what makes my job exciting...

... but also very expensive, month after month, and year after year.

So Extreme Value isn’t cheap. But then, this isn’t just another $99 newsletter written by a stock-picker who sits behind his computer clicking a mouse all day...

If that’s what you’re looking for, I’ll tell you again: Extreme Value is probably not for you. I’m only interested in researching the kind of little-known investment opportunities you're unlikely to hear about anywhere else... companies that could help you put your kids through college... pay for retirement... or buy a vacation home.

And as you might expect, finding those companies is why I spend so much time and energy in this research.

Extreme Value costs $1,000 for one full year.

Is the price worth it? I think so... Think of it this way: Investors pay hedge fund managers tens of thousands of dollars to get a 15% to 20% return in a year.

You can pay a fraction of that amount – and get recommendations that make gains of, on average, over 50%.

And my Extreme Value readers agree...

“Is Extreme Value worth the $1,000 subscription price?” asked a potential subscriber on our online message board recently. “I am on a limited investment budget.”

Another paid-up subscriber wrote back...

“Extreme Value is willing to do the digging and analysis that no one else I've ever read is willing to do. [Dan’s] picks comprise a "gone fishing" portfolio in itself. The [recommendations] possess so much value, and have already done so well, that I hope to pass them on to my children, should I never have a reason to sell them.

“Is it worth $1,000? That’s your call, but my subscription paid for itself handily. Hope this helps.”

When you give Extreme Value a no-risk trial today, you’ll receive:

The February 2007 issue of Extreme Value, released on Friday, February 9th, which details our most recent Extreme Value play in full detail.

Research Report #1: The Los Angeles Oil Discovery

Research Report #2: The Blue Chip Portfolio

12 Monthly Extreme Value Newsletter reports, delivered on the second Friday of each month. You’ll receive a copy first by e-mail, then by regular mail too.
Regular e-mail updates on our investment portfolio.

Instant online access to our full 4-year archive of research.

** SPECIAL BONUS**: By taking advantage of this online offer, we’ll also send you a copy of our limited-edition Extreme Value Owner’s Manual... 19 chapters of tips, strategies and stories that can make you a better investor, very quickly. Your Extreme Value Owner’s Manual will show you:

How to identify the safest, surest profits in the market (page 31).


3 secret words that will help ensure you’ll never, ever lose money (page 9).


The five golden keys to finding the perfect investment (page 14).


The most important thing to look for when you buy a stock (page 20).
It comes down to this: If you’re looking for safe, outstanding investments that can protect and grow your retirement money, Extreme Value may be exactly what you’ve been looking for.

I encourage you to get started today. Remember, you’ll get three months to try Extreme Value out on your own... You’ll have our Research Reports, portfolio, 4-year archive, and latest issues to help you make your decision.

To get started, click here.

Sincerely,

Dan Ferris
Editor and Lead Analyst, Extreme Value

Ali said...

Allan,

The guest blogger idea is cool. Jon Anderson's write-up is a good read and makes sense. Won't be buying any SUF myself, though, due to the Shariah's restriction on buying shares with a debt/equity ratio higher than .5

A friend pointed me towards USXP and the 1.2 billion shares exchaged today:

As of my writing this post USXP's website says that first call initiated a Strong Buy for USXP today with a target price of $26. Thursday's closing price: $0.002
Is this for real???
http://www.usxp.com/companies/universal/pr/pr.asp?prtitle=Universal+Express+Announces+First+Call+Recommends+USXP+as+Strong+Buy

no way!!----> http://ragingbull.quote.com/mboard/boards.cgi?board=USXP&read=509860
http://ragingbull.quote.com/mboard/boards.cgi?board=USXP&read=509824
http://ragingbull.quote.com/mboard/boards.cgi?board=USXP&read=509823

what is going on here?

Have a good weekend, Allan

Oh yeah, PTSC's been getting some good action.

al-Husein N. Madhany said...

This is a response to Ali...from a Raging Bull post:

[start quote]

While typing this up, "Glenn" from Thompson called me back with the story:

The First Call 0.08/share EPS and $26 target was for a different stock:

XPRSA -- US Xpress Enterprises
http://finance.yahoo.com/q?s=xprsa&x=0&y=0

CNBC apparently mapped the report incorrectly to USXP.

[end quote]

-anm