Editor's note: Last week [04/10/2008], "Doubling Stocks" editor Michael Cohen gave his subscribers a heads-up regarding what he called a "hot topic" stock pick that deserved attention: Vanguard Minerals Corporation [VNGM.OB]. According to Cohen -- with the help of Marl, "Doubling Stocks"'s customized stock-trading robot -- VNGM is still a great short-term pick, as well as being a good value play. This morning [04/17/2008], he re-recommended VNGM, noting that it's "the only stock I've ever chosen twice."By Michael Cohen
Editor, "Doubling Stocks"
Company: Vanguard Minerals Corporation [VNGM.OB]
Yahoo Finance: http://finance.yahoo.com/q?s=VNGM.OB
Company Websites: http://www.vanguardminerals.com/
I don't generally like to choose the same stock, let alone the same stock, twice in a row... But I really couldn't pass up what I believe will be easy profits again on VNGM.OB.
Last week, subscribers gained 69.56% in just under 8 days, on VNGM.OB ... And I've chosen the same stock again, for good reason...
Now, kick back and grab a cool one... As in this report, I'm about to explain the absolute best way to find a stock about to rocket in price.
So, what is the best type of investment opportunity? Here are some possibilities:
Possibility #1: This investment opportunity has a huge "upside potential," meaning it realistically could return 60 - 100% within the time scale.
Sounds good, huh? In fact, this is usually what I consider a "Doubling Stocks" pick to be. But, is there anything better?
Yep!
Possibility #2: This investment opportunity has a huge upside potential for gain -- again, a 60 - 100% return is realistic.
But, this time, the risk is very small. There is something in the investment that means you're only ever likely to lose a very small amount of your investment... And even this would only happen if things went really bad.
I like to characterize the second type of investment opportunity in a saying:
"Heads, I win; tails, I don't lose much!"
If you went to the horse track, and you were offered 90% odds of a 20 times return and a 10% chance of losing your money, would you take that bet? Heck, yes!
You'd likely want to make that bet all day long... And it would make sense to bet a very large amount -- or as much as you could comfortably afford -- with these spectacular odds.
It is a very low-risk, high-return bet: Heads, I win; tails, I don't lose much!
In horse racing, as you probably know, you are betting against other bettors, and the house takes a flat 17% as a fee. Therefore, "frictional costs" -- relative to the stock market -- are very high; i.e., the cost of getting in and out is high.
To be a consistent winner at the race track, a person has to overcome the staggering 17% frictional cost of placing a bet. And there are, in fact, a few who can, and who do, make their living this way.
Yet, they don't bet like the rest of us...
These guys watch all the horses and races, yet place no bets. Then, when they encounter widely misplaced odds [in their favor] on a horse about which they know a great deal, they bet heavily on that one horse in that one race.After that, they go back to watching the horses and races indefinitely -- with no bets placed until another good opportunity shows up.
What are they doing? They are looking for mispriced bets; e.g., a horse with a one-in-two chance of winning, which pays you three-to-one. They're looking for a mispriced gamble.
And, guess what? These happen in the stock market, too. They don't come about often, but when they do, there is certainly scope to make a lot more than our neighbors at the racetrack. Again...
"Heads, I win; tails, I don't lose much!"
You may think that what I've explained is far-fetched, and must only be an available opportunity once in a blue moon. But, there is man from Surrey [you know of him], and he has built a $7 billion fortune by using this strategy time and time again. His name is... Richard Branson.
Let's delve into the birth of Virgin Atlantic, and learn how to start any business with minimal capital.
Richard Branson started his entrepreneurial journey at 15, and was very successful in building an amazing music recording and distribution business.
Somebody then sent Branson a business plan about starting an all-business-class airline, flying between London and New York. He thought about this proposition all weekend and, on Monday, Branson went to meet his partners. They laughed off the idea, claiming it was ludicrous; just the plane alone would cost $200 million.
Branson persisted. He called directory inquiries to get the phone number for Boeing, and asked someone there if they had an old Boeing lying around. The guy said they did. After some persuasion, he gave out some ballpark figures, and agreed they could lease Branson a plane.
Branson then figured out his total outlay and maximum liability for starting Virgin Atlantic Airlines [if it failed] was just $2 million. [His record company was on track to profit $12 million that year.] Branson also figured he could hire a small ground staff, place a few ads in the paper, and start taking reservations.
Now, if someone came up with this idea in Silicon Valley, there would be a fancy business plan put together, and it would all be based on at least $60 million in start-up capital.
Branson did not go down this path. The "business plan" was done in a weekend and resided in Branson's head... And Virgin Atlantic went on to become a wildly successful business that made a profit of almost $100 million last year.
In 1999, Branson sold 49% of Virgin Atlantic for a figure that valued the entire business at £1.25bn. Over 10 years, his return on investment (ROI) has been amazingly high... So high, it would be unheard of on Wall Street.
Why? Because Richard Branson intrinsically builds his businesses and takes risks based on...
"Heads, I win; tails, I don't lose much!"
By now, you're likely thinking, "Look, Richard Branson has done very well; my hat's off to him. It's an entertaining story, but surely these kind of opportunities cannot be still around for little old me."
I'd be lying if I told you that these opportunities came up in the stock market every day. They just don't -- and even more so now, with the amount of analysts watching companies... Almost all wildly "mispriced bets" would be found and exploited [forcing the price upwards and closing the gap].
The reason I've brought this up is not just because I wanted to tell you one of my stock-picking secrets. It is also because VNGM.OB follows this "Heads I win, tails I don't lose much" principle. Let me explain...
Last week, VNGM rose from $0.46 to $0.78 -- a 69.56% again in just under 8 days. During this time, the stock formed a trading pattern: First, it rose upwards towards $0.55... It then swiftly dropped back down by $0.10 before rising again towards $0.78... Since then, the stock has dropped back to $0.60... for what I believe [and what Marl believes] will be another run in the stock price.
And I believe the effects of this technical trading pattern will be leveraged on the recent increased investor awareness of this stock...
You see, last week, VNGM.OB was trading on large amounts of volume. In other words, many investors were getting in and out, which is what formed the trading pattern Marl found... And, so, right now, we have a large amount of investors who have VNGM sitting at the top of their portfolio, watching its every move.
In my experience, this amplifies any situation if the stock starts to move up and the stock charts show a green arrow. Investors' interest will pique, and all those watching VNGM.OB have the opportunity to easily buy in -- for what looks like a repeat performance of last week.
Just look at the above stock chart for April 11. It clearly shows a pattern as it peaks, then falls back, then peaks again before falling back. This pattern was identified by Marl last week, and again this week.
However... This time, Marl issued an even stronger buy recommendation, because the pattern is trending towards what I believe [and what Marl believes] will be an even bigger gain.
So, how does this relate to the "Heads, I win; tails, I don't lose much" theory I told you about? Well, as a matter of fact, VNGM is an opportunity that follows this theory exactly.
I've just explained what I believe is the "Heads, I win" factor in this stock... And this is all Marl needed to give this pick a strong recommendation.
But what makes VNGM.OB so great, that I decided to choose it as a pick twice in a row? Of course, it is that, in my opinion, it has very small downside risk. And, so, it meets the "Tails, I don't lose much" criteria, too.
Again, let me explain...
I chose VNGM because it is a uranium company with an edge over others. They are situated in an area that allows for a very low cost of production. Plus, they are currently working hard to raise their profile with investors.
Since initially releasing the pick, VNGM management has reported a very important development: The company is planning to start exploration at a new site [Killock Bay], which will include:
* Compilation of historic geological, geophysical, geochemical and drilling data from government-assessment files;
* Helicopter-supported, property-scale boulder sampling and prospecting;
* Ground geophysics, data interpretation and target identification; and
* Possible drilling, if warranted.
If VNGM starts drilling at this site, it could see millions of dollars flood onto this small company's accounts. And if that did happen, it could send the stock price rocketing...
Now, naturally, I'm not pinning my hopes on this reserve being full of uranium. [That would be foolish.] But I believe that, just the fact this is a possibility, will support the stock price at these levels.
In other words...
If, as I believe and as Marl predicted, VNGM.OB follows its trading pattern and runs back upwards... Then "Heads, I win" -- you'd be able to make a good profit in just a week or two.
And I strongly believe this will happen. Marl predicted this same pattern last week, and it made lots of subscribers almost a 70% gain.
But, what really makes this pick great -- what makes it the 800-pound gorilla -- is that, even if this does not happen, VNGM.OB is a great value investment.
The company operates in an industry that is obviously directly linked to the price of uranium. And experts agree: Uranium is only likely to increase in price in the future, as more nuclear plants are built that require uranium.
Not only this, but the company is, in my opinion, massively undervalued -- even at these levels... And these value factors will support the stock's price, even if the technical aspect does not come true.
Therefore, VNGM is a classic case of:
"Heads, I win; tails, I don't lose much!"
It is the same stock, following the same trading pattern that made investors huge profits just last week... And, as I noted, I believe VNGM's stock price is very likely to slowly [but aggressively] run upwards over the next coming week or two weeks...
Which could, I believe, allow you to easily double your money.
Best Regards,
Michael Cohen
P.S.: As, in my opinion, VNGM.OB is an obvious "mispriced bet," it is very time-sensitive. If you're reading this more than 24 hours after it was distributed, please don't even bother.
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