Next week, Im off to Thailand, the first leg on a trip that should include Hong Kong, Singapore, Laos, China and India.
The first time I was there a few years ago, it was to attend a conference, and I shuttled back and forth in a tuk-tuk, the most available mode of transportation in Bangkok.
This time, Ill be shuttling from city to city with local airlines. And I have a much bigger mission: To visit some of Seans favorite small-cap natural resource companies in the region.
Asia is becoming an investors treasure chest: Over two billion new capitalists … hundreds of new billionaires … and major fortunes to be made by U.S. investors.
In Hong Kong, the multibillionaire Li Ka-shing ranks number ten on Forbes list of the worlds richest. He made his billions mostly from real estate, but also from timber, oil, rice, sugar cane, and rubber plantations.
In Taiwan, Y.C. Wang made his fortune in plastics, chemicals and natural resources like plywood and lumber.
In India, iron and steel tycoon Lakshmi Mittal is the richest of the three, with over $25 billion in net worth.
And everywhere, billionaires like these are on the cutting edge of Asias natural resource boom. They see Asias massive populations joining the modern economy with fervent dreams for a better life. And they see the pressing demand for dwindling supplies of virtually every resource under the sun.
In a few moments, Ill show you how to hitch a ride to build your own riches. But first, let me show you some examples of the unusual natural resource plays now available in Asia …
Asian Miner With $14 Billion of Metal
Trading for as Little as 14 Cents on the
Dollar. Potential Gains: 583%
This miner is in China, Thailand, Laos, and Australia, and its properties are loaded with gold, silver, copper and zinc.
Net profit in 2005: $80.3 million.
It sits on an estimated 8.4 million ounces of gold, 100.4 million ounces of silver, 3.8 million tons of copper and 1 million tons of zinc.
Thats a heck of a lot of metal all in huge demand, all being gobbled up by Asias hungry tigers and giants.
Combined value of its metal at current market prices: At least $14 billion.
Companys market cap: Only two billion, or about one-seventh the value of its metal!
Put another way, its assets in the ground are valued at about 14 cents on the dollar.
This is a miner that can help feed Indias and Chinas booming need for gold, silver, copper, and zinc. Its mines are ideally located to deliver the goods. Just its copper alone is worth more than the companys total value. And its 3.8 million tons of copper can certainly go a long way toward providing miles and miles of copper plumbing and wiring for China and India.
China is even more desperate for zinc. It used to be a major exporter of the metal. But not any more! China is now a net importer, and this companys huge reserves of zinc plug in very neatly to Chinas needs.
My view: This is a $3 stock whose share price could hit $18 in the next couple of years. A modest investment of say $2,000 could be worth up to $12,000.
Dont hold me to it, though. This company is so cheap, I would not be surprised to see a major mining company jump in and scoop it up very soon. If that happens, all bets are off. It may not reach $18, but you could see your payoff a heck of a lot sooner, which I dont think youd mind very much.
Another Asian-based resource play were looking at is a …
Australian Miner Producing 4.6
Million Pounds of Uranium a Year
A while back, I scaled one of Australias mountains. From its peak, I could readily see the vastness of its resource riches. And I knew wed be looking at Australia more seriously in the future.
Today, that future has arrived.
Australia has a whopping one third of the worlds uranium, and its now getting ready to feed the massive nuclear energy booms in Asia.
Just in the next 15 years, China and India are going to build over sixty nuclear energy reactors, creating a huge new demand for uranium. And we know of no other company better positioned to supply the uranium than a small cap company Sean has picked out in Australia.
Think about it: If youre a miner with great uranium properties, wouldnt you like to be near the two countries with the most ambitious nuclear energy plans in the world?
Thats the huge strategic advantage this company has. It can produce at least 4.6 million pounds of uranium per year. And its right on the doorstep of Asia.
Just this past week, its share price jumped over 6% in a single day. Reason: China is about to cut a new deal with Australian companies to provide it with uranium, and this company should be a hands down winner to get a big chunk of Chinas orders.
Another huge boost to this companys shares: Uranium prices are soaring up 76% last year and another 7.6% so far this year. So select uranium miners like this one are red-hot.
Most amazingly, the stock is still cheap. Its trading for about the cost of a cup of Starbucks coffee. And over the next two or three years, we think it could easily quadruple your money.
$6.4 BILLION of Copper and Gold
At the Northern Gates of China
One of the most appetizing companies weve ever seen is right in the heart of the Gobi Desert, just to the north of China, loaded with copper and gold.
Take a look at the value here. It will knock your socks off …
A. The companys market cap is a mere $149 million. But our conservative estimate of its metal assets is $5.28 billion for the copper, and $1.12 billion for its gold. Thats a combined $6.40 billion of metal.
So based on the market value of the companys shares, its metal in the ground is valued at only two cents on the dollar.
B. The company has low debt, plenty of cash and current assets on hand over $41 for each dollar of current liabilities.
C. Its properties are next to a hugely successful mining company whose share price has already doubled in the past year.
D. One of the largest mining companies in the world is looking to take a stake in the company.
Our view: This is a home run in the making: a grossly undervalued copper and gold miner on the northern gates of China, the worlds biggest consumers of natural resources.
If the value of the metal rises to just 20 cents on the dollar still conservative then this companys share price could rise as much as ten fold. A modest $2,000 investment could turn into as much as $20,000.
This Is Just a Sample of the
Huge Leverage in Asian Small-
and Medium-Sized Companies
The billionaires I told you about are making new fortunes by meeting the natural resource needs of Asias red-hot economies.
You could do the same by investing in these kinds of small-cap and medium-sized companies with huge leverage.
Are profits guaranteed? Of course not. As with any investment, you CAN lose money. But we feel you have three things going for you right now …
FIRST, all of our indicators are signaling that the next phase of the natural resource boom is just in its beginning stages. So from a timing perspective, youre right at the starting gate of a big new round of profits.
SECOND, Asias economic growth is not a one-shot deal. Its continuing long into the future. China will grow at over 9% GDP again this year, and for as far as the eye can see. India is set to grow at 7% to 8%. Then theres Thailand, Singapore, Vietnam, Malaysia and others all growing rapidly, all benefiting from the rise of China and India.
THIRD, the stocks were looking at give you extraordinary upside leverage. They give you all the advantages of options but without the disadvantages of expiring.
Like options, theres no obligation beyond your initial small investment in these shares, plus any commissions you pay your broker.
Like most options, theyre very cheap, selling for as little as $1 per share and giving you huge leverage.
But unlike options, theres no expiration date. You can hold them as long as you want. And no one can place a time limit on your opportunity.
When These Shares
Take Off, They Fly!
For example …
Australian gold-and-nickel prospector Cazaly Resources saw its shares jump 731% at the same time, the shares of South Koreas Koram Steel soared 434% and Japans Toho Titanium saw its shares go ballistic 1,421%.
In fact, if you had invested $2,000 in each of these three stocks ($6,000 in all), your investment could have turned into as much as $57,720!
You cant go back in time to grab those gains, and nor can we.
But two weeks from today, Sean will be recommending his favorite small-cap natural resource stocks in a brand new service hes launching, Red-Hot Asian Tigers.
When you join Red-Hot Asian Tigers, we will immediately send you the Operating Manual, designed to give you a broad understanding of the big picture plus all the specific details you need to help maximize your chances for success.
NEXT, youll get our picks of the hottest, most undervalued, natural resource companies based in Asia or feeding the Asian resource boom.
Many of them will be small cap stocks with the potential to quadruple or quintuple your money. Others will be mid-caps, aiming for doubles and triples, which I dont think youll mind too much.
THIRD, youll get everything you need to know about the companies, including our reports from on-site visits to their offices and properties when we travel to meet with them.
FOURTH, youll get occasional special opportunities larger companies we feel could pop any second, and give you nice profit potential over a few weeks time.
Thats an extra bonus in addition to the core portfolio which is designed to help you take a small hoard of cash and turn it into a mountain of profits, like turning $6,000 into gains of $34,000 or even more.
FIFTH, you get a
3-Year Subscription
For The Price of One
We feel three years is a good time frame to maximize the profit potential in these Red-Hot Asian Tigers.
Rome wasnt built in a day. The profits from Red-Hot Asian Tigers could be huge, but they also wont come overnight.
At the same time, we also know that three years can be a big commitment. So heres what weve decided to do …
Join now at the regular rate of $5,000 per year, and get TWO additional years free! You save $10,000 off a normal three-year subscription rate!
And of course, you get our iron-clad guarantee: If youre not satisfied with the service for whatever reason you can write us at any time and cancel. We will immediately give you a refund on the pro-rated amount of your subscription.
Your Downside Is Strictly Limited.
Your Upside Profit Potential Is Not.
Many of the red-hot Asian tigers are dirt-cheap. That, in itself, helps to reduce your downside risk. The smaller the amount invested, the smaller amount you have at risk.
Youre getting a three-year subscription for the price of one, another huge reduction in your outlay.
Most important, youre getting tremendous profit potential so much so that your initial recommendations alone could pay for the entire cost of the service. For example …
- The diversified Asian metals miner trading for as little as 14 cents on the dollar. Potential Gains: 583%.
- 6.6 billion pounds of copper and 3.2 million ounces of gold in on the doorstep of China, valued at just 2 cents on the dollar! Potential Gains: Up to 1,000%.
- A red-hot uranium stock that could quintuple your money.
Thats just three companies were looking to recommend when we launch the service two weeks from now! And there are many more like these.
But if you want to participate in the profit potential of Red-Hot Asian Tigers, please be aware that there are two essential limitations to this service:
Limitation #1. The service is capped at 500 members. Theres no room for a crowd of investors piling into the shares of these small companies all at once.
Limitation #2. As I mentioned previously, the membership term is essentially three years. We feel thats needed to maximize your profit potential.
The 500 Membership Slots Are
Going to Go Fast. Dont Wait.
Late last year, Sean and I launched a similar, 500-member service specialized mostly in Canadian small-cap companies. Within just a few weeks, it was sold out, and we closed it off to all new subscribers.
If you were not able to get into that service, were sorry you missed the opportunity. And in order to avoid disappointment again, we recommend you respond quickly this time.
We have over 200,000 readers and 500 memberships only one slot for every 400 investors. So with the intense interest in Asias booming investments, we expect to sell out even more quickly than last time.
To guarantee your membership, to save $10,000 and to get our first recommendations call 800-898-0819. Or, order online at our secure website.
Yours truly,
Larry Edelson
For more information and archived issues, visit http://legacy.weissinc.com.
About MONEY AND MARKETS
MONEY AND MARKETS (MAM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Larry Edelson, Tony Sagami and other contributors. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MAM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MAM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Contributors include Jennifer Moran, John Burke, Beth Cain, Amber Dakar, Michael Larson, Monica Lewman-Garcia, Julie Trudeau and others.
2006 by Weiss Research, Inc. All rights reserved.
15430 Endeavour Drive, Jupiter, FL 33478