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Thursday April 10, 2008

Mortgage Your House and Buy as Much of This as Possible
By Jeff Clark

Folks, I'm going to do something today that I rarely ever do.

I'm going to make an unabashed request for you to subscribe to Advanced Income – my covered call writing newsletter service.

Stocks are in a bear market. Treasury bills are offering 2% rates of return. And your money market funds are just over 1%. The only low-risk strategy to generate income right now is to write covered calls. In fact, today's market is the ideal environment for this technique.

Options are expensive because of the recent volatility, and a large number of stocks are trading at ridiculously low valuations. So investors have a unique opportunity to pick up low-risk value stocks and generate high rates of return by selling calls against them (a technique called "writing covered calls").

Last month, for example, in a special e-mail to Advanced Income subscribers, I argued that NutriSystem (NTRI) was a dirt-cheap stock. And it represented a compelling investment opportunity.

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It was a tough argument to make.

NTRI shares were down 80% from their high last summer. The company disappointed investors during the last three earnings announcements. Revenue growth was slowing. And the company's advertising expenses were running higher than expected.

But the stock was trading at just six times earnings, and our covered call writing strategy allowed us to profit even if NTRI dropped another 11% from our purchase price.

It was the biggest "no brainer" trade I'd seen since I told Advanced Income subscribers to write covered calls on United States Natural Gas Fund (UNG) last September (we're up 23% on that trade, by the way).

On Tuesday, NTRI announced its first-quarter revenues were better than expected, and the second quarter looked pretty good, too. Turns out, the NTRI commercials featuring Larry the Cable Guy, who dropped 50 pounds on the NutriSystem program, are pulling in better numbers than anticipated.

NTRI shares jumped on the news. And our NTRI covered call trade is up 17% in just one month.

That's not too bad for a low-risk trade in a tough market environment.

In today's issue of Advanced Income, I'm going to recommend a trade that's even more of a no brainer. This trade will generate an 8% return right away. It can make up to 20% over the next three months. And it can only lose money if the stock drops more than 7% from its currently depressed levels.

Make 3% per Month – Every Month

How Wall Street Will Pay You to Buy Stocks

This report, which will be issued after the close today, details the best, lowest-risk, highest-return, income-generating strategy that exists right now. Heck, I'd tell my mom to mortgage her house and put her money into the trade if I thought she'd listen to me. Sadly, I'll always be the 8-year-old second baseman crying over a fouled up double play to her.

But you never saw me play baseball.

You have, however, seen me pick stocks and cover the stock market. If you think I know what I'm talking about, then take advantage of this trade by subscribing to Advanced Income. Click here to learn about a trial subscription.

It'll be the best investment you've ever made.

Best regards and good trading,

Jeff Clark

China's Copper Imports Hit Record High
China, the world's biggest copper consumer, may increase imports of ore used to make the metal by 20 percent to a record this year, said Trafigura Beheer BV, the country's top supplier.

Purchases of so-called concentrate, or processed ore containing copper, may rise to 5.4 million metric tons from 4.5 million tons in 2007 as China expands in smelting, said Simon Collins, director of Trafigura Trading Shanghai Co., a unit of Trafigura. China would become the world's top buyer, surpassing Japan which bought 5.05 million tons last year. Read on...

One Trillion Dollars in Subprime Losses
Worldwide losses from the credit crisis could near $1 trillion, the International Monetary Fund said yesterday, reflecting the massive cost of the breakdown in markets for home mortgages and other kinds of debt.

The IMF, which is holding its semiannual meeting in Washington this week, urged banks to disclose losses quickly, raise extra cash if necessary, improve their techniques for dealing with risk and reconsider how top managers are paid so that they have better long-term incentives. Read on...


$111... Halliburton, U.S. Oil, EOG Resources, Pioneer Natural, Devon Energy, Forest Oil, Stone Energy, Petrohawk Energy, and Quicksilver hit new highs.

Makers of gas-guzzling RVs feel it too... Thor Industries and Winnebago hit new lows.

Computer maker Dell at new low, down 55% since 2004.
Last Change 52-Wk
S&P 500 1378.78 0.51% -4.87%
Oil (USO) 80.11 1.74% 57.39%
Gold (GLD) 93.75 1.09% 37.67%
Silver (SLV) 186.44 3.64% 26.84%
US Dollar 74.80 -1.06% 10.86%
Euro 1.497 0.98% 13.61%
VIX 21.88 -4.99% 96.23%
HUI 477.79 2.45% 32.05%
10-year yield 3.86% -0.04 -0.77
Company Sym Industry

U.S. Oil

USO

oil

Apache

APA

oil & gas

CF Industries

CF

agriculture

Devon Energy

DVN

oil & gas

Stone Energy

SGY

oil & gas

EOG Resources

EOG

oil & gas

Halliburton

HAL

oil services

Petrohawk Energy

HK

oil & gas

Quicksilver

KWK

oil & gas

U.S. Oil

USO

oil

Noble Energy

NBL

oil & gas

Cabot Oil & Gas

COG

oil & gas

Cleveland-Cliffs

CLF

iron ore

Forest Oil

FST

oil & gas

Permian Basin

PBT

oil & gas

Newfield Exploration

NFX

oil & gas

Bill Barrett

BBG

oil & gas

Pioneer Drilling

PDC

oil drilling

Comstock Resources

CRK

oil & gas

Whiting Petroleum

WLL

oil drilling

Berry Petroleum

BRY

oil & gas

Chart Industries

GTLS

industrial prod

Callon Petroleum

CPE

oil & gas

Contango

MCF

oil & gas

Sabine Royalty

SBR

oil & gas

Telemig Celular

TMB

telecom

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Finley continues: "I've made tens of thousands of dollars... I've been paid every single month. I use the monthly income for everyday things like bills and other expenses. I'd definitely recommend this investment to others... it's never failed me."

Click here for the full details...

Company Sym Industry

Dell

DELL

computers

MGM Mirage

MGM

casinos

Garmin

GRMN

GPS

Smurfit-Stone

SSCC

paper products

Sotheby's

BID

auctioneer

First Horizon National

FHN

bank

Medarex

MEDX

biotech

Chico's

CHS

clothing

Thor Industries

THO

RVs

Arctic Cat

ACAT

ATVs

DSW

DSW

shoes

Winnebago

WGO

RVs

Student Loan

STU

student lending

4 Kids Entertainment

KDE

media

Ambassadors Intl

AMIE

cruises

RF Monolithics

RFMI

wireless comm

Scholastic

SCHL

publishing

Imperial Sugar

IPSU

sugar

Commodity Q&A: Can't we just drill our own oil?
April 9, 2008

How Wall Street Will Pay You to Buy Stocks
April 8, 2008

Timber Companies: A Trend Follower's Nightmare
April 7, 2008

Weekend Edition - No S&A Digest this week
April 5, 2008

The Hub of American Health Care
April 4, 2008

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