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Turning Pennies into Dollars By Only Realizing the American Dream
Here's an email I wrote to an investment friend of mine....
I will tell you something though...I have learned a lot since my early days of investing in which I would simply follow the trend regardless of the history of the stock market. I was caught up in bubble mania just like most others were coming out of the nineties and throughout these early years of the new millennium. I would invest in stocks like JDSU, F, MSFT, etc.etc. and just play the swings for a little gain. I know I am not going to get rich investing in those and the more I look back at it, the more I realize how stupid I was for investing in such stocks. I thought stocks like Newmarket Technology (NMKT) were good investments, but they are just sinking to this low to sub-penny level like every other stock out there that is trading at unrealistic P/E ratios. I have made some good calls along the way in stocks like EXM, F when it saw its first bottom a few years back, MasterCard (MA), and I almost pulled the trigger and loaded up on Google when it was around $100/share. I was your typical Wall Street capitalist hoping those types of investments would help me to live out the American Dream. In all reality, I now believe these are the riskiest stocks out there as they are so easily manipulated by big money and have a cushion room to operate with in regards to their P/E ratios. Not to mention the huge downside potential that we have seen in stocks like GM, F, TM, Bear Stearns, Fannie Mae, Freddie Mac, or damn near any other one out there. It is ever since working at Wells Fargo and seeing how banks could give a shit less about you and me and through the completion of my accounting degree that has led me to a totally different investment strategy. I also cannot fail to mention the resources I have come to know from numerous wise men like yourself and history itself.
We are now starting to enter the dawning of a new age in the world of investing as your typical capitalistic enterprises (railroads, auto manufactures, existing gold companies now trading at huge p/e ratios) will no longer be the investment opportunities in the future. It's the companies of tomorrow in the now decimated OTC and pink sheets that are going to soar and bring about future millionaires in America. If you can picture tomorrow, than you will see that there are some golden opportunities available to you today. This isn't the same old boring scenarios we have come to know through big business and big government, but is in a sense revolutionizing as any person now days can become a corporation. The large caps of yesterday are about to be replaced with a New age of Caesar’s Corporations who have since dreamed of a brighter tomorrow and used the information age of our lifetime to build on those dreams! There is a new horizon and it is one that is going to put to rest all this political and business non-sense we so readiily here in the big corporate media of today.
The cash strapped companies of the past are trading at price to earnings ratios that can no longer be attained. They are sitting upon a bundle of toxic debt that has and which may very well continue to explode. The credit boom created by the fractional reserve system of banking is tightening and that is why you are seeing the bailouts and outright failures of those companies that created the problem in the first place. The tightening of the credit market will put continuing downward pressure on the other stocks trading at unrealistic price to earnings ratios since most of our Dollars are held by overseas investors. They aren't as stupid as many Americans make them out to be as they are not going to invest in a troubled company like Citibank that is trading at unrealistic ratios only to see a dramatic decline in their investment. They are going to be like every other smart investor out there and buy these companies when they are trading at close to what their actual earnings per share is or when it is trading below that level. If you are an investor in these large caps, than I will be the first one to say that you should bail out of those as soon as possible and keep your Dollars in cash under the mattress or in some form of commodity money. The derivates meltdown on the other exchanges has virtually wiped out the portfolios of some who did invest in those companies believing in their dreams. The only problem was that the big money kept making the prices go lower until the stock was trading 95% of their lifetime highs and since saw lots of early initial investors in these companies loses large sums of money. The next wave of meltdowns is going to come as NASDAQ and DOW companies collapse resulting in the widespread desecration of the entire middle class of America who have since let these institutions control your investments. 401k's and other mutual funds will drop and result in widespread wealth destruction that was built up in the credit boom of the past century resulting in an inflated wealth of "invisible credit" in the portfolios of many Americans.
This is where I fear that a chaotic situation may ensue in America as the masses come looking for those who are responsible for the destruction of their wealth so that they have a head to serve on a silver platter. They will realize that it was the greedy bankers all along and the elites in the Military Industrial Complex who have profited as the masses were left to work for a Dollar they thought was worth its weight in gold. They are now indebted up to their knees in mortgages that big banks alone profited off of and they see that the rich cocker suckers who could give a fuck less about them (as George Carlin states) are the ones getting bailed out by their crooked friends in the upper most ranks of government and business. The masses will look for those who are responsible until the Truth is finally known as to who the hell was responsible for the destruction of their belief in the American Dream. I do fear that day and that is when we will know who the True power hungary leaders are in this country as they look to create a new state of fear in the minds of the many through the disillusioned tactics they have used for the previous millennia. The army of the righteous WILL persevere over the greediest aristocracies that have since come to believe that they are more powerful than the almighty God himself! We the People will find our redemption in the truth that has been since hidden to us by this secret government that now corrupts Washington. This WILL be a revolution that will be won by the People of our Republic versus the scary scenarios one has come to believe from reading stories like Orwell's 1984. Someone will be held responsible for the carnage of America's current path and the financial destruction of which was created from thereof, but that will not be the case until the many see through the darkness they have since accepted for reality. I would like to believe that People here will forgive and forget, but it is the outright continuance arrogance of the Truth by government leaders in the bureaucratic realms of Washington that leads me to believe otherwise as a second American Revolution continues to approach. I only wish that you and me could stand amongst the tallest of hills and proclaim the righteous gifts of which Liberty and Freedom promise to all who believe in them when such red flags are raised when those very God gifted principles are being questioned!
But it is for those of us who still believe that we are the land of the free and the home of the brave, that I say to you there are great investment opportunities out there. As Warren Buffet says, "Be greedy when everyone else is fearful". That is the exact state of the middle class American mindset that have since trusted the gurus of Wall Street to be the thinkers behind it all leading to what they hope is financial freedom. It just amazes me though how the blindness of the masses has since led to an ignorant greedy few controlling the course of their financial destiny only for them alone to benefit. Inflation will continue just as it has since 1913 and will result in a few who see through the paper riches of Wall Street to becoming the future millionaires of America. The mom and dad corporations of tomorrow will lead those Americans and believers thereof to become the wealthy Americans of tomorrow. Insiders of corporations who own in excess of five percent of the outstanding stock are limited to the selling and buying of their shares. They know that the stocks of which made them millionaires in the previous century are now clearly overvalued as those that have chased the paper dream have since led them to unrealistic P/E ratios. If you really wanted to start a middle class revolt in America that will lead to the destruction of the wealthiest amongst us who have monopolized the corporations of the past, than I say now is the time more than ever to invest in that of which many still believe to be the American Dream. I will get to those trading styles here shortly in what I have seen by reading the tape. All the holders in excess of 5% of the outstanding stock will be left holding the baggage since Sarbanes Oxley so long as the rest of the population sells their shares and REFUSES TO BUY BACK IN until that stock is at a p/e ratio that is in line with realistic earnings that weren't just taken from cookie jar reserves so to meet expectations. The richest amongst us will see a stock trading at 20x price to earnings ratio at $60/share and the masses who own less than 5% will sell their entire holdings NOW. Due to restrictions placed on those who hold in excess of 5%, they cannot sell their shares in whole. Therefore, that stock trading at $60 will drop and that is when I will buy in when it reaches a level of $3/share just like you have seen with numerous others stocks that have since plummeted.
This is where and how I believe the millionaires of tomorrow will be made....
1. It is those companies that commit to buybacks of their shares, which will result in a reduction of the number of outstanding shares, which will ultimately benefit shareholders. It is also the commitment by these companies to ensure that absolutely no reverse stock split is implemented unless the true value per share makes it worthy to do so.
2. It is those that realize the true value of those coveted goods of mankind that will also benefit tremendously. You have companies that are sitting on excess of billions of Dollars worth of gold and silver and yet they trade at a $10 million market cap. The stock price appreciation will ensue as those share prices increase to come in line with the true asset value of the company in REAL assets instead of those built up on a credit/paper dream.
3. The millionaires of tomorrow will be those of the dreamers we have come to know and have since turned those dreams into profitable enterprises. The revolutionizing ideas that have since sprang forth from them as our informational progressed, are protected by patent infringements, which will result in great wealth to those who have dreamt of that brighter tomorrow. One example of this would be the very prospect of digital billboards versus our current painted ones. There was obviously someone who thought of such an idea and patented it and which will soon result in them realizing a great increase in wealth as that technology is implemented.
4. The millionaires of tomorrow will also be brought forth to us by those that seek out and invest in America by spotting those opportunities of which arise that in no way reflect their true value of potential earnings per share. These are companies that are trading at a fraction of a cent but may soon realize earnings or dividends in excess of $.01 to $.05 per share. It is these opportunities that are going to result in 1,000% to 50,000% returns on ones investments in a short period of time while everyone else is in panic mode. This isn't even taking into account the potential multiples one might pay in the future to acquire the stock which could result in prices being driven upwards to a $1.00/share! These are the types of investments that will lead greedy people trying to talk you out of an otherwise good investment as the stock trades in the sub-penny range. Advice tip #1 - Don't let people talk you out of an otherwise good investment!!!
I once read that those behind the scenes wanted the Dollar to be worth what a nickel is worth. If that is the case, our Dollar is only worth around $.05 for every fiat currency Dollar note out there. That is why you are seeing the destruction of our currency versus other currencies as the long revered reserve currency of the world comes trembling to its knees. The only thing we are doing now is to bailout those behind the credit bubble so to offset a panic that would occur had we completely cut off credit like we did in the early years leading up to the Great Depression. Instead we will just pump enough liquidity (in the form of fiat notes) into the system to keep the largest corrupt companies amongst us afloat so not to see a dramatic overnight decrease in the overall US economy. I am also starting to believe that the Dollar may not fail, as in all reality, there really hasn't been as much paper printed versus the credit of which pumped into system which we have since mistakenly viewed as "money". That is why I am beginning to believe more strongly than ever that there are opportunities in penny and nickel land that will make you the future millionaires in a relatively short period of time so long as you look through those supposed wisest amongst us.
This is where I wish to point out trends I see of which will lead you to investing that nickel or copper penny into those future companies of the Americas. Most stocks you know from the brigade of media oligarchy will continue to fall until they are at realistic earnings ratios in which then the large volume days will commence. They will lose upwards 95% of their value and that is when the heavy accumulation and volume days occur. This is where the smart money is going, for if our markets our truly free of corruption and phantom shares, than we would expect that for every sell, there should be a buy. If that is not the case, than I say we should rise up and serve to our fellow man the individuals who have since created those phantom shares on a silver platter resulting in the destruction of middle class Americas wealth. Revenge will come with a vengeance so long as the real Truth facing our markets is continually ignored while only a few prosper through these most turbulent of times. America had better be the country of which all who seek it out are truly free, for otherwise an apocalyptic uprising of those in God's country will occur leading to the destruction of your fiat empire built up through the years on corruption and lies which has decimated the wealth of so many!!!!
Now is the time to invest in the future of tomorrow versus what many will lead you to believe in 401ks, mutual funds, or those on Bubble Vision. You need to look to that tomorrow of which environmentalists dream of and of which capitalistic endeavors see great opportunities in. You need to look for those companies trading at a fraction thereof of their "real value" and back up the truck when buying shares. Just be careful though, for many of these may very well fall to levels of a 1/100 of a cent before the heavy accumulation occurs. This is when you should dump a few hundred Dollars into these stocks in hopes of seeing a HUGE return as they are trading far below what they are really worth. The paper Dollar is still worth its weight in gold so long as you can see through the continuous disillusions of those greediest amongst us. The future lies not in the past, but it instead lies in those dreamers of tomorrow. It is just a matter of snatching up millions of shares while these future great companies are trading at a fraction thereof. It is only after the heavy accumulation occurs that I would be willing to invest in a company trading at $.01 to $.02 cents a share. It's those insider buyers at the lowest of levels and by following those doomsayers amongst us trying to save us from financial Armageddon that will lead us to the ultimate of investment successes!
But what the hell.......Go on and believe what you want for I know nothing........
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