In today’s Money Morning…an unexpected return from the grave…the vital ingredient…putting the probability in your favour…and more…
Joseph Robi shouldn’t be here.
A week after being trapped 100 meters below a collapsed gold mine in Tanzania, exhausted rescuers gave Joseph up for dead.
They held his funeral. Gave away his belongings. His wife moved their four children out of the family home and back to her home town, more than 30 kilometres away.
They mourned a husband, father, brother and friend.
Then, unbelievably, on November 17th last year — some 41 days after the mine collapsed — Joseph Robi was found alive by a miner working in an adjacent shaft.
He was weak with hunger; sick and gaunt.
Villagers hailed this unlikely rescue a ‘miracle’…the story of a modern-day Lazarus, returning from the dead.
Joseph Robi may be fortunate. But his story isn’t alone. I’ve found three stocks that have also resurrected from the dead. Despite the ‘miracles’, and offering massive reward, these stocks are still priced at failure. It’s a massive opportunity, screaming at you today.
The Lazarus Project
At Port Phillip Publishing’s Great Repression Conference in Port Douglas last week, legendary investor Jim Rogers said:
‘I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, ‘I just lost my money, now I have to do something to make it back.’ No, you don’t. You should sit there until you find something.’
For very nearly 10 months now, a tremendous moneymaking opportunity has been quietly brewing in a ‘corner’ of the stock market that most investors have given up for dead.
I’ve managed to get a few hundred Aussies into this opportunity so far…
One of them, David, is in profit by ‘approximately $16,000’ to date. Naturally, he says he’s ‘very happy’.
Another, Garry, says he’s ‘nearly cleared twelve thousand’.
There are plenty more investors getting these results from The Lazarus Project. I have no doubt that The Lazarus Project represents the best chance you’ll have to double every dollar you invest this year…at least.
How does it work?
The project is simple to understand. In short, with the finer details laid out within your report, the stocks typically have two distinctive characteristics:
- The Primer
- The Powerball ingredient
The primer is obvious — the company is ‘priced at failure’. It has resurrected from the dead, and the majority of people aren’t taking notice.
Jim Roger’s invests in stocks that are ‘priced at failure’. He has built his fortune buying low and selling high.
The majority don’t listen to this advice…
Despite the widespread pessimism, the company has a condition where the market has decided its stock price can’t go any lower. There’s a gap of hidden value that can be exploited when the ‘Lazarus Trigger’ is initiated.
The second characteristic is the ‘Powerball’ ingredient. For example:
- A bear market rally in the asset they mine…
- The company makes a positive announcement the market isn’t expecting…
- Or they suddenly find a whole cache of a mineral they’ve been looking for.
The stock is priced at failure. But, thanks to hundreds of hours of research, I know that the company has been unfairly treated by the market. It shouldn’t be priced at failure. Because when one of these events — Lazarus triggers — happens, the stock price can fly 50% to 100% in a matter of days or weeks. Or even higher…
Match the primer with the trigger and you get an explosion in the stock price…figuratively, the stock rises from the dead — like Lazarus.
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How to play the game
I’ll give you a real-life example. You can find more in your report.
Remember, the majority of investors only buy stocks that are going up. It’s confirmation bias, and the fear of missing out. Yet, that strategy is often the quickest way to the poorhouse.
Let’s start with this rather solemn looking chart…
Source: Yahoo Finance
Click to enlarge
This is the picture of an Australian company left for dead.
To be specific, it’s a chart of the company’s stock price, from the beginning of 2014 to the beginning of this year.
Depressing, isn’t it?
Here’s the backstory: this company, Tangiers Petroleum, had spent a whole year trying to strike oil in Morocco.
But in July of 2014, they threw in the towel. They hadn’t found a single drop of the black stuff.
At that point, investors gave up on Tangiers. Its stock price fell off a cliff, then flat-lined, as you can see above.
A year later, in July 2015, I did something you might not expect…
I told the small group of investors I advise to buy this stock.
You’d have been sceptical, right?
I mean the story was done. Finished. No oil, no party. You can see from the stock chart; the company was in a state of rigor mortis.
On top of that, the oil price itself had just slumped to a 13-year low. Market sentiment was in the toilet. The haters were out in force.
Bloomberg reported: ‘another crash in the oil market is coming and there may be no recovery’.
Morgan Stanley predicted the downturn: ‘could be much worse than the iconic price crash of 1986,’ when the oil price dropped 63% in a year.
All things considered, why the heck would you buy this stock?
Well, have a look at what happened next:
Source: Resource Speculator
Click to enlarge
The stock did a ‘Lazarus’…awaking from the dead!
Remember, when a stock is trading at near maximum pessimism, that could mean the probability is in favour of you making money…and a lot of it. It only needs a ‘Powerball’ ingredient to play out.
One of my favourite traders is Jesse Livermore. He turned US$3 million into over US$100 million by shorting the 1929 stock market crash. Livermore coined the phrase, ‘be fearful when others are hopeful and hopeful when others are fearful’.
Indeed, the smart money is made buying low and selling high. That’s when you need to be hopeful, when others are fearful.
Of course, you can’t just buy any odd company that is ‘priced at failure’. Well, you can. But you could lose a lot of money if you don’t know what you’re doing. A lot of companies are set up for the benefit of management — paying their wages — and not much else. A lot of these companies are also on the verge of bankruptcy.
I’ve spent over a decade investing in the stock markets and trading futures. I’ve seen firsthand what it takes to make or break a company. I’m also connected to some of the world’s best investors. Applying my skills and knowledge, I’ve found three stocks which could go up hundreds of percent in the months ahead.
The majority don’t care about these three stocks…
Be Brave. This could be your opportunity to make a lot of money.
Resources Analyst, Money Morning