Tuesday, October 26, 2010

ETR: The Safest Stocks in the World

To ensure that you never miss an issue, please whitelist our email.
If you would like to unsubscribe, please click here.
Early to Rise
Issue No. 3117 - $1.00 Home Archives Contact Us Privacy Policy
Tuesday October 26, 2010


Hundreds of Practical and Profitable Techniques and Ideas

The ETR Perfect Home Business Quick-Start Program will provide you with hundreds of practical and profitable ways to...

Come up with breakthrough ideas for products and services to sell online...

Identify the best target markets and niches for maximum selling leverage. Locate and evaluate cost-effective vehicles for reaching MILLIONS of potential customers online...

Write winning e-mail marketing sales letters and promotions...

Generate massive traffic to your site and build your own e-mail customer list...

Profitably convert visitors into paying customers...

Publish your own profitable e-zine...

Create multiple streams of income from a portfolio of simple little websites...

And much, much more...

We hand to you the very same secrets behind the $295 million "Agora, Inc. Model" -- on a silver platter!

"Safety is something that happens between your ears, not something you hold in your hands."

Jeff Cooper

The Safest Stocks in the World
By Dan Ferris

The safest stocks in the world right now have three important traits.

The first trait of a safe stock is a rock-solid financial condition. The best financial condition possible is when a company has plenty of cash and little or no debt.

Think about your own finances. Would you rather have $1 million in cash and no debt or $1 million in debt and no cash? It's a silly question. Everybody would love to have $1 million in cash and no debt. It's the same with a business.

The best example is Microsoft. No matter what anyone says about it, I'm 100% certain Microsoft is one of the safest stocks in the world today.

Microsoft is in the best possible financial condition. It has $36.8 billion in cash, stocks, and bonds and less than $6 billion in debt. It could completely eliminate its debt and still have more than $30 billion left over. If you paid all your debts and had $30 billion left over, you'd feel pretty secure, right?

Microsoft shareholders feel that way every day. No matter what happens in the world, there's never a financial crisis at Microsoft.

Here's a list of a few more safe, blue-chip stocks that are all in a strong financial condition...

Company
Cash/Securities
(in billions)

Debt
(in billions)
 
Johnson & Johnson (JNJ) $18.9 $11.6
Intel (INTC) $18.3 $2.3
Costco (COST) $5.3 $2.2
Automatic Data Processing (ADP) $1.7 $0.04
TJX Companies (TJX)
$1.5 $0.79

A strong financial condition is just the beginning. The other two traits of a safe stock are just as important...

Are You Part of This Elite Group?

After hearing from so many successful folks who credit Michael Masterson and ETR with helping them along the way, we've come to realize there is an "elite" group of ETR readers.

These are people who are serious about their success. They are "doers" who want to take action. However, they need that little extra "oomph!" to get them going.

That's why we've created ETR Premium...

To give you behind-the-scenes access to a one-of-a-kind "mentorship" with Michael Masterson and ETR's trusted advisors that will help you get the ball rolling (and then some!)...

... all for just $5 a month

The second trait of a safe stock is that it generates more cash than it reinvests to keep the businesses going.

Again, think of yourself... Would you like to run out of money two days before you get your paycheck? Or would you like to have $5,000 more than you spend each month? That $5,000 is excess cash flow. You'd feel more secure with plenty of excess cash flow each month, right?

It's the same with a business. Businesses that generate excess cash flow every year are safer than those that don't. Johnson & Johnson earned more than $15 billion of excess cash flow in the past 12 months. Automatic Data Processing earns about $1.5 billion in excess cash flow per year. In fact, all six of the stocks mentioned above generate large amounts of excess cash flow every year.

The third trait of a safe stock is that it's obviously worth more than its stock price. I'm not talking about a company worth $50 a share that sells for $48. That's too close to call. I'm talking about companies worth at least 50% more than their stock price.

Intel at $18 a share is a great example. Right now, the stock market says Intel's business is worth about eight times the excess cash flow it can generate in one year. That's an absurdly low price. Over the past few years, we've seen great businesses sell for several times that: Gillette, Wrigley's, and Anheuser-Busch were all bought out for 28-32 times one year's excess cash flow.

Intel is too big to be bought out. But even if it were worth only half what Gillette, Wrigley's, or Anheuser-Busch were worth... that's a 75%-100% upside from here. With a great financial condition, excess cash flow, and a low stock price, Intel is one of the safest stocks in the world today.

To recap, the safest stocks in the world...

Have a rock-solid financial condition, usually with more cash than debt.

Generate more cash than needed to keep the business going.

Are worth at least 50% more than their current stock price.

Many investors think they must take big risks to make big money in stocks. It's just the opposite. You have to eliminate the risk of loss as much as possible.

Invest only in the safest stocks, and you'll retire rich. And if you wanted to, you could probably retire years ahead of schedule.

P.S. Readers of my monthly Extreme Value letter have known about the safest stocks in the world for almost four years now. To date, not one Extreme Value recommendation in this category has failed to produce a profit. The only two we've closed produced 49% and 59% gains in about a year's time. To learn more about Extreme Value -- and how to get immediate access to all my research -- click here.

Import and Grow Rich

One of the best ways to build wealth FAST is to import cheaply produced, in-demand products from abroad... then resell them at a huge mark-up back home.

And now, thanks to the Internet, it's never been easier for home-based entrepreneurs to get in on this lucrative import-export market.

We've profiled several Internet import-export entrepreneurs who are generating over $1 million per year in revenues... just a few short years after they got started. And they all started from home with little in the way of start-up capital or expertise.

See their stories, and find out how easily you can follow in their footsteps, here.


"It has changed my whole perspective."

"Michael Masterson, your piece on charity ("The Ten Commandments of Charity") was so wonderful. It is great the way you are transforming the community around you.

"Many times charitable organizations give out cash thinking that they can transform an individual. But it actually takes a gradual process to change someone's behavior. It's like the saying, "Give a man a fish, you have fed him for a day. Teach a man to fish, and you have fed him for a lifetime."

"There is money to be generated and the people must be shown how.

"Your article has changed my whole perspective on giving to needy persons."

Robert Ekitela


Today's Words That Work: Anomaly

An Anomaly (un-NOM-uh-lee) -- from the Greek for "irregular" -- is a deviation from the norm.

Example (as used by William Finnegan in The New Yorker): "In the drug wars that rack Mexico... Tijuana is an anomaly. It is a place where public security has actually improved."


Whitelist Our Email   |   Click Here to Unsubscribe   |   Customer Service

We want your feedback! Let us know your thoughts on today's issue. Email us at: AskETR@ETRFeedback.com

Copyright © 2010 Early to Rise, LLC.

NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. Disclaimer: Early to Rise only recommends products that we've either personally checked out ourselves, or that come from people we know and trust. For doing so, we receive a commission. We will never recommend any product that does not have a 100% money-back satisfaction guarantee.


Nothing in this e-mail should be considered personalized Financial Advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized Financial Advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

To unsubscribe from Early to Rise and any associated external offers, Click here.

To contact us, please visit... http://www.supportatetr.com/helpdesk To cancel or for any other subscription issues, write us at:

Order Processing Center
Attn: Customer Service
PO Box 7835
Delray Beach, Florida 33482

No comments: