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Stocks with 1,000% Potential

A Group of Stocks with Potential Returns of 1,000% in 2010 

In 2008/9 we saw the greatest unwinding and deleveraging of hedge funds ever. We saw indices drop all over the world by over 50%. This was without a doubt one of the worst stock market collapses in history.

Highly leveraged investors, like many hedge funds were the worst hit with many suffering devastating losses, as they tried to sell down their portfolio in the face of margin calls and redemption requests – It was an unmitigated disaster!

As we all know, the darling of the hedge funds was the commodity sector. The growth of emerging markets like China had inspired hedge funds to invest heavily. However, the financial crisis brought about a drop in commodity prices and a lowering of economic activity and a recession has resulted in many countries including the US. As we all know, recessions are temporary events that are usually over in a year or two at the most, and we are most of the way through the current one already (at the time of writing).

So, one asks the question, “Will commodities make a comeback?”

The answer is without a doubt, yes!

The reasons are twofold.

1. The growth of emerging markets will continue once the US and EU economies emerge from the current slowdown in 2009. This means commodity prices will rise as demand returns.
2. The Infrastructure build out announced by China, EU, US and Australia, as well as many other countries, will increase consumption of commodities in 2009 and 2010 without the need for economic recovery.

Apparently, China has been working through its inventory of iron ore and is now at a place where it is ready to begin importing again.

What this means is shipping stocks will be making a comeback.

Industry experts are now forecasting recoveries in shipping rates. Shipping stocks are beginning to respond, but it's important to only commit capital to the very best stocks in the sector. Some companies have not come through this well, others, have strengthened their position. These stocks are the subject of my Special Subscriber's Only Report.

As we have seen in the past, periods like 2008 come and go, and things then revert to the normal trend. The trend for commodities is up.

The shipping industry has been battered unfairly by the financial crisis and is down 90% from its highs. This absolutely essential business, even now is producing good profits and dividend yields of over 20%.

The shipping stocks have been battered by hedge funds that dumped these former “darling” stocks as the hedge fund managers struggled to survive. Now, these stocks are “unwanted” due to their fall from grace. The stocks in our report are the leaders in this industry and have incredible fundamentals such as Price Earnings Ratios of 1, Growth of over 20%pa, Dividend Yields over 20%, Return on Equity of over 30% and what’s even more ludicrous, they were still surprising the market with their earnings in the last quarter!

I once read that one of the secrets to successful investing was to wait patiently until you could pick up money off the street. When you can buy stocks for cents on the dollar compared to their historical prices, get paid a dividend to hold them, and actually own companies that are trading for prices well below “book value”, you have a strong shot at being successful. That is what we have right now with some of the better shipping stocks.

We believe no other sector will provide the returns of this one over the next two years.

The profits you make from this one report, is worth the subscription price on its own.