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- You can use it on any stock… at any time… and you'll know instantly whether it's time to buy it or sell it.
- It takes all the guesswork and anxiety out of your investment decisions… and leaves you with nothing but confidence.
- It's all in a new report that summarizes 26 years of research and shows you how I made $127,344 in a single stock… without paying my broker a dime.
Get the story here.
| | | 12/17/2014 By Jim Pearce 
What I'm about to say may sound weird. It might even upset you.
But it's something every investor needs to hear.
Here we go…
Scientists have discovered that brain-damaged people are better investors than the rest of us!
That's from a Stanford and Carnegie Mellon study that examined people whose brain injuries kept them from processing emotions. Compared to folks with no brain damage, they made much better investment decisions.
Strange, right?
Turns out the pathways our brains use to evaluate investing information are linked to emotional inputs, not logical brain pathways, as you'd expect.
That's why money decisions are so hard. We're using the emotional "right side" of our brains to make what should be logical "left brain" decisions.
It's also why individual investors always do worse than the market—and not just a little worse.
Over the past 20 years, the S&P 500 returned an average of 9.2% annually. But actual investors earned just 5.0%.
That's absolutely pathetic. And it will keep happening until we find a way to remove emotion from the equation.
But here's the good news: Today I'm going to show you a proven system that does exactly that.
My Emotion-Free $127,344 Winner
I'm Jim Pearce, the new chief investment strategist for Personal Finance, the country's most widely read investment advisory.
After 26 years on Wall Street, I can finally reveal the system that made me the biggest single winner I've ever banked in the market.
My bosses wouldn't let me use this system when I was on "the inside." I had to toe the company line. But no one could stop me from using it with my own money.
And in the dark days of October 2008, it predicted Ford would be a big winner, despite everything the auto industry had going against it.
This was scary—no sane person was buying stocks in the 2008 crash … and especially not in the car business while GM was going bankrupt!
Fortunately, my formula runs entirely on numbers, and Ford's numbers set it apart from other car companies. So I did what it told me to. I bought 10,000 Ford shares for a bit over $2.
Less than three years later, I sold at almost $15 a share!
I made $127,344 on a single stock! It happened to me, and today I'm going to show you how it could happen to you.
Why It Pays to Play by the Rules
First things first: I'm not a value investor, a growth investor or a momentum investor.
I am a rules investor.
Everyone knows that you should do the opposite of the crowd … be greedy when everyone else is scared … buy when there's blood in the streets … the clichés are endless.
But guess what? It's really hard to do! The herd instinct is the deepest-rooted human behavior there is. It's bred into our DNA.
So when people say Warren Buffett is a superhuman investor, they're on to something.
Buffett truly isn't like the rest of us. He is bizarrely unemotional. His entire career displays an uncanny ability to ignore fads and stick to a core set of proven investing rules.
I'm no Buffett, but luckily I don't have to be. My system runs on emotion-free measures like dividend yield, cash flow and relative value—all the things that ultimately drive a stock's price.
Now I'm using it publicly for the first time, in Personal Finance.
And because Investing Daily is now backing my research, I call my stock-picking system IDEAL: "Investing Daily Equity Analysis List."
When I got here two years ago, I started running a pilot test on my IDEAL system, and it has made 58% more money than its benchmark. So now we're rolling it out in every issue.
The beauty of my formula is that you can use it on any stock you want, at any time, and you'll know precisely whether it's time to buy it, sell it or do nothing.
If you're at a point in your life where you can't afford to own stocks that disappoint you, this is a must-have tool.
In just a moment, I'll tell you how to get a new free report that shows you, step-by-step, how to put my system to work on your investments right now.
But first I want to take you behind the scenes and reveal…
How We Make Stock Picking Simple
First, we assign a precise IDEAL value to every stock in the S&P 500.
I give each stock a score for its dividend (0-3 points), cash flow (0-3 points) and growth potential (0-4 points). So the highest score a stock can get is 10 and the lowest is 0.
But we don't just go out and buy the 10s.
We then convert a stock's score to an "IDEAL value" price by comparing its score to that of the entire S&P 500. This tells us where a stock should be trading.
I never invest unless I know a stock is at least 20% cheaper than its IDEAL value. And I take my profits when the price moves 20% above that value. I'm absolutely firm on this.
The best thing about investing this way is you don't have to take big risks to make big money.
There's nothing daring about buying a stock at $40, for example, if its true market value is $74, according to IDEAL.
Now here's what I suggest you do next…
Start Pocketing Your "By the Book" Profits Now
As I mentioned above, I've put everything you need to know about my system in a new special report. It's called "The Investing Daily Equity Analysis List."
It reveals the secret sauce behind the system it took me 26 years to perfect—and how together we can use it to zero in on the few stocks most likely to make us money.
You'll exactly see how it picked up on Ford at $2 before it shot up to almost $17 in 23 months and made me more than $100,000 in the process.
This report isn't for sale, but I'm ready to send you your copy right now at no charge. All you have to do is sample Personal Finance—the only advisory that uses the IDEAL formula for every pick it makes—with no risk and no obligation whatsoever.
I can't wait to show you the ins and outs of my time-tested system, and with this special offer you risk nothing by "kicking the tires" on it yourself.
But I must warn you: due to the sensitive information this report contains, this offer could be canceled at any time, and I don't want you to miss out. So don't wait.
Go here to get your copy now!
Editor's Note: I'm so excited about Jim's system that I'll throw in a second free report, "5 IDEAL Stocks for Any Market."
This report builds on the first one by revealing the IDEAL system's five top-rated stocks now. These are the companies with a proven ability to plow through any downturn. You'll get full details on each and every one in "5 IDEAL Stocks for Any Market."
I urge you to check out both of these special reports now. Together they help you erect a wall around your wealth. If you want to keep the money you've spent years accumulating, you need to get them. | | |
I've consolidated 26 years of trial and error into three strict rules I follow every time I put a buck in the market. They let me know what to buy, what to sell and when to do it.
Sticking to this rigid system makes it easier to accomplish the toughest job in investing: ignoring what all the talking heads, advisers, TV gurus and mad crush of other investors are doing all around me. Get the full story here.
| | | 12/17/2014 By Chad Fraser 
Few things can boost a company's share price like a takeover bid.
Just ask PetSmart (NYSE: PETM) shareholders, who've watched the stock march higher since takeover speculation started swirling around the pet retailer five months ago.
The gains were capped by a 4.2% jump on Monday, after PetSmart agreed to an offer from private equity firm BC Partners. The $83.00-a-share bid represents a 39% premium over the stock's closing price on July 2, the day before another private equity firm, Jana Partners, started leaning on PetSmart's management to put up the "for sale" sign.
For a more dramatic example, take a look at Canada's Talisman Energy (TSX: TLM, NYSE: TLM), which surged more than 48% yesterday on a US$8-a-share bid from Repsol SA (OTC: REPYY).
But as tantalizing as gains like these are, Investing Daily analyst David Dittman reminds investors to stay focused on a company's fundamentals---and view any takeover potential as a bonus.
"Betting on M&A by trying to identify targets ripe for a premium takeover bid is not a sound way to go about building wealth over time," he wrote earlier this year in our Utility Forecaster advisory. "At the same time, focusing on solid businesses that you would buy and hold is a sound strategy. And oftentimes these solid businesses will attract suitors, largely for the reasons you invested in the first place.
Whether a deal materializes or not, you own a business that's set to grow revenue, generate cash flow and pay dividends for the long term."
Megadeals Dominate
Still, it's worth keeping an eye on M&A activity, if only to gauge the mood in corporate boardrooms across America. And according to just-released numbers from KPMG, that mood is one of increasing confidence.
"Economic fundamentals that drive M&A are back at pre-crisis levels, with corporations holding large cash reserves, interest rates remaining historically low, consumer confidence improving and the U.S. dollar becoming stronger," said KPMG's Dan Tiemann.
The consultancy surveyed 738 M&A professionals around the world. Here's what it found: - More deals on the way: 82% of respondents think their U.S. companies or clients will make at least one acquisition in 2015, compared with 63% who felt that way at this time last year.
- Deal values on the rise: Only 50% of respondents expect to do a deal under $250 million, down from 77% last year, while far more expect to complete transactions valued upwards of $250 million, $500 million and $1 billion.
The findings come as we get set to cap off the busiest year in M&A since before the Great Recession. So far in 2014, the total value of global deals has topped $3.4 trillion, according to Dealogic. Even if that figure doesn't go any higher, it would mark the largest total since 2007.
From Timbits to Telecom
One of this year's most high-profile takeovers was Burger King's $12.5-billion (Canadian) acquisition of Canadian coffee-and-donut chain Tim Hortons---though for reasons the companies likely didn't intend.
The deal created Restaurant Brands International (NYSE: QSR, TSX: QSR), the world's third-largest fast-food operator. Under the deal, the new company is headquartered in Canada, where corporate tax rates are around 26%, according to the OECD, compared to about 39% in the U.S.
That was likely the catalyst for the Obama administration's move to crack down on so-called "tax inversions," where U.S. companies buy foreign firms and shift their headquarters overseas to take advantage of lower tax rates. Company executives, for their part, insist the Tims/BK deal doesn't fall into that category because both firms had roughly the same effective tax rate last year.
Another 2014 takeover with more than meets the eye is AT&T's (NYSE: T) proposed $48.5-billion buyout of DirecTV (NYSE: DTV), particularly because the deal gives the telecom giant a foothold in Latin America.
"DirecTV has 18 million subscribers in Central and South America and is one of the biggest cable providers," we wrote in the October 22 issue of ourPersonal Finance service. "Latin America has emerged as one of the largest buyers of Spanish-dubbed TV series and movies from the U.S., U.K. and Australia."
What's more, the company says only 40% of the region's households subscribe to a pay TV service, versus 90% in the U.S., so there's still plenty of room for growth.
And while DirecTV only sells TV services in the U.S., it offers Internet and wireless broadband services in Latin America, so AT&T's expertise in those areas should give it a big edge over the competition.
Two Sectors to Watch in 2015
So which sectors will see the most M&A activity in the year ahead?
The ones undergoing the most change tend to see the most deals, so it should come as no surprise that 83% of KPMG's respondents picked health care, while 62% pointed to technology as one of the most active areas this year.
The report pointed to four key trends driving tech M&A: mobile technology, cloud computing, data analytics and security. (We took a close look at how these trends will drive the tech sector's growth next year in last Wednesday's Stocks to Watch article.)
The biggest reason why tech firms are looking to make deals? Half of respondents within the sector pointed to access to intellectual property or talent, followed by bolt-on acquisitions to enhance new products.
Another big factor: a huge increase in tech companies' cash holdings. Companies in the technology, media and telecom space have seen their collective cash hoard jump 124%, to $1.1 trillion in 2013 from $482 billion in 2008, according to the Silicon Valley Business Journal.
In health care, nearly three-quarters of respondents said the industry's response to the Affordable Care Act would continue to drive deal-making, with hospitals being the major players.
How to Fix Your Brain for Investing
Takeover or no, the key to picking winning stocks is to remove emotion from the process.
Don't believe me? Just ask Warren Buffett.
The world's richest man truly is wired differently than the rest of us. He's bizarrely unemotional and doesn't care whether his investment decisions make him look foolish or out of touch---or what other people think of him.
That's the beauty of our new system: it takes every scrap of guesswork and every iota of emotion out of your investment decisions.
You can use it on any day and on any stock and you'll know if it is time for you buy it, sell it or do nothing. That's a priceless feeling of confidence.
Find out how it works here. | | |
If you can consistently win on 60% of your stock picks, you'll be a very happy investor.
It worked for Peter Lynch, who posted an average return of 29% a year for more than a decade, and made thousands of investors rich in Fidelity's Magellan Fund.
As Lynch puts it, "In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten."
Lynch turned $100,000 into $2,739,000 during his 13-year stretch at the Magellan Fund. If 60% is good enough for Peter Lynch, it's good enough for me.
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