Monday, January 12, 2015


Triple-Digit Upside, 5.3% Dividend and Unique Advantage…

All of this is from one incredibly innovative Australian company. They've already earned our subscribers 70% from their foray into Internet networks and mobile communications.

But the biggest story is just breaking. There's a new technological development that's only possible in Australia – the U.S. won't be able to copy it, even though Microsoft, Google, Amazon, and Apple are all trying.

Don't miss this one – find out more here.

The One Cloud Computing Stock to Buy Now

It's no secret that cloud computing's time has come.

Every world-class company is embracing it:

  • Microsoft continues to add features to its Office 365 cloud service and even has a new ad campaign to let the world know what this technology can do.

  • Google has been working on cloud concepts for years.

  • Amazon offers major cloud services and continues to be a leader in the U.S.

And that's just the beginning. Many other major companies—Apple and Yahoo among them—also offer cloud services.

But here's what we've discovered: not one of them can compete with a cloud stock we're recommending right now, because it has a special advantage no competitor can match.

Not Microsoft, not Google, not Amazon—not even Apple. (It's impossible for U.S. companies to even be in the running, as we'll explain in a bit.)

So why haven't you heard about it?

Because it's based in a country most investors pay little attention to: Australia.

That's their loss, because Australia is one of the world's best places to invest. Its economy is exploding with growth from exports to Asia, and it's incredibly safe: the only major nation that dodged a recession in 2008/09.

David Dittman, chief strategist of our Australian Edge service, has been guiding a small group of Americans to big, low-risk profits in the Land Down Under for years. The current average return in his Conservative Portfolio is 54%.

And that's before taking this latest opportunity into account…

Let's Start at the End

Our Australian Edge subscribers love large gains, but they also love safety. That's why we're going to start this story at the end.

This Australian communications stock pays 5.3% every year. And it's maintained at least this rate for roughly a decade (it has even boosted dividend payments up to 9% in recent years).

So through the best times and the worst, you can count on your payment. This stock is as predictable as a Disney movie. And now that you've heard the "happily ever after," let's get to the news that's happening right now.

Australian technology experts are waiting with rapt excitement. Market analysts are equally enthralled.

So why all the anticipation?

That will become clear in just a minute. First, we want to bring you up to speed on the state of cloud computing.

An Overnight Boost to the Bottom Line

There's good reason for the cloud's stunning growth: it saves businesses money—big money.

The cloud is basically a giant warehouse full of servers. Most people are familiar with servers used for storing data and relaying Internet requests, but cloud computing goes several steps beyond, where all processing and computing occurs on powerful processing servers.

Back in their offices, employees use stripped-down computers that only rarely need to be upgraded.

That means no more costly IT departments. No more instantly obsolete machines. No more endless software glitches.

We ran the numbers, and they don't lie:

An insurance company paying $335,000 a year for its network (including IT salaries), can buy a similar cloud service for $82,000. That's an overnight boost of $253,000 … straight to the bottom line.

What's more, companies that go this route are locked in, because switching to a competitor is a huge and costly hassle. So they can be counted on to pay their subscriptions year after year after year.

That's why you need a safe, consistent technology pick like our "Australian cloud."

But here's the really juicy part…

The Sky Really Is the Limit on Your Profits

Our Australian cloud will be the world's first major company to put its cloud services where they belong: in the air.

You see, they're also a major mobile phone provider, so they own cell towers across Australia—and they're going to use them to offer high-speed cloud computing.

That means no wires through your walls, no boxes on the side of your house and no clunky adapters. For Australians, computers will use cell towers exactly the same way cellphones do.

Now we know what you're thinking: this already exists in the U.S., where customers use an "air card" or their smartphone to share their mobile connection with a computer.

But that's only a primitive version of what we're talking about. The Australian cloud won't be anything like that. It's a quantum leap forward.

So how can they do all this?

For starters, Australian television companies don't own all of the air bandwidth like they do here in the U.S. So our pick was able to buy the entire 700MHz spectrum and use it for mobile communications instead.

Here in the U.S., we can't even dream of such a thing.

It would cost trillions to roll out something similar for Americans—first to buy all the necessary television bandwidth (even the NFL owns bandwidth rights!), then build or improve all of our cell towers.

Sure, we'll probably get there someday, but it's going to be a while.

In the meantime, when it comes to cloud computing, Australia is the clear choice.

And it's happening right now. Thousands of customers are using the incredible air-powered Australian cloud as you read this.

In a few short weeks, that number will be tens of thousands.

And two years from now? Hundreds of thousands.

Lock in Your Cloud Gains Now

There's no doubt that our pick is one of the world's most impressive buys. But if you want to make the biggest gains, you must act now.

Because all of this is so new (and because most investors don't understand the world-changing shift that's happening), this company's value has not yet been reflected in its share price.

You'll always have the 5.3% dividend, which makes this company a good buy for years to come, but the chance for big gains is right now.

That's why we've put all of our resources in motion…

We recently held a meeting with our staff, telling them to drop their other projects and help us compile all of the data on this opportunity. We just finished, and today we're pleased to announce our new special report: "Australia's Golden Cloud."

The details in this report are the perfect vehicle for massive growth—and we're ready to rush it to you immediately. It's yours FREE just for sampling Australian Edge with no risk and no obligation whatsoever.

Now your special report is ready for you, and we can't wait for you to check it out.

Don't wait another moment.

Click here to get it now.

Editor's note: Here's what else you should know: our Australian cloud isn't limited to the Land Down Under: it's taking its strategy on the road. You'll already find it in the U.K. and New Zealand—and it's got India and Hong Kong in its sights. Its smart international expansion will fuel its profits for years to come.

The bottom line is this: it's time to put your money somewhere it can provide income and grow. That's precisely what this rock-solid pick offers.

I urge you to take a look at this brand new report today—before other investors catch on. Your risk in doing so is exactly zero.


Verizon Is Jealous

Verizon has spent $23 billion installing their FiOS fiber-optic network into 183 cities and towns across America. It boasts Internet speeds that are faster than any competitor…

But there's a problem. Millions of under-30 consumers, a group referred to as "never cords" by a Verizon executive, have no interest in hooking up a physical connection to their home or apartment. They refuse to be chained down.

So Verizon has delayed further FiOS expansion.

Frustrated Verizon management is green with jealousy over a new technology that was just unveiled in a far-away corner of the world – it offers a solution to their billion-dollar problem.

But unfortunately, this new technology simply isn't possible here in the U.S.…

While Verizon is sad, we're still happy, because we're investing in the company driving this unique innovation. They plan to use their unstoppable advantage in several key overseas markets. Want in?

Find out more here.

Canada's Exports Tumble Along with Crude Prices

Ari Charney

As crude oil's summer swoon turned into an autumn collapse, the Canada's trade balance followed a similar trajectory.

In July, the country's trade surplus peaked at USD1.92 billion, its highest level since December 2011. In the months thereafter, that surplus steadily eroded, finally falling into deficit in October, as crude's decline accelerated.

According to the latest data from Statistics Canada (StatCan), that deficit roughly doubled in November, to USD568.5 million. By contrast, economists surveyed by Bloomberg had expected the deficit to narrow by roughly one-third.

Sadly, StatCan had previously gotten our hopes up when it initially reported a modest surplus of USD89.2 million in October. That was subsequently revised to a deficit of USD294.4 million.

For context, over the trailing-year period through last year's high in oil prices in late June, Canada's monthly trade balance averaged a small deficit of USD48.6 million.

So while trade could hardly be characterized as robust prior to oil's bear market, in the near term crude will certainly undermine the country's export activity until it picks up in other sectors, such as manufacturing.

In November, Canada's exports dropped by 3.5% month over month, with the decline in prices (down 1.9%) edging out the fall in volumes (down 1.6%).

Naturally, the resource sector was the primary culprit in this performance. According to StatCan, exports of energy products fell7.8%, to USD8.4 billion, the sixth consecutive monthly decrease.

Crude oil and crude bitumen were the main contributors to the decline, with the category down9.9%, to USD6.1billion, as prices fell 6.7% while volumes dropped 3.4%. Exports of other energy products, mainly coal, fell even harder, by an astonishing 28.4%.

But energy products aren't the only commodities enduring a challenging bear market. Key base metals such as iron ore have suffered price declines of similar magnitude, for many of the same reasons, particularly weakening demand amid anemic global growth.

StatCan says metal and non-metallic mineral products declined8.3% in November, to USD4.4billion. Once again, declines in price (down 6.6%) drove this performance more so than volumes (down 1.9%).

Despite these performances, total exports were still 8.4% higher than a year ago. And even exports of energy products and metal ores still showed positive year-over-year growth, at 1.1% and 0.3%, respectively. Of course, given the sustained declines since November, those numbers will likely turn negative soon enough.

The Bank of Canada (BoC) is hoping a rise in export activity spurred by a lower exchange rate will help the country's economy transition from its dependence on debt-burdened consumers. However, with nine of the 11 export sectors posting declines in November, there was little evidence of any momentum on the export front.

And given that the U.S. absorbs roughly three-quarters of Canada's exports, the BoC is hoping the country will catch a major tailwind from a resurgent U.S. economy and the resulting consumer demand for Canadian products. However, exports to the U.S. fell by 2.6% month over month, to USD29 billion, though they were still 8.8% higher than a year ago.

So which sectors actually posted gains in November? StatCan reported that exports for the farm, fishing and intermediate food products and the basic and industrial chemical, plastic and rubber products categories grew by 8.2% and 4.8%, respectively.

As we note in the forthcoming issue of Canadian Edge, one of the few positive outcomes of the crash in commodities is that it affords the BoC more time to maintain interest rates at historic lows until the economy finds its footing again.

Otherwise, the central bank would have felt pressure to start raising rates sooner rather than later, and that could have choked off nascent growth in other sectors of the economy.

This article originally appeared in the Maple Leaf Memo column. Never miss an issue. Sign up to receive Maple Leaf Memo by email.


Have Your Cake and Eat It, Too…

My pick, chosen several years ago, has been paying a dividend averaging 7%.

At the moment, it's taking a rest at 5.3% – because the company behind it has just put over $1 billion into a new technology that will drive a triple-digit growth upside.

We've landed 70% in gains since we first recommended this pick in 2012. But this latest development will achieve new heights that are sure to please investors.

Become one of them –

it's not too late.

Australian Retail Remains a Bright Spot

Ari Charney

Australia's retail sector continues to be one of the few bright spots for the country's economy as the resource boom comes undone.

And while the latest data from the Australian Bureau of Statistics (ABS) shows that retail sales fell short of economists' consensus forecast in November, sales still managed to eke out enough growth to sustain a six-month streak of positive results.

According to the ABS, retail turnover rose 0.1% month over month in November, following a rise of 0.4% in the prior month.

The consensus forecast had called for growth of 0.2%. Economists had expected that lower prices at the gas pump along with the wealth effect from the country's rising real estate market would help boost spending. But sales may have finally succumbed to weak consumer sentiment, at least for one month.

In seasonally adjusted terms, food retailing rose 0.6%, while cafes, restaurants and takeaway food services climbed 0.8% and household goods retailing was up 0.6%. Sales at department stores were flat, while clothing, footwear and personal accessory retailing fell by 0.7%.

Economists interpret the latest numbers as indicative of the need for additional monetary stimulus from the Reserve Bank of Australia (RBA).

In fact, based on futures data aggregated by Bloomberg, a majority of traders are now betting the central bank will cut its short-term cash rate by at least a quarter point at its April meeting, while a still-substantial 42% believe a rate cut could happen as soon as the March meeting. The RBA has held its benchmark cash rate at an all-time low of 2.5% since August 2013.

At the same time, we find it remarkable that retail sales have held up so well amid a challenging job market--unemployment hit a 12-year high of 6.3% in November--that's sapped consumer sentiment.

Although the Westpac-Melbourne Institute's Consumer Confidence Index suffered a sharp drop over the past year as euphoria following the country's federal elections in September 2013 quickly faded, retail sales managed to achieve positive growth in all but one month last year.

During 2014, retail sales growth averaged 0.4% per month year to date through November, compared to 0.3% per month over the trailing five-year period. Still, the near-term trajectory is downward, though presumably we'll learn that the holiday season provided a lift when those data eventually become available.

Indeed, according to The Australian, J.P. Morgan senior economist Ben Jarman notes, "Retail industry reporting suggests late December/early January was better overall."

And The Sydney Morning Herald reports that Deutsche Bank analysts said discussions with unlisted retailers suggested that while the lead-up to Christmas was relatively slow, the final days before the holidays and the last week of 2014 seemed to have been strong.

"The last week of December was a record week for a number of apparel retailers we spoke to, with some reporting December like-for-like growth in the high-single digits, notwithstanding sales that were flat at best in the first three weeks," Deutsche Bank analyst Michael Simotas said.

Even so, sales growth could be somewhat pinched after the sluggish period leading into Christmas prompted frantic discounting during the final week.

Economists still expect falling prices at the pump will eventually flow through to consumer spending. Mr. Jarman says lower oil prices offer "clear support for disposable income and discretionary spending near-term" despite consumers' anxiety about the economy's effect on their personal finances.

But he cautions that consumers are "hamstrung by soft income growth, which limits some of the benefits to retail spending from lower fuel prices." Growth in real wages was negative during the third quarter.

The Commonwealth Bank of Australia estimates the average household will have an extra AUD70 per month, compared to mid-2014, if gas prices remain at current levels. The SMH says Citi analyst Craig Woodford characterized this as akin to a rate cut of 50 basis points.

And that effect could be compounded by a further easing in lending conditions if the RBA comes through with another rate cut or two.

This article originally appeared in the Down Under Digest column. Never miss an issue. Sign up to receive Down Under Digest by email.


Australian Communications Wonder Is Still World's "Best Buy"

In January of 2012, we told our subscribers to buy into a unique Australian company that had a perfectly positioned business in phone networks, Internet access, and mobile communications. Since then, our subscribers have earned over 70%. They also benefited from a giant dividend averaging 7%.

It's still going strong in our portfolio. But this is just the beginning…

I've just received news that this company has developed an advantage that no other competitor can touch – they'll even displace Microsoft, Google, and Amazon in one key, multi-billion-dollar area…

The full story is all right here.

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