What You Haven’t
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My name is Jon Markman and I buy slam dunk stocks. When I tell people about them, invariably there’s this moment when my listener slaps his head or winces as if he’d been stung by a demon bee.
"Why did you do that?" I ask.
Because, well, it’s so embarrassingly obvious, comes the answer.
Which it is.
I once saw a billboard in New York City. It said:
Drink the coffee. Party like a rock star. It’s not complicated.
Here’s my version:
Pick the slam-dunk stock. Sell it when it doubles. It’s not complicated.
If I had given you $100 ten years ago and the choice between investing in technology, gold or building supplies, most clever investors would have picked silicon over gold and gold over gravel. And been dead wrong.
Your $100 in, say, Intel would now be worth $315 today.
Your $100 in, say, Freemont Mining would now be worth $110.
But a lowly gravel pit I am recommending today would have made the most of all—up 1,300%, making your $100 worth a plump $1,400.
Unglamorous businesses that have thrived in the face of vicious overseas competition are extraordinary wealth builders. But no broker will ever spoil your dinner with a breathless phone call about a steel mini mill or a combine harvester or a motorbike maker.
Yet Nucor, the company that reinvented the steel industry, or John Deere, which reinvented the production line, or Harley-Davidson, which roared back from the brink of obsolescence, have all beaten the market handily over the last five years.
All are examples of slam dunk stocks.
Buy ’em when the risk is all wrung out. Watch ’em double. Do it enough times and you can afford to have an entourage.
It’s not complicated.
Building suppliers have faced vicious overseas competition. They’ve faced, let’s be honest, dumping. The industry was fragmented, inbred, wildly inefficient.
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Take gravel and cement. What Mittal is to steel, Cemex is to cement. Cemex is the Mexican company that mushroomed into a global powerhouse as China cemented over millions of acres for malls, roads and dams. Operating in 34 countries, Cemex is the most profitable of the big cement companies, and has returned a thumping 200% profit to investors over the last five years.
Against this global Goliath, meet a local David. This is the slam dunk stock I want you to buy today. As I mentioned, it is already up 1,300%, but the run is just beginning.
Trading at 16 times next year’s earnings, this is a $48 stock racing to $67.
The huge new highway spending bill actually makes the goal rather easy.
The company is located in the richest and fastest-growing state in the nation and has a home-field advantage that Cemex can’t touch.
Profits jumped 40% in the first quarter on a revenue increase of 22% Buy as instructed in today’s Strategic Advantage.
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If none of this happens, then I promise to steal into the night and you’ll never hear from me again.
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Jon Markman, Editor
Strategic Advantage
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