One of these companies offers a breakthrough in detecting
cancer. Another buys gold for just $400 an ounce. Still another
company has $45 billion in cash on its books and has earned record
revenue in each of the past three years.
And if you're interested in income, then pay attention. One of
theinvestments you'll read about recently raised itsdividend for
the 29th consecutive year.
The common thread? Each of these ideas is a current favorite of
one of ourInvestment Strategists.
If you're a StreetAuthority subscriber, then you've probably
seen information from us regarding a conferencecall we held on
Tuesday that was open to all of our paid-up readers. On the call,
our analysts talked about the
17.6-year wealth cycle
(the topic of
this recent article
), and took questions from audience members about which stocks to
consider in the final 1,000 trading days of the current cycle.
This was a major event for StreetAuthority. We've never had all
of our strategists available like this in a single forum -- not to
mention one with an audience of more than 20,000
participants.
So in the continuing spirit of group participation, I asked each
of the StreetAuthority analysts to share with me (and you) a stock
that reflects their overall investing philosophy -- a stock that
would be among the last they'd ever sell.
The first experts I asked were Andy Obermueller, Chief
Investment Strategist of
Game-Changing Stocks
and Nathan Slaughter, Chief Investment Strategist of
Scarcity & Real Wealth
. (Stay tuned for more from our other experts).
Here's what they said...
Andy Obermueller,
Game-Changing Stocks
There are four areas I look at when seeking game-changing
stocks: importance, immediacy, scale and moat.
One company that shines in all four areas is
Exact Sciences (Nasdaq: EXAS)
, which has unlocked a key to colon cancer.
This type of cancer is often deadly but is almost always
treatable if detected early. The trouble is, people really dislike
the colonoscopy to detect it, so they don't get tested. This costs
lives.
Exact Sciences has a better mouse trap. Rather than use a scope
to view the colon, EXAS looks for microscopic evidence of cancer.
The company has sequenced the colon cancer genome, and it seeks
unmistakable genetic markers of the disease.
How? All skin cells regenerate, and the body gets rid of the
dead tissue. The colon is no different. By removing skin cells from
a stool sample, Exact Sciences' "Exact CRC" test can detect cancer.
(The test notices blood, another colon-cancer symptom, by testing
the sample for hemoglobin.) The procedure is non-invasive,
pain-free, does not require anesthesia or necessitate any dietary
restrictions.
EXAS has found vital life-saving technology, so it's clearly
important. The next test is immediacy, and certainly this is
something that the medical establishment would be willing to
embrace as soon as the product is granted regulatory approval. As
for scale, this is a test that everyone over age 50 needs to have
every five years, and that's a population that is not only large,
but is growing. As to moat, the product is patent-protected, and
thus the barriers to entry are basically insurmountable for quite
some time.
Exact Sciences has a true game-changer on its hands, a stock
with the potential to deliver some of the breakthrough growth on
which my advisory seeks tocapitalize . It's a strong buy for an
aggressive-growth portfolio at any price under $10.
[
Note:
Exact Sciences isn't the only game-changer Andy is finding in the
health care industry. As he mentioned in the recent
go here
.]
Nathan Slaughter,
Scarcity & Real Wealth
profit from this undeniable trend each month.
One area I'm intrigued with is the junior gold producers. Unlike
their larger peers, they're brimming with potential and hungry for
the next big discovery.
Unfortunately, developing a new mine is a costly endeavor, and
many of these ambitious companies exhaust their initial funding and
must raise additional proceeds to bring their projects to fruition.
But capital can be tough to come by. Traditional bank loans aren't
always anoption , and secondary stock offerings can scare away
investors because of their dilutive impact.
That's where
Franco-Nevada (
FNV
)
comes in. The company lends money to cash-strapped borrowers so
they can develop their mines. In return, Franco-Nevada gets a
percentage of the mine's future revenues or the opportunity to buy
whatever metals are produced for a lowfixed cost -- often just $5
an ounce for silver and $400 per ounce for gold. (Compare that to
current prices of about $35 and $1,700, respectively.)
The company hauls in cash from the royalty and streaming
proceeds tied to 45 productive mines. And that cash is used to
invest in the next promising mine. Franco-Nevada has an ownership
stake in 138 early-stage development projects and is poised to cash
in on 26 advanced mining projects that are nearing the finish line
to commercial production.
This uniquebusiness model allows for full participation in new
exploration projects without any of the heavy costs (or risks)
associated with traditional mining. Franco-Nevada's gold, silver
and platinum assets stretch from Montana to Indonesia to South
Africa. But instead of having to explore for new sources (and then
paying billions to develop them), the company lets its partners do
the legwork. In effect, Franco-Nevada's only real job is to sit
back and deposit checks, making it one of my favorite holdings in
Scarcity & Real Wealth
.
Action to Take -->
Stay tuned for part two, where we'll feature the insights from
three of StreetAuthority's paid newsletter experts, including the
names andticker symbols of the stocks they'd hold in anymarket .
And for more on
Scarcity & Real Wealth
, simply click on the newsletter name to learn more.