Mean Old Ladies, Better Pitching and Sangria WIne

​It has been pretty much a sideways week for the stock market. In spite of worsening situations in Iraq and Ukraine and a huge negative revision to GDP stocks just keep chugging along. There is not a lot of excitement about stocks right now as much as a sort of a mildly positive complacency. As long as the Fed and other global central banks say and do the right thing from the markets perspective and jeep interest rates at rock bottom, most are content to hold the stocks they have and buy more with any cash they get in the door. The only things that matter this week are The Fed and World Cup
To a guy who lives on valuations and favors baseball over all this is a very confusing world. Stocks are being purchased at fairly crazy valuations and no one cares about the Orioles two walk off wins against the White Sox or the feel good story of the red hot Milwaukee Brewers and Hank the wonder dog. It all zero rates and backbiting futballers. I am told the US lost today but moved on to the next round anyway. I am not even going to attempt the fancy World Cup math that created that situation any more than I will ponder the Feds next move. All I know is that rates will be low well into next year at least and I have to put up with all the soccer chatter for another week minimum.

BY any measure the stock market is on the high side of fair. The Tobin Q ratio, Value Line Median Appreciation Index, market cap to GDP ratio and the Schiller PE all tells us that valuations are a little stretched right now. Sam Zell, Seth Klarman and other smart folks have told us that the market is at dangerous levels and that the disconnect between Main Street and Wall Street is setting up a potentially ugly situation for the stock market. Howard Marks tells us that we are not cheap but not yet egregiously overpriced either so we should move forward with caution. According to the Wall Street Journal, Michael O’Rourke of Jones Institutional Trading recently told clients “Each reading and subsequent revision has disappointed. The complacency within markets is at an extreme where only the positive implications are priced in. The problem is there were no positives.” I agree with all of that. The problem is that the stock market doesn’t care what any of us think and is content to just grind its way higher on the tailwinds of global monetary policy.

So what does an investor do in this environment? You really have a couple of choices. You can join the rest of world , totally ignoring John Templeton’s suggestion that doing what everyone else does leads to average results, buy stock and hope nothing bad happens. With a bit of luck stocks ignore Mr. O”Rourkes suggestion that “ there is a reckless optimism bidding the market higher indicating there is little doubt we are in the greed phase. Should the data disappoint or even if we have a simple reality check, this episode is likely to prove to be a major missed selling opportunity” and just keep pushing higher.

Or we could learn to think more like Hetty Green , the woman they called the Witch of Wall Street. As I wrote in my Benzinga.Com article earlier this week “The Grandmother of Value Investing” she was a mean old biddy but she was also a very rich one. Her approach was pretty simple. She made loans with strong collateral and strict covenants with some of her money and would buy select bonds while holding huge cash reserves. When there was a crash in stocks or real estate she would swoop into buy and then hold until it reached a price she thought was on the high side of fair and would sell to overly enthusiastic buyers. A simple strategy but one that made Hetty Green the richest woman in the world at the time.

Wilbur Ross has used a similar strategy to become a billionaire. Sam Zell used it to accumulate several a billion dollars’ worth of real estate. Seth Klarman has used the strategy of being a buyer of last resort to become one of the most successful hedge fund managers of all time. It has been a big part of Warren Buffett’s success over the years. Of course our good friend Mr. Womack used this strategy to make sure he never had a losing year in the stock market.

You don’t have to use it just for stock market crashes either. In the past year alone we have seen silver miners, North American oil and gas drillers, small cap REITs, shippers and commodity related companies fall out of favor and sink to ridiculously low valuations. Looking out five, or even ten years if necessary, there is virtually no scenario under which these stocks do become popular and overpriced again giving us a chance to sell asset bought cheap for inflated prices.

There is another sector that can allow investors to buy very cheap today with the expectation of selling dear in the long run. Yes, I am climbing back up on my small bank soapbox. When you look at the Banking on Profits Portfolio here is what you find. Our current buy rated stocks trade at just 86% of book value on average. The 5 cheapest list last week traded on average at just 70% of book value. The current price to book value average of bank takeover offers is about 130%. That number will go up as the consolidation trend continues and if history is any guide top out above 200% of book value in the future. Even at today’s level the potential gain in a takeover offer is greater than 50% for the average Banking on Profit stock and 85% for out cheapest stocks and that’s at today’s low takeover multiples.

Our banks have solid and improving balance sheets and loan portfolios. Most of them have a strong activist investor that owns a significant number of shares and is pushing for changes leading to a higher stock price or the outright sale of the bank. A lot of portfolio banks are buying back stock below book value. Many have seen insider buying by officers and directors in the past year as the people running the bank know the price of their stock is just too cheap and should appreciate substantially in the years ahead.

I have no idea what the economy will do and how the fed will react. I have no earthly idea how the markets will react to the Feds reaction. I don’t care who wins the World Cup. I know that if I buy things when they are out of favor and cheap and hold them until they are popular and expensive I will make a lot of money over my investing lifetime and I know that if the Orioles pitching continues to improve we have a real shot at this division. Of course I am much surer of the former than the latter!

Cheers,

Tim

Song of the week

Almost the weekend and time for the song of the week:

Special offer on Banking on Profits

http://vip.marketfy.com/takeover/

4 for 40%+ (with more to come!)

We started Banking on Profits about a year to help investor take advantage of the changes occurring in the banking industry. We have a perfect storm situation as smaller banks are finding the crush and cost of new regulations are pressuring the bottom line and making it difficult to operate profitably. At the same time the regional banks are finding it very difficult to grow assets and earnings in a slow growth economy. We have a bunch of banks that are considering selling and other that need to buy to expand.

This trend is going to stay in place for several years at least. I call this situation the trade of the decade as I think that the the smaller community banks are going to offer spectacular returns over the next 10 years at least.

So far we have had 4 takeovers of portfolio stocks with an average gain of over 40%. I am pretty sure we are going to have many more in the months and years ahead.

Our current buy rated stocks trade at just 86% of book value on average. The 5 cheapest list last week traded on average at just 70% of book value. The current price to book value average of bank takeover offers is about 130%. That number will go up as the consolidation trend continues and if history is any guide top out above 200% of book value in the future. Even at today’s level the potential gain in a takeover offer is greater than 50% for the average Banking on Profit stock and 85% for out cheapest stocks.

Our banks have solid and improving balance sheets and loan portfolios. Most of them have a strong activist investor that owns a significant number of shares and is pushing for changes leading to a higher stock price or the outright sale of the bank. Many have seen insider buying by officers and directors in the past year as the people running the bak know the price of their stock is just too cheap and should appreciate substantially in the years ahead.

It really is a perfect storm. We have cheap banks in solid financial condition that have strong demographic and economic reason to sell. We have a willing pool of buyers. We have insiders who think their stock price is too low. Just to give us an additional catalyst we have strong successful activist investors pushing for change and higher stock prices.

The years ahead are going to be a lot of fun and wildly profitable for those of us investing in community bank stocks. I hope you join us and cash in on some these gains for your retirement fund, college fund or whatever long term investment goals you may have. To encourage you a bit more i have put together a special offer for you here

http://vip.marketfy.com/takeover/

I hope you join us.

Tim

Bundle Up

I love to spend my time researching stocks, uncovering bargains and potential winning stocks. I like to write and talk about markets, stocks picks, investing approaches and theory as well as anything else that might come to mind. One of the reason I started the Deep Value Letters was to provide a way to communicate my best ideas to help you make money and along the way build a community of like-minded value investors. I didn’t want to start a hedge fund or go back to a Wall Street firm and deal with all the headaches and red tape involved in that part of the investing world. I like the newsletter approach as it allows me to share ideas and teach what I know to others about Deep Value Investing and markets in general.

As I said I love the research, the reading and the interacting with people. What I don’t like so much is the marketing stuff and figuring various promotions and campaigns. It is a pain in the backside and takes time away from what I love to do. Now it seems I have painted myself in a corner. I felt and still feel that having a deep value portfolio for domestic stocks, one for international stocks and one for income investors was the best way to provide investors information about the markets that most interested them. Not everyone is looking for income and not everyone want to invest just in the US so having three letters made sense. Still does.

However that means three products that I have to market and sell and listen to the marketing kids tell me how to attract investors attention and get them to subscribe. I end up spending far more time thinking about various promotions and packages that I like. I almost feel like I am back at some firm again and actually wearing shirt, tie and shoes to work . I really don’t want t spend my time doing that.

So what I have done is to combine all three newsletters into one package. All subscribers get all three newsletter, Deep Value, International Deep Value and the Value Income Letter. The price remains the same as it was for just Deep Value but you get all three letters for the price of one. That means one marketing plan, one pricing scheme and less meetings for me; and a pretty good deal for you.

You get access to all three portfolios all the time. You get real time alerts to any buy or sell decisions by email or text right away. You get weekly commentary and updates on everything related to the portfolios. You get access to the resource pages with academic papers. Interviews with Walter Schloss , Ben Graham and others that I have found over the years as well as e-books on value investing. You get weekly reading lists pointing to towards articles and information I found of interest and value during the week. You get email access to me to ask questions about the portfolio, stocks you are following or any other subject that is on your mind.

The Deep Value approach to investing has proven itself over the years to provide market beating returns We focus on buying safe and cheap stocks and holding them until they are fully valued and back in favor on Wall Street. Rather than trying to time or game the market we adopt a private equity mindset and let time and value provide us with returns measured in multiples not percentages.

If you are not familiar with the type of returns this approach can provide let me give you a few examples. Everyone likes to talk about a three to five year horizon so lets look back three year to June of 2011. Since then the stock market has risen about 67% which is a very nice return.

In my column on RealMoney.com I was suggesting readers buy undervalued stocks and holds them until they fully recover. These Deep Value picks have done just a little bit better than the market overall. Micron Technology (MU) is up 291%, Brown Shoes (BWS) has risen by 183%, Allstate (ALL) by 110%,and Arris Group has gained more than 152%. Time and valuation have done their job and provided patient deep value investors with huge market beating gains.

It doesn’t always take that long of course. In June of 2012 I suggested investor buy bargain stock like AEGON (AEG) which has already gained 119%, Penn Virginia (PVA) which is up 141% in just two years. and Patterson UTI an oil services company that has gained 159% already.

I am not trying to brag here (well, okay maybe a little) but to give you examples of stocks that I publicly recommended based on the principles of deep value investing. This will give you some idea of what to expect from the Deep Value portfolio stocks sections you get when you become a member.

One price, three Deep Value Portfolios with all commentary and complete access with questions and comments for 58% than the unbundled package It will be your first bargain purchase of a great value as you start down the path to investment success as a deep value investor.

http://vip.marketfy.com/value-combo/

Cheers

Tim

Cheap Stocks, good books, baseball and lot of cash.Perfect

The hardest thing you will ever do in your life, especially as an investor is today’s world of short term thinking, is nothing. This week everyone has been looking for ways to respond to the fed meeting, the crisis in Iraq or whatever other flavor of the day they think might move prices in a desired direction. Except for the rare 1/10 of 1% that actually is successful at the trading game in the long run this is just a waste of time for most of us mere mortals. Right now the market is not clearly cheap nor egregiously overvalued. I describe conditions as on the high side of fairly valued but not yet ridiculously priced.

I am comforted that Howard Marks of Oaktree is in agreement. He is way smarter and a much better investor than I so when he told a recent Morgan Stanley gathering that “Today’s markets call for caution, not aggressiveness, and my mantra for Oaktree for the last almost three years now has been move forward, but with caution. I don’t think that prices are so high or the outlook is so bad that you shouldn’t move forward and invest. But I think that prices are not so low and the outlook is not so good that you should not include a very, very healthy dose of caution,” I was comforted by the fact that my views are not totally idiotic.

I could tell you that I have a bunch of fancy models and macro data to help me navigate a path through the markets but I would not exactly be telling the truth. I use one metric and one metric only to drive my decision making. If I can find stocks that are both safe enough and cheap enough I buy them. I find this keeps my brain from overpowering my portfolio and joining the fear and greed crowd. I am not wild about market levels. As a value investor how could I possibly be after a five year rally? In spite of that we have found a few things that passed the safe and cheap tests and I bought them regardless of my thoughts on geopolitical situations and macroeconomic musings.

The nice thing about the value approach is that it forces you into stocks when no one wants them and out of them when everyone loves them. We are closer to the latter than the former but there are still pockets of cheap. I bought a net-net stock that declined to my purchase price this week. I have picked up some cheap real estate related companies that give exposure to student housing and multifamily properties, and we scooped up a shallow water driller. All of them were purchased around 80% or less of book value so in spite of the high stock market levels there are a few bargains around.

We also still have a lot of cash and are less than 50% invested in the deep value portfolios. I hold a higher percentage of exposure in the income and banking portfolios but in both international and domestic deep value there just are not enough stocks to get fully invested. We buy what we can find and we wait. We have a nice mix of miners, real estate, banks, and energy stocks along with some other very cheap stocks. We have several stocks trading at a discount to net current asset value. I run my screens every day and right now there is nothing else to do that is both safe and cheap. So we do nothing for now.

It is not easy at times. I have been at this for some time now and have developed pretty good disciplines over the years. Even I find it hard at times to just sit still especially when people around you are crowing over recent glamor stock and trading successes. I just have to remind myself that I have in fact seen it all before. I know guys who made a ton of money in internet stocks and other who rode the real estate boom. Most of them ended up trying to borrow money a few years later to “get back on their feet.” Not all of them of course. A few made it and kept it but they are in the minority.

The real money is made with value and time. We will make most of our money in our investing lifetimes in the aftermath of major events and we just haven’t had one in the past few years. Until we get some inventory creation event we buy what we can find and bide our time. There a lot of stocks around the world that are safe and almost cheap and many of them will fall to the levels where we can pounce.

In the meantime I am still amazed that more people are not involved in the Trade of the decade in small bank stocks. There are opportunities there to buy banks at 80% or so of tangible book value. Many of these banks will get taken over in the post crisis regulatory environment and some others will grow their way into becoming a larger regional presence. Either outcome leads to fantastic profits for those who scoop up these sound financial institutions at the current bargain levels. You have to be patient and these are small less liquid stocks and the whole thing plays out over years rather than day. The profits to those smart enough and patient enough to take advantage of the trade of the decade should be measure in several multiples of the prices paid today and not mere percentages.

At least the baseball gods and publishing industry are making it easier to relax and do nothing right now. All the races are pretty close still and last night Clayton Kershaw of the Dodgers threw a no-hitter in one of the best individual performances ever in my opinion. There hasn’t been much in the way of business books so far as most have been of the be a leader and day trade our way to millions by a week from Tuesday variety but there some interesting ones on the near horizon. The entertainment reader however will find a host of new offerings worth consideration.

We have cheap stocks, good books , baseball and lots of cash. Right now that strikes me as perfectly positioned.

Cheers,

Tim

Song of the week

The Value View: Liquidity, Risks, The World Cup and Good Books

Today I want to talk about liquidity on a couple of different levels. First when we look at markets around the world it is pretty easy to see that we are still awash in cheap money. Interest rates are low and there is little sign that this will change anywhere anytime soon. In some part of Europe the recent ECB moves have taken yields to ridiculous levels with both Spanish and Italian bond yields lower than corresponding US rates. Investors in search of a return are forced into riskier assets with equities being the chief beneficiary of forced asset allocation that has gone on for the past five years. As long as this is the case there are not going to be any economic or fundamental risks to the global equity markets. The only risks will be geopolitical in nature.

Unfortunately there are lots of those at the moment. The situation in Iraq has leapt to the top pf the leaderboard at the moment. I would say the nation is on the verge of a civil war but the government troops do not seem to have much desire to fight back against the insurgents. I have a hard time seeing how an Islamic Caliphate being established in the region benefits any other nation but we are perilously close to exactly that happening. Just the rise in oil prices from more instability in the region could be a disaster for some of the weaker economies around the world.

The Ukrainian situation is far from settled right now. There is still fighting in the Eastern region of the country. Japan and China are still spitting at each other over a variety of issues and the potential exists for that to spin dangerously out of control. China has been pretty aggressive towards many of its neighbors in the region and seems to care little what the rest of the world thinks about their actions. The other side of all this is that Russia and China are forging closer ties and I just cannot imagine a scenario where a deeper political and economic relationship between the two nations is of nay benefit to Western nations.

We do indeed live in interesting times. There is little you and I as individual investors can do to contain geopolitical tensions. Nor can we predict the outcome of all these little global conflicts and power grabs or their eventual impact on stock prices. It behooves us to be aware of them and keep ourselves in a position to react what markets actually do instead of trying to foolishly predict what they might do. Sticking with a strategy of only buying safe and cheap stocks has holding a lot of cash due to a lack of opportunities right now and I have to say that in such confusing times this does not disturb me in the least.

The other level of liquidity I want to talk about today is on the individual stock level. I am always amazed that everyone I talk to owns the exact same stocks as everyone else and one of the reasons given is liquidity. Now I am not sure exactly why an individual investor needs to be able to fire off hundreds of thousands of a shares in a millisecond but many of them seem to feel the need. I do know that the ability to do so leads to some really bad investing decisions. It seems the ability to buy and sell instantly often leads to a compulsion to do so and this is rarely good for long term returns.

I addressed this subject in an article that appeared today on Investorplace.com saying “Warren Buffett once opined (and I’m paraphrasing) that you should not buy a stock if you would not be comfortable owning it if the stock exchange were to close down the next day and not open until five years later. That kind of attitude would keep us from trying to make silly guesses about the next quarterly earnings report or taking immediate action when the share prices of our company cross some magic line. Instead, we would think more about the long-term value of the business than we do the day-to-day price movements. And we certainly would pay a lot more attention to the price we pay for our shares in relation to asset value and earnings power.”

We own a lot of small cap stocks in all of our portfolios and some of them are illiquid enough that it can take days and even weeks to get a positions filled. Knowing that we are more or less stuck with the positions means that I make sure that the stock is truly cheap and truly safe. We buy with the intention of holding until it works so the day to day trading volumes are not as important as the value of the business itself at any given point in time.

All eyes are turning towards Brazil and the World Cup this week and I just cannot work up a give a darn. I wish I could. Orlando is a little bit soccer crazy and I would love to be down at one of the little Irish pubs rooting on my team, swilling beer and yelling GOOOAALL with some good friends. The truth is that watching soccer has a somnolent effect on me and I would most likely end up sleeping in a corner instead of watching the match or whatever it is called. I will spend the next month or so doing what I always do, watching baseball and reading while trying to avoid the Word Cup conversation. At least this time the event is held on this side of the pond so 7am beer drinking won’t be the big thing it was last time around.

I have no idea what the world and the markets will do in the weeks ahead. I will join my good friend Mr. Womack in waiting for an inventory creation even whether on the company specific or broader based to get more deeply involved with stocks. We own some great safe and cheap stocks and lots of little banks to take advantage of the trade of the decade so I am comfortable with our position here.

Fortunately the publishing industry has decided to assist us with our quest for patience and have issued some great new books to fill up our time. Two new collections of stories, Rogue put together by George RR Martin of Game of Thrones fame and Faceoff compiled by the creator of Jack Reacher, Lee Child, look especially entertaining and contain stories by some of my favorite writer. I also just ordered the John Waters book Carsick which tells the tale of the unconventional director hitchhiking across America. That. Along with the Orioles and Blue Jays should keep me busy for the next few days.

Cheers.! Have a Great Father’s Day Weekend!

Tim

Song of the week:

The Value View: Numbers, Energy , Banks and Norah Jones

It is a tricky if not downright difficult to be an investor right now. The markets are at all-time highs but have really been tracking sideways for the most part of 2014. We are up about 5% as measured by the S&P; 500, 1% or so on the Dow and actually down as measured by the Russell 2000 ETF (IWM). Everyone has an opinion about what the markets are going to do and they are not shy about grabbing air time to share these precious pearls of insight with you. They reserve the right to change their mind, frequently if necessary. Last month David Tepper told us he was worried. Today he told CNBC that most of his concerns had been alleviated and all was well with the world and the market. Personally I am a horrid market timer and a worse macro-economic prognosticator so I try to relay in simple math to make my stock market decisions.

My analysis of the stock market comes down to one simple question. Can I find cheap stocks? If the answer is yes I buy a bunch of them. If it is no I buy what I can find and hold the rest of the portfolio in cash. Now as Victor Niederhoffer once told me if something can be counted then it must be so I did a little test of the theory. I turned for help to Tobias Carlisle of Greenbackd.com who is much better than I at crunching up numbers. He was kind enough to send me ten years of quarterly information as to the number of stocks at the end of each quarter that traded below book value. We limited the universe to just those stocks with more than $50 million of market capitalization. Tobias was also kind enough to include columns that showed how many new bargains had been created each quarter and how many had appreciated back over book value in the three months.

Here is my take away for sorting and studying the number a bit. On average there were 631 stocks over $50 million market cap trading below book value each quarter. 176 new bargains were created in the average quarter and 163 new stocks fell below book each quarter. Any quarter than had 1000 or more stocks trading below book value were true Womackian moments with plenty of cheap stocks and you should have been buying with both hands. Any quarter that created more than 300 new bargains was also a grand time to buy stocks. If there 200 or fewer bargain stocks it was not a good time to buy and anytime less than 100 new bargains were created in the prior three months it was a good time to exercise some caution and delay purchasing stocks.

With that in mind let’s look at where we are right now. At the end of the first quarter there were 556 stocks trading below book value and just 86 new bargains created. Not a time for Mr. Womack to drive into town but not quite horrific either. When I fired up my screener this morning I found that as of right now there are 294 stocks trading below book value and just 60 new stocks had dropped in the last three months and were now potentials bargains. As we drift along we are finding fewer and fewer cheap stocks. We find even fewer safe and cheap stocks as placing simple credit restrictions like a debt to equity ratio of less than .40 and a current ratio of more than 2 drops the list to just 85 stocks.

Jae Jun over at Old School Value did something similar with net-net stock snot too long ago and found that when there were a triple digit numbers of stocks trading at two thirds of NCAV it was a great time to be buying stocks and when that number was in the single digits the returns going forward lessened. I looked at this morning and found just 16 stocks trading at this bargain level. As with my book value counting approach we are not at the absolute no-no levels but we are not that far from it either.

So is this a sell signal and time to run from the markets. In a word no but it does mean this is no time to relax your standards or be overly aggressive about buying stocks. You need to stay small and move slow and look for those small pockets of the market that are really cheap .Leave yourself plenty of room to scale into new purchases. Keep an eye of the full and fair value of your portfolio holding and do not be shy about selling those stocks that have reached that level.

There are some small pockets of value remaining in the market. In recent weeks we have bought small off the radar REITs, energy companies focused on North American operations and of course in the International Portfolio a couple of Greek banks. I am close to adding to a couple of my mining stocks they continue to fall faster than the Tampa bay Rays have plummeted through the AL east. I am pretty sure the Rays will recover and over time so will the miners.

The other area that is still creating cheap opportunities is the community bank stocks. I am continually amazed by how many people who are not taking advantage of this incredible opportunity to rack up long term profits. Many of these stocks are still very cheap in the aftermath of the credit crisis and the road ahead is greased for profit. These little banks will either get taken over by larger banks looking to spread the costs of the new regulation and compliance measures over a larger asset base or they will find a way to gain market share from the big bans and prosper mightily over the next decade. We started the Banking on Profits portfolio and have had four takeovers with an average gain of more than 40%. 9 stocks in the portfolio are up more than 25% in the past year. 6 of the 10 stocks in the 10 Tiny Banks e-book we put out at the first of the year have tripled the markets rate of return year to date. This is just the first inning of the community bank story and we are already seeing strong gains from these stocks. If you aren’t getting your long term money to work in this sector you are overlooking the best opportunity for huge gains I have seen in some time- in fact since the last community bank sell off in the 1990s when the small bank indexes rose tenfold over the next 8 years.

The numbers clearly spell out that it is time to be cautious when it comes to the broader market. This is not the time to chase the stocks or decide that relative value suddenly makes sense. Stick to the basics of deep value investing and practice patience. Look to buy some little bank’s below 80% of book value. Buy the Greek Banks (but NOT National Bank of Greece. They probably have to recap again). Look at selected cheap energy stocks. Hold lots of cash.

While you are at it hope that the Cubs trade Jeff Samardzija to Baltimore. Read the new Jeff Shaara novel. Get ready for summer.

Cheers!

Tim

School is out here and its finally getting warm up north so this week’s song of the week is :

4 breakout stocks with double-digit returns…

This morning, Banking on Profits subscribers gained over 60% on the announcement that National Penn (NPBC) acquired TF Financial (THRD) …

… Marking the 4 th bank takeover we’ve profited from in the year alone.

6-2-2014 – Jefferson Bancshares was acquired by Home Trust (+ 20% Profit)
11-12-2013 – First Merchants acquired CFS Bancorp (+12% Profit)
3-2-2014 – Cameco Financial was acquired by Huffington Bank (+64% Profit)
6/4/2014 – TF Financial acquired by National Penn (+60% Profit)
You see, subscribers originally bought into TF Financial a year by following Banking on Profit’s simple rule – buy small banks at less than 90% of its tangible book value.

Now, subscriber to the Banking on Profit portfolio are reaping the rewards as they gain over 60% from their original purchase cost.

So while THRD has already paid off, there are 37 other undervalued banks ripe for takeovers in the Banking on Profits portfolio that you don’t want to miss out on.

That’s why – for today only – I want to invite you to join Banking on Profits for just $495 (49% off) so you can be sure to reap the rewards from our next undervalued find.

But don’t delay –

Your name must be on my list before midnight tonight so that you’re ready to receive your first real-time update recommendation as early as Thursday.

http://vip.marketfy.com/takeover

Consider this the first of many profitable investments.

Cheers,

Tim Melvin

Banking on Profits

PS – Because these stocks are so underplayed, I only have a limited amount of seats available in the Banking on Profits portfolio community.

So click here to save 49% and start getting profits that could have you consistently generating double-digit gains.

http://vip.marketfy.com/takeover