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Dear friend,
I hope you don't mind my calling
you "friend." I do it because I think you're the same kind
of investor I am. And I think it could be profitable for us
to get to know each other better.
My name is David Fried.
My investment strategy has consistently beaten the market, from
the bull market of the 1990s through the ensuing bear market
and its subsequent recovery. Whether the market is bullish,
bearish or flat, solid or wobbly, my portfolios are trouncing
their benchmarks.
Let me warn you up front: my investment
advisory service isn't for speculators, or someone who's
in and out of the market every time the wind shifts. If you expect
me to guarantee you'll make a killing every month, forget it.
But I am proud of accomplishments
like these*:
As of March 31, 2008, all
six of my model portfolios have substantially beaten the market
since inception. For instance:
- My
20-Stock Buyback Index, launched in March 1997, gained
+463.53% vs. a paltry 64.96% for
its benchmark, the S&P 500, over
that time (3/97 through 03/08).
- My Stock-Pickers Portfolio, launched
in January 1996, gained +293.53% vs. just
92.98% for its benchmark, the S&P 500, over that time
(1/96 through 03/08).
- My
Health & Bio-Tech Portfolio, launched in December 2001,
is up +246.11% vs. an anemic 13.95% gain in
its benchmark, the S&P 500 over that time (12/01 through
03/08).
This is the kind of performance
my subscribers are enjoying:
- Avon Products (AVP), bought in December 2005 and sold in November 2007 for a gain of 39%
- DST Systems (DST), bought in December 2004 and sold in November 2007 for a gain of 65%
- Merck (MRK), bought in December 2004 and sold in June
2007 for a gain of 73%
- Berkshire Hathaway (BRK/B), bought in July 1998 and sold
in June 2007 for a gain of 51%.
- Rex Stores (RSC), bought in July 2001 and sold in June
2007 for a gain of 48%.
- Big Lots (BIG), bought in November 2006 and sold in June
2007 for a gain of 42%.
- Intuit (INTU), bought in December
2004 and sold in February 2007 for a gain of 42%.
- Synopsys Inc. (SNPS), bought
in June 2005 and sold February 2007 for a gain of
51%.
- Yankee Candle (YCC), bought
in December 2005 and sold 11 months later for a 35% gain.
- Community Health Systems (CYH), bought in December 2004 and
sold a year later for a gain of 42%.
- Papa Johns Int’l (PZZA),
bought in June 2004 and sold in December 2005 for a gain
of 102%.
- SkyWest
(SKYW), bought in October 2002 and sold in November 2005 for
a gain of 96%.
- Pepsi (PAS), bought in September
2003 and sold in June 2005 for a gain of 70%.
- Altria (MO), bought in April
1995 and sold in December 2004 for a gain of 338%.
- New Plan Realty (NXL), bought
in April 2000 and sold in December 2004 for a gain
of 93%.
- Stamps.com
(STMP), bought in June 2002 and sold in December 2004 for
a gain of 74%.
- Dial
Corp. (DL), bought in September 2003 and sold in December 2003
for a three-month gain
of 39%.
- Union
Bancal (UB), bought in August 2000 and sold in December 2003
for a long-term gain of 130%.
These are just a few
in the long, long line of successful trades. No wonder all six
of my model portfolios are soundly beating their market benchmarks.
As of March 31, 2008 :
| Portfolio |
Inception
Date |
Since
Inception |
Since
Inception |
Outperformance |
| Buyback
Stock-Pickers: |
Jan-96 |
293.53% |
S&P 500 92.98% |
200.55% |
| 5-Stock
Buyback Dogs: |
Mar-97 |
235.67% |
S&P 500 64.96% |
170.71% |
| Buyback
Income Index: |
Mar-97 |
181.45% |
S&P 500 64.96% |
118.49% |
| 20-Stock
Buyback Index: |
Mar-97 |
463.53% |
S&P 500 64.96% |
398.57% |
| Buyback
High-Tech: |
Jan-00 |
27.61% |
NASDAQ -44.36% |
71.97% |
| Buyback
Health & Bio-tech: |
Dec-01 |
246.11% |
S&P 500 13.95% |
232.16% |
Maybe that's why I'm a favorite
of CBS Marketwatch, Hulbert Financial Digest, CNBC and
Bloomberg, to name a few.
Legal "inside" trading
The secret? Legal "inside" trading.
When a company buys back its own
shares in the open market, the price of that stock usually
heads up. Not always the next day, mind you, but soon.
Why? A company usually buys back
its own shares when senior executives, the ultimate insiders,
determine that the market is selling them much too cheaply.
After the buyback, the company is still the same company. But
there are fewer outstanding shares, so each of them is worth more.
Earnings per share (EPS) rises too, often dramatically.
Now anybody could just list companies
that announce buybacks. I have been around long enough to know
that not all buybacks are created equal. For instance:
- Some companies announce buybacks
but don't follow through.
- Some that announce buybacks
have better prospects than others.
- Some buybacks aren't large enough
to affect the value of the stock.
At The Buyback Letter, we
separate the contenders from the pretenders. We take companies
that announce buybacks and analyze them more rigorously than they've
ever been analyzed before.
Then we make flat-out recommendations
on what to do. No gobbledygook, no doubletalk. "Buy" means "buy,"
"sell" means "sell" and "hold" means "hold." You get these recommendations
instantly by e-mail, while the profit opportunity is still at
its peak.
Our unique newsletter costs
less than you could make in one smart buyback trade.
For just $195 per year, or $59
per quarter, you can get our one-of-a-kind, unbiased newsletter
with one-of-a-kind timely information that you can put to
profitable use immediately.
Don't take my word for it. See
for yourself with a FREE 30-day trial.
You can try us out FREE for
a full 30 days before deciding whether it's for you. If it isn't,
just let us know and you won't be charged. Start NOW.
Click here for a FREE 30-day
trial.
Sincerely,
David Fried, Editor
The Buyback Letter
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