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Best of the Best: Today's Top Investment Ideas
Grow with US Global (GROW) Print E-mail Digg It!
Tuesday, 01 July 2008

 "US Global Investors (NASDAQ: GROW) is Frank Holmes’s five-star fund family, Texas," notes Mark Skousen, who now features the mutual fund operator in The Turnaround Trader.

"During the first five years of the commodity boom, U.S. Global’s stock doubled and then doubled again. U.S. Global’s funds, such as its Global Natural Resource Fund (PSPFX) and Global Accolade Eastern Europe Fund (EUROX), were top performers.

"I recommend both in my monthly newsletter, Forecasts & Strategies, and my subscribers have profited handsomely. But as far as the parent company is concerned, in the past year, GROW’s revenues and earnings stalled, and the stock fell in half. 
 
"Yet at the same time, the funds continue to perform well, especially in natural resources. And the money still keeps coming in. Profit margins exceed 22%, and earnings could advance.

"For the first quarter ended March 31, U.S. Global recorded $2.12 million in net income, or 14 cents per diluted share, on revenue of $12.26 million. That was down slightly from the same quarter a year ago. However, average assets under management rose 14% to $5.50 billion!

"Right now, GROW is selling for 20 times trailing earnings, which is half the P/E ratio on Janus Capital -- just for comparison. 
 
"Not surprisingly, U.S. Global is showing signs of recovery, and the stock has jumped ahead this year.  Let’s add it today to our Turnaround Trader portfolio. For those more adventuresome, consider buying the December $22.50 calls."

Mark Skousen's Freedomfest  ... Last chance!

Editor's note: Mark Skousen will be hosting FreedomFest in Las Vegas in beginning July 10th -- an annual gathering of sophisticated investors and intellectuals. The 3-day conference includes a World Economic Summit as well as panels on topics as geo-politics, science & technology, and health.

Speakers include Steve Forbes, The Wall Street Journal's Stephen Moore, Congressman Ron Paul, Jeremy Siegel of the Wharton School, tech guru George Gilder, US Global Investors CEO Frank Holmes, plus top-tier newsletter advisors Daniel Frishberg, Keith-FitzGerald, Louis Basenese, and John Christy.

For more information, visit the Freedomfest  website.




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Investor tour to China

Jim Trippon, editor of The China Stock Digest, is now scheduling his next investor tour to China.

The two-week trip, October 8 - 21 will visit, Hong Kong, Shenzhen, Shanghai, Macau, Beijing and the Yangtze River Delta. Visit here for more.


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Mark Skousen's latest book, “EconoPower: How a New Generation of Economists is Transforming the World” (Wiley & Sons), is available for $16.47 (plus shipping) from Amazon.com (retail price is $24.95).

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Global ETF expert Carl Delfeld of Chartwell Advisors is hosting a investment tour from January 26th to February 2nd, 2009. The luxury tour visits Singapore, Malaysia and Thailand plus 3 days on the Orient Express. For information, call 877-202-4939.


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