This Little-Known Service of Mine Can
Double Your Money Every 2.1 Years

If You Start Today, I’ll Cover 90% of the Subscription Fee…

Dear Reader,

It can get addicting – growing your money this fast. If you already receive my special wealth-building alerts, you understand.

Take last Thursday, for example…

I sent the “Buy” alert to subscribers at 9:45 AM. By 11:00, the stock climbed 51%.

It’s a “textbook” play for this advisory service.

Every stock I recommend comes with a minimum target gain of 48% – a rate of return that doubles your money every 2.1 years… before compounding.

We hit this 48% target gain virtually every time.

In fact, three of the stocks I’m recommending right now have already exceeded it.

And that’s normal.

The 48% target gain is just a minimum. So it’s not uncommon for the stocks I recommend to go much higher than that.

Subscribers who followed my instructions on August 12, for example, had a chance to lock in a pair of doubles– gains of 116% and 175% – in a single day.

You’ll love it when this happens.

In the next few minutes, I’ll show you how I can do this with so much consistency. You’ll also find out how to get all of my recommendations delivered to the e-mail address of your choice.

At that point, all you’ll have to do is follow my instructions… and prepare to double your money every 2.1 years.

I’m making it incredibly easy to start, too… considering the timing of things.

Most people aren’t quite ready to pay for anything more than the essentials right now. I understand this… and happen to be one of them. Maybe you are, too.

There’s just too much lingering economic uncertainty.

Thing is, I know this research service can give you an honest, practical shot at financial freedom. And I wouldn’t want a modest spending decision to stand in your way… especially since you can make so much more money once you start.

My publisher, Julia Guth, feels the same way. So we made a special arrangement for you. We’ve never done anything quite like it.

I’ll get to the details shortly. For now, just know that Julia graciously agreed to cover 90% of your subscription fee…

The Money’s Exceptionally Good Right Now

The 48% target gain has always been my benchmark. That won’t change.

It’s just that the gains are coming in faster than normal right now.

The “thank you” notes from subscribers say it all, like this one from Johnny T.

“Wow! Bought [your recommendation] at 9:45, and sold [it] at 12:30 for a 200% profit in less than three hours! Got any more of those? : ) ”

Yes, Johnny. Plenty more…

There are 43 companies on my watch list today. And every single one of them boasts an exceptionally low “Density Ratio,” which is why the gains are coming so quickly.

I’ll explain the Density Ratio shortly. Just know that this is rare.

According to Barron's, it's been 23 years since we've seen this many low-density stocks. And they won’t stay this way for long.

As you’ll see, when Density Ratios get this low, the gains can come at any moment… just like they did that Thursday morning I told you about. It wasn’t the first time we’ve seen such a big short-term move.

Take Ocean Power Technologies, for example.

On March 15th, you could have bought it for $4.63 a share. But based on its "Density Ratio," the stock was really worth $5.27 – a 14% difference.

It took just five sessions for the stock to rush higher. And then it ran up another 21%. Investors with a modest $5,000 stake could have made a quick $1,470.

It happened to Goodyear Tire, too.

Shares were less than $5 in February, but carried an unusually low Density Ratio. Now you can't buy them for less than $17.92. The stock's up 258% so far – blowing past our 48% target gain.

I could go on. But time is a factor, so I'd rather show you the low-density stocks I’m tracking now.

  • Like the Atlanta-based company "fixing up" a beleaguered U.S. housing market… and collecting a steady stream of cash in the process. Business is so good right now, shares are worth $46.90 – based on their unusually low "Density Ratio." Yet you can still buy them for just $27.33 – a chance to make as much as 71%… or $7,100 on a $10,000 investment.

  • Or the innovative small-cap revolutionizing the way motion pictures are produced, filmed and distributed throughout the world – a model that will reinvent movie creation as we know it. Based on their current "Density Ratio," shares are worth $23.90. Remarkably, you can still buy them at $3.25 apiece – for now, anyway – and pocket a 635% gain.

  • Or the mobile handset manufacturer that markets its innovative products solely to China's booming middle class – a consumer group the McKinsey Global Institute expects to increase by tenfold over the next two decades. The company's shares still trade for just $3.19, well below the "Density Ratio's" value of $8.95.

Notice that the potential gains are all well above the 48% minimum. The list goes on, too. Again, I'm tracking 43 of these low-density stocks.

So what is this "Density Ratio"? And how does it help me hit our target gains?

That's exactly what I'm going to show you. You're going to have a chance to book some incredible gains in the short run – potentially more than $4,750 right out of the gates.

In many cases, the gains could be much greater.

$4,750 Per Trade

Here's a look at the potential gains for a few more of the companies I'm tracking.

Based on current Density Ratios, this is what you can expect to make on a $10,000 investment…

  • As much as $4,750 or more on this integrated ocean cargo carrier, which transports everything from refined petroleum products to vegetable oil… and generates gobs of cash flow.

Leading Dry Bulk Operator

  • This international transportation giant – trading well below what it's really worth – could hand you a quick $6,400.

International Transportation Provider

  • And you could make as much as $8,600 on this company that specializes in sending high-school graduates to college – kids who otherwise wouldn't be able to pay for a higher degree.

Student Loan Provider

Just knowing what the density ratio is could give you a significant edge among retail investors… since most people don't know how to calculate it.

You can use it over and over again to make exceptional $4,000 - $8,000 short-term gains.

I use it, of course, to help my subscribers hit our 48% target gain. This gives them a realistic chance to double their money every 2.1 years.

Here's how it works…

When this Number Gets Too Low,
A Price Surge is Imminent

It all comes down to cash – the most liquid asset a company can have.

Executives love cash. They can use it to do anything – pay down debt, acquire competitors, invest in new products…

Cash gives them options. Especially if they have a lot of it. And that's why the Density Ratio is so useful…

It not only shows you exactly how much cash a company has in the bank… It also shows you how much you can pay for that cash – as an investor. It's not always a dollar-for-dollar exchange.

For example…

Let's say Company XYZ has $100 in the bank and 100 shares of stock. That means there's $1 in cash for every share of stock.

If the stock trades for $1, then the Density Ratio is 1. The price per share and the cash per share are the same – a one-to-one ratio.

But that's rarely the case.

Why are the Density Ratios of Such Good Businesses So Low Right Now?

"In a liquidity crisis, as we have seen all too recently, a sudden tightening of credit sets off a vicious cycle of margin calls that lead to forced sales, which in turn cause asset prices to plunge, and so on."

– The New York Times
August 8, 2009

Most of the time you have to pay a premium.

Right now, for example, the Density Ratios for 488 companies in the S&P 500 are higher than 1. You have to pay more for these shares than they're worth in cash. That cuts down your upside because you're already "overpaying" for them.

But in the rare instance a Density Ratio drops below 1, you have an opportunity to make some fantastic money.

This is when a stock is worth $10 in cash, for example, yet trades for less… say $7.50. Or it's worth $1 and trades for 75 cents, etc…

Whenever smart investors can buy a dollar for 75 cents or less, they do.

That's because it doesn't take long for the market price to surge back to – and often above – the cash per share value.

It's just too hard to keep stocks like these down.

They're like beach balls the market's holding under water… just moments from slipping free.

And once they do, the gains are staggering.

Take a look, based on a $10,000 investment in some of the current opportunities. (Notice that when the Density Ratio gets smaller, the potential gains get bigger.)

Density Ratio
Potential Gain
Advanced Imaging Innovator
Railcar Manufacturer
Niche Technology Firm
Int'l Holding Company
Agriculture Bus. Developer
Regional Banker
Major Fin. Service Provider
* Speculative Opportunities

You can see how fast the gains can add up. And it gets even better…

You Can Make All of the Money in a Day

Companies that can be bought for less than they're worth in cash make ideal takeover candidates.

It makes perfect sense.

Smart companies rarely pass up an opportunity to take over a good business with steady cash flows… especially if the smaller company’s bank account is on sale.

Again, whenever you have a chance to buy $1 for 75 cents (or less), you should take it. And savvy executive teams do just that.

That's why if you don't pick up at least a few of these shares now, someone else (a corporation) is likely to buy all of them… at once.

Which is why shares like these can surge so high in just one day – typically by 48%, as you’ll see.

The trick, of course, is to invest right before prices take off. And that's why I'm writing you today…

Welcome to the TakeOver Trader

My name's Louis Basenese, Editor of the TakeOver Trader – an elite advisory service designed to show you how to generate big short-term returns by investing in takeover targets. More often than not, those targets have low Density Ratios.

This is one of the most powerful investing strategies you can employ.

Here's why…

  • According FactSet Merger Stat LLC, the average one-day return for shareholders of the target company is 48%. (Again, that's just the average. My subscribers have had the chance to book short-term gains as high as 1,233%.) This is why my minimum target gain is always 48%.

  • Takeover targets like these are some of the safest companies you can own. Now you know that when Density Ratios are this low, you can buy shares for less than the company's worth in cash. I'll say it again: Whenever you can buy $1 for 75 cents or less, you should.

  • You can identify takeover targets ahead of time because there are several distinct qualities all of them share.

I know a lot about this last point because I used to track these deals - from the inside – at one of the country's leading investment and brokerage firms. I was one of their top Mergers & Acquisitions analysts.

So let me share this inside information with you… and show you how I can uncover potential takeover bids with so much consistency. Remember, you’ll have a chance to double your money every 2.1 years.

The 7 "Bulls-Eye" Takeover Triggers

Takeover Trigger #1
A Low Density Ratio: The Company Has Tons of Cash

The saying "cash is king" especially holds merit when it comes to identifying takeover stocks – for two reasons…

The Urge to Surge

Credit's tight, but M&A is booming anyway…

"Sun Microsystems Shares Surge 64%; Negotiation of Takeover by IBM Reportedly Underway"

– March 18, 2009

"Inovio Shares Surge on News of Experimental Flu Vaccine Approach"

– August 4, 2009

"Mosaic Shares Surge After Report on Vale Bid"

– July 16, 2009

"Crucell Shares Surge on Wyeth Takeover Talks"

– January 8, 2009

"Asciano Shares Surge on Takeover Talk"

– April 20, 2009

"BankUnited Shares Surge On Takeover Rumors"

– May 2, 2009

"ABB Shares Surge After Takeover Bid"

– April 28, 2009

"Starwood Shares Surge on Takeover Speculation"

– Jan. 4, 2009

"CBK Shares Surge Again on Takeover Speculation"

- May 7, 2007

"Emerald Energy Shares Surge on Possible Takeover Bid"

– July 14, 2009

"HudBay Shares Surge on Takeover Talk"

– April 24, 2009

"Pure Energy Shares Surge After BG Makes Rival Offer"

– Feb. 10, 2009

First, as I said earlier, companies with sizeable amounts of cash on their balance sheets inherently hold value for an acquirer.

When an acquirer buys a cash-heavy company, it gets all the cash and can spend it as it sees fit. It's like an instant rebate.

Second, cash, specifically cash flow, is a vital factor potential acquirers consider when evaluating a takeover.

There is an important difference between earnings and cash flow.

Earnings can be gained from contracts and future deals that haven’t happened yet. And they can go up or down without any real money changing hands.

Cash flow, however, is a measure of cold hard cash the company actually spins off. And while you can manipulate earnings through accounting decisions (think Enron), you can’t fake cash flow… not without telling outright lies.

So the best way for an acquirer to value a company is to take into account its cash flow. And the stronger, higher and more predictable it is, the more valuable and likely the company is a takeover target… especially if its Density Ratio is low, as we’ve seen.

Takeover Trigger #2
Increasing Consolidation: Takeover Fever is Sweeping the Company’s Industry

Industries naturally go through cycles of consolidation – waves of mergers, acquisitions and takeovers. It’s most pronounced when organic growth rates start to slow and profit margins get squeezed from too much competition. During such times, acquisitions become the only means to significantly grow earnings.

At the same time, deals often have a “domino effect” – deal activity encourages other companies to take action as well… to “keep up,” if nothing else.

Think about it…

If you run the #1 company in terms of market share in an industry and your closet competitor doubles in size over night by buying the #3 company, how would you respond?

The quickest way to remain competitive is to find an attractive acquisition of your own, perhaps the #4 or #5 company in the industry. That’s why I focus primarily on industries undergoing this urge (or necessity) to merge.

Takeover Trigger #3
Heavy Insider Activity: Executives Are Buying Like Crazy

Nobody knows better than the insiders about the future prospects for a company… including whether they’ve received any takeover offers, or they’re preparing to sell the company. And while they can’t exactly buy on a Friday and cash out on a takeover announcement on Monday, they can (and do) position themselves in advance.

So I track insider purchases as an indicator that a deal may be in the works in the next 6 to 12 months. And when I notice heavy buying, I pay particular attention to the next factor…

Takeover Trigger #4
Options Volume: Mysteriously Big Bets Start Rolling In

A recent study by Yale University confirms that insiders (loosely defined as those with access to non-public information) often tip their hands not by loading up on shares of the stock – a high-profile and risky thing to do – but by purchasing “call options” on the stock.

The Yale study found that when call option volume spikes for likely takeover targets, it’s not long before the stock does, too.

Takeover Trigger #5
Minimal Leverage: The Company Isn’t Mired in Debt

When firms are stretched to the hilt, it can impede takeover interest. That’s because any small fundamental changes in sales or costs, for example, can wreak havoc on the company’s financial strength.

There are a number of ways to measure leverage, with one of the most common being the ratio of debt to assets. Regardless, the more leverage a company uses, the less likely it’s a takeover target.

(This is exactly why low-density stocks are such attractive targets. They have very little debt and hold gobs of cash, which you can buy at a discount.)

Takeover Trigger #6
Sensible Size: The Company’s Small Enough to Buy, But Big Enough to Add Value

Obviously, a $10 billion company will have less of a chance of being bought than a $10 million firm. There are only a few companies or funds that can pay for deal that big.

That doesn’t mean large-cap or mega-cap deals don’t occur.

In 2008, Mars bought Wrigley for $23 billion, Dow Chemical bought Rohm and Haas for $15.3 billion and Hewlett-Packard bankrolled a $13.9 billion purchase of Electronic Data Systems Corp.

But here’s the thing – the frequency of deals in the small- and mid-cap space is much higher. And the takeover premiums tend to be higher, too.

Since I always try to increase the chances of success, I focus almost exclusively on such small- and medium- sized companies.

Takeover Trigger #7
Tangible Assets: The Company Owns, Makes
and Sells “Real Stuff”

A company’s assets can come in all sorts of forms. In the case of an acquisition, the buyer likes tangible assets – products, new technologies, land and buildings…

And, best of all, cash.

Let’s Be Realistic

Of course, predicting takeovers requires a bit more finesse than other investment strategies. There's more "homework" involved.

For example, you also need to know:

  • Can the two companies actually benefit by combining forces?

  • Will a merger cannibalize business and/or give the nearest competitor a significant advantage?

  • How quickly will a deal lead to increases in earnings?

The list goes on. There are hundreds of factors at work when considering a takeover.

But don't worry. I take care of everything when you subscribe to my service.

It's worth it, too.

Current subscribers to the TakeOver Trader have had a chance to book gains of 93.75% in Ultra Petroleum, 135% in SPSS Inc., 87.88% in Genzyme Corp., 145% in Hyperion Solutions, and an amazing 1,223.08% in OptionsXpress.

These gains are based on the actual entry and exit points I provided to subscribers on each recommendation. They all exceeded my minimum target gain.

Thing is, there’s another reason this service is so valuable… and can double your money so fast.

Win Even If You're "Wrong"

Do big growth-hungry companies take over every stock I recommend?

Of course not.

But take a look at how all of the "losers" in the current model portfolio have performed this year…

Buy Price
Current Price
Subscribers Only
Subscribers Only
Subscribers Only
Subscribers Only
Subscribers Only
Subscribers Only
Subscribers Only
Subscribers Only
Subscribers Only
Subscribers Only

As you can see, even if a takeover never materializes, these stocks are likely to advance on their own merits.

Remember, these businesses spin off tons of cash… and their overall fundamentals are improving. Long-term growth investors simply can’t resist.

So even if we’re “wrong” about an impending takeover bid, we still win. And as I said a few minutes ago, Julia and I are making it incredibly easy to start…

I Pay $35,000 a Year for Research.

Institutional subscriptions aren't cheap. I fork out a ton of money for data. One of the databases I access costs $30,000... a year. (It's worth more than that.)

You, on the other hand, have it easy.

Not only can you forgo spending tens of thousands of dollars to access high-end data… you don't even have to crunch it.

I'll do it for you.

All you have to do is open my alert when it hits your inbox, place the recommended trade… and wait for follow-up instructions… like the ones I sent subscribers just a few weeks ago:

We're sitting on a 29% gain in iPass, Inc. (Nasdaq: IPAS).

Our smoking pick, Lorillard (NYSE: LO), is up 12%. And sell half your September $70 calls (LO-IN) to lock in a 51% gain.

Lastly, protect more of your 56% profit in Lawson Software (Nasdaq: LWSN) by raising your stop to $5.

Again, just wait for your instructions. That's all you have to do.

So Here's the Deal

When you sign up to the TakeOver Trader today, here's what you'll start getting immediately… aside from a realistic chance to double your money every 2.1 years:
  • The Picks: The names and ticker symbols of each new low-density-ratio stock that's an imminent takeover candidate. Expect 2 to 3 new recommendations a month.

  • The Rationale: You'll get my in-depth analysis for each recommendation, including the company's business prospects, the outlook for its industry, the potential suitors… and why the target company has so much takeover appeal in the first place.

  • Weekly Portfolio Updates: I'll send you any information that could impact the stock price of a position in our TakeOver Portfolio. I explain the risks, too. You'll know everything about these companies… especially the details analysts covering the stock tend to misunderstand.

  • The Current Portfolio: You'll get instant access to the identities of each Buy Rated stock I'm recommending right now – 11 high-probability takeover candidates, as of August 14, 2009.

And you'll get everything for just $895.

First let me go over something important…

This Service is Already Undervalued

Right about now, you'd typically encounter an astronomical "But Wait!" discount. But we can’t do that here.

Let me tell you why…

I'm not the bragging type. If you've met me, you know this already. But facts are facts. My advisory service delivers results.

Ten of the 11 open positions are up right now. Seven are up by double digits, including a 44% winner and a 53% winner – in line with FactSet's research… and a rate of return that can double your money every 2.1 years.

That's just the current portfolio.

Our closed positions have performed equally as well. (All of the positions we closed in the second quarter, for example, went up by double-digits. The options, which I include for the speculators using my research service, did even better.)

Fact is, this service is already undervalued…

Remember, according to FactSet LLC, the average gain you can expect to make - in one day - is 48%. That means just one $10,000 trade alone, out of the 25+ picks you'll get from me over the next 12 months, could hand you $4,800 in cash - enough to pay for this service twice... and then some.

Now for the Big Fat "However"…

All that being said, I still don't want you to miss out on what I believe is a compelling and ultra time-sensitive opportunity - the chance to make a killing from shares with such low density ratios.

The money's just too good right now. We don’t want anything to hold you back.

That’s why we’re giving you so much time to decide…

An Extended Money-Back Guarantee:
We’ll Cover 90% of Your Subscription
for 6 Full Months

I’d like you to see firsthand what this service can do for your finances. So when you sign up today, I’ll give you a full 6 months to decide.

If you’re not satisfied for any reason, just give us a call. We’ll cancel your service, disable your portfolio password… and refund all of your money, less the 10% account deactivation fee.

In other words, we’ll take on 90% of the risk on your behalf.

By the time spring-cleaning season arrives, you’ll still be getting Lou’s recommendations… well into March.

There's just one little "catch."

Density Ratios Like This Don't Last Long

Again, according to Barron's it's been 23 years since we've seen so many low density ratios. It could be another two decades before we see them again.

So we’re giving you a reason to act now – a deadline.

That's it – the one and only "catch."

But enough about making deals. It's time to start profiting from them…

The First $4,800 Pop Could
Come Any Day Now…

My next recommendation could come as early as the next opening bell. And any one of the current recommendations could receive a takeover bid at any moment… and hit the 48% minimum target gain on the news.

So please, don't wait.

You could miss out on an easy (and ultra safe) $4,800 gain. That kind of money is just too good to pass up. It’s enough of a return to double your money every 2.1 years.

Just and, if you choose, add at least one of these potential homeruns to your portfolio as soon as you can. Or, if you prefer, you can call us toll-free at 888.570.9830 or 1.410.454.0498 and mention Priority Code: .

As a former deal analyst, I can tell you that this is the low-hanging fruit of the stock market. And I suggest you pick it now… before someone else buys the entire orchard.

Good investing,

Louis Basenese,
Editor, The TakeOver Trader
September 17, 2009

P.S. Again, please don't wait… Density Ratios this low can give you a tremendous short-term gain – $4,800 on average. But they never last long. What's more, the Fed's recent "vote of confidence" for the economy just gave management teams across the country a reason to start spending money again… and they will almost certainly start buying up solid cash businesses – companies with unusually low Density Ratios.

P.P.S. When you , you'll get immediate access to the current list of high-probability takeover candidates… and every future recommendation for the next 12 months, the first of which could come as early as the very next opening bell.