THE PAYOFF COMES WITH OBSERVING WHAT LIES BENEATH
Look guys...it's really simple. You have a massive amount of newsletters that focus on the micro-cap/penny stock sectors that do nothing but pump names...try to extract money out of the market by, in effect, running a ponzi scheme of buy...alert your subscribers...start feeding them stock and then the last one holding the egg basket gets spanked.
There is not another advisory service like this one out there today. We are not interested in pumping stocks or holding them for hours, a day or a week at a time based on technical patterns and pre-determined stop-loss levels. We kill the research...I mean our research methods are borderline insane given the lengths we go to in order to make sure we have the correct information. We don't stop at SEC filings...we look deeply into the executive officers and "activists" that are behind resurrecting the companies that we invest money in. We want to be 100%, absolutely, unequivocally sure that these guys interests are aligned with shareholders.
When you have a distressed situation or an asset that is being spunoff, you rely on management to perform. In the case of distressed assets, when management is incapable of performing, activists get involved and then the fate of your retirement, vacation or kids college education money is reliant upon how determined and skilled these activists are. What these guys do at these times determines whether your funds end up at zero or you bring in a 500% gain on investment.
The bottom line is this: when you invest in a distressed situation, management becomes your hedge fund manager. It's not gonna be smooth sailing and the fudging of some EBITA numbers that management at Intel or Coca-Cola do on a quarterly basis. Management and activists are gonna have to get creative...fight...form committees, appear in front of judges..litigate. It gets dirty...and if investor interests and management interests aren't aligned, guess what? The investment you made is done.
We make sure everyone is on the same page. We make sure that the people fighting your battle are gonna put on a good fight. We make sure that the guy who just put up $20 million to provide the company some much needed capital knows what he's doing...and drives home in Bentley and not in the passenger seat of his mistresses Honda. We make sure everything is on the up and up so that we can hold onto a success rate that is greater than 85%. Meaning that nearly 9 out of 10 times that we invest money...we make money.
If you like to wobble and weave around the markets like a kid who needs a dose of ritalin...then this service isn't for you. In 2010, we invested in a total of 5 companies. We only lost money on one position...getting out with a roughly 15% loss on the stock. The others we saw gains that were well in excess of 200 or 300 percent. In fact, we're sitting on a gain of nearly 450% on one of them after it hit a new 52 week high today.
Zenpenny opened its doors recently. New service...yes. New experience...not at all. I've been blogging about the markets since before blog was a word...in the late 90's. I've advised high net worth investors from all over the world. I've run a hedge fund that was #1 in the macro hedge fund space...beating out Peter Thiel that year (although he invested $500K in Facebook a year after, now worth $2 billion...so he won in the end) for the top spot. I've eaten my share of humble pie, as well. So much so that I completely ignored the markets for a period of time and started a business in a completely different field.
A passion is a passion...and it must be pursued. 16 years into it...been doing it since I was 19...and the process behind my madness is better than at any point in my career. I've hired an analyst from a boutique hedge fund to assist me in the research...and we're off and running.
Join us. At the very minimum, it will be a profitable venture.
