Customer Service 1 (888) 261-2693
Please enter Search keyword. Advanced Search
Editor's note: Next week, the DailyWealth staff will be in Mexico for our parent company's annual investment meeting. Each year, our analysts pick their favorite investment in the world, and present it to a private meeting of our most-loyal subscribers. Here's what Tom Dyson will be presenting...


Huge Gov't-Guaranteed Dividends Courtesy of the Mountain Pine Beetle

By Tom Dyson, publisher, The Palm Beach Letter
Monday, November 19, 2007

I pulled my rental car off the highway and proceeded slowly down an old logging road. "End of paved road" said the sign. "Use caution."

We bumped and weaved our way down the pebbled track, searching either side of the path for red pine trees. "Watch out for logging trucks," said my guide. "They won't have time to stop."

We turned a sharp bend. A large stand of red trees stood in front of us. We stopped the car and ran over. Using a key, I peeled off the bark and revealed a dozen tiny beetle boreholes. "So these are the little blighters," I thought to myself...

The Mountain Pine beetle is smaller than a grain of rice, yet it has killed more than 50% of the mature pine trees in British Columbia. The way its population is mushrooming, 80% of the pine trees in BC will be dead in five years.

And think about this: It's estimated that Canadian highways will host an additional 100,000 truckloads of logs a year thanks to all the beetle-kill being hauled to regional sawmills.

As an investment analyst, I love crises like this. Where you find crisis, you find opportunity. By traveling to Canada, touring the infested region, and interviewing the locals, I identified several fantastic ways to profit from this situation... and help fix it at the same time.

I covered the opportunity in wood pellets last week... but I have a much easier, safer way to invest in the Canadian forest crisis... which I encourage you to take advantage of immediately. It's one of the finest income investments you could possibly own.

You see, Canadian law dictates a logging company must reforest the areas it clears. This means replanting baby pine trees. It's such an important law, that even a bankrupt logging company must still fork out the cost of regenerating the logged forest... before anyone else gets paid... even the bank loans. And get this: If the court liquidates a bankrupt logging company but doesn't raise enough money to pay for reforestation, the government must – by law – assume the debt...

In other words, the forest gets regenerated, no matter what.

                        on Chris Weber

Why Chinese Power Plants Need Rabbit Food

The Alternative Fuel Industry You've Never Heard Of

My favorite investment grows baby trees, or seedlings. This is an incredibly simple business. You need some land, some large greenhouses, and a few staff. It requires no industrial machinery, maintenance costs, or bloated research budgets. You simply grow and sell trees. Enough cash rolls through the door to support the world's steadiest dividend, which is more than 12% and growing.

The pine-beetle infestation ensures heavy demand for new trees for many years to come. There are two reasons:

One, the loggers are accelerating their harvest of healthy trees. The infestation is going to get much worse over the next three years. The local government wants the logging companies to salvage the healthy trees before the beetles attack them and prevent the beetles progressing.

Two, the loggers won't harvest the dead beetle-kill trees. So they stand in the forest and dry out. This creates a huge fire hazard. One lucky strike from a lightning bolt and British Columbia will have the huge wild fire I described last week. Canada's federal government has already pledged $400 million to fight the infestation. A good portion of this money will flow into reforestation. I expect the government will soon give logging companies incentives to clear the deadwood too.

In short, they'll need to reforest hundreds of thousands of acres of British Columbia forestlands over the next five years... And it's a phenomenal opportunity for investors.

Good investing,


Market Notes


Turkcell (TKC)... Turkey's largest wireless telecom provider
Cellcom Israel (CEL)... Israel's largest wireless telecom provider
Vodafone (VOD)... Europe's largest wireless telecom provider
France Telecom (FTE)... France's largest telecom provider
Deutsche Telekom (DT)... Germany's largest telecom provider
Philippine Long Distance (PHI)... Philippine's largest telecom provider
Korea Telecom (KT)... South Korea's largest telephone operator
Berkshire Hathaway (BRK-A)... world's greatest hedge fund
Lockheed Martin (LMT)... largest U.S. defense contractor
Veolia Environnement (VE)... world's largest water stock
Japanese yen, Swiss franc, Soybeans, Canola oil


Nearly every retail stock you can think of
Royale Energy (ROYL)... oil & gas
Infosys (INFY)... Indian outsourcing
Legg Mason (LM)... asset manager
E*TRADE (ETFC)... online broker
Fannie Mae (FNM)... government mortgages
Freddie Mac (FMC)... government mortgages
Encore Wire (WIRE)... huge copper wire producer
Tyson Foods (TSN)... America's largest meat company
Fedex (FDX)... the bear market in American transport
Arkansas Best (ABFS)... the bear market in American transport
YRC Worldwide (YRCW)... the bear market in American transport
Pool Corporation (POOL)... America's largest swimming pool company
CB Richard Ellis (CBG)... world's largest commercial real estate firm
Zinc, 10-year interest rates

- Brian Hunt

Recent Articles