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“I think this could be an incredible opportunity that all UK investors should take serious note of.”
—Mark Rogers, Chief Investment Advisor, Motley Fool UK
‘There’s a ‘double agent’ hiding in the FTSE…
We recommend you buy it.’
Our analysts believe it could make you a considerable return at its current price.
So I urge you to read on and make your decision.
As you’ll see, this sector doesn’t hang around…
Dear investor,
Kim Philby was the embodiment of the British establishment.
Educated at Westminster and Cambridge, his formidable intelligence saw him become head of MI6’s anti-Soviet intelligence operations during the Second World War.
In 1946, he was awarded the OBE.
But Philby was hiding something…
He was a spy.
Philby had been passing information to the KGB, the Soviet security agency, since the 1930s.
He was never caught.
But that’s hardly surprising. He had the perfect disguise. No one would ever expect the establishment to betray itself…
I mention it here because I believe there’s a similar story happening right now – in the British stock market.
- It concerns a company that’s working both WITH the rest of the market…
- And AGAINST it.
Whatever happens to the market as a whole – whether it goes up OR down – we think this company’s shareholders could see the company’s stock price rise.
And, owing to the nature of its business – which you’ll discover in this letter – we think it has the potential to make you a huge profit.
No one can say for certain where its share price will head next. All I can do is explain why we’re advising you consider adding it to your portfolio immediately… and let you come to your own decision.
Like Kim Philby, this company is hiding in plain sight… which means we think you need to make a quick decision.
Right now, we firmly believe that it’s an incredibly attractive investment. Whether that will still be the case in the future, I can’t say.
But when you have the opportunity to invest in an “establishment company” that could make you the type of gain you usually only see in riskier small caps (between January and August of 2016 its share price almost trebled) we think it is well worth your full consideration.
Betting on failure
You may have heard the following advice: put 10% of your money into gold and hope it doesn’t go up.
But what’s the thinking behind it?
Gold, like other precious metals, is an uncorrelated asset. It behaves differently to other asset classes, like stocks and bonds.
As the table below shows, investors tend to flock to gold when they feel there’s trouble brewing in the economy – i.e. when stock prices suffer.
| Biggest S&P 500 Declines | S&P 500 Returns % | Gold Returns % |
|---|---|---|
| 21st September 1976 - 6th March 1978 | -19.4% | 53.8% |
| 28th November 1980 - 12th August 1982 | -27.1% | -46.0% |
| 25th August 1987 - 4th December 1987 | -33.5% | 6.2% |
| 16th July 1990 - 11th October 1990 | -19.9% | 6.8% |
| 17th July 1998 - 31st August 1998 | -19.3% | 5.0% |
| 27th March 2000 - 9th October 2002 | -49.0% | 12.4% |
| 9th October 2007 - 9th March 2009 | -56.8% | 25.5% |
| 10th May 2011 - 3th October 2011 | -19.0% | 9.4% |
| Source: KATUSA Research, 2018 | ||
So, if the gold price behaves differently to the stock market…
Surely the companies that produce and sell it will, too?
For as in any business, it’s in the interest of these companies to sell their product for as high a price as possible.
So a rising gold price is good news for the companies who extract, refine and sell it: the miners.
But as you know, if the gold price goes up significantly, there’s probably a lot of money being lost elsewhere…
Which puts the miners in an awkward position.
It’s almost as if they want the stock market to tank, as there’s every chance their balance sheet will be going in the other direction.
This has powerful implications for us as investors.
How this might help you beat the market
Consider the following chart of major mining company stocks and gold since 2000.
As you can see, miners (the blue line) went on a tear between 2001 and 2008, outperforming the metal (orange line) impressively.
Gold Bugs Index
Source: MoneyWeek and StockCharts.com
They also lost more during the crash – which is to be expected. No company is spared in a panic.
But the thing to note is the recovery.
You probably remember the crisis well. The economy was paralysed by fear. The future of the global banking system was up in the air.
That caused a flood of money into the gold market…
Which sent mining stocks SOARING.
It’s a common phenomenon.
During the dotcom bubble crash of 2000-02, mining shares went UP 65% between January 2000 and October 2002 (when the market bottomed), while the S&P 500 was DOWN 42%.
So while the gold price and the share price of miners do not mirror each other exactly, more demand for the metal is clearly good news for mining shareholders.
In fact, historically, mining investors tend to do even better than those who just hold the metal itself – thanks to…
The “LEVERAGE effect”
If you’ve ever wonder why you’d buy a precious metals miner when you could just hold the metal instead, this is why…
Let’s say it costs a miner $1000 to produce an ounce of gold.
If the gold price is $1200, the miner makes a $200 profit on each ounce.
And if the price goes up to $1400 – just a 17% rise – the miner is now making a $400 profit per ounce – thereby DOUBLING its profits.
This is what is known as the “leverage effect”…
And it also plays out in the stock market.
On average, according to a study by mining.com, major gold mining stocks (larger companies) tend to leverage gold’s trends by 2x to 3x.
Individual companies can do so by considerably more.
Between 1st January 2000 and 1st January 2008, the gold price rose from $288.5 to $833.5 – a return of 189%, and a heck of a return by any standards.
But in that same period…
- Agnico-Eagle Mines flew from $7.19 to $54.6 — UP 659%1
- BHP Billiton climbed from £319 to £1,441 — UP 351%2
- Goldcorp skyrocketed from $1.83 to $30.24 — UP 1,552%3
You may remember that the same thing happened in 2016.
When the gold price rose by 30%...
The miners went UP 170%.
These three are just examples, of course, and are not intended to be representative - not all mining stocks performed the same way during this period, and some will have fallen in value.
Miners are organisations in their own right. No two are the same.
As with any company, there are several criteria to consider when investing in the sector, including, but not limited to, management, productivity costs and risk.
And with a huge number of mining companies listed in the UK, identifying the right one is an almighty challenge…
But we think we’ve done it – and that it could make you a PACKET.
Back in May 2018 we recommended this company when it was trading at a higher price, and we are ready to reiterate our advice now that the shares at trading at an even LOWER PRICE.
This is a company with a long history of success. It operates on the other side of the Atlantic – but is listed here, on the London Stock Exchange.
Before I reveal the details, allow me to introduce myself.
Yes, you CAN beat the market4
My name is Chris Nials. I’m the Executive Publisher for Motley Fool Share Advisor, our most popular share-tipping service.
With work and family to worry about, most people don’t have time to pore over financial tables and charts. You may be in the same boat.
That’s why we launched Share Advisor in 2012, to provide private investors with the chance to invest knowledgably in individual companies.
We believe you shouldn’t have to settle for simply “tracking the market”... we believe you can beat it.
So how have we done?
In the 7 years since we launched, we’ve delivered an average gain of 30.98% for our members…4
And proven that you are better off NOT settling for market-matching returns.
This is something we’re hugely proud of. Helping our members grow their wealth is the only reason we exist.
Like Phil James from Leicestershire, who told us…
My Motley Fool experience to date has been amazing, I can’t praise the service highly enough. I held off joining back in 2012 when the service was launched and didn’t join until 2014, until it was more established. That’s a decision I seriously regret.
And A. Davidson from Leeds who said...
“Because of Motley Fool Share Advisor I have felt confident to make investments in shares which I hope will provide me with financial security during my retirement. I just wish I had started sooner.”
Or Keith Malcolm Lewin from the North West, who got straight to the point…
“I save time, save money, and profit.”
So, what’s our secret?
It all starts with a belief – one that might shock you…
Timing the market is a mug’s game
Finance is full of opinionated people claiming to know “what’s going to happen”.
And yet when events do actually happen, from Black Monday to the financial crisis, these same people are caught by surprise.
The truth is, no one knows what a market will do on any given day, or where it will be in 12 months.
Finance is not a science. Markets are inherently human – and humans are IRRATIONAL.
We are driven by greed in good times… and fear in bad times.
Financial markets are no different.
Our job at Share Advisor is not to pretend we have a crystal ball, the way some “financial gurus” do… one that allows them to “know exactly” when the market will soar, dip, and dither.
Our job is straightforward:
To help investors like you aim to profit in the stock market by investing the “Foolish way.”
“What on earth does that mean?” I hear you ask.
Put simply, it means…
Identifying what we consider to be the UK’s best companies…
Which we think provide VALUE for their customers and HAMMER their competitors…
And holding them until we believe we’ve maximised their PROFIT potential.
We control what we can control: the quality of our research and expertise.
Our team of analysts assesses the fundamentals of companies: the accounts, business strategy, management, competitors, suppliers and customer base.
If we think it’s a strong company with solid growth prospects and a high potential upside for shareholders, we invest. Then we let the underlying businesses do the talking.
Our stock analyses have given our Share Advisor members the chance to bank some incredible gains, including:
- Britvic up +333.55%3
- Homeserve up +623.6%4
- Renishaw up +272.85%5
Of course, these are some of our most successful recommendations and are not intended to be representative. Not all of our picks have progressed so handsomely – and some have lost money.
That’s just the nature of the beast, I’m afraid. Forgive me if this sounds patronising, but no one wins on every pick.
But by sticking to a strategy that has delivered profitable returns in the past4 – I’m confident we’ll win much more often than we lose, and keep giving our members the best chance of beating the market.
Which brings me back to the subject of my letter today – and the potentially lucrative opportunity we believe we’ve uncovered in the mining sector…
I hope you’ll read closely. Because you could be one stock ticker code away from one of the best financial decisions you ever make.
The “double agent” in the FTSE
We’ve gone over why miners can profit from trouble in the stock market – precious metals are uncorrelated assets.
But why have I identified one miner in particular as a ‘double agent’?
Shouldn’t you be avoiding the sector altogether if precious metals aren’t booming themselves?
No, in short.
In fact, I think taking that attitude could mean you miss out on a great deal of money.
- We believe the beauty of this particular miner is... it doesn’t need a sky-high gold price to make money.
Gold is no different to any other natural resource. The cheaper you can get it out of the ground, the more likely you are to survive the bad patches in the market.
You may be aware that the past few years has been hellish for a lot of miners. Several have gone bankrupt as the gold price has struggled. Others are surviving by the skin of their teeth – and often by taking on huge amounts of debt.
Not our ‘double agent’.
As you can see below, its performance has been hugely impressive, although still subject to cyclical swings of course.
It’s turned a profit throughout the recent woes in precious metals markets:
| Year to 31st December | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|
| Revenue ($m) | 1,615 | 1,413 | 1,444 | 1,905 | 2,093 | 2,103 | 2,120 |
| Profit after tax ($m) | 261 | 117 | 70 | 425 | 561 | 349 | 206 |
| Earnings per share (¢) | 33 | 15 | 10 | 58 | 76 | 47 | 28 |
| Dividends (¢) | 5 | 3 | 5 | 30 | 40 | 27 | 15 |
This ability to handle swings in price – and make a profit even when your product is “hated” by the market – is a critical factor for us. We consider it to be a hallmark of a well-run miner.
And trust me, poor management is rife in the sector.
Most companies get too greedy when times are good. They take on too much debt and don’t improve their productivity.
The rising price allows them to get away with it. When the tide turns, the mismanagement is revealed.
But strong management is not the only reason we think you should consider adding this ‘double agent’ to your portfolio today.
Here are three reasons why we think you’d ultimately regret not doing so:
ADVANTAGE #1: Strong track record
Over the past decade, our miner has achieved most of the long-term targets it set out at the time it listed, returned almost $2.5bn to shareholders via dividends, increased silver and gold production by 55% and 245% respectively, and invested more than $4bn back into its operations.
ADVANTAGE #2: Growing resource base
This is crucial for a miner. It’s all very well if precious metals are going up in price, but if you’ve already extracted your mines’ supply, you won’t make any money – and some shareholders will likely run for the exit.
We believe our miner is in rude health. It currently operates seven mines, with five more in development. It also has extra projects including a new plant to recover more metal from old mines, another to process sulphide rich ores and it is exploring for new opportunities abroad for the first time.
ADVANTAGE #3: Exposure to precious metals
If you don’t own gold, we think this is a great opportunity to diversify your portfolio and own a company which does.
As I said earlier, when stock markets sink – nearly everything goes down. But the beauty of precious metal miners is their product is an UNCORRELATED asset. That means the share price could be well placed to come roaring out the other side of any market crises.
You’ll find our full recommendation of the company – including the all-important ticker symbol – in our special report.
It contains everything you need to know to make an informed decision on whether to invest, including the reasons we’re confident it could grow your wealth and the potential risks involved.
I’ll show you how to get your copy in just a moment…
First, I need to re-emphasise something.
You need to make a decision now
When your business is tied to a commodity, the share price is likely to behave in a similar fashion.
So this isn’t like investing in blue-chip companies like Tesco or Microsoft, companies with an income stream that won’t change much day to day. For mining companies, income can fluctuate wildly.
We think this particular company represents a fantastic opportunity for you to potentially make a huge profit at its current price…
It is possible that this opportunity will not still be there in a year…a month…or even a week’s time.
No, I am not saying I think the gold price is about to explode. But when mining shares move, they tend to move quickly.
This is a quiet time for precious metals and mining stocks. How long that lasts is anyone’s guess.
But this ‘double agent’ has shown it can remain profitable in unfavourable market conditions. We think that is an exception in the mining sector, not the rule.
Miners can be incredibly powerful vehicles for growing your wealth.
Sure, big blue-chip stocks like Unilever will be less volatile than a miner – which tend to struggle when commodity prices go against them. But that’s why we’re recommending this particular company. It’s shown an ability to make money throughout the gold cycle.
What’s more, this is only the SECOND time we’ve recommended a mining company to our members.
The first was in January 2016…
Rio Tinto is one of the world’s most efficient iron ore miners, and commodities were in the doldrums at the time.
As my fellow Share Advisor analyst Owain Bennallack wrote then:
“While things are tough right now, longer-term demand should still grow. Add Rio’s low-cost production, its focus on Australia (where the rule of law is favourable for natural resource companies) and the emphasis on shareholder returns, and I judge Rio looks an attractive asset to own, despite the turmoil in the sector today.”
Like the miner we’re highlighting now, Rio Tinto could function well when the iron ore (its main product) market was struggling. This is a trait that can be spotted in some mining companies – and certainly in those we think have the potential for real returns.
Then as now, a miner was an unusual stock for us to recommend. But we believed it was well positioned for an upturn in the iron ore price – and could do so at a lick.
At the time we changed our recommendation to a sell in August 2017, we were proven right – and our readers had the chance to bank a 123.5% PROFIT.8
As you can see, this gain took place in just 19 months. Of course this was a great example of the potential profits, but not all of our recommendations have performed so well, and some have fallen in value, including our initial recommendation of the mining stock we are talking about today.
Claim your report today – without risking a penny of your subscription fee!
Inside you’ll find all the details you need to know about the miner we’re recommending, including:
- Prospects for growth
- Management
- Key Metrics
- Valuation
- Risks
We recommend you consider adding it to your portfolio immediately.
We think the market could be missing a trick… and investors who get in now could be in line for a windfall if it realises.
I’d like to send you a copy of this valuable special report today, entirely with my compliments.
All I ask in return is that you accept one more thing that could prove extremely valuable to you over the coming months and years...
It’s a personal invitation to sample everything Motley Fool Share Advisor has to offer – under our generous terms.
That’s right, I want to give you the chance to position yourself to profit from every recommendation my team and I have made, and discover everything that Motley Fool Share Advisor has to offer – without risking a single penny in subscription fees!
Your 30-Day Subscription Refund Guarantee
At Motley Fool Share Advisor, we stand behind every piece of advice, insight, and recommendation we make.
That confidence means we’re happy to allow you to see our research for yourself – before you decide to fully commit.
So if you’re not completely satisfied, we’ll give you your subscription fee back!
I want you to take a FULL 30 DAYS to have a look at every company we’ve recommended. Read the research on each one. Look at our track record.
CLICK HERE to begin your 30-day no-obligation grace period now.
(You will be taken to our secure order form, where you can review everything you’ll receive as a Share Advisor member.)
If for any reason you are not satisfied, I’ll refund your subscription fee – no questions asked. Just make sure you let me know before your first month ends.
Should you decide to cancel your subscription, we won’t ask you to return or delete any of the information you’ve seen. Including:
- Your copy of our special report: ‘UNCOVERED: The ‘double agent’ in the UK stock market’
- All of the investing content on the Motley Fool Share Advisor members-only website
- All reports, recommendations and articles
I hope you feel this to be a generous offer. It is certainly unusual in our industry – but, given our track record and the quality of our research, it’s one we feel comfortable offering you.
I’m certain that once you have a closer look at what our investment group is doing, you’ll want to stick around and get all future Motley Fool Share Advisor stock recommendations.
You could pay thousands for this advice in the City
The financial services industry is notorious for some poor – not to mention pricey – performance.
Men in sharp suits bamboozling naïve customers with financial jargon – yet so often failing to deliver. Countless studies have demonstrated that you’re often better off just putting your money into a tracker fund.
Indeed, the financial services industry is precisely why The Motley Fool exists.
We believe that market-beating4 investment advice shouldn’t only be available to those with the deepest pockets.
Which, as Share Advisor shows, it doesn’t have to be.
Normally, you can gain access to every recommendation in the Motley Fool Share Advisor portfolio, plus all of our updates and reports, plus access to the members-only website (includes complete archive), for the regular 1-year list price of £149.
Now consider that the average return of all our Motley Fool Share Advisor recommendations was 30.98% as of 31/03/2024, outperforming the overall market by 0.03% percentage points.4
Given this level of performance – not to mention the profit potential of the mining stock I’ve outlined for you in this letter – I’m sure you’ll agree that £149 represents a potentially significant bargain for that year of access.
Our current members certainly seem to agree.
“I have been rewarded with substantially more than the small annual outlay.”
—A,K., North Dorset
“Motley Fool have helped me invest wisely… they will get me [to retirement] a lot quicker than would otherwise have been the case.”
—William Barnsby, West Midlands
But we’re not content to give you just ‘good’ value for money, we’d like to offer you a ‘great’ saving when you sign up..
Which is why we’ve created this new-member offer. And because I don’t want you to have any reason not to potentially profit from the opportunity I’ve told you about today, I’m going to make you an improved offer.
One that allows you to sample everything I’ve told you about today… for 30 full days… and lock in one of our lowest subscription prices ever…
A full year of access for £99!
That’s right – today you can enjoy your first year of Motley Fool Share Advisor for just £99!9
That's a locked in saving of 33% when compared to our regular 1-year list price! You’ll receive instant access to all of the potential fortune-making stock picks, special reports, and valuable investment tools we’ve discussed today for less than 20 pence per day.
And if you’re not completely satisfied in your first 30 days, you’ll get your subscription money back!
Join today, and you’ll have our advisors working to try and make YOU wealthier — doing all the research, making the contacts, poring over the financial books, doing the key calculations — to make sure you get the best investments for the months and years ahead.
Here’s a quick review of everything you’ll get when you join us today:
- Our special share report: ‘UNCOVERED: The ‘double agent’ in the UK stock market’.
- Our TWO Top Share Recommendations Every Month: That’s one income and one growth pick we consider to have superior money-making potential. We’ll send you all the details you need to invest, including buy and sell recommendations and updates on the progress of the shares. We’ll monitor impending market storms and keep you aware of exciting trends.
- Ongoing Coverage: We won’t leave you guessing on any company we’ve recommended. Instead, you’ll receive easy-to-follow ‘buy-hold-and-sell’ guidance for all of the active share picks in the service.
- Weekly Updates: Share Advisor is not just about delivering your recommendations. Our experts will take you by the hand and show you the secrets of their investment strategies, so that you can develop and grow in confidence as a private investor.
- Live Interactive Scorecard: We keep track of how all of the Share Advisor recommendations are performing relative to the FTSE All-Share Index.
- Bonus reports and other online content. Share Advisor will periodically release special reports, tutorials and other exciting bonuses to our members.
- Full priority support: Should you get stuck, have questions or need to know anything at all, you’ll have a dedicated customer service representative on hand, Monday to Friday.
- 30-Day Subscription Guarantee. If you’re not bowled over by the service we provide, simply cancel at any time within your first 30 days and we will refund your subscription fee in full – no questions asked.
If you’re still struggling to see the value of this offer, I’d like to bring something to your attention.
Something potentially lucrative… but which requires you to come to a decision sharpish.
6 more reasons to join Share Advisor today
Every month, our analysts highlight stocks in the Share Advisor portfolio that look like particularly attractive opportunities at their current prices – listing them as ‘Best Buys Now’.
It might be because the price has taken a short-term dip for no clear reason that our analysis shows… or that the market is yet to re-rate an improving business, keeping the share price in check.
Either way, as soon as we spot a potential for a supercharged return, you’ll know about it.
Right now, there are SIX companies our analysts have classified as ‘Best Buys Now’.
And you’ll discover all six of these potential profit opportunities – and the miner I’ve told you about in this letter – the instant you start your 30-day grace period to Motley Fool Share Advisor.
Frankly, when you consider everything that’s on the table, I fear I may be making this offer a bit too generous…
- After all, a year’s membership of Share Advisor normally costs £149.
- Yet you’ll pay just a fraction of that for your first year if you join today…9
- Without risking a penny of your subscription fee.
(Again, I don’t want to patronise you, but when you invest, there’s always the chance that you may take a ding or two. That’s the nature of the beast, I’m afraid.)
We believe this is a great time to consider adding the FTSE’s “double agent” to your portfolio – PLUS our 6 ‘Best Buy Now’ companies in the Share Advisor portfolio – and make a potentially lucrative return…
But we also believe the clock is against you.
Please don’t risk missing out.
Just click the link below to join us and start potentially profiting today!
Start my Share Advisor membership – backed by our 30‑day subscription refund guarantee!
To your wealth,
Chris Nials
Executive Publisher
Motley Fool UK
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a) Your card will be charged £99 for your first year of service. At the end of this period, your subscription will automatically renew at £149 annually. You may cancel your membership at any time by contacting [email protected]. If you cancel within your first 30 days you will receive a full subscription refund. After this time, your subscription is non-refundable.
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Small Print
- At the close of trading on 01/01/2000, shares of Agnico-Eagle Mines (NYSE: AEM) were valued at $7.19. At the close of trading on 01/01/2008, they were valued at $54.6, representing a 659% increase.
- At the close of trading on 01/01/2000, shares of BHP Billiton (LSE: BBL) were valued at £319. At the close of trading on 01/01/2008, they were valued at £1441, representing a 351% increase.
- At the close of trading on 01/01/2000, shares of Goldcorp (NYSE: GG) were valued at $1.83. At the close of trading on 01/01/2008, they were valued at $30.24, representing a 1,552% increase.
- Motley Fool Share Advisor has delivered an overall return of 30.98%. The S&P UK Broad Market index has delivered an overall return of 30.95%. Returns are calculated using a time-weighted rate of return (TWRR) methodology that includes dividends reinvested and excludes trading costs. The S&P UK Broad Market returns include dividends reinvested. Returns are measured from the date of each recommendation to the close of trading on 31/03/2024. 2 recommendations per month have been made since 27/02/2012.
- Motley Fool Share Advisor first recommended shares of Britvic plc (LSE:BVIC) on 23/07/2012. As of the close of trading on 31/03/2024 the shares had gained 333.55%. The return is calculated using a time-weighted rate of return (TTWR) methodology that includes dividends reinvested and excludes trading costs.
- Motley Fool Share Advisor first recommended shares of HomeServe plc (LSE:HSV) on 28/08/2012. As of the close of trading on 31/03/2024 the shares had gained 623.6%. The return is calculated using a time-weighted rate of return (TTWR) methodology that includes dividends reinvested and excludes trading costs.
- Motley Fool Share Advisor first recommended shares of Renishaw plc (LSE:RSW) on 23/04/2012. As of the close of trading on 31/03/2024 the shares had gained 272.85%. The return is calculated using a time-weighted rate of return (TTWR) methodology that includes dividends reinvested and excludes trading costs.
- Motley Fool Share Advisor first recommended shares of Rio Tinto plc (LSE:RIO) on 11/01/2016. This position was closed out 14/08/2017, locking in a return of 123.5%. The return is calculated using a time-weighted rate of return (TTWR) methodology that includes dividends reinvested and excludes trading costs.
- Your card will be charged £99 for your first year of service. At the end of this introductory period, your subscription will automatically renew at £149 annually. You may cancel your membership at any time by contacting [email protected]. If you cancel within your first 30 days you will receive a full subscription refund. After this time, your initial subscription is non-refundable. This special introductory offer may be withdrawn from sale at any point without notice.
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