About McCoach Research Group

The McCoach Research Group is dedicated to helping investors find undervalued mining stocks that have 10x or greater potential for profits.

We search for these opportunities as protection against the financial uncertainties that currently engulf the US and world markets. As the saying goes, "Great periods of danger and crisis are also periods of great opportunity." We believe the best opportunities for investors to protect themselves against the coming financial reckoning, exist with the precious metals and mining stocks.

In addition to our picks in the mining sector, we seek to provide the most accurate and truthful economic commentary that we can find to help our subscribers discern through the massive amount of disinformation provided by the mainstream media. Our newsletters also feature portfolios as an overall asset protection strategy, that is the summation of our investing philosophy for the current economic environment.

Let me explain in a little more detail.

Our investing philosophy is best summed up by J.Paul Getty, one of the most successful investors of modern times. What did Getty know about building wealth and investing for spectacular gains that his contemporaries didn't?

Several years before he died, Getty shared his "secret" In his autobiography, he explained that whenever he made an investment, he tried to apply this simple principal: If you want to make money, really big money, do what nobody else is doing. In Getty's own words, "Buy when everyone else is selling and hold until everyone else is buying." This is not merely a catchy slogan. It is the very essence of successful investment.

In Wall Street circles, this principle has come to be known as "contrarian investing." It is probably the simplest, sanest, most powerful and reliable moneymaking technique ever devised to buy low and sell high for maximum profit. It works in any market, from stocks to bonds, currencies, real estate, precious metals, collectibles or any other market that interests you - because human nature is the same everywhere.

You don't need special academic training to profit form it. All you need is an independent mind and an ounce of courage. If you want to buy low and sell high, you must train yourself to buy when everybody, including yourself, is feeling discouraged - when the news is bad. That is likely to be the bottom. And you should sell when everybody's is excited and the news is good because that's likely to be the top.

Unfortunately, too many people do just the opposite: they buy high and sell low. They're trend followers or, to put it more bluntly, they're crowd followers. The successful investor is a trendsetter, not a trend follower. He gets in - and out - ahead of the crowd.

At the McCoach Research Group, we have been recommending to our clients now for several years that they take a position in the precious metals and base metals mining shares. When we first began making these recommendations hardly anyone was listening, yet those early clients who did listen have made tremendous returns. They bought when the news concerning the mining sector was very negative. Even now, few are paying any attention to the mining sector and are still being lured by the Wall Street hype and disinformation for investing in blue chips and the general stock market. We believe that will prove very costly to investors as the bear market rally fizzles and the second leg down for general stocks worsens. While fortunes will be lost by the crowd in the coming stock market melt-down, we believe many new fortunes will be made in the mining stocks.

Richard Russell has weighed in on this very proposition. In his newsletter, Dow Theory Letters, he states in his December 2003 issue the following:

"I believe that fortunes will be made in the years ahead by those who are now establishing major positions in gold and gold shares. I've said this a number of times before, but I want to repeat it - These primary moves last longer than anyone believes possible - and they take the items higher than anyone thinks possible. We're now in a primary bull market in gold.. I believe gold (and very probably silver) will make fortunes for those who now take major positions in the precious metals."

The last super bull market in the precious metals from 1975 to 1980 saw many mining stocks go from under $2.00 a share in 1975 to the hundreds of dollars per share by 1980. Here are just a few of the many examples of what happened during that period.

A $5,000 investment in Lion Mines in 1975 turned into $27,142,857.00. Yes, that is not a misprint. Over 27 million dollars for just $5,000 invested. That is what J.P.Getty was talking about when he said, if you want to make big money, really big money!"

General Market Outlook

Our view on the current state of affairs for the general stock market is that we are seeing a bear market rally that will eventually head sharply lower. A key lesson about markets is this:

"Bear" Markets usually parallel the "Bull" markets that precede them. "Super-Bear" markets traditionally follow "Super- Bull" markets.

We have witnessed the greatest bull market in history where the Dow went from 825 in December 1981 to 11,257 in December 1999. We believe we will see a "Super Bear' market that will last for years, despite what the politicians and the main stream media want you to think. Unfortunately, many investors will be wiped out in this coming financial storm, which we believe will see the dollar collapse. One noted quote from Barron's magazine says it all:

"I don't know how anybody with an IQ over 70 can be anything but utterly pessimistic about the long-term outlook for the U.S. economy. We've lost our manufacturing base. We're financially irresponsible. The whole world hates us and everybody's - and I mean everybody's - emphasis is on the short-term outlook. Nobody is focused on solving real structural problems, organic structural problems that exist." Marty Whitman, Third Avenue Value Fund

From a historical viewpoint, the general stock market is still very overpriced and the precious metals and their mining shares are still very underpriced. If J.P. Getty was alive today, we believe he would be having a field day with purchases of precious metals and select mining stocks.

While the returns of gold bullion are negatively correlated with most other investment classes such as stocks, bonds and currencies, gold shares can provide an even more efficient investment insurance policy. This is true because gold mining companies profits, and thus share valuations, are leveraged to the price of gold. Historically, the leverage factor for major mining firms is somewhere between three and five times. Thus, if the price of gold rises by say 10%, we can expect the share prices of mining firms to rise by a factor of between 30% and 50%. Since we see the price of gold headed well above its all-time high of $875 an ounce, gold mining shares are going to do very, very well.

While we live in dangerous financial times, each period of danger and crisis provides exceptional opportunities to enhance and protect our wealth. We can't control what the politicians and power elite do, but we can take steps to protect our finances and loved ones. It is not "UnAmerican" to protect your money. Investments in the precious metals and their mining stocks should go a long way to accomplishing our objectives.

The McCoach Research Group was started to help investors find sensible speculations that have limited downside and huge upside potential. We make recommendations on mining stocks that in our opinion have 10 x or better potential under the current bull market conditions which we see lasting for many years to come. The best leverage to make such returns currently in our opinion is found in the junior mining stocks.

We finish this discussion with a quote from Warren Buffet, (another favorite of ours).

"To invest sucessfully over a lifetime does not require a stratospheric IQ, unusual business insights or insider information. What is needed is a sound intellectual framework for making decision and the ability to keep emotions from corroding that framework."

At the McCoach Research Group, we hope to provide that framework for your investing success in the mining stocks and any other market that interests us.

As other markets get undervalued and out of favor we will look to invest in them and will make suggestions of where J.P. Getty might have been placing some money!