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Wall Street legend Michael Steinhardt recently emerged from retirement and is since backing a new fund idea that aims to capture dividends through what looks to be an intriguing investment idea and program, under the banner of WisdomTree Investments, that is also shown to involve Dr Jeremy Siegel of Wharton Business School. Interestingly, it carries this cautionary note: Based on back testing of hypothetical results. While this kind of investment is unlikely to make anyone the next Michael Steinhardt anytime soon, he does point out that he got to be where he is today, by finding and acting upon overlooked ideas on Wall Street. In other words, by exploiting an unknown niche which can be as simple as discovering winning stocks that are under Wall Street's radar or are not covered by the mainstream. Since our MODAR service is a live, real-time advisory service, it is hardly a hypothetically back-tested type of medium, in fact MODAR is tested in real-time each and every day and has been shown to deliver exceptional results daily, weekly and monthly for the past 328 days straight and in the process of this intense daily dynamic real-time quantum leap analysis of literally thousands of stocks, Modar's niche is spotting anomalies or situations that tend to stand out for one reason or another and often for a whole swath of new reasons never ever seen before.

And while, the above idea might not make you the next Michael Steinhardt, one idea we have come up with that has a never ending supply of potential candidates, while entailing a higher than average degree of risk, could make you money for the rest of your days and at least put you on the path to Steinhardtdom. And while the risk is higher, it should be borne in mind the higher the risk the greater potential return.

A lot of people claim to know some of Wall Streets best kept secrets, but a lot of times they're not worth a hill of beans. Yet the secret you are about to learn, is a proven concept in not just making money, but actually tons of money, through potentially awesome returns that can be gained over a relatively short period of time, that in some cases over the past few years, have been the undisputable kings of this boom.

Investing in Bankrupt Companies

Investing in Bankrupt Companies is not for the faint of heart, but there are some ways in which it is possible to take advantage of the beaten down values that tend to put bankrupt companies where they belong, at least in the early going and while Bankrupt Companies carry many special warning signs of the risk of total loss of one's investment and their symbols are denoted by the addition of a Q on the end, some degree of homework and analysis can separate the wheat from the chaff and in so doing, it can be possible to come up with a methodical approach to investing in bankrupt issues that can sometimes yield staggering returns over relatively short time periods. For example up to a stunning 10,000 percent in about 18 months to 2 years or so. Some degree of technical analysis ability is also required in aiding an astute investor to try and identify suitable entry points, exit points and timing, as well as being able to recognize emerging uptrends or downtrends in such issues and the like. Or, an alternative idea would be to rely on MODAR to find these issues for you and help you to maximize from these fairly frequent potential opportunities as stock for stock MODAR's record in bankrupt issues has been better than daily routine ideas.   And these routine ideas have been proven to be very good since we come up with better than 100 most every day, living up to our moniker as the Google of Investment Ideas. The important thing to realize about bankrupt companies, is that in most cases, the real value has been absolutely pounded out of the stock, such that by the time it hits the pink sheets it is more often than not at its low point or very close to it.   Case in point: Owens Corning Inc OWENQ which incidentally is expected to emerge from bankruptcy in November, hit the pink sheets with its Q in tail early in 2003 and quickly sold down to an all time record low of 4 cents on March 25 2003. Within less than 2 months, it closed at $1 per share and then proceeded to base out within sub-dollar ranges marked by numerous trading opportunities over the next 18 months before soaring anew to an all time in bankruptcy high of $5.71, enabling an initial 2,400% return in 2 months and ultimate return of 14,175%, in less than 2 years and one of our readers succeeded in pulling the best part of these returns all the way from the lows to the highs and in the meantime, MODAR has an absolute stunning record of trading successes in an out of OWENQ, registering just a few losses out of many many wins. And in another issue, HLSH that was consigned to the pink sheets as almost a quasi-bankrupt issue, it too began life on its lows at just a few cents, before soaring almost 100 fold to a high of 6.41 just 10 months later - A breathtaking performance by any Wall Street measure and that's not all, HLSH actually could be poised for another significant upside breakout following two years of exceptionally strong sideways action as Health South continues to recover from its near-death experience and its CEO re-builds from his own difficulties.   Of course for many investors and brokers, it is beneath their dignity to even go so far as look at a Pink Sheet issue, let alone invest in one, but the money that can be made on the Pink Sheets or OTC Bulletin Board is as good as the money that can be made in IBM, Microsoft or Google and in many cases, the money can be made a whole lot faster. Just take a look at the new Hydrogen Fuel upstart HyPowerFuel, or HYPF.pk that just days ago was trading at $0.40 cents and yesterday closed at $1.20 on the heels of two day recommendation on Modar.   And just yesterday, MODAR was again active in recommending CSHD.ob, albeit late due to a filter malfunction and internet problems, but a near 100% gainer in one day, on massive volume of five million shares, says a lot about how real the Bulletin Boards and Pink Sheets are. In fact even WisdomTree Investments WSDT.pk itself is listed on the Pink Sheets, further recognizing the growing prestige of the exchange.   More recently Delphi DPHIQ and bankrupt airline issues have provided tremendous upside, with DPHIQ soaring all the way from the $.30 cent range to almost $2 in a matter of weeks and Delta Airlines DALRQ providing similar returns over a few months. Northwest Air NWACQ has also provided some good trading opportunities to about half that of Delta. The interesting opportunities were also provided on the short side as these Airlines were headed for bankruptcy and assuming MODAR had built up a position by shorting up to $100,000 dollars in each issue on a scale down basis, from $5 down to the $1 range as both these issues neared the $1 level, the pressure became intense to then declare bankruptcy and immediately thereafter, both issues plunged to near $0.30, so that an average $3 short could have yielded $90,000.   The one thing that the pink sheets offer bankrupt companies is that by the time these issues are sold out, there's very little continued strong incentive to sell as the smarter long term holders decide to stick with the issue and see it through or even average down. What this actually does is it brings the focus of large scale bankruptcy speculators who are constantly on the lookout for companies that begin to display their potential to emerge from bankruptcy. As soon as that becomes apparent, there can be a tidal wave of buying from all over the World that can drive these issues sharply higher very rapidly indeed and often more rapidly than normal, because these issues tend to have such large numbers of shareholders that as soon as momentum begins to build there can be artificially tremendous buying in truncated timeframes and this tends to move the stocks up even more drastically, such as just recently occurred with Delta Airlines, which MODAR had been recommending on and off since the $0.30's range and then from the $0.50's and then extremely aggressively from the $0.70's range as it rapidly soared from there thru $1.00 and all the way to $1.70 in just two days on absolutely spectacular volume of 115 Million for this month alone, with Northwest Airlines not far behind and still delivering some impressive percentage gains also. The point we are making is, when these companies are sold out, they actually present little risk and simply superb upside potential. Remember, we are not the only people to figure out the almost unbelievable upside potential this much overlooked area provides and as the Pink Sheets become a more respectable trading exchange, which we feel has already happened through critically improved electronic execution over recent years, this is one very fertile arena for making money as some investors and readers here have seen one mining company rise 2,200% over that time making large numbers of millionaires in the process as have numerous other issues on both these emerging exchanges. Right now we are combing the bankruptcy arena looking for the next big opportunity that will likely be one company that appears to be poised to emerge from bankruptcy.   Whilst the risk is proportionally greater in bankrupt issues and we have to caution all investors that the risk of loss can be total, in the event that some unforeseen development could always occur, just as our family motto dictates "Firnum in Vitae Nihil" - "Nothing is sure in Life"...   Notwithstanding, we believe we have in our sights at this time, one company with exceptional upside potential, outstanding management, with not just a proven record in previous turnarounds from near bankrupt circumstances, but some stellar performances in the past: We are increasingly confident, that with a growing pipeline of Million Dollar plus potential sales, the kind of upside potential we see could actually eclipse even that of Delta Airlines recent performance and in time, if this company can execute on what amounts to be a formidable plan for reorganization and business strategies going forward, then ultimately the kind of potential of OWENQ or HLSH could lie ahead for this also.   Yesterday we wrote: Caution in stocks is increasingly warranted as Gold and Silver have been quietly and methodically recovering in recent days and in just the same way as we called this market rally nigh on two months ago, we at the same time counseled investors to continue accumulating Gold and Silver as the time to buy is before the next upmove, which we foresee as being near to imminent and worthy of large commitment to the metals markets at this time. In support of our case, Copper has remained notably firm and remains in a broader range in the mid $3.50's per pound that like Silver and Gold, tends to suggest that we could see a sudden and forceful breakout the upside soon...   Overnight Gold, Silver, Platinum and Palladium all moved higher in an impressive display of recovery, bearing out our feelings that a strong move in the metals was virtually imminent, but what might be the most interesting from here on out, could be the end of month pricing for these metals, that could potentially set them up for a very strong October surprise upside breakout that could be absolutely sensational along the following lines... 1. If Gold regains $650 per ounce it could quite rapidly and dramatically soar past $700 and at a stretch could find it self heading for new 26 year highs by slicing through $750 like a knife through butter... and 2. If Silver can exceed $12 per ounce it could find itself heading back over $13 in a hurry and that could open the way for a spectacular rally through $14 and $15 that could take it all the way to $18 equally rapidly along with the Gold and very possibly could open the way for a run through the low $20's to $25. This may sound like pie in the sky to some or many, but we could be dealing with an unfolding runaway bull move still this year. It's happened before.   Meanwhile the Dow Jones Industrials are now flirting with new all time record high levels and it'll probably accomplish this, by month's end...   Trade Well From the Desk of Savant  

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