Investment newsletters: Are they worth the money?

Tips for choosing a financial report that’s right for you

A look at Doug Casey, Casey Research, Thom Calandra, Ticker Trax, James Dines, The Dines Letter and John Kaiser, Kaiser Bottom-Fish

With the many investment and financial newsletters in the marketplace today, would be subscribers likely have a difficult decision in determining what publication is best for them.

One of the most popular names in the newsletter world is Doug Casey of Casey Research, who publishes a number of advisories specializing in natural resource investing. Casey’s publications claim to be unique in their assertion that “market dislocations are created by governments which, by trying to “fix” or “manage” a situation, create unintended consequences that can be profitably acted upon.”

Casey Research looks for opportunities in every sector and concentrates on those sectors with significant upside potential. The advisories also cover “powerful” trends in the economy and investment markets.

A self-described contrarian, James Dines of The Dines Letter is also well known to followers of investment newsletters. What separates Dines from other newsletters, according to him, is what he claims to be an “unequaled record of correct calls … (as well as) an in-depth explanation of world events and politics and how they affect your investments.”

Dines also asserts that subscribers will also get a portfolio of recommended stocks that is kept up-to-date; specific buy, sell and hold recommendations; a review of what other commentators are currently saying and Dines’ response; plus easy-to-read charts and graphs. In addition, Dines calls himself “The Original Uranium Bug” who predicted the most recent uranium bull market.

A sought-after speaker at resource shows, John Kaiser of Kaiser Bottom-Fish, is another financial newsletter writer with a loyal following. A mining analyst with over 25 years experience, Kaiser offers “traditional newsletter style recommendations and commentaries, as well as a comprehensive database of precious and base metals mining and exploration company profiles along with research tools that include metal based project resource tables, proprietary sectoral indices and management tracking.”

His bottom-fishing strategy targets juniors that are early in their life cycle and consequently have not yet undergone a spec cycle, or that are trading in the trough between spec cycles. Kasier claims to be one of the few independent analysts with an in-depth knowledge of diamond exploration.

Another newsletter worthy of mention is Ticker Trax by Thom Calandra, which is published by Stockhouse.com. Although this financial newsletter has been in existence for just six months, Calandra has been a financial writer/editor for more than 27 years, having co-founded CBS MarketWatch and MarketWatch.com. Earlier in his career, he worked as a journalist for organizations such as Bloomberg and the Financial Times of London. Thom was one of the pundits that pegged gold as a long-term hold back when it was $300 ounce.

Ticker Trax achieved early success with its prospect BioCryst Pharmaceuticals (NASDAQ: BCRX), which was considered first at about $1.70 and then again at $1.40 before surging to an intraday high of $4.89 shortly there after.

Thom Calandra preaches patience in order to mark gains of 100% and 200% and even 2,000%. He tries to provide the Planetary Prospects (stocks he favors) that will prepare an individual for better and worse in coming years.

Ticker Trax is unique in that it feels that by immersing itself in the respective industries, the individuals and the properties and products, that they are ’scrubbing’ the companies, researching them in a way that fills the vacuum out there for under-covered (usually small) companies. Ticker Trax motto: We can create EXTREME WEALTH for those willing to wait a year or two or three.

Tips for choosing a financial newsletter

• Find a publication or writer with an established reputation. Don’t discount a newsletter just because it has been in circulation for less than five years, for example. Seek out the experience and qualifications of the principal individual providing the information.

• Ask for their track record of past stock predictions, as well as previous insights into economic and investment trends. Most newsletters will tell you about stocks that soared 500% since being mentioned, but what about the overall performance of all the companies covered as compared with the S&P 500, or other benchmarks. Be wary of a newsletter that only mentions its big winners but claims to have few or no losers – nobody is that good over the long term.

• Obtain some current stock picks. You may even want to follow them for a few months and see how they perform. If the advisor is only chasing hot sectors, then their recommendations may be poised for a big fall.

• Find out the total number of subscribers. Fewer is likely better seeing that too many subscribers will likely drive up the price of stock picks before you have a chance to get in.

• Don’t be scared off by the newsletter’s price. Some newsletters with the greatest costs might well be worth the money paid.