Rogue Investing Report Issue 12

Hello Rogue Investors,

I wanted to wait until I really had something good before I sent out my next newsletter. So I spent the last month searching through the entire database of all U.S. stocks (New York Stock Exchange, NASDAQ and American Stock Exchange) searching for the most undervalued stocks in the world. After almost 80 hours of research, I found 50 companies with high projected earnings growth, high return on equity (ROE), high profit margins, low debt, and low price to earnings ratios (P/E).

Not surprisingly, the final list does not include the same old large, overpriced companies that professional stock analysts are always trying to convince you to buy. All of the companies on the list are small to medium-sized companies that are growing rapidly while other companies are struggling or going out of business.

If you look at how most of the best investors in the world really make money, they buy small and medium-sized companies when they are cheap and hold on until they become really big companies. This strategy has consistently worked well for me.

If you are wondering what to do in this uncertain investing environment, I urge you to start making your own investment decisions. No one understands your investment goals and tolerance for risk better than you do. Also, if you haven't noticed, you can't trust most professional money managers.

For only $9.97, you can get started on your journey to financial freedom by downloading this list:

****50 of the Most Undervalued Stocks in the World****

Click on the following link to secure your list:

http://www.mindlikewater.com/stock_investing/stock_screen_offer.html

To help you make better investing decisions, I am going to continue to provide this type of stock research at very affordable prices for my newsletter subscribers.

Happy Investing.

Bryan Rundell

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ROGUE INVESTING REPORT
Take control of your financial future!
Issue #12: March 12, 2003
Publisher: Mind Like Water, Inc.
http://www.rogueinvestor.com
newsletter@rogueinvestor.com

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Table of Contents
1. Feature Article: A Little Perspective
2. Stock of the Month: Check Point Software (CHKP)
3. Tip of the Month
4. Real Estate Investing

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Feature Article: A Little Perspective
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One of my favorite stories in life is about Donald and Mildred Othmer. Family friends of then largely unknown Warren Buffet, Donald and Mildred invested $50,000 of their own money in Berkshire Hathaway in 1970. Then they waited. They didn't try to time the market or predict the economy or buy stock options. While they waited the Vietnam War happened, the 1973/1974 bear market happened and the oil embargo happened. Throughout the 1970s and early 1980s, the rate of inflation exploded and many stocks and mutual funds got hammered. However, the Othmers never gave up. Then in 1998, when they finally decided to sell some of their investments, a funny thing happened. Their $50,000 investment in Berkshire Hathaway was worth $750 million.

Don't forget this story. Successful investing is more about selecting the right investments and holding on than anything else. Warren Buffet has frequently stated that patience is one of the most important traits of a successful investor.

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Stock of the Month: Check Point Software (CHKP)
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Every wonder what company makes most of the money in the computer security market? Check Point Software is the answer. They supply security software to some of the largest players in the market, including IBM and Dell Computer. This relatively unknown company founded in Israel looks very attractive at current prices.

With more than a billion dollars in cash, the company can wait out the current tech slump. Over the next decade, security software will be in demand and the company is projected to grow earnings at better than 15 percent per year; the P/E is currently only 14. Return on equity is better than 20 percent per year and in Israel, the corporate income tax rate is only 16 percent per year, 50 percent less than most other industrialized nations. Combine all these factors and Check Point Software looks promising.

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Tip of the Month
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Buy undervalued companies and be extremely patient, and you can retire rich.

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Real Estate Investing
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With money market funds paying less than 2 percent per year, you would think it is impossible to get a decent return on your money with limited risk. Actually, the opposite is true. With all the uncertainty in the marketplace, real estate investment trusts, or REITs as they are commonly called, are becoming an incredible bargain. I have profiled REITs before, but since I last wrote about REITs their dividend payments have gone up but their prices have stayed the same or gone down.

Many excellent REITs now have dividend yields between 8 and 10 percent, more than twice what 10-year U.S. treasury bonds are yielding. With these great prices I have started to add to my REIT portfolio. My favorite is Hospitality Properties Trust (HPT). With a dividend yield of over 9 percent, limited debt and a strong management team, HPT is one of the best REITs around.

If you have an investing question, email me at roguereport@rogueinvestor.com.

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Disclaimer: There are no guarantees in investing. I make no assurances regarding the investment information presented in the Rogue Investing Report.

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