“If the girls don’t have a swimsuit, it’s not a problem.”
That’s what E.B. Tucker told me last year… and his insight saved me thousands of dollars.
Last July, I attended the Sprott Natural Resource Symposium in Vancouver—a must-attend event for natural resource investors. It’s where companies, financiers, and investors come together to share projects and ideas.
During the conference, I caught up with E.B., editor of Strategic Investor. He’s also a good friend.
It was my first time at the Sprott symposium. But E.B.’s a veteran of the conference and graciously showed me around. (He was a managing director of an investment firm focused on gold and silver equities—and is now on the board of a gold royalty company. So he’s been visiting Vancouver for years.)
As all investment analysts do when getting together, we eventually talked stocks.
I told E.B. about a small marijuana company I was excited about. After it rose over 200%, I sold a third of my shares to take some profits off the table.
Since the company had a unique business model, I thought I’d let the rest ride; after all, I was playing with house money. But I don’t like losing any money—period. So I asked him about the company.
That’s when E.B. told me about the girls without swimsuits…
Hot Tub Parties
E.B.’s well-connected. So it pays to listen to him.
And when he told me that one of his trusted sources heard that some of the people behind the marijuana company had become reckless with its finances, my ears perked up.
Rumor had it that these guys bought an expensive penthouse in downtown Toronto and used it to host lavish parties nightly. The parties included the finest foods and the best booze—and often ended in the hot tub.
“If the girls don’t have a swimsuit, it’s not a problem,” E.B. told me. “The guestroom had racks filled with custom-made white bikinis. They even had the host’s initials sewn into them.”
Now, I don’t begrudge a guy if he wants to splurge on lavish parties or spend time in a hot tub with the ladies—good for him. But I don’t want that guy involved in a company I own shares in, either… especially if he’d just raised a bunch of money from investors.
Even if there was only a bit of truth to these rumors, it would reflect poorly on the company. So I sold.
And it’s a good thing I did…
Since then, shares are down 30%… Meanwhile, other marijuana companies are up more than 100%.
Here’s why I’m telling you this story…
Regular readers know I love to look at financial statements and read through conference calls. That’s how I find many of my money-making ideas.
But you also need to be well-connected. And nothing illustrates that better than my conversation with E.B.
E.B.’s Escape Summit
There’s no doubt in my mind that the quality of management matters more than anything else when it comes to researching small companies.
You can often spot bad management teams by looking for executives who start living large shortly after raising a lot of capital from their shareholders.
And this is why E.B. is one of the best stock pickers I know.
He doesn’t just read through a company’s financial statements. He does boots-on-the-ground research and talks to insiders, too. That’s how he got the scoop on the company spending a bundle to throw lavish parties.
And E.B. is also famous for his track record of nailing big calls…
He still makes a 20% passive income stream from the moves he made right after the 2008 housing crisis. And more recently, he’s shown his subscribers the big opportunities in legal sports betting and America’s “new energy” metals.
In short, E.B. knows how to spot trends—while making the right moves to book huge profits.
And tomorrow at 8 p.m. ET, E.B. is holding a special presentation he’s calling “The Stock Market Escape Summit.” During the event, he’ll reveal his top investing strategies for 2019… how he knows when it’s time to be a contrarian… and a little-known type of investment that generates 10x more money than options—with lower risk.
E.B. is a guy I follow regularly. He tells readers what’s happening in the world and where to find the best ways to profit. So I recommend you register for his free event right here.
Analyst, The Palm Beach Daily
P.S. As I mentioned above, E.B. will hold a special summit tomorrow at 8 p.m. He’ll also be joined by longtime PBRG friend and legendary gold speculator Doug Casey.
Doug has made millions as a speculator. But he didn’t make all that money with just stocks and options… Many of his biggest winners came from a unique type of security that doesn’t trade on the regular stock market.
And for the first time, he’s sharing all the details during E.B.’s investment summit. You can register for this free event right here…