-- Posted Friday, 16 March 2007 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Friday, March 16, 2007
“Phenomenally accurate forecasts”
We’ve watched the shares of homebuilders unravel for more than a year, but what if I were to tell you there’s a side to the construction business that’s still going gangbusters? Well there is, evidently, and my source, a subscriber whose company achieved 25% growth in the last fiscal year, says he’s intent on extracting all of the lucre he can while the good times last. Here’s the note I received yesterday from John D., whose against-the-grain observations have been featured here before:
“I know you are blown away by my comments about construction,” he writes. “The latest real estate mania in Southern California is a commercial/industrial condo craze. We’ve been involved in over a million square feet of these type units over the past year-plus, and we also have about another 500,000 square feet under contract.
$360 per Foot!
“An industrial/ commercial condo is a 2,500-10,000 square foot shell meant for ‘end-users.’ The deal works like this: A business will purchase a unit, do its own interior improvements, move in and make mortgage payments just like a homeowner. You pay association dues, etc. These ‘shells’ sell for between $130 to $300 per foot! Plus, there are the tenant improvements, which can run from $40-$60 per foot! Quite a price tag for a ‘condo,’ eh? No doubt, there’s going to be a huge inventory of these units with no buyers somewhere down the road. But as long as someone is going to pay me to build them I'll keep cashing the checks.
“Another sector that is very strong in Southern California is multi-family housing. I have a good friend who owns several apartment buildings with, effectively, zero vacancy rates. There is a huge shortage of rental units.
‘Doing What I Know’
“I love the construction business -- I know I must be nuts -- and as a company, we are always looking to expand into new areas and to be as diverse as possible in a constantly changing marketplace. Incidentally, I really enjoyed your Hidden Pivot seminar in San Francisco. I haven’t been doing much trading, but I enjoy the education I’ve been receiving in your chat room. I’ve found that I make a lot more money doing what I know best, and that happens to be the construction business.
“Believe it or not we are growing and will continue to be aggressive in the industry. I know only one way to play and that is aggressively. Last fiscal year we did $16 million in volume, this fiscal year, $20 million. That’s a full-time job!”
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Want to Forecast Like a Pro?
Plans for the first online Hidden Pivot seminar are nearly complete. The two-day event will be held via Webex in late March or early April, most probably on successive weekend mornings. There will also be at least one lengthy Q&A session to follow, just as there has been on Sunday afternoons to conclude the on-site course.
This will be an excellent opportunity for those of you who were unable to attend the classes I gave last year in New York, Sydney, Vancouver, San Francisco and Denver. If you’ve visited the chat room and marveled at the forecasting skill of seminar grads, this seminar is designed to quickly bring you up to their level. While I cannot guarantee that the course will turn you into a fabulously rich trader, I can promise that with a little diligence and practice, your ability to precisely predict price reversals in stocks, indexes, options and commodities will be at least as good as anyone whose forecasts you have ever paid for.
I will be able to offer this course for under $1,000, since many of the expenses that I've incurred in holding a “live” seminar – including hotel and travel costs, and the rental of a conference facility -- will not be a factor. If you are seriously interested in attending, click here to get on the mailing list.
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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2006, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Friday, 16 March 2007 | Digg This Article | Source: GoldSeek.com
