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This Chinese Company Won't Let Buffett Buy Any More Shares... But You Can
By: Andy Obermueller
Chief Investment Strategist
Government-Driven Investing, Fast-Track Millionaire

The electric car boom is coming... and when it does, a small group of companies will make out like bandits.

In fact, one company already is. It's my favorite "electric car" play -- and it's up +415% so far this year and headed higher.

How much higher?

Let's just say the company's CEO cut off Warren Buffett from loading up on any more shares. Buffett wanted a 25% stake. The Chinese CEO wouldn't give him more than 10%.

That's a serious sign of some explosive growth potential.
 

What President Obama Isn't Telling You About His Administration's Push to Develop Electric Cars 

The most telling thing about high-tech battery manufacturers is who's investing in them: Uncle Sam. 

President Obama wants one million electric cars on the road by 2015. J.P. Morgan says hybrid sales will hit 9.6 million a year by 2018. 

To further Mr. Obama's vision, the Department of Energy has been throwing some serious federal dollars at the problem through its Advanced Technology Vehicle Manufacturing Incentive Program. 

In late June the program offered $2.6 billion to assist Ford, Nissan and the boutique sports car maker Tesla. 

"I'm committed to a strategy that ensures America leads in the design and the deployment of the next generation of clean-energy vehicles," the president said. 

Does that make you excited about buying U.S. battery makers? It shouldn't. 
 

The White House's Little Secret

The reason President Obama has to say he wants America to lead is because we don't lead in this area right now.  If we were the leader, then the president would talk about what a great achievement that was.  He'd sing about American ingenuity.  But he isn't doing either of those things.

You see, no president wants the U.S. to be dependent on foreign oil.  But it's just as important that the country not be beholden to another country for whatever technology helps lessen our petroleum consumption. 

President Obama knows electric cars can help the country use less gas, but he doesn't want us to be dependent on other countries for advanced vehicle-battery technology.  And right now that's exactly where we are.  The United States is way behind the curve.  China is the leader.

That's why the U.S. is devoting its resources to advancing its battery technology.  That's why the government is helped launch the shares of A123 on September 24th.

In the meantime, though, Chinese battery makers are able to market the cutting edge-technology they've already developed. 

My prediction?

China will dominate its own market and will build a larger footprint throughout the developing world.  The United States eventually will produce batteries for its domestic market -- the world's largest. 

As the technologies even out, automakers will begin to compete on price.  This will tip the scales back to the Chinese. And when that happens, one firm will have the technological edge -- and stands to profit the most...
 

The Single Best Way to Profit from the Coming Plug-in Electric Car Boom: This Chinese Battery Maker

I recently heard about an entity that reverse-engineered a battery-powered truck that was built in China. 

As you already know, making things even more interesting is the fact that this Chinese battery maker is 10%-owned by super investor Warren Buffett.

Here's the best part, though: what group recently bought one of this company's trucks just so it could take it apart and figure out how it worked?

The U.S. Department of Energy.

This Chinese battery maker is building batteries with more range than GM's 230mpg Chevy Volt -- and for a lot less money. 

The company was launched in 1995, and within five years it became the go-to supplier for cell phone batteries, building parts for Motorola, Sony Ericsson, Nokia and Samsung.

It also makes the battery for Apple's iPhone and iPod, and it's one of only four manufacturers to master the three dominant rechargeable battery technologies -- lithium ion, nickel cadmium and NiMH. 

And instead of using expensive robots on gleaming automated assembly lines, it uses cheap Chinese labor.  The company pays the nation's top engineering graduates about $700 a month. This, the CEO says, is the company's "human resource" advantage.  

It seems to work.  The company moved into the automotive space in 2003 by buying a state-owned Chinese car company that was on its last legs.  Now, one of the company's models is the best-selling car in China. And if you're willing to go to China, you can buy it today.  It costs $22,000 -- about the same as a Toyota Prius -- and gets nearly 90 miles to the gallon. 

In Summary:

*Most of the push into alternative energy doesn't deal with cars, even though they are among the biggest emitters of carbon dioxide.

*The inevitable future of automobiles lies in electric or partly electric "hybrid" cars.

*The most vital component of the electric car is not the motor, it's the battery. One company, the world's leading manufacturer of cell phone batteries, has the edge.

Get the Name of This stock!

It can go half again as far as the Chevy Volt without a charge, and it can be powered up by a typical household outlet.  The Volt, due out in late 2010, is not only less efficient, but it also costs more.  The sticker price is expected to come in at $40,000. 

 
The reason to buy this company is the future.  That's where Warren Buffett's head is at. He's not looking at this quarter or even this year.  Instead, Buffett's looking at the company's ability to sustain a significant competitive advantage over the long term.

-Do people need cheap cars?  Yes.

-Is the market for inexpensive vehicles exploding in China, India, Africa and Eastern Europe?  Yes. 

-Do electric cars look like the most likely alternative to the U.S. fleet of gasoline-powered vehicles?  Yes. 

-Will China ever run out of cheap labor?  No. 

-Can this company keep up its impressive rate of growth? There's no reason why it can't.


Thus a modest company with $3.8 billion in sales and $146.9 million in 2008 profits could easily be bringing in $12 billion in sales and $1.2 billion in profits in five years.  After all, it only took half that time for it to become the dominant automaker in China.

The CEO -- already a billionaire -- seems to agree that scenario is possible.  Buffett, who didn't blink at buying shares selling for more than 30 times earnings, wanted to buy 25% of the company, but its CEO turned him down.  He said he'd only part with 10% of the company, and not a single share more.

"That was a good sign," Buffett said.
 

Investors Who Know the Potential Behind Plug-in Electric Vehicles Can't Afford to Sit on the Sidelines

I highly recommend investing alongside Buffett and I think the stock will outperform the broader market for years to come.

I recommended this Chinese battery maker to the readers of my Government-Driven Investing newsletter earlier this month, and it's already jumped +40%.

In fact, it's up +415% for the year and I think it's headed much higher.

You'll find the name and ticker symbol of this stock in my special report, Jump-Start Your Portfolio with Government-Juiced Batteries.

Get the Name of This Stock!

This Chinese battery maker is just one of the ways the government can help boost your portfolio...
 

Investments that are Guaranteed to Succeed ... Thanks to the Daunting Power of the Federal Government

You need an edge that puts the odds squarely on your side.

The best way to do that today... indeed the only way... is to limit your investments to those that are virtually guaranteed to succeed -- thanks to the daunting power of the federal government.

The government is by far the biggest player in our economy. Like a whale in a pond, it sends shock waves through the economy with its every move.

These waves create tsunamis of cash that inject billions of dollars into companies in the right place at the right time.
 

The Government Made Millionaires of Thousands of Dell, Oracle and Amgen backers -- Who's Next?

We see it again and again. Whenever Washington decides to help a new industry get off the ground, the investment profits follow in lockstep. This holds true whether it's the Internet, nanotechnology, wind power, electric cars or any other area.

When the government began its massive effort to modernize its computer systems in the mid-1990s, Oracle and Dell were the main suppliers. These lucrative contracts kick-started epic growth at both companies, as they branched out to consumers and businesses worldwide.

Investors who got on board Oracle back then brought home gains of +1,185% by the end of the decade. Dell saw their shares skyrocket +7,861% over the same time, turning $10,000 into a sweet $796,100.

If you missed out on the government-fueled tech bonanza of the 1990s, don't feel too bad... an instant replay is straight ahead. In fact, the flood of government cash into the market makes earlier programs look like peanuts. Back the right company and you have as close to a guaranteed jackpot as you'll ever find on Wall Street.

I've identified at least seven sectors that will be flooded with so much new government cash, shares almost have to climb. I wouldn't be surprised to see them double in a year. I'll share the highlights in a minute. But first let me tell you how to get a steady stream of government-fueled stock picks delivered to your email inbox -- so you don't have to hunt for them on your own.
 

It's Time To Make Some Cash From The News

The news media has devoted millions of words and thousands of TV hours to the financial crisis and the government stimulus. But 99% of it is basic news and bickering about the size or direction of the rescue package.

None of that whining helps you make money. If you want to profit from what is undoubtedly the biggest financial story of your lifetime, you need to ignore the partisan bickering and government bashing. You need a service that devotes 100% of its attention to finding the best ways for YOU to profit from everything that's going on.

You could spend weeks looking for such a publication. We did -- and it didn't exist.

So we started one ourselves: Government-Driven Investing.

It's the first and only publication devoted exclusively to helping investors profit from government spending and policies.

If the trillions pouring out of Washington make you wonder "What's in it for me?" here's your answer.

 

When the Government Spends Money, You Make Money

Our investment concept at Government-Driven Investing is simplicity itself: When the government spends money, investors make money.

You simply have to identify the areas targeted for the highest government spending... find the companies in those sectors... single out the few most likely to profit... and buy their stocks.

It's only fair to admit that we have one huge advantage over ordinary investors: the pool of companies with a realistic shot at getting fat government contracts is tiny. So instead of combing through four or five thousand companies, we can focus our energies on just four or five hundred -- and still capture the lion's share of Washington's cash.

So are you ready to start hunting for profit plays backed by the immense spending power of the federal government? Good -- we're in a target-rich environment.

Here are 11 reasons to request a sample issue of Government-Driven Investing as soon as you can...

1. The financial crisis and the resulting government stimulus package is the biggest financial story of our lifetime. The government has already committed trillions to stabilize the economy and get business working again. This won't happen a second time. It can't, because there will be no more money left! A lot of this money is going to be spent over the next year or two, so you must act now if you want to capture the best opportunities.
   
2. Since the current level of spending is so much bigger than ever before, so are the rewards. Whenever the government gets involved, there is huge money to be made. And the best time to capitalize on this opportunity is right now.
   
3. This massive spending spree isn't the only way you can profit. New government regulations, policies and tax laws are sparking equally lucrative opportunities. We've seen these kinds of booms before. When the IRS cut taxes on dividends from 35% to 15% back in 2003 it fueled a huge boom in REITs, MLPs, preferred stocks, royalty trusts, and just about every sort of income investment. REITs, to pick just one example, soared 166% between the start of 2003 and the end of 2006. We think a similar boom is on the horizon in alternative energy, digital medical records (two of Obama's top spending priorities) and several other industries as well.
   
4. Years of profits lie ahead. Although now is the best time to capitalize on this opportunity, we have an endless horizon of such opportunities ahead of us. Government bailouts and stimulus spending will continue for at least three more years. Even when the economy is back on track, the government will continue to exert enormous power, influence and money. Washington spends more than $3 trillion every year -- even in normal times. There will always be plenty of ways to use the government to tilt the investing odds in your favor.
   
5. Traditional media outlets are no help. They simply cover the news. They devote countless hours to press conferences and partisan bickering, but they are NOT focusing on ways for investors to profit from the big news coming out of Washington. By contrast, that's all we do at Government-Driven Investing. What's more, it's the only full-time resource on government profits you'll find -- because there is no other.
   
6. We dig deeper. My team of field researchers and I are digging up unique opportunities that you aren't hearing about elsewhere. For example,  the U.S. government has mandated a law that calls for a +15,900% increase in the production of "cellulosic ethanol" by the year 2022. This will be a huge spark for the biofuel company we've discovered. Right now, it's our odds-on favorite to capture the biggest chunk of that +15,900% growth.
   
7. Government contracts can last decades. Our studies make it clear that government contractors beat the pants off regular firms who are forced to fight fiercely for every sliver of market share. Once one of our stocks gets on the government gravy train it's sitting pretty for years, even decades.
   
8. This is a global profit play. It's not just the U.S. government that can make you money. Dozens of other governments around the world have enormous financial clout. We're just as happy to profit from these governments as our own. For example, India is slated to spend between $50 billion and $55 billion on military hardware in the next few years.  The best way to profit is from an American airplane maker, one that most people don't associate with weapons.  And then there's China -- who, in a stunning reversal, just backed down from its oppressive control of the Internet.  Thanks to this decision, an online gaming firm (who has surprised Wall Street with better-than-expected earnings for the past 12 quarters) should continue its tremendous growth. I'll give you these specific picks in these markets in Government-Driven Investing.
   
9. Spectacular short-sale opportunities. For as many companies helped by Washington, there are companies hurt by government regulation and policies. Even the biggest companies in the country are not immune. When the government decided to break up AT&T, millions of investors were hurt. We have our eyes on several other big names in the government's cross-hairs right now. They are some of the most widely-held stocks in America. Millions of investors hold their shares and if you're one of them, you need to dump them now. Bottom line: An innocent company can see its stock plunge -90% when the government decides it's time for a policy change. The few who see it coming and actively short the stock end up profiting hand over fist. To help make sure you're on the winning side we've just released 3 Stocks That Will Suffer at the Hands of Congress. We send a free copy of this blacklist of firms that could be forced out of business by the government to every new subscriber to Government-Driven Investing.
   
10. If you want full-time coverage of this subject, you can't get it anywhere else but in Government-Driven Investing. StreetAuthority publishes the ONLY newsletter on this topic. We're the only game in town for anyone who wants specific full time help on how to leverage the greatest financial force on the planet.
   
11. We've discovered seven locked-in ways for investors to profit from the most likely new government spending and policies we see ahead. From wind power to battery-powered cars, we've developed a special report devoted to each of them, loaded with specific ways you can profit right now. These seven reports on profiting from the coming flood of trillions of government dollars are yours free with a trial subscription to Government-Driven Investing.

Try a Risk-Free Trial of Government-Driven Investing


The One Money-Making Strategy That Has Worked For Decades

Congress has never seen a problem they don't think they can spend their way out of. Small government activists celebrate if they can simply cut the rate of growth by a tenth of a percent.

Spending under President Bush's two terms grew at the fastest rate since the LBJ administration. And no one seriously believes that the Democrats -- who now control both Congress and the White House -- will reverse the flow.

There's always a bull market in government spending. And now it's simply gone into overdrive.

Meanwhile, every move Washington makes helps some business, somewhere. So I don't waste my time chasing the latest Wall Street fad. I stick to the one money-making strategy that has worked for decades.

Sure I'll take notice if corporate insiders are dumping or loading up on their own shares. I keep an eye on what Wall Street's few proven long-term winners are buying and selling... men like Warren Buffett who have made fortunes through every kind of market. But I never take my eyes off the biggest player of all... the only actor on the financial stage that can single-handedly grace our table with riches or yank them all away: the U.S. government.

Read on and I'll show you a few of the powerhouse stocks my team and I have found using our "Follow the Government Money" approach. Along the way, you'll also get a good idea of what you can expect every month in Government-Driven Investing.
 

A Long Tradition of Letting the Government Make Us Money

Government-Driven Investing is fairly new, but we've been covering government-driven picks at StreetAuthority for years. Every time the government spends a buck, someone profits... and plenty of times it's been us. Look below and you'll find a few of our favorite ways to ride the government's coattails to profits...

 

Way back in 2002, we recognized that Moody's benefits from stringent government regulation as to who can enter the ratings market. Within five years we had nearly tripled our money from this stock.
Bush re-election picks: In November 2004 we picked seven stocks that would be helped by the policies we saw taking shape for George W. Bush's second term: investment firms Goldman Sachs and Eaton Vance; healthcare giants Teva Pharmaceutical and United Healthcare; energy patch outfit BJ Services; defense contractor Ceradyne, and spirits importer Vina Concha y Toro. Each one made us money within a year... posting quick gains of up to +59.6%.
Homeland Security picks: In January 2005 we found three stocks that were in line for huge contracts from the Homeland Security Department. They were up an average of +47.4% a year later. American Science and Engineering, which makes X-ray screening devices to combat drug trafficking and weapons smuggling shot up +90.9%.

When the political winds shift in Washington, the new policies that result are always fertile grounds for profit-hungry investors.

In September 2005, when the drive for alternative energy was gathering increasing support on Capitol Hill, we picked two likely beneficiaries: Praxair and Ormat Technologies. By September 2009 they were up +66.2% and +70.9%, respectively.
In January 2007, we singled out a company that would benefit from increasingly strict government pollution controls: South-African based Sasol. A year later it was up +42.2%.
In October 2008 we looked forward to a post-election market and fingered United Healthcare as a likely winner. By September 2009 it was up +64.8% -- triple the S&P 500's performance over the same period.

As the current crisis unraveled, we continued to rack up profit after profit cueing off the actions of the White House and Congress...

When the stimulus package was signed into law on February 17th 2009, we identified McDermott International, a worldwide construction company, and General Cable, which makes critical copper, aluminum and fiber optic cables as infrastructure companies that would benefit. They shot up +32.0% and +41.7%, respectively, in a matter of weeks.
Valmont Industries is uniquely positioned to capitalize on two powerful global trends: wind power and water shortages. With the Feds pouring billions into shoring up our capabilities in both areas, we recommended this stock in January 2009 and it was up +80.6% by September 2009.
When we saw the wild run-up in Treasury Bonds as the Fed pushed rates down to basically zero, we decided it was unsustainable. So we recommended the UltraShort Lehman Treasury ETF, which benefits from a downturn in Treasuries. We added it to our portfolio in January 2009 and closed it out in June 2009 for a quick +51.5% gain.

Just imagine how much money you could make with a concentrated portfolio of government-driven picks!

Try a Risk-Free Trial of Government-Driven Investing


Here's Everything You'll Get With Government-Driven Investing...

 

Our exclusive "follow the money" stock picks -- Each month I'll give you my top choice of locked-in government-funded stock gainers. And I'll update you on stocks already in our Government-Driven Investing portfolio. My goal is to give you returns that steadily rise in any market thanks to the endless funding power behind them.

   

 

Instant email alerts to keep you on the money -- Every now and then an opportunity arises that just can't wait for the next issue to arrive. When I have to issue an immediate "buy" or "sell" signal, you'll know about it right away with an instant email alert.

   

 

Subscribers-Only Web Site -- Your subscription comes with complete access to our Government-Driven Investing web site, including easy access to current and past issues, news flashes, the portfolio, and a host of invaluable educational materials. You also get our entire archive of back issues, giving you every bit of advice and information we have released since the start of Government-Driven Investing -- just as if you had subscribed from Day One.

   

 

Mid-Month Updates -- In the middle of each month I tell you if anything important has happened to any of our stocks. I also pass along the best value opportunities I find between issues.

   
I've examined seven sectors on the receiving end of blistering government spending and regulation... and then picked a few stocks in each sector with the strongest potential to double over the next 12 months. The stocks in these reports should anchor every investor's portfolio:
   

 

Jump-Start Your Portfolio with Government-Juiced Batteries
The Green Future Means the Inevitability of the Electric Car, and This Stock is the Single Best Way to Profit

*Most of the push into alternative energy doesn't deal with cars, even though they are among the biggest emitters of carbon dioxide.

*The inevitable future of automobiles lies in electric or partly electric "hybrid" cars.

*The most vital component of the electric car is not the motor, it's the battery.

One company, the world's leading manufacturer of cell phone batteries, has the edge. You'll find its name in this report.

   
 
Double-Digit Yields Guaranteed by Uncle Sam
These two little-known mortgage buyers are now super-safe buys

*Mortgages convey a sense of risk in light of the sub-prime debacle, but most are safe, and some are even federally guaranteed.

*The Federal Reserve's moves to aide the economy have pushed rates to historic lows.  For credit-worthy customers, short-term borrowing is very inexpensive.

*REITs that borrow for the short-term and lend for the long-term by purchasing mortgages are experiencing a wider spread between the cost of funds and interest collected, leading to big payouts for shareholders at virtually no risk.

You'll find the two strongest players in this field in this report.

   
 

 

 

 

 

Government Mandate Spells +15,900% Growth

Current U.S. law, which went into effect on January 1st, mandates a +15,900% increase in production for "cellulosic biofuel" by 2022. Currently, there is only one publicly traded company in this space. It's the industry leader, and its stock has the potential to grow in concert with cellulosic ethanol quotas. That means upside of +15,900% during the next dozen years. That could turn every $1,000 invested into $160,000 in only 12 years. You'll get all the details on this opportunity -- including the name and ticker of this stock -- in this report.
   
 
Best Infrastructure Profit Plays for the $2.2 Trillion Repair Bill

*The Unites States has received a near-failing grade on its infrastructure. 

Every week, a new story emerges about a major infrastructure failure that must be fixed. 

*Bridges, roads, railways, dams, locks, power lines, power plants, water mains -- they all need hundreds of billions of dollars in repairs -- and soon. 

The recent stimulus plan has provisions to boost federal spending in this area.

*The need is even greater in emerging markets, where the infrastructure is decidedly minimal. 

Dozens of governments in these countries are ramping up spending to build infrastructure that will allow them to compete in a global economy -- and create jobs that will help shake off the worldwide recession. 

Three companies are going to capture much of this business.

You'll find their names in this report.

   
 
Government Profit Plays You Won't Hear About on TV

*The Unites States has 5% of the world's population and nearly 25% of its prisoners.

*Housing, feeding and caring for these prisoners costs billions of dollars each year. 

Much of this is outsourced to private companies.

*This outsourcing trend is likely to continue as federal and state budgets are stretched thin, leaving little funding for prisons and even less for new facilities.

Two companies will profit. One is the leading U.S. prison operator.

The other is the nation's only publicly traded inmate health care company.

You'll get both their names in this report. 

   
 
Alternative Energy: Obama's Passion Meets Your Portfolio

President Obama, a few days after being sworn in as president, delivered his first weekly radio address. 

One of the first things the new 44th president mentioned was wind power. 

At the cornerstone of his vision is the creation of a "green-collar" economy that attempts to accomplish two goals: The first is the creation of millions of jobs; the second is reducing the nation's dependence on oil in favor of other, renewable energy options. 

"To accelerate the creation of a clean-energy economy," Mr. Obama said, "we will double our capacity to generate alternative sources of energy like wind, solar, and biofuels over the next three years."

You'll find my three favorite wind plays in this report.
   
 
Swine Flu Pandemic: Government Response Could Lead to Big Profits for These Two Drugmakers

*Public health officials say an influenza pandemic could kill 71 million people, which the World Bank says would cost the global economy $3 trillion.

*To fend off any potential catastrophe, the U.S. government and other governments and health agencies around the world will commit billions to stockpiling antiviral drugs and vaccines that can stop a flu outbreak.

Government response to this pandemic could lead to big profits for two drugmakers.

You'll find their names in this report.

   
  My Personal Guarantee: ZERO RISK for ONE FULL YEAR!
Try Government-Driven Investing RISK FREE for one full year.

If you're not completely satisfied for any reason, simply cancel on our website or by clicking on the cancel link located at the bottom of each and every issue -- for a full 100% refund.

The issues and research reports you received are yours to keep.

Even if you decide to cancel on the last day of your subscription, we'll send all your money back.

You have absolutely nothing to lose.

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Finally, No More Guessing

Investing is tough enough in good times. 

In this shell-shocked economy, you need an edge that puts the odds squarely on your side.

The best way to do that today... indeed the only way... is to limit your investments to those that are virtually guaranteed to succeed -- thanks to the daunting power of the federal government.

When you subscribe to Government-Driven Investing, you'll no longer have to guess which sector's going up and which is going down.

Companies profiting from government spending and regulation are immune from those cycles. You'll be investing in a bull market that never ends.

Your odds will certainly be a heck of a lot better than listening to the usual suspects. Take Wall Street analysts. As a group, their forecasting record is horrible. In 2007, analysts told us the Dow would hit 15,000. You know what happened next.

In the middle of 2008, 12 of the 16 analysts following Citigroup had "buy" ratings on the stock -- when it was trading above $50. Now it's a penny stock.

In a world where 7 out of 10 mutual fund managers lose to the unmanaged S&P 500... and where half the economists are wrong about which way interest rates are heading... why place your bets with these perennial losers?

Especially when you can invest in companies that are immune to nearly all outside economic forces. These stocks I'm telling you about today can anchor your portfolio for years to come, throwing off the kind of profits that can change your life.

Government-Driven Investing will change the way you look at investing forever. 
And no other service besides Government-Driven Investing is out there to help you.

Remember, every time the government spends a buck or passes a law, someone profits... and it should be you.

If you don't grab this opportunity now, you might regret it for a long time.

I urge you to give us a try.

Try a Risk-Free Trial of Government-Driven Investing

Many happy returns --
Andy Obermueller
Editor
StreetAuthority
Government-Driven Investing


The Hidden "Wholesale" Market Where Gold Sells for $387/oz
Traditionally this type of gold investment sells at a lofty premium to gold bullion. But right now it's on sale for -67% cheaper. Market distortions like this never last. When this gold investment snaps back in line with bullion, owners could make a lot of money in a hurry. Details here.
 
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