A Wildly Profitable Inconvenient Truth…

Al Gore’s

Green Money Machine

EXPOSED!

Former VP Secretly Investing in

Green Giant Earmarked to

Profit Big from Cap and Trade

Invest in this stock before cap-and-trade bill (H.R. 2454) passes the Senate this October and you could make a 755% gain by December 31…

Dear friend,

Al Gore’s net worth has grown from $2 million to $100 million since he left office.

That’s 5,000% in just 9 years.

Or a gain every year of 555%.

Not too shabby for a career politician with no business experience.

So did he just get lucky?

Of course not!

While touring the US scaring you about global warming, Al and former Goldman Sachs banker David Blood founded Generation Investment Management.

As Al fear mongers and promotes the green companies of the future, David buys their stock.

So far they’ve invested over $683 million secretly snatched up stock in over 40 green energy companies.

It’s made Al and his pals rich.

Today you will find out that he’s about to get much richer.

And if you position yourself correctly, he will make you much richer too

See, once the American Clean Energy and Security Act of 2009 (aka “cap and trade”) passes the Senate this fall, it will flood one small company with tax dollars.

This company has ties to the Democratic elite and Wall Street. And it actually helped write H.R. 2454.

That means this company is virtually guaranteed fat government handouts at the expense of the American taxpayer.

You don’t have to believe in global warming to see the opportunity here…

Al Gore and his green energy pals will become very rich after cap and trade is signed into law.

And today, I’m going show you a simple, fast way you could earn between $75,000 and $150,000 by “piggy backing” on this trade.

I’m talking about watching your money grow almost 10 times as the government showers $100 billion in tax dollars on clean energy companies.

In essence, the government’s cap-and-trade boondoggle could buy you a new vacation home or help you pay off your mortgage.

It could even be the very thing you need to have an early retirement.

So how do you get a piece of Al Gore’s money machine?

How do you invest like Al Gore?

Don’t worry, it’s all in my urgent report “The Al Gore Green Energy Billionaire Report” that tells you exactly what to do.

In it I’ll show you how to buy the entire trillion-dollar carbon market… And grow your account ten times over…

Turning $1,000 into $10,000… or $10,000 into $100,000…

You could sit on the sidelines and watch green energy stocks explode higher… wishing that you had made the move…

Or you could do the smart thing and invest in what "could be the biggest economic windfall of the 21st century."

But before we get into that, let’s dig into what I discovered about Al Gore.

Because I’m confident you’ll be as amazed and enraged as I was by what you’re about to discover…

Make $10,000 For Every $1,000 You Invest

“What we discover in looking at the policies that Mr. Gore advocated… is that they will make him and his friends extremely wealthy at the expense of consumers, who will be stuck with skyrocketing energy prices.” 

- Competitive Enterprise Institute

director of energy and
global

warming
policy Myron Ebell

I’ll tell you what I think about climate change in just a moment. But really my opinion doesn’t matter.

What does matter is that the government is preparing to pump $100 billion into green energy companies across America..

That cash pile is going to create an abnormal amount of opportunities to drastically multiply your wealth many times over. There is plenty of money to be made.

Even better, the opportunity I’ll reveal to you today can be executed by a simple call to your broker.

All you need to do is pass on some very simple instructions in the special report I’ve prepared for you.

Nothing else…

It will give you the chance to make $10,000 on every $1,000 you invest, as federal money flows into one company following the passage of H.R. 2545.

Let me stress:This is almost guaranteed to happen.

Al Gore and his pals have put $23 million bucks into this company. Do you think he’d risk a quarter of his wealth unless he was onto a sure thing?

Al knows that this company is virtually guaranteed a huge market explosion as soon as the cap and trade law passes the Senate this fall.

He’s just positioning himself early… for maximum profits.

But before I show you how to take advantage of Al’s big payoff, I want you to know how Al’s green energy money machine works.

Once you do, you’ll fully understand how rapidly this windfall could change your life.

I am going to show you the five steps to Al’s plan… and how you can profit when the final step falls into place in October.

Step 1: “Blood and Gore”

In 2004 Al co-founded Generation Investment Management (GIM), a hedge fund devoted to investing in “green” companies.

Al was joined at GIM by former Goldman Sachs golden boy David Blood.

Together, “Blood and Gore,”  as they like to call themselves, called up all their wealthy friends in Washington, Wall Street and Hollywood and raised $5 billion dollars.

Then, suddenly, they closed the fund off so people like you and me wouldn’t get a piece of the pie.

$5 billion was all “Blood and Gore” needed to pull off the biggest heist in American History.

Step 2: An Inconvenient Truth

Once the money was raised, Al went to Hollywood with an idea for a movie.

In the lavish hotels of Beverly Hills, he pitched his idea for a documentary about global warming to his liberal friends.

By December 2004, the film started shooting. An Inconvenient Truth was finally released in 2006.

Al then traveled the world promoting the movie with the best-financed promotion of intellectual hysteria in history.

He said that an “end of the world” type scenario will occur if governments didn’t act immediately.

He booked pricey speaking events to show off his charts and graphs… quoted “experts”… and he even asked philosophers and religious leaders to save the planet from global warming.

But he said nothing about how he and his business partners were set to profit big off his global warming scam.

Al was greeted with huge crowds the world over.

His film won two Oscars. And he was given the Nobel Prize for his scare tactics.

Step 3: The Media Falls
Hook, Line and Sinker

Rather than debate global warming, the mainstream media parroted every word out of Al’s mouth and completely ignored his conflicts of interest.

Major print media mentioned green investing 3,485 times in 2006 — a 70% increase from the previous two years.

And going green became a cultural movement…

Paris dimmed the lights on the Eiffel Tower… Solar investments became hot – even for oil companies… Evangelicals preached the gospel of "creation care."

And scientists who disputed Al’s claims risked losing their jobs and having their reputations destroyed. 

Al has almost everyone scammed. Even conservative giant Newt Gingrich wrote a book demanding action on global warming.

Everyone was buying the hype.

Al’s plan was working perfectly….

Step 4: Cap and Trade

Once Democrats seized control of the House, the Senate and the presidency, there was no stopping Al’s last act.

You see, while he’s been touring the world, promoting his movie and scaring everyone about the world heating up, his banker friends back in New York and London have been very busy…

…Busy buying up shares in green energy companies all over the world.

 And they‘ve made a heap of money in the process.

Bloomberg reports that Al’s net worth jumped from $2 million to $100 million since he left office.

And According to Morningstar, Al Gore’s fund beat its peers by 12.6%.

Morningstar also says its investment approach was "one of the best around."

Fact is Al Gore’s “global sustainability fund” trounced the benchmark and most of its peers through 2008.

But the biggest profits are still to be had…

See, I’m about to show you how to make 1,000% + gains by investing before cap and trade is signed into law.

But it’s important to realize that you need to act right now to take home this gain.

Al has been calling for a laundry list of reforms since the Democrats came to power last year…

He wants a freeze on greenhouse gas emissions… a ban on new coal-fired power plants, tough new fuel efficiency standards for vehicles… carbon taxes… and timetables for reducing greenhouse gases.

But his favorite policy idea is cap and trade. And I’ll show you in just a moment why.

Cap and trade means Washington will place a “cap” on the amount of carbon dioxide emissions that companies can create.

If a company goes over its limit, it can buy spare carbon credits from a different company that emits less carbon… or pay a hefty fine. 

The problem is cap and trade is going to cost you wads of money.

A research study by the Heritage Foundation found the new bill will reduce U.S. GDP in 2020 by $161 billion dollars.

That’s $1,870 for every family of four in America!

Cap and trade will also increase your electricity bills by up to 90%.

It could even cost you your job!

“The government is going to be directly responsible for the destruction of millions of jobs if the bill passed by the House becomes law – anywhere from a net loss of 0.5% of total jobs over the first 10 years, according to the liberal Brookings Institution, to 3 million by the year 2030, according to the industry-backed Coalition for Affordable American Energy.”

- U.S. News and World Report, July 6 2009

But it’s going to make Al Gore very wealthy indeed. It could turn him into the world’s first green energy billionaire.

And I’ll show you how it can make you very wealthy, too.

Al Gore’s Trillion-Dollar Monopoly

So why has Al been such a huge promoter of cap and trade?

It’s simple.

He owns 10% of the exchange that will handle every single carbon credit traded.

And this market is going to be big.

Bigger than the New York Mercantile Exchange. Maybe even bigger than the NASDAQ.

According to the New York Times, carbon "will be the world’s biggest commodity market, and it could become the world’s biggest market overall."

But this market barely even exists today!

Last year alone, the carbon market was only $118 billion.

A report by New Energy Finance puts the value of the carbon market at $1 trillion a year by 2020.

The owner of the exchange I’m talking about even said “It is a pretty bullish market”

All the banking big boys want to get their greedy little fingers in this pie.

See, until a few years ago exchanges were private companies. But that’s all changed. Now they’re publically traded cash cows that get a small chuck of money each time a trade is made.

And early investors in these exchanges can cash in big.

Take a look at the following chart of the CME group, the largest futures and options exchange in the world. Early investors could have bought shares for $41 dollars back in 2003.

Over the next five years, the exchange surged in price, giving investors 15 times their money.

I bet you wish you could have gotten in on these profits back then…

Who wouldn’t?

A $5,000 investment turned into $75,000, just like that.

Al Gore’s  “Money Machine” provides another equally profitable opportunity to grow your portfolio..

Why?

Because right now membership of this new exchange is still voluntary. And today, only 470 companies currently participate.

But once cap and trade is signed into law this October, every single company in the United States is forced to join.

That means 470 companies will balloon to 10,000 overnight…

It’s the law.

Since 2005, Al’s exchange has seen 2,825% growth in trading fees.

But that’s just the beginning. This number will jump thousands of percent more once the law is signed.

And Al Gore will be laughing all the way to the bank as he sees his 10% stake soar 500%… 1,000%… maybe much more….

You see, this one exchange has cornered 99% of the market. Competition is virtually non-existent. And once the law is signed, it will have a government sponsored monopoly.

Incredibly, hardly anyone in America has even heard of this company…

In fact, it’s barely been covered by anyone in the mainstream media.

But that’s all about to change.

And when it does it could make you very rich.

You see, the cap and trade bill passed the House on July 24.

Now it’s up to the Senate to sign off on this bill this October, then month…

Once the Senate signs off on this bill, $100 billion will start flowing and share prices will rise. If you do what I tell you in your FREE copy of

 “The Al Gore Green Energy Billionaire Report” then you’ll stand to make the types of gains most people only wished they could make.

In it I’ll tell you exactly how to cash-in when cap and trade passes, plus two other exciting companies about to get soaked in taxpayer backed stimulus dollars.

More on this in just a moment…

First, I want to tell you about something called the Maunder Minimum.  – It proves that Carbon emissions have little to do with Global Warming

The Global Warming Lie

You see, for all the hype, “Global warming” is hardly proven science.

Yes, the climate is changing. But the climate is always changing. It is a lot warmer now than it was 12,000 years ago, during the last Ice Age.

But it is also much colder now than it was 1,000 years ago.

When the Vikings first went to Greenland, it actually was green. Believe it or not, they grew grain there. As late as 1300, 3,000 farmers lived on 300 farms there. But then the climate got colder, and eventually it became too cold for crops, and the Nordic farming settlements were starved out. By the end of the 14th century the remaining farmers were all dwarfs due to malnutrition.

Of course, humans have warmed the earth since the caveman first invented fire. But global temperatures are still mainly influenced by variations in the energy output of the sun.

That’s where the Maunder Minimum comes in.

By the second quarter of the 17tth century astronomers were carefully observing the heavens. Among the key measurements they recorded were daily records of sun spots - the visible manifestations of magnetic storms on the sun. It turns out that sunspot activity is closely correlated with the sun’s energy output.

When there are lots of sunspots, temperatures on earth rise. When sunspots recede, the sun’s energy output declines and the earth gets colder.

In the 17th century, the sun plunged into a 70-year period of almost total spotlessness known as the Maunder Minimum. The sunspot drought began in 1645 and lasted until 1715. During a 30-year period within the Maunder Minimum, astronomers observed only about 50 sunspots, as opposed to a more typical 40,000–50,000 spots in modern times.

During that time, also known as the “Little Ice Age,” temperatures plunged. It was the coldest period in the last millennium. Some of the best astronomers in history (for example, Haley, who discovered the famous comet) monitored the sun and failed to count more than a few dozen sunspots per year, compared to the usual thousands.

In Europe, the summer of 1693 was so cold that millions of people in France and surrounding countries died of starvation.

In Norway, total grain harvests in the late 17th century were only about 2/3rds of what they had been about the year 1300. The failure of Norwegian crops from 1680 into the 18th century was a prime reason for the great growth of merchant shipping there. Coastal farmers whose crops failed turned to selling their timber and to constructing ships in order to transport the timber themselves.

If you’ve ever been on a cruise, chances are you sailed with a Norwegian crew who were sent to sea by the Maunder Minimum.

Meanwhile, Al Gore’s late 20th century crisis of “global warming” just so happened to coincide with an historic high in sunspot activity.

But not to worry. It’s all over now. Sunspot activity has plunged. And Global warming seems to have vanished, except as a political cause.  The period from January 2007-through September, 2009, showed the sharpest drop in worldwide temperatures in recorded history.

This was underscored by this headline, from a story released by the Associate Press on July 21:

"Gore’s Hometown Nashville Breaks 1877 Cold Temp Record" 

Temperatures are now back to what they were in the 1980’s, the Arctic icepack grew 30% in 2008, and the Antarctic icepack continued to increase, as it has steadily done for the last several decades.  In fact, the average global temperature has been stable or declining since 1998.

The moral of the story is that there is no need for you to fret about warming in your future. Even if you live on the coast, you won’t have to swim to work.

But you may need to pack in some thicker blankets.

‘Global warming” is a hoax. But the money you could make out of this scam is real.

But you will need that extra fortune to help pay off the carbon taxes Obama promises to put on us all.

In particular, the carbon tax will make the countries that adopt it poorer.

But that hasn’t deterred Al Gore and his pals, who have profited spectacularly from his theories about carbon and even created legislation to guarantee their returns.

See, I’m a firm believer in the Maunder Minimum.  And I am also a believer in a shrewd observation made by the poet, Goethe two centuries ago. He said;

"Most men only care for science so far as they get a living by it, but they will worship error when it affords them a subsistence."

If you didn’t know about the Maunder Minimum, you are probably in the same boat as most people.

Not knowing about it is going to cost everyone a bloody fortune.

And while you lick your wounds, Al Gore and his Wall Street buddies will be getting rich hyping the threat of "global warming."

And they’ll get rich out of new laws like cap and trade that will make you poorer…  unless you have special knowledge to profit from their scams.

Let Me Introduce Myself

My name is James Dale Davidson.

And just like you I hate high taxes and overreaching government.

I hate taxes so much that I founded the National Tax Payers Union over 35 years ago. It’s the largest and oldest grassroots taxpayer organization in the nation, with 362,000 members.

I now serve as the Chairman Emeritus in the ongoing fight to keep taxes under control.

When I heard about the new cap and trade proposal, my ears immediately perked up. I didn’t know what exactly was going on. But it stunk of new taxes.

As I investigated the legislation, the connection with Al Gore became blindly clear. And so did the profit opportunities I’m going to share with you today.  

First, let me tell you a little bit about myself…

The mainstream media used to call me the “Prince of Doom” because of my unfashionable view on the risks facing the U.S. economy. I spoke out against runaway debt and the danger of credit collapse 20 years ago.

But I am not your typical doom and gloomer. I’m a crisis investor and an activist against big government.

Most important, I’m an active investor who puts his money where his mouth is.

I’ve helped investors protect their wealth and profit by accurately forecasting some of the most earth-shattering financial events of our time, such as:

• The fall of Communism and the death of the Soviet Union
• The October 1987 stock market crash
• The subprime mortgage crisis
• The rise of Islamic terrorism (and an attack on the World Trade Center)
• The Japanese crash at the end of the 1980s
• The collapse of the U.S. housing market
• The current government bailouts and the nationalization of U.S. banks

These historic shifts seemed impossible when I first warned investors about them. (Newsweek even described my forecasts as "an unthinking attack on reason.") But subsequent events have proven me right.

And beyond just predicting these events, I gave specific recommendations of how to take advantage of them.

But that’s old history. In the past few months I’ve produced equally impressive returns:

• 41.41% on Petrobras
• 38% on the Financial Bull ETF
• 25% on the MarketVectors Gold Miners ETF110% on Wittswatersrand Gold41.51% on Brazilian Government Bonds

See, I came out of an eight-year retirement in the fall of 2008 to warn investors of an imminent crash.

I was dead right.

And I’ve since helped investors profit safely from the bear market rally that has followed.

I publish my latest crisis investing ideas as part of a new financial alert service called Crisis Strategy Alert.

It’s dedicated to capitalizing on unusual opportunities to profit, typically from crisis situations.

Most times you can expect to receive options recommendations. I’ve found that options give you just the right amount of leverage and safety to fully take advantage of today’s market.

But don’t be surprised to see the occasional currency recommendation too…. Or leveraged ETF.

The reality is I try and give you a few avenues to take advantage of any given situation. I’ll lay out all the choices and tell you the advantages and disadvantages of each.

The choice of which avenue to take is yours. Because only you know your true financial situation… and the type of risks and rewards you’re ultimately looking for.

My next door neighbor is the type of guy who loves getting into exotic bonds and currencies.

I asked him why he loved it so much and he said “It’s the thrill of making money from something different” he told me “It makes great dinner party conversation”

  A few other people I know simply want to buy stocks. They tell me “we’re not interested in taking on much risk. We don’t like thinking about the market during the days. But boy would we be upset if we missed a good opportunity to make money”

It doesn’t matter if you’re like my next door neighbor or my other friends, I’ll give you safe and simple ways to make money on any situation.

This Al Gore heist I’ve been telling you about today, it’s something that not many people are even aware of.

Certainly not anyone I know.

Everyone has their doubts and suspicions about Al Gore’s intentions.

But I want to be the first person to lay it out in the open for you to take advantage of. I’ve already showed you how Al Gore’s profiting from this “Global Warming” scam. Now I’m going to show you how to…

Create a Legacy of Wealth from
the Green Bubble Super Bust

The whole “green sector” is a disaster waiting to happen… but in the meantime there are spectacular profits to be had.

See the green sector is a fad/scam that won’t last more than 6-10 years.

That’s because it’s based on sham science and sham business. And because the hype gets ahead of the viability of the projects and real demand in the marketplace.

And when it pops it’s going to blow up big time – bigger than the dot-com bust.

Oilman T. Boone Pickens has already learned this the hard way.

Poor old T. Boone became enamored with green power. He spent millions on advertising his “Pickens Plan”  in efforts to be the king of green energy.

But falling natural gas prices and technical problems recently forced him to cancel his plans to build the world’s largest wind farm in the Texas panhandle.

Now he’s got to figure out what to do with the 687 wind turbines he ordered last year for the project. Ouch!

Nevertheless, just like during the tech bubble years, green investments like Al Gore’s “Money Machine”  will balloon in value.

And that means they could create a legacy of wealth for investors who get in (and out) at the right time.

I’ll give you all the details about how to do that in my special report “The Al Gore Green Energy Billionaire Report.”

I’ll also show you how to play the other side of the trade. I’ll show you how to cash in on the run-up of the green bubble and how to profit on the way down.

Inevitably, when the green bubble bursts, delusional investors who believe the hype will get wiped out… and perhaps rightly so.

But if you play the bust wisely you could come away from it 10 times richer.

Let me explain…

First, we’re going to get a piece of Al Gore’s “Money Machine.”

Then we’re going to sell for maximum gains. I reckon we’ll be in this trade for about 8-12 months. No longer.

Next, based on the fact that it’s more likely that the planet is cooling instead of warming we are going to go long heating oil, natural gas wool, and other products destined to become more dear as temperatures fall.

We’ll roll our profits from Al Gore’s “Money Machine” into these old trusty resources that people actually use to stay warm… resources that will soar in price as the green sector plunges.

That’s how we’ll make a fortune from the green bubble.

I hope you’ll join me.

You can get started now with your FREE report, “The Al Gore Green Energy Billionaire Report.” This will show you exactly how to cash in on the green energy hype.

Then as conditions develop, I’ll give you detailed instructions on playing the run-up in natural resources after the green bubble bursts…

You will also get immediate access to my crisis investment research service, Crisis Strategy Alert.

This will allow you to capitalize on crisis opportunities, just like the one we’re seeing develop in the green energy sector.

Each weekly Crisis Strategy Alert bulletin gives you specific ways to profit from crisis situations like Obama’s new tax grabs and other idiotic government policies.

It is one of the only private investment research services in the world to deal directly with the current economic crisis and its consequences.

Week after week, Crisis Strategy Alert is packed with recommendations on the profiting from unique situations like Al Gore’s “Money Machine.”

And I can guarantee you won’t hear about these opportunities anywhere else… Not in your newspaper…  Not on the internet… Not on television…

Not anywhere.

More than that, when you become a Crisis Strategy Alert subscriber you’ll also get my monthly advisory newsletter Strategic Investment at no extra cost.

Strategic Investment will give you a big picture overview on what’s really happening in global markets and where the best opportunities are.

Strategic Investment is a separate service that sells for $99 a year. But you’ll receive it FREE with your subscription to Crisis Strategy Alert.

With both Crisis Strategy Alert and Strategic Investment you will get the inside track on profiting from anomalies in the markets that most investors don’t have a clue about.

That’s because even the most influential financial advisors know nothing about this information.

They advise you to buy coins, for example, because they sell coins! Or they urge you to buy stocks because a line of a graph seems to be heading up. Or they get scared by Wall Street gossip and tell you to sell you stocks.

But Crisis Strategy Alert has no products to push or bones to pick.

We are interested in only two things:

1. Getting to the best knowledge on the crisis before anyone else.
2. Turning it to our profit – and yours.

It’s true that many people do read Crisis Strategy Alert just to know what’s going on in the world.

But it is designed for serious investors. And it’s designed to make money.

For Serious Investors

Crisis Strategy Alert is a weekly electronic advisory service that is chock full of money-making knowledge specifically geared to the current economic collapse.

Not just a rehash of what you read in the Wall Street Journal, but new knowledge from an experienced analytical team of crisis investors.

Crisis Strategy Alert is clear and understandable. It’s just like having a conversation with a good friend (a very well informed friend).

It also doesn’t take too much time. The information you will be presented with will contain all the information you need to execute money making trades.

You certainly won’t have to watch the markets every waking hour to benefit.

Here’s My Full Offer

I’d like to give your direct access to the special report I’ve discussed with you, “The Al Gore Green Energy Billionaire Report.”

Inside, you’ll find all the details you need how to invest like Al Gore and cash in like a politician and a green energy insider.

With it you will also get a full 12-month membership to Crisis Strategy Alert for just $249. Or a quarterly membership for just $79.

Of course, this offer is fully guaranteed.

If you decide to cancel before your fourth monthly issue, let us know and we’ll return the entire amount of your introductory membership, promptly.

No need to return the report. It’s yours to keep even if you decide to cancel.

But please don’t delay. Majority Leader Senator Harry Reid set a September 28, 2009 deadline for the bill… It could pass at virtually anytime after that. Don’t delay or you’ll miss the boat on this rare opportunity.

Remember, if the special report and your first issue of Crisis Strategy Alert don’t give you’re a taste for more… just cancel. It won’t cost you a cent.

But if you fail to take a look at this information and invest like Al Gore, you are quite simply costing yourself a lot of money.

Sincerely,

James Dale Davidson

P.S. You must act immediately to participate in Al Gore’s Money Machine and my green bubble bust play. There will be a run-up before the cap-and-trade bill passes into law. So it’s critically important that you position yourself to profit before then or risk missing out.

Simply click on the link below to sign up for Crisis Strategy Alert and gain instant access to the FREE “Al Gore Green Energy Billionaire Report.” You have nothing to lose and everything to gain.

http://www.profitablenews.com/?p=855 The ‘Obama-Care’
Profit Play of the Decade

Think whatever you want about socialized medicine. Because Obama and the Congressional Democrats have enough votes to push some sort of bill through the Congress this fall.

And one part the healthcare industry is positioned to soar when ‘Obama-Care’ passes…

“Generic Drug Manufactures Makers Hail Obama Budget Proposal” reads a recent Wall Street Journal article.

And for good reason. 

Generic drugs are the fastest growing segment of the pharmaceutical industry. And Obama’s bid to end “evergreening,” in which brand name drug makers remake existing products to extend their patent life will only make this industry surge faster.

"This is enormous," say Kathleen Jaeger, chief executive of the Generic Pharmaceutical Association, a trade group. "If [Obama-Care] passes, it will mean huge savings for payers and insurance companies, patients, and state and local governments"

Bringing down the cost of drugs is a main tenet of ‘Obama-Care.’ And making generic drugs widely available will do just that.

So how can you play this trend?

By putting your money into Dr. Reddy’s Laboratory (NYSE: RDY).

Dr. Reddy is a pharmaceutical company out of India. What makes RDY so unique is its heavy presence in generic drugs.

Generics make up 70% of RDY’s revenue stream.

Thanks to Sumatriptan, a new generic drug used to treat migraine headaches, RDY saw revenues increase 27% last quarter alone. And that 27% growth was across the globe. RDY’s growth market – North America – saw revenue growth of 42%. And that growth was driven by high volumes of all generics, not just Sumatriptan.

Total revenues in the last quarter came in at $381 million, up 21%. But earnings came in even better, increasing to $0.30 per diluted share, up 120% from last year.

It’s clear this company is growing quickly. What helps this growth is the size of the company. With a market cap of $2.77 billion RDY has room to grow to the size of its competitors like Mylan ($4.5 bn marketcap).

By that metric alone, RDY shares have another 62% to surge before they’re at fair value.

And every indication points to them getting there very quickly.

Major Growth in the Indian
Pharmaceutical Market

The Indian pharmaceutical market is the 13th largest in the world, with sales of $7.7bn in 2008.

But India isn’t a place of advanced healthcare. Today only 10% of its people have health insurance.

Most people don’t go to the doctor when they get sick. And they don’t take medicine because it’s simply too expensive. And those that do simply pay for it out of pocket. Over 75% of doctors costs are paid by out of pocket consumers.

But this is something that’s changing as the people of India become more wealthy. Among the urban, middle-class and upper-class Indians healthcare coverage is 50%.

And thanks to the entrance of some important new private players, health insurance is expected to rise rapidly in the years ahead.

This will lead to a more than doubling of the India retail pharmaceutical market in the next six years.  

RDY is already taking advantage of its home market.

Revenues in India increased 9% to $50 million.

In the past, RDY had some supply-chain problems in India. Over the past year they’ve been hard at work and we can expect to see stronger growth leading into next year.

An Expanding Pipeline of Cheap Generics

In just the last quarter RDY launched 24 new generics and filed for another 22 new generic product registrations.

Some of these drugs are expected to bring windfalls to RDY. From a recent article in MarketWatch…

A recent Citigroup report listed omeprazole, a drug used to treat acidity-linked inflammation and ulcers, and fondaparinux, a medicine that prevents blood clots, as two key upcoming generic drug opportunities for Dr. Reddy's.

The brokerage estimates Dr. Reddy's could earn annual sales of around $25 million to $30 million from the former, a generic version of AstraZeneca's Prilosec, available over-the-counter.

It also said that fondaparinux, a generic version of GlaxoSmithKline's Arixtra, could net the Indian company up to $60 million in its first full year of launch.

These two drugs alone could give RDY a $90 million boost this year. But that’s only 2 of RDY’s upcoming 46 drugs. And that’s not even factoring in a huge deal RDY recently made with Glaxo Smith Kline.

From Yahoo Finance…

In June, it (Glaxo Smith Kline) entered into a partnership deal with Dr. Reddy's Laboratories (NYSE: RDY) involving a pipeline of more than 100 branded pharmaceuticals (some of these are still in developmental stage) covering wide segments such as cardiovascular, diabetes, oncology, gastroenterology as well as pain management.

The products would be manufactured by RDY and would be licensed and supplied to GSK in various emerging markets such as Africa, the Middle East, Latin America and Asia Pacific excluding India.

That’s 100 new drugs for RDY to profit from. This is exactly what you need to see in order to guarantee that RDY will have another banner year in earnings growth.

Forward P/E (fye 31-Mar-11) :	12.98
PEG Ratio (5 yr expected):	0.71
Price/Sales (ttm):	1.91
Price/Book (mrq):	3.27
Enterprise Value/Revenue (ttm):	2.1
Enterprise Value/EBITDA (ttm):	8.769
Operating Margin (ttm):	18.60%
Qtrly Revenue Growth (yoy):	18.30%
Qtrly Earnings Growth (yoy):	115.00%

Yet despite the 120% growth it’s seen over the past 12 months, this company is not priced expensively.

Yet despite the 120% growth it’s seen over the past 12 months, this company is not priced expensively.

Its Price to Earnings ratio is only 12.98. Anything under 15 is good.

The Price to Earnings Growth ratio (a look into how the market values future earnings) is 0.71. Anything under 1 is great.

And lastly, operating margins are a healthy 18.60%. That means the company makes 18.6 cents for every dollar it brings in (after paying for the electricity bills).

Slimming Down and Getting Stronger

For the past few years, one of RDY’s primary drivers of growth was acquisition. But today, their strategy has changed.

In a recent interview, Satish Reddy, the COO said "It was all about the growth story in the past. What we're now saying is that we want consistent growth on revenue and profits,"

The result is that the company has gotten out of markets that contribute less than 1% to RDY’s revenue. This helps them streamline and focus on the markets they are already in. Now, RDY will be less distracted.

The result is that in the coming years we should see the profitability of the markets RDY focuses on to increase substantially.

One of those markets is the US market. In the last quarter they saw a 42% increase in revenue from the North American market alone.

And this is BEFORE the Obama healthcare plan passes.

Once this plan is approved later this year, tens of millions of more Americans will be covered by health insurance. And you can be sure they’ll be buying generic drugs to cure their ills.

This means RDY should see a huge increase in generic uptake later this year and early next year.

Regardless of your opinion on President Obama’s healthcare proposition, what we do know is that some form of comprehensive healthcare reform will pass the legislature later this year.

If you’re positioned in a company like Dr. Reddy’s Laboratories (NYSE:RDY), then you’re poised to make a fortune in the years ahead.

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