You Can Profit From the Government's 'Corrupt' Banking Program

Stansberry Investor Hour

Stansberry Research

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4.4 • 677 Ratings

🗓️ 28 May 2024

⏱️ 83 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this week's Stansberry Investor Hour, Dan and Corey are joined by Chris DeMuth Jr. Chris is a co-founder and managing partner of hedge fund Rangeley Capital. He invests in
mispriced securities with limited downside and corporate events that unlock value for shareholders. Chris kicks things off by explaining what event-driven investing is, how he uses it, and how
the concept of "counterparty selection" is involved. He also breaks down what demutualization and remutualization are and how there are numerous opportunities in the banking sector today to deploy these strategies. According to Chris, many small-cap
community banks out there are attractive in terms of valuation versus large caps. (3:11)

Next, Chris describes the U.S. Treasury Department's "inept, corrupt, and profligate" Emergency Capital Investment Program ("ECIP"). He gives two in-depth examples of ECIP bank stocks that were trading for far less than they were worth – Bay Community Bancorp and Ponce Financial. And he discusses why investors who got in early enough will profit from them greatly. (16:03)

Lastly, Chris names three stocks that he's excited about right now and details the specifics of each one. The first is a tax-efficient real estate and financial-services conglomerate trading at a discount to its asset value. The second is a Russian-owned mining company operating in Venezuela that should soon benefit from litigation against the Venezuelan government. And the final one is a hospice provider with a lot of potential for a private-equity shake-up and then subsequent acquisition by a larger health care company. Plus, you won't want to miss Chris' answer to the final question, where he explains how you can gain an edge as an investor simply by researching topics you're genuinely interested in. (29:44)

Dan and Corey close the show by discussing Nvidia's recent blowout earnings, including its 262% revenue gain. Since the company provides the "picks and shovels" of AI, it's benefiting
massively from the boom in this space. This leads Dan and Corey to compare AI stocks with Internet stocks during the dot-com bubble, speculate on what could happen next, and
explore the disconnect between the markets and the economy. (57:56)

Transcript

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0:00.0	Hello and welcome to the Stansberry Investor Hour. I'm Dan Ferris. I'm the editor of Extreme Value and the Ferris Report, both published by Stansberry Research.
0:08.9	And I'm Corey McLaughlin, editor of the Stansberry Daily Digest. Today we interview Chris DeMuth of Rangely Capital.
0:15.8	And today, Corey and I will talk about Nvidia earnings and the wider economy.
0:20.9	And remember, if you want to tell us what's on your mind, email us at Feedback at InvestorHour.com.
0:26.3	That and more right now on the Stansberry Investor Hour.
0:33.7	Really looking forward to today's guest, Chris DeMuth.
0:44.4	Man, this guy, he's so smart.
0:48.1	He's got an idea a minute.
0:49.4	He's so passionate and so smart.
0:51.7	And we've never had him on the show.
0:53.6	I've never talked to him on the show before.
0:56.0	He could have been on in the old days when Porter was around. But I've never talked to him.
1:01.3	And I just know that he's a really smart, passionate guy. And he practices a form of investing that I used to do some of it in our extreme value newsletter.
1:10.1	Like in the very beginning days of extreme value, we did similar things to this.
1:17.0	And some of it worked out really well.
1:19.3	And, you know, Chris does it for living.
1:21.1	And he digs around in small cap stocks and finds the most amazing things.
1:26.4	It's really, really cool. Yeah, he's the founder of Rangely Capital,
1:31.6	and I'm interested in what he means by event-driven investing. So we will figure that out as well,
1:40.5	I'm sure, and go from there. Yeah, I sort of know what that means, but I'm going to leave it up to him because he's actually doing it for a living and doing it well.
1:51.0	So let's just talk with him, man.
1:53.4	Let's talk with Chris DeMuth, founder of Rangely Capital, event-driven investing firm.
	...

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