New Year, New Faces and Great New Picks to Investigate

by Addison Wiggin

"An investment in knowledge always pays the best interest."

That pearl of wisdom comes from Benjamin Franklin - and it's another one of the guiding principles we live by here at Agora Financial. Of course, there are many ways to invest in knowledge. But we do it by giving you access to the finest minds in the newsletter business.

And as we kick off 2007 in earnest, I'd like to introduce two men who will help us reach our goal of making you a smarter, more knowledgable person.

The first is Craig Walters, who is filling the void left by James Boric at Small-Cap Strategy Report. But don't worry - Craig has the experience and drive to pick up exactly where James left off. In fact, with his extensive investment background, he's on track to take the Small-Cap Strategy Report portfolio to new heights.

Craig cut his teeth at Ferris, Baker Watts - the largest brokerage firm headquartered in Washington, D.C. - under the legendary Julius Westheimer. It was the perfect introduction to the ins and outs of the mainstream investment community… and gave him valuable insights into a wide range of sectors.

But Craig is a small-cap guy through and through. In fact, his time with Ferris, Baker Watts showed him what James has been preaching all along (no pun intended) - that investing in great companies early on in the growth cycle is the quickest and safest way to grow your wealth.

That's one of the reasons he stepped away from the brokerage business. Craig knew the greatest investors of all time have made their fortunes investing in these up-and-coming businesses. But his bosses had to steer clear of the small-cap market. After all, they catered to institutional investors… and small-cap companies are simply too illiquid to generate the kind of profits their clients want.

So we eagerly made a home for him here. And Small-Cap Strategy Report readers already have a reason to be happy…

The New Congress Could Be Good for Small Caps

As of Jan. 3, Craig's first recommendation is already up 20% - and looking to go higher. Craig is also following some trends that could prove profitable as we head into 2007.

For one thing, he's keeping a very close eye on the Democratic Congress. Not because he's partisan… he just knows that the winning political party doesn't waste a minute to start changing things. But Craig thinks the biggest small-cap winners will also be the biggest surprises.

For example, many people think defense spending will take a hit because the American public wants to bring our troops home from Iraq. But even if a complete withdrawal were possible, it would not be the end of American military spending. Not by a long shot! Regardless of your politics, you don't want America weak. And you certainly don't want us to give up our ability to assert our power all over the world.

But shortsighted investors have pushed some small-cap stocks Craig is looking at into bargain-basement territory. The latest find on his radar is a $933 million military vehicle manufacturer with one of the safest track records in Iraq. While casualties from exploding jeeps, trucks and Humvees are a regular feature on the evening news, not a single occupant of this company's vehicles has died since they were deployed in 2003.

That's why the company recently received a billion-dollar contract from the Pentagon - worth more than its revenue for the past eight years combined! Yet shares are still selling for under $20 a pop.

And now Craig is about to pull the trigger on another small defense manufacturer. This $1.5 billion company has seen its sales rise from $61 million to $598 million since 2002. Its earnings per share have also grown rapidly - with 100% growth expected when final 2006 numbers come out.

You can find the details in Small-Cap Strategy Report.

But Craig isn't our only new arrival. In the coming weeks, you can expect to hear a lot more about the latest analyst to join our staff - Christopher Hancock.

A Firsthand Look at Asian Growth

Christopher (or "Kif," as he's known around the office) knows that some of your best
business opportunities can be found overseas. In fact, when earned his MBA in Hong Kong… he got a firsthand look at some amazing things that could truly help you become wealthy.

Now, after extended trips to Europe and Asia over the past three years, he's ready to share his best discoveries with you in a brand-new service, The Offshore Speculator. In fact, by the time you read this, his first recommendation will already be in the hands of Agora Financial Reserve members.

The idea is based on something Kif saw with his own eyes - the massive building boom going on around the world. Asia is already home to seven of the world's 10 tallest skyscrapers. And the continent's love affair with tall buildings is just getting started. China alone plans to add 1,000 new skyscrapers to the Shanghai skyline by the end of the decade. And worldwide, as many 100,000 new skyscrapers could go up.

Obviously, that's going to push demand for building materials like cement, copper, steel and heavy machinery. In fact, one of Kif's sources says China's steel use could double by 2031 - totaling the amount the Western world consumes right now!

That's why he's so excited by one overlooked company on a path to become an integral part of Asia's building boom. Its total assets are still 3.54 times greater than total liabilities… and cash alone accounts for roughly 44% of all outstanding liabilities. Best of all, it's selling at a steep discount compared with its peers.

Also on deck are an undervalued cement company… and a promising Asian property development firm. Expect to hear more about them in the months to come!

In the meantime, we're glad to have both Kif and Craig on our team. With them, we think we've made two investments in knowledge that are destined to pay off for you!

Sincerely,

Addison Wiggin

P.S. Learn more about Craig at http://www.isecureonline.com/Reports/PNY/WPNYH101

Mumbo Jumbo

Grass is Cash

What's the largest cash crop in America - worth an estimated $35 billion annually? It's not corn. The popular vegetable only rakes in $23.3 billion a year. Soybeans bring in just $17.6 billion. And wheat can only manage $7.4 billion.

Nope… if you're a farmer looking for a big score, your best bet lies with dope - specifically, good old-fashioned marijuana.

At least that's the conclusion of Jon Gettman, the former head of the National Organization for the Reform of Marijuana Laws. Using government drug trafficking
statistics, he concluded that the United States produces more than 10,000 metric tons of weed annually. Then he applied national retail survey data to determine that it sells for an average price of $1,606 a pound. (For comparison, the producer price of corn is just six cents a pound!)

This just proves that a market can survive and thrive without the government putting its hands all over it. But if Gettman's numbers stand up to scrutiny, we wonder if the government will start looking for a way to get a cut. After all, every illegal sale is money that the government can't tax. It might not be too long before you could buy futures on cannabis…