Your Free Gift From Insider Monkey

Today, I am going to share the name of the one of the cheapest and safest stocks in the market. This isn’t a stock teaser. You can find the name of this stock below. It’s your gift from Insider Monkey and it is totally free. The stock market will always deliver positive returns over very long periods of time for three simple reasons: inflation, population increase, and technological improvements. Fifty years ago a hamburger costed an average of $0.18. Today a similar hamburger costs $4. Assuming that we have the same number of people in the world and using the same technologies of the 70s, your $1 in 1970 invested in a burger company should be worth more than $25 today. World population grows by around 1% per year. So, if you own a burger company, its unit sales will be increasing by 1% annually, assuming that each person consumes the same amount of burgers per year. That should double your $25 to $50 due to compound growth. We also experience technological improvements year after year. This increases the productivity of each worker by an average of 1-2% per year as well. Assuming it is at the low end of this range, your $50 should double to $100 over a 50 year period because of technological improvements. Obviously this growth doesn't happen in a straight line when you are invested in the stock market. Investor euphoria may lift stock prices significantly above fair values. Investor pessimism may also depress stock prices significantly below fair values. Today, I am going to share the name of a stock that traded significantly below the cash in its bank account. Imagine a company that is so conservative that it doesn’t have any debt and $113 million in cash in its bank account. Imagine a company that is profitable and generated $22 million in adjusted cash flow in 2019. Imagine a company that also owned crude oil storage facilities and had 425 thousand barrels of oil that is paid for. Imagine a company that also had nearly 700 thousand barrels of oil storage capacity at a time when oil producers are willing to PAY you to take their oil for $37 a barrel. Imagine a company that is so flush with cash that it spent more than $35 million buying brand new trucks and trailers with CASH in 2019. Imagine a company that also owns more than 500 tractors and nearly 1000 trailers that are all paid for and can be sold for $115 million. Imagine that this company also owns $40 million worth field equipment, buildings, and land. Basically, this company has $113 million in cash and another $160 million in other less liquid assets. How much would you pay to own this company? At one point in March you could have bought all of these for $64 million, or less than $16 per share. What do you do when the opportunity bangs on the door? You keep your mouth shut, put in buy orders, and hope that nobody else recognizes the opportunity. I never underestimate human stupidity. I have seen people selling a dollar for $0.50 many times. But, I have rarely seen a dollar selling for a quarter. The stock I am talking about is Adams Energy (AE). You can’t buy this stock for $50 million less than the cash on its balance sheet anymore. Today, you can buy Adams Energy for $113 million, the same amount as the cash on its balance sheet. If you borrow $113 million, you can buy 100% of this company in the stock market and then use the company’s $113 cash balance to pay off your loan. Basically, you can own Adams Energy for free. There is one problem though. Forty eight percent of Adams Energy’s shares are owned by a billionaire family that also owns the Tennessee Titans football team among other assets and they aren’t selling. Quant billionaire [Jim Simons’ hedge fund]( also owned a 7.5% stake in this company at the end of September and he quietly bought more shares during Q4. Renaissance’s Medallion Fund is the most successful hedge fund ever, delivering annualized gains of 66% before fees and expenses. Smart investors aren’t selling for another reason. This stock pays an annual dividend of $0.96 for a dividend yield of 3.4%. I think the market is completely ignoring this company’s $113 million cash when valuing this stock. That’s why I believe the upside is at least 100%. By the way, my name is Inan Dogan. I have a PhD in financial economics. I am Insider Monkey's co-founder and research director. I develop quantitative investment strategies that identify the best stock picks of hedge funds and corporate insiders. I also share my personal stock picks in Insider Monkey’s monthly activist newsletter. My stock picks returned 72% in 3 years and outperformed the S&P 500 Index by 44 percentage points. I predicted the coronavirus recession in February and warned you in [this article](. In early March when the collapse in the stock market was so obvious, I warned you again in [this article](. My stock picks beat the market before the coronavirus crash, during the coronavirus crash, and after the coronavirus crash. Adams Energy is one of the safest and cheapest stocks in the market right now. There aren’t a lot of dumb investors selling the stock though. You won’t be able to buy as much as you want at its current price. I identified another stock that is trading for half price and you can buy as many shares as you want without causing a large increase in its price. I shared this idea in the latest issue of our monthly newsletter. Right now we have a [promotion going on](. You can subscribe to our monthly newsletter for only $311/year, a discount of 30%. You can also subscribe to both of our newsletters for $411, a discount of 25%. This is a limited time offer that is available to the first 50 subscribers. [Sign up NOW]( and receive our best stock ideas before everyone else. Our stock picks returned 72% in 3 years, survived the coronavirus crash and outperformed the S&P 500 Index by 44 percentage points. Adams Resources & Energy (AE) stock idea is Insider Monkey’s free gift to you. A position in this stock is better than a savings account. It pays 3.4% annually while you wait for the stock price to go up 50-100% within a year or two. Best Wishes Inan Dogan, PhD Research Director Insider Monkey Manage your InsiderMonkey account You received this email because you signed for an account on Insider Monkey. This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment. We periodically share free investment reports in our subscribers area. To make sure you received the most recent reports please check My Subscriptions Page in your account here: [( If you would rather not receive free reports, email alerts, or special discounts from Insider Monkey, you can let us know by visiting [( or [Unsubscribe here](. We will honor your request within 7-10 days. All text and design is copyright ©2020 Insider Monkey, 24 Westervelt Avenue, Tenafly, NJ, 07670