further to that..An updated article on something I posted...

further to that..

An updated article on something I posted previously..


Dear Daily Reckoning Reader,

Aussie stocks are pricing in a global recession. That means they're falling.

But if you're a long-term investor, that's good. It gives you another chance to buy stocks that can rebound quickly in the big one-day rallies that come with choppy trading. But which stocks should you be looking for?

As our resident resources expert Al Robinson explains, there is a certain type of stock that could gift you double-digit returns, even as the wider market falls.

Read on for full details...

Good Investing,


Suzanne Barry
Director
The Daily Reckoning Australia


---------------------------------
Important news for investors looking to capitalise on market crisis...

'Pebble Stocks' that Could Each
Return 30% to 118% Gains
in the Next 2 Months

Amidst global market chaos, a new class of Aussie stocks could hand investors explosive double-digit profits, literally overnight...

Discover how 'Pebble Stock' gains like 63% in one week, 118% in 3 days and 29% in 24 hours could be pouring into your portfolio... even while many investors flee to cash!


Dear Reader,

You're witnessing market history in the making right now.

And boy, it's ugly watching!

The massive multi-government bail-out, it appears, has failed to stop the mass selling. It looks like we're hurtling towards a deep global recession.

Many people think you'd be crazy to buy stocks now.

For the most part, they're right.

It could take a lot longer before this mess is cleaned up and it's business-as-usual for stock investors.

But here's the thing...

There is ONE SPECIAL TYPE OF AUSTRALIAN STOCK we believe could soar in the weeks ahead - even as most of the 'smart money' sits in cash and bonds.

Over the next 7 minutes, I'm going to introduce you to a special breed of Australian stock that's perfectly poised to thrive in the next two months.

And the massive, super-quick share price-hikes you can expect are not just happening despite the meltdown in the financial markets... they're happening because of it.

I call them 'Pebble Stocks', for reasons that will be clear shortly.

In the warzone that has been the financial markets of late, they have gifted investors gains of 30% to 118% in weeks... sometimes hours.

As things go from bad to worse for the global economy, even more 'Pebble Stock' gains will be made by savvy investors.

You can learn more about one 'Pebble Stock' pick we believe has to potential to explode 30% minimum in the weeks to come - plus two more that are on our radar in just a second.

First, I'll quickly give you the background...

China-Driven 'Pebble-Stock Payouts'

Have you heard about Abra Mining? Or Golden West Resources? How about Herald Resources?

Most people haven't.

These are all tiny Aussie miners. And they're examples of the new breed we call 'Pebble Stocks'.

Why?

All three have been targeted by Chinese companies in the last year.

And here's the 'money-point'...

On average, each of the three 'Pebbles' above gained 63% in the week following their offers.

Abra was the most exciting. It exploded for 118% in three days. The others were no less impressive. Golden West slammed on 29% literally overnight.

Not bad returns in the midst of a downturn, right?

Well get ready, because the next two months could see an avalanche of pebble winners just like these.

Let me explain why...

The key factor setting these extraordinary pebble profits in motion is almost always a foreign takeover.

You probably already know Asian companies need Australia's raw materials. Rocks and energy, basically.

But the thing is these cashed-up giants can't just buy the big miners like BHP or Rio Tinto. The Foreign Investment Review Board (FIRB) wouldn't let them.

So instead of going after the 'boulders' of the resource industry, China is collecting lots and lots of 'pebbles'.

They're acquiring small, quality resource juniors that are trading at much lower prices than this time last year.

By collecting lots of pebbles China gets the same amount of rock in the end. It's easier work though. The pebbles take less lifting than boulders - there's less capital involved. No regulators complain either. So long as China doesn't try to snatch anything too substantial.

And there has NEVER been a better time for 'pebble-snatching' than right now...

Plunging Aussie Dollar Gives Green
Light to 'Pebble-Snatchers'

The big story is the 'stock-holocaust' taking place in almost every index in the world.

But markets have subplots. If you're shrewd enough to read them – when everyone else is looking the other way – you can make a lot of money.

The subplot of the 'Pebble Stock' story is the plunging Aussie dollar.

The Australian dollar recently plunged more than 14% in a week, hitting a 5-year low. It's tumbled 30% from its high.

Here's the thing...

To any foreign invader, the formerly strong Australian dollar has been one of the biggest barriers.

It was the high price blocking buyers who wanted in on the Aussie resource boom.

Not anymore...

The Aussie dollar's recent plunge stands out in history as one of the most violent ever. "We have seen the largest daily drops in the Aussie since the currency was floated in the early 1980s," Josh Williamson, senior strategist at TD Securities in Sydney, told AFP.

In other words...

The greatest barrier to mining takeovers from non-Australian companies has fallen.

The real price of Australian companies has tumbled.

This may well unblock the dam of eager investors looking for a way into small, quality Australian resource assets.

And it's not just China looking for pebbles...

International diversified miners are also on the prowl.

Firms like Vale and Xstrata have accumulated massive reserves of uninvested cash. The last two years have been especially profitable in mining. The spare cash those firms have on hand has nearly doubled since 2006.

Just take a look at the chart below...

Big Mining Cash Reserves are Bullish for Pebble Stocks


Source: Latest Company Annual and Interim Reports

That's a lot of cash to spend.

The life-blood of a resource firm is its reserves of raw material in the ground.

To stay profitable, those bigger diggers have to keep growing reserves. Grabbing pebbles is an easy way to add cheap reserves to their portfolios.

And if YOU can own these 'Pebbles' before they do, it's a great way to boost YOUR OWN portfolio!

Sinosteel's bid for iron miner Midwest this year sent shares 31% higher.

And a stake from Russian steel-maker Evraz sent Cape Lambert Iron 29% higher in a few days.

You're witnessing the beginning of a long-term foreign invasion of capital into the Australian market.

And the current market turmoil means that pebble-hunters have more incentive than usual to go hunting right here in Australia.

I'll show you why... and introduce you to one stock I believe is the hottest target... in just a second.

If you prefer to keep a cool head while the wider market scares itself witless...

And if you're aware market upheaval often throws up the once-in-a-lifetime investment opportunities...

Then you'll want to add this stock to your portfolio immediately.

First, I Better Introduce Myself...

My name is Al Robinson.

I'm the Investment Director of the resource stock newsletter, Diggers and Drillers.

I'm a born-and-bred Aussie with a degree in commerce and specialisation in finance.

But my passion is 'rock kicking'. I spend every hour of every working day looking for the best resource shares in Australia.

The goal of Diggers & Drillers is simple: to give you the best available research in the world into smaller Aussie metals, mining, and energy shares.

If you already hold positions in energy and commodities, chances are you've seen them slide recently.

We still believe, due to basic supply and demand factors, that a recovery in these sectors is more than likely. I'm also convinced that many good resource companies - sitting on great projects - have had their stock prices unfairly dragged down by the financial crisis.

That means you can pick up some stellar bargains, if you're forward-thinking and picky.

Of course, finding the right stocks to back is hard.

That's why you have to do your homework. You have to read financial statements, call the company directors, and understand the mining business from top to bottom.

Frankly, though, most investors don't have time for this.

But I do. In fact, it's all I do. And it gives my readers a huge advantage when it comes to locating the next wave of winners in the Aussie resource market...

Uncovering Resource Plays the
'Mainstream' Overlooks

Sure, the big banks and brokers may have never heard of some of my share tips...

But if you're willing to do the hard work... and analyse stocks that are often too small to show up on the radar of big money managers... you can unveil some great gems... like the three 'Pebble Stock' beauties I'll tell you more about in a second.

The list of our current share tips includes oversold gold companies, fast-growing mining service companies, and a variety of other base metals and energy shares leveraged to higher resource prices.

I can't promise you we always get it right with our share tips and market calls.

But I can promise you this... you will not find a more thoroughly researched resource share-tipping publication in Australia.

Our work is not compromised by any conflicts of interest or other agendas. We publish our best investment ideas and we don't get paid a cent by any company to promote it.

And there's never been a better time for you to get hold of this kind of investment intelligence.

Why?

Australia - and the small resource stocks based here - play a key role in the third great Industrial Revolution in human history... the emergence of India and China's 2.3 billion people in the global market place.

The mining insiders know this. As Rio Tinto's Sam Walsh told an Australian newspaper: "The word 'boom' is a misnomer... I don't know what the right word is - maybe it's a paradigm shift. This growth is going to be around for awhile."

Boom or not - this is a trend worth being on the right side of.

Even more so now that, due to the 'credit crunch', genuine profit opportunities are so thin-on-the-ground elsewhere.

That's why I've dedicated myself to researching out the very best ways that Australian investors can profit from the gigantic resources boom right on your doorstep...

Stake Your Claim in the $70.5
BILLION "Big Australian Dig"

You'd be forgiven for thinking the crisis in central banking is the only investment story on the planet.

Sure, it's big news. The stock market as a whole hasn't been this shaky since the Great Depression.

But let's not forget that Australian resource companies are playing a central role in the great economic story of our time.

Coal from the vast opencut mines of Tawonga and Kogan Creek, to fuel the power plants of China and Japan... huge amounts of high-priced gold churning out of the new Telfer mine in Western Australia...

A $4.3 billion expansion of the Dampier-Bambury gas pipeline... a new $7 billion uranium and copper mine at Olympic Dam near Roxby that will create a hole "big enough to swallow Adelaide's city centre", according to The Australian.

You get the picture.

As you can see to the right, spending on these projects is going through the roof.

But you know what?

Australia is STILL not producing enough resources to meet demand!

That's why over $6.1 billion was spent on further minerals and energy exploration in 2007-2008 - in real terms, the highest level of spending on record.

And that's nothing.

The Australian Bureau of Agricultural and Resource Economics (ABARE) says that mining and energy companies plan to spend a further $32.3 billion this financial year... and $36.5 billion in 2008-2009!

In other words:

Despite the Turmoil, the Cash is Still
Flooding into Aussie Resources

A long overdue deflation of the credit bubble is taking place.

But, at the same time, you're also witnessing an absolutely unprecedented $70 billion TIDAL WAVE of cash flooding through the Australian minerals and energy sectors over the next 24 months.

This is a powerful, long-term trend. As far as making money on the global markets goes for the next twelve months, this is the best show in town.

And, as an Australian investor, YOU have front row seats!