My #1 profit play for 2012 …

It’s no secret that I’m calling for major market weakness going into the New Year.

Why?

Because I don’t believe any of the bailout hype coming out of Europe …

I don’t believe that U.S. politicians are ready to make the serious (and painful) decisions that are needed to right our own country’s troubled financial situation …

Plus, when I look at individual stocks, I see a whole bunch of companies that are currently selling for outrageous prices!

I call these companies the “momo” darlings because they’re all about momentum. In other words, they ride waves of investor enthusiasm to incredibly lofty heights, even though their underlying businesses are nothing but hot air.

And what happens when these balloons spring a leak? They come crashing back to earth in spectacular fashion!

Just look what happened to Netflix (NFLX) or Green Mountain Coffee Roasters (GMCR) earlier this year. Or what’s happening to Salesforce.com (CRM) or Sina (SINA) or Baidu (BIDU). Or how about what just happened to Oracle — one of the biggest-name momo darlings — last week.

The minute the company released a bad earnings report, its shares started tanking … and then tanking more … ending one single day down 11.7 percent! That was the single-biggest one-day decline for Oracle going all the way back to March 2002 … in the midst of the tech wreck!

I expect a ton of these kinds of meltdowns in the coming year. And that is precisely why my number one profit idea for 2012 is a special play on the demise of another momo darling. I think it could produce gains as high as 228 percent!

I’m planning on giving our VIP members very specific instructions on this play at our special investment briefing just over 48 hours from now — at 12 Noon Eastern Time, New Year’s Day.

In addition, other members of our team are also going to reveal THEIR favorite plays for the coming year including …

Larry Edelson on why gold will hit $5,000 per ounce — and why you should NOT buy it now: Plus, Larry will name the world’s single best gold stock and when to buy it … the everyday ETF that could double your money in short order … and the dead give-away that will tell you when it’s time to jump on it.

Nilus Mattive on the income investment set to pay you 35 percent in 2012 alone: It’s a household-name income stock. The dividend is 26 times more than one-year treasuries pay. The last time Nilus recommended it, the stock soared 32.5 percent in 60 days.

Nilus has also uncovered an intriguing master limited partnership: It makes money no matter which way oil prices go. Better yet, it pays you an 8.1 percent dividend each year just for owning it — and Nilus sees its share price jumping as much as 12 percent, handing you a 20.1 percent total return for the year!

Plus …

An Asian juggernaut stock: This company is riding a huge megatrend and offers products that Chinese consumers are clamoring for. No wonder its revenues have been rising an average of 42 percent over the last five years while its profits have been DOUBLING year in and year out!

A truly brilliant double-play on Europe’s debt crisis: As if its debt crisis wasn’t enough, the entire euro-zone economy is now grinding to a standstill, compounding its troubles. This single investment DOUBLES your profit opportunity. European stocks plunge: You stand to make money! The euro currency plunges: You stand to make MORE money!

A little-known gold stock that could rocket higher! It’s a relatively small company with a market cap of only $131 million. But unbeknownst to most investors, it has one working mine and two more fast-tracked projects. Plus, it has loads of gold in the ground. We think that makes it an attractive takeover candidate in 2012!

And MORE!

We’ll be revealing all of these investment ideas at our exclusive briefing for V.I.P. investors at high noon on New Year’s Day.

Best wishes,

Mike

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About the Author: Money and Markets

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