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TOP 10 STOCK PICKS FOR 2013 SPECIAL REPORT

JANUARY 2013

TOP 10 P.A.C.E™ STOCKS FOR 2013

Jay Peroni, CFP® & Jerry Robinson


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--SPECIAL REPORT--

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--COST $49—

Published by Faith-Based Investor, LLC + Robinson Media Group, LLC 3022 S. Morgan’s Point Rd #180 Mount Pleasant SC, USA Published January 2013 The studies in this report are not complete analyses of every material fact regarding any company, industry, or investment, and they are not “buy” or “sell” recommendations. The opinions expressed here are subject to change without notice, and the authors and The Faith-Based Investor, LLC, make no warranty or representations as to their accuracy, usefulness, or entertainment value. Data and statements of facts were obtained from or based upon publicly available sources that we believe are reliable, but the individual authors and publisher reserve the right to be wrong in their opinions. This publication is sold with the understanding that the authors and publisher are not engaged in rendering financial or other professional services as they may or may not have consulted with you relating to your own personal situation and circumstances. Readers should not rely on this (or any other) publication for financial guidance, but should do their own homework and make their decisions. Remember, past results are not necessarily an indication of future performance. The authors and publisher specifically disclaim any responsibility for any liability, loss, or risk, personal or otherwise, incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book. Copyright © 2007-2012, The Faith-Based Investor, LLC. All rights reserved. The Faith-Based Investor website and logo are registered trademarks. Published in the United States of America. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of The Faith-Based Investor. Content data is as of 12-31-12.

Financial Editor: Jay Peroni, CFP® Economic Insight: Jerry Robinson

Top 10 PACE Stocks for 2013

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WHAT IS THE P.A.C.E. INVESTING APPROACH? P.A.C.E. is a simple acronym for four different asset classes that have historically outperformed the general market in times of crisis and inflationary pressures.

P = Precious Metals The case for precious metals: Massive deficits and a deep financial crisis could push us closer to a new global gold-backed currency! • • •

With the U.S. government deep in debt, some are calling for gold to replace the U.S. dollar as the world’s primary reserve currency. For the first time in several decades, central banks around the world recently became net buyers of gold. Although silver is a precious metal like gold, it doesn’t have gold’s strategic reserve currency status. Nevertheless, it can perform similarly under the right conditions.

A = Agriculture The case for agriculture: We will continue to see a major rise in global food consumption: • • •

The rising global population is contributing to a substantial increase in food consumption and demand, particularly from emerging markets. The proliferation of biofuels is another major driver of agriculture demand, and higher prices as well. A dwindling supply of arable land is compounding the demand challenges, but creating opportunities for companies that can provide more efficient ways to grow and harvest crops.

C = Commodities The case for commodities: As the dollar continues to lose value, there are tremendous opportunities: •

As emerging markets grow, there is tremendous potential for an increase in profits for

Top 10 PACE Stocks for 2013

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• • •

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commodity companies. While the US dollar falls, the price of commodities increases. If investors lose confidence in foreign currencies, they prefer to invest in commodities With inflation, the price of commodities increases. In other markets, the opposite tends to be true. In the case of commodities, as costs of goods increase, price of commodities increases to keep up with demand.

E = Energy The case for energy: The growing need for energy is a trend that will last for a long time: •

New techniques for extracting natural gas and crude-oil from the earth have helped ease concerns about the inability of U.S.-based energy producers to grow domestic supply and offset the country’s heavy dependence on foreign sources for these commodities. These unconventional new drilling techniques have lowered the overall cost structure for companies engaged in the exploration of traditional energy sources, such as crude oil and natural gas. More-productive drilling techniques have led to an overall increase in mid-continent U.S. oil production, which has led to lower pricing for refiners.

OUR APPROACH The P.A.C.E. Investment Portfolio is designed to exploit a declining dollar and the increasing value of hard assets. While we are not exclusively seeking out short-term gains, we may choose to lock in the profits on some of our holdings earlier on some stocks than others. Instead of focusing on the next few weeks or months we set our target on the value of an asset three to five years from now — maybe even longer. This discipline allows us to spend our time researching and analyzing businesses rather than watching the price of a company all day. We are not after short-term gains. We’re not concerned with what the crowd is doing. In fact, we look for opportunities where others have fled and we seek to find value and make profits along the way.

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Put simply, we have two rules: 1. 2.

We look to invest in good businesses. We aim to own their stocks for at least 3 to 5 years.

These two rules are the foundation of a powerful formula that helps investors persevere through good and bad times. So what is a “good” business? We look for companies with strong market positions, management that exhibits integrity and capability, strong cash flow, solid balance sheets, growing profit margins, increasing earnings, and no involvement in socially irresponsible activities. Reasons We Might Sell We generally sell a stock for one of 4 reasons: 1. The stock drops and hits our maximum loss threshold (generally 20-25%). 2. The stock rises to our target sell price and we want to lock in a gain. 3. We find a better opportunity so we sell one company to buy another, 4. A stock gets involved in a morally objectionable or socially irresponsible area and we liquidate.

STOCKS FOR 2013… AND BEYOND Inside this report you will find our 10 favorite stocks for 2013. All of them are currently a part of our P.A.C.E. investment portfolio and have compelling growth opportunities. We’ve included buy-below prices and sell guidance to help you get in and out of these stocks at the best time. So take a look through our best timely stock ideas, which include opportunities for value, international, and dividend investing. Stay patient and keep your focus on the long-term! The U.S. dollar may be in a long-term downward trend but there is no reason why we shouldn’t make money all along the way! Happy Investing,

Top 10 PACE Stocks for 2013

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TOP 10 PACE STOCKS FOR 2013 From 8,000… down to 700… then down to our TEN best ideas! We have selected 10 companies to give you our cherry picked ideas -the "best of the best".

Allocation Company 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

Rentech Nitrogen CVR Partners American Vanguard Sunoco Logistics CVR Energy Cheniere Energy Allied Nevada Gold Stillwater Mining Brookfield Infrastructure American W ater W orks Total Dividend Yield

Symbol

Sector

Dividend Yield

RNF UAN AVD SXL CVI CQP ANV SWC BIP

Agriculture Agriculture Agriculture Energy Energy Energy Precious Metals Precious Metals Commodity

7.40% 7.15% 3.05% 4.19% 0.00% 3.81% 0.00% 0.00% 4.09%

AWK

Commodity

2.56% 3.23%

These 10 stocks are our best ideas for 2013 based on our research, projections, and outlook for the markets. Please do your own research and homework before purchasing any of the stocks on this list. These stocks are provided for illustrative purposes and do not constitute a buy recommendation for your specific portfolio. Please seek the advice of a competent, qualified financial advisor to see if this portfolio strategy may be appropriate for you based on your goals, time frame, risk comfort level, and other determining factors. Past performance is not indicative of future results.

Top 10 PACE Stocks for 2013

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1. Rentech Nitrogen Partners(NYSE: RNF) Why Rentech Nitrogen? NYSE: RNF Headquarters: Los Angeles, CA http://www.rentechnitrogen.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . . . $47.26 Market Cap:… … … … … … … … . $1.5 billion Dividend Yield: . . . . . . . . . . . . . . . . . . . . 7.4% Buy Guidance: . . . . . . . . . . . . . . . Below $50 Data as of 1/15/13

WHY BUY? With Rentech having a prime location, it allows it to realize higher average sales prices per ton of ammonia, net of transportation costs, than its publicly traded competitors. Competitors have to factor in larger transportation costs and often losing the pricing battle. Additionally Rentech’s location among the highest corn producing states allows it to sell a substantial portion of its nitrogen products into the higher-priced agricultural market, whereas many of its competitors must focus instead on the lower-priced industrial market.

Record-low natural gas prices are a key reason why I like fertilizer stocks as low prices have a positive effect on supply. One bushel of grain corn requires: • 1.25 pounds of nitrogen • 0.6 pounds of phosphate • 1.4 pounds of potash So firms with the highest nitrogen and potash exposure stand to reap the largest reward as corn yields fall. Investors looking to take advantage of low natural gas prices in the fertilizer sector should look for a company such as Rentech Nitrogen Partners (NYSE: RNF), who stand to see profit margins expand as natural gas prices are suppressed. Rentech Nitrogen Partners, L.P. is a pure-play nitrogen fertilizer company. Their facility can produce up to 830 tons of ammonia per day and they are currently expanding to have the ability to produce 1,022 tons per day.

Many dividend seekers traditionally look to royalty trusts for a natural gas play, but I think a company like Rentech provides more diversification and upside potential. The fertilizer sector should be in high demand for decades to come as global food shortages plague the world. Fertilizer partnerships benefit from low natural gas prices and it can be seen in Rentech’s share price.

2013 Price Target: $75 per share. Risk: If natural gas prices rise, it could impact profitability. Additionally, materials/commodity based stocks like Rentech can see higher amounts of volatility and price sensitivity. Because Rentech serves such a focused niche it is exposed to the ups and downs of the local economy and market. Action Point: Buy Rentech Nitrogen Partners, L.P. (NYSE: RNF) up to $50 a share. The current dividend is 7.4% and this dividend could soar. As Rentech is a natural gas-based nitrogen fertilizer they are in high demand for industrial products used for agricultural uses. It markets its products in the states of Illinois, Iowa, and Wisconsin.

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2. CVR Partners (NYSE: UAN) NYSE: UAN Headquarters: Sugar Land, TX www.cvrpartners.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . $28.10 Market Cap:… … … … … … … . $2.0 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 7.2% Buy Guidance:. . . . . . . . . . . . . . Below $30

Why CVR Partners? CVR Partners, LP is a limited partnership operating nitrogen fertilizer business which utilizes a petroleum coke, or pet coke, gasification process to produce nitrogen fertilizer. CVR Partners, LP is based in Sugar Land, Texas.

Data as of 1/15/13

WHY BUY? CVR Partners is a growth-oriented company focused on producing nitrogen fertilizer to help serve the needs of a growing population. Our company uses state-of-the-art technologies to produce urea ammonium nitrate (UAN) and ammonia fertilizer products while remaining committed to unitholder value and safe and environmentally conscientious operations.

The technology and processes used to produce ammonia and UAN are complex. The gasifier converts low priced petroleum coke into a hydrogen rich synthesis gas. The syngas is then converted into anhydrous ammonia in an ultra high efficiency ammonia plant. Subsequently, the ammonia is further upgraded into UAN in a fully integrated UAN plant.

Substantially all of its nitrogen fertilizer competitors use natural gas as their primary raw material feedstock. Historically, petroleum coke has been significantly less expensive than natural gas on a per ton of fertilizer produced basis and prices have been more stable when compared to natural gas prices. By using petroleum coke as the primary raw material feedstock instead of natural gas, CVR Partners’ nitrogen fertilizer business has historically been the lowest cost producer and marketer of ammonia and UAN fertilizers in North America.

2013 Price Target: $40 per share. Risk: As the world's largest consumer of fertilizers, China is expected to expand its fertilizer production capacity, an outcome that could put downward pressure on fertilizer prices. With U.S. deficit problems looming, many have called for the curtailment of agricultural subsidies, especially those related to corn-based ethanol. A decline in demand for corn likely would lead to lower corn prices and acres planted; resulting in lower nitrogen fertilizer use.

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3. American Vanguard (NYSE: AVD) NYSE: AVD Headquarters: New Port Beach, CA www.american-vanguard.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . . $31.09 Market Cap:… … … … … … . … $0.8 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 0.4% Buy Guidance: . . . . . . . . . . . . . Below $40 Data as of 1/15/13

WHY BUY? One of my favorite areas for the next 3-5 years is agriculture. We will continue to see a major rise in global food consumption: The rising global population is contributing to a substantial increase in food consumption and demand, particularly from emerging markets. The proliferation of biofuels is another major driver of agriculture demand, and higher prices as well.

Why American Vanguard? American Vanguard Corporation is a diversified specialty and agricultural products company focusing on crop protection, turf and ornamental markets, and public health applications. The Company has continued its successful strategy of acquiring or licensing both new and well-established product lines that serve numerous high valued market niches. New product development and international expansion also provide an additional stimulus for growth. Through skillful marketing, diligent product registration, quality manufacturing, American Vanguard has positioned itself to capitalize on developing trends in modern agriculture. American Vanguard will continue to meet the needs of a world demanding ever-increasing quantities of agricultural products for human food, animal feed, natural fibers and alternative fuels.

American Vanguard’s subsidiary, AMVAC Chemical Corporation, develops, manufactures and markets effective agricultural and commercial products for crop protection, non-agricultural and public health applications. AMVAC’s product development capabilities include new product acquisition and/or licensing for U.S. domestic sales and worldwide product distribution. AMVAC operates four manufacturing facilities in the U.S. that provide flexible production of high-quality products with an excellent record of safety and regulatory compliance. AMVAC also maintains a very robust product registration function that has successfully maintained the intellectual property value of the company’s portfolio.

2013 Price Target: $45 per share. Risk: The health of AVD’s business is closely tied to the demand for crop protection. As such, demand for fertilizers, crop chemicals, and seed are all tied to crop prices, which are difficult to forecast and fluctuate year to year. Additional supply could enter the firm's wholesale markets, disrupting pricing. For example, U.S. politicians are suggesting cuts to farm subsidies as one method to decrease government spending. A resulting decline in crop prices would decrease the demand for crop inputs. Finally, weather is always a wild card with agriculture companies.

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4. Sunoco Logistics (NYSE: SXL) NYSE: SXL Headquarters: Philadelphia, PA www.sunocologistics.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . $55 Market Cap: . . . . . . . . . . . . . . … 5.1 billion Dividend Yield: . . . . . . . . . . . . . . . . . 3.7% Buy Guidance: . . . . . . . . . . . . Below $60 Data as of 1/15/13

WHY BUY?

Crude oil and natural gas liquids production in shale plays provide SXL with opportunities to extend its pipeline network and collect attractive fee-based cash flows. Sunoco Logistics' core pipeline business is attractive and generates healthy cash flow each year. Acquisitions of additional pipeline properties will add to this flow, and the marketing business helps SXL juice returns by locking in margin opportunities. This could reach up to 12% in average annual distributions. Cash flows have just stepped up to a new level, and multiple new projects look poised to add additional inflows, supporting rapid distribution growth. We also see some potential for higher growth, new projects, or optimization of existing assets.

Why Sunoco Logistics? Sunoco Logistics Partners was spun off from Sunoco in an IPO in February 2002. It holds a portfolio of pipelines and terminals that connect refineries to retail distribution systems. The firm also buys and sells crude oil to take advantage of market structures, which works best in periods of high commodity-price volatility. As an MLP, Sunoco Logistics avoids taxation at the company level and requires that the firm pay out all of its excess cash to its investors. This is an attractive company: Great yield, big distribution jumps, and the history of consistently increasing distribution. Sunoco’s core assets are liquids pipelines that receive inflation-protected annual rate adjustments. It has the ability to boost cash flows over the next several years.

A marketing and logistics business of the scale SXL has built, combined with physical assets that can actually transport and store crude oil, adds tangible value to the partnership and results in a lasting competitive advantage. A strong marketing operation attracts volumes and supplies for pipelines, while a strong pipeline network offers producers greater access to markets. Combine the two and you have push and pull benefits. SXL has been busy on the organic growth front, with two successfully completed open seasons (Mariner West and West Texas Crude pipelines), two more under way, and another two projects in discussion with potential customers. Each of these projects will add additional fee-based cash flows and further entrench SXL's position in key markets. SXL is well positioned in West Texas to service growing Permian Basin production, and in the Marcellus/Utica SXL will enjoy firstmover benefits by starting Mariner West, which will move Marcellus ethane to Sarnia, Ontario.

2013 Price Target: $75 per share. Risk: With pipelines we're always concerned with risks like leaks or spills that would expose the partnership to environmental liabilities; regulatory changes that could affect its tax-exempt status; rising interest rates; and commodity price exposure for the crude leasehold and butane blending businesses. With SXL, we also worry about the sale of Sunoco to Energy Transfer Partners, how the merger may impact capital allocation or operations at SXL, and whether an acquisitive MLP is the best general partner for SXL.

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5. CVR Energy(NYSE: CVI) NYSE: CVI Headquarters: Sugar Land, TX www.cvrenergy.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . . $51.67 Market Cap:… … … … … … … . $4.4 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 0.0% Buy Guidance: . . . . . . . . . . . . . Below $55 Data as of 1/15/13

WHY BUY? CVR is a nitrogen fertilizer and petroleum refining company. CVR has a refinery in Coffeyville, Kansas and also operates a crude oil gathering system and storage facility. In addition, CVR directly supplies customers with products through their tanker trunks division in Kansas. The nitrogen fertilizer segment produces ammonia and urea ammonia nitrate and through distributors and retailers supplies the fertilizers to industrial and agricultural customers.

Why CVR Energy? CVR Energy is an independent petroleum refiner and marketer of high value transportation fuels in the Midcontinent United States. In addition, a subsidiary of CVR Energy serves as the general partner of CVR Partners and owns the majority of the common units representing limited partner interests of CVR Partners. CVR Energy's complex petroleum business includes a 115,000 barrel per day oil refinery operated by Coffeyville Resources Refining & Marketing in Coffeyville, Kan., a 70,000 barrel per day refinery operated by Wynnewood Refining Company in Wynnewood, Okla., pipelines to transport our products and a crude oil gathering system serving Kansas, Oklahoma, western Missouri, southwestern Nebraska and Texas.

EPS increased from $3.70 to an estimated $7.58 over the past 5 quarters indicating an improving growth rate. Analyst forecasts have recently been raised. Company recently reported better than expected results. CVR ENERGY, INC.'s gross margin (trailing 4 quarters) of 23.4% is substantially above the Oil & Gas Refining & Mktg. Industry average of 14.2%.

2013 Price Target: $70 per share. Risk: Though CVR ENERGY INC is showing strong Earnings Quality, Cash Flow Quality and Operating Efficiency, and Valuation suggests a lower amount of price risk, its Balance Sheet Quality is weak. This could lead to problems in future if its operating costs rise significantly. It currently has more than enough cash flow to cover costs at the present time so this is not a short-term concern. That being said, I believe the upside potential far outweighs the downside risk.

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6. Cheniere Energy(NYSE: CQP) NYSE: CQP Headquarters: Houston, TX www.cheniereenergypartners.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . . $23.91 Market Cap:… … … … … … . . $6.5 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 7.1% Buy Guidance: . . . . . . . . . . . . . Below $25 Data as of 1/15/13

WHY BUY? Global demand for natural gas is expected to expand significantly as more nations adopt environmentally cleaner fuels to meet future economic growth and prioritize alternatives to minimize the impact of increasing oil-based energy costs. The environmental benefits of natural gas are clear. Natural gas emits 43% fewer carbon emissions than coal, and 30% fewer emissions than oil, for each unit of energy delivered. Many of the most rapidly growing gas markets are in emerging economies in Asia, particularly India and China, the Middle East and South America, economies which battle the balance between air quality and living standards on a daily basis. According to the U.S. Energy Information Agency (EIA), worldwide natural gas demand grew by 57 Bcf/d from 2000 to 2007, nearly 25%. The EIA also projects global natural gas demand to grow over 40 Bcf/d by the year 2015, and projects a further growth in demand of over 50 Bcf/d by 2025.

Why Cheniere? Cheniere Energy Partners was spun off as a master limited partnership from Cheniere Energy in 2007. Cheniere Energy Partners operates the Sabine Pass liquefied natural gas receiving terminal in Sabine, La. When completed, Sabine Pass will have 4 billion cubic feet per day of regasification capacity, making it the largest LNG import terminal in North America. The firm also has 16.8 bcf of LNG storage capacity. Cheniere Energy Partners, L.P. (Cheniere Partners) operates three, 100%-owned, onshore liquefied natural gas, or LNG, receiving terminals along the U.S. Gulf Coast. The Company's three terminals have an aggregate send-out capacity of 9.9 billion cubic feet of natural gas per day. Cheniere plans to leverage its terminal platform by pursuing related LNG business opportunities both upstream and downstream of the terminals. The Company develops a proposed liquefaction project at Sabine Pass terminal which transforms the terminal into a bi-directional LNG processing facility capable of importing foreign sourced LNG and exporting United States natural gas as LNG.

2013 Price Target: $40 per share

Risk: CQP tends to perform in-line with the S&P 500 index regardless of whether the market is experiencing an up or a down day. Over the last 90 days, CQP's Standard Deviation has been 2.1 while that of the S&P 500 index has been 0.8. In the short term, CQP has shown average correlation (>= 0.2 and < 0.4) with the S&P 500 index. The stock has, however, shown high correlation (>= 0.4) with the market in the long term.

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7. Allied Nevada Gold (NYSE: ANV) NYSE: ANV Headquarters: Reno, NV www.alliednevada.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . $27.80 Market Cap:… … … … … … … $2.5 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 0.0% Buy Guidance:. . . . . . . . . . . . . . Below $30 Data as of 1/15/13

WHY BUY?

Allied Nevada is a US-based gold mining and exploration company, which operates its wholly owned Hycroft gold mine located near Winnemucca, Nevada. The Company also owns more than 100 advanced and early stage exploration properties located throughout the State of Nevada. The Company's focus is on internal growth strategies, including the development of the Hycroft mine from a run-of-mine heap leach operation to a world-class, large-scale heap leach a milling operation. This will be accomplished through a logically staged growth plan involving the acceleration of the current mining rate for the heap leach operation, nearly tripling 2009 production by 2012.

Why Allied Nevada Gold? ALLIED NEVADA GOLD CORP. is engaged in the evaluation, acquisition, exploration and advancement of gold exploration and development projects in Nevada. The Management works to identify opportunities to improve the value of our gold projects through exploration drilling and/or introducing technological innovations. The goal of this work is to move properties into development and, ultimately, into production. Management's strategy is to use the best available management, technical expertise and geologic talent to expand existing discoveries and, where feasible, to develop these properties into producing high-quality mines or significant royalty streams. In addition to the properties that Allied Nevada owns or has an interest in, Management will pursue additional opportunities in advanced stage exploration projects or producing mines. Allied Nevada Gold is a gold exploration and development company. Allied is involved in over 100 mining sites that comprise over 222,000 acres across Nevada: in addition to owning several mining sites, the company has joint interests over 50 properties located in major gold producing areas in the state. After a ten year hiatus, Allied reopened its Hycroft Mine, a major project, in 2008 following the strong, protracted rise in gold prices.

2013 Price Target: $40 per share Risk: The primary risk is a significant and sustained drop in gold prices. Mining entails operating risks such as hazardous material release, labor disruptions, geological failures, explosions, and water damage. Controversy over mining practices could harm the company's ability to obtain a license to operate in the future.

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8. Stillwater Mining (NYSE: SWC)

NYSE: SWC Headquarters: Billings, MT www.stillwatermining.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . . $13.90 Market Cap:… … … … … … … $1.6 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 0.0% Buy Guidance: . . . . . . . . . . . . . Below $15

Why Stillwater Mining? Stillwater Mining is North America's largest miner of platinum group metals. Stillwater Mining Company is engaged in the development, extraction, processing, smelting, refining and marketing of palladium, platinum and associated metals from a geological formation in southern Montana known as the J-M Reef.

Data as of 1/15/13

WHY BUY? The Company conducts mining operations at its Stillwater and East Boulder mines in south-central Montana. The primary product produced at the Company’s mines is palladium. Concentrating plants are located at both mines to upgrade ore to a concentrate. The Company operates a smelter, refinery and laboratory at Columbus, Montana to further upgrade the concentrate to a PGM-rich filter cake. The Company also processes spent catalyst material through its recycling facility to recover PGMs.

This is the only known significant source of platinum group metals (PGMs) in the United States and one of the significant resources outside of the Russian Federation and South Africa. Platinum group metals are rare precious metals used in diverse applications for auto catalysts, fuel cells, hydrogen purification, electronics, jewelry, dentistry, medicine, coinage and other uses. Three Metals, One Miner: 1. Palladium: In addition to catalytic converters, palladium is used in jewelry, electronic components for personal computers and cellular telephones, as well as in dental applications and in petroleum and industrial catalysts.

2. Platinum: The largest use for platinum is catalytic converters, followed by jewelry. Industrial uses for platinum, in addition to automobile and industrial catalysts, include the manufacturing of data storage disks, fiberglass, paints, nitric acid, anti-cancer drugs, fiber optic cables, fertilizers, unleaded and high-octane gasoline and fuel cells. 3. Rhodium” Rhodium, produced in the Company’s recycling operations and to, a limited extent, as a byproduct from mining, also is used in automotive catalytic converters and in jewelry as a plating agent to provide brightness.

Price Target: $20 per share Risk: SWC’s future is contingent on volatile palladium and platinum prices; a significant decline in these commodity prices could impair the company’s profitability. Other significant risks include environmental regulations and foreign currency fluctuations.

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9. Brookfield Infrastructure (NYSE: BIP) NYSE: BIP Headquarters: Hamilton,HM www.brookfieldinfrastructure.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . . $36.69 Market Cap:… … … … … … … $6.8 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 4.4% Buy Guidance: . . . . . . . . . . . . . Below $40 Data as of 1/15/13

Why Brookfield Infrastructure? BIP’s current business consists of the ownership and operation of premier utilities, transport and energy, and timber assets in North and South America, Australasia, and Europe. Brookfield Infrastructure also seeks acquisition opportunities in other infrastructure sectors with similar attributes. In its three businesses it is very well diversified:

WHY BUY?

1. Transportation and Energy: Provide transportation, storage and handling services for energy, freight, bulk commodities and passengers. Its transport and energy platform is geographically diverse with pipelines in the U.S., ports in the UK, Europe and China, a rail network and energy distribution business in Australia and a toll road in Chile. 2. Utilities: Regulated or contractual businesses that earn a return on their asset base. The businesses within its utilities platform are geographically diverse, spanning six countries on four continents − Australia, New Zealand, UK, Chile, Colombia and Canada. 3. Timber: Provide essential wood products for the global economy on a sustainable basis. Its timber platform consists of 419,000 net acres of high-quality freehold timberlands located in the coastal region of British Columbia, Canada and the Pacific Northwest region of the U.S. Its timberlands are predominantly comprised of premium Douglas-fir, hemlock and cedar species suitable for high-value structural and appearance applications in domestic and export markets. In addition, its land holdings include higher and better use (HBU) lands, which may have greater value for real estate development or conservation. Its timberlands have deferred harvest volume of 2.9 million m3, which is in addition to harvest volumes that reflect annual timber growth as determined through our long-run sustainable yield (LRSY). Brookfield Infrastructure operates high quality, long-life assets that generate stable cash flows, require relatively minimal maintenance capital expenditures and, by virtue of barriers to entry and other characteristics, tend to appreciate in value over time. Its current business consists of the ownership and operation of premier electricity transmission systems and timberlands in North and South America, and it seeks acquisition opportunities in other infrastructure sectors with similar attributes.

Price Target: $50 per share. Risk: Foreign exchange risk is at play with foreign stocks and will produce returns in the local currency of the investment. As a result, investors will have to convert this local currency back into their domestic currency. Political risk is another risk with uncertainty regarding adverse political decisions. Developed nations tend to follow a free market discipline of low government intervention, whereas emerging market businesses are often privatized upon demand.

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10. American Water Works (NYSE: AWK) NYSE: AWK Headquarters: Voorhees, NJ www.amwater.com

FINANCIAL SNAPSHOT Recent Price: . . . . . . . . . . . . . . . . . . . . $37.93 Market Cap:… … … … … … … . $6.5 billion Dividend Yield: . . . . . . . . . . . . . . . . . . 2.5% Buy Guidance: . . . . . . . . . . . . . Below $45 Data as of 1/15/13

Why American Water Works? Founded in 1886, American Water Works is the largest investor-owned U.S. water and wastewater utility. It provides water and wastewater services to residential, commercial, and industrial customers, and operates predominantly in regulated markets, which account for nearly 90% of its total revenue. Its non-regulated businesses include wastewater management operations and public/private partnerships.

WHY BUY? ª America's water infrastructure is old and poorly maintained. A 2007 EPA estimate put the cost of updating community infrastructure at close to $335 billion for drinking water alone. • American Water's size should be a major advantage in pursuing new customers and acquisitions in the coming years, as tuck-ins to existing systems are a cheap source of growth. • Successes with non-regulated projects, such as the Tampa Bay desalination plant and Gillette Stadium's water reuse system, showcase American Water's expertise to prospective customers. • Regulatory lag is an issue, but American Water is partially protected by infrastructure surcharges, forward-looking test years, cost pass-throughs, and construction work in progress in some states. • A new patent to remove agricultural runoff from wastewater could spell opportunities.

Much of the U.S. water infrastructure dates back to the Great Depression, and the Environmental Protection Agency estimated in 2007 that it would require about $335 billion to upgrade and repair just community and not-forprofit water systems. With municipalities struggling to finance basic repairs and federal funding unable to bridge the gap, the signs point to massive opportunities for investor-owned businesses.

American Water's size and geographical diversity mean that the firm is better able to capitalize on these opportunities, as it is easier to connect new customers to existing systems and treatment plants than to build new infrastructure. It also helps the company maintain lower rates, as it can balance less profitable operations in one state with more profitable operations in others. This helps with regulatory goodwill but doesn't generally lead to attractive regulated returns. Continuing economic weakness also weighs on performance, as regulators are more inclined to sacrifice shareholder returns in exchange for political capital.

2013 Price Target: $50 Risk: American Water's aggressive plans for infrastructure replacement and upgrades will run into public anger at rising rates for clean water that has traditionally been cheap. Weather-adjusted usage is in decline across American Water's territories, as conservation and higher rates for water are biting into demand. Voters' rejection of the company's offer for Trenton Water Works illustrates the pitfalls of growing a regulated business through acquisitions. In periods of rising inflation, utilities are generally less attractive investments because they earn a set return on assets that can take time to adjust, despite investor perception of steady cash flows.

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ABOU T T HE AU T HORS JAY PERONI, CFP® Chief Investment Officer Featured on ABC News, TheStreet.com, Benzinga, FTMDaily, Crosswalk, 48Days, ChristianPF.com, and many other leading industry media. Jay has a Master of Science in personal financial planning, a Certified Financial Planner professional (CFP®) and is a proud member of the Christian Financial Advisor Network. He manages the popular P.A.C.E. Investment Portfolio. He is the founder of FaithBasedInvestor.com, and Chief Financial Editor of Rethink Wealth Monthly™, a popular investment newsletter. He has over 16 years of financial planning experience.

JERRY ROBINSON Chief Economic Strategist Founder of the P.A.C.E. investing philosophy – precious metals, agriculture, commodities, and energy –renowned economist Jerry Robinson leads FTM Daily. Jerry Robinson is published author, columnist, and international conference speaker. In addition, Robinson hosts a weekly radio program entitled Follow the Money Weekly, an hour-long radio show dedicated to deciphering the week's top economic and financial news. Robinson has appeared on numerous TV and radio programs, including Fox News, to discuss global economic topics. Robinson is also the best-selling author of the book, "Bankruptcy of Our Nation: Your Financial Survival Guide." (New Leaf Press, 2012).

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