All over the world, smart investors on the scene see oil wars about to explode. So they’re rushing into oil investments before their value goes through the roof.
My sister-in-law and her family lived in Jerusalem. They understand, first hand, the real threats to the oil producing regions. So they’re intensely interested in oil stocks.
A friend in Shanghai, the city with the greatest energy demand surge on the planet, called me this week asking what I think he should buy to make the most possible money from the oil-price surge. A friend in Bangkok did the same.
In contrast, most investors in the U.S. still feel insulated from the crisis that’s sweeping the globe. They may see it on the news. But the news is removed from their daily lives, and many have not yet connected the dots. Meanwhile, the crisis continues to careen out of control …
Hamas, Hezbollah, Lebanon, Iran,
Iraq, Afghanistan. North Korea …
Hezbollah’s attacks on Israel — and Israel’s attacks on Lebanon — are shaking the foundation of the entire region, with consequences reverberating in over 40 Muslim nations controlling nearly three-quarters of the world’s oil reserves.
The referral of Iran’s nuclear crisis to the UN Security Council this week is increasing the possibility that Iran will retaliate by choking off the flow of Persian Gulf oil to the world.
Iraq is now in the midst of a full-scale civil war between Shiite and Sunni Muslims. The Taliban is rearing its ugly head in Afghanistan. North Korea has just shunned Chinese diplomacy.
Oil is now ready to plow up through $80 within days, jump to $90 in weeks and catapult to my $100 target a lot sooner than anyone expects.
And there’s nothing you or I can do about it — except grab these opportunities to make hay out of rising oil prices.
Trading oil and energy stocks for tremendous profits is, in my opinion, a no-brainer.
Here’s How You Can Do It
For Less Than $2.72 a Day …
Start with Frontier Oil. Its earnings have skyrocketed to an estimated $1.54 per share in the first half — a five-fold increase compared to $.30 two years ago. But the value of its stock is up less than half that amount.
So relative to its earnings growth, clearly, Frontier Oil’s share price is still cheap. I think it’s going to gain more than 50% in the months ahead.
To capitalize on situations like this, first, you have to recognize them, and second, you have to do your darndest to get there before the crowd.
Second Quarter Earnings for Oil Companies
Should Smash All Previous Records
Earnings will start streaming out in the next few days. And it’s not hard to figure out why they should smash all previous records.
The price of oil averaged about $71 a barrel in the second quarter ending June 30 — versus $63 in the first quarter. That’s a 12.7% increase.
On the oil companies I’m looking at, earnings are going up faster than oil prices. Their second quarter earnings should rise by more than 12.7%. They could double that, and jump by at least 25%.
That could also ignite a huge rally in these shares. But here’s the clincher for me:
Due to some profit taking in late May, my favorite oil shares are now trading as if their earnings haven’t grown at all. And in some cases, they’re trading as if there’s been no earnings growth in years.
On top of that …
Many oil shares are trading as if oil were still under $60 a barrel, far below the real world price solidly in the $70s!
This is insane. These companies are already undervalued based on current earnings. They’re doubly undervalued based on future earnings and the current price of oil!
And among the four I’m looking at, Frontier is actually the one with the lowest profit potential. Here’s a peek at the three others …
Earnings up Over 100 Times!
Share Price up Less Than 2 Times.
Stock About to Play Catch up
And Explode Higher.
This is a major international oil driller whose earnings are on a tear, exploding from under a penny per share in 2003 to within striking distance of a buck per share today — an increase of over 100-fold!
But the company’s share price is only up about twofold in the same time period. Cheap? You bet it is. It’s like buying an asset you know is worth at least ten times more, and very quickly.
Moreover, this company is poised to continue its rocketing earnings growth. More and more oil companies rely on it for drilling and other services.
I don’t see how you can miss on this one. Earnings up more than 100-fold in the last three years but the stock has barely gone up twofold!? See what I mean when I say these oil shares are dirt-cheap?!
Possible Takeover Play!
Share Price Could Double Almost Overnight!
I’m talking about a major international producer with close to 2.1 billion barrels of oil. That alone is worth over $150 billion. But this company also churned out $700 million in earnings in the first quarter of this year, or $1.56 per share.
Combined with second quarter estimates, earnings have increased by over 74% over the first half of 2003, just three years ago. But the share price has increased less than half that much.
Right now, rumor has it this company is a takeover play at $90 a share, which is almost 50% higher than its current price. I agree.
My view: That’s the minimum jump I expect — with or without a takeover. The takeover will just make it happen a lot faster.
The fourth example on my radar screen right now …
$151 Billion in Oil for
17 Cents on the Dollar!
This company’s market cap — at $26 billion — is puny in comparison to the value of its oil reserves.
At $63 oil a few months ago, its reserves were worth about $134 billion. At today’s oil price, they’re worth at least 12.7% more — about $151 billion!
That’s a lot of oil, and clearly the company’s market value compared to that oil is dirt-cheap.
But here’s the real clincher: This company’s earnings have skyrocketed 10,390% over the last three years!
Yet this company’s share price is up only 278%. In my book, it should be up 1,000% — at least. And even then I think it would still be undervalued compared to its earnings.
To me, this is a no-brainer if I ever saw one. I think this company’s share price will rise 200% over the next several months, if not more.
Trading This Market
For Tremendous Profits Is a No-Brainer.
I want to give you a chance to take advantage of this opportunity without using options and at a low cost.
The name of my service is Energy Windfall Trader. And I’ve shaved the cost down to under $3 per day — less than a cup of Starbucks coffee.
It is designed to actively harvest the kind of great profit potential I just told you about. These are the profit opportunities that can be there for the taking when analysts are mostly blind to what’s happening — just like the situation we have in the oil and gas sector right now.
This service trades the stocks (or similar) companies for quick profits. No options. No futures contracts.
With the oil and energy markets roaring, the profits from just one trade could cover the yearly subscription cost many times over.
And the stocks I just showed you are merely four of dozens where I see similar opportunities to double or triple your money in relatively short periods of time.
Follow Three Simple Steps
To help you take full advantage of soaring energy prices, as soon as you subscribe to Energy Windfall Trader — we’ll rush you a free copy of our Energy Windfall Operating Manual.
In the operating manual, you get everything you need to understand today’s oil and energy markets and, naturally, how our trading publication works for you to maximize the rapid-fire profit potential that’s available.
Once you have read the manual, there are three simple steps to the process of making money in these markets …
STEP #1 — Look for your Trading Alerts
As a member of Energy Windfall Trader, you’ll hear from us as often as two to three times per week — with a direct email Trading Alert .
The issues come straight to your inbox, via email, with all the instructions you need. There is also a link so that you can download an HMTL version of the issue and file it in a three-ring binder to keep a record of everything.
STEP #2 — Read the Alert
Your Trading Alerts will fall into one of three categories:
“BUY†Alerts contain signals telling you that we’re opening a new position.
We introduce you to the company behind each stock and show you precisely why we expect its price to surge in the days ahead. We tell you how much you should pay for the stock and what price level to target.
The issues are simple to read. They are designed so that you focus on what’s important, nothing more, nothing less.
Then, once you decide to act on the recommendation, all you need to do is call your broker and read, word for word, the order instructions we provide you.
We give you everything you need to know to open the position. Plus, we always give you a stop-loss recommendation — to help cut short any losses … or help lock in a profit. With every new recommendation we give you, you get this risk protection.
“FOLLOW-UP†Alerts give you an up-to-the-minute update on your open positions, including … positive developments that are convincing us to stay in the position … negative news that could impact a position … and revised risk protection.
Suppose you have nice profits on a position. It would be foolish to keep the stop loss risk protection where it was when you opened the trade. Instead, it may be time to follow-up the position and raise the “sell stop†to cut risk further or to help lock in profits. We leave no stones unturned for you.
“SELL†Alerts tell you that it’s time to close a position to immediately lock in a nice profit or cut a loss.
In each case, we’ll recommend the selling price of your stock and the estimated result of the trade.
Then, we’ll tell you what we’re looking at for the next opportunity.
It may mean we’re out of the market for a few days or even a week if we don’t like what we see. Or, the markets may really be on fire and we may have another recommendation right away.
Either way, our objective is to make you money, gobs of it.
STEP #3 — Execute the trade
When the trading alert is a “BUY†Alert, just call your broker or jump online and make the trade. As I said, in the issue, you get everything you need to know to act promptly and efficiently.
If you have a broker, all you need to do is read the instructions. If you’re trading online, just enter the symbol, the number of shares to buy, and the price. Also enter the “sell stop†instructions we give you.
Then, when a “SELL†Alert hits your email inbox, just do the same: Read the instructions to your broker, or enter it online!
These three easy steps are all it takes! By joining Energy Windfall Trader, you have a virtual trading desk of analysts, under my leadership, at your side, guiding you to the rich profit potential that the energy markets now give you.
Naturally, as with any trading strategy, you can lose money. That’s why I do not want you to use any of your safe-keeping funds.
But, if you have speculative funds available, then it’s time to put them to work in one of the hottest, highest profit potential markets out there: Oil and energy.
Subscribe Now
A full year is just $995. That’s $2.72 per day — less than the cost of a cup of Starbucks coffee. And that’s a savings of 50% off the regular price of $1,990.
Or, better yet, join me for two full years for just $1,695 — a 67% savings off the regular $3,980 price. That amounts to just $2.32 a day. You save $2,285.
Pick up the phone now and call us toll-free at 888-394-7744 and mention your personal code of p446-65141.
Yours for windfall energy profits,
Larry Edelson
For more information and archived issues, visit http://legacy.weissinc.com
About MONEY AND MARKETS
MONEY AND MARKETS (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, and Tony Sagami. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Colleen Collins, Amber Dakar, Ekaterina Evseeva, Monica Lewman-Garcia, Wendy Montes de Oca, Jennifer Moran, Red Morgan, and Julie Trudeau.
Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short blurb: This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://legacy.weissinc.com
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