I think low natural gas prices have created a huge opportunity for investors right now. In fact, I’ve already been making recent recommendations in this area to my own subscribers that have returned as much as 22% in just 10 days! That’s why I’ve decided to do something special today, by asking Sean Brodrick for permission to send you a copy of his full report on what he’s been calling the “New Fuel Revolution.” As you’ll see, it’s all about natural gas. I think Sean’s analysis is spot on, and the companies he’s profiling could be huge winners in 2012 and beyond. I know firsthand just how much profit potential is here, so I really encourage you to read this right away … — Best wishes, Mike |
Dear Friend,
Let me tell you a story about a guy named Chris Moreno.
He lost his job more than two years ago. And the 38-year-old was having trouble finding new work.
So when his wife told him the good news — that she was pregnant — Chris wasn’t filled with joy. Instead he found himself wondering how he’d ever make ends meet.
Chris figured his only solution was to give up his property … a humble piece of land where he planned to enjoy lazy afternoons hunting raccoons and catching catfish.
But then Chris got a call, and his entire life changed almost immediately.
A short while later, Chris was looking at a deal that would put $750,000 in his pocket right away … and then pay him as much as $900,000 every year going forward!
There’s also a Sheriff’s Deputy named Pat Jones, who bagged a cool $320,000 without even leaving his day job.
And an ordinary great grandmother from rural Arkansas named Judy who got a similar call and was soon looking at a huge $4.5 million payday!
Did these people win the lottery or a Publisher’s Clearinghouse contest? Not at all.
Instead, as I’m going to show you today, their rags-to-riches stories are simply signs of a major natural resource revolution that is happening right now … one that you can also take part in.
In fact, you should consider this report to be YOUR call.
You see, American history is full of stories about perfectly average, everyday people who made fortunes by being in the right place at the right time.
My name is Sean Brodrick and I’ve spent much of my professional life studying exactly how it happens — how individuals can tap into major turning points to create massive personal wealth. And what I’ve found is that these stories often revolve around important new developments in the world of natural resources.
Today, I’m going to tell you about just such a major resource revolution that’s happening right now.
More importantly, I’m going to show you how the millions now being made by people like Chris, Judy and Pat are just the start … and that plenty more profits await those of us who invest in the NEXT phase of this major new boom.
I’m calling it the “New Fuel Revolution” because it’s going to change everything you might believe about the future of energy.
In the next few minutes, you’ll see how this Revolution in Fuel is already transforming the world …
But I’m getting ahead of myself.
Because if you truly want to understand the power of this New Fuel Revolution, and all the potential profits that lie ahead, you first need to understand that …
Although the New Fuel Revolution IS About a Solution to Our Crude Oil Problems, It Has Nothing to Do with Ethanol, Solar, or Wind Power!
Look, for the last century, crude oil has reigned supreme.
It’s been the perfect answer for a rapidly growing world. It was an extremely abundant source of fuel that helped create changes most people would have scarcely imagined.
With the automobile, for example, Americans could travel freely — forgetting the railroads and the smoky coal they burned.
Crude oil transformed our world … and in that transformation, some of the world’s greatest fortunes were also made.
From America’s first billionaire — oil magnate John D. Rockefeller — to the giant sovereign wealth funds of oil-producing countries, crude oil has been one of the most consistent sources of POWER and PROFIT the world has ever seen.
But nothing lasts forever.
And the real-world cost of supporting our ravenous fuel habit is rapidly becoming too much to bear.
As you can see in my chart, the average annual price of a barrel of oil is skyrocketing from an average of less than $25 a barrel in the 1990’s to over $100!
In fact, the average annual oil price was higher in 2011 than it’s been in over 150 years … even when adjusting for inflation!
Clearly, this isn’t just a temporary spike in price. Nor is it based on momentary shortages or market speculation.
Quite to the contrary — it’s a long-term, one-way price rise that is actually accelerating!
Of course, a lot of people out there say we can solve the crude oil problem with solar power … with wind turbines … or with some type of ethanol … SOME DAY.
Instead, I say we have a solution right here, right now … one that is immediately viable and is already spinning off huge profits …
And that solution is natural gas!
We Can Kick the Crude Oil Habit with
Natural Gas from Our Own Backyards
Natural gas is already used by many household appliances, automobiles and other pieces of industrial machinery. In fact, about 70% of all newly-constructed homes since 1999 use natural gas for heating.
It’s also the cleanest-burning fossil fuel — releasing 45% less carbon dioxide emissions than coal or crude oil — so it’s a great choice for the environment, too.
And — perhaps most importantly — natural gas exists in absolutely enormous quantities right here in the United States.
By some estimates, over a century’s supply of natural gas is locked away under American soil.
In the words of one natural gas executive, “America is the Saudi Arabia of natural gas.”
Take Chris Moreno’s humble little piece of land, for example. It happens to sit right in the heart of a place called Haynesville … along the border between Texas and Louisiana.
For decades, people thought Haynesville was nothing special. But then — just a few years ago — exploration revealed that the entire area is swimming in natural gas.
Which is why, even when oil was still selling for just $70 a barrel, there was already a major land grab going on in the Haynesville area.
Companies were quietly sewing up land deals and planting the seeds of the New Fuel revolution … and handing out the huge payments I mentioned earlier to everyday landowners like Chris, Pat and Judy.
They were among the lucky folks who owned land on the Haynesville shale, and they weren’t alone.
At first dozens — then hundreds — of homeowners started receiving offers from huge natural gas companies, too.
And soon, the natural gas gold rush started sweeping more and more of the country — especially with major new discoveries in places like the Marcellus shale.
But since natural gas is nothing new … why the feeding frenzy all of the sudden? Why am I calling this a New Fuel Revolution?
Because …
It’s about new techniques that allowed the big discoveries to happen …
It’s about new technologies that are allowing us to unlock the gas and transport it …
And most importantly, it’s about NEW DEMAND!
All these forces are ushering in a New Fuel Revolution that will give ordinary investors like us a chance to reap massive profits, too … without having to rely on luck like Chris, Pat and Judy did.
Just Based on American Consumption Alone,
Natural Gas Is Already a Huge Profit Opportunity …
Legendary energy investor T. Boone Pickens has said, “Natural gas is the critical puzzle piece that will help us to keep more of the $350 to $450 billion we spend on imported oil every year at home.”
And he’s right — with gasoline still running at $4 a gallon in the middle of a major economic slowdown, Americans have already started embracing the flood of new low-priced natural gas reserves in a big way.
Nationwide, the electricity generated by gas-fired plants has risen by more than 50% over the last decade, while coal-fired generation has declined.
Meanwhile, entire fleets of shipping trucks are being converted from traditional diesel to natural gas-fired engines.
Just think about it…what American family wouldn’t want to cut their utility costs by up to 30% — or even more? Who wouldn’t want to fill their car’s gas tank for half the price?
And who wouldn’t want a cheaper, cleaner, and abundant source of energy that has nothing to do with the war-torn Middle East … but comes from the American Midwest, extracted and processed right here in the heart of the U.S.?
Even local governments are getting in on the action: Converting to city buses that run on natural gas, even upgrading police forces from gas-guzzling cruisers to highly-efficient hybrids that run on natural gas.
So just based on our own local consumption, the New Fuel Revolution’s profit potential would be absolutely enormous.
But You Haven’t Seen Anything Yet —
Because Foreign Demand Is Now About to
Kick This Revolution Into High Gear!
The New Fuel Revolution is just getting started. But in the months ahead, it will truly explode as 5.4 billion brand new consumers in the world’s emerging markets embrace this fuel …
With populations exploding and economies soaring, they want to start living the good life, and they want it now. They’re building factories, power stations, cars and gadgets at breakneck speed.
More than anything else, they need FUEL to run all the new power stations, to cook their food and warm their houses, to fuel their new daily commutes. But like everyone else, they’re struggling to pay for this kind of lifestyle with crude oil at $100 a barrel. So they’re actively pursuing alternatives …
Brazil, for example, leads the world with 14.3 million alternative fuel vehicles — including a million motorcycles sold since 2009.
And they’re not the only ones considering a new kind of fuel.
It’s happening all across Asia — from the subcontinent of India, where gas demand is expected to double in the next five years, to the massive expanses of China. These consumers are demanding more natural gas than domestic suppliers can provide.
Each of these countries is now becoming an IMPORTER of natural gas. And as they do, billions of new consumers are seeking out a source of cheap, clean fuel.
Even developed nations are starting to make the switch …
After the recent meltdown at the Fukushima reactor, Japan decided to shut down nearly all of their nuclear reactors — leaving only a handful up and running — to prevent a similar tragedy from happening again.
How do they plan to replace all that output without any domestic oil reserves?
Their answer is simple: Natural gas.
And all this new global demand is already pushing up prices in places like Europe and Asia, where natural gas has been getting more and more expensive for the last few years.
But not in America …
As you can see in the chart above, massive gas discoveries in places like Haynesville and the Marcellus shales have kept our natural gas prices low … so low that natural gas is now 75% cheaper in America than it is in Asia!
In other words, America has so much natural gas that we can not only solve much of our own energy needs but also make money hand over fist selling to foreign markets.
Heck, there’s a huge opportunity to make BILLIONS by selling our $2.50 natural gas to foreigners who will pay as much as $16!
I’m Sure You Can See Just How Big the Profit Potential Is with this New Fuel Revolution …
And Yet I’ve Still Only Just Scratched the Surface!
America is going to be exporting billions of dollars worth of dirt-cheap natural gas to countries all over the world, propelling a whole new kind of boom.
The export facilities are being built right now.
The contracts are being signed, locking in some twenty years of gas exports to thirsty markets in Europe and Asia.
And the U.S. government is even issuing export permits that haven’t been given out in more than forty years!
But foreign investors and governments aren’t stupid. They know that rock-bottom natural gas prices are giving them a huge opportunity RIGHT NOW!
And that’s why they’re not waiting around — they’re already pouring money into the American natural gas industry hand over fist — spending more than $37 billion just in the third quarter of last year alone!
They’re funding every new project they can get their hands on. They’re looking to lock down supplies of cheap, America natural gas for decades to come. And they’re snatching up every promising small natural gas company they can find.
This flood of foreign cash is already driving some natural gas investments through the roof, and it’s even spilling over into neighboring Canada … where — since 2009 — China’s state-owned oil companies have invested $16 billion in new forms of fuel like shale gas.
This is the real, concrete proof of the New Fuel Revolution.
With tens of billions being spent on a monthly basis, you simply can’t argue with the fact that the world’s energy industry is changing … and fast!
Money talks, as the saying goes, and these countries aren’t putting their money in Big Oil companies like Exxon or BP. Instead, these companies are investing billions of dollars in small-cap natural gas companies that have decades of profit potential.
With demand for natural gas growing by leaps and bounds, and with billions in fresh investments from foreign countries, these eager little companies are poised to make the very most out of a transition in global energy standards.
And some of these very same companies are the perfect place for YOU to make a fortune on the New Fuel Revolution!
But Buyouts Are Just One of the Reasons I Think Small Cap Stocks Are Your Best Way to Profit from this New Fuel Revolution …
Here are three more reasons why …
Reason #1: All It Takes Is One Development to Send a Small-Cap Energy Stock Exploding Higher!
It doesn’t take much to move smaller stocks soaring. In fact, a single new innovation or just one new discovery could send a small cap absolutely soaring.
Alon U.S. Energy Partners is a great example of what I’m talking about. After a rough year for most of 2011, the company surprised the market when it turned a substantial profit and began paying a dividend in the third quarter.
The market reacted almost immediately … and as you can see, they sent the stock absolutely soaring … for a quick gain of 56.8% in just over two weeks!
This is the kind of upshot you just don’t see when you buy bigger, better-known stocks.
And let me tell you — I think we’re going to see a lot of smaller natural gas stocks start moving like this in 2012.
Of course, not all of them will. So the next logical question is how can you figure out which small caps are the ones that are going to explode in value. And that leads me to …
Reason #2: I know from experience that virtually the only way to consistently get a leg up on most investors is through relentless research … even if it means checking out these smaller resource companies in person … to find the ones that are on the verge of breakthroughs!
For starters, the vast majority of the world’s analysts and investors aren’t even looking at these companies …
For example, there are 27 professional analysts following ExxonMobil right now. Every tick, every public announcement, practically the whole world knows what’s happening with this company.
Meanwhile, only THREE analysts are providing price targets on a stock that’s central to the New Fuel Revolution. Just three!
But the most important part is that even the Wall Streeters who DO follow these smaller resource companies have no idea how to actually separate the wheat from the chaff …
You see, most of these analysts are just glorified accountants. They read a balance sheet from an energy operation, and they think they understand what’s going on.
But that’s just not how it works with smaller resource companies on the cutting edge!
You’ve got to talk to the executives. You’ve got to visit them in person, even if it means crazy helicopter rides or nights spent in chilly Arctic cabins. And sometimes you’ve got to literally go down into the mines … peer into the wells … or drive along the pipelines in person.
That’s exactly what I did with Aurcana, a small-cap resource company that I visited in 2010 …
I felt like there was a turnaround on the way … so I hopped on a plane, took the first bus up a treacherous mountain slope, and I checked it all out for myself.
I saw the operation in person. And then I spoke with the CEO, the Senior VP, and the VP of exploration, and I quickly realized these guys were on to something big so I fired off a recommendation to my readers before I even left the property.
All my effort was worth it because that recommendation soared by 158% … that’s the kind of move that can turn a $10,000 investment into more than $25,800!
Look, I’ve been doing this for decades now; sifting through the hype and getting the real resource stories straight from the source … and that’s precisely why some of my past picks have gained 122.6% … 189.2% … 290.8% … and even up to 368.7%!
Now those numbers don’t factor in commissions or fees. Obviously, there’s no way to guarantee we’ll see similar returns in the future, and not all of my past recommendations have worked out as well as this. Even outright losses can and do happen. These things are true of all the numbers I’m citing today, in fact.
And even with my biggest winners, I have to admit that I DO sometimes get a little help from the big guys because of …
Reason #3: Often times, the big money moves in later, sending our small-cap resource stocks even HIGHER!
Sure, there are some big-money investors that specialize in smaller companies. But in reality, the vast majority of investors are focused solely on large caps.
Take mutual funds. Many of them are actually PROHIBITED from buying companies with share prices under $5.
But as soon as one of these small caps starts taking off … as soon as a positive piece of news hits the wires … or the share price gets high enough for the funds to pile in … you could potentially see billions of new investment dollars start pouring in … sending share prices doubling and tripling in short order!
So small-cap stocks are one of the rare corners of the markets where individual investors like us have an ADVANTAGE over the big boys … because we can get in on the ground floor … before the big money can.
And by putting a relatively small amount into a handful of smaller resource companies … we are perfectly positioned to reap very, very large returns once the Wall Street crowd shows up.
That kind of profit potential is exactly what small caps deliver.
Here’s Real Proof that Small Caps Beat the Pants Off of
Larger Stocks When It Comes to Actual Returns!
Time and time again, small-cap indices have trounced larger stocks — proving that it’s easier for you to make a fortune with select small-cap natural resource stocks than if you just stick to their larger counterparts.
And I’m not just talking about the last few years … this has been true for nearly a century!
Take a look at my chart, which compares small-cap value stocks to large-cap growth stocks.
As you can see, it’s simply no contest …
If you’d invested $10,000 in an index of large-cap growth stocks back in 1926, you’d be sitting on nearly $10 million today. Not bad …
But with that same $10,000 investment, an index of small-cap value stocks would be worth more than a billion dollars!
There’s just no comparison: Small caps SMASH large-cap stocks in returns … and that’s EVEN TRUER in trickier markets like the one we have now …
A recent study from the University of Chicago looked at 182 periods during which the stock market created average or lower-than-average returns, and they found that small caps outperformed large caps 95% of the time!
What’s more, the same study concluded that smaller companies are the first to rocket higher once new bull markets begin!
My own experience definitely confirms all these facts. Just take a look at a few examples:
- In October of last year, I recommended a little-known small cap … and even though commodities were tumbling in price, this power-packed investment soared 70.1% in just two short months!
- Back before the crisis kicked off in 2008, I was already recommending an underrated resource company in another service — and while the bigger companies went nowhere, this little play cranked out a 198.4% gain!
- Meanwhile, around the exact same time, my picks on Great Panther — another superstar of the small caps — rocketed up 324.4%, more than TRIPLING investors’ money!
And because of everything I’ve told you so far about the New Fuel Revolution — from the new shale gas discoveries … to the hungry foreign markets, and the inevitability of natural gas exports — all this has convinced me we now have a huge NEW opportunity in smaller resource stocks …
In fact, I can already show you a handful of red-hot small caps that are poised to soar in the next 12 months … all because of the New Fuel Revolution.
Red-Hot Revolutionary Small Cap #1 — The Google of Natural Gas, with a Game-Changing Innovation That Could Hand You a 157% Gain!
This company is growing almost as fast as Google did in its early years, outpacing the leaders in an industry that’s growing like wildfire. And like Google, they are literally rewriting the way their industry works …
Hydraulic fracturing — or “fracking” — is one of the new technologies I was talking about earlier and it allows miners to get at all the gas locked up in places like the Haynesville shale.
But the process isn’t perfect.
As you may already know, there’s been some backlash against fracking by environmental groups. And a good deal of this backlash is based on the massive amounts of water pollution that fracking currently creates.
But this company has created a new kind of fracking technology — one that doesn’t result in a single drop of waste water!
It’s a natural evolution to the process — and it’s something every miner, every well and every company need if they want to keep cashing in on the shale boom without drawing negative attention from the media.
And this company has a lock on their new process. With ten patents issued and seven outstanding, this process can’t simply be copied or stolen away by a competitor.
This isn’t some test-tube innovation, either — this company is already profitable in its first year of operation!
They’re deploying their new fracking process in Canada and abroad.
And with Chevron already at the table, this company is planning to ink their first big deals in the United States this year … which is when I think their stock will start to soar.
Heck, I figure an American fracking deal would more than double their potential revenues this year!
So you can see why this company represents one of the greatest opportunities in natural gas today.
I think its stock could rise 157% from current levels!
Then there’s also …
Red-Hot Revolutionary Small Cap #2 — The Forgotten Driller with 308% Potential!
This is one of the few natural gas companies that didn’t do well in 2011. In fact, it got absolutely killed after regulatory changes put a damper on its main source of business.
But I think the impact of these regulatory changes were overblown … and that most investors are missing the fact that a merger completed less than a month ago gave this company a new lease on life!
You see, that deal gave them a relationship with a giant independent energy producer. And once you break it all down, this new deal should increase their output six times over.
All told, I figure this new deal is worth ten times more than anything the company has had in place before.
So I think this stock could easily more than double from its current level.
And if investors catch on and send this company back to where it was last year, you could be looking at a gain of 308%!
Plus, check out the third stock I have on my radar screen right now …
Red-Hot Revolutionary Small Cap #3 — It’s Already up more than 80% in Six Months, and I Think It Could Easily Rise Another 152% from Here!
This quiet little company’s share price started to fly late last year based on a handful of new land acquisitions — deals that increased their available acreage by 70% and doubled their production. But that’s only the beginning …
You see, this company only has five of their new rigs up and running so far, but they have 155,000 acres of prime real estate on one of America’s richest natural gas deposits. And this year they’re looking to multiply their number of active wells TENFOLD!
Better yet, they’re planning on funding all those new wells with the cash they already have on hand — instead of issuing new shares or taking out new debt.
I only see two endings to this fairy tale story:
Either this cash-rich company chugs along and makes a mint on its own …
OR it gets snatched up by one of the majors really soon!
So no matter what happens, I think there could be A LOT more upside in store for anyone who invests in this company now.
And once you add in the fact that management is aggressively working on new business deals, this stock could explode 152% from current levels!
As you can see …
The New Fuel Revolution Is About to
Send Some Red-Hot Small Caps to the Moon …
But Timing Is Going to Be Absolutely Critical!
These three stocks are just a taste of the massive wealth-building opportunities headed our way thanks to the New Fuel Revolution. And I’m still wrapping up my research to determine which ones are the very best buys right now.
But I fully expect to release my final recommendations by February 27.
Sincerely,
Sean Brodrick
Editor
Red-Hot Global Resources
{ 6 comments }
If you listen to Weiss research, anything that goes up in the markets must be leviated and manipulated…
but…I guess when they say something is going to go up, its just factual….
can’t have it both ways!!!!……man..these clowns are so frekaing obvious….what their cake and eat it oo..
Lighten up Frances.
http://www.youtube.com/watch?v=0OnpkDWbeJs
yeah..okay….buckle-up, newbie…
Still waiting for some great market call from ya, bright boy..all you sound like is a poorly trained parrot…
Good article Sean!
I’m optimistic that a boom in natural gas use and production will give the US real “organic” growth and create numerous jobs and benefits for the US economy. And this is far superior to fraud and debt based growth predicated on first consumers and government borrowing, spending, and living beyond their means.
My family has owned mineral rights in Leon County, Texas which my grand parents bought & traded between 1921 thru 1958. We have our own Lease form and hold very tight to the terms and conditions. With natural gas prices below $4.50/mcf; the lease bonus is too cheap to lease and the actual ‘terms’ are evolving into a ‘shared’ interest at the ‘estimated reserves’ on NG…. thus allowing real freedoms to the mineral owner for hedging.
Thought you should know.
I sincerely enjoy Weiss perspectives on all the markets and forecasts.
Natural Gas is old news. The good buys were in 2008 / 2009 like WPRT.