The Profits You Will Gather in America's Newest Export By Jeff D. Opdyke, Editor, The Sovereign Individual Dear Sovereign Investor, When I was in Cambodia last year, I first caught a glimpse of the coming future for natural gas. I was just minutes from Phnom Penh's international airport when my taxi driver stopped to top up his tank. In his sing-song lilt, the driver said: "Two minutes. We stop. Sorry." In the wilting heat, it quickly became apparent this was no gas station you'd recognize in the States.
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The exterior looked the part, but the gas pump looked like the end of a small fire hose. The hose was thin and yellow, more like something you'd see attached to a sprinkler in your backyard. And, oddly, there was no sound – no whoosh of gasoline flowing through a pipe into the fuel tank. My driver had pulled into a station selling compressed natural gas. I was watching tomorrow in America unfold today in Cambodia. Demand for Natural Gas is Swinging Higher With rising oil prices, the constant threat of a new war in the Middle East and growing demand for a reliable alternative energy source, it is clear that we are on the cusp of a golden era in natural gas. Companies and governments are desperate to replace some of the demand for dirty fossil fuels, such as oil and coal, and the only solution in the near future is natural gas. Already, demand for natural gas is swinging higher globally, and it's projected to explode in coming years. This fuel will represent an increasingly larger portion of the global energy mix, supplanting coal, which will see demand fall, and oil, where demand will grow more slowly. Be that as it may, I am not a fan of the commodity itself. We're still in the early days of a discovery bonanza in the nat-gas industry. Exploration companies the world over are finding huge pockets of gas inside shale and coal-bed methane formations from America's East Coast to northwest Australia to China, East Africa and Poland. Each new discovery – many of them gargantuan – adds decades to the existing supply. All told, the International Energy Agency estimates the world has enough natural gas today to meet global demand for the next 250 years, with all major regions having at least 75 years of nat-gas needs in the ground. That's a lot of gas … and there's still more to come. But liquefied natural gas is a different story. As demand for natural gas grows, countries and companies are increasingly relying on the process of super-cooling the gas into liquid form and shipping around the world in ocean-going tankers.
That's why I am such a fan of TSI portfolio-favorite Cheniere Energy (Amex: LNG). This is the company that's building America's first gas-liquefaction plant in South Louisiana, and has already locked in definitive contracts with several of the world's major natural gas consumers in Asia and Europe.
Cheniere is launching America's newest export industry – liquefied natural gas – and will open new markets to U.S. gas producers that have an abundance of gas to sell.
So far, companies from various parts of the world have locked up 89% of Cheniere's liquefaction capacity in contracts that stretch out at least two decade. An Indian firm is now looking to grab that last 11%.
Cheniere is basically a toll-taker on the road to the future.
Regardless of whether natural gas prices are $1 or $7 per million cubic feet, Cheniere will earn a fee for turning gas into a liquid for its customers. That's a business so easy to understand that my eight-year-old daughter could draw a picture of it with a crayon. Baby Multinationals that Deliver
Quadruple-Digit Growth I told Sovereign Individual subscribers back in January 2011 to buy Cheniere at $6.70 and, at the last glance earlier this week, it was up more than 130%.
Cheniere qualifies as a baby multinational, which is my favorite class of American companies. As I wrote on Friday, the benefit of holding baby multinationals is that they help get your investments outside of the U.S. economy without you actually having to go outside the economy directly. That helps protect your wealth against the ravages of a U.S. dollar destined to weaken over time because of Washington's fiscal nightmare. In short, baby multinationals are the next iteration of McDonald's, Nike or Coke – only they are much smaller and, thus, have many years of faster-than-average growth ahead of them. And because they trade in U.S. stock markets, they're easy to buy and sell. These are the exact type of companies I uncover in Global Growth Strategist. They promise to provide us the best opportunity to pick up triple- and quadruple-digit gains over time. Cheniere has appreciated a great deal since I first recommended the stock, and I stand by my analysis that says the shares should hit $21. It will, however, be a very volatile ride from here to there. Should Cheniere pull back below $12, be a buyer.
Until next time, keep a global view... 
Jeff D. Opdyke
P.S. As equity markets dip and high oil prices curtail global-growth hopes, it has never been more important than to find high-growth companies, whose businesses are focused outside the U.S. The companies I uncover in Global Growth Strategist provide us the best opportunity to pick up triple- and quadruple-digit gains over time. For access to my exclusive research report, click here.
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