 The End of Hearing Aids
This hasn't made headline news yet, but one small biotech has developed a breakthrough technology that could virtually eliminate hearing aids... transforming the lives of anyone with hearing issues.
Once this life-changing technology is made available to mainstream buyers, the company's cheap stock could rocket to monumental levels. See the full details - including nine other breakthroughs that will change our world - right here. |
Monday, July 22, 2013 | Issue #2082
Six-Baggers for the Next Decade: Part 1
David Fessler, Energy and Infrastructure Strategist, The Oxford Club
|  Fortune magazine's most recent "Fortune 500" issue tracked the stock-price performance of the 500 biggest U.S. companies from 2002 to 2012, and found that 46 of them produced annualized compound gains of more than 20%.
That's means over the 10-year period studied, these stocks were six-baggers: They each produced a six-fold gain.
Here are the top three:
View larger image
So how do we pick companies that are going to be on the list 10 years from now? I can tell you they'll all be disruptor companies, just like the top three listed above.
I have two good candidates, both disruptors in their beginning stages of growth. Both companies are in the same energy sector - a sector where conventional wisdom is several decades old.
I'll tell you about the first one today and the second one tomorrow, so check your inbox.
| SPONSORED Why pay more for silver?
For two decades, we've been promoting 90% Junk Silver due to its divisibility and cost effectiveness. But while it's the most divisible way to own silver, it's no longer the most cost-effective.
By continuing to buy and hold 90% Junk Silver, supplies shorten.. thus higher premiums. Yet, Silver Rounds and Bars are filling the cost-effective gap. So, how do you best proceed if you want to add silver to your portfolio? We've laid it all out for you right here. |
First, let's go through the energy sectors. Which sector offers the biggest opportunity?
- Coal. Roughly 74% of the nation's 500 coal-fired power plants are 30 years old or more. According to the National Association of Regulatory Utility Commissioners, a coal plant's average life is just 40 years. New EPA rules will shut down close to 280 of them across 32 states over the next several years. It's not coal.
- Nuclear. Three Mile Island... Chernobyl... Fukushima... Accidents happen. Nuclear wastelands have resulted from two of them. Oh, and then there's the 20,000-year-long spent fuel problem. It's not nuclear.
- Oil. There are only 23 oil-fired power plants left in the United States. It's another dirty fossil fuel, and isn't well-suited as a power plant fuel source. The price of oil keeps going up, not down. We aren't all of a sudden going to be driving around on 29 cents-a-gallon gas like I did in my teen years. So it isn't oil either.
- Natural Gas. Our newfound wealth of shale gas deposits has driven domestic natural gas prices to historic lows. With the lowest CO2 output levels of any fossil fuel, natural gas-fired power plants are the current choice for utilities needing additional capacity. We have so much natural gas, in fact, 16 companies are lining up to build liquid natural gas export facilities. Yet surprisingly, it's not natural gas either.
What's Left?
It turns out that forecasts for the growth of the renewable sector, done in 1990, were way off the mark.
Here's what Dr. Eric Martinot, director of research for the Institute for Sustainable Energy Policies in Tokyo, said at the Pathways to 100% Renewables Conference this past April: "We're 15 to 20 years out of date in how we think about renewables. It's not 1990 anymore."
Martinot was part of a team that compiled the 2013 Renewables Global Futures report, which spent two years interviewing more than 170 experts from 15 countries and reviewing in excess of 50 scenarios published by energy companies, research institutes and other credible international organizations.
The report notes, "The history of energy scenarios is full of similar projections for renewable energy that proved too low by a factor of 10, or were achieved a decade earlier than expected."
Here's an example. The International Energy Agency's (IEA) 2000 published estimate for wind power in 2010 was 34 gigawatts (GW). It turns out the IEA was a little off: More than 200 GW was installed by the end of 2010.
Six-Bagger in Solar
SolarCity Corporation (NYSE: SCTY) is one company that's poised to exploit the growth in renewable energy. It installs solar power systems in homes and businesses profitably and affordably by providing financing for all of its customers - a radically different approach in the market.
"This gives the consumer the advantage of solar power, which is 10-15% cheaper than regular electricity," explained Ben Kallo, senior analyst at Robert W. Baird & Company. "They don't have to invest so heavily in the hardware. That easy model is getting some traction. That is probably the biggest growth area we are seeing right now."
Since going public last December, SolarCity's shares are up a whopping 257%. There's plenty of upside for the company. With panel prices continuing to drop, the company's upfront costs will drop as well. Lower costs translate into increased rates of adoption by customers.
Speaking of customers, Wal-Mart Stores, Inc. (NYSE:WMT) plans SolarCity installations on all of its Wal-Mart and Sam's Club stores nationwide. The U.S. government is using SolarCity to install solar systems on military base housing. The list of new customers continues to rise daily.
Renewable energy is the only market sector poised for explosive growth over the next decade, and SolarCity is one company within it that's well-positioned to lead the charge.
There's another company in the solar-power business that's in a similar position. Tune in tomorrow to find out more about it.
Good investing,
David Fessler
Energy and Infrastructure Strategist, The Oxford Club
| | Recent Articles:
Investment U | Standing Together: Good friends keep you upright when disaster hits. Learn how Investment U helped readers survive the 2008 crisis.
Five Bullish Forces for Gold: If gold were a rocket, it would be on the launch pad with smoke coming out of the engine. Here are five reasons The Oxford Club's Resource Strategist is bullish on gold.
| Recent Articles:
Wealthy Retirement | An "A" Rated Utility: This electric and natural gas utility has raised the dividend for 10 straight years at an average annual growth rate of over 11%.
Avoid These Income Traps... and Lock In a Safe 10.58% Annual Yield: You can own bonds in this market and you can make a lot of money, if you follow this advice to avoid the traps.
| What You Have NOT Heard Regarding the IRS
The current scandal is all over mainstream media right now; but there's a largely unreported "tax loophole" situation that hardly anyone's talking about. And oddly, it could hand you cash distributions of up to $840... $1,260... even $2,550 every 90 days... Regardless of your income level. See our brand-new video right here for all the details. | |  A 700% Dividend Increase... With Room for More | A No-Brainer Investment
What if you could buy a company that's more profitable than every one of its competitors... for three times cheaper than it should be trading?
Wouldn't you do it? Go here to find out how you can right now. | | | | |
   
– SHARE INVESTMENT U –
If you enjoy reading Investment U, why not share it with your family and friends?
Simply send them this link, so they can sign up (for free, of course).
– QUESTIONS –
Republish Investment U on your website or blog for free. Learn how.
Have a question for our editorial team? Contact us. | |
You are receiving this email because you subscribed to Investment U.
To unsubscribe from Investment U or to manage your account, click here
To cancel by mail or for any other subscription issues, write us at:
Investment U Attn: Member Services 105 West Monument Street Baltimore, MD 21201
Keep the emails you value from falling into your spam folder. Whitelist Investment U.
Email: CustomerService@InvestmentUInfo.com
Website: www.investmentu.com | North America: 855 402 3939; International: +1 443 353 4057
The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis, investment markets have inherent risks and our past performance does not assure the same future results. The stated returns may also include option trades.
Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club 105 W. Monument Street, Baltimore MD 21201. | | |
No comments:
Post a Comment
Keep a civil tongue.