Sponsor

2015/07/13

$3.7 Trillion Investment

Evidence suggests that coal  mining has been around for thousands of years...
Having trouble viewing this issue? Click here.
Refer a Friend to Energy and Capital.

Urgent Opportunity: Tiny $1 stock about to go vertical

A critical announcement on August 31st could send a virtually unknown $1.00 stock soaring 100-fold.

But this play is already moving — and moving fast — for reasons you can see here.

This year, it’s already up over 50%.

Soon, it'll be too late.

Please hurry now, or you’ll miss out on a real shot to retire rich in 2015.

Click here to get started.


$3.7 Trillion Investment
By Alex Martinelli | Monday, July 13th, 2015
Alex Martinelli

Evidence suggests that coal mining has been around for thousands of years.

In China, coal has been mined — primitively at first — since 3500 BCE, while in the Americas, the Aztecs used coal for fuel.

The Romans and Greeks also used coal for fuel and metalworking.

But it wasn't until the Industrial Revolution began in the 18th century in Britain that coal became the most important natural resources the world had ever seen.

The use of coal in steamships and locomotives created the fastest international trade to date and ushered us into the globalized economy we have today.

SteamLoco

Of course, the 20th century transformed coal power from a godsend to a pariah as concerns grew around the smog and carbon emitted from smoke stacks.

Trillions of dollars have been invested in the coal industry over the last few centuries, and for a long time, coal miners and utilities have benefited on the open market.

Recently, though, coal has become the last thing investors want to buy, as prices for coal stocks of all stripes lose value by the day.

Advertisement

Another "Bakken Bomb" Goes Off

On February 16, a massive Bakken crude oil train derailed and exploded in West Virginia.

The violent blast destroyed a home, leaked countless gallons of oil into a source of drinking water, and caused 1,000 people to evacuate.

Just two years ago, another "Bakken Bomb" crashed and exploded in Lac Mégantic, Quebec, killing 47 people and destroying a small community.

These and multiple other crashes have prompted regulators to crack down. And when they do, investors in one small company will see a financial windfall.

If you play it right, this stock could hand you a payday of $35,465 within a year.

Here's everything you need to know.


With an increasingly powerful environmental movement that sees coal as a detriment to the air we breathe and global temperature averages, governments throughout the world are working to transition from coal power into renewable fuels and natural gas.

Later this year, from the end of November and into December, world leaders will meet in Paris to negotiate a global climate treaty. The goal of this is to force nations all over the world to develop plans to lower greenhouse gas emissions enough to keep temperatures from rising any more than two degrees Celsius above pre-industrial levels.

Of course, many liken this to driving 100 miles per hour in the fast lane and trying to cut across five lanes of traffic to make it to your exit... not impossible, but drastic and, quite possibly, dangerous.

For a long time, the dangers of transitioning out of coal so quickly were economic. Coal is cheap, and renewable energy, still new, hasn't been for a while.

But that's all changing...

Renewables Are Cheap(er)

According to Bloomberg and its energy research team, the cost of solar power is crashing and will continue to do so for a while.

Over the next 25 years, the cost of utility-scale solar will be halved as new research and technology promotes more efficient generation and storage.

Even in China, where coal has fueled decades of economic growth, solar and wind will be cheaper than coal and natural gas:

SolarCostChina

Over the next 35 years, solar and wind costs will dive lower than fossil fuels on a per-megawatt-hour basis in China and throughout the world. Right now, these renewables are more expensive without subsidies, but with a new climate agreement on the way, don't be surprised to see even cheaper wind and solar.

Also, as these new forms of energy shed prohibitive costs, the potential for stranding natural gas and coal resources grows.

If solar and wind are less expensive than coal and natural gas for power production, you can kiss any investment in those fuels goodbye. Companies invested in fossil fuels would go bankrupt, and old power plants would be shuttered for good.

While this may give you pause, remember that it will take a long time for this to happen, and it's important to get invested in the right energy now.

Advertisement

Time to Buy This...

The time to buy an oil or gas company drilling in a new shale formation is when:

  1. Production is just starting;
  2. Initial wells are showing great results; and
  3. The mainstream investing public knows very little about it.

There's a new $1 company in the historic Petroplex formation that meets all three of these conditions.

With nearly 20,000 acres of land and great initial results on its horizontal wells, it's only a matter of time before this company trades at $10.

Click here for the ticker symbol.


Solar and Wind Trillions

Between now and the year 2040, economists expect somewhere around $3.7 trillion to be invested in solar.

The renewable resource will dominate the global energy landscape more than any other fuel including nuclear, gas, coal, and wind.

RenewBoom

$2.2 trillion of this massive investment will go directly to rooftop solar. Most of that will be in the developing world, as it's simpler for smaller-scale solar to hit rooftops than for whole countries to build expensive utility projects.

Solar and renewable energy will become the market favorites for many decades as investors look for gains out of this massive cash pile.

Some of these investments are already happening, and a great way for income investors to play this trend is through yieldcos.

A yieldco, like an MLP, is a company created to generate predictable cash flow from long-term operated assets.

As an example, a solar company has four massive utility plants already contracted to provide energy for the next 20 years. The company won't need any financing for expansion, so it “sells” these assets to its yieldco, and that company manages maintenance and the collection of payment.

For this reason, yieldcos pay great dividends and also have the opportunity for capital gains as the parent companies develop more assets.

One worthwhile yieldco is TerraForm Power, Inc. (NASDAQ: TERP).

The company has a large portfolio of solar and wind assets provided by industry leader SunEdison (NYSE: SUNE), its parent company.

TerraForm trades around $40 per share and pays a 3.3% dividend — not the highest yield you'll find in the industry, but a nice sum compared to most solar and renewable companies.

Of course, a yieldco is just one way to play this coming bull market. Over the next few months, we'll be showing you plenty of ways to invest in renewables and make a lot of money.

Good Investing, 

alex-martinelli-signature

Alex Martinelli

With an eye squarely focused on the long-term, Alex Martinelli takes the art of income investing to a higher level within the energy sector. His research has helped hundreds of thousands of individual investors identify well established companies that have a long history of paying out dividends to their shareholders. For more info on Alex, check out his editor's page.

I liked this article | I did not like this article
Follow Energy and Capital on facebook logo twitter logo google plus logo
The Bottom Line

This email was sent to ignoble.experiment@arconati.us . You can manage your subscription and get our privacy policy here.

Energy and Capital, Copyright © 2015, Angel Publishing LLC, 111 Market Place #720, Baltimore, MD 21202. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.

Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.

No comments:

Post a Comment

Keep a civil tongue.

Label Cloud

Technology (1464) News (793) Military (646) Microsoft (542) Business (487) Software (394) Developer (382) Music (360) Books (357) Audio (316) Government (308) Security (300) Love (262) Apple (242) Storage (236) Dungeons and Dragons (228) Funny (209) Google (194) Cooking (187) Yahoo (186) Mobile (179) Adobe (177) Wishlist (159) AMD (155) Education (151) Drugs (145) Astrology (139) Local (137) Art (134) Investing (127) Shopping (124) Hardware (120) Movies (119) Sports (109) Neatorama (94) Blogger (93) Christian (67) Mozilla (61) Dictionary (59) Science (59) Entertainment (50) Jewelry (50) Pharmacy (50) Weather (48) Video Games (44) Television (36) VoIP (25) meta (23) Holidays (14)

Popular Posts