 | |
| North Dakota's NEW Millionaire-Maker If you thought mountains of wealth were made in the Bakken, then check this out... A strange side effect of this oil boom is set to pay out even MORE regardless of how oil prices move. Click here now for the full story. This Bad News is Really Great News By Keith Kohl | Friday, July 10th, 2015  Many oil investors will look back at this week and say something like, “Man, that was rough.” And they'd be right... in one sense. On news of the Greek referendum, a Chinese stock market crash, and a potential Iran nuclear deal, oil investors fled for the hills as prices collapsed nearly $10, stifling what had been a steady recovery from the bear market.
One look at the chart for West Texas Intermediate over the last two months, and you could easily agree with the pessimistic investors among us that see no hope for oil. Every time there's good news, some other catastrophe kills investment, prices, and any optimism we once held. But this is just one perspective... and in my opinion, it kills your chance at real returns. I look at a drop like we had this week — heck, even the one we had last fall — and I say, “It's time to buy again.” 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. Sure, on the face of it, that's a counterintuitive philosophy. I mean, who wants to buy something that's losing value? Someone who knows the value will always go up. Plus, I also know that many other investors are fleeing oil, so in true capitalist fashion, I plan to buy up what they've left behind and sell it back to them when it's worth double what it is now. That's how investors should play this drop. I mean, it's not like Americans are going to stop buying gas-guzzling SUVs and trucks anytime soon. Besides, China is in desperate need of a recovery in its markets, and the best way for it to achieve that is through economic development, which is impossible without oil. So investors should be greedy now or lose their shirts later... It's Not All That Bad While it's easy to read something like, “Buy now because prices are low,” action is a whole different animal. When you look at that red percentage on an oil driller's stock ticker or see the chart above and the steep drop from this past week, releasing funds to invest in oil is anathema compared to our normal mode of operations. But, again, this is all about perspective. Take a look at this chart instead:
Compared to the drop last fall, the one this week is negligible. It just decreases the risk on any investment we make. And if you look at oil prices this time last year, you'll see that WTI, shale stocks, and other oil companies in the U.S. have a lot of recovery left. At this point, if you buy now, it's all about time: You buy, you wait, and you collect your money when prices recover. You'll end up collecting a whole lot of money if you wait for prices to return to early 2014 levels, too. Shale oil drillers like Pioneer Natural Resources (NYSE: PXD) are already planning more rigs for later this year and the beginning of next year. Pioneer said it will add eight new rigs in Texas in 2016, which would bring it back to the same level before the bear market. Other companies are doing the same in the Bakken, Eagle Ford, Permian, and Niobrara. Oil firms want to add more rigs now because they know they can get great prices on services, equipment, and labor while oil is down. These companies know investing low pays big dividends over time. We should replicate this strategy, especially now that oil took a few lumps this week. Advertisement Why I'm "Betting" You $1,000 This $3 company — with its incredibly disruptive technology — is shaking the industry to its core. So much so that I'm betting Microsoft, Google, or another gigantic tech company will soon buy out this small firm at a significant premium... and hugely reward early investors. If this stock doesn't either get bought out or go up 100% in value... then I'll send you a $1,000 check. The money is yours to keep. Click here to get the complete details. Deals, Rigs, and Sales Essentially, what I'm trying to say is that oil is on sale. It's like when you go to buy a car and the dealer wants to get rid of the older models before the new ones come in. You get a deal because the dealership is oversupplied with last year's model. Or when you go to a florist two days after Valentine's Day... you get a deal on a dozen roses because the florist has to get rid of them or else they'll be garbage. Right now, oil stocks are on sale. The market is oversupplied, so stock sellers are willing to give away their shares for less for whatever reason: impatience, ineptitude, lack of fortitude, etc. Now, I will issue a warning: This weekend, we could see a new Greece deal and a nuclear agreement between Iran and the United States. If so, oil prices could fall further, opening up another great buying opportunity... This is a great time to invest in oil. It just so happens I've prepared an entire report on this oil sale and how investors can make money by buying now. During this presentation, I divulge three stocks that I feel are the best value and most likely to see big gains from this downturn. One stock trades around $5 per share right now, but based on its reserves and production, it should trade around $20 per share when oil recovers. If you want to own it before that time (you should), you can learn more about it here. Until next time,
Keith Kohl A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page. Follow Energy and Capital on    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. | |
@KeithKohl1 on Twitter
No comments:
Post a Comment
Keep a civil tongue.