Welcome to the Wealth Daily Weekend Edition – our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.
Dear Reader,
I’ve got oil on my mind.
That’s because we here at Wealth Daily expect to make a killing on it… again.
A perfect storm is developing… whereby supply crunch meets record demand head on, and savvy traders like us take huge profits (more on that, below, in a note from Wealth Daily founder Brian Hicks, who’s been making everyone here in the Baltimore office re-read his best-selling book, Profit from the Peak.) And for very good reason:
- We watched oil hit $87 a barrel this week. And with higher oil demand projections coming out of the Intl. Energy Agency, tightening refinery supplies, and the whole Iran scenario, we could easily see $100 to $110 oil.
- Barclays expects crude to "flirt with $100 this year," and anticipates an average price of roughly $140 by 2015. Bank of America analysts see oil nailing $105 this year… with $150 not far behind — possibly by 2014 — thanks in part to increased demand from China and India. (China recently overtook the U.S. car market, and India has billions of people waiting to buy cars).
- Tightening refinery supplies could push up prices ahead of U.S. summer driving season. Saudi Aramco, for one, has already upped its selling prices for all crude grades for U.S. customers in April.
- Finally, there’s a housing crisis of a different color right now in North Dakota. As The New York Times puts it, it’s "A State with Plenty of Jobs, but Few Places To Live." Look for the state to bring on thousands of new workers this summer— many in the prolific Bakken formation.
Stay tuned for additional coverage in the Bakken and Canada’s resurgent Cardium oil formation.
Below are some of this week’s top-read articles from Wealth Daily and our sister publications, Energy & Capital and Green Chip Stocks. And below that is Brian Hicks’ assessment of the next few months in oil and energy. Enjoy your weekend,
John Phillips
Publisher, Wealth Daily
Two Top LED Lighting Stocks: Our Top LED Pick, Plus One Interesting Derivative Play
Energy and Capital revisits the LED technology boom and offers a backdoor trade.
IEA Raises World Oil Demand Forecast: Global Oil Demand Forecast at 86.60 Million Barrels Per Day
Energy and Capital Editor Luke Burgess explains why oil prices could hit $100 per barrel this year and how you can start profiting today.
Canadian Renewable Energy Trusts: The Easiest Way To Profit From Canadian Renewable Energy
Green Chip editor Jeff Siegel reveals another way to profit from Canada’s renewable energy agenda.
The $0.64 Company Sitting on $49 Billion Worth of Oil: How to Profit from Stalin’s Lost Oil…
Wealth Daily Editor Christian DeHaemer talks about his favorite oil stock in an interesting historical context, and explains why you should buy today.
Three Small-Cap Biotech Stocks with Potential: Wealth Daily Editor Adam Sharp explains why biotech stocks are booming, and gives readers three picks worth taking a closer look at as this sector continues to gain steam.
Delcath Surges on Phase III Clinical Data: DCTH Exceeds Clinical Trial Endpoint Expectations
Promising results from phase III clinical trials could point to a bright future for Delcath Systems (NASDAQ:DCTH).
Buy, Sell, Hold: Altria Group (NYSE: MO): Altria: One Smokin’ Hot Dividend Stock
Wealth Daily Editor Steve Christ takes a look at "Big Tobacco" and offers up a buy, sell, hold recommendation on Altria Group (NYSE:MO).
Brian Hicks here…
My long-time friend and trader extraordinaire, Ian Cooper, just gave me a stock tip he thinks will double by the summer.
When Ian talks stocks, I listen. With both ears!
You see, since February 2009, he’s picked 59 winners in his last 61 recommendations in his Pure Asset Trader service. In fact, YTD Ian hasn’t closed out a single position for a loss. Here are his 2010 closed positions:
| Company | Symbol | Exchange | Buy Date | Sell Date | Bought | Sold | Gain/Loss | |
| InterOil Corporation | IOC | NYSE | 2010-04-05 | 2010-04-15 | $69.05 | $80.00 | 15.86% | |
| Cree Inc. — exited half for 12% gain | CREE | NASDAQ | 2010-03-17 | 2010-04-12 | $71.56 | $80.32 | 12.24% | |
| Uranerz Energy Corporation | URZ | AMEX | 2010-02-08 | 2010-04-12 | $1.55 | $1.94 | 25.16% | |
| UR-Energy Inc. | URG | AMEX | 2010-02-18 | 2010-04-12 | $0.78 | $0.92 | 17.95% | |
| Basic Earth Science Systems | BSIC.OB | OTCBB | 2009-12-01 | 2010-04-07 | $0.77 | $1.12 | 45.45% | |
| Canada Lithium Corporation | CLQ.V | CDNX | 2009-11-12 | 2010-04-05 | $0.40 | $0.70 | 75.00% | |
| Lithium One Inc. | LI.V | CDNX | 2010-01-07 | 2010-04-05 | $1.14 | $1.65 | 44.74% | |
| Entree Gold Inc. | EGI | AMEX | 2010-01-04 | 2010-03-11 | $2.54 | $2.90 | 14.17% | |
| PowerShares DB US Dollar Index Bullish (UUP) June 2010 23 call | UUPFW.x | option | 2010-01-20 | 2010-03-11 | $0.75 | $0.86 | 14.67% | |
| Rockwood Holdings | ROC | NYSE | 2009-11-12 | 2010-03-11 | $22.00 | $25.33 | 15.14% | |
| Richmont Mines Inc. | RIC | AMEX | 2010-01-04 | 2010-03-11 | $3.85 | $4.11 | 6.75% | |
| PowerShares DB US Dollar Index Bullish | UUP | NYSE | 2010-01-20 | 2010-03-11 | $23.08 | $23.60 | 2.25% | |
| Rockwood Holdings | ROC | NYSE | 2009-11-12 | 2010-03-01 | $22.00 | $25.35 | 15.23% | |
| PowerShares DB US Dollar Index Bullish (UUP) June 2010 23 call | UUPFW.x | option | 2010-01-20 | 2010-02-08 | $0.75 | $1.05 | 40.00% | |
| Ultra Oil & Gas ProShares | DIG | AMEX | 2008-10-14 | 2010-01-12 | $33.60 | $37.24 | 10.83% | |
| Brigham Exploration Company | BEXP | NASDAQ | 2009-10-05 | 2010-01-12 | $8.91 | $13.40 | 50.39% | |
| Richmont Mines Inc. | RIC | AMEX | 2010-01-04 | 2010-01-12 | $3.85 | $4.80 | 24.68% | |
| Entree Gold Inc. | EGI | AMEX | 2010-01-04 | 2010-01-12 | $2.54 | $3.30 | 29.92% | |
| American Oil and Gas | AEZ | AMEX | 2009-12-01 | 2010-01-04 | $3.33 | $4.44 | 33.33% | |
| Hudson Resources Inc. – sold half | HUD.V | CDNX | 2009-11-05 | 2010-01-04 | $0.59 | $1.49 | 152.54% |
|
So he gave me the full story. And what I heard got me excited as if I were going to the prom with Hef’s girls next door.
Check this out…
Apparently there’s a new oil discovery in Western Alberta that many oil insiders think will rival the legendary Bakken in Saskatchewan. And we all know that Bakken has been a blockbuster… turning many investors into multi-millionaires.
Now you probably already know that Alberta is legendary for its oilsands. Over 1 million barrels per day are produced there. And most of that comes here to the United States.
But this new discovery is not oilsands, which is a sticky, tar-like substance that’s heavy and hard to extract and produce. No… what Ian is talking about is a discovery of light, sweet crude… the most prized oil by refiners because of its low refining cost.
The Canadian Press said on March 2010 "the region has become a hotbed of activity, as companies look to bulk up their presence in an area that holds enormous amounts of high-quality oil."Here’s what really caught my attention as an investor:
And on January 21, the Edmonton Journal was quoted as saying "Some analysts are even calling the formation ‘Alberta’s Bakken,’ comparing it to Saskatchewan’s hottest oil play in decades."
Junior oil drillers that have been there for the past couple years have finally proven there’s a ton of recoverable oil in the region. Estimates put the probable and proven oil in the formation at around 10 billion barrels.
Without going into the recovery costs and the uncertainty of future oil prices, the gross resource value of this oil in this Western Alberta play is roughly $820 billion. At today’s price of $82 per barrel, it’s a bonanza of profits for oil drillers in the region. (In a minute I’ll tell you why oil will not only remain above $80 a barrel… but is likely to touch $300 a barrel by 2015.)
With that kind of mega-value sitting in the ground… the big oil majors have been on a takeover crusade ever since the oil was proven. They’ve been buying up the junior oil drillers at massive premiums.
And to give you an idea how big this is about to become… the last 4 trades in this specific oil patch in Alberta have returned an average of 224.5% to oil traders. And that’s since October of last year.
Take a look at the charts of 2 recent acquisitions…
PetroBakken acquires tiny Result Energy… investors in Result walk away with a 400% profit!
On March 5, 2010, Daylight Resources agrees to acquire West Energy
Truth be told, it’s been the hottest oil bull market that nobody has heard about.
But there’s still time to make a small fortune in this emerging story.
There’s a tiny $3.90 oil company drilling in this oil patch in Western Alberta that could become the next big takeover target.
The company has 200 drilling locations there… and controls a massive land base of 258,500 net acres.
But the real juice came on March 22 of this year when the company announced a "boomer" well of 910 barrels of oil equivalent per day.
This immediately made this company a prized target. And it’s why Ian is so bullish on the stock.
But there’s more to this story that you need to know about.
You see, we could be facing a severe oil crisis. And if we do, oil stocks will rocket to the upside like we saw in the summer of 2008 when oil hit $147 a barrel.
Super Spike
Two weeks ago, the US Joint Forces Command released a shocking report stating that "By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day."
To give you an idea of how devastating that would be to oil prices and for the world economy, 10 million barrels is what Saudi Arabia produces each day.
So if the military’s report is correct, that would mean that daily oil production equivalent to that of Saudi Arabia would disappear off the market.
Now let me ask you this: What do you think would happen to oil prices if Saudi Arabia’s crude stopped flowing tomorrow?
You got that right, hot shot! $300 a barrel, at a minimum. Maybe even $500 a barrel.
There would be riots in the streets. Citizens and governments alike would hoard the black gold like there was no tomorrow. In the end, oil would go to the highest bidder: China and the U.S.
Okay, before we write this obituary, there’s a silver-lining… and perhaps a once-in-a-lifetime opportunity.
I want to explain something to you. As soon as I read the US military’s report I immediately doubled all of my positions in junior oil stocks. It’s my biggest sector position. In fact, the last time I put that much cash to work in oil stocks was in December 2008. But there’s a huge difference between Dec. 08 and now.
As you may recall, during Dec. 08 the world was enduring a gut-wrenching financial crisis… the market was getting crushed. Investors were dumping everything… and oil got as low as $33 a barrel. So I stepped in and purchased oil stocks that were selling at fire sale prices.
I will admit I got lucky. My brain was telling me to be brave and buy… but my stomach was in knots. I was a nervous wreck.
Fortunately it worked out.
But my point is… I was following the aged-old market rule to buy when others are fearful. I almost didn’t care about fundamentals. I was buying oil stocks that other investors were selling for any price they could get.
Today, however, I’m buying based on a potential supply-demand imbalance that could be of epic proportions.
You see, in addition to the US military’s warning of a coming supply shortfall, the International Energy Agency (IEA) released a report revising oil demand upwards for 2010.
In its April 13 report, the IEA said:
– Global oil demand will hit a record high this year, revising up consumption estimates as the world economy recovers from recession.This is huge.
– We are raising our forecast for world oil demand growth this year to 1.67 million barrels per day (bpd), up 100,000 bpd.
– World oil demand will reach an average of 86.60 million bpd this year, up from 84.93 million in 2009.
– The previous record high for world oil demand was 86.5 million bpd in 2007 before the onset of the global financial crisis and economic slowdown.
It’s the perfect storm if you’re an oil trader. Supply is falling at a time demand is rising.
And that’s why Ian is all over this trade. It’s a slam dunk.
Maybe that’s why Ian’s track record is the best in the business. He only trades "sure bets." And the proof is in the pudding: Out of every 10 trades he’s initiating, he’s closing out 9 with a profit.
He’s quickly becoming a legend in the stock market. In fact, seasoned floor traders and stock chart analysts from Wall Street to London… to as far away as Hong Kong… read and act on Ian’s market commentaries on a daily basis. He’s the trading guru the professionals follow.
And with good reason.
His track record and trader testimonials speak for themselves.
Check this out…
- Ever since Ian has taken over Pure Asset Trader 30 months ago, he’s experienced only one month that didn’t make a profit for his readers (and that month was October 2008, when the market crashed)
- Since Feb. ’09, he’s been nearly perfect… producing 59 profitable trades out of 61 recommendations. That’s a winning percentage of 97%!
- And between November 2007 and today… he’s initiated 147 trades, of which only 20 were losers!
- To all at Angel Publishing, I have to tell your skeptics that in the last 30 days I have made $16,000 dollars using one of your products… Pure Asset Trader. The returns are tremendous to say the least!! It’s great getting up at 6:30 am and watching my portfolio grow all day long by $500 per day. I have been out of work for 2 years and can now hold my head up again and better yet, pay my bills!! Thanks You guys are on it!! -Curtis S.
- Pyllis writes in: Hello, I am new to your publication and took on a jblu position as you recomended. I made some very strong gains. THANK YOU!!!
- And Russ. H. says: Great trading service! I pulled a double out of Hudson Resources on half my position. You guys make The Fool Brothers, Navellier, et al look like crap! I guess it’s because you specialize, and love what you’re doing.
Now, Cooper is going after one of the hottest — and least known — oil plays in North America.
Since the end of 2009, this oil formation in Western Alberta has produced profits like 114% in Vero Energy… 140% in Enterra Energy… 543% in Result Energy (this occurred between Nov. 09 to January 2010!!!)… and 101% in West Energy.
On Monday, April 26, before the market opens, Ian will release his trade report on the tiny $3.90 junior oil driller that could become that next takeover target.
If you want to receive this trade early Monday morning, I highly urge you to get on the list of Ian’s Pure Asset Trader.
And as always, you are protected by an iron-clad, 30-day full refund guarantee. So you have nothing to lose… except the profits this $3.90 oil stock is about to make for traders like you.
Profitably yours,
Brian Hicks
P.S. You still have time to get in on Ian’s 23-double digit winner Natrona Challenge, too. Click here for more information.
