Yesterday was my first day back in the Angel Publishing offices in lovely downtown Baltimore…
I’ve spent the last ten days lounging on an Amelia Island beach with my two kids and 10 other family members.
Amelia Island is the first barrier island in Florida and the last of the string of barrier islands that starts with Isle of Palms in Charleston, South Carolina, and includes Hilton Head and Jekyll and Cumberland Islands in Georgia. These island beaches are among the best beaches in America.
As a kid, I spent summers on Isle of Palms, when the island was still half wilderness. My mom has lived on a deep water marsh on the Georgia mainland by Cumberland Island for the last 25 years, and my brother and his wife were married on Amelia Island seven years ago.
The main town on Amelia Island is called Fernandina Beach. It’s home to one of the best seafood stores I’ve ever found. It’s called Atlantic Seafood, and it sits right at the marina at the west end of town. They buy fish right off the boats, which is rare these days.
Last year, I grilled a whole 11-pound grouper that cost me just $80 bucks. This year, we got an eight pound filet off a 15-pound red snapper that had been out of the ocean for just a few hours.
Today I am suffering post-beach vacation syndrome, which means I really just want to sit here and drink a beer.
I promise, I have a point to all this…
A couple days before I left town — on July 23 to be exact — I advised Wealth Daily readers to buy the newest Bakken oil company around $0.46 a share.
(I would have reiterated that recommendation last week, except I was, well, you know…)
Last week, those shares traded down to $0.41.
Yesterday, those shares ramped 16% higher to $0.54.
You could have made as much as 31% in just the last two weeks.
Not bad. But there’s a lot more to come…
I think there’s a very good reason these shares are moving.
And they are likely to go much higher.
Breaking News
So you know, this was a $0.73 stock back in January.
There’s no doubt in my mind this stock is going back to the $0.73 level.
In fact, I think it will be at least a $1 stock by the end of the year.
So, if you’d like a nice 50% gain from an unknown Bakken oil stock, here’s why I think it will do so well…
As I said, this company is the newest player in the Bakken Shale oil field. It holds 11,000 acres. The company has just completed two new Bakken wells. And the initial production (IP) rates were pretty good.
Over the next couple of years, this company will drill at least 17 more Bakken wells. It will be pumping 4,000 barrels of oil a day by the time we ring in the New Year.
Investing in U.S. oil companies that are drilling American fields are among the best investments you can make right now. There’s no geopolitical risk. The oil is high quality. Prices are rising. And demand will remain solid.
Oil will remain the cornerstone of the U.S. economy for decades to come.
This Bakken Player to Pay a BIG Dividend
But those aren’t the only reasons I think this $0.54 stock is headed to $1 — and beyond.
At the last shareholder meeting, a significant measure was approved: This company is about to start paying its shareholders a solid 5.8% annual dividend.
The company hasn’t officially implemented the dividend yet, but the trading action suggests an announcement is coming very soon.
In case you don’t know, there aren’t many $0.54 stocks paying dividends out there. Actually, there aren’t many $0.54 stocks that are cash flow positive.
That’s why I think you should buy this company’s stock as soon as you can.
Shares of this company aren’t going to stay at $0.54 as word about its dividend gets out.
And, in my opinion, that’s why it’s already started moving higher.
You should also know that while this dividend is a strong, immediate catalyst, this company has a lot more going for it.
For starters, there’s more light, sweet crude in the Bakken than most investors realize.
The United States Geologic Survey (USGS) recently revised its estimates of recoverable oil in the Bakken. Their “official” number is now 7.4 billion barrels — double what they thought was there just a few years ago.
Add to that the fact that top insiders of the biggest Bakken oil companies think there’s almost fourfold that amount. One billionaire CEO quietly asserts there’s 27 billion barrels of recoverable oil trapped in the Bakken’s shale rock.
In other words, any company that owns Bakken land is almost certainly sitting on a lot more oil than they can “officially” report.
That means revenues, profits, and stock prices have more upside than most people believe.
Remember, the news of this 5.8% dividend has not been announced yet.
The dividend was approved at a recent shareholder meeting, and the company has included a 2013 dividend in its most recent investor presentation. So we know it’s going to happen.
Once they share this news (and it could literally be any day now), I think these $0.54 shares will move much higher.
My colleague here at Angel Publishing, Keith Kohl, covers this stock. He expects this stock to easily trade above $1 before the year is out.
I believe him.
Heck, by the end of next year — as production grows — this stock could be pushing $2 a share. That’s good for a 334% gain.
You should know that Keith has led investors to these kinds of gains before…
Investors have banked 574% and 261% gains from Bakken oil stocks following Keith’s advice.
Don’t miss this opportunity to get into a Bakken oil company before huge jumps in production push the stock price higher.
Get the full details on this $0.54 Bakken oil stock right here.
Until next time,
Until next time,
Briton Ryle
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A 21-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He is also the managing editor of the Wealth Daily e-letter. To learn more about Briton, click here.
