
- The biggest energy crisis in modern history ...
- The opportunity to turn a modest $7,000 investment into as much as $13,626 ...
- The chance to do it all with no options ... no futures ... no borrowing, no fancy trading strategies. Just plain old stocks that you could even put in your IRA!
Dear Investor,
Today we have the biggest, most hulking, most gargantuan energy crisis ever — whacking us in the face ... right here, right now.
And ...
The mess in the Middle East isn’t going to get any better. Sadly, it could easily widen as other countries, like Syria and Iran, get in on the turmoil and disrupt oil supplies even more.
Then you have Nigeria, the world’s eighth largest exporter, where armed rebel gangs have blown up pipelines, disabled pumping stations, and kidnapped over 150 foreign oil workers in 2006. It’s gotten so bad there that companies confine employees to heavily fortified compounds, allowing them to travel only by armored car or helicopter.
Yet just when you felt it couldn’t get worse ...
So what does a strongman caudillo in South America have in common with an Islamic zealot in the Persian Gulf?
A lot:
Both regimes hate the United States.
Both regimes subsidize domestic gas prices to keep their citizens happy, putting great pressure on both governments to continually boost export revenues.
Plus, both naturally depend heavily on rising oil prices.
Oil revenues bring in about $50 billion for Iran each year. And Venezuela — the world’s fifth largest exporter — reaps $22 billion in annual taxes and royalties from the state-owned oil company Petroleos de Venezuela (PDVSA) alone.
Every dollar rise in the price of a barrel of oil
is more money in their coffers.
Nicolas Maduro, head of the Venezuelan parliament, stood beside Gholam-Ali Haddad-Adel, speaker of the Iranian Parliament, and declared:
“From our souls, we feel that our two nations are brothers and that together with other peoples we are carrying the flag of dignity and sovereignty.”
Meanwhile, Venezuelan President Hugo Chavez lavished praise on Iranian President Mohammad Khatami, describing him as:
“A champion of freedom, justice, and peace, someone who has always wanted the best for all nations.”
And these kind words aren’t coming out of the blue.
They were uttered in the context of a rapidly evolving strategic and economic alliance that includes several agreements worth $1 billion.
On top of that, the relationship deepened when PDVSA signed a deal with Iran’s state company Petropars to explore the heavy oil deposits in Venezuela’s Orinoco River basin.
The significance: There are more than a trillion barrels of crude locked up in the tar sands there in a deposit called the Orinoco Belt.
In addition, Venezuela’s government believes that Orinoco includes 235 billion barrels of undocumented recoverable deposits. If it can get that crude reclassified and added to its 80 billion barrels in conventional oil reserves, Venezuela would have bigger reserves than Saudi Arabia ... its standing in OPEC would rise ... and it could emerge as a major power in the global oil markets.
So anyone who underestimates Iran’s and Venezuela’s financial clout, their political zeal and the consequences of their actions could be making a grave error.
And with virtually no slack in global oil supply and demand (at just over 85 million barrels per day), it doesn’t take much to upset the equilibrium and send oil prices skyward.
Together, Iran and Venezuela pump about seven million barrels of oil per day. That’s about 8% of total world output, or 23% of the total pumped by OPEC. Working together they can shake the market.
Heck, they can shake the world!
That gives the Axis of Oil tremendous leverage. They can keep prices up simply by injecting steady doses of fear into the global oil markets.
For instance, during a visit to India, M. H. Nejad Hosseinian, Iran’s deputy oil minister, said crude oil prices should hit $100 a barrel this year even if nothing goes wrong.
Well, if simple supply and demand is enough to drive prices up that high, imagine what Iran’s target for oil is if things do go wrong!
If the shenanigans between Venezuela and Iran don’t send shivers up your spine ... get a load of this:
Venezuela signed an agreement to sell 120,000 barrels of fuel oil a month to China. It’s just the start. Venezuela wants to sell more — not only to China, but to all of Asia.
And China will likely buy all the oil Venezuela can pump, as China’s booming economy kicks its energy consumption into overdrive.
On top of that ... China is investing more in Latin America than any region outside Asia, according to a study by the consulting firm Booz Allen Hamilton.
But that’s just the first phase for China.
• Chinese President Hu Jintao announced that by 2014, China will have invested $100 billion in Latin America.
• Chinese companies are getting contracts to run oil fields in Venezuela, and PDVSA is buying 28 oil drills from China Petro Technology & Development, Prospecting and Production.
• And let’s not forget that China is making deal after deal with Iran for energy and weapons, too. In fact, while the U.S. has blacklisted Iran, Russia and China are busy pursuing huge deals with Tehran worth billions of dollars, helping it develop its oil and gas fields and selling it weapons.
Meanwhile, U.S. corporations are being scared off by the socialist wave washing over the region.
So there you have it: Two enemies of the U.S. — Iran and Venezuela — developing an Axis of Oil. Plus, America’s biggest political and economic competitor, China, eager to partner with them at all levels.
Bottom line: For The Axis of Oil, oil is their weapon of choice — a gun pointed right at Uncle Sam’s tender underbelly.
My view: Except for occasional corrections, oil and gas prices have virtually nowhere to go but straight up. $100 oil is practically locked in. And I wouldn’t even be surprised to see oil explode to $120.
- What if Venezuela starts selling large amounts of oil to energy-thirsty Asia, and Chavez tells Uncle Sam to go find its oil elsewhere?
- What if the showdown with Iran escalates into a shooting war, and Venezuela announces an embargo to support its “brother” nation? Is the market pricing that in?
My answers: Just the fear of these scenarios unfolding could help drive oil prices much higher than $100 a barrel. And I’m not even figuring in hurricanes in the Gulf of Mexico or potential terrorist attacks.
You could go out and buy a bunch of top-notch blue-chip oil shares. That’s easy enough. Names like Chevron, ExxonMobil, etc.
But there are two problems with that ...
First, you’d have to shell out a lot of money to buy them.
And second, in my book, the big profit potential in the energy market is in small-cap undiscovered oil and gas shares.
That’s where the real action is.
Because their market valuations are small, even the slightest surge of investor demand can send the share prices of many small-cap energy stocks flying higher than a runaway helium-filled balloon.
Consider, for example ...
- Valkeries Petroleum, a small oil company that traded its way from $1.08 to $5.70, a gain of 428%, or ...
- Transglobe, which went from 48 cents a share to $6.20, a gain of 1,192% in 12 months, or ...
- Producers Oilfield Services, which went from 35 cents a share to $8.60, a gain of 2,357%.
If you had invested $2,000 in each of these three stocks ($6,000 in all), your investment could have turned into as much as $85,540 (before broker commissions)!
You can’t go back and grab those gains, and neither can I. But I believe the small-cap energy stock boom has a long way to go and could easily provide similar, or even greater, profit potential.
Are profits guaranteed? Of course not. Small-cap stocks are risky in nature and sometimes hard to buy or sell. As with any investment, you can lose money. But considering the explosive potential in the energy markets ... you can ...
... and do it all without any options, futures or fancy strategies.
One oil and gas company I’m looking at right now is sitting on 48 million barrels of oil and nearly 1 TRILLION cubic feet of natural gas. Combined, that’s equal to about 207 million barrels of oil.
Assume the oil is valued at $70 a barrel, and you’ll see that the company’s energy resources are worth $14.49 billion. Yet the market cap of the company is a mere $1.5 billion.
In effect, its resources are valued at slightly less than 10 cents on the dollar!
Cheap? You bet it is! So cheap in fact, that if I were an investment banker, I’d buy the whole company right now — lock, stock and barrel.
I’d invest $1.5 billion to buy the company, and I’d have nearly $15 billion worth of oil and gas in the ground. That’s almost 10-to-1 leverage!
Factoring in the costs of getting the oil out of the ground and refining it, I figure the current fair market value of the company’s oil and gas resources is about 20 cents on the dollar.
If this company's shares rise to reflect that still-low level, its total market value would soar from $1.5 billion to more than $3 billion.
And that's just based on $70 oil. If the price of oil moves sharply higher, all bets are off: I think this company could be worth close to $5 billion. The $1.5 billion investment would multiply by more than 3 times over!
Needless to say, neither you nor I have the resources to buy a company like this lock, stock and barrel.
But you can buy its shares and achieve the same profit potential ...
Buy $1,000 worth of shares, for example, and if they just rise to my estimate of the current value of its resources, you could turn that modest investment into $2,000.
And if oil prices continue to soar, you could be staring at a $3,000 mountain of money!
Uranium prices are red hot, and it’s pretty obvious why: Not only is the world running out of oil, but much of the oil that’s left in the world is now caught between raging wars.
Every major energy consuming nation in the world sees this. It’s impossible for them NOT to see. So they’re aggressively preparing for the day when the wells run dry. Already, 180 new nuclear energy reactors are being built across the globe — a 45% increase over the existing number of facilities. Furthermore, more than 900 new nuclear plants are in the planning stage; so the hunger for uranium is just beginning.
That’s why the price of uranium is going ballistic on the upside. It’s soaring in anticipation, up 465% from January 2004 to December 2006.
And that’s why I’m eyeing one uranium explorer.
This uranium company has $800 million in market cap right now but, in the not-too-distant future, could easily be worth over a billion.
What I find especially attractive is the fact that its prime properties were originally staked in the late 1960s and explored in the late 1970s. Then came the Three Mile Island disaster, and all that valuable data went into deep storage.
Result: The company has now inherited a detailed treasure map to some of the richest uranium deposits in the world.
Your cost to buy into those reserves: Just 19 cents on the dollar.
I think it’s a no-brainer! Buy $2,000 worth of its shares, and you could expect as much as a 100% gain down the road, turning your investment into as much as $4,000 (before your broker’s commissions).
My third pick ...
I’m talking about an independent crude oil and natural gas exploration and production company with its primary emphasis in east central Alberta and west central Saskatchewan.
In 2006 this company’s production of natural gas and oil increased 33% over 2005. And its reserves surged, too ... up 24% from 2005.
But there’s more ...
This little gem has enjoyed 14 consecutive quarters of continuous growth. That’s not bad considering the ups and downs in the energy sector.
Now’s the time to get in on this stock before it goes gangbusters. It trades at just 6.4 times cash flow, much lower than many of its competitors. Plus it sells for just 2.5 times book and 12 times sales growth — these are great multiples. An energy company that can grow its reserves and sales won’t be trading at such low multiples for long.
For each $1,000 invested, I am looking for gains close to 100% on your money — in the next 4 months!
To sum up, here are my goals for these three small-cap energy shares ...
- The oil and gas producer trading at 10 cents on the dollar: Turn each $1,000 into nearly $2,000!
- The white-hot uranium company: Turn each $2,000 into as much as $4,000!
- The Canadian oil and gas producer: Nearly double each $1,000 you invest by year end!
Combined: Aim to turn a modest $7,000 investment into as much as $13,626!
Naturally, because these markets move swiftly, we have to adapt to the changing conditions as we go. That sometimes can mean the companies may not be the exact same ones I mentioned here, or that we may have to adjust the timing to help you get the best prices we can.
But you have three things going for you right now ...
FIRST, all of our indicators are signaling that Phase II of the natural resource boom is just beginning. The best signal is gold, which has given two major buy signals indicating more inflation is coming and especially higher oil, gas and metals prices. What’s more, a huge new demand is arising from countries like India and China. So the timing couldn’t be better.
SECOND, small-cap stocks give you extraordinary upside leverage — all the advantages of options — but without the disadvantages of expiring.
Like options, there’s no obligation beyond your initial small investment in these shares, plus any minor commissions you pay your broker.
Like most options, they’re very cheap, as little as $1 per share.
Plus, as I’ve just shown you, many of these companies are trading at a fraction of what their reserves are worth, so you get huge upside leverage.
On top of that, unlike options, there’s no expiration date. You can hold them as long as you want. Provided the company remains solvent, no one can place a time limit on your opportunity.
But these stocks move fast and they’re not that liquid. So latecomers often wind up overpaying, or, at best, missing a substantial portion of the opportunity.
In addition to getting the recommendations on these three energy stocks that could turn a $7,000 investment into as much as $13,626 ...
First, we will immediately send you the Operating Manual for the service, designed to give you a broad understanding of the big picture plus all the specific details you need to help maximize your chances for success.
Second, you’ll get 15 to 20 recommendations per year — all undervalued, undiscovered small-cap energy and natural resource companies that have the potential to multiply your money many times over. Just like the three I told you about earlier.
But don’t let the name of my service fool you. Although the concentration is in Canada, wherever we see major profit opportunities — be it Brazil, Argentina, Australia or right here in the U.S. — we’ll be hopping on them to help you maximize your profit potential.
Third, you’ll get special opportunities — companies we feel could pop any second and give you nice profit potential over a few weeks time.
That’s in addition to the core portfolio, which is designed to help you take a small hoard of cash and turn it into a mountain of profits.
Most important, you get a three-year membership. We feel three years is what’s needed to maximize the profit potential in these companies.
But we also know that three years can be a big time commitment. So here’s what we’ve decided to offer you:
Join now at the regular annual rate of $5,000 and get an additional two years free! You save $10,000 off a normal three-year subscription rate!
Plus, you get our iron-clad guarantee: If you’re not satisfied with the service — for whatever reason — you can contact us at any time and cancel the service. We will immediately give you a pro-rated refund on the unused portion of your membership.
#1. The service is capped at 750 members. There’s no room for more than that, based on the volume and liquidity of the small-cap shares we’re targeting. It’s an exclusive club of investors who recognize the profit potential and want to be in on it early.
So the sooner you act, the better.
#2. The membership term is three years. We feel that’s needed to maximize your profit potential.
With some stocks, we could cash out a lot sooner. Plus, we will be continuing to issue new recommendations as we move along. But as we see it now, the time horizon for our core recommendations is about three years as this phase of the energy and natural resource boom unfolds.
To get on board ... to secure your membership ... to be positioned to jump on these three recommendations and the potential to turn $7,000 into as much as $13,626 ...
Call us at 1-800-400-6916 and be sure to mention your personal code of P509-73051. Or you can order online at our secure website.
Yours truly,
Sean Brodrick
Editor, Red-Hot Canadian Small-Caps
P.S. The second phase of the energy boom is here ... right here ... right now. So please don’t hesitate. Each moment you delay could mean missing out on hundreds or even thousands of dollars.
Plus you have absolutely nothing to lose and everything to gain. I give you my personal guarantee that if you’re not satisfied with the service — for whatever reason — you can cancel the service. And we will immediately rush you a pro-rated refund on the unused portion of your membership. No questions asked!
- The biggest energy crisis in modern history — is about to hit us!
- You have the opportunity to turn a modest $7,000 investment into as much as $13,626.
- All with no options ... no futures ... no borrowing, no fancy trading strategies. Just plain old stocks that you could even put in your IRA! Here’s what to do ...
Dear Sean,
I’m with you all the way! I see the huge profit potential in these small-cap energy stocks that could soar during this next phase of the oil and gas boom. For instance ...
That oil company trading for just 10 cents on the dollar. What a steal! Count me in on buying its shares!
The uranium explorer that holds a detailed treasure map to some of the richest uranium deposits in the world.
My cost to buy into those reserves: Just 19 cents on the dollar!
A tiny Canadian oil and gas producer that could double my money in the next 4 months!
I recognize that small-cap stocks are aggressive investments, you can’t guarantee profits and that losses are always possible. But I LOVE the fact that we can aim for these kinds of profits without using options or futures contracts. I get a three-year subscription for the price of one (and a subscription guarantee to boot!).
Plus, to save me time and trouble, you’ll automatically renew my membership before it expires until I tell us to stop. That way, I’ll never have to worry about renewal notices or missing a single reco!
Sign me up for ...
Three years for the price of one. I pay $5,000, and I save $10,000 off the regular rate.
Click here for our terms & conditions.
Red-Hot Canadian Small-Caps
15430 Endeavour Drive
Jupiter, FL 33478
Tel: 1-800-400-6916
Fax: 561-625-6685