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Real Wealth #184 07/09/2008 157% Profits While the Down Jones fell 12.4% in the past ll months!Dear Subscribers,
There are an awful lot of people betting against higher energy prices right now. Fears of a recession and new highs in the price of oil have been hitting our favorite oil and energy stocks hard. This is a short term event.
These dips are presenting excellent entry points for these stocks and in the days and weeks ahead we’ll be taking of some of our covered call hedges and making new recommendations. The key thing to keep in mind, when you turn on the television set and hear predictions of $75 oil, is the energy crisis is a long term event, and while we may see pull backs in the price of oil, longer term it’s going to trade between $90 and $200.
The supply demand situation cannot be reversed. Demand is high because of the growth of
As the world economy picks up and climbs out of this slowdown, the pressure on energy prices will be impossible to talk down because of the above statistic. This will bring a key change in the psychology of investors.
The change: Investors will see oil and gas companies as resource stocks and not earnings stories. Companies with large reserves like APC – NYSE that possesses $200 billion in proven reserves and over $400 billion in probable reserves (assuming ONLY $100 per barrel) will be the big winners.
Right now APC is trading at under $70 with a market cap including debt of less than $34 billion. So essentially, even figuring debt and oil at just $100, the company has proven assets of $200 billion and may have $700 billion. The same situation exists with OXY, DVN, APA and others in this energy sector.
Some time in the next 12-48 months, this will hit Wall Street’s “experts” right between the eyes and we’ll see the P/E of 11.3 swell to 15, then 18, even 20, all because the psychology of seeing these as earnings plays will give ground to the recognition they are really resource plays. By the way, I have no doubt that we are going to see several spikes in oil well above the $150 level and perhaps a spike to $200. That’s why I have been pushing subscribers to sign up for my Gold and Energy Options Trader.
Bottom line: I’ve built an option service that is already piling on huge profits that cost just $99 a month or $995 a year. Yet despite cumulative profits of 157% in the past 11 months (while the Dow Jones was down 12.4%) this amazing little service has its biggest pay days ahead -- BOTH – on the long and short end of the energy and precious metals sectors.
We’re about to make several very important trades and just recommended an options trade on Anadarko Petroleum (APC-NYSE) that should give subscribers a nice pop...Which perhaps on 5 to 10 contracts will be enough to pay for the service for 1 even 2 years! No guarantees, of course, but please consider my track record. Subscribe immediately and give my Gold and Energy Options Trader a try. The profit I believe I’m going to pile on can turn this oil crisis into steady profits for your portfolio.
Imagine going to the gas station and laughing at $7.00 a gallon gas. Using the leverage options offer, you just might be the only person capable of laughing at the pump.
Subscribe immediately because the new trade recommendations will start pouring out over the next 14 to 20 days. Sign up by clicking here...
Gold and Energy Options Trader
Or Call 1-800-819-8693.
Sincerely, James DiGeorgia Please see risk disclosure link below. |