This Surprising Sector is Now Handing Investors a
Massive Upside Scenario…
It’s a Generational Buying Opportunity That Could Deliver
Life-Altering Returns What I’m about to reveal is a
fast-moving profit opportunity…
One with a proven risk-reward scenario… it plays out like clockwork every 20 years… and The Next Time… is Right Now.
As I’ll explain… this rapidly-unfolding profit scenario is the fourth massive “generational” buying opportunity since the 1970s.
Each time this happens, a consistent pattern emerges – one that savvy investors are right now poised to exploit in a huge way.
Here’s what I mean: over the last few decades, investors have been presented with three unique “generational” buying opportunities.
And these opportunities came at a time when most investors were least expecting them….
But each time this setup happens, forward-thinking investors were able to take home life-altering profits.
Right now – at this very moment – I believe another extremely rare opportunity is presenting itself right now in the stock market….
This opportunity… this specific stock, is the most lopsided risk vs reward scenario that I’ve ever seen.
Early investors have the potential to double their money in a short period of time thanks to this company’s unique story.
I’ve prepared this message to show you just how this scenario is unfolding – and why it’s critical that you take action now.
I should point out – this opportunity is coming in the oil market. That’s right – I said a profit opportunity is emerging in the oil market.
Now… the fact that you hesitated just a bit when reading those words… is actually a good thing.
In fact, it confirms the explosive opportunity of this generational buying opportunity. Nobody is thinking about Big Profits In Oil right now.
But you see… the fact of the matter is we are once again at a turning point in the oil market. I haven’t said that since mid 2014, when I started selling all my oil stocks.
And one uniquely positioned oil producer right now offers you the most compelling returns in this fast-moving profit scenario.
To be clear… I’m not saying that we are setting up for a five-year bull oil market.
I do, however, believe that the Market is ignoring some rapidly changing fundamentals that are setting up a powerful trading opportunity.
In just a moment I’ll tell you more about this specific stock – including everything you need to know in order to invest in this company right away.
But first I need to explain – via a brief historical lesson – what makes this profit scenario a “generational” buying opportunity.
Mark Twain said many wise things in his life, and here is one of the best:
Twain said, “History doesn’t repeat itself, but it often rhymes”. Those are wise words…
Because we can learn from history.
Nowhere is that more true than in the stock market. Where we see similar versions of the same thing happen….
Again, and again and again…
For those of us with experience. This isn’t a bad thing.
In fact it is a terrific thing.
When you learn from history, you profit from history. You see… most investors don’t recognize – until it’s too late to profit – when “generational” profit opportunities are unfolding in front of their eyes.
Let me show you what I mean – and how this scenario is unfolding again right now.
Generational Profit Opportunity #1 – The Nifty Fifty
In the early 1970s the brokerage firm of Kidder Peabody originated the concept of the Nifty Fifty.
The Nifty Fifty was a group of incredibly high quality blue-chip growth stocks.
The idea behind the Nifty Fifty was that together these corporate heavyweights were a fail-safe group of stocks.
No matter what kind of turmoil the market went through… these great companies would be able to weather the storm.
Included in the Nifty Fifty were great businesses like Wal-Mart, Hewlett Packard, Automatic Data Processing and Eli Lilly. Companies that still churn out cash flow for investors today.
The Nifty Fifty concept was sound. In the early 1970s, investors bought into it in a major way.
The problem was that like usual, investors got carried away.
They took a good thing way too far. In their excitement for the Nifty Fifty investors forgot about price.
Even great companies at fifty, sixty or seventy times earnings are terrible investments. Investors kept pouring cash into the Nifty Fifty at ridiculous valuations.
What came next is what you would expect.
The market, led by the Nifty-Fifty stocks, crashed.
And for the next few years, the last thing anyone wanted to buy was the Nifty Fifty—which is where we need to sit up and pay attention.
Because here is our lesson from the Nifty Fifty. When these stocks were all the rage, and the valuations on these companies were sky-high… buying Nifty Fifty stocks was a terrible idea.
However…
After the Nifty Fifty bubble popped and no investor wanted to touch these stocks with a ten foot pole… was exactly when people should have been buying Nifty Fifty stocks.
Except few people did… because it was scary to buy these stocks that had just dropped by 60, 70 and 80%.
There were few brave investors who recognized this for what it was… a generational buying opportunity.
Incredible risk vs reward opportunities existed. Investors could buy stocks that set them up for a lifetime.
Like those who bought Walmart in 1975…
and made 45 times their money over the next couple of decades.
Or Automatic Data Processing…..
Which went up more than forty times in price….
The vast majority of stock market investors were burned by the Nifty Fifty.
As a result of that nobody wanted to buy those companies after the crash. Which was a tragic mistake.
Our historical lesson from this is clear.
Tremendous bargains exist after a crash. Amongst the very names that caused investors so much heartache.
When all hope is gone… that’s when generational buying opportunities emerge. I’ve identified an opportunity today that is every bit as good as those that existed after the Nifty Fifty crash.
It is the lowest cost, fastest growing oil stock I see. And I’ll give you the name and trading symbol, risk-free.
After we take another look at a different point in history…
Generational Profit Opportunity #2 –The Technology Bust
The technology bubble of the late 1990s wasn’t exactly the same as the Nifty Fifty bubble of two decades prior.
But it certainly was very similar. Investors who learned from the Nifty Fifty experience made a killing from it.
In the early 1970s the thinking was that no price was too high for the Nifty Fifty companies. The Nifty Fifty stocks such great businesses that they would eventually make any entry price a bargain.
The thinking in the late 1990s was the same. The only difference was that it was directed at a single sector of stocks:
Technology and internet stocks. In the late 1990s it was very clear that the internet was ushering in a revolution.
Investors recognized this. They also saw that fortunes would be made from this new technology. The problem was that they took things way too far.
Just as they had with the Nifty Fifty stocks in the 1970s which traded at ridiculous multiples of earnings. In the late 1990s the bubble in technology stocks was even more insane.
People actually believed that no price was too high to pay for these tech stock darlings. They were wrong.
The subsequent fall was even more painful than the Nifty Fifty collapse.
The tech bubble started popping in 2000.
The stock price declines continued through 2002.
By 2002 very few investors had any appetite for purchasing a tech stock. Three years prior these same investors were willing to pay 100 times earnings for a profitable technology stock.
In 2002 technology stocks could be purchased for less than the cash that was on their balance sheets. Back in 1999 investors were willing to go all-in on tech stocks.
In 2002 no price was cheap enough. As you might expect with the benefit of hindsight, 2002 was a great time to be a buyer of technology stocks.
Incredible risk vs reward opportunities existed. Technology stocks such as Cisco – a blue chip, cash flowing business with a terrific balance sheet.
But in 2002 nobody wanted to own Cisco.
Cisco tripled within 18 months of the end of the tech stock bottom.
That’s a ridiculous profit for a company of this quality. The Cisco returns pale in comparison to Apple, which went up 95 times over the next decade!
The tech bubble and subsequent bust wasn’t exactly the same as the Nifty Fifty.
The types of companies involved were different – but the lesson to be learned was the same.
If you are looking for generational investment opportunities – the place to look is at the stocks that everyone else in the market has given up on.
That’s exactly what happened the following decade with…
Generational Profit Opportunity #3 – The Housing Bubble
When a certain type of stock becomes very popular – and then burns a massive number of investors – it creates psychological block for the masses. When nobody wants to own anything in a sector, that can create an incredible opportunity.
Cool, calm and collected investors can swoop in and find incredible opportunities. We saw it again in the financial sector during the Financial Crisis of 2008.
Going into 2008 everyone wanted to own U.S. housing and they wanted to own financial stocks. When everyone wants to own something is exactly when you should be getting out of it.
When the housing bubble popped, financial stocks crashed.
Investors were scarred by the experience. After the financial crisis there were few investors interested in owning these kinds of investments.
It is human nature. We are just like the cat that sat on the hot stove.
Once burned, that cat will never sit on a hot stove again… and that same can’t won’t ever sit on a cold stove either. But we don’t have to be like cats.
We are humans and we can learn from experience.
Financial stocks heading into the financial crisis were a terrible investment. These companies had balance sheets loaded with shoddy mortgages; the result of horrible lending practices.
Yet this is when most investors viewed financial stocks as being a safe thing to buy. After the financial crisis these financial companies had been recapitalized.
Their balance sheets were cleaned up with all bad assets written-off. This was exactly the time to be buying financial stocks.
The opportunity in the financial sector after the crash was incredibly compelling. Yet investors burned by the popping of the housing bubble wanted no part of these companies.
Because of that they missed out on huge stock runs like American International Group, which went from $5 per share to $65 per share…
Or Citigroup, which has had a great run up from $15 per share to $71 per share…
Because investors were burned by these names once….
They couldn’t recognize that the facts had changed. And that these financial stocks represented a generational buying opportunity.
But if you could travel back in time – you’d clearly recognize this opportunity…and you’d pounce on it. That’s precisely what’s happening right now.
A scenario is unfolding in a sector – the oil market – that investors have been ignoring. And thanks to one company in particular – a high quality stock with a distressed valuation – the next great “generational” buying opportunity is staring us in the face.
Now Is Your Chance To Put All Of These Lessons To Work –
An Opportunity Is At Hand!
Spotting a great investing opportunity doesn’t involve rocket science.
All that is required is staying cool, calm and collected, when everyone else is in mourning, after giving up on a particular sector, stock or investment type.
If we can stay cool, calm and collected, we can invest based on factual evidence—rather than make investment decisions based on emotion.
And if we can stick to the facts rather than emotion all that is required to make a great investment decision is common sense.
That is all it takes. Controlling your emotions and thinking rationally.
Common sense would have told you that buying Walmart at a single digit price to earnings ratio after the Nifty Fifty collapse was a great opportunity. Walmart the business was thriving with decades of growth ahead of it.
It was a world class enterprise being offered at a rock bottom price. Common sense would have told you that buying the world’s greatest technology companies after the tech bubble popped was a great opportunity.
Cisco and Apple were again incredibly high quality companies priced like their long term futures were in doubt. Yet few investors managed to do it.
Because their emotions did not allow them to apply common sense. Common sense would have told you that after the financial crisis was that exact moment in time that buying financial stocks was the thing to do.
In fact with cleaned up balance sheets and rock bottom valuations early 2009 represented the greatest buying opportunity for that sector ever.
Yet the very mention of the names of those financial companies caused stress for investors.
Emotions blocked rational thought. Today I ask you to take emotion out of the equation.
I ask you to listen carefully to what I have to show you.
This is the moment for you to be cool, calm and collected. Let common sense guide you.
Because a tremendous buying opportunity is at hand. And those don’t come along very often… which means that we need to pounce on them.
Now let’s get to it…
There Are A Lot Of Bullish Oil Charts – Price Just Isn’t
One Of Them… YET!
My subscriber service is called the Oil and Gas Investments Bulletin.
Yet I am far from being an oil and gas bull. I’m not primarily in the business of selling subscriptions.
I am primarily in the business of investing my own capital; my family’s capital. If my investment portfolio doesn’t perform… I’m screwed.
The OGIB portfolio is my real, hard dollar portfolio. If I’m talking about a company to my subscriber base — I own that company myself.
The reason that my service is focused on the energy sector isn’t because I believe it is a great place to sell subscriptions… It is because I believe that it is a great place to make money.
I don’t just buy and hold oil stocks, hoping oil prices stay high. I have a formula for up markets, and for down markets, and it has worked amazingly well for the last nine years.
In any business cycle, there is extreme optimism at the top and extreme pessimism at the bottom.
I launched the Oil and Gas Investments Bulletin in the spring of 2009 because I was certain an unprecedented opportunity was at hand. I was right.
Getting long oil producers in the spring of 2009 was an incredible opportunity. My subscribers and I took advantage of it.
In June 2014 it became quite clear that all of the risks were pointing in the opposite direction.
With $100 per barrel oil prices and soaring U.S. production I could not see any scenario where owning oil producers wasn’t a high-risk, low- reward proposition.
That is why my subscribers and I started exiting oil stocks in July 2014.
Since then I have made money owning other types of businesses around the energy complex—like ethanol stocks in 2013, or refiners in 2012. I haven’t been long oil stocks in any meaningful way since 2014.
This is not rocket science folks. In the spring of 2009 the downside to owning oil producers and oil was limited.
The upside was huge. In the summer of 2014 the opposite was true.
The upside was limited, but the downside substantial. Today I’ll explain that once again we are at a turning point in the oil market.
It is time to get long oil producers… specifically one uniquely positioned oil producer. Again, I’m not saying that we are setting up for a five year bull oil market.
But I do believe that everything is now set up for a powerful trading opportunity—for investors who are willing to listen to the market fundamentals.
And to act when they see a tremendous risk versus reward opportunity.
Now let me walk you through exactly what is happening.
Oil’s Imminent Turnaround: The Market Can
Only Ignore the Fundamentals For So Long
The fundamentals in the Oil Market have finally changed.
The balance between supply and demand has shifted.
And will continue to shift. The global oil glut that decimated prices is rapidly disappearing.
And that is setting up a huge opportunity for investors to take advantage. The Market is only starting to recognize what is happening.
Everyone is still buying into the consensus opinion that the Oil Market is still vastly oversupplied. That consensus opinion is wrong.
The market is not paying attention to the fundamentals of supply and demand—fundamentals which very clearly show that the oil market has gotten much, much tighter.
Nowhere is that more clear than in the distillate/diesel market in the United States. “Distillates” is a catch all phrase that means industrial fuel—like jet fuel and bunker fuel.
Distillate demand is a great proxy for the health of the American economy. Going into 2017, distillate fuel stocks in the United States were 30 million barrels above the 10-year average.
The red line in the chart below shows those 2017 distillate fuel stocks. The blue dotted line represents the ten year average level of United States distillate fuel stocks.
You can see that going into this year that distillate stocks were far above the blue dotted ten-year average line.
Look at what has happened since….
In just nine months we have gone from extreme oversupply of distillate fuel inventories—to now being undersupplied; less than the ten year average.
That is clear to see, and it has happened fast.
What is also clear to see is that distillate inventory levels are still falling. And falling at an accelerating pace!
Rapidly falling distillate stocks is not something that is just happening in the United States. It is happening all around the world.
What was once a global oversupply of distillates is turning into a very real deficit. Stockpiles at all major storage hubs have all fallen below the five year average.
That includes the United States, Europe and Singapore. To put into perspective how significant the decrease in distillate supplies is, turn your attention to the graph below.
The graph shows the change in distillate levels between December 31 and September 15 for each of the last eleven years.
Just look at what has happened in 2017.
This year has been a HUGE outlier.
Distillate inventories have plummeted. This is by far the biggest inventory drawdown of the decade.
What does that mean for oil? It means refineries will stay very busy making as much distillate as possible.
It means there will be a very strong pull on oil inventories—even in the shoulder seasons of spring and fall—to keep distillate supplies at least at the five year average.
And this is before winter arrives…
Tight, Tight, Tight
Oil Inventory Is Disappearing Everywhere
I haven’t been bullish on the price of oil at any point since I liquidated my oil stock portfolio in the summer of 2014.
I haven’t had any reason to be. The fundamentals haven’t supported it. That has now changed—finally. The oil market is getting tighter, and it is happening fast.
It is also happening everywhere. Few people have noticed what is happening.
Everyone has given up on oil and oil producers. The idea of a permanent oil glut has become consensus opinion.
An oil glut is what the herd believes.
Therefore it must be true.
It isn’t. The oil market is tightening and it is happening quickly.
There aren’t many people who have picked up on this.
But a few have. Bloomberg News was reporting in mid -September that one of the world’s largest oil storage facilities was almost empty. And that inventories everywhere are being worked down.
Specifically these reporters noted what is happening at the Saldanha Bay crude storage facility.
Saldanha Bay on the west coast of Africa is largely unknown to anyone outside of the oil trading industry.
But it is one of the world’s largest oil storage facilities, with room for 45 million barrels. For perspective consider that the main United States storage facility at Cushing holds 75-85 million barrels.
The market clearly hasn’t picked up on what is happening at Saldanha Bay. Bloomberg says the oil there is rapidly being sold; inventory levels are dropping fast. And it’s happening everywhere.
Saudi Arabian Oil Inventory Levels Have Plummeted!
Inventory levels around the world have been declining for months and months. In Saudi Arabia domestic crude stocks have declined in 16 of the past 19 months.
This isn’t something that the market is appreciating… because there is very little news coverage of what happens to inventory levels outside of the United States.
In May of this year Saudi oil stocks hit their lowest level since January of 2012. Over just the past year there has been a 30 million barrel decrease.
Over the past 24 months the decrease to Saudi oil inventory levels is 70 million barrels. That is the same as the U.S. emptying almost ALL of the Cushing storage facility.
Cushing oil storage has working storage of 75 million barrels, and about 85 million gross storage.
Where would the price of oil be if Cushing only had 15 million barrels of oil in inventory — $100/barrel? $125? The oil price would be A LOT higher, whatever the number is.
Something similar has happened with the oil that Iran holds in floating storage.
Which has been drawn down to almost nothing. Again, all these international inventory drawdowns means that Cushing oil inventories is a lagging indicator of oil prices, not a leading indicator.
Everywhere else is emptying first! That is one of the main reasons most of the Market has not caught on to what is happening in oil.
What you need to be aware of is that United States inventories are the last to come back into balance. All the media is focused on the US. That’s why the Saudis are reducing exports to the US—because the Market pays too much attention to US inventories.
This has greatly frustrated the Saudis—they see global oil inventories dropping but the oil price is not rising… yet.
Let me take your attention back to what’s happening in the US then. I already showed you the alarming drop in distillate levels in the United States, just as winter approaches.
They have dropped below the ten year average level, and are falling fast.
The same thing is happening to gasoline inventory levels in the United States. Like with distillates, gasoline inventory levels started 2017 far above the ten year average.
Now look at where they are. That red line which depicts gasoline inventory levels is about to cross the ten year average.
This market is re-balancing, and it is rebalancing fast.
Distillate inventories are down.
Gasoline inventories are down. And now I’ll show you that crude inventories are down too—by the most in the last 10 years.
An oil bear could argue that distillate and gasoline inventories are dropping simply because refiners haven’t been processing enough crude.
But if that were true… then crude oil inventories should be increasing due to the lack of refining.
But that isn’t the case.
The chart below makes that clear. Despite both distillate and gasoline inventory levels dropping, crude inventory levels have been dropping too!!!
That shouldn’t be happening—and it’s happening faster now than at any time in the last ten years.
That wouldn’t happen… couldn’t happen… unless the oil demand is far outstripping supply.
The Point Everyone Misses – It Is Essential That We Have
Inventory Levels Higher Than The Five Year Average
As humans we have all been guilty of falling in love with a favourite data point.
This involves relying too heavily on an ‘anchor’ piece of data. And then not adjusting when new data-points arrive.
Oil market participants are suffering from anchoring bias today. And it is causing them not to realize how much tighter the oil market is than the market believes.
The data that the oil market is anchored on are historical inventory levels. The oil market compares today’s level of inventory to those of five years ago when considering whether are not we are oversupplied.
If those inventory levels are higher today than five years ago, the oil market concludes that the oil market is oversupplied.
There’s One Big Problem with this line of thinking: Today the world is consuming 7 million more barrels per day of oil than it did five years ago.
Daily oil demand has been growing significantly in recent years.
Over a full year that 7 million barrel per day increase in demand… equates to the consumption of an extra 2.5 billion barrels of oil per year.
That’s a BIG increase in the amount of oil that we should have in inventory. It clearly makes sense that we need a lot more oil in storage now to provide sufficient inventory cover.
We’re using so much more oil now, so we should have so much more inventory — way above what the 5 & 10 year averages are.
That’s a no-brainer to me. But we are about to drop under these averages, and decreases have been accelerating.
It all paints a very bullish picture for oil — finally.
Global Demand Blows Away Everyone’s Expectations
I admit it — even I’ve been caught up in the hype.
It is hard not to get excited about the huge potential of Electric Vehicles (EVs). The reality is however that potential is still the key word.
Because as of today the electric car has had no impact on global oil demand. Seriously… none!
In their just released monthly report, the International Energy Agency has once again increased their estimates of global oil demand. For the second quarter of 2017 global oil demand increased at a stunning pace.
Year on year, global oil demand grew by 2.3 million barrels per day. In just one year!
To put that in perspective…
Consider that the year on year demand increase for just this year equals half of all production from U.S. shale…. Which was supposed to forever swamp the global oil market with supply.
This kind of demand growth has caught everyone off guard. The world still has a tremendous thirst for oil.
Surprising demand is a big reason why global inventory levels are draining faster than expected.
It’s possible, even probable, that the long term impact of EVs will be huge. But at this point it is a non-factor in the global oil supply and demand picture.
It also appears that the mass transition to EVs isn’t happening any time soon.
Global energy demand for EVs has been virtually non-existent. In 2017 for every new EV that came in the road in the United States…
Americans bought 60 new gas-guzzling SUVs.
This isn’t just an American phenomenon…
In China the ratio was 30 new SUVs to every Electric Vehicle. Even in Europe the ratio was 25 SUVs to every electric car.
The oil market has greatly overestimated the impact that EVs will have on the price of oil. Over the ultra-long term the impact will likely be big.
Over the next several years there will be no impact. The Market is greatly overestimating the impact of this, what I call the “EV Trade”.
Investors are more interested in Tesla’s stock running up than they are with oil..which allows us to be able slip in and take advantage of a tremendous profit opportunity…
The kind of lopsided risk versus reward that you only find once a decade.
This is real. The inflection point that we have been waiting for in the oil market since the 2014 crash is finally here.
Now it is time for us to make the most of this opportunity.
I know exactly how to do that.
There Are Very Few True Oil Producers
The Oil Market has tightened in a major way in 2017.
Anyone looking at the data in a calm, cool and collected way can see that. Everyone has given up on the sector.
That will change.
In the short-term, market prices are set by emotions. Investors still have emotional baggage attached to oil.
And to oil producers….
So they don’t want to own either of them. Emotions can win out over fundamentals in the short term.
Eventually though, the fundamentals of supply and demand are going to win out. Oil prices are going higher.
The stock prices of oil producers are going to vastly outperform that.
Owning oil isn’t where the leverage is here. Maximizing profits means owning the stocks of the oil producers.
The share prices of these companies will move multiples of the increase in oil prices.
But this is where it gets tricky for investors — because there are very few true “oil” producers.
That sounds odd, doesn’t it? But most North American “oil” producers actually produce a lot — in many cases mostly natural gas and natural gas liquids, or NGLs.
Natural gas and NGLs have much lower pricing than oil. So most “oil” producers report a MUCH LOWER price than WTI in their financials.
In fact, WTI pricing is a fairy tale for most US E&Ps. I want pure exposure to oil prices… as much as possible.
Look at some of the North American names that you probably think of as being an “oil” producer… EOG Resources…only 56% of production is from oil.
Pioneer Resources… only 57% of production is from oil. Continental Resources….only 55% of production is from oil
This is how production from most of the major United States shale plays — including the Mighty Permian – goes. The Permian is very gassy….
It is getting gassier all of the time as the wells get older and the natural gas weighting increases.
Oil right now is a tremendous risk versus reward opportunity… it’s right in front of us…
But natgas is not where it is at.
I want simple, and big, leverage to oil. My #1 Oil Stock is as “oily” as you can get.
That is just one of many reasons that I’m so excited about this stock.
The Coiled Springs:
Compressed Oil Stock Valuation Multiples
Hope left the oil sector months ago.
The sector has had absolutely no buyers…
And plenty of sellers. Nobody wants to own the producer stocks.
I don’t blame investors for exiting this area.
It has been the smart thing to do. Hey… that is exactly what I have done for the past several years.
As you can imagine… When a sector has no buyers… and plenty of sellers….
Valuation multiples contract in a major way. That is precisely what has gone on with oil producer stocks — including the really good companies.
Companies that in a bull market trade for multiples of 8 to 11 times cash flow — are now trading for fractions of that. These companies aren’t just trading at depressed valuation multiples…
They are also being valued off lower cash flows. When you put a tiny multiple on top of small cash flows you end up with a very low share price.
That is what has made the ride down for shareholders of these companies so painful.
The good news for us is that this works the other way as well… it creates huge leverage to rising oil prices…
Multiples can expand and so can cash flows. That means any hint of bullishness coming back into the sector is going to produce some breathtaking share price moves.
It’s like a slingshot effect… bigger cash flows and bigger multiples on those cash flows. What I really love about this opportunity is that I can get huge leverage here while owning a first class company.
With the entire sector decimated I can buy the best in breed oil producer at a tiny multiple of cash flows.
Multiple expansion alone could create a double here. But that multiple expansion is only half the story… because cash flows are going to be soaring as well as oil prices rise.
That means that the bigger valuation multiple is going to be assigned to a much larger cash flow per share figure. Which as you know is a powerful combination.
This is exactly how multi-bagger returns are created. Now let me tell you a few specifics about this particular company that has me so excited….
Hopefully without giving away too much!
Here Is The Oil Stock To Own Right Now
As you have probably noticed….
The train is starting to leave the station on this oil trade…
Investors had given up on this sector. But a few are starting to creep back in.
And the initial moves of a bull market can be huge.
Investors should not miss this Big and Easy Move Up. The time to move is right now and I have the perfect company to own.
What I need to be very clear about is that I don’t own over-leveraged “hope” stories…. There are no garbage balance sheets in my portfolio.
Companies like that do offer big leverage to oil, but are risky, and volatile. This is my family’s money that I am caretaking.
I’m looking for the best risk-adjusted opportunities. Taking on risky companies isn’t how my OGIB portfolio has continued to grow through this oil crash…
I own quality… ALWAYS! I’d rather own nothing than own poor quality businesses.
I’ve been almost completely out of oil producer stocks for several years. Now I’m telling my subscribers that it is the time to buy…
And there is one company that I love best. It’s my #1 Oil Stock. I don’t believe there is any other oil producer that can match the investment opportunity offered here.
It has everything that you could ever want in an oil producer….
A company built to thrive in any oil market… Yet also us with huge leverage to rising oil prices right now.
Here is what you need to know about this company…
- Has more than 90 percent of its production from oil
- Runs its business with an extremely clean balance sheet
- Is founded and operated by a Tier One Management Team – Has a rock bottom valuation
- Owns a huge land position in a top oil play
- Has critical mass… produces over 20,000 barrels per day – Can generate IRRs of over 100% at sub-$50 oil
- Is growing by 15 percent per year while living within cash flow
The last point is the one that you must focus on.
Because it tells you all you need to know about this company. At current oil prices this company has been able to grow production….
By 15% year over year…. The impressive part of that is that it has been doing it by living within cash flow.
At sub $50 oil !!!! That is an incredible feat in a world of sub-$50 oil.
The oil price doesn’t have to go any higher for this stock to be a great short, medium and long term investment.
There weren’t a handful of companies doing that when oil was at $90 per barrel.
That is why I love the risk versus reward relationship that this company offers… To be able to grow within cash-flow speaks volumes about the core play that this company is riding….
And not only has this company been growing at 15 percent per year at sub $50 oil prices… It has been able to do it while reducing the modest amount of debt that it carries.
Yes, this company is actually underspending cash flow and growing by 15% per year. You can appreciate why I’m so excited about this company….
Because not only is it an operational phenom…..
It’s a company that deserves a premium valuation.
If you have followed me, you know two things about me: I do my research, and because for me, this is a real trade with my real money.
I have skin-in-the-game everytime. The market has valued the stock just like everything else in the sector….
And assigned a rock bottom valuation multiple to this incredible oil-focused producer…. The oil market is turning….
Now is the time to get positioned to profit from it.
There is no better company to own than this one. I see a tremendous amount of upside.
With the stability of a low-debt balance sheet and incredible oil play.
Just imagine… If this company can underspend cash flow and grow by 15 percent per year at sub-$50 oil prices……
What kind of crazy rate of growth is it capable of at $60 oil??? It is the kind of question that has me awake at night smiling…
Download my full report NOW! Get the name and symbol of this stock before it makes The Big Move!
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Yours truly,
Keith Schaefer, Editor of The Oil and Gas Investments Bulletin.
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