The Permian Bubble is Just Starting

For the last decade I’ve spent 365 days a year focused on North American energy producers.

I read every quarterly report from my watch-list of producers.

Half of my day every day is spent reviewing conference calls and checking a half dozen or more morning energy letters from analysts across North America.

Each year I spend tens of thousands of dollars a year on the highest quality energy sector research.

Yet my list of contacts within the industry may be my most valuable asset.

What I’m saying is that at this point I rarely come across anything that surprises me.

Last month I did get a surprise though—A Big One.

I saw the flow rates from the Permian Basin DOUBLING—and all of a sudden $45 oil was not just economic for producers—it became incredibly lucrative.

I was already studying junior Permian stocks—but this new information made me re-double my efforts.

I found I wasn’t alone. What I discovered was an extremely successful and very well connected investor was loading up on shares of a micro-cap oil producer.

Legendary John Goff was not just casually buying shares of Resolute Energy, he was buying as many shares as he possibly could….as quickly as an investor of his size could.

When you are a billionaire investor you can’t just buy the number of shares you want in one day.

You have to accumulate at a pace that doesn’t disrupt the market.

In the investing world my portfolio of $2 million makes me a minnow….this man is a whale.

Despite having spent thousands of hours looking at this sector I’ve never seen an investor of this magnitude chasing a company this small.

So you can understand my excitement.

There is only one reason why a billionaire investor would be so interested in a micro-cap company—he believes it to be incredibly undervalued.

Permian Valuations Will SkyRocket

There are a lot of junior oil stocks that are Zombie Stocks—loaded with debt, and priced so low that they are already pricing in bankruptcy.

That sets the stage for massive capital gains—life changing wins in the stock market.

There is nothing I love more than getting a sniff of an incredible undiscovered bargain.

It’s the thrill of the hunt.  It’s Discovery Investing.  I love finding an investing story ahead of the Market. The only thing I love more is…profiting from said story.  And my math says I’m about to make a lot of money on this micro-cap.

As soon as I found that Resolute was being gobbled up by an investing legend I set everything else to the side, and directed all of my time towards this company.

What I found didn’t dampen my enthusiasm—it got me even more excited.

My research convinced me that the Permian is the best place an investor is likely to get multi-bagger upside over a very short period of time.

The Last Time I Came Across Something
Like This Was In 2013

After I had completed my work on this company I was certain that I had found a big winner.

I was also certain that I had uncovered an opportunity exactly like this before.

In 2013 a $30,000 per year investment service that I subscribe to, turned me onto a small ethanol producer that the market was completely unaware of.

After my independent research confirmed what the investment service suggested—my subscribers and I bought shares of the ethanol producer.

The company was Pacific Ethanol (PEIX-NASD) which I bought at $3.15 in November 2013 and sold it at $23 per share in July 2014.

I literally paid for my overpriced Vancouver house from the profits I made from Pacific Ethanol in 9 months.

Everything about the Permian juniors reminds me of Pacific Ethanol.

As you can tell I’m extremely excited about this opportunity.

I’m ahead of the crowd for sure, but I’m no longer the only person figuring out the profit potential here.

The impact of these new flow rates and fast payouts is now moving around the Market.

Time is of the essence on these stocks—because there is still huge upside left on the table.

But as the investment bankers get a sniff of the fact that these companies are in play—that upside is going to disappear quickly.

Analysts are writing reports on these companies as you read this—hoping to win lucrative investment banking services.

Opportunities like this are rare. But the Street is ignoring micro-cap energy stocks until oil is firmly over $50/barrel. That’s why the Street has not seen the value here yet.

Another reason is that the Street deals in increments; it can’t believe there are stocks that could go up 500%. Five hundred percent.

These are the BEST stocks for retail investors to play oil in the next 6 months. I believe these stocks have massive upside, even if oil does not move higher.

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