Hi Kemble:
Its time to get ready for the next stock market boom.
They are not making any more beach front property and oil fields. Economy is zooming along.
The effect of Bush's tax cut are not so obvious in Michigan, hidden by too many trees. And Unions keep forcing companies to leave. People there are happy hunting and fishing, driving new Suv's.
Different here in Texas , where you can see for 40 miles around.
Houses being build around here are three times as fancy as they were a few years back, traffic on I-20 has doubled or more. I'm 40 miles west of Ft Worth and the big ranches are being divided. Gas pipe lines going in all over the place, 24 inches and on down before they have to pay too much for right of way.
There is gas in these hills, the Barnett Shale which covers more than 7 counties. I'm surrounded by new wells and just one company plans to drill one new well per month per rig ( 19) for the next two years.
There is room for 40,000 wells in this formation but 4000 would probably a better estimate.
Brokers are late to recognize this is like Signal Hill, since they are pushing hot and famous tech stocks.
Its like the gold rush, but black gold.
They are just now beginning to catch on to how much development is occuring in this industry. With a potential for $80 oil.
In Summary:
I don't make many predictions here, but I think we have an excellent chance in todays energy markets to take a risk
and make some big money. I'm planning to make some big bets using ten cent stops. Stocks like XTO, XEC, CKE,- that category.
XTO the next Dell???
Regards
Sig |
