an extreme perspective regarding oil and stock investments from Bob Czeschin, in alliance with my "Scientific Investing" newsletter (not the main guy, got common publisher) ---------------- Dear Subscriber:
The Middle East is boiling over: After weeks of hostility between the Jews and Muslims, Palestine and Israel are on the brink of a holy war. The Palestinian's have declared a "day of rage," Israeli outposts are taking fire from snipers, and tanks are shelling Palestinian cities.
The violence is already beginning to spread. Terrorists have blown up the British Embassy in Yemen. A few miles away, another terrorist bomb ripped a 20-by-40 foot hole in the U.S. guided missile destroyer USS Cole. Clinton went on TV vowing to "hold accountable" those responsible. The last time he "held accountable" terrorists, after Osama bin Laden bombed a U.S. Embassy, he launched 100 Tomahawk cruise missiles, obliterating a pharmaceutical factory and scattering the streets with dead bodies. Precisely the sort of thing that will make a small war blow up even bigger.
All this is happening near the entrance to the Red Sea -- a strategic choke point through which all Mideast oil bound for Europe must pass. There are already mass demonstrations all over Europe protesting high fuel prices when oil was trading for $30 a barrel. What's going to happen with oil at $40, $50, or even $100 a barrel?
Oil hit $37 on the news of the USS Cole explosion -- and I think it's ready to go much, much higher. Indeed ...
Casper Weinberger, Secretary of Defense under Ronald Reagan, agrees. He thinks oil is going to $100 a barrel
OPEC decided to trim its production by a whisker this year and oil prices exploded from $11 to $30. If oil can nearly triple on that news -- in peacetime -- what will happen when we have a real shooting war with massive casualties on all sides?
Casper Weinberger, former Defense Secretary for the Reagan administration, is as alarmed about the possibility of Mideast war as I am. In his book, "The Next War," he warns that an interruption in Persian Gulf oil supplies, which will almost inevitably occur in a Mideast War, will push oil prices to $100 per barrel. I think it's entirely likely.
In the Gulf War, oil prices doubled in the blink of an eye. During the Iran-Iraq war, they quadrupled. Ditto for the Yom Kippur war back in 1973. The fact is if the Israelis and the Palestinians go to war and other Arab states come to Yasser Arafat's support -- oil is going to double, triple, or quadruple again.
Recommendation: Get into oil companies with reserves outside the Middle East -- the farther away the better
Any hint of turmoil anywhere in the Mideast automatically makes oil reserves in politically stable countries extremely valuable.
That's great news for Anadarko Petroleum -- which has 1.9 billion barrels of oil and gas reserves in Kansas, Oklahoma, Texas, the Gulf of Mexico, the Rocky Mountains, and Alaska. Outside the United States, the company also has exploration and development projects underway in Canada, the North Atlantic, West Africa, Guatemala, and Venezuela.
And Anadarko has one of the most impressive reserve replacement records the industry has ever seen: every year for the last 19 consecutive years, it has found new reserves equal to or greater than its current production. And it has done so at costs that are consistently below industry averages.
Anadarko Petroleum is listed on the New York Stock Exchange (trading symbol: APC; recent price: US$73; www.anadarko.com). I recommend it for immediate purchase.
My second recommendation is to re-establish your position in BJ Services, which is one of the top oil services companies in the world. Any oil shock in the Mideast will set off a mad scramble to find oil in the United States, and Houston-based BJ Services is perfectly positioned to cash in on a domestic exploration boom. (Trading symbol: BJS, recent price: US$59. Check their web site at www.bjservices.com) Sell your shares of TGS to make room.
My third recommendation is ...
If oil and energy shares can make you rich in a Mideast war, the penny oils can make you ten times richer
With OPEC squeezing the western world by the nuts, a holy war in Israel, and U.S. warships being blown up off the coast Yemen, the opportunity in oil and energy shares couldn't be better. Indeed, you're doing great in your Oil & Energy portfolios. But the shares I've been recommending in my penny oil newsletter are doing five, even ten times better. These tiny, thinly-traded shares are going through the roof.
Look at it this way: The average stock in the Oil & Energy Growth Portfolio is up 31%. In a period of time when everyone else is losing money hand over first, that's very good indeed. But the penny oils are going BERSERK. The profits are pouring in -- we just took 470% profits in Westport Innovations, 608% profits in Hurricane Hydrocarbons, 156% profits in Viking Energy, and 142% profits in Key Energy Services.
And just before that my subscribers gobbled up 414% on Probe Resources and another 341% profits in Westport. Our open penny oil positions are going crazy, too, with additional profits of 100%, 113%, 122%, 133%, 304%, 493%, and 628%.
I think I make my point. These pennies are small, they're volatile, and if you get into the right ones, you can walk away with 50 or 100 times your money.
I tried to get you into my Penny Oil Speculator many times in the past, but you didn't do it and so you've missed out on all the big gains I've just been telling you about. Stop kicking yourself. Shit happens. It's not the end of the world.
But now is the absolute worst moment to not be in these penny oil shares -- because the profits ahead are going to make the ones I've been talking about look like chump change.
I've got 3 penny oils that were set to double or triple your money in any kind of market. And with the meltdown in the Mideast pushing oil prices up to absurd levels, these stocks are going to blast off like the space shuttle. The moment you subscribe to the Penny Oil Speculator, I'll fax you my special report on these little penny oils that are set to go through the roof.
Penny Oil Speculator always goes out by e-mail or fax so you get my recommendations at the speed of light. It costs $5,000 for a year's subscription, and I don't have to tell you that's not chump change. You need a good pair of cajones to kick in those sorts of dollars for a subscription.
But it's worth it -- my subscribers are cleaning up. You saw the 470% profits in Westport Innovations ... 608% profits in Hurricane Hydrocarbons ... 156% profits in Viking Energy ... and 142% profits in Key Energy Services. And that was in a rotten, crummy market with almost everything in NASDAQ or the New York Stock Exchange going south.
Now, with oil at $37 a barrel and war looming on the horizon, I think these red-hot penny energy companies can make you bigger profits than any of the ones I've mentioned. You're going to be sitting on a huge mound of money.
You also get an unconditional 60-day money-back guarantee. I'm counting on you being so deep into profits that you'd never even dream of turning the spigot off.
Yours sincerely, Bob Czeschin |