Tom Bulford, regular contributor to the daily UK publication The Right Side, shares his analysis of a company ready to cash in on the benefits of coal in the coming year.

Tom Bulford (The Right Side):

The situation that could trigger a rally in these two stocks

South Africa is desperately short of power. Although the recession temporarily reduced demand from the mining industry, power cuts are now re-emerging on a regular basis. State generator, Eskom, is simply not keeping pace with demand. With the World Cup coming to South Africa next summer this is not only a major economic problem but an embarrassment. SNRP’s anthracitic coal is ideal for burning in power stations.

It is also ideally situated because some 10% of the power that Eskom generates in the north of the country is lost in transit to the important south-eastern coastal cities of Durban and Port Elizabeth. So SNRP’s business plan involved a tie-up with AIM-quoted IPSA (ticker: IPSA) which planned to build one power plant at the site of the Elitheni coal mine and another at Coega near Port Elizabeth.

IPSA’s plans, however, fell foul of the credit crunch and left it with the need to sell off the giant turbines ordered for Coega. I understand that this sale could be close. If so, it could be a trigger point for both its shares and those of SNRP.

But SNRP is not relying on this alone.

It is already selling coal to local homes and brick makers. It has also struck a deal that will allow industrial users to clean up their environmental act by converting their boilers to use SNRP’s anthracitic coal.

But the biggest opportunities could lie in the export of coal, for which SNRP is already receiving enquiries from India and China, and in that remarkable Underground Coal Gasification technology.

Click here to read more of Mr. Bulford’s analysis, presented at Fleet Street Invest, UK.

Article first published on Today's Financial News

Clean Coal – it’s more than an advertising slogan

We got a rare glimpse of good news for the coal industry today. With word that Bucyrus (NYSE:BUCY) is shelling out over a billion bucks for a competitor’s coal operations, a new lot of profit opportunities are on the horizon.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore — (TFN): This is a big day. In case you don’t know it, my editorial duties extend over to Contrarian Profits, an outlet devoted to the growing tribe of sick-of-it-all investors that believe just about the only thing worth anything these days is gold. Of course, while the nation’s economic strength collapses, we will gladly take advantage of some of the ensuing profit opportunities.

As contrarian investors, we like hard assets, the more down and out, the better. Right now, there is no better tangible good, with a worse reputation than good ‘ole American coal. Politicians hate the stuff, factories love it and investors have yet another shot to get rich off of it.

In 2006, I was a bit of a coal industry junkie. I read books on the stuff, wrote countless articles about my research, even went on the radio, TV and the seminar circuit talking about the nation’s dirtiest fuel source.

In today’s world of “green energy” and global warming scares, coal is a nasty four-letter word. But with a couple centuries worth of the stuff buried underground, we all know that’s going to change. Come the next political campaign or environmental hype, coal will launch back into the foreground.

You know it. I know it. And the folks at Bucyrus (NYSE:BUCY) know it. That is why the heavy equipment maker is placing a $1.3 billion coal-industry bet this week.

In a move that tells Caterpillar (NYSE:CAT) and Joy Global (NYSE:JOYG) that they had better pay attention, Wisconsin-based Bucyrus is cutting a check to Terex (NYSE:TEX) in exchange for the company’s mining business.

Again, this is the kind of far-sighted, buy-when-nobody-else-will move that pays incredible dividends in upcoming years. It’s the kind of stuff contrarians dream about.

Just when the coal industry could look no worse, the sector’s biggest names move their bishops in an ever-lasting game of chess.

Today’s move is beneficial for both sides of the bargain. Terex gets a cash infusion that allows it to concentrate on its core business and Bucyrus gets a hunk of assets that allow it to up the ante versus the industry’s behemoths like Cat and Joy Global.

Here’s what you can expect out of the coal industry over the next year: more consolidation, greatly increased share price, strong demand growth, and, most importantly, better representation amongst the nation’s politicians.

Now’s the time to make your move.

*** I wish I had better news for the gold bugs. It has been dang near a month now since I said to sell the stuff and prices have gone ever since. Don’t blame me. I’m merely the messenger.

There is good news. The downturn won’t last long. It’ll be just enough to get the speculators and the hyperbolic masses off the wagon and then prices will turn north once again.

As soon as the magical metal bars are selling for less than $1050 an ounce, put in your buy orders once again. My take is we’ll see $985 by mid-January, but just in case China makes more waves between here and there, $1050 is a good entry point.

When the stuff is selling for $1250 in April and $1,500 this time next year, the cushion won’t matter so much.

Article first published on Today's Financial News

Forget Copenhagen: The coal industry is alive and well

Exxon Mobil is making big news today. What does it mean for natural gas investors? Are the bears still in charge or does this change it all?

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): You don’t become one of the world’s largest and most profitable companies by making dumb moves. Exxon Mobil (NYSE:XOM) proves it once again.

The Street is buzzing today thanks to news that Exxon is printing some $31 billion worth of new shares in order to purchase XTO Energy (NYSE:XTO), one of the nation’s natural gas producing giants. It’s a major deal that has hearts skipping across a variety of sectors.

Of course, nobody is as excited as XTO shareholders. They woke up to news of a buyout worth a 17% premium to Friday’s closing price.

Shares of the oil and gas producer slipped by double-digit proportions over the past few months as natural gas prices slide. But now that demand is rising and gas prices are following suit, Exxon officials saw it was time to make their move. With XTO prices reaching short-term lows, Exxon made its move.

What’s next?

Now that a major non-conventional gas player is making headlines, investors have their eyes on all sorts of potential buyouts. It’s almost impossible to find a company in the energy industry not trading in higher territory today.

Two stocks you will hear a lot about over the next couple of weeks are Chesapeake Energy (NYSE:CHK) and Range Resources (NYSE:RRC).

So far today, Chesapeake is up by over 6%, with shares trading close to $25.50 each. The company, with major holdings in all of the popular shale regions, has been a long-term target of buyout rumors. Maybe this time the speculators will be right.

But my money is on Range Resources. It is a major player in the Marcellus region that just happened to announce significant expansion in the area this morning. Coincidence? Doubt it. It looks more like advertising.

Range is the right size for a buyout. With a current market value of $7 billion and another $3 billion or so in debt, a buyout could come with a price tag of just over a third of Exxon’s purchase. Whoever decides to grab the company (think Shell or BP) would automatically get more than 180 Mmcf of daily gas production out of the Marcellus region.

Plenty of bears remain

Of course, this is a long-term play. With gas prices plunging to ultra-low territory in recent months, any company purchasing gas assets now has a long-term outlook. With non-conventional plays hotter than a barroom pistol, major producers like Exxon are flocking to the sector in hopes of finding larger profits than their current low-margin deepwater prospects.

For all of you fans of deepwater drilling, that is bad news, even horrid.

It means the tens of billions of dollars in exploration and development expenditures expected to roll in over the next few years are likely to stay in non-conventional domestic plays. That’s why shares of Transocean (NYSE:RIG) are not enjoying the jubilation of their onshore kin.

Of course, TFN Strategic Trader members should be celebrating the news. On Friday, I recommended they buy put contracts for an offshore drilling equipment provider. Today’s news will certainly put a damper on any thoughts of a near-term rise in share price.

If you’re looking to take advantage of the action, buy domestic drillers, especially those with shale assets, and ditch offshore gas producers and international players. When it comes to natural gas, America is king.Similar Posts:

• Gas pain: The International Energy Agency weighs in – November 5, 2009
• High fives for the bears – December 3, 2009
• Peabody Energy: Playing China’s red-hot coal Industry – October 20, 2009
• Backward logic: Demand sinks, production rises – October 28, 2009
• No bailout needed: Good news from the rags – September 29, 2009

Article first published on Today's Financial News

How to play the Exxon news

Alex Green, Chief Investment Strategist of Investment U and Investment Director at The Oxford Club, reviews energy positions – and why black gold is still the play of the day.

Alex Green (Investment U):
Some day in the future, human beings will likely colonize Mars. But if I suggested you invest in its colonization now, you’d rightly think I was a few cards short of a full deck.

The same is true of much-ballyhooed “alternative energy.”

Someday, nano-engineered solar panels and wind turbines may power the nation and the rest of the world. But it won’t be anytime soon. Today, wind and solar combined make up just one-sixth of 1% of American energy consumption.

As for the Cassandras who insist we simply don’t have any choice but to look elsewhere and that our planet is running out of oil and natural gas… well, take it with a whole shaker full of salt.

Here’s why – and how we can play the current oil and natural gas investment situation…

How to “Run Out of Oil” Multiple Times

Consider this from Pulitzer Prize-winning columnist, George Will:

“In 1914, the Bureau of Mines said U.S. oil reserves would be exhausted by 1924. In 1939, the Interior Department said the world had 13 years worth of petroleum reserves.

In 1970, the world’s proven oil reserves were an estimated 612 billion barrels. By 2006, more than 767 billion barrels had been pumped and proven reserves were 1.2 trillion barrels. In 1977, Scold-in-Chief Jimmy Carter predicted that mankind ‘could use up all the proven reserves of oil in the entire world by the end of the next decade.’ Since then, the world has consumed three times more oil than was then in the world’s proven reserves.”

The world’s population is rapidly rising, of course. And so is discretionary income. Nearly 2 billion of the world’s 6.2 billion population don’t have electricity and have never flipped a light switch.

So surely that means nuclear power is likely to play a major role in meeting future energy demand?

Click here for the rest of Mr. Green’s article on Investment U.

Article first published on Today's Financial News

Oil and Natural Gas – why they’re a good play today

How you can make steady, tax-advantaged gains on rock-solid growth stocks as the United States government heads into insolvency…

by J. Christoph Amberger

Baltimore, MD TFN: Lies, damn lies, and the pledges of politicians.

Remember when Federal Reserve Chairman Bernanke and Treasury Secretary demanded $700 billion from Congress to “bail out” the U.S. economy?

They claimed without it, America would be in recession until 2009…

That unemployment would hit an “unimaginable” 8%.

That the stock market would drop another 15%.

That was in September of 2008.

By November 2009, official unemployment was up to 10%. But according to the government’s own broadest measure of unemployment, some 17.5% of American workers are either without a job entirely or underemployed.

That’s more than twice as much as the worst-case scenario just a year ago!

The stock marked had crashed more than 40% by March of 2009.

And economists no longer are talking “recession”… but Depression.

With a capital “D”.

But the worst is yet to come…

A huge new “hidden tax” is going to squeeze what’s left of the American economy, starting in early 2010.

You see, oil prices are part of almost all goods and services in a mature economy. Every rise works like a huge direct tax increase on everything you pay for in the United States — or anywhere else in the world.

Crude oil prices have more than doubled from their 2009 lows.

But you haven’t seen anything yet.

Because demand is going bonkers!

Global demand had hit rock bottom last May… and is well on its way up again.

In fact, after falling about 10% during the first 5 months of 2009, current consumption is actually almost 5% higher than it was last year, before the first big crash. According to a recent Reuters poll of oil analysts, oil demand in 2010 will rise sharply, mainly due to growth in Chinese and Indian oil consumption.

The “consensus” opinion is that oil demand will GROW by 1.3 million barrels per day (bpd).

At the same time, supply will increase by only 800,000 bpd.

The 500,000 bpd surplus of demand over supply is expected to drain 150 million barrels out of oil inventories by the end of 2010.

Can you imagine what this will do to prices?

Oil prices may jump above $100 by late 2010 or early 2011, according to a revised global energy forecast by Bank of America-Merrill Lynch.

Spike in demand!

China is not only buying up commodities like crude oil to make use of its stash of depreciating dollars… It’s been using its huge export earnings to fuel domestic consumption.

But breakthroughs in imported technology know-how and dirt-cheap labor have combined to create one of the greatest drains on oil supplies in history: Cars made by Indian and Chinese automobile makers that retail for $2,000!

Think about it…

Right now, not even 1 in 100 Chinese can afford a car. Same in India.

Demand for cars like the Tata Nano is so high, the company had to have a lottery for its prospective buyers: By May 2009, Tata Nano had received about 203,000 bookings for its models — but the company only has capacity to manufacture 50,000 cars!

China is already the world’s largest new car market — bigger even than the United States! No wonder that since 1993, Chinese oil imports have grown by 4.3 million barrels a day! In this kind of market, there’s only one way to balance supply and demand for crude oil:

Sharply higher prices!

That’s why we’re looking for oil prices to rise all the way to between $100 to $125 by summer of 2010!

This means that all the traces of the economic “recovery” the politicians have trumpeted will be going straight down the can!

The Oil Shock of 2010 is going to unleash a second, even stronger wave of layoffs through the American economy. Millions more will lose their jobs — as the cost of goods goes through the roof!

There is no way you can avoid being hit by this.

The only way for you to make most of this crisis is securing a share of this action… and making sure you can replace potential loss of income

Like with investment opportunities that not just go up in price… but who send out a fat, juicy dividend check every quarter!

In our latest Special Report, 3 Top Dividend Stocks, for Members of our Hot Stock Confidential investment research service, we selected three of the best energy-related companies with the highest and most reliable dividend payout record around.

In fact, most of them are paying out higher dividends every single quarter, recession or not!

All of them just paid out their Q3 dividends to shareholders. That has smoothed out the current stock price.

(Typically, the underlying stock of a dividend high-roller rises considerably in the days prior to the ex-dividend date… to fall sharply as capital is withdrawn immediately afterwards.)

Dividend Cash Cow #1 is medium-size independent oil and gas company focuses on the development and acquisition of “long life” properties in the United States.

Locations include the Mid-Continent and California, with 6,716 gross productive wells and huge proven reserves (51% gas, 31% oil, and 18% were natural gas liquids). Approximately 68% were classified as proved developed.

The company has consistently increased output and reserves. Set up as a master limited partnership, it doesn’t pay U.S. corporate income taxes… and is thus able to disburse hefty dividends to shareholders. It has never missed a dividend payment!

On October 21, 2009, the Board of Directors declared a quarterly cash distribution of $0.63 per unit, or $2.52 per unit on an annualized basis for Q3 2009.

Current annual yield is 10.31%!

Sound good?

Quite honestly, out of the 3 Top Dividend Stocks we picked, this one yields the least… and is the most expensive stock!

Dividend Cash Cow #2 renders crude oil into a variety of lubricating oils, solvents and waxes for domestic and international customers.

The fuel products segment processes crude oil into a range of fuel and fuel-related products, including unleaded gasoline, diesel and jet fuel. The company also produces asphalt and other by-products.

Net growth has been incredible: For the nine months ended September 30, 2009, net income was $53.6 million, compared to $25.9 million for the same period last year. This Cash Cow reported net cash provided by operating activities of $110.6 million for the nine months ending September 30, 2009 as compared to $75.7 million for the same period in 2008.

On October 20, 2009, the company declared a quarterly cash distribution of $0.45 per unit for the quarter ending September 30, 2009 on all outstanding units.

Total yield this year has been 10.43%!

But Dividend Cash Cow #3 is my favorite. This is a financial services company that lends to and invests in middle market privately-held companies, primarily in the oil and energy sector.

Exactly those companies who’ll be squeezing every last drop of oil out of their wells as oil hits $125!

Now, this company is a closed-end investment company.

For Q3 2009, net investment income was $12.3 million, or 25 cents per weighted average number of shares for the quarter. They estimate that net investment income for the current second fiscal quarter ended December 31, 2009 will be 22 to 30 cents per share.

They’ve increased their dividend payout every single quarter!

Current yield is an incredible 14.76%. The current share price is just $11.

But before I tell you more about our 3 Top Dividend Stocks…

Allow me to introduce myself

I’m J. Christoph Amberger. The name may sound familiar to you.

I’ve been around the block a couple of times… first as editor and publisher of the trailblazing Taipan Group…  as the author of a bestselling trading book, Hot Trading Secrets… and then as the “celebrity talking head” of a financial video channel.

For the past two years, I’ve spearheaded a brand-new investing resource called TodaysFinancialNews.com and our premium investment research service, Hot Stock Confidential.

Bad time to start a business, you say?

I’d agree.

But as it turned out — there was plenty of money just waiting to be made on stocks!

Even in this extremely volatile market!

Step 1: Finding the right stocks

No two ways about it, you need to start with good stocks. In fact, you need what we call “Damn Good Stocks” to make it work.

Now, that takes some digging…

But there are still plenty of them around: Companies with good, understandable products… good management… positive cash flow and, even more importantly, a powerful catalyst in the wings.

Not surprisingly, you find a lot in the biotech sector:

Firms feverishly awaiting FDA approval for new drugs or medical devices — and with eager investors twitching to act on whatever news the company can generate.

Stocks like Cerus Corporation (NASDAQ:CERS), a biomedical company that uses an INTERCEPT Blood System to find and inactivate blood-borne pathogens in donated blood components to be used in transfusions.

This technology could truly revolutionize blood component donations!

When we first found CERS, the company had just initiated Phase I clinical trials in the U.S.

So far this year, we have officially made 20.4%, 53.7%, and 22% in our recommended portfolio on the moves of this stock. And many of our Members did even better!

Here’s what some of them had to say:

“Thanks for the CERS heads up. I just made $26K today off of CERS thanks to you.” – HSC Member S.Z. (8/19/09)

“I sold 800 shares of CERS today for a 72% profit of $1,038. The remaining 800 shares are at 63% and climbing. THANK YOU VERY MUCH.” – HSC Member T.D. (08/19/09)

“I made 72% on Cerus in 19 days. I love it. I will take that any day of the week. Thank you!” – HSC Member G.R. (8/19/09)

Looks like quite a number of them were able to turn our research into personal gains!

But it’s not just biotechs.

There are retailers… mining and commodity stocks… military contractors… alternative energy companies… all bursting with the potential to make you serious money in just a short time!

Stocks like:

Katanga Mining (KAT) — 77% gains in just 6 days!

Dynavax Technologies (DVAX) — 81% in under 3 weeks!

Seaspan Corp. (SSW) — 41% gains in under 2 months!

And Silvercorp Metals Inc. (SVM) gave us 32.4% gains in under a month!

In a way, this is the best time ever to buy stocks!

Many stocks are still incredibly cheap — at least compared to last year’s price levels.

This has lowered the amount you need to put at risk to be a serious player in this market!

And don’t forget, despite what they tell you, there’s considerable capital on the sidelines! Jittery as Nancy Pelosi on Red Bull to be sure… But ready to pour in and out on short notice whenever something positive happens!

Just look at what CelSci Corp (CVM) did in August. This was part of my swine flu vaccine shopping list on August 20, when I recommended it as a “Buy under $0.55.”

On Aug. 28, we took 70% gains as swine flu vaccine stories flooded the media… and investors followed their lead.

Step 2: Keep up with the news!

This being a volatile market, we expect that any given stock recommendation of ours spends some time underground — in the red.

It’s not that we like it that way.

But we like it even less when we have to close out a damn good stock position due to a nervous-nelly trailing stop!

Believe me, we tried that strategy. It just didn’t work!

Step 3: Be ready to strike!

Now, I wouldn’t bore you with all this if we had garnered 5 gainers for our Hot Stock Confidential subscribers this way.

Or 10. Or 15. Or even 35.

I’d be inclined to call it a fluke at 40 gainers even.

But just yesterday, we recommended a sell on the 70th double-digit gainer so far this year.

That’s right: Our “damn good stock” selection process has generated 70 double-digit gainers so far this year.

Not just 70 gains…

But gains taken.

(We have a good dozen open positions in single- and double-digit territory that we may take gains on any minute now.)

Our subscribers LOVE it!

“You guys rock. I’ve made $115K in stocks so far this year on your picks and this off a measly military pay.” – HSC Member S.Z. (07/31/09)

“You have made so many people (subscribers) happy by calling the right shots on so many stocks! I plan to be a subscriber for a long time. Thank you for helping us make money.” – HSC Member R.K. (09/23/09)

“So glad I subscribed as I’ve been making money since I did!” – HSC Member V.W. (09/22/09)

“I am very pleased with your service. I thank you for your efforts. It is sincerely appreciated.” – HSC Member N.B. (09/18/09)

Sure, we’ve struck out, too.

16 times so far this year. Which has reduced our average gain on our 87 closed positions to “only” 20.4%.

That gives us “compound gain” of 1,782%!

To be quite honest, I’m stunned myself!

In the 21 years I’ve worked for people like you, I don’t think I’ve ever encountered a publication that generated 70 winners a single year…

Not during the Internet boom. Not during the Bush boom. And certainly not in a crisis year like 2009!

So if I may qualify my position on stocks: I remain a long-term bear, thanks mainly to Washington’s agenda.

But in the short- and medium-term, I certainly see no lack of opportunity to make gains in stocks.

Substantial gains at that!

But you need to adjust your expectation level and mode of operation to the markets: Tellingly, our average holding period has been just 54 days.

And you have to be ready and disciplined to take your profits and run!

So let me tell you exactly what stocks we’re currently recommending to our Hot Stock Confidential Members in our new Report, 3 Top Dividend Stocks:

Time is ticking away…

In that new Special Report, 3 Top Dividend Stocks, I provide specific details on each company and how to best position yourself for explosive gains.

Again, that Report is exclusive to Members of our premium research service, Hot Stock Confidential.

Now, I’d hate for you to miss out on these exponentially lucrative investment opportunities — and you have to get in NOW for maximum gains!

So I’m going to make you an offer you can’t refuse.

But first, let me explain why I feel so certain you’ll want to join us…

1,772.8% in cumulative gains

That’s the amount you could have made so far this year if you’d followed our recommendations as a Member of our investment research service Hot Stock Confidential.

As I mentioned earlier, we recommended a startling 70 double-digit gainers (and 16 losers) in the first nine months of 2009 for total cumulative gains of no less than 1772.8%.

Here’s the proof…

Below is our full Closed Recommended Portfolio for 2009 — losers and all…

= 1772.8% in total cumulative gains and 20.4% average gains for each position!

And we managed to do all that in the worst stock market conditions in over 65 years!

You may have subscribed to investment research services before. But let me ask you…

Can you think of a single one that’s recommended 70 double-digit gainers in single year?

I can’t. And yet, that’s exactly what we have done.

And believe me, you’d have a hard time finding more dedicated advocates for your personal wealth creation than the team here at Hot Stock Confidential.

Each editor brings their own background, education and experience to find the best opportunity for gains for our Members.

That’s our focus… and with 70 winning recommendations so far this year, I’d say it shows.

Get started on your investment bonanza

I really don’t want you to wait — and possibly miss out on gains like those our Members have already made.

It’s imperative that you get these 3 Top Dividend Stocks in your portfolio as soon as possible, so I’m going to make you an amazing offer…

You’ve seen how much a research service could set you back — $799, $999… or even $1,899 a year.

And frequently those provide just one or two recommendations a month.

As a Member of Hot Stock Confidential, you get a bare minimum of one stock recommendation each week.

Often you’ll get more.

Don’t worry. You can pick and chose! If you want in on the action, you can put as much money into any of those picks as you can comfortably afford.

Our picks are easy to buy and to sell!

All you really need is a trading account…

Here’s what all you’ll also receive:

	Immediate access to the Special Report 3 Top Dividend Stocks, as well as our most recent Reports including The 3 Best Stocks under $3 to Buy Now, Three Proxy Stocks Ready to Soar and 3 Milestone Stocks Set to Supercharge Your Retirement Portfolio.
	Directly to your email inbox, at least one Buy Alert each week, Sell Alerts as required, and a complete Portfolio Update each Tuesday.
	Full access to the Hot Stock Confidential Members-only website with all our past Special Reports, Alerts, Weekly Portfolio Updates and our continually updated Recommended Portfolio.
	Our TFN eNews free e-letter every weekday. It’s full of useful information, free picks, and market commentary.

All for just $299 a year — if you accept this offer today!

Just $299…

That’s less than you’d expect to pay for just the 4 Special Reports — not to mention the investment recommendations you’ll receive at LEAST once a week.

Or…

If you hate getting renewal notices, you can get an even better value…

BEST OFFER: You could lock in the rate of $79 for Hot Stock Confidential with our quarterly auto-renew option.

You’ll get the hottest investment research around for just $79 each quarter — locked in at that lowest of rates! — until you tell us to stop. Look at it like this…

If you’d bought just 100 shares of our gainer CERS at our July 29 entry price of $1.90… and sold them when we sent out the sell alert — just 15 trading days later — at $2.92… you’d have banked 53.7% gains equaling $292.03.

That would have practically paid for an annual subscription — and that’s just 1 recommendation!

Still not convinced?

Boy, you’re a tough sell!

Then…

Let us earn your trust!

I’d hate for you to miss out on this opportunity. But I know times are uncertain and you’re careful how you spend your money.

I know we need to earn your trust the hard way.
That’s why I insist you take a full 45 days to put Hot Stock Confidential to the test.

If you don’t like what you’re reading during that time, you can cancel and get back your entire subscription cost.

That translates into an absolute minimum of 6 trading recommendations… on top of those we make available to you in our confidential Special Reports.

Should you decide that Hot Stock Confidential is not for you during this period, all you have to do is let us know and we’ll reimburse every nickel of your Membership fee.

If you wish to cancel anytime after the 45 days, your refund will be prorated.

That’s my promise to you.

Remember, you have absolutely nothing to lose… and so much to gain.

Become a Member of Hot Stock Confidential by following this secure link:

https://web-purchases.com/HSC/WHSCKC00/

Or if you’d prefer, call us directly at 1-877-894-3583.

Best regards,

J. Christoph Amberger
Executive Publisher
Hot Stock Confidential
December 2009

P.S. Our next stock recommendation is coming out this Thursday — don’t miss out! Sign up today! Similar Posts:

• HSC gainer #67: Arotech Corporation (ARTX) bunkers 21.6% – October 12, 2009
• Join the Party: PSC cashes out of Xenonics (XNN) for 28% gains – December 4, 2009
• HSC takes 24.7% gains on Tianyin Pharmaceutical (AMEX:TPI) – November 17, 2009
• Take 26% gains on Indian pharma giant Dr. Reddy’s (RDY) – September 25, 2009
• Will Q4 earnings boost Tianyin Pharmaceutical, Inc., (NYSE:TPI) – September 23, 2009

Article first published on Today's Financial News

Depression 2010: New Oil Shock Will Kill the American Recovery!

Natural gas prices are falling again today, thanks to word of yet another surprising injection. With inventories at 99.9% capacity, what’s next?

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): I am about as bearish as it gets when it comes to natural gas, but even I underestimated how bad the situation really is.

While most analysts were expecting the year’s first official drawdown in the nation’s natural gas inventories, I conceded and said they were right. I expected a drop in supplies of one, maybe two, billion cubic feet of gas.

Most analysts expected twice that figure as the nation starts to crank up its thermostat. After last week’s smaller-than-expected gas infusion, a withdraw this week looked like an easy call.

I was so certain, I recommended TFN Strategic Trader members lock in gains on a couple of our natural gas plays. We locked in gains of 56% by selling half of our position in one play and 50% gains by unloading another play in its entirety.

It looks like we jumped the gun.

According to the Energy Information Agency’s latest report, released at 10:30 this morning, the nation managed to produce more gas than it consumed once again.

This time last week, the agency showed a gain of one billion cubic feet. This week, the figure doubled to a weekly increase of two billion cubic feet.

Under normal circumstances, this would not be much of an issue. But the nation’s storage facilities are 99.9% full and pipeline pressures are rising as suppliers try to squeeze in as much of the fuel as possible.

So far, natural gas futures have not reacted too strongly to the news (which helps prove my theory about selling yesterday). December gas contracts are down by just $0.035 so far, which puts the price at $4.495.

How to play it

As the winter rolls on and investors and analysts finally realize this winter will be unlike any other for the natural gas market, that price will sink lower and lower.

At Strategic Trader, we continue to sit on several options contracts with January expectations. I expect prices to hit their lowest levels in the weeks directly following the New Year.

Right now, one of those contracts is worth gains of 357%, as its underlying asset hit yet another 52-week low following this morning’s data.

If you are a fan of the options market, you can read more of my strategy here.

If not, you have the option of shorting some of the nation’s largest gas producers, like Chesapeake Energy (NYSE:CHK) or Range Resources (NYSE:RRC).

And for those that remain weary of shorting the markets, there is no ETF trading on American exchanges that allow investors a pure short play on natural gas (they all include the oil industry), but there is the ETFS Short Natural Gas fund (LSE:SNGA), which trades on the London exchange.

It likely won’t lead you to triple-digit gains, but since the bottom remains well over a month away, there is plenty of room left for profit potential.

The natural gas industry is an interesting study these days. It is entirely disconnected from the broader commodities surge and it is creating all sorts of confusion.

Fortunately for us, that confusion is leading to strong, strong gains.Similar Posts:

• Gas pain: The International Energy Agency weighs in – November 5, 2009
• Natural gas hands us monstrous gains! – November 19, 2009
• Buy oil. Sell natural gas – October 26, 2009
• Backward logic: Demand sinks, production rises – October 28, 2009
• Worst-performing commodity of 2009 – November 30, 2009

Article first published on Today's Financial News

High fives for the bears

TFN’s Hot Stock Confidential team just chose Linn Energy, LLC (NASDAQ:LINE) as one of its top three dividend-paying stocks! But they only rank it third!

by J. Christoph Amberger

Baltimore, MD TFN: Sometimes it seems like dividends went out of fashion with “podcasting”. But your faithful TFN team set out to unearth three companies that are bucking the trend.

In fact, most of them are paying out higher dividends every single quarter, recession or not!

And don’t worry: The downside on the companies is actually quite manageable. Unless there’s another cataclysmic upheaval in the energy markets, you actually stand a chance to make gains on your principal as well… while you collect annual yields of 10.43%, 10.31%, even 14.76% in quarterly installments!

The challenge was to find an industry that’s still doing brisk business on rising demand. The one best positioned is the oil and energy industry. Washington may still be piddling away billions on figuring out how to power a 747 by harnessing the renewable energy inherent in butterfly wingbeats.

But the rest of the world — those countries that still are chalking up economic growth — is buying and consuming oil and gasoline like there’s no tomorrow.

We selected three of the best energy-related companies with the highest and most reliable dividend payout record around.

All of them just paid out their Q3 dividends to shareholders. That has smoothed out the current stock price. (You remember, often, the underlying stock of a dividend high-roller rises considerably in the days prior to the ex-dividend date… to fall sharply as capital is withdrawn immediately afterwards.)

I originally wanted to sequester all three picks for our Hot Stock Confidential members. But we at TFN are of a giving nature. That’s why I posted one of our picks right here at our TFN portal… yours free for the reading

Dividend Cash Cow #2: Linn Energy, LLC (NASDAQ:LINE) is a medium-size independent oil and gas company. They focus on the development and acquisition of “long life” properties in the United States.

Properties are located in the Mid-Continent and California, with 6,716 gross productive wells and huge proven reserves (51% gas, 31% oil, and 18% were natural gas liquids). Approximately 68% were classified as proved developed.

The company has consistently increased output and reserves. Set up as a master limited partnership, it doesn’t pay U.S. corporate income taxes… and is thus able to disburse hefty dividends to shareholders. It has never missed a dividend payment!

On October 21, 2009, the Board of Directors declared a quarterly cash distribution of $0.63 per unit, or $2.52 per unit on an annualized basis for Q3 2009. The distribution was paid on November 13, 2009, to unitholders of record as of close of business on November 6, 2009.

Current yield is 10.31%. The current share price is $24.42.

*** Buy Linn Energy, LLC (NASDAQ:LINE) below $25 over the next weeks, using pullbacks in the share price to stock up on your holdings.

But quite honestly, out of the 3 Top Dividend Stocks we picked, LINE yields the least… and is the most expensive stock! Its competitors yield close to 11% and 15%… and tie up far less of your capital. You see why we had to reserve them for our premium service members!

Don’t worry though… there’s still plenty of space in our membership rolls. You can get access to our two other picks — and join a group that’s generated 70 double-digit winners so far this year — simply by following this link: https://web-purchases.com/HSC/WHSCKB00/

Article first published on Today's Financial News

Linn Energy (LINE) is one of HSC’s Top 3 Dividend Stocks

Adam Lass, Editor of WaveStrength Options Weekly, reviews the place, and influence of oil and petroleum derivatives on the markets, and the modern world for Taipan Daily.

Adam Lass (The Taipan Daily):
On the surface, oil seems like it’s going nowhere… but the story is very different below the waterline.
Keeping up with crude oil is a bit of a migraine these days.

It’s an essential task, of course. Gasoline, diesel and kerosene play a double-faced role in our modern world. When we are ahead of the curve, they grease the wheels of the grand machine, allowing people and goods to freely seek their best markets.

But when we are behind the curve – when the cost of energy rises in anticipation of future demand – crude oil and its distilled children become the disease vector that allows inflation to penetrate into every little nook and cranny.

So we watch, wonder and speculate on crude oil’s every little spike and dip. “Was this crude oil rise demand driven… was that 50-cent drop related to changes in the dollar? Will it rise or fall next week… month… year?”

The Gnat’s View…

As I sit to write to you, I have the week’s summations in front of me. These supposedly represent the most complete picture we can have during the work-a-day week, as most all variables have been factored in.

From Bloomberg we learned that “ten of 27 analysts, or 37%, said that futures will drop through Nov. 27. Ten more respondents predicted that oil will be little changed. Seven said that futures will rise.”

Unimpressed? Just wait, it gets better! Bloomberg provides context for this remarkably vacuous reporting by noting that last week, “50% of correspondents said that prices would fall.”

The true beauty of that non-stance is that it was 100% correct – more or less. In New York, prices opened last Monday around $77.20 a barrel, then ran up just over $80. As I sit typing this screed, they have fallen back to $77.40.

How did those bold fellows come to nail it down so accurately? Pretty simple really. Crude futures have run nearly that exact range for the better part of the past 40 days. Clearly, there is no education to be garnered from these clowns.

A Slightly Larger Time Scale

Another report on my desk purports to take a longer view of these things. The Macquarie Group’s oil economist Jan Stuart claims that failing demand from developing countries will lead to excess inventory in the last quarter of 2009 and the first quarter of 2010. Macquarie is betting that crude will drop all the way to $60.

That made for a pretty impressive headline, all right. Except that by the end, Stuart totally hedges his bet. He figures that three to six months out, “the strengthening world economy will push it back to… (wait for it)… $80 a barrel.”

Is that why they call them “Hedge Funds?” Obviously, these guys at the banks are all playing it real close to the vest.

What’s Going On Below the Waterline…

Click here to read more from Adam Lass of Taipan Daily.

Article first published on Today's Financial News

Oil – Silent, Stealthy, and ready to Rumble

Natural gas prices continue to fall, which means those of us that saw the downturn coming are locking in strong profits. Just today, we locked in gains of 400%!

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): The folks here in the TFN office wanted me to write one of those annoying I-told-you-so articles, bragging about the monstrous gains we just locked in over at TFN Strategic Trader.

While 400% gains are worth bragging about, they do you no good unless you followed my advice. What will do you some good is an explanation of how we locked in such sizeable profits.

It is all thanks to the nation’s natural gas market. After years of working tirelessly to tap new reserves and find more efficient ways of drilling, the nation now has way more gas on its hands than it knows what to do with.

A warmer-than-usual November has added even more fuel to the sector’s implosion.

Thanks Mr. Gore!

After a sudden spike earlier in the week due to a strong move by the dollar and some wavering economic data, gas prices have continued their recent downward trend throughout the week.

This morning, all eyes were on the Energy Information Association’s weekly inventory report.

Normally, this is the time of the year when producers stop injecting natural gas into the nation’s storage wells and start withdrawing from their stockpiles. But with an economy that won’t budge and consumers putting on an extra sweater instead of ratcheting up the thermostat, there is no sign of a withdrawal anywhere in sight.

During the week of November 13 (which is the freshest data set, just released at 10:30 a.m. today), the nation put yet another 20 billion cubic feet (Bcf) of natural gas into storage.

This time last year, we put in half that figure.

But more importantly, a year ago we had just 3,486 Bcf in storage. Right now, the figure stands at a record-breaking 3,833 Bcf, 347 Bcf higher than a year ago and 419 Bcf above 5-year norms.

And here’s the real kicker. We are just about out of storage space. With 3,889 Bcf in total storage capacity, just two or three weeks with injections like we saw this week could spell disaster.

After months of denying a massive surplus, commodities traders are finally pricing in a major glut. Prices have fallen precipitously in the past few weeks, dropping from just shy of $6.00 per MMBtu to as low as $4.157 per MMBtu in early floor trading today.

Here comes the bragging

This is perfect news for TFN Strategic Trader members as I released my latest in-depth report, in which I warned against plunging prices, at almost the exact peak of prices.

In the report, I recommended four ways to play the situation.

How are we doing? Without bragging, quite well. All four picks are up by double-digit proportions. But our biggest winner surged by a whopping 400%! We sold half the contracts this morning and are now playing with the house’s money.

For the folks that took my advice, life is good today.

Feel free to read the updated report right here.Similar Posts:

• High fives for the bears – December 3, 2009
• Gas pain: The International Energy Agency weighs in – November 5, 2009
• Backward logic: Demand sinks, production rises – October 28, 2009
• Worst-performing commodity of 2009 – November 30, 2009
• Buy oil. Sell natural gas – October 26, 2009

Article first published on Today's Financial News

Natural gas hands us monstrous gains!

Natural gas funds and companies such as United States Natural Gas ETF (NYSE:UNG) and Cheniere Energy (AMEX:LNG) are bearing the brunt of a beginning commodities squeeze.

by Andrew Snyder

Baltimore, MD TFN: Today, the equities market is taking a step back after disappointing housing figures show a recovery may not be as quick as many investors had anticipated.

As for the value of the dollar, we’re may see signs of a turnaround. As Obama pleads with China and Washington begins to pretend it cares about debt control, the dollar has had trouble eclipsing the $1.50/euro mark.

That’s bad news for the commodity bulls.

If you have been watching the natural gas markets, you know which way the trend is headed. With the exception of a one-day turnaround on Monday, prices continue to sink lower and lower and lower. So far today, gas prices are off by close to 5%.

On Monday, we gave back some ground, but almost all of our natural gas positions have recovered. As I write, the United States Natural Gas ETF (NYSE:UNG) sits at $8.98, just a few cents away from all-time lows.

Our corresponding put options are now worth gains of 342%! We’re getting close to taking our profits on this one. If we hit the 400% gain level once again, I will reevaluate the situation and send you an update.

Our other three related plays are up by 33%, 15% and 33%, respectively.

Keep a close eye on Cheniere Energy (AMEX:LNG) as it hovers around the $2.00 mark. We broke the key resistance level last week and need one more breakthrough for this one to really plunge.

Continue to hold all four natural gas plays… we remain steadfastly bearish on natural gas and its associated industries.

Article first published on Today's Financial News

Natural gas: The bear market continues… to the tune of 342$ gains!

Penny Sleuth’s Tom Bulford discusses ethics, investing and where they coincide.
Tom Bulford (Penny Sleuth):
Are you an ethical investor?

I ask this because this week is National Ethical Investment Week.
[note, this article was originally published 12 November 2009 at Fleet Street Invest]

And if the conference I attended last week is anything to go by, ethical investing could do with a kick-start.
I read a survey recently that said two-thirds of us believe ourselves to be ‘green’ and ‘ethical’. And almost a half would like the money we invest to make a positive difference in this respect.

But in the final reckoning, the survey said, most investors will only make green and ethical investments if they make good money as well.

Have they made money? So far the evidence would suggest not.

Although ethical investing covers a multitude of concepts, one of the more popular is alternative energy. But since the height of enthusiasm for this bold new investment concept, the Eco-Index of clean energy stocks has fallen by some 70%.

One fund manager to take advantage of this tide of conscience was Guinness Asset Management, which launched its Alternative Energy Fund two years ago.

As manager Edward Guinness put it: “I can safely say that late 2007 was not the best time to launch… however, investors now have an excellent opportunity to enter the sector at a time when we believe high future returns are achievable.”

Well, he would say that.

But still, investors should be interested in any sector of the stock market where shares are available at less than one-third of the price paid in recent history. Especially if, as Edward Guinness argues, “the medium and long-term drivers ­- firm energy prices and government support to address climate change and energy prices security – are stronger than ever”.

The fall from grace of alternative energy stocks is easy to explain and is an object lesson to anybody tempted to follow stock market fashion.

To read the rest of Tom Bulford’s article, click here.

Article first published on Today's Financial News

The future of Energy, Ethics and Green Investing

Finally, the world’s experts are confirming what I have been shouting for months. Natural gas prices are way too high.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): Two years ago, most investors said this would never happen. Even twelve months ago it looked improbable. But today it has happened and it should change the way you look at the energy markets.

For nearly two months, I have been troubled by the situation brewing in the nation’s natural gas industry. Too much supply and not enough demand has created a recipe for disaster.

But most investors disagreed.

How many times have I heard the talking heads state that if oil prices are rising, natural gas prices must rise as well? It has been a common investing theme for as long as I remember. For the most part, it worked.

Until now.

Thanks to massive gains in drilling efficiency and technology, the United States now has more natural gas at its pumping disposal than ever before.

According to reports out of the International Energy Agency (IEA) this morning, it is going to create great downward pressure on future natural gas prices.

As supply eclipses demand, prices will plummet.

I told you so

Across the globe, the IEA believes power generation and industrial natural gas demand will drop 3%. It will bounce back next year, increasing by an average of 2.5% from 2010 to 2015, but supply is still expected to outpace demand until late next decade.

Yes, next decade.

With massive amounts of natural gas flooding domestic markets, falling prices are the most obvious variable in the equation. What many investors are not looking at is the recent preparations for natural gas imports.

Remember, just a few years ago the markets were expecting a strong natural gas shortage here in the States. They quickly developed and implemented plans to create massive LNG offloading and storage terminals.

Now, they are hard pressed to find any LNG shipper that can deliver a boatload of gas at today’s prices. It is far cheaper to pump natural gas from Ohio, West Virginia or Pennsylvania than it is to top off a tanker in Kuwait, ship it across a couple of oceans and unload along the Texas coast.

That is not good news for the nation’s LNG import business, which was just getting started.

Going the wrong way

One company I have been watching quite closely is Cheniere Energy (AMEX:LNG). The $116 million company is developing LNG terminals on Louisiana’s Sabine Pass.

Instead of telling you my opinion of this speculative play, I will give you the market’s opinion.

It isn’t good.

Since March, when shares of most everything doubled in value, Cheniere’s share price fell from $5.00 to just $2.06 at the moment. Almost every day, the price is going lower and lower.

Thanks to word like we got from the IEA the trend is not likely to end anytime sooner.

That is phenomenal news for TFN Strategic Trader subscribers. I made them aware of the situation almost a month ago and advised them to buy a very specific set of puts.

Since then, the value of those puts has risen by over 30% and is about to go even higher as the underlying shares are down by nearly 2.5% so far today.

If you think those gains are nice, how would you like to bank gains of 342%? That’s how high another set of calls have climbed since I warned about the natural gas industry’s impending doom.

This trend is just getting started. In fact, I believe we won’t see the real action until mid-January, when the market finally realizes it made a massive mistake.

If you want to get in on the action, read my exclusive report here.Similar Posts:

• TFN eNews 11/10/2009: I’m glad we didn’t take gains last week! – November 10, 2009
• Gas pain: The International Energy Agency weighs in – November 5, 2009
• Natural gas hands us monstrous gains! – November 19, 2009
• Worst-performing commodity of 2009 – November 30, 2009
• Natural gas industry braces for impact – October 7, 2009

Article first published on Today's Financial News

342% gains from natural gas implosion

I am not the only one yelling about the natural gas industry’s impending doom. This week, I’ve got the backing of a major international agency.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): This may be your last chance. As each day passes the pressure on the natural gas market grows larger and larger. Today, there are two major catalysts ready to send the industry into a nosedive.

The first comes from the Energy Information Administration, which tells us the nation’s natural gas inventory has built by another 29 billion cubic feet over the past week. That means the gap between gas in storage and total capacity continues to shrink.

According to today’s figures, there is 3.788 trillion cubic feet in storage, 11.1% higher than this time last year. That figure doesn’t sound like much until you look at the nation’s total storage capacity, which stands at 3.889 trillion cubic feet.

If we continue to add to our coffers at the current rate, we’ll be out of space in less than a month. When it happens, the spot market will be flooded with gas and prices will plummet.

Go short now!

Don’t expect it to be a short-term phenomenon, especially if you agree with the predictions out of the International Energy Agency (IEA).

Next Tuesday, the group will unveil its World Energy Outlook. According to early drafts, the agency is considerably bearish on the future of natural gas, saying we’ve turned the corner from a sellers market to a buyers market.

Just like I am, the IEA is concerned with the massive amount of “new” natural gas that is about to flood the market as a result of recent shale discoveries and increased industry efficiencies.

One of the key predictions in the report is the massive oversupply (up to 250 billion cubic meters) of natural gas the industry will be forced to endure over the next five years.

Not only does that mean prices are going lower, but LNG terminals will be shuttered and all those new wells sprouting up in places like Pennsylvania, Ohio, West Virginia and New York will be plugged as well.

If you have been following my commentary over the last month or so, you know the IEA’s findings are nothing new. I did my own research and let TFN Strategic Traders in on three plays to make almost two weeks ago.

Our timing could not have been better.

So far, the three trades are worth gains of 33%, 88% and 242%. Not bad for just nine trading days.

But the best days (at least for shorts) are yet to come. As natural gas prices plummet and the industry self-destructs, these plays will soar in value.

It is not too late to get in on the action. To read my full, in-depth report click here.Similar Posts:

• High fives for the bears – December 3, 2009
• Natural gas hands us monstrous gains! – November 19, 2009
• 342% gains from natural gas implosion – November 10, 2009
• Buy oil. Sell natural gas – October 26, 2009
• Backward logic: Demand sinks, production rises – October 28, 2009

Article first published on Today's Financial News

Gas pain: The International Energy Agency weighs in

Pundit Adam Lass charts the coinciding trends of increasing oil and stock prices, and marks the peak and fall of two administrations – and wonders whether the Obama administration will let the markets run their course again.

By Adam Lass, Taipan Daily

“Oil down to $80!”

A year ago, that headline was impressive, because crude futures had been hanging out around $144 a barrel, and were on their way to $48. Talk about blood on the trading floor! Now that’s the sort of rich stuff a columnist can sink his teeth into.

The recent $3 hiccough is merely a 4% cyclic dip within a larger rising trend that has seen crude futures rise some 71% over the past nine months. Quite frankly, the oil price could drop to the bottom of the rising trend at $75, and I still wouldn’t be impressed. Heck, I halfway expect it.

Still, this little tempest in a teacup did get me thinking about energy prices et al. I’ve long maintained that energy costs are the mosquitoes of inflation. That is to say, they are the disease vector that allows the theoretical destruction of the dollar to burrow down deep into regular folk’s pockets.

Read the complete article at Taipan Daily.
Similar Posts:

• Depression 2010: New Oil Shock Will Kill the American Recovery! – December 4, 2009
• TFN eNews 01/04/2010: A cyclical anomaly – January 5, 2010
• “Anywhere but America!” Zweiter und letzter Teil – October 27, 2009

Article first published on Today's Financial News

Will big oil burst Obama’s economic Bubble?

Turn this clandestine “Shipping News” signal into three shots at gains of 256%, 678%, even, 1,894%… by January 15, 2010!

by Andrew Snyder

Baltimore, MD — TFN: Crude oil prices are hitting new year-to-date records. Gold is setting new all-time records. Commodities are soaring. But with everyone’s attention riveted by the surge in real assets and energy, the possibly most lucrative event in the 2009 market is flying completely under the radar.

I believe this single event could create a triple opportunity. A shot at taking gains of 295%, 678%, and 1,894%, respectively!

You see, a few weeks back, I noticed strange activity in the shipping news.

With no place to unload, several tankers carrying liquefied natural gas (LNG) were suddenly diverted from their scheduled destinations.

A supertanker originally dispatched from Russia sat off the Kuwait coast, idling for nearly a month awaiting orders.

Just when the crew thought a trip to a mid-East port was on the way, the radiophone crackled and the ship was diverted… to the Hazira terminal in India!

Meanwhile, at the exact same time, a ship destined for that same Hazira berth was seen changing its course. It was now headed to the Canary Islands.

It gets even more intriguing…

Because at the same time, the Sohar LNG, another massive tanker filled with natural gas, remained tethered to the ocean floor off of Kuwait, the same anchorage it occupied for weeks. Even a blind man can see… the natural gas market is in utter shambles!

For months, entire fleets of LNG-laden tankers have been turning in all directions looking for buyers in an over-supplied market.

Market veterans who’ve been in this market for decades agree:

Something monumental is about to happen…

The natural gas market is in a state of red alert!

Fresh new 7-year price lows created immense structural pressure! And there are signs that the natural gas market is about to go SUPERNOVA under these incredible market forces.

When it does, those who can read the signals… and those who follow my recommendations… could be in a position to rack up not one, not two, but three triple-digit gains.

Gains as high as 295%, 678%, and 1,894%, respectively!

Market recoil

There’s no doubt in my mind: This is the biggest market malady I’ve seen in my career!

It’s so big and so potentially market-changing, I’ve dedicated a large part of this year to uncovering the inner workings of the ticking time bomb. And I just got confirmation!

It’s as official as it gets in this business.

See, during the week of August 14, an “undisclosed” hedge fund quietly moved into the futures market. They purchased a massive amount of call options. Before anybody realized what had happened, a multi-million dollar bet was on the table. The markets went crazy.

Here’s it in a nutshell: On the surface, it looks like this “stealth buyer” is willing to pay $10 in January — for something selling for just over five bucks today.

This is an outrageous price!

Just think: Natural gas prices just got done bouncing off seven-year lows of $2.69!

Right now, the price of natural gas is at about $5.15 per 1,000 cubic feet.

There’s no way they’re ever going to hit $10!

Or will they?

But what if I told you this move had absolutely nothing to do with betting against the current trend?

What if it was nothing more than smoke and mirrors?

Here’s why:

In early October, Russia’s state gas monopoly Gazprom announced that it plans to cut itself a 10% share of the U.S. natural gas market — by 2014.

Gazprom has a stranglehold on Europe’s natural gas supply. It’s been called the Kremlin’s foreign policy arm. Its revenues are the backbone of the Russian state budget.

It even keeps its own armed forces to secure its gas pipelines. Gazprom aims to control a quarter of the world LNG market by 2020. They’re not messing around!

Reds

The company plans to use liquefied natural gas from its Sakhalin-2 project to supply U.S. customers. Down the road, Gazprom could send LNG from its Arctic Shtokman field to North America.

Given the current levels of natural gas prices, Gazprom’s U.S. strategy is particularly timely. Because U.S. natural gas producers are already struggling to stay in business!

With that natural gas price sitting around $5.15 per 1,000 cubic feet, for many wells, this is at or even below break-even:

It now costs more to pump a cubic foot of natural gas from the ground than you can expect to make on it if you sell it!

And it’s not getting any better: Current supplies are so high, storage space is getting scarce:

According to the Energy Information Administration (EIA), there was 3.899 trillion cubic feet (tcf) of working gas storage capacity in the United States in 2000.

Supply and demand

As of Friday, October 2, working gas in storage was 3.658 trillion cubic feet — that’s dangerously close to full levels!

Even worse for producers, there are huge amounts of gas about to flood the market as the cheaper Marcellus Shale is tapped:

Total production of U.S. gas from shale predicted at year-end 2011 will be nearly eight times greater than at year-end 2006!

With so much supply and producers operating with one foot in bankruptcy, Gazprom’s strategy will involve large-scale buy-ups of distressed domestic producers — preceded by aggressive price wars.

It’s another win-win: The Russians will buy American businesses, distribution networks, and gas inventories at firesale prices!

Good for consumers. And good for the last capitalists operating on American soil by then. (Too bad they’ll be Russian…)

But even without the added pressure from the Russians, North American gas companies are suffering because of recent price declines:

Waste Management Inc., a trash hauler making money on natural gas generated from landfills, expects gas prices to weigh on its third-quarter, per-share earnings by about 4 cents per diluted share.

Trident Resources Corp., a Canadian natural gas explorer, filed for Chapter 11 bankruptcy protection in the U.S., citing a drop in gas prices.

Here’s what’s going to happen:

Natural gas prices are about to implode.

Those tankers I mentioned above were not ping-ponging around the world’s oceans looking for the best buyer.

They were looking for ANY buyer!

Right now, as you read this, there is more natural gas in storage than anytime ever before. There’s 3.658trillion cubic feet of gas stored beneath the continental United States alone.

Natural gas storage inventories are expected to establish a new all-time record.

And industrial demand remains down thanks to the recession.

New investment and capital is being diverted to cockamamie alternative energy schemes.

And hurricane season has been very uneventful so storm-induced bottlenecks have been nonexistent. Overall, supply continues to outpace demand.

But even with all of this excess supply, drillers continue to pump gas at maddening rates.

It’s either that or go belly up.

But what about that rogue that bought the $10.00 calls?

Remember the “undisclosed” hedge fund that placed the bet on $10 natural gas by January?

Won’t they lose a fortune if gas prices implode?

You’d think so.

Unless, of course, he’s one of us!

On the surface — to the thousands of punters and media pundits — it looks like this contrarian trader made a boneheaded move that will cost him millions.

But if you know the world of options like I do, you know his move isn’t how it appears.

Chances are this “foolish” move is a mere sliver of a genius trade.

You see, the rather “small” size of the options contract — the 10,000 contracts cost $5.6 million — indicates that these contracts would be used to protect a massive amount of futures contracts.

Why wouldn’t a hedge fund spend $5.6 million to protect its downside if it most likely puts billions on the line?

A hedge fund with assets most likely measured by tens of billions doesn’t make such a small move just to gain $5 million or so.

It does it to protect a much larger stake.

This means these $10 calls are most likely hedging against a much, much larger bet… AGAINST natural gas prices!

By getting in at just $0.056 per contract, the hedge fund can profit no matter which way the natural gas markets move:

If prices go down, the fund makes a killing.

If prices go up, the “insurance” of the $10 calls kicks in! Every dollar invested could explode to $187.50 if gas goes to $10.50. It’s a win-win situation!

But here’s the core message… our “clandestine signal” we must act on now:

The smart money is betting that natural gas prices will collapse!

“How can I get in on some of that action,” you ask?

Simple.

Follow my lead. I’ve got it all mapped out.

Over the past two months, I have hammered out a three-strike strategy that could result in you taking gains of 295%, 678%, and 1,894%, respectively.

Strike One — Potential gain: 256%

This is a “short” strategy betting on steeply falling prices using a very specific set of put options with January expiration date:

The underlying company will go bust as cash flows fall short if prices dive.

How can I be so sure?

Look at the numbers!

This $300 million company has a whopping $261 million in short-term debt, with a total of $891 million in liabilities. Even if the company shuts down its drilling and rids itself of all variable costs, it still has to pay on its debt obligations. If gas falls below its breakeven, costs will pile up fast and its share price will fall even faster.

Using these put options, with a $1,000 investment you could make $80 for every dime the stock price drops!

Strike Two — Potential gains: 678%

As American storage wells reach full capacity, there will be no demand for LNG domestically. As an LNG importer, this $150 million company will get slammed.

The LNG terminal operator aims to bring in at least 20 of its own cargoes to Sabine this year.

But Sabine Pass, like all terminals on the U.S. Gulf Coast, has received only a trickle of imports this year as low U.S. gas prices have made it unattractive for shippers.

Already, companies like GDF Suez SA are seeking to divert LNG, cargoes from its new Yemen LNG plant to India — and away from the U.S., where demand has ground to a halt.

With domestic supplies bursting at the seams, this LNG importer is looking at tough times! We’ll be recommending shorting the stock using a very specific set of put options with March expiration date! My calculations put possible gains close to 680%!

Strike Three — Potential gains: 1,894% by January 15!

Our previous two “strikes” aimed to leverage the catastrophic situation of U.S.-based LNG producers and importers. But the third part of my strategy is the key:

We’re going to recommend readers purchase put options against United States Natural Gas (UNG), a natural gas ETF that directly traces the prices of natural gas.

It’s supply and demand:

Huge amounts of gas are about to flood the market as the cheaper Marcellus Shale is tapped: Another crucial point is that the total production of U.S. gas from shale predicted at year end 2011 will be nearly eight times greater than at year end 2006.

My latest special report Natural Gas Implosion: Three plays to make right now provides you with the exact details you need to know to implement my strategy.

I tell you exactly which moves to make to take advantage of the ultimate bear market… what specific options to buy now… and of course when to sell them to hand you gains of 256%, 678% or even, 1,894% — possibly as early as mid-January.

That’s right. Kick off the New Year with some of the biggest gains of your life — all thanks to an impending natural gas disaster.

I’m going to give you a lot more to think about, so grab a pencil, but first…

Let me tell you about myself.

My name is Andrew Snyder and I live, breathe and, according to my wife, even dream about the options market.

While others are on their knees praying for gains of 5%, 10% and even 20%, I’m harnessing the power of options for gains like:

• 87.1% on National City Jan 2.5 calls (NCCAZ) in just 1 trading day…
• 79.6% on Boeing Feb 55 puts (BANK) in 4 trading days…
• 50.2% on SPDR Gold Trust Jan 85 puts (KFFMG) in 24 trading days…
• 71.9% on Under Armour Jan 30 puts (UAMF) in 5 trading days…
• 40% on C Mar 2.50 calls (CCY) in 4 trading days…
• And 83.2% on Altria 2008 Nov 22 17.00 calls (MOKR) in a single day.

Plus, most recently:

• 56% on Century Aluminum May 2.50 calls (CQIEM) in just 1 trading day…
• 60% on Ebay May 13 calls (QXBEK) in just 1 trading day…
• 40.5% on HOG August 17.50 calls in 19 trading days…
• PLUS 70% on Dyax April 2.50 calls in 5 trading days.

Plus, in the span of just seven trading days in mid-September we locked in gains of:

• 40% on Chesapeake Energy calls
• 18% on FuelTech calls
• 80% on Cabelas puts
• 171% on NCI Building System calls
• PLUS 42% on Rio Tinto calls!

In just ONE WEEK, we racked up cumulative gains of 351%!

I’m also a vital part of Hot Stock Confidential, the hotshot newsletter that has bagged 67 winners so far this year.

Maybe it’s the MBA.

Maybe it’s the experience I gained as a financial advisor.

Maybe it’s because of my proprietary trade equations.

Or maybe it’s because I dedicated my life to dissecting the derivatives and commodities markets.

Really, it doesn’t matter because I can pick winning options like a fat kid can eat Twinkies.

I know how to make money with options, plain and simple. My track record speaks for itself.

So do my subscribers…

- “Awesome! Great job Mr. Snyder and thanks!”
- “I like what I hear and read from Mr. Snyder”
- “Thanks for the 120% profits this week…!”
- “I have been following your options beta strategies pretty closely. Great job on them!”

I could go on and on. I’ve got a stack of testimonials.

But we’ve got more important topics to discuss… like the impending collapse of the nation’s natural gas industry.

Even though natural gas inventories are at historic highs, nearly everywhere you look there is new drilling taking place.

In my home state of Pennsylvania, a legislature desperate for a new source of revenue recently recommended opening 390,000 more acres of state land to natural gas drilling.

It’s the same situation in West Virginia, where after years of incredible growth, drillers have to keep expanding just to pay their debt. If their wells stop for even a minute, they are losing money.

But what is really interesting and where the big money lies is what will happen when these guys finally fill up the nation’s reserves? What happens when the market screams… NO MAS!

Simple supply and demand economics shows us prices will collapse.

Drillers will essentially be giving away their stockpiles just so they don’t have to burn it off and destroy any shot at profitability.

My research shows it will happen by mid-January.

Better yet, my prediction is backed by a multi-million dollar investment. Remember that rogue hedge fund I mentioned? Don’t forget its investment matures smack dab in the middle of January.

If my word isn’t good enough for you yet, their immense stake should be.

Here’s what I want you to do.

Sign up for TFN Strategic Trader and I’ll spoon feed you my ideas on how to score big gains from an upcoming natural gas implosion.

Plus, I’ll personally email you with exciting and little-known plays directly to your inbox each and every week.

I’ll send you the kind of plays that would have let my friend Jim retire with several lifetimes worth of wealth… if he would have only followed the recommendations.

What’s TFN Strategic Trader?

It’s an options research service, plain and simple.

But it’s a service like no other.

Many options services make things too complicated. Even the lingo scares folks away.

There are covered calls, naked puts, straddles, strikes, alphas, betas, thetas…

But nobody’s asking you to know any of that stuff. Most of the guys on Wall Street don’t even know it… and it shows!

I spent years studying that stuff so you wouldn’t have to. I’ve got the degrees on the wall to prove it.

But even more important than some gilded piece of paper is my word.

Without a man’s word, what does he have?

With TFN Strategic Trader guiding the way, you won’t go alone… ever.

TFN Strategic Trader couldn’t be any more “user friendly.” Here’s how it works.

Expect me to contact you via email a few times a week.

I may be updating you on some important news event. Or one of our recent positions. But most importantly, once a week, you’ll get an alert to enter a new recommended trade.

That means an opportunity to profit from options, not stocks, not ETFs and certainly not mutual funds.

Remember, this is an options research service, plain and simple.

I find the winning ideas, type them up and send them to you… every week.

If you don’t like options, or can’t handle the heat, keep moving. There’s nothing to see here. I’ll fill your spot with somebody that has been waiting in line to get in on a service like this.

But if you do like options and have an appetite for risk, I have something to offer you.

Boy, do I.

Each one of our recommended trades is different, so I can’t promise a constant pattern. We’re shooting from the hip, killing them as they come.

Some weeks, I’ll recommend a put position.

The next week we could tell you to go long with a call, maybe even a covered call strategy.

It doesn’t matter what route we take, as long as you have the guts to play along, I’ll do all the hard work.

In your TFN Strategic Trader email alerts, I’ll outline the best and ultimate way for you to maximize your profit potential.

No options-trading experience required

Remember, to profit from this strategy, you don’t need any knowledge of the options market.

Even if you’re a seasoned pro, like so many of my followers, you’ll absolutely love the valuable information I send.

You won’t get these kind of moneymaking ideas on some Internet message board.

Best of all, when you get a weekly call to action from TFN Strategic Trader in your inbox, you’ll have everything you need for a chance to profit spelled out in simple English.

Here’s just part of a recent sample alert:

“One stock that caught my attention yesterday is Century Aluminum (NYSE:CENX). With its latest earnings announcement due to hit the wires later today, shares have been extremely volatile.”

I finished up with:

“…buy Century Aluminum’s May 2.50 calls (CQIEM).”

It can’t be any simpler.

By the way, that play was worth 55% gains… in a day!

To take advantage of TFN Strategic Trader, all you have to do is log on to an online brokerage account or give them a call.

It takes just two clicks of a mouse… and you don’t need a fancy trading account.

But this unique trading research service is about more than just one intriguing profit opportunity.

There are hundreds more that are perfect candidates for an array of options strategies.

But the only way you’re going to hear about these wealth-generating opportunities is to…

Sign up to become a Member of TFN Strategic Trader TODAY

When you do, you’ll instantly become a part of this breakthrough research service and get at least two TFN Strategic Trader alerts from me each week.

	Plus regular Special Reports — each detailing a unique trading strategy or profit opportunity.
	Plus an updated portfolio on a Members-Only website.

In this day and age, where a cup of coffee costs $4, a movie $12, and the average broker has the audacity to take 2% of your net worth in fees and then somehow manage to cut the value of your portfolio in half, you’d expect an elite service like TFN Strategic Trader that has the potential to line your pockets with gains to cost a pretty penny.

But it doesn’t…

Of course, many of our competitors line their pockets by charging exorbitant fees. But we have a different business model.

We like to see you make the money.

First, let me tell you exactly what you’ll get with TFN Strategic Trader…

If you sign up today, I’ll instantly send you my latest Special Report, Natural Gas Implosion: Three plays to make right now

You’ll also get my popular Report: Revolutionary Medicine: Saving lives and getting rich with biotechs.

And you’ll have full access to Options: The ultimate bear slayer — an all-you-need-to-know guide about trading stock options.

You’ll also receive all of the reports my colleagues and I write in the future, plus, a daily TFN eNews alert.

On your exclusive TFN Strategic Trader members-only Web site, all of the alerts, reports and updates are archived for easy reference.

And you can follow the moves of each trade recommendation on our tracking portfolio page.

I’ll GIVE you all of this just for becoming a member of TFN Strategic Trader.

But get this — I’m fully aware that the level of commitment required by this service isn’t for everybody, so I’ll back it with a full 45-day refund.

If, for any reason, you’re not fully satisfied with me or my service, if you don’t make money or you simply don’t like my tone, just call us up and we’ll refund your cash… no questions asked.

Every single dime.

And if after the 45 days, you decide TFN Strategic Trader is not for you, you’ll be pro-rated your expense.

What’s there to lose?

Absolutely nothing.

You literally have nothing to lose, but oh so much to gain.

So what’s it going to run you? Good question.

Special Reserve Offer

How about $1,999 for a year’s worth of the service?

You’d pay that, right? I know people that have.

After all, that’s what nearly every other similar service goes for… if not more.

But I want this to be an offer you can’t refuse… one that makes our competitors say, “How’s he do that?”

That’s why I’m cutting over $700 off the published price and offering a full-year’s subscription, including all my free reports, weekly options play, constant updates, a members-only site and a customized portfolio……for just $1,295 per year.

It’s an incredible deal that you won’t find for even a run-of-the-mill stock-trading service, let alone a comprehensive options research service.

Not ready for a commitment?

I understand.

Instead of signing up for a year, you can get TFN Strategic Trader for just $325 per quarter.

That’s over 80% off the original annual price.

Sweet deal, right?

Oh… it gets better still.

If you hate those constant renewal notices as much as I do, you’ll want to take advantage of monumental savings with our convenient quarterly auto-renewal feature for just $299. We’ll automatically charge your credit card every three months until you tell us to stop.

Bottom line:

I can extend to you one of the greatest offers in my career and get your partnership with TFN Strategic Trader off to a flying start.

As long as you act RIGHT NOW and become a special reserve member you will get…

TFN Strategic Trader, plus all of the analysis, insight, and trading secrets that come with it… plus these three reports:

	Natural Gas Implosion: Three plays to make right now.
	Revolutionary Medicine: Saving lives and getting rich with biotechs.
	Options: The ultimate bear slayer

… All for just $299 per quarter when you sign up for automatic renewal.

Don’t let this opportunity pass you by

Remember, if for any reason, you’re not fully satisfied with me or my service, just call us up and we’ll refund your cash… no questions asked. Every single dime.

And if after the 45 days, you decide TFN Strategic Trader is not for you, you’ll be pro-rated your expense.

It’ll be my job to explain it to my boss, not yours.

If that’s not the deal of the year, I don’t know what is.

Where else will you learn about three ways to take advantage of what will likely be an absolute disaster for the natural gas market?

And where else can you get access to a full-on, no-holds-barred trading research service like TFN Strategic Trader?

I know for a fact, there’s nothing comparable anywhere out there — I looked.

Finally, where else can you get THREE money-making and money-saving reports for the price of one?

And you risk absolutely nothing.

So I ask again, what do you have to lose?

In this market… nothing!

To sign up for the action, simply click here, select the button below or give us a call at 1-877-894-3583.

Best regards,

Andrew Snyder
Chief Strategist
TFN Strategic Trader

Article first published on Today's Financial News

Natural Gas Prices: “Stealth Buyer” tips his hand