Depression 2010: New Oil Shock Will Kill the American Recovery!
Today's Financial News - Posted December 4, 2009
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
| About Hot Stock Confidential
Hot Stock Confidential, a premium investment research service of TodaysFinancialNews.com, is specifically designed to bring you safe, easy and profitable stock recommendations. To allow you to act at just the right moment, Hot Stock Confidential is entirely electronic: Our detailed and easy-to-follow recommendations come directly to your email inbox and are posted immediately on our website. An added benefit to Membership is our daily e-mail, the TFN eNews — a practical and useful financial resource. Our TFN Editorial Team includes Laura Cadden, Andrew Snyder, and executive publisher J. Christoph Amberger. |
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.
| “Just want you to know I have tried several stock “recommendation” services. None comes close to being dead on target as HSC has. I have finally found my home for investing.” – HSC Member T.G. (09/14/09) |
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!
| “As a pleased subscriber of HSC I can’t begin to tell you how nice it is to see stock after stock jump within weeks into positive terrain and in most cases, double-digit terrain within a very very short time. Profit is not a dirty word. I really enjoy your service and try to use as much of it as possible using as many skills as I have at my disposal.” – HSC Member G.L. (10/07/09) |
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!
| “To Christoph, Laura, and staff: Your service — HSC — is the best in the world!!! Thank you so very much.” – HSC Member R.K. (09/30/09) |
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:
| ** Dividend Cash Cow #1: A medium-size independent oil and gas company that develops and acquires “long life” properties yielding 10.43%! |
| ** Dividend Cash Cow #2: A specialty refiner with a yield of 10.31%! |
| ** Dividend Cash Cow #3: These guys bankroll over 20 oil and gas explorers… and pay out almost 15% yields! |
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…
| (35.2%) on Medical Properties Trust (MPW)24.1% on Alon USA Energy (ALJ)20% on SuperValu Inc. (SVU)24.4% on Aastrom Biosciences Inc. (ASTM)
20.6% on Carmax Inc. (KMX) 44.2% on Bank of America (BAC) – 1st half (4.2%) on ProShares Short S&P 500 ETF (SH) (87.5%) on Huntsman Corporation Feb 2.50 calls (HUNBZ) 30.1% on Market Vectors Russia ETF short (RSX) 40% on City Group March 2.50 calls (CCYX) 64.9% on Bank of America (BAC) – 2nd half (77.6%) SPDR Gold Trust Mar 90 calls (GLDCL) 30% on Valance Technology, Inc. (VLNC) 17.5% on Guangshen Railway Co. Ltd. (GSH) 20.3% on Bruker Corporation (BRKR) 22.8% on Fuel Tech (FTEK) 34.4% on Graham Corporation (GHM) (34.6%) on LDK Solar Co. Ltd. (LDK) 24.7% on A-Power Energy Generation Systems Ltd. (APWR) 21.2% on Corus Entertainment (CHR) 83.1% on YRC Worldwide (YRCW) – 1st half (92.3%) on Dyax April 2.50 calls (DQADZ) 20.7% on Brocade Communications (BRCD) 20.4% on Cerus Corporation (CERS) – 1st position 20.2% on Papa John’s International Inc. (PZZA) 34.9% on Vical Inc. (VICL) – 1st position 25.1% on Cepheid (CPHD) 24.1% on Cliffs Natural Resources (CLF) (16.8%) on Web.com (WWWW) (20.1%) on Smithfield Foods Inc. short (SFD) 106.8% on YRC Worldwide (YRCW) – 2nd half (9.6%) on BMB Munai Inc. (KAZ) 39.8% on Curis Inc. (CRIS) 39.8% on Micromet Inc. (MITI) – 1st position 30.2% on U.S. Geothermal Inc. (HTM) 19.9% on AngloGold Ashanti Limited (AU) 23.3% on Taseko Mines Limited (TGB) 27.3% on iShares Silver Trust Oct 18 calls (SLVJR) (24.8%) on H&R Block Inc. (HRB) 20% on iShares Silver Trust (SLV) 30.1% on Micromet Inc. (MITI) – 2nd position 40% on Calumet Specialty Products Partners L.P. (CLMT) 49% on SQM Oct 35 calls (SQMJG) 21.2% on Toreador Resources Corporation (TRGL) 26.9% on Sangamo Biosciences Inc. (SGMO) |
19% on Dyax Corporation (DYAX)20.6% on Sonic Automotive (SAH)20.9% on Vimpel Communcations Inc. (VIP)50.6% on Vical Inc. (VICL) – 2nd position
29.9% on Trico Marine Services (TRMA) 20.4% on Geron Corporation (GERN) 20.4% on American Oriental Bioengineering Inc. (AOB) (5.8%) on Obagi Medical Product (OMPI) 25.7% on Micromet Inc. (MITI) – 3rd position 17.5% on Sunoco Inc. (SUN) 53.7% on Cerus Corporation (CERS) – 2nd position 22.3% on El Paso Electric Company (EE) 11.1% on Total S.A. ADR (TOT) 30.3% on SpongeTech Delivery Systems (SPNG) – 1st half 22.5% on Seattle Genetics, Inc. (SGEN) 69.8% on Cell-Sci Corporation (CVM) 15.2% on Best Buy Co. (BBY) 56.6% on Curis Inc. (CRIS) – 2nd position – 1st half 51.3% on Tianyin Pharmaceutical (TPI) – 1st half 47% on Vical, Inc. (VICL) – 3rd position – 1st half 76.8% on Katanga Mining Limited (KAT) 81.5% on Dynavax Technologies Corporation (DVAX) 39.3% on Coeur d’Alene Mines Corporation (CDE) (19.6%) on Cell Therapeutics, Inc. (CTIC) 39.4% on Neuralstem, Inc. (CUR) 31.1% on Anadarko Petroleum Corporation (APC) 41% on Seaspan Corporation (SSW) (5.6%) on SLV Oct 2009 17.00 calls (SLVJQ) 26.1% on BioTime, Inc. (BTIM) 31.8% on Enzo Biochem, Inc. (ENZ) 26.4% on Generaly Moly (GMO) 75.3% on TerreStar Corporation (TSTR) – 1st half 52.3% on Hecla Mining Co. (HL) 21.6% on Arotech Corporation (ARTX) 21.6% on Joe’s Jeans Inc. (JOEZ) (78.2%) on SpongeTech Delivery Systems (SPNG) (67.7%) on Osiris Therapeutics (OSIR) (28.1%) on Osteotech Inc. (OSTE) 22% on Cerus Corporation (CERS) – 3rd position 24.7% on Tianyin Pharmaceutical (TPI) – 2nd half 32.4% on Silvercorp Metals Inc. (SVM) (9.6%) on Rentech, Inc. (RTK) |
= 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…
| “If all businesses would be as responsive as you are, we would have a better working environment.” – HSC Member R.O. (09/20/09) |
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.
| “I’ve been hopping around newsletters a lot this year with trials memberships and this is definitely the most bang for the buck. I appreciate the service HSC gives. I’ll probably be a lifer.” – HSC Member S.R. (09/05/09) |
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…
| “You guys just keep impressing me. I like the way you operate, as well as your recommendations.” – HSC Member R.S. (09/22/09) |
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 have only been a member for a couple of weeks now but you need to know, I am thoroughly impressed! I’ve been tracking the performance of your ”picks” before I make the leap of faith to buy and I am confident with your research and track record. I also love the fact that you are on top of the market and let us know when it is time to consider selling. You are exactly what I have been looking for.” – HSC Member V.W (08/25/09) |
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!
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