Better than a government giveaway … and our 52st gainer of the year!
Published via e-mail broadcast on September 2, 2009
In today’s TFN eNews:* Battery stock up on non-battery news
* 15% on a major retailer in under 2 months
* Pakistani Sovereign Guarantee
Dear TFN Reader,
I hate to rub it in. But last week’s “Alternative Energy/Battery Technology” bonus pick for Hot Stock Confidential members went up over 8% today on news that one of its units had received orders of $1.3 million from “certain unnamed military customers”.
Boy, I love that kind of customer!
Of course, that particular division has absolutely nothing to do with military battery technology. No matter. We take it anyway. But we’ll be letting our 16% gain ride.
The company caters to the military, law enforcement, and security markets. Its battery and power systems division had just bagged over $1.5 million in new orders for lithium ion batteries and components. I calculated this stock could rack up gains of 50 cents to 75 cents per share over the next three months! And I’m glad that we’re a third of the way toward our first target.
(I notice that the companies we listed in our TFN Special Report: The Top Alternative Energy Stocks Under $6 are mostly in the range they were in when we published the report last week.)
But as I was watching this stock percolate, the profit bell tolled for another Hot Stock Confidential pick:
Throughout tomorrow, a number of key retailers will disclose their latest monthly sales figures. It is likely that there are signs of significant growth over last year’s figures. But we think the markets may be in for some disappointment: They’ve already priced in a big boost in consumer spending. But despite booming sales for Beltway Kool-Aid, that simply hasn’t materialized.
Still, our July position in Best Buy (NYSE:BBY) is worth gains of 15%. Over the next six to eight months, there are bigger gains to be made. There’s no need to wait around for a few more percentage points when there are better moneymaking opportunities out there.
We were sitting on a double-digit winner that may not be worth nearly as much after the Street digests tomorrow’s news. We took our money off the table and moved on.
BBY is the 51st double-digit gainer of the year for HSC members. And only the third that’s come in under 20%.
Think it’s about time you started your own “Cash for Clunkers” program? Time to simply refund that silly apocalyptic newsletter of yours and bought yourself a subscription to Hot Stock Confidential for yourself?
I tell you, it’s even better than a government giveaway: At least you won’t owe taxes on that refund!
*** BP plc (NYSE:BP) just announced a “giant” oil discovery 250 miles off the Texas coast. Good news for the British oiler, which is up almost 5% as I write.
But our TFN in-house financial whiz Andrew Snyder considers it “fantastic news” for select small-cap players in the oil services industry:
“It’s a great time to be tapping new oil wells. As oil prices continue to remain in ‘elevated’ territory thanks to fears of increasing demand and dwindling supply, a ‘giant’ discovery is fundamentally good for a company’s long-term outlook.
“In the case of BP, this latest find could be worth more than a trillion bucks at current crude prices. With its drills reaching into a pool estimated to contain more than three billion barrels, BP won’t be running out of stuff to sell anytime soon.
“Of course, most of the tangible benefits of this find will not be felt for several years. According to some analysts, it could take as long as a decade to fully develop the field. But when it happens, the new well could boost production in the region by as much as 50% — to 600,000 barrels of oil equivalent daily.
“That’s great news for BP, but even better news for the volatile deepwater drilling industry. This latest find is not only newsworthy because of its sheer size, but for its location. The well is buried some 35,055 feet beneath the earth’s surface. A pool that deep was previously thought to be impossible to tap. But thanks to recent technological innovations, it’s going to happen more and more.
“Whenever we discuss the deepwater drilling industry, one company always comes to mind, TransOcean (NYSE:RIG). The $24 billion company is a deepwater drilling contractor with over 130 rigs spread across the globe. It has more than enough potential to produce strong shareholder profits over the next few decades, but here at TFN you know we like to concentrate on the small, lesser-known players.
“Because t hat’s where the real money is…”
Andrew has his eyes on a bunch of other real-money companies. I certainly think you’ll benefit directly by reading his article on TFN…
*** A new TFN Reader Grapevine pick… this time from TFN eNews reader Allen D.
“I have came across a company called Bergamo Acquisition Corp. (OTC:BGMO) which is based in Nevada. They’re involved in a project providing energy to the Pakistani government worth more than $1.5 billion dollars, and have recently secured funding from LondonWall Investments Ltd. of $1 billion as a form of direct investment in the project. It will be great if you can review this company to fully explore the huge potential.”
Bergamo Acquisition Corp., through its wholly owned subsidiary, Bergamo E&A, has three infrastructure projects related to Pakistan. They focus on the development of clean energy infrastructure projects in Pakistan. The construction of infrastructure, including clean energy electric plants, solar renewable energy projects and light-emitting diode lighting projects delivers energy foundation for Pakistan based on its natural resources.
Today’s press release relates to LondonWall Investments’ $1 billion equity investment in Bergamo E&A. This will fund the energy projects in Pakistan, including the clean coal plant and a series of solar projects. Palms were greased by the Pakistani government’s issuance of its “Sovereign Guarantee” to Bergamo E&A “for the purchase price of all of the energy to be produced by the projects and for the absolute guarantee of payment for the energy produced by the projects”.
“It should be noted that the Government of Pakistan has never failed to pay an obligation backed with its Sovereign Guarantee,” the press release reminds those of us for whom the word “Pakistan” conjures up suicide bombers and mountains of mayhem.
The stock is up over 50% on the news today and currently trades for 50 cents.
This kind of move generates its own, self-sustaining momentum. Based on today’s action, I think the stock could easily hit 70 cents by tomorrow. But it’s a hard call: Stocks like this are likely to be volatile… so you either need to be very disciplined playing it… or apply generous trailing stops.
The language of the press release makes me think the company will be milking this Pakistani Commitment for all that it’s worth… so we may have a bunch now news cycle-induced price-volume spikes ahead of us!
*** If there’s anything we like better than welcoming new members, it’s welcoming back old friends:
“I have come to the realization that your service is the best of the lot. Is it ok if I re-subscribe to your service?” — former and now current HSC Member Mathew W. in Tokyo, 09/02/2009 via e-mail
You bet it is! Welcome home! Join our tight-knit group of profit-takers today!
Quote of the Day:
“Parents have every right to worry about their children being used as Political Guinea Pigs for Change.”
– Michelle Malkin, Creators.com
Recommended Reading:
BP’s big find is good news for these small caps
The Top Alternative Energy Stocks Under $6
The Top Swine Flu Vaccine Stocks under $20
The 3 Best Chinese Stocks Under $5!
Today’s Top 3 Financial News Stories:
Bloomberg.com – U.S. Stocks Fluctuate as Energy Gains Offset Jobs, Factory Data “U.S. stocks fluctuated as gains in energy shares offset a slump in consumer companies following data showing bigger-than-estimated job cuts and slower-than- forecast growth in factory orders.”
FT.com — BP reveals ‘giant’ oil discovery “The Tiber field, in deep water about 250 miles south-east of Houston, is likely to hold at least 3bn barrels of oil, with 500m-plus of that recoverable with today’s technology, but could be even larger.”
WSJ.com – China Discusses Investments in Africa “China Investment Corp., the nation’s sovereign wealth fund, has expressed interest in investing in the World Bank’s recently-launched asset management company, which will channel private-sector funds into investments in places like sub-Saharan Africa and Latin America.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: The lingering death of “life settlement” investing
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