Share this article:

TFN eNews 11/19/2009: Monstrous gains from falling gas prices

Published via e-mail broadcast on November 19, 2009

In today’s TFN eNews:

* Monstrous gains on natural gas

* Freebie gains of 15% for TFN readers

* TFN Insider Report

Dear TFN eNews reader,

It was one of those days when you were wondering what ever happened to safe-havens. Miniscule improvements in the dollar strength resulted in a sell-off of U.S. stocks, especially metals and energy companies.

We didn’t mind. We had locked in 32% gains on one of our silver plays yesterday — and used to opportunity to get into a small, Canada-based junior gold miner with over 460,000 ounces in assumed reserves at a substantial discount over yesterday’s price.

Natural gas prices, too, continued to fall. This was even better news for those members of TFN Strategic Trader who took Andrew Snyder’s advice a month ago and went short on natural gas.

Today, they locked in gains of 400% — and will be riding out the downturn for further gains playing with free money.

Andrew writes: “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’s all thanks to the U.S. natural gas market. After years of working tirelessly to tap new reserves and find more efficient ways of drilling, we now have way more gas on its hands than anyone knows what to do with. A warmer-than-usual November has added even more fuel to the sector’s implosion.

“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.

“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. We’re 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.

“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?

“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 money. At the rate natural gas prices are falling, I am confident more gains are on the way. But it is foolish not to take some of our money off the table, especially now that the time variable in our pricing equation is becoming much more powerful.”

*** TFN’s Laura Cadden also used the opportunity to lock in some free money for our TFN regulars:

“We’re up over 15% from our initial buy price for Cytori Therapeutics (NASDAQ:CYTX). Let’s set a wealth protection stop-loss to ensure modest gains while allowing the share price room to grow.

“CYTX has seen its share price jump on the news that is completed enrollment for an international breast cancer reconstruction study called RESTORE 2. The company’s Celution 800 System will remove the participant’s own adipose-derived regenerative cells, which will then be combined with their fatty tissue for grafting. The hoped-for result would be to restore functional and cosmetic deformities in women who have undergone partial mastectomy for early breast cancer.

“This is exciting stuff, but it’s taken us months to hit even 10% gains for our initial buy price of $3.71. (See that Jan. 12 recommendation here. http://www.todaysfinancialnews.com/us-stocks-and-markets/lock-in-gains-for-cytori-therapeautics-10370.html

***”Who cares if this technology really changes the world? I don’t. I only care that this stock, which is trading for just pennies, hits $0.50 in the next three months!”

Right now, you can buy 10,000 shares for just $250… and when it hits 50 cents, those shares will be worth a cool five Grand! For just $500, you can pick up 20,000 shares that could be worth an amazing $10,000 by the end of the winter.

Read my Free report (by clicking here) and you’ll see exactly why… heck, you may want to pick up a hundred thousand shares right now!

*** TFN Insider Report:

TFN eNews readers report on the actualities of their economic environment:

“From the ‘heart of Texas’ the news is not too bad. But then, we have not been nearly as affected as other parts of the country. I just returned from a round trip to DC. From that and my observations along the roads, we cannot possibly be suffering. On most interstate highways trucks are racing each other. Passenger traffic also leaves one breathless at times (especially on Saturday when all of Alabama seemed to be rushing to a ball game against LSU). The motels are well occupied every night. The restaurants are doing good business. My conclusion is that we are suffering from self-inflicted mental depression. Let’s get the shovels out and dig ourselves out of this hole. Above the rim the sun is still shining!” — TFN eNews reader Hans S.

Become a TFN eNews contributor! Please send us your own update of how reality looks like where you live: Email me at support [at] todaysfinancialnews [dot] com!

*** Members’ Only Update:

On Monday, one strong, promising biotech stock we’ve had our eyes on fell from $1.63 to 88 cents. The reason: The privately held company it’s going to merge with apparently filled a New Drug Application (NDA) for a new blockbuster drug under the wrong Section (505(b)(1)of the FDCA.

This drug looks like a potential cash cow: The commercial rights were recently acquired for $15 million in upfront payments, additional development funding of up to $16 million, an approval milestone of $30 to $40 million, and tiered royalties on net sales after approval.

The NDA has a November 22, 2009 review date. The company is now working to amend the existing NDA. Chances are good: It’s not as if Exalgo didn’t meet primary endpoint in a trial. There were no efficacy issues. The NDA was filed under the wrong Section.

If they get their stuff in order, this stock could bounce back just as steeply as it fell… creating gains of 50-90% in a day.

The sell-off provided a window to buy a biotech powerhouse at penny share prices! This morning, we issued a buy alert for this stock under $1 for Members of our VIP service, Penny Stock Confidential. We’ve monitored the share price closely all morning. Our PSC Members are already in place… but there’s some room left to get in.

We think there’s room for an additional 10 experienced investors… those who know how to handle risk and can act swiftly on buy and sell alerts. Consider if a clean shot at 50-90% gains next week is for you… and join our PSC Members Roll: http://www.todaysfinancialnews.com/PSC/LAUNCH/WPSCKB11.html

*** Quote of the Day:

“History shows that when the taxes of a nation approach about 20% of the people’s income, there begins to be a lack of respect for government. . . . When it reaches 25%, there comes an increase in lawlessness.” — Ronald Reagan

***What our colleagues are looking into:

Tim Fields, Editor-in-Chief of Untapped Wealth (published by Trinity Investment Research) is hot on the trail of exciting new technology:

“While Dell, Apple, HP, Sony and RIM (to name just a few) are clamoring to get their hands on a little company’s transformational technology, most on Wall Street have yet to catch wind of a new potential giant…

“So what has this company accomplished that’s creating so much industry buzz… and what has venture capitalists pouring into it as though it were a sure bet? Answer: This relatively unknown (for now) company has created a battery with a nearly infinite shelf life!

“Insiders are calling it ‘The Forever Battery’, and it’s about to revolutionize nearly every aspect of our lives. Just think of the possible applications of a forever battery: Hybrid cars, smart phones, iPods, laptops, Christmas toys, watches, flashlights, etc. Like the battery – this list could go on forever — but you get the point.

“Now just imagine what kind of instant demand will be placed on this pennies-a-share company the moment Wall Street discovers ‘The Forever Battery’ for itself. Of course, I can’t tell you how high it will go… or how fast it will rise. But I can tell you historically Wall Street rewards these types of societal game changers with fast fat riches for their early investors.

“And get this, ‘The Forever Battery’ was just named an International CES Innovations 2010 Design and Engineering Awards Honoree in the Personal Electronics category. Who cares? Well, top execs from Apple, Dell, and Sony do, as they were all on hand to congratulate this little company — and met for cocktails afterwards. (Hmm…) This prestigious industry award is the exact kind of exposure needed to catapult this company into the stratosphere of the investing world!

“See what ‘The Forever Battery’ can mean for you if you’re able to buy shares before the news hits The Street… Read On.”

Today’s Top 3 Financial News Stories:

MoneyNews.com – China Regulator Blames Bubble on U.S. “The continuous depreciation in the dollar, and the U.S. government’s indication that, in order to resume growth and maintain public confidence, it basically won’t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation.”

Telegraph.co.uk — Société Générale tells clients how to prepare for potential ‘global collapse’ “Société Générale has advised clients to be ready for a possible ‘global economic collapse’ over the next two years, mapping a strategy of defensive investments to avoid wealth destruction.”

Bloomberg.com — Stocks, Commodities Fall as Dollar Rebounds, Treasuries Gain “U.S. stocks extended a global drop as concern grew that the rally has outpaced the prospects for economic growth and Bank of America Corp. downgraded chipmakers. The yen and the dollar strengthened, oil and metals tumbled and yields on two-year Treasuries reached the lowest level of 2009.”

Cordially yours,

J. Christoph Amberger

Executive Publisher, TodaysFinancialNews.com

P. S. The 3 Best Stocks under $3 to buy Now!

We expect these new recommendations to bring in gains of perhaps 145%… 55%… 67%. Better yet, I think we can take some of those gains before Christmas. But you have to act immediately! http://www.todaysfinancialnews.com/HSC/ridic/WHSCK902.html

Next Article: China deal sets MMR Information Systems (MMRF) soaring

Posted by J. Christoph Amberger · Filed Under TFN eNews

Share this article:

Be the first to leave a reply.

Your comments are welcome

Follow TFN via RSS or Twitter

<a href='http://www.todaysfinancialnews.com/tfn-ads/www/delivery/ck.php?n=a362353e&cb={random}' target='_blank'><img src='http://www.todaysfinancialnews.com/tfn-ads/www/delivery/avw.php?zoneid=12&source=IL&cb={random}&n=a362353e&ct0={clickurl}' border='0' alt='' /></a>
Advertisement

Today’s Financial News - For the Capitalist in all of us