It's Here: Are You Prepared? (Stock SCU - Storm Cat Energy)
It's Here: Are You Prepared?
Thursday, December 01st, 2005
Baltimore, MD * Jackson, WY * Missoula, MT
In this Issue...
* Natural Gas Set to Explode
* Storm Cat Energy Update
* Bird Flu Found in California: How to Profit
Quote of the Day
"Don't go around saying the world owes you a living. The world owes you
nothing. It was here first."
- Mark Twain
_____
Dear Wealth Daily Reader,
Mike Schaefer here.
In the past 3 days in my home state of Wyoming, Mother Nature just
slapped us a reminder of who's boss.
Temperatures are dipping below 10 degrees and there's a foot of snow on
the ground.
A call to our Baltimore office confirms my belief that energy is about
to bounce back. Brian Hicks just informed me that temperatures in the
mid-Atlantic are dropping faster than Bush's approval ratings.
This can mean only one thing: Natural gas prices are going higher.
Here's a chart of the AMEX Natural Gas Stock Index:
You'll notice that natural gas stocks have pulled back from record
levels in late September.
As an aside, I want to show you a 1-year chart of Storm Cat Energy:
You'll notice that Storm Cat's stock price declined at the same time the
overall natural gas market took a hit.
That's about to change. Now we're in December. Temperatures are
dropping. Furnaces are cranking. Heating bills are rising. It's a
trifecta for investors in energy.
This couldn't come at a better time.
Advertisement
Looking to diversify globally? Have a view on where the U.S. Dollar is
headed?
If you answered yes to any of these, EverBank� World Markets has the
global investment solution that can make it happen! We make it easy for
you to diversify your portfolio globally-and bring you a product line
that lets you seek earnings on a strong, as well as weak U.S. Dollar.
Choose from single currency CDs or strategically engineered,
multi-currency CDs, or, for a low minimum amount, open a deposit account
in one of the world's major foreign currencies. EverBank World Markets
continues to work hard to bring you the foreign currency solutions your
portfolio, as well as your future, requires.
Visit Everbank now to learn more or to apply for the currency investment
that's right for you. Click here
<http://wealthdailymail.net/cntdir.asp?num=150> .
_____
Right now we're seeing a confluence of factors that'll push energy
stocks, especially the ones we own, to record levels.
Yesterday, Storm Cat provided the market with an interim 4th quarter
update on operations. Some of the highlights from the update were as
follows:
* A production increase of 33% from 121 Storm Cat operated wells;
* As of September 30, 2005, total proved net reserves on the
Company's Powder River Basin acreage are estimated at 9.932 bcf (billion
cubic feet), an increase of 5% from the year-end 2005 estimate;
* Storm Cat initiated its drilling program on July 19, 2005 and
has now drilled 26 wells of a 120 well program;
* Re-activated three wells on the Elk Valley acreage in British
Columbia, and drilled two new wells north of the pilot project which
encountered thick, gas-charged coal seams;
* Secured a drilling rig for the Alaska project;
* Commencing a three well drilling program at Moose Mountain,
Saskatchewan.
Early next week I'll provide you with a more extensive analysis of the
company's operations.
Now, I want you to listen to me very closely. You know that I've been
preaching Storm Cat for the better part of 2 years now. I was there at
the birth of this great company.
But people are catching on. Two weeks ago the fools at Motley Fool
highlighted Storm Cat as a stock with extraordinary growth. And the fact
the Big Cat has a partnership with EnCana means sooner rather than
later, the Cat will be bid up to a price I no longer consider to be
reflective of a high-growth stock.
In other words, buy now while it's still under $5 a share. Next year, it
could be $10.
Advertisement
United Nations Declares - "Water Shortage is the Most Immediate &
Serious Threat to Humankind."
Right Now, more than 40% of the world, 2.4 Billion, has no access to
safe drinking water.
* Wells across the globe are drying up.
* Half the world's rivers and lakes are seriously polluted.
* Water is the One, You Can't Live Without It, Utility
* And as the world's population continues to Double, Demand for
water Triples!
Desalinization, a process of turning saltwater into safe drinking water,
is our only hope.
* One company has proved its performance above the rest.
* It's up 1100% since 1995, and 595% since 2000.
* This stock has also paid a massive dividend 18 quarters
straight.
* Some how... not one in 1000 "savvy" investors will ever own a
water stock.
Click Here for YOUR FREE Report:
<http://wealthdailymail.net/cntdir.asp?num=152>
[ # 1 Water Stock of the 21st Century
<http://wealthdailymail.net/cntdir.asp?num=152> ]
_____
Let me explain further why unconventional natural gas producers like
Storm Cat are headed for boom times.
According to the Wall Street Journal on November 29, Big Oil Firms Join
Hunt for Natural Gas in US:
"The world's three largest energy companies -- Exxon Mobil
Corp., BP PLC and Royal Dutch Shell PLC -- are stepping up their hunt
for natural gas in a place they have largely ignored in recent years:
the continental U.S.
Big Oil's new interest highlights significant changes in the
U.S. onshore energy industry. Gone are the days when companies looked
for big reservoirs of oil trapped underground in places like Texas'
Permian Basin. In fact, the oil giants largely lost interest in the U.S.
when these deposits began to be sucked dry. This time, they aren't
looking for oil because they think any untapped pools would be too small
to be worthwhile.
Instead, the majors are homing in on so-called unconventional
gas fields, where gas is locked in giant swaths of coal, sandstone or
shale. Using new technologies, companies can crack open these rocks and
coax out large quantities of gas. Making the economics more compelling
is the fact that, unlike oil, the large quantities of gas needed by the
fuel-hungry North American market can't be transported from overseas.
Already, the search for these new gas fields is fueling an energy boom
throughout the Rocky Mountains.
In 2004, Exxon, BP and Shell, the industry's biggest companies
in terms of market capitalization, spent $6.9 billion on U.S.
production, according to John S. Herold, although costly Gulf of Mexico
projects accounted for much of the total. The companies are expected to
spend considerably more in 2005, as they move ahead with new projects
and exploration costs rise.
In the past few months, BP and Exxon have committed to long-term
development of U.S. fields they have held for years but haven't given
much attention. Shell is taking a different tack, and is intent on
acquiring new fields to establish larger U.S. natural-gas holdings.
While tapping these new gas reserves probably will require
costly technology, the high price of natural gas in the U.S. makes the
investment attractive. In New York, natural gas has been trading well
above $10 per million British thermal units since late August, more than
quadruple its price at the beginning of the decade. Prices are expected
to stay high for years.
In their latest U.S. push, the big oil companies are facing more
competition than in the past. They are moving into regions already
crowded with competitors and using techniques refined by independent
energy producers. In recent years, companies such as Calgary-based
EnCana Corp. have demonstrated the potential for strong returns and
production growth from unconventional wells.
BP plans to invest $15 billion over the next decade in U.S.
exploration and development, including $2.2 billion announced last month
to double production in the Wamsutter field in Wyoming. The latter
investment includes $120 million for technology field trials to test out
better ways to drill and operate wells in unconventional gas fields."
I've said before. I'll say it again.
Buy Storm Cat Energy (SCU - AMEX). Own it. Hold it for the long-term.
In 3 to 5 years, you'll thank me for it.
Best regards,
- Mike Schaefer
Advertisement
"We'll be living on Mars before America runs out of oil."
That's how much oil America has right now at its fingertips.
At a Congressional hearing on November 16, 2005, it was reported that
the US has enough oil to last 195 years.
Even Forbes Magazine knew about it 2 months prior to the hearing, saying
"America has enough to last 2 centuries!"
Where is this oil? Find out
<http://wealthdailymail.net/cntdir.asp?num=151> .
_____
Bird Flu Found in California: How to Profit
We knew that is was only a matter of time before the bird flu hit the
U.S.
Now it has.
The Bureau of Humane Law Enforcement, a non-governmental, nonprofit
animal rights organization, said that it has discovered a strain of the
avian flu in several birds on a Sun Valley, CA quail ranch that were
being raised for human consumption..
After reports of sick animals living in deplorable conditions, the
bureau investigated the ranch. The BHLE's veterinarian determined many
of the birds had a variety of diseases, fast-moving respiratory
ailments, infections, injuries and lesions.
But most disturbing was the diagnosis of a low pathogenic strain of
avian influenza among the quails.
The California state Department of Food and Agriculture confirmed three
cases of bird flu found at the L.A. Quail Farm. This strain, however, is
unlike the potentially deadly Asian avian influenza.
But if this type of bird flu can make it to the U.S., so too could the
widely feared H5N1 virus.
Brian Hicks has already prepared his New America Investor readers for
this exact event.
A few weeks ago he recommended a bird flu stock in his newsletter.
Today this stock was up 5% after lunch. Take a look at today's chart:
Now consider this for a minute.
The bird flu strain that was found in California was not even the deadly
H5N1 virus. and this stock is up 5%.
It doesn't take a rocket scientist to figure out what is going to happen
to this stock once the H5N1 virus is found in the U.S.
It's almost guaranteed.
To sign up to New America Investor and received your free report on
Brian's new bird flu play, click below.
[ Sign up now! <https://server.publishers-mgmt.com/nai/signupT.php> ]
- Luke Burgess
0 Comments:
Post a Comment
<< Home