Prepare to meet three of the most spat-upon stocks on the ASX.
In the popularity stakes, they make Donald Trump look like George Clooney.
Investors have spurned these three stocks since 2014.
They hate them still.
At time of writing, one of them just fell 31% in five trading sessions.
Each of these three ostracised stocks just became a SCREAMING BUY.
If you’re brave enough to buy now, I’m convinced something magical will happen.
An initial surge range between 37% and 216% within the next two weeks.
And that’s just for starters…
From there you could see ‘bagger’ gains over the following months in the 2,900% to 6,400% range.
Ever made 6,400% on a single stock play?
What about three?
Well, as I’m about to show you, this exact setup happened before, between early 2002 and late 2004.
And history could be about to repeat…
Ever heard the phrase: ‘The fix is in’?
Merriam Webster says the phrase is:
‘Used to say that the outcome of something, such as a game or contest, is being controlled or affected in a dishonest way. Example: It was obvious early in the game that the fix was in…’
As I’m about to show you, when it comes to the energy markets in 2018…
…The fix is in.
In a big way.
The mainstream media has no clue.
But even energy experts I respect have failed to clock this.
The last time this ‘fix’ was in, something quite remarkable happened.
And it happened to a group of quite unremarkable stocks.
Each stock had been lying listless, lifeless and dormant for months.
In some cases, for years.
Then, out of the blue, these stocks were ‘jump-shocked’ back to life.
As though someone, somewhere, shouted ‘CLEAR’ and applied a defibrillator to each of these ailing companies…
Source: Google Finance
If you’d owned Woodside Petroleum over the same time frame you could have made 594%. Santos… 510%. AWE Ltd… 1,414%. Karoon Gas… an eye-watering 6,400%.
If my reading of the market is right, you could see a similar resuscitation.
It’s going to involve several dozen stocks around the world.
But three of them are listed securities here in Australia.
It’s these companies that I want to introduce you to in the letter that follows.
I think you should buy these three stocks right now.
The ‘jump-shock’ effect on these three stocks I’m anticipating is likely to happen over the next 6–10 months.
This is bigger than any special profit opportunity I’ve come across in 20 years.
Bigger than the Queensland LNG rush back in the late 2000s. Bigger than the rare-earths price blowout of 2010–11. Bigger than the marijuana stock craze. Even bigger than the current Bitcoin bubble.
I realise this all sounds breathless and hyperbolic.
And if you’ve followed my work in recent years, you’ll know this tone is out-of-character for me.
My name is Greg Canavan, and I’m Head of Research here at Port Phillip Publishing.
I’m hardly a rabid punter.
I treat small-caps with caution.
I believe there are far more bad investments in the Aussie resources sector right now than good ones.
And I’m naturally sceptical of ‘hot new stock crazes’.
When someone mentions thousand-percent gains, dollar signs don’t appear in my eyes.
Alarm bells do.
But you need to hear me out here.
This is different from anything I’ve seen before.
And I’d guess you’ve never seen anything like it either.
At Port Phillip Publishing our focus is investment newsletters.
The two most popular are Australian Small-Cap Investigator and Resource Speculator.
These put you into stocks that could go up really high — and fast.
It’s my job as Head of Research to make sure all the due diligence is done on the analysis. I may be their boss, but I’m convinced the editors of these letters are the best in the business.
But I’ll level with you…
It’s special for a stock speculation to breach 100% in gains.
Our small-cap letter, for instance, currently has four recommendations with gains ranging between 100% and 470%.
That’s great going.
But that’s out of 32 live recommendations.
So that shows how rare ‘hundred-percenters’ are.
Speculations that bust 1,000%
are as rare as hens’ teeth…
Legendary investor Peter Lynch calls them ‘10-baggers’.
Stocks that go up by a factor of 10.
I’ve overseen four 10-baggers while I’ve been at the research helm.
Which makes what I’m about to show you a bit of a showstopper.
Because I’m not going to introduce you to one potential 10-bagger…
As I say, it’s antithetical to my nature to bandy around big percentage-gain claims willy-nilly.
So, from the outset, I invite you to be highly sceptical.
‘Extraordinary claims require extraordinary evidence’ was a phrase made popular by Carl Sagan.
Such is the case here.
You should examine the analysis I’m going to set out for you.
You should look at it sceptically.
You should do your own follow-up research.
And then make your own reasoned judgement.
But, if my analysis is sound, and you have money you can risk, you should buy the three stocks I’m about to introduce you to when the market next opens.
Because I’m confident of this:
You’ll not get a better shot at potential
10-fold gains in 2018 (or maybe ever…)
I’ve got three stock plays for you.
You may have heard of them.
But I doubt it.
As I said, all three are real ‘ugly buggers’ at the moment.
No one’s going near them.
But you should hold your nose, because that’s about to change…
And it’s all because of a unique setup in the energy markets.
I call this set-up ‘The Aramco Fix’.
It’s a situation that, at the moment at least, only a few privileged insiders are aware of.
According to The Financial Times on 22 July, it has some investment bank insiders…
‘Like cats transfixed by a pigeon…’
It has me transfixed too…
Something big is about to happen to oil.
Goldman Sachs, it was quietly reported on 11 August, has started fielding calls from its customers looking to ‘reallocate capital’ out of shale stocks and into my 'Trade of 2018'.
But you know what?
What no one seems to have realised is that there’s a way into this strange story for ordinary Australian investors like you.
A way you could milk what’s about to happen for HUGE potential gains.
Quick double- and triple-digits in a matter of weeks.
Rising into the thousands of percent from there.
That, as I’m sure you’re fully aware, does not happen often.
Now, I’ll be the first to admit: Energy and oil is contrarian as it gets right now.
The oil price has taken a complete shellacking.
The international benchmark, Brent crude oil, traded at US$115 a barrel in mid-2014. By January 2016 it had collapsed to around US$25 a barrel. That’s a fall of nearly 80%!
It has since recovered slightly, but investors remain sceptical. In fact, sentiment is downright horrible. Ben Van Beurden, the boss of oil major Shell, said in late July the company is preparing for an oil price that will be ‘lower, forever’.
If that isn’t a contrarian sign — telling you that prices have bottomed — I don’t know what is.
But, boy, it’s been a tough time for energy investors.
In Resource Speculator, for instance, we just had to stop out one energy play for a 28.9% loss.
A few contrarian analysts and bloggers (see right) are seeing deep value in oil stocks right now.
But they are in the minority.
And even they’re completely missing what I’m calling The Aramco Fix.
See, something is about to happen that is going to turn the global energy market upside down and inside out.
And very quickly.
It’s forced me to break my self-imposed moratorium on extreme speculation.
And to tip three energy stocks that are currently being shunned.
Oil and gas companies do much of their trade in deserts.
But, as far as investors are concerned, each of these three stocks are in sub-zero Siberia right now.
But these three stocks are
about to come in from the cold…
We are approaching a long-awaited ‘inflection point’ in the oil market.
And, if I’m right, it could jolt these three ASX stocks back to life in spectacular fashion.
As I say, this inflection point is due to something called The Aramco Fix.
It’s the biggest retail investment story of 2018.
But no one is telling it yet.
Not in the way I’m about to.
Which is what gives you a giant head-start…
It’s a story that starts in the Kingdom of Saudi Arabia.
It’s big in scope, so you’ll need to stick with me closely.
But it has direct ties to what I believe could be the very best stock investments on the ASX next year. Maybe over the next five years.
And I’m not just making that up.
There is a historical precedent for this.
And, if history repeats in 2018, you could stand to amass some serious gains. Give me a few minutes and I’ll explain…
The world’s wealth epicentre
is about to get even wealthier…
You don’t have to travel far down the King Fahd Causeway in downtown Riyadh, Saudi Arabia to sniff obscene money.
Skyscrapers disappearing into desert skies, garish monuments and state-of-the-art architecture like the Al Faisaliyah Center line the road.
Million-dollar Bugattis whiz past with the frequency of buses.
And then there are the malls…
A shopper strolls through a mall in
Riyadh, Saudi Arabia.
Source: The Arab Weekly
Garguantuan, spotless, air-conditioned palaces of luxury.
From golden iPhones to Burberry cufflinks to $100,000 Mont Blanc fountain pens — Saudi wealth is not subtle wealth.
And they have one of the most secretive corporations on the planet to thank for it.
The Arabian American Oil Company — Saudi Aramco — was founded in Saudi Arabia in 1944.
The Saudi government started buying it up bit-by-bit in the 1970s.
By 1980 it owned the whole thing, and changed the name to Saudi Aramco.
As The Australian Financial Review notes: ‘Revenues from the national oil company, Saudi Aramco, have long been the lifeblood of government spending.’
It is the world’s biggest oil company.
It’s really, REALLY big…
Bigger than Apple
and Walmart combined…
It is Warren Buffett’s company, Berkshire Hathaway…times FIVE.
It’s the size of Facebook plus Amazon plus Exxon Mobil plus Johnson & Johnson… plus change!
Why so big?
The reason is simple.
Saudi Aramco sits on the world’s largest proven crude oil reserves — more than 261 billion barrels.
It pumps 9.54 million barrels of crude oil a day.
Roughly one-tenth of the world’s oil demand. More than the entire production of the US.
As a recent article in The Australian put it: ‘The world’s biggest oil company keeps the House of Saud in power, bankrolled 60 per cent of the national budget last year, and is a paragon of efficiency in an economy otherwise mired in bureaucracy.’
Now, all of that is interesting.
But why should you care?
Saudi Aramco, if I’m right, is about to wield its immense power to cause a dramatic ‘inflection’ in the oil market in 2018.
I call this inflection The Aramco Fix.
The old saying goes that if you want to get really rich…go back in time and trade stocks with full knowledge of the future.
Well, we can’t do that.
But I can offer you the next best thing…
An ‘inflection point’ in the oil market like the one I see coming has happened once before.
And when that happened, it sent certain energy stocks to stratospheric heights.
Again, we’re not talking hundred-percenters here.
But 10-bagger-plus plays.
Take oil driller Isramco.
Prior to the last oil market inflection point, it was moping around the Middle East, sinking money into dry hole after dry hole. Going nowhere. Share price in the low dollars.
Then something happened.
Something, I believe, is about to happen again, within the next 6–10 months.
And it sent Isramco’s share price to the moon…
Source: Google Finance
Again I ask: Ever made 5,580% on a single stock play?
That’s $10,000 turned into enough money to drive a brand new Ferrari 488 away from the lot (with about $80k change in your pocket).
It happened before.
To dozens of energy companies here in Australia and around the world.
And, if I’m right, in a small window inside the next 6–10 months…history is about to repeat.
Quite simply, I’m sharing what I believe will be the greatest speculation of my career. A chance to potentially make an absolute fortune between now and the middle of 2018 by taking advantage of something I call The Aramco Fix...
It’s a historic event one energy expert calls every bit as shocking as‘ Gibraltar selling the rock’.
And, as I said, it all centres on the biggest, most-secretive corporation on Earth…
‘It’s time to start paying attention
to Saudi Aramco.’
— CNN Money
OK, listen up, because here’s where it gets really interesting…
In January 2016, Saudi Deputy Crown Prince Mohammad bin Salman Al Saud dropped a bombshell.
The Saudi government is going to sell about 5% of Saudi Aramco to the investing public in 2018.
Even just 5% will still make the offer the largest initial public offering (IPO) in the history of the world. By far.
Mohammad bin Salman is looking for a target price of $2 trillion dollars.
It will easily be four times the size of Alibaba’s previous IPO record, set in 2014.
Its float already has a nickname on Wall Street.
It is, simply, ‘The IPO’.
No wonder they’re transfixed.
‘The centrepiece of Saudi Arabia’s plans to transform its economy is the blockbuster sale of a stake in Saudi Aramco, reckoned to be the world’s most valuable company.’
— The Economist
Pictured: Saudi Deputy Crown Prince Mohammad bin Salman Al Saud
The fees on bringing JUST 5% of Saudi Aramco to market could be as much as $5 billion.
That shows you just how unbelievably massive Saudi Aramco is.
On 6 August, the UK’s Telegraph labelled it:
‘…a fees-fest for the armies of investment bankers, accountants, lawyers and consultants working for the Saudi oil giant, and a “liquidity event” of unprecedented scale that has got stock exchanges from New York to Tokyo salivating at the prospect of the biggest prize in flotation history.’
As you’d expect, several exchanges are fighting for this prize, including those in London, Hong Kong, Tokyo, and New York.
The London Stock Exchange (LSE) is leading the pack. But it will have to bend some rules. It generally requires at least 25% of a firm’s shares to be floated.
It should have no problem doing so.
A $2 trillion valuation would be equivalent to two-thirds the size of the LSE itself!
At 5% of that value, the listed part of the company would be a massive $100 billion.
But why are the Saudis even willing to part with 5%?
Why the Saudis are
‘selling off some crown jewels’…
As the Telegraph observed on 6 August:
‘…Aramco is so embedded in the Saudi national psyche, such an integral part of the kingdom’s society and culture, that the sale of even a small part of it is seen as a transformational event.
‘One senior Saudi banker said: “It is a very emotional topic. It is the crown jewel…”’
So, why are they doing it?
Simply: The Saudi government wants to put some eggs in other baskets.
They want to diversify the Saudi economy so it is not solely reliant on oil.
There’s a term for a country’s overdependence on a single industry.
It’s called the Dutch Disease.
Because when the Netherlands first started developing North Sea oil and gas, it sent wages and other costs soaring, making the rest of the economy stagnate.
The Saudis suffer Dutch Disease on steroids.
When the oil price goes south, the whole economy suffers.
Saudi Arabia, as you’d imagine, is the Big Kahuna of the global oil markets.
Except for the last year or so, as Oilprice.com puts it, the oil behemoth has been hammered by ‘…surging U.S. shale production, OPEC-member cheating and non-compliance, uncertain demand and a persistent supply glut that has kept prices at or below $50 a barrel.’
‘The IPO’ is Mohammad bin Salman’s masterplan to diversify.
He has a plan called Vision 2030.
Its goal is to reduce dependence on oil by creating other ways for the kingdom to create income.
It outlines a bunch of detailed strategies to do this.
But ‘The IPO’ is the linchpin.
The $100 billion raised from it is going to be pumped into the Saudi Public Investment Fund (PIF).
It will be the world’s biggest sovereign wealth fund.
The goal of this fund is to finance NON-oil related projects.
In other words:
Using oil money — to get AWAY from oil…
‘The state can no longer afford to allow see-sawing [oil] prices to disrupt its ability to govern,’ Middle East energy expert Jim Krane told The Financial Times.
Now, all this is causing a massive buzz among energy-market watchers.
And bankers and lawyers vying for contracts are licking their lips.
But why should YOU care about any of this here in Australia?
Why am I convinced what’s about to happen with Saudi Aramco is going to result in massive upward re-ratings of not one but THREE Australian-listed energy stocks?
Well, look, I’ll be honest…
I am as mystified about the global economy as the next person.
I don’t know if there will be inflation, deflation, disinflation or stagflation in 2018.
I don’t know if Donald Trump will finally do something to rattle the markets.
I don’t know if the monetary mess the world finds itself is overblown. Or if it will end in a new financial crisis.
I don’t know if this long stock bull market will end. Or just keep going for a ninth year.
No one knows the answers to these questions.
But there’s one thing I’d bet my house on going into 2018. And it’s this…
The Saudis WILL NOT ALLOW
cheap oil on ‘Float Day 2018’
They won’t let that happen.
Their power over the market is too great.
And the stakes for the kingdom are too high.
At time of writing, the oil price is hovering just below $50 a barrel.
Per Magnus Nysveen, a senior partner at Rystad Energy, reckons it needs to be trading at $70 a barrel to support the prince’s IPO estimate of $2 trillion.
I’ll just repeat that…
To get the price they want, the Saudis need oil trading at a bare minimum of $70 a barrel.
Preferably much higher.
That would be a very big ask.
Surely, they can’t just ‘command’ oil prices higher by sheer force of will over the next 6–10 months?
My answer to that is: Yes they bloody can...
‘The key to Aramco’s IPO price
— and the success of its offering
— will be the value of crude…’
Saudi Arabia, after all, has been largely responsible for LOW oil prices for the last two-and-a-half years.
The kingdom has had a deliberate policy to flood the markets with oil.
The goal was to try and strangle their most dangerous new competitor — US shale gas — with low energy prices.
But this policy is about to shift.
‘The Saudis have to play differently,’ an OPEC source from a non-Gulf country told Reuters. They simply won’t get anywhere near the money they need selling Aramco in 2018 ‘…if the price of oil is miserable.’
They need the oil price higher.
And, by hook or by crook, I think they’re going to make that happen…
Indeed, the shift has already begun…
From the same Reuters article, titled ‘Tired of cheap oil, Saudis eye price boost to drive Aramco IPO’ (my emphasis added):
‘…Two years after triggering an oil price war, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco....
…OPEC in November 2014 made a landmark policy shift, led by Saudi Arabia, refusing to cut production by itself in the hope that lower prices would discourage higher-cost competitors that had eroded the group's market share
‘…behind the scenes, Saudi Arabia has been working towards boosting prices, rather than leaving that job to market forces.’
In fact, it’s now not just happening behind the scenes…
The Organization of the Petroleum Exporting Countries (OPEC), of which Saudi Arabia is the leader, met in Vienna, Austria on 25 May 2017.
At that meeting, OPEC President and Saudi Arabia’s Energy Minister Khalid al-Falih openly pledged to do ‘whatever it takes’ to defend oil prices.
He said Saudi Arabia and Russia — which both produce over a fifth of the world’s oil — had decided to extend supply cuts well into 2018.
Take a look at what’s happened to the oil price since…
Oil prices since the start of the year
Source: Google Finance
As Oilprice.com put it on 20 June:
‘The country needs higher prices in the next year in order to support the Aramco IPO.
‘…in the short-term, the importance of the IPO next year is playing an increasingly important role in how Saudi Arabia is approaching the current supply glut.’
Look, there’s a lot of chatter about ‘The IPO’.
But no one, from my vantage point, is talking about this…
A concerted effort by the Saudis to ramp up the oil price before ‘The IPO’ happens in 2018.
And, specifically, how it might impact currently-dormant oil and gas stocks.
My gut instinct on this is so strong that I’ve decided to put together my first ever Special Trade Dossier on this opportunity. It comes in two parts. Part one gives you all the background analysis. It’s called The Aramco Fix Part 1: The Kingdom’s Secret Plan to Reverse the Oil Price Revealed.
This is where I make my case, with more detailed analysis, for a Saudi-manipulated revival in oil prices for the rest of this year, and going into 2018.
But it’s Part 2 you’ll really want to pay attention to…
THE ARAMCO FIX
Three Potential 10-Baggers to Buy in the Lead-Up to ‘The IPO’
Right now, many oil stocks are at rock bottom.
Energy investors over the last three years must feel like they’ve been run over by a herd of elephants. BHP has been an exception. But, for the most part, even shares in the biggest producers have been trampled.
In recent months, Seaport Global Securities LLC, Barclays Plc., Morgan Stanley, Macquarie Capital Ltd and Capital One Securities have downgraded a bunch of big oil companies, explorers and oil service providers.
‘…a rather more dour sentiment has again settled over the oil and gas industry…’ reports The Financial Times.
That, reader, is your opportunity…
In THE ARAMCO FIX, I lay out compelling analysis that suggests you could see a 30–40% jump in the oil price inside the next 6–10 months.
And that this could send three specific ASX-listed energy stocks soaring.
Again, I’m not just making that up!
We can look back throughout history to see what took place when the oil market experienced the same kind of inflection point.
Between April 2002 and February 2003, the oil price went from $37 to $49.
That was a 32% rise in just 10 months.
That 32% was enough to set off a chain reaction among small and mid-cap energy stocks around the world…
|National Oilwell Varco||128%|
Those gains were not made over years.
Each of them was realised in 12 months or less.
How would you like to have a portfolio of gains like that in a year’s time?
Many of them went on to bust through gains of 1,000% in the following years.
I believe that there is a very good chance this will occur again between now and the end of next year.
That’s why I’m calling this my
‘Trade of 2018’
But, as I said, I don’t want you to just take my word for it.
All of the analysis is outlined in full in my first ever Special Trade Dossier.
As I say, it comes in two parts.
The first part makes the case for the fix itself. Part 2 explains how you could potentially exploit it, and is titled: Three Potential 10-Baggers to Buy in the Lead-Up to ‘The IPO’.
I’m going to show you how to download a PDF version of both parts to your computer in just a second.
But know this: Just putting this report together has been a very unique exercise for me.
As Head of Research, I work closely with editors at Port Phillip Publishing that recommend ultra-speculations.
Rarely, if ever, do I personally pull the trigger on one myself.
Sometimes, though, a historic situation presents itself that DEMANDS you break your own rules…
THE ARAMCO FIX makes the case for what is the greatest speculation of my entire career.
It’s incredibly risky.
And it’s certainly no sure thing.
As I show in the dossier, the Saudis face huge challenges to get the oil price up — and keep it up — by the time the float comes around.
Part of that is the amount of oil coming online from other countries like Libya and Nigeria.
Another huge challenge to The Aramco Fix will be US production of oil from the shale rocks located at the Permian Basin.
Production is set to grow by around 780,000 barrels a day by the end of the year, with more to come in 2018.
But, as I show in the Special Trade Dossier, the Saudis have some tricks up their sleeves to counter these challenges.
I repeat: The kingdom will not let oil prices remain low as they pitch Saudi Aramco to global investors.
As energy researcher Gregory Brew writes in Oilprice.com, the Saudis are about to undertake significant measures to bolster oil prices in the coming months: ‘The country needs higher [oil] prices in the next year…’
Some of these bolstering measures will be right out there in the open.
As a swing producer, Saudi Arabia can take oil off the market to push the price up.
Indeed, they’ve done that this year.
OPEC, of which Saudi Arabia is the leader, agreed to cut their output by 1.2 million barrels of oil per day until March 2018, in order to ease the global oil glut. Russia and other non-OPEC producers agreed to reduce their output by half as much.
But, as I show you on your Special Trade Dossier, Saudi Arabia hasn’t even started to manipulate prices higher yet.
If the Saudis are successful, the potential gains in three certain stocks could be massive…and immediate.
So much so that I’ve made the decision today to come out of self-imposed speculation exile.
And that brings me to your first potential 10-bagger…
ARAMCO FIX STOCK #1
The ‘asymmetric’ play — trading at a 95% discount — that’s about to lead Aussie wildcatters out of the wilderness
This stock’s fall from grace has been spectacular.
From peak to trough, the price has nosedived 95%.
That’s right: it’s worth 5% of what it traded at just a few years ago.
At the time of writing it’s only a few cents above its all-time low.
The broader market has ditched most small oil explorers and producers.
But the exodus out of this stock has been on a different level.
Analysts have long stopped following what this company is doing.
Of course, just because a stock is dirt-cheap doesn’t make it a great buy. Obviously.
But amid this complete coverage black-out surrounding this Aussie oil minnow, the market seems to have missed something huge…
These guys inked a transformational deal back in March this year.
This deal has resulted in the company now producing high quality crude oil that attracts a premium price to Brent Crude (which in turn trades at a premium to West Taxas Intermediate crude).
This is really big.
Australian oil output has nosedived as drilling activity has fallen to lowest level in decades.
As upstreamonline.com points out:
‘Just one new offshore project proposal has been submitted to the national regulator since 2014 — the ConocoPhillips-led Caldita-Barossa development. This is a far cry from when new projects came thick and fast in the years before 2014.’
So, it’s quite remarkable the market has not picked up what this company is doing.
Even at current low prices and the current production rate, the gross margin per barrel is 50% at a minimum. That’s very impressive, and leads to strong cash generation.
Planned production increases will expand this margin even more.
This is a sound buy, simply based on the facts above.
But then you throw ‘The Aramco Fix’ into the mix…
I outline my complete thesis in The Aramco Fix Part 1: The Kingdom’s Secret Plan to Reverse the Oil Price Revealed.
I’ll show you exactly why I think you could see a massive move in oil and a huge move in some of the speculative beaten down oil and gas plays.
If I’m right, I believe this play will lead the charge.
If oil prices experience a dramatic rebound, as I predict, this company will get more cash flowing in the coffers. And you could see this dirt-cheap stock go super-stellar.
There’s plenty more acreage to explore, too, so the prospects of material increases in production down the track are good.
And, as I said, the market has completely missed this.
It’s not even paying attention.
If I’m wrong?
There’s a good chance this stock could STILL go up, for the reasons outline above.
Either that, or nothing much happens.
This is known as asymmetric risk. All good investors look for it. That is, you look for opportunities where your upside reward is multiples of your downside risk.
This actually applies to each stock play in THE ARAMCO FIX PART 2: Three Potential 10-Baggers to Buy in the Lead-Up to ‘The IPO’.
Before you download this PDF, there is one thing you need to be clear on.
If I’m right here…and the oil price defies expectation and keeps rising over the next 4–6 weeks…these stocks I’ve selected could roar back to life super-fast.
You’d be amazed at how reactive certain small energy companies are to inflection points in the market.
Let me show you what I mean…
On 16 June 2014, Brent crude oil peaked at $116 a barrel. For the next 19 months, its price nosedived over 70% to a low of $28 on 20 January 2016.
Then there was a rebound, which really took off late February/early March 2016…
Here’s how five fairly well-known North American oil stocks reacted in just the first five trading days of March 2016…
Look carefully at that chart.
These are not small-cap stocks by any means. They’re big drillers.
Each soared between 37% and 216% in just five trading days as soon as the oil price came back to life.
And each was coming off massive 12–month losses.
My point is: You need to get ahead of this story NOW.
Because if this story develops as I predict…
…the three plays I’ve selected will get away from you before you know it…
By the way, those stocks in the chart above?
Here’s how they’ve performed in the last 12 months…
|Seadrill||— down from $4.59 to $0.33|
|Marathon Oil||— down from $19.28 to $11.20|
|Chesapeake Energy||— down from $8.20 to $4.38|
|Bonanza Creek||— down from $40.60 to $25.76|
|Denbury Resources||— down from $4.29 to $1.27|
That’s an indication of just how beaten-down this sector is.
And it shows you just how much upside there is if I’m right about my ‘Trade of 2018’.
Of course, as I said, those are big mid- and large-cap American drillers.
I’m targeting smaller-cap Australian companies where the potential upside could be even more explosive.
Which brings me to:
ARAMCO FIX STOCK #2
Beaten-up 7-center sitting on vast, untapped gas assets
At the height of the last oil price boom this stock was trading at just under 40 cents.
Now it trades around 7 cents.
But the fact that it’s multiples cheaper is not what makes this company such a compelling buy.
It’s about to bring several huge Queensland gas resources online. As I demonstrate in your Special Trade Dossiers, gas prices are interlinked with oil.
From November 2014 to March 2015, Brent crude oil and natural gas prices both fell dramatically.
There is a high level of dependency and similar price movement for the two commodities.
So… if the oil price experiences a sizeable rebound in the next six-to-eight months, so should the value of this company’s vast, untapped gas assets.
And they are vast…
One is near existing pipeline infrastructure and can be developed in the short term. It holds 103 petajoules of contingent resources (16.8m barrels of oil equivalent).
This Aramco Fix play plans to increase and then convert these resources into the firmer category of reserves… and then market the gas to potential buyers.
It can either sell gas to LNG exporters or to the demand-hungry east coast gas market, where prices have tripled over the past 10 years.
If it does this, as I predict, amidst a dramatic recovery in oil and gas prices, then you could see a massive and quick rise in this 7-cent share.
This company has another ace up its sleeve…
Another licence for ‘stranded gas’.
A contingent resource of 3,000 petajoules, which is a massive 490 million barrels of oil equivalent. This is enough to supply all east coast gas demand for 6 years.
The initial project holds around 50 million barrels of oil equivalent, but the aim is to bring the other areas into production too.
And get this…
They’ve just signed a MOU with a gas pipeline company to investigate building a pipeline linking these massive resources to the east coast gas market.
The stock is virtually unknown.
To be honest, it would be a sound buy right now on its own merits… even if my predicted bounce-back in oil prices doesn’t happen.
If it does happen — the tailwind behind this share price will be a sight to behold.
It has a market cap of only $85 million.
I believe it could soon be worth multiples of that by this time next year.
You’ll get everything you need to know about this stock in part 2 of first ever Special Trade Dossier: THE ARAMCO FIX.
As I have said, extreme speculations are not normally my cup of tea.
And that’s probably a good thing.
You can’t have a mad punter in charge of research at the biggest independent financial newsletter publisher in Australia.
My job is usually to be a party-pooper.
To look at everything through an ultra-sceptical lens.
But I WILL say this…
When I DO tip high-risk/high-reward plays, my record is sound.
I also run a newsletter called Crisis & Opportunity.
If you’re already a subscriber, you’d know there are just five very high-risk speculations currently in my portfolio (not counting my three new recommendations tied to the Aramco Fix trade).
At time of writing, these speculations are sitting on gains of 5.8%, 11.5%, 33.9% 38.89% and 59.5% respectively.
Those are decent gains.
Also, with speculations, you expect at least a few losses among five. At the moment, we’ve lucked out, as all our speculative punts are in the blue.
But be clear:
The Aramco Fix Trade is ‘next level’
I’ve not tried anything like it before.
Again, it’s very risky. You shouldn’t bet a cent more than you’re prepared to lose. Not one of these three plays are a sure thing. So you should stick rigidly to my suggested stop-losses.
In a moment, I’m going to show you how to download a password-protected PDF version of THE ARAMCO FIX PART 2: Three Potential 10-Baggers to Buy in the Lead-Up to ‘The IPO’.
That’s as well as the first part, which lays out the analysis and rationale of my case for Saudi-manipulated higher oil prices next year.
Read it, study the analysis, and act upon my recommendations if you believe that my selections are worth punting on over the next 6–10 months.
There’s no big fee for this report.
I’m not trying to hook you into some expensive trading service.
A small favour I WOULD like to ask in return is that you take a little look at my newsletter, Crisis & Opportunity.
Don’t worry: There’s no obligation.
You don’t have to stay on as a subscriber.
I just want you to take a look at my investment approach, and how it’s working in current conditions, for 30 no-obligation days. You can KEEP my Special Profit Dossier even if you decide not to stay on as a subscriber.
How to become a smarter investor than anyone you know
You may have noticed that I don’t promote Crisis & Opportunity that often.
Part of the reason for that is that I don’t like to blow my own trumpet.
But another reason is that it’s not a newsletter for everyone.
It’s not purely racy ultra-speculations like my oil ‘Trade of 2018’.
I don’t want you to sign up thinking trades like that will be the norm.
Instead, the aim is to help you significantly outperform the returns of typical ‘buy and hold’ investors.
See, what a lot of newsletter writers chasing massive gains forget is that there is only one scorecard in the market. It’s your portfolio balance.
My aim is to give you the best possible chance to ensure yours is constantly growing.
And we do that by using something called the ‘Fusion Method’.
This method combines traditional valuation analysis with technical, or charting, analysis.
I pick fundamentally-superior businesses trading at a cheap price. And that analysis is ‘fused’ with technical analysis to time entry points and increase your chances of success.
Occasionally there will be some kind of additional X-Factor that makes it an even more compelling buy.
This is the case with each of the stocks outlined in THE ARAMCO FIX.
As you will see if you take a 30-day trial, we have employed the Fusion Method with considerable success over the last three years.
Since adopting the Fusion Method in November 2014, we’ve outpaced the broader market by 3-to-1.
Stop-losses are an integral part of this strategy. It’s what stops a small loss turning into a potentially massive one.
By protecting your downside via a stop-loss strategy and allowing your stocks to run on the upside, your chances of beating the market improve markedly.
You’ll find a stop-loss strategy for each of your Aramco Fix plays. While they are high-risk investments, we can control that risk by protecting the downside with a stop-loss strategy. And if we get it right, we’ll let them run, and run, and run.
The only hard and fast rules of my Fusion Method are:
- Buy a stock when it’s in an emerging uptrend.
In other words, I want you to swim with the tide, not against it. And:
- Ensure there is a good fundamental story behind the stock pick.
Combined, both rules ensure the technical and fundamental attributes of a stock are aligned. This analysis ‘double-shot’ ramps up your odds of success.
And I can tell you now: I’ve seen no case where the story and charts are so perfectly aligned than with my oil ‘Trade of 2018’.
But if you want in on this ambitious energy trade:
You need to pull the trigger NOW
You must get into this trade while everything still seems normal...before this story is exposed. That means now.
The oil price may have turned a corner.
But energy stocks like the one above remain in the doldrums.
They’ve been the worst performers in the MSCI World Index this year. 89 energy companies on the index have lost a combined $153 billion in 2017.
Many analysts are convinced the oil price is going to drift around $45 to $55 in 2018.
I think they’re wrong.
But I also think that will become apparent very soon.
Your window to buy these stocks while they’re still so crazily cheap is closing.
As you will see when you download my Special Trade Dossier, this is because the Saudis have ALREADY STARTED to pull levers ahead of next year’s IPO.
On Monday, 24 July 2017, the Saudis pulled another lever.
They announced that, from August 2017, their oil exports would be limited to 6.6 million barrels a day.
That’s 400,000 below recent levels.
It was enough to send Brent crude oil to $50 a barrel.
But you need to remember that, only three years ago, the price was well over $100.
There is enormous room for the price to move upwards.
And, as you will see in THE ARAMCO FIX, the Saudis could be about to make that happen in lightning-quick time.
And there’s an excellent chance certain undervalued energy stocks are about to get jump-shocked back to life.
You could see the rises towards 100% and far beyond starting literally any week now.
When that happens, you’ll be too late to get into these stocks while they’re still lying lifeless on the gurney. And nowhere is this more the case than with your third Aramco Fix stock play…
ARAMCO FIX STOCK #3
Tiny explorer could go from 8 cents
to 52 cents in a heartbeat.
(This one’s already moving…)
OK, this one’s really interesting…
In a way, it’s the most urgent buy of the three Aramco Fix plays.
Because these shares may have already started their move…
At the time of writing, one of them just fell 31% in five trading sessions.
Now, even so, this share is still down -30.91% over the last year.
But bullish momentum is building… despite there being no movement in oil prices yet. And I think I know why…
This company is a tiny oil and gas explorer and developer operating in the Cooper Basin.
It’s in the process of commercialising its first gas project. (As I mentioned, gas prices are closely link to the oil price. If we see oil prices rise in the next 6-10 months, gas explorers will reap the same rewards as oil explorers…)
But why is this stock already moving?
These guys have just signed a five year supply agreement with their first customer, receiving a $6m gas pre-payment as a result.
This company only has a puny market cap of just $15.5m and a cash balance at the end of June of $7.5m.
So that’s BIG money for them.
The reason is this company is sitting on 3c reserves of 672 billion cubic feet of gas.
That converts to around 116 million barrels of oil equivalent.
And yet the market only values this company at around $15 million!
These guys have been under the radar for some time.
That may have just changed. But only just. You can still get stock in this company for under 8 cents.
Make no mistake: this one is a potential ten-bagger.
Even if the oil markets don’t fire back up as I expect in 2018.
I’m actually not alone in claiming that.
A high-profile broker has just come out and said he predicts an imminent valuation explosion ‘to 52 cents per share’.
Now, that’s based on CURRENT oil and gas prices.
If we see the explosion in those that I predict — even if it’s just short term — then this could turn out to be the most explosive stock you ever own.
With your permission, I’d like to send you my full briefing on all three opportunities right away.
The only thing I ask you do in return is take a no-obligation 30-day trial of Crisis & Opportunity.
You can test-drive my advisory service for a full 30 days, obligation-free.
But it’s important.
If at the end of those 30 days you don’t wish to continue — for any reason at all — just contact my customer service team and you’ll receive a full refund.
If you’re familiar with our work at Port Phillip Publishing, you’ll know that a 30-day trial period is standard practice.
This is rare in the financial advisory business.
I am a firm believer that no one else is responsible for your wins and losses but you. I can use my knowledge and experience to help you along the way. But, ultimately, you are the one charting your course.
If what I’m doing doesn’t align with your own goals, you should let me know inside the trial time and we’ll refund every cent of the (very small) subscription fee.
No hard feelings.
And you can keep both ARAMCO FIX reports with my compliments and goodwill.
I’d give priority to reading that report immediately.
As I hope I’ve made clear, this opportunity is urgent.
If I’m wrong, nothing will happen.
If I’m right…things could start to happen in the blink of an eye.
You’ll want those three Aramco Fix plays safely locked in your portfolio before that happens.
I then want you to focus your attention on one of my most recent monthly issues. It’s called:
‘The Market Secret No One
Wants to Know About’
I want you to read this issue as soon as you start your 30-day trial for two reasons.
First, it’s a great primer on the Crisis & Opportunity investment philosophy. It explains exactly HOW we’re managing to beat the market by 3-to-1.
Second, this issue also highlights two more urgent stock buys.
Like your three Aramco Fix plays, these two stocks have fallen considerably from their highs, and are now starting to turn the corner.
They are also buys that demonstrate the Fusion Method in action.
Fundamentally, they stack up.
But I’ve been waiting for the charts to confirm the fundamental story. That buy signal pinged on one Tuesday in late July.
As you will see when you read the issue, the move that followed was emphatic. And I think there are massive gains to come from these two stocks in 2018.
There’s one other resource I’d like you to look at during your test-run of my advisory…
‘The Fusion Method Revealed’
This report is perhaps even more valuable than stock recommendations.
It shows you how to use the Fusion Method yourself to pick good quality companies that are trading on a relatively cheap basis.
The overriding aim is to pick stocks that are good value.
Value-investing is tricky because many stocks that look cheap deserve their low rating. What’s more, cheap stocks could often become much cheaper.
Charting analysis provides important clues when trying to judge whether a cheap stock ‘deserves’ to be priced lowly...or whether it might continue to get cheaper in the months ahead. Crisis & Opportunity is the only investment advisory in the Port Phillip Publishing stable.
The Fusion Method Revealed shows you how we do this. And how you can employ this method yourself to buy the right stocks at the right time.
Also, in the first days of your no-obligation trial, I’d give some attention to the Crisis & Opportunity buy-list.
You’ll be granted full, password-protected access as soon as your trial begins.
I’m looking at the portfolio now and, out of 19 recommendations, 10 are marked as active buys, and the rest are holds.
Unless something very extreme happens in the markets, you will receive at least one new investment opportunity each month.
Occasionally, when an especially time-sensitive situation arises, I will send you urgent buy instructions via email.
This will be rare.
Again, my approach is to analyse and identify quality businesses selling ‘on the cheap’…and then ‘time’ entries with technical analysis to give you a better chance at success.
It’s this fusion style of technical and fundamental analysis that’s enabled us to beat the market by 3-to-1.
So what will you pay to become a Crisis & Opportunity member?
I’ve kept my newsletter among the most affordable that we offer at Port Phillip Publishing.
Just $149 per year.
I know financial advisers that charge more for a single HOUR of their time.
That small investment includes the both parts of the Special Trade Dossier we’ve been talking about in this letter.
Plus instant access to the Crisis & Opportunity analysis archive and details of my full stock buy-list.
And I’ll continue to send you my monthly stock recommendations, as well as weekly email updates on the stocks on the Crisis and Opportunity buy-list.
When you do the numbers, you’re looking at just over $12 a month for the lot.
I don’t know of another advisory outside Port Phillip Publishing that comes close to offering you the in-depth and quality analysis you’ll find inside Crisis & Opportunity for that price.
Remember, you also have a full 30 days to trial my service.
If for any reason you’re not happy within those first 30 days, simply contact my customer service team and I’ll put every cent of that $149 straight back in your account.
But, to ensure there’s nothing stopping you from joining today, I’m going to sweeten the deal even further.
Join Crisis & Opportunity now and you’ll
pay just $49 for your first year…
a 67% discount
You’ll receive everything we’ve talked about today…PLUS you still receive a full 30 days to test-drive my service.
All for $49.
I’m sure you’ll agree that’s a fantastic deal.
Remember, you have a full 30 days to test-drive Crisis & Opportunity.
Study my analysis, ‘paper trade’ my recommendations, download and flip through my special reports…
And if at any time within your first 30 days you are not 100% over the moon with my service, for whatever reason, simply contact my customer service team for a full and courteous refund.
If you’re not happy, then I won’t be either. And you’ll have a full 30 days to try out the service.
Click here and you’ll go through to a secure order form.
Spend a few minutes completing it. You’ll then be sent an email showing you how to download THE ARAMCO FIX PART 1: The Kingdom’s Secret Plan to Reverse the Oil Price Revealed and THE ARAMCO FIX PART 2: Three Potential 10-Baggers to Buy in the Lead-Up to ‘The IPO’.
Click here to start your 30-day trial subscription today OR click on the ‘Subscribe Now’ button below.
Editor, Crisis & Opportunity