When you listen to some of these "talking heads on a stick" one has to wonder if they are as smart as the media paints them! Take Michele Bachmann- the other day she was wagging her tongue and stated that if she was elected President that she would bring back $2.00 gas/gallon! Can you imagine such a feat! At this level Oil/barrel would be around $30-$35/barrel~ if that happened the drilling in the US would stop- the industry would collapse because the industry could not be supported by such low prices and our dependence would increase dramatically- even solar and wind could not compete with the collapsed pricing. The Middle East producers need higher prices as well in order to maintain their economic growth prospects. We saw in 2009 when Oil was around $35/barrel that we were in a deep recession and many oil and gas companies ceased operations. Even in Canada, Oil from Tar Sands became non-profitable. The Oil and Gas Industry has been one of the shining lights of this limp economy. The current price of WTI is around $85/barrel and with the latest technological advancements in the Oil and Gas Industry we currently have 1069 rigs drilling for oil~ We have not seen this number of active rigs since 1987! This number has jumped 60% this year! Mrs. Bachmann, @ $35/barrel, we would be lucky to have 300 rigs drilling and our dependence would be gushing and the millions of Oil and Gas workers would be collecting foodstamps and welfare! Another moron that we need to mention is Mr. Trump- he also believes that the Middle East producers control the price and he also believes that Oil should be around $30/barrel! A few weeks ago he was on FOX NEW talking to "Greta" and she did not even question his statement. We all know that there are huge reserves in the Middle East, but again costs have increased and managing their economies dictate pricing. All of the other Countries that produce Oil- Canada, China, Brazil, Norway, Russia and many others, could they really produce Oil @ $35/barrel?
If Oil drops to these levels it is because of Recession/Depression worldwide!
Of course Comrade Obama wants to tax the Oil and Gas Industry because they make too much profit, but if you take a closer look you will see that their margins are much smaller than say Walmart or Apple. Apple has a higher market-cap and is more profitable than Exxon-Mobil. Our supreme leader does not want to increase the tax burden on Apple. Everyone hates the Oil Companies, but they are a bright spot of this pathetic economy, creating jobs, lessening our dependence on foreign Oil and reducing our dollars from being siphoned off to terrorist groups that want to destroy our way of life!
Let us not forget Warren Buffett, some of his comments are just plain silly. Hey Warren, if you want to pay more taxes why don't you leave your $47 Billion ( 2010 est.) to the federal government instead of the Gates Foundation~ donating it to Gates you pay little to zero taxes. You get "sweetheart" investment deals that the normal "jerk" could only dream of and most likely many of your investments are div yielding so the tax rate is much less or you play in the tax free bond area! Oh, Warren don't forget 2013 when dividends will be treated as ordinary income and additional taxes on Real Estate sales will be increased. Warren, you think that the economy is bad and sad now wait til 2013-2014 when Obamacare kicks in! Many and even most Democrats that voted for Obama should take some time and visit http://taxes.about.com/od/capitalgains or http://www.csmonitor.com/Business/Tax-VOX/2010/0408/What-will-the-capital-gains-rate-be-in-2013 and see how your "Universal Medical Coverage is going to cost you an "arm & a leg"!
Warren your bud Barrack needs to be replaced and the sooner the better. If Obama left office tomorrow the market would rally 2000 points and Obamacare would be repealed and business would start hiring.
In my opinion, as long as he remains in Office American Business will remain on strike!
If Obama was really a Capitalist and not a Socialist and wanted a better chance to get re-elected in 2012 he would in early Sept 2011 allow Companies to bring back foreign profits ( estimated to be over $1.5 trillion) into the US @ little to no taxes if they would create jobs, lower the tax rate on business in the USA ( one of the highest in the world), lower capital gains on Investment and dismantle Obamacare. This of course is only a dream~ the reality is that he will continue to dismantle this great land and dig us deeper in a hole of dispair. Obama, only 17% believe that we are heading in the right direction!!!
THE 8 OIL & GAS COMPANIES THAT SHOULD BE BOUGHT!
Once again, the investors that pays for better treatment received their phone call on Sunday (August 28, 2011- super fast personalized phone service-- $1500.00/yr) to buy the recommended Oil and Gas Companies mentioned within this e-mail alert. Our special $75.00 investor call( one time) even benefitted because they also caught the Oil and Gas rally on Monday August 29,2011.
The 8 Oils~ cenjf.pk, bexp, axas, sd, kog, mhr, pbkef.pk and oas.
Our #1 favorite at this time is Coastal Energy cenjf.pk or cen.to~ first recommended via Dec 23rd 2010 email alert @ $5.64~ We believe that Coastal is the cheapest and has the most upside potential of any of the mentioned Oils that we intend to brief!
#1. CENJF.PK~ www.coastalenergy.com
Read the July 2011 presentation & the July 28th 2011 news release.
Heavy insider buying during the month of July 2011
Three major Brokerage firms ( GS, First Energy & Jennings Capital) have Strong BUY Ratings on cenjf.pk with a target price of $19.00
End of 2nd Q production was around 10,000 bopd~ from recent release it has been ramped up to 17,000 bopd from recently completed wells.
There is 1 additional well flow tested @ 1000 bopd ( currently shut in), but is anticipated to flow @ 3000 bopd.
There are an additional 3 wells to be announced within days~ we anticipate another 3000 bopd!
cenjf.pk plans of drilling 8 more wells offshore in the Gulf of Thailand before the end of 2011.
At the end of 2010 2P reserves was 51 MB~ it has been estimated that @ the end of 2011 that the reserves will skyrocket to 200 MB!
Estimates range between 25,000 and 35,000 bopd as an exit rate for 2011.
rev est. for 12/11 & 12/12 are $352 million & $636 million respectively and earnings of .75 and $1.63 respectively~ 112 million shares outstanding.
52 week range~~ $3.73-- $11.38~~ July 28th cenjf.pk was $9.52--current price $10.55
Coastal Energy in our opinion could easily double within the next 12 months if not sooner or be bought out! CENJF.PK is getting cheaper not more expensive. We rate CENJF.PK with a Super Strong Buy Rating~ this investment has the potential to be a "game changer"!
2. BEXP~ The Star & Stripes of the Bakken!
We first recommended BEXP @ around $3.45 during the late summer of 2009 and was actually the reason why www.saadvisory.com invested heavily in the Bakken. The Bakken has become a huge profit profile from our many selected investments, which continue to support our Oil based portfolio.
52 week range~ $15.06- $37.87
Rev est. for 12/11 and 12/12~ $429 million and $844 million respectively & earning est. of $1.39 and $2.47 respectively.
A must read is the August 16th 2011 presentation from the Energy Conference in Denver a few week ago.
Est. 15.5k boepd end of the Sept Q 2011.
The average well pays out under 2 years and it is est. that each well will continue to produce for 30 years.
BEXP has drilled 79 successful wells in a row and the 60 day average is 800 boepd. BEXP controls 375k acres in the "sweet spot" of the ND Bakken! A true core holding in the most exciting Oil and Gas acreage in the USA!
July 28, 2011 bexp was trading @ $31.38~ before today BEXP traded @ $27.65.
117 million shares outstanding and 5.6 million short.
During 2011, BEXP plans on drilling 74 wells and the capex for 2011 will equal around $669 million.
Unless the economy blows up and the stock market craters, we see little reason why BEXP could not double in price during the next 12 months or be bought out by an XON, HES or CVX.
We rate BEXP with a Strong Buy Rating @ current levels~ BEXP is the jewel of the Bakken!
#3. NEW RECOMMENDATION
OAS another pure play Bakken Oil & Gas E & P.
52 week range $16.12- $36.15<BR<>br> a much read is the August 15th 2011 presentation found within the website.
Capex for 2011 $627 million with 1100 net locations or 2400 total locations.
rev est. for 12/11 and 12/12 ~~$337 million and $655 million respectively and earning est. of .90 and $2.00 respectively.
92 million shares outstanding and 7 million shares short~ great fuel potential for stock appreciation.
July 28th 2011 share price $29.61- August 26th 2011 closing price was $24.39.
UBS & Morgan Keegan recently rated OAS with a strong buy rating!
2011 exit rate anticipated 12,500 boepd & 8-9 rigs drilling during 2011 and 12 during 2012.
Just another bakken player that offers investor huge upside potential either via organic growth or as a takeover candidate. We rate OAS with a Strong Buy Rating with a 100% appreciation potential during the next 12 months.
drilling in West Texas Overthrust & Permian Basin.
Review the presentation for August 17th 2011
Rev est. for 12/11 and 12/12 respectively are $1.46B and $1.94B with .10 and .42 respectively.
398 million shares outstanding & 32 million short! Huge fuel if stock starts to appreciate because of the market,crude prices & organic conditions within the company.
On August 26th 2011 SD closed @ $6.92 vs July 28, 2011 SD traded @ $11.60~~The shorts have been piling on most industrial groups and the Oils have been slaughtered because of the short attacks!
52 week range- $3.87- $13.34
www.saadvisory.com first recommended SD @ $5.23- sold 1/2 @ $11.27 ~ because of the dramatic drop in share price, we feel that going long term or looking for a short term trade is a smart move @ current levels.
New production high 7/26/2011~ 46,000 boepd
Recently raised $584 million as partial consideration for the conveyance of the royalty held by trust.
We like SD for the trade as well a long term investment opportunity.
#5. KOG~~ www.kodiakog.com
52 week range~ $2.43- $7.70
Price before today's blast off~ $5.58
recently raised another $160 million clams!
Another great presentation during August energy conference in Denver!
July 28th 2011~ share price $6.75
Rev est. for 2011 and 2012 respectively~ $138 million and $365 million. Earning est. of .26 and .76 respectively.
209 million shares outstanding and a "whopping" 24 million shares short as of August 15th 2011~ fuel for the "shorts" to burn alive in! ~~~ view as very BULLISH
KOG believes that the exit rate will be around 9000 beopd for 2011.
Like most of the oils~ dramatically off from 52 week high- offers investors a "steal of a deal"- KOG has the potential to be a mini bexp- we believe that KOG can double in price during the next 12 months or be bought out- take your pick!
We first recommended KOG when the shares traded @ $1.28 and continue to "crow" about the upside potential- Strong BUY Rating @ current levels.
Bakken, Eagleford & Permian Basin drilling
webcast~ 8/17/11 includes presentation
92 million shares outstanding with a huge short position as of August 15th 2011~ 21 million shares. This could yield a huge upside kick if investors decide that they want the oils
Exit rate for 2011 4500boepd
Rev est. for 2011 and 2012 respectively~ $74 million and $116 million & net income/sh of .14 and .39
July 28, 2011 AXAS traded @ $4.65~ on August 26th 2011 AXAS traded @ $3.31.The short piled on this stock like bees to honey!
52 week range~ $2.32- $6.16
We like AXAS long term & also believe that short trading during the panic modes at around $3+ and securing profits at over $4.00 can also work. We also believe that AXAS can double from current levels during the next 12 months~ they are players in all of the hottest areas of interest. We rate AXAS with a Strong Buy rating. We first recommended AXAS @ .96 and have been with this company ever since!
#7.MHR ~Friday's close $4.19
See August 11th 2011 presentation- We really like this company at the current price. A few weeks ago MHR had a market cap of $1 billion~ because of the recent blood bath the market cap has imploded to around $500 million.
52 week range~ $3.75-$8.66
MHR is a player in the Bakken, Eagleford & Marcellus Shale.
Current production is around 6000 boepd & has an estimated exit rate of 10,000 boepd for 2011.
124 million shares outstanding & a huge 24 million share short position as of August 15th 2011. Again, huge upside fuel if the herd turns to re-build their oil & gas holdings in the areas of interest that are the "hottest' in the Nation.
July 28, 2011 the stock price was $7.03!!
Rev est. for 2011 and 2012 respectively- $142 million and $280 million with earning est. of -.03 and .26.
MHR during 2011 bought 3 companies and used stock~ Nuloch($7.40), NGAS ($7.99) & Post Rock ($7.92)- not the greatest return for the past shareholders of these 3 companies, but a great opportunity for "smart investors," while the stock trades in the $4+ range!! We like this deal, we like management, we like the whole story and you will love the presentation! MHR, in our opinion, deserves a Strong Buy Rating and should be bought @ current levels for short and long term appreciation.
#8. PBKEF.PK~ www.petrobakken.com
See recent www.saadvisory.com email alert for July 14th 2011.~ visit corporate website and review the last presentation and review the 2nd Q earnings report and look at the exit rate of 46,000-49,000 beopd for 2011.
On friday August 26th the share price was around $11.53 with an .08/month dividend! The stock continues to be extremely oversold and should be a core holding for investors looking for juicy yield & juicy production growth during the next 6 to 12 months. PBKEF.PK is a E & P ~O & G in Western Canada. Bakken light oil in S Saskatchewan, conventional drilling in Saskatchewan and great results coming from the Cardium.
Excellent article found www.seekingalpha.com/article/286232~ a must read!
52 week range~ $11.04-$24.09
187 million shares outstanding
We like it and own it and believe PBKEF.PK offers huge upside potential from organic growth and always as a takeover candidate when you consider the price and discounted value!
1. We are & have always been a discounted value player & investor. Even though our portfolio is heavy in the Oil & Gas industrial sector we still believe that APWC remains the cheapest stock in our portfolio. It is too bad that every Asian company is lumped into this "China Syndrome" story. Please take some time and review the recent 2nd Q filing and review the last presentation that was delivered in San Fran during the Global Hunter Conference held during July 2011. We plan on attending the Rodman Renshaw (rodm) Conference Sept 11-13 2011 & visit with APWC as well as a # of Oil companies that we currently monitor.
One of these days APWC is going to erupt and all the nay sayers will have to count their lost profits!
We have not been paid by any of the listed investments within this email. We may buy, sell and/or hold stocks @ our own discretion.
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801 272 4761
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