Worth A Look Anadarko

Anadarko (APC) is one of the largest independent oil and natural gas explorers and producers(E&P) in the world. I believe it will eventually become a takeover target and that’s why I have recommended it many times over the past few years with very profitable results.

In late November, for example I recommended APC and after writing some covered calls against the 400 share recommended position was able to lower the cost basis on that position to $78.61 a share. That position was closed out at $85 when the shares, or those remaining were assigned at expiration, the covered calls rallied into the money.

Those following my recommendation should have netted approximately $6.39 a share times the 400 shares recommended for a profit of $2,556 net profit. A profit of about 8% in just under 3 months ago.

I recommended re-entering APC with 400 shares at $82.50 in February because I believe the E&P is a prime takeover target, that could receive a merger/buyout offer of $128 to $134 a share.

The institutional analysts covering APC are starting to ALSO turn bullish – something I expect most analysts on Wall Street didn’t think would happen this quickly. Consider for a moment the pessimism in the oil market just a few months ago with major analysts predicting $30 oil.

Now most analysts are turning bullish on APC with targets has high as $117 a share.

Erlangerchartroom.com sentiment indicators are STILL leaning bullish but creating enough concern about a retest of its April breakout that its share price is dipping below $88 a share. This is setting up an incredible buying opportunity. WTI is now trading for over $60 a barrel again. I’ve predicted we would see BRENT claim back between $70 and $75  before the end of the year, with a nice rally into the beginning of summer.

apc

Recommendation: Open a new position on a dip to $88 a share or lower. Double your positions in the event that APC dips to $86 or lower. This should be a good money maker if you get your shares at these levels!

My upside target is over $100 by the end of the year assuming there is no takeover or merger. If one materializes we could see APC’s share price vault over $120 a share.

Gold Prices Plunge! What Does This Mean For Its Future?

“The yellow metal is down 24 percent from its highs. Is this the end of the gold bull? Or is it a temporary correction?

“I believe it’s temporary! In fact, I expect to see huge amounts of capital flowing back into gold, taking the prices far above their previous highs. Here’s why!”

We’re only 4 months into 2013, and we’ve already had a series of historic financial crises.

Investors have been bloodied in multiple markets. And the battering hasn’t yet run its course.

For maximum success in our investing, we need to anticipate the strongest trends, and get in front of them. Right now, one of the largest global trends is…

Fear!

Investors are scared, and rightly so. Even the assets that used to be safe are risky now.

Nevertheless, wherever there is danger, there is also opportunity. When oceans of capital move from market to market, there are big winners and big losers. If we want to flourish as investors, we need to follow the money. We must anticipate where it’s going, and get there first. That’s when tremendous profits can be made.

Right now, the world is awash in liquidity that’s flowing from one asset to another. The markets are scared and confused. That’s why we’re seeing such truly bizarre events, like a crash in the price of gold even as global central banks have printed almost $17 trillion (!) in new money. [Read more…]

A Small Island in the Mediterranean Sea Reminds Us of Risks of the Global Financial System

Another Energy Company Recommendation

Summary

  • The Cyprus banking crisis was a major recent event, and it reminds us of the global risks investors face.
  • The markets reflect the many positives of the economy: an accommodative Fed; low inflation and interest rates; earnings and cash flow growth; improving real estate markets; energy is a bright spot in the economy; alternative investments potential are limited making stocks attractive.
  • The markets are up about 11% year-to-date, how much further can they go?
  • Last month we looked at the U.S. outlook for oil, this month we look at the global oil outlook
  • Global demand is expected to increase in 2013.
  • Global surpluses have improved, and is helping stabilize prices but not bring them down significantly
  • I try to answer the questions, how much oil does the world have, and how long will these global reserves last?
  • This month’s recommendation is another high yielding Canadian energy company. [Read more…]

“Don’t Be Deceived: The Shortage of Cheap Oil is Real, and Long-Lasting!”

“Recent media reports claim that new reserves like the Bakken formation will provide abundant oil, make America self-sufficient, and bring oil prices back down. Rubbish!

“Oil prices will remain high for years to come. Here are seven reasons why!”

As the name of this publication indicates, we focus our investing efforts on gold and energy—especially on crude oil, the most important form of energy in the modern economy.

There’s been a gusher of news reports lately, telling Americans that we’ll have abundant crude oil for the next decade or more.

For example, the current World Energy Outlook report from the IEA (International Energy Agency) predicts that just five years from now, the United States will pass Saudi Arabia to become the world’s largest oil producer. The New York Times went even further, reporting that the US is on track to be “all but self-sufficient” in oil.

Even Harvard University has joined the fun. It published a report called “Oil, The Next Revolution: The unprecedented upsurge of oil production capacity and what it means for the world.” That report included cheery graphics like this one: [Read more…]

Collectors, Investors and even Rare Coin Dealers, Falling Victim!

Some new suggestions on how to buy and sell safely!

By James DiGeorgia

Over the years I have preached to collectors and investors just like you, to be careful not to give their rare coins and or precious metals to ANY dealer or broker for storage.

Having literally grown up and in the rare coin and precious metals market, I have seen virtually every scam and convenient bankruptcy possible. Among the most expensive have been the collapses of so called “independently audited” storage facilities as well as brokers and dealers that issue “certificates of precious metals deposits”.

In my opinion, if you don’t take physical possession, you’re setting yourself to be robbed. Always take physical possession, rent a safety deposit box and store your precious metals and rare coins on your own. The cost of insurance for even a great deal of value is very inexpensive.

Besides storage risk, there’s a growing risk of being scammed in the rare coin and precious metals business that you must not ignore. This rising threat is not only putting investor/collectors like you at risk, but this scam has also put professional dealers with decades of experience at risk. [Read more…]

AEROVIRONMENT (AVAV-$18.85)

EARNINGS MISS DOES NOT DIMINISH ITS TAKEOVER POTENTIAL ONE BIT — AND MAY HAVE ACTUALLY ENHANCED IT

By Charles M. LaLoggia

AeroVironment (AVAV-$18.85), which I recommended here last week as a takeover candidate over a 12 to 24-month horizon, reported sharply lower than expected revenues on Tuesday for its third fiscal 2013 quarter ending in January. The huge disappointment in AVAV’s results, said the company, came as a result of military order delays due to budget uncertainties resulting from the federal budget battle currently raging in Washingon, specifically the “sequester”. AVAV closed down around 9.7% on the disappointing results after trading much lower than in after-hours trading Tuesday and during the regular session on Wednesday. [Read more…]

“Coming Your Way: Debt Defaults and a Bond Meltdown!”

“While Congress bickers about spending cuts and prepares to fight over the debt ceiling—again!—there are not one but two far more serious financial crises approaching.

“As investors, we can and must prepare for the fallout. Thankfully, there’s one single investment that’s positioned to profit from both of these crises. That’s our topic this month!”

Two major financial crises are facing America. They will cause wrenching disruptions to our nation as a whole, and to our lives as individuals.

On a national level, they can’t be avoided. But on an individual level, they can. In fact, you can take huge profits as they unfold—if you play them right.

Let’s start our discussion by asking… [Read more…]

Why Investing in Drone Companies Make Sense and What Company to Start With…

BUY AeroVironment (AVAV-$22.03) AS A POTENTIAL TAKEOVER TARGET

By Charles Laloggia

If you are willing to invest the old-fashioned way by buying a stock and having the patience to hold for 12 to 24 months I think there is a very good possibility that AeroVironment (AVAV-$22.03) could become a takeover target at a price substantially higher than where it currently trades.

AeroVironment makes small unmanned aircraft — also known as drones, unmanned air systems (UAS) or unmanned air vehicles (UAV) that wirelessly transmit live video and other information to a hand-held ground control unit. AVAV also makes electric vehicle charging systems for passenger and fleet vehicles. AVAV is the Pentagon’s largest supplier of small drones, which can give troops an aerial view of a situation that may be around the bend or over a ridge.

The use of drones to kill suspected terrorists has received a lot of publicity lately, but that controversial utilization of unmanned air vehicles is just the tip of the iceberg when it comes to the expanding use of drones which is almost certainly on the horizon. [Read more…]

“Will the Bond Market Melt Down in 2013?”

“The ongoing circus in Washington has grave implications for the US bond market, and therefore for your investments as well.

“This month: the three major threats to the bond market, and three paths to making big profits from the current turmoil!”

“When written in Chinese, the word crisis is composed of two characters. One represents danger, and the other represents opportunity.”

John F. Kennedy, in a speech on April 12, 1959

If any two words describe today’s investing climate, they’re “danger and opportunity.”

The list of dangers is long, and growing. But where there is danger, there is also much opportunity.

When markets are overcome with fear, large moves are possible in a short time. And large moves can mean large profits.

That’s our theme in this issue: the big dangers and big opportunities that await us in 2013.

We’ll start with a brief look at… [Read more…]

“Coming in 2013: Perhaps the Most Challenging Year Ever for Investors!”

“We’re facing the most challenging investing environment we’ve seen in a long time. And the fireworks begin in just a couple of weeks.

“Many Americans are so caught up in the holiday rush that they’re ignoring what’s going on in the markets. Don’t be among them!”

In past issues of GEA, I haven’t said much about the ‘fiscal cliff’ that’s due to arrive on January 1. There wasn’t much point in talking about an event months before it arrived.

After all, Washington had plenty of time to deal with this. And surely, with such a crucial deadline approaching, Congress would set aside its usual bickering and get something accomplished, right?

Right?

Of course, that didn’t happen. And now the United States is about to begin its… [Read more…]