The urgent letter said it all.

Only 20 days ago, on August 9^th, Yakout Mansour, the president of the California Independent System Operator, penned an urgent note to Michael Peevey, president of the California Public Utilities Commission.

In it he urged the commission to seek out additional electrical power generation for the state, as a result of widespread power outages only weeks earlier, during record high demand.

Those power outages were responsible for dozens of deaths, and tens of millions in productivity losses.

In a word, they were, and are, unacceptable.

Five days later, Southern California Edison formally solicited bids for an additional 1,500 megawatts of generating capacity.

"Supply forecasts by state agencies show Southern California will need approximately 1,500 megawatts of new generating capacity between now and 2011," said Pedro Pizarro, So Cal Ed senior vice president, in a statement.

As you'll see, that much power is worth a staggering amount of money.

And that's why I think the Aug. 9 letter will be remembered as the tipping point to one of our biggest winning stocks.

That's because MMC Energy (OTC BB: MMCN) is already on the ground in southern California, with two new power plants already online and producing critically-needed electricity.

I'll get into details in a second, but first consider this.

MMC Energy is well on its way to amassing a portfolio of power generating plants with a capacity of around 2,500 Megawatts in the next 18 months.

Get a load of this...

That much electrical power capacity is worth around $2 billion in today's market. MMC's market cap as of today is $107 million.

Even a lowball valuation on the stock gives us a price of $5, or a double from current levels-right now.

Further out, I think we'll see this company trading at over $20.

And that's why I'm urging readers to buy now, right now, before we see the next leg up.

Arnold Needs Your Help!!

The letter I mentioned above is a clear indication of how serious the power issue is in California.

Governor Arnold Schwarzenegger's reaction to the crisis could cost him his job. It's that serious.

Consider this quote from Jim McIntosh, director of grid operations for the California Independent System Operator: "We are seeing record loads at much lower temperatures."

Power use is going through the roof, and not just during peak summer periods.

And, it's not just California. There are regional shortages across the US, and that's where MMC is focusing its efforts.

Already in California, the company has two power plants in operation, with a third on the way.

Here's the story...

Energy Resurrection

MMC buys power plants at a steep discount to market and reorganizes them so they run efficiently and profitably. Thing is, as soon as the purchase is made, the market gives the company full value on the asset.

And that's why we'll see the market cap of this company explode in coming months.

This company is able to buy these plants for pennies on the dollar, because the power industry is coming out of a period of gross mismanagement...

In the 90s, when the price of natural gas was thought to be on a perpetual slide, there was a glut of electric generation facilities across the United States.

The money flowed freely, as banks and other interests got involved in an industry they knew little about.

That may even be an understatement. Between 1997 and 2003, there was about 200,000 MW of additional electricity added to the US capacity - a 25% increase!

Suddenly, with all of the excess capacity, the electricity market started operating very similar to the stock market - with companies bidding on how much electricity they would produce for the following day.

After that started, banks switched their long-term, safe loans to a shorter debt structure. On top of that, the price of natural gas began to skyrocket, and margins all but disappeared for many facilities.

The dozens of companies that once had steady income could no longer make payments. Shortly after that, the banks started taking ownership of the power generation assets, which meant a fire sale was imminent.

Today, with escalating energy demand throughout many parts of the United States, it's a different story.

And that is where MMC Energy comes into play.

Equipped with one of the most experienced management teams in the world of energy, they are acquiring these properties from dying companies, banks, and other power companies for, literally, pennies on the dollar.

The plan is to buy up these assets at extreme discounts and operate them individually, streamlining operations and selling the power into key markets.

Because most of these assets are small, the larger companies don't even look at them.

These guys, on the other hand, don't mind rolling up their sleeves - they love it. And it's enabling them to take their pick of the energy assets they want.

And they're getting them for a steal.

An excellent example would be the company's recent purchase agreement for two assets in California. MMC bought them for $2.6 million. The plants cost $60 million to build.

How's that for a deal?

That's the scope of discount this company works on. It's absolutely huge.

We're going to witness this tiny company as it goes on an acquisition binge over the next two years. In that time frame, we're looking at a $1.5 billion company, at a minimum.

For us, that means an absolute home run.

Coming Up...

MMC is going to go on an acquisition binge. Fact is, they already have.

Now, one thing to understand is that while MMC is buying these assets at fire sale prices, once they've got them running and reorganized, the market will award the company full value for them, meaning this tiny company is going to grow like gangbusters.

The numbers here are huge.

And believe me when I say the management team is second to none. I'll get into this more in the next issue.

Over the course of the next two to three years, MMC plans on buying enough distressed, bargain power generating plants to amass 5,000 Megawatts of energy in the company's portfolio. To do this, MMC expects to spend about $200 million.

That much capacity will have an enterprise value of between $2.5 and $3 billion, or ten times what the company will spend. That's just the enterprise value.

We'll be looking at a share price appreciation of at least ten times, and probably much, much more than that.

This is a once in a lifetime opportunity to get in on the ground floor of a company that will revolutionize the power industry. And that's what America needs right now.

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