Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.
There are always hot themes in the market. And we try to get ahead of them for you.
Some of these themes — peak oil, for example — are larger and more sustained. Others, like seasonal commodity cycles, are shorter… But they all make early investors money.
This week, four news items in particular caught my eye — not because they were earth-shattering announcements; but because they validated trends Energy & Capital editors have been harping on for months.
So when I see headlines like the ones below, I know readers are profiting if they’ve followed our advice.
1. GE to Buy 25,000 Electric Vehicles
We’ve only been saying the future of transportation is electric for a half decade. And on Thursday, GE (NYSE: GE) said it would be so.
The largest conglomerate in the United States with a market cap of $174 billion is replacing half its fleet with EVs in a move it hopes “will speed acceptance of electric cars by getting more of them on the road more quickly and prompting investment in the equipment that users will need to charge them.”
GE has already partnered with Better Place, has a stake in A123 (NASDAQ: AONE), and says it can generate half a billion dollars in EV-related revenue in the next three years.
By announcing the largest purchase yet by any buyer of EVs, GE’s Jeff Immelt says his company “will accelerate the adoption curve, drive scale and move electric vehicles from anticipation to action.”
He’ll be buying GM’s (IPO on the 17th) Volt and Nissan’s (NSANY.PK) Leaf, among others.
2. Neo Material to Pass on Rare Earth Price Hike
Ian Cooper’s been spouting off about rare earths to anyone who will listen.
In a nutshell, China controls about 95% of the global supply of these crucial minerals, but recently cut export quotas by 70% — sending rare earth-dependent industries, countries, and prices of the resources themselves into a panic-stricken state.
Rare earth refiner Neo Materials (TORONTO: NEM) announced this week it will be passing the higher costs onto its customers.
Company CFO Michael Doolan said it’s been experiencing “significant raw material cost increase, with input cost now exceeding the previous peaks of 2008.” And he says prices won’t stop until they reach all-time highs.
To get an idea of how crucial these minerals are, Neo’s products go into everything from wind mills to cameras to defense systems, and it counts Samsung, Canon, Hitachi, and Philips as clients.
Neo’s shares were at an all-time high this week. But even bigger gains will come from new sources of rare earths outside of China, as the Middle Kingdom’s export cuts are forcing rare earth refiners to look for new supply.
3. Chevron to Acquire Atlas Energy for $3.2 Billion
Keith Kohl has been saying new natural gas finds like the Marcellus will make investors rich for years. And he got some big validation this week.
Chevron (NYSE: CVX) said it would buy Atlas Energy (NASDAQ: ATLS) for $3.2 billion, making the latter’s shareholder’s instantly a third richer.
According to the Wall Street Journal, “low gas prices [currently] present an opportunity to buy assets cheaply and hope that prices rebound as the economy recovers.”
And Chevron Vice Chairman George Kirkland believes the Atlas acquisition gives his company access to “one of the premier acreage positions in the prolific Marcellus.”
Keith will have other ways for you to profit from this nat gas boom in the next few weeks.
4. International Energy Agency Say “Peak Oil” Has Hit
This one’s my favorite, because it’s the very concept on which Energy & Capital has been built…
In it’s most recent World Energy Outlook, the IEA says peak conventional oil hit in 2006, and the emerging supply-demand gap will have to “be made up from rising production of natural gas liquids and unconventional oil, notably Canadian oil sands.”
The conclusions led IEA Chief Economist Fatih Birol to declare, “The age of cheap oil is over… Governments and consumers should be prepared to pay higher oil prices.”
The IEA model shows if governments continue current consumption rates, the price of oil will hit $240 per barrel by 2035 as demand rises to 107 million barrels per day.
Ideas about how to profit from these themes below.
Call it like you see it,
Solar Stocks Make it Rain: Some Quadruple Revenue in a Year
Editor Nick Hodge discusses solar stocks with earnings this month… and which ones may be worth a closer look.
Inflation is Already Here: Profit from Bernanke’s Tortured Logic Today
Editor Ian Cooper reveals what Ben Bernanke seems to be missing on inflation, and offers a few ways to profit it today.
Mongolian Oil: This One’s a No-Brainer
This oil stock is up 354% since Chris DeHaemer recommended it. The little-known Mongolian company he’s been touting for months just struck it big — hitting oil from an incredible source that no one had considered for years… And this is just the beginning of what could turn out to be a HUGE run.
Kiss My Vindication: Peak Oil Goes Mainstream
Publisher Brian Hicks talks about peak oil entering the mainstream after nearly a decade of predicting the end of cheap, sweet crude… and foreshadows profit opportunities to come as a result.
What’s All the Buzz about Rare Earths?: 3 Reasons Rare Earths are the New Oil
Editor Nick Hodge reveals why rare earth metals may be the new oil.
Tea Party Opportunities: A Taxpayer-Funded Sucker Play for the 21st Century
Editor Jeff Siegel discusses how Tea Party-supported candidates have an opportunity to change Washington.
Earn 11,000% on this Stock: The Next Game-Changing Energy Play
The next energy stock blockbuster has arrived by way a small nuclear company about to boast the most effective, powerful, and economical reactors in the world. Don’t miss the chance to make big bucks from America’s nuclear renaissance..
Bernanke Has Lost All Credibility: Ben “Contrary Indicator” Bernanke Got it Wrong Again
Analyst Adam Sharp breaks down the Fed’s latest blunders as Chairman Bernanke is caught in a mis-statement of sorts.
Profit from Currency Wars: Chinese Revenge
Editor Chris DeHaemer explains China’s revenge as the global economy experiences a re-balancing act.
Sunless Solar: Profit from the Fuel of the Future
The latest technology from a little-known D.C.-based company is about to become a household name… It’s over 300% more efficient than rooftop solar panels and is capable of generating electricity even from artificial light sources. Don’t miss the boat on this renewable energy cash cow.
Effects of Quantitative Easing: 900 Billion More Reasons to Own Gold and Silver
Analyst Greg McCoach reveals the truth behind quantitative easing, and gives investors a clear picture of the effects of debt monetization.
This is a World Beater: How to Play the EV Revolution Starting in December
Editor Christian DeHaemer tells readers why he thinks the Nissan LEAF is all that, and how to play the EV revolution starting next month.