Memorial Day Sparks Buying Opportunity

Keith Kohl

Written By Keith Kohl

Posted May 29, 2010

Welcome to the Energy and Capital’s Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.

Although rules are made to be broken, there’s one that I stick to at all costs…

I never drive on Memorial Day.

This self-imposed rule is the result of one fateful Memorial Day, many years ago. I experienced a traffic jam so mind-numbingly frustrating that I swore off driving on that day forever.

For on that day, a small, 30-mile strip of highway turned into a nightmare. What should have taken me twenty-five minutes to drive ended up being a six hour event.

If you happen to have travel plans over the next two days, I wish you the best of luck.

But no matter how stressful it is to think of driving on Memorial Day, I look forward to this weekend each year.

The fact is that Memorial Day marks the beginning of the summer driving season. As you may know, the summer driving season typically begins Memorial Day weekend and finishes on Labor Day weekend.

My only advice this summer: Enjoy the cheap gas while it lasts.

Even though average gasoline prices across the U.S. fell to $2.74 per gallon this past week, we know that Memorial Day is a turning point for oil demand.

As of last week, U.S. oil consumption has increased 1.13 million barrels per day compared to a year ago.

Meanwhile, oil prices rebounded from near 52-week lows of $66.11 per barrel to over $75 per barrel on Friday.

If nothing else, it’s time for the bulls to take charge. Demand is rising. Global oil production remains stagnant.

By next week, I fully expect oil prices to gain momentum and start its journey back to $85 per barrel.

And then we have other factors that could lead to another price spike:

  • BP’s “Top Kill” operation appears to have successfully plugged the leaking Macondo well. According to USGS officials, the leak was flowing between 12,000-19,000 barrels per day into the Gulf of Mexico — nearly 4 times more than BP previously announced.

  • To date, BP has spent $930 million in its cleanup efforts. Unfortunately, the damage has been done. The BP offshore spill has already surpassed the Exxon Valdez accident, and the anti-offshore drilling sentiment couldn’t have come at a worse time. The BP spill will undoubtedly affect future offshore drilling activity over the next several years — time that we don’t have.

  • On Friday, the NOAA’s Climate Prediction reported that the 2010 Atlantic hurricane season, which officially starts on June 1, is expected to be active to extremely active. The NOAA is predicting a 70% chance for 14 to 23 named storms will develop this season.

Enjoy your Memorial Day weekend,

keith kohl

Keith Kohl

Editor, Energy and Capital

P.S. If you can spot a buying opportunity opening up for investors, you’re already one step ahead of the herd… Finding those opportunities isn’t as easy as it sounds. Everyone has to start somewhere. Below, I’ve included some of this week’s profit ideas from Energy and Capital and our sister publications, Wealth Daily and Green Chip Stocks.

The Bakken Profit Secret Revealed: The Unknown Oil Stock About to Double Your Money
Now that BP’s offshore disaster in the Gulf is officially the worst oil spill in U.S. history, the U.S. looks to one area for help: North Dakota. Keep reading to learn how this Bakken oil drilling stock could double your money.

BP Pulls the Plug on Gulf Spill: Offshore Oil Cleanup
Energy and Capital Editor Keith Kohl explains why BP’s latest “top kill” operation could make matters worse.

Moly Madness: A Tiny Canadian Mining Company Tapping into a $60 Billion Deposit
Energy and Capital readers are on top of the metals boom… And this time, they’ve pinpointed one metal that has traders scrambling. In fact this tiny, unknown company is has an ace up their sleeve — they’re sitting on a $60 billion deposit of this metal. I urge you to learn more about this investment opportunity in this free special report.

JP Morgan and Silver Prices: A Modern-Day Metals Conspiracy
Publisher Brian Hicks brings readers a not-to-be-missed piece by Analyst Adam Sharp as he reports on JP Morgan’s alleged manipulation of the silver market, and what this means for investors.

Investing in North American Oil: How to Cash in on “Fire Sale” Oil
Guest contributor Jim Amrhein warns investors not to dismiss oil investments, even as the price per barrel continues to fall…

Offshore Wind Energy in the U.K.: How to Profit from the Next Big Move in Offshore Wind Energy
Editor Nick Hodge takes a look at current consensus, current and future growth rates, fair value, and the contrarian case for cleantech stocks.

The Housing Bubble Bottom: Sorry Charlie, but the Bottom is Not in Yet
Wealth Daily Editor Steve Christ takes another look at the housing bubble bottom and explains why it’s as elusive as ever.

DVD Rental Kiosk Stocks: How to Cash in on the DVD Kiosk Craze
Wealth Daily Editor Ian Cooper takes a look at the next big player in DVD rentals, and how it could pay off as well as Coinstar.

Investment Lessons from America’s Pastime: Why There’s No Crying in Baseball
Publisher Brian Hicks calls on a famous Yankee to provide a lesson that extends from the ball field to the stock market.

The Contrarian Case for Cleantech: It’s Time to Buy the Fear
Green Chip‘s Nick Hodge takes a look at current consensus, current and future growth rates, fair value, and the contrarian case for cleantech stocks.

Oil Spill Clean Up Stocks: These Companies are Working Overtime to Clean Up the Gulf Mess
Energy and Capital Editor Christian DeHaemer reveals to investors the oil spill cleanup stocks to own now…


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