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Your Latest Issue of WSD Insider is Now Online
We just posted the latest issue of our flagship newsletter,
WSD Insider, online.
In this month's issue, I'm revealing an innovation - now hitting a niche of the energy market - that the major industry players are increasingly unable to exist without. As such, demand is absolutely scorching. Better yet, the stock pays a 9.3% dividend yield, which means we'll get paid while the share price heads northward. It almost feels like cheating when I uncover such stocks! Give my article below a read - it'll nicely whet your appetite.
Also in this issue:
- Matthew Weinschenk is full-throttle bullish on another niche of the energy market. He's perfectly willing to let Louis' hidden gem do all the innovating, while his latest recommendation pulls one of the world's most valuable resources from the ground. It's a junior miner on schedule to double production in the coming months. Shame on you, Wall Street, for missing this one!
- One of the biggest expenses we incur each month is Karim Rahemtulla's cellphone bill! He's too busy hunting the globe for the world's most undervalued, ripe-for-the-picking frontier markets to even give it a thought. You see, Karim has a penchant for unearthing breakout stocks in remote areas of the world. This month, he's adding a company based in Thailand. It's perfectly positioned for a major price move in the coming days. Even better, it trades on the U.S. Pink Sheets, which makes it a cinch to buy.
Just
click here to open the May/June 2012 issue.
Natural Gas: The Ultimate Contrarian Play for 2012
By
Louis Basenese, Chief Investment Strategist
![Louis Basenese]()
Back in January, I said that natural gas was perhaps "
the most hated commodity in the world." Believe it or not, the commodity's become even more hated!
Since the beginning of the year, prices dropped another 40% or so, hitting their decade low on April 19 at $1.90 per million British thermal units.
If we adjust for inflation, natural gas hasn't been this cheap in almost 20 years.
What gives? In two words: hydraulic fracturing (or "fracking" for short).
The technology is revolutionizing how we extract natural gas (and oil) from the ground. It's turning unconventional shale formations into rapidly producing assets. The end result? Natural gas supplies keep piling up.
And like with any commodity, as supplies increase faster than demand, market prices fall. Or in this case, collapse.
Now, it's true natural gas prices have rebounded about 20% over the last week. But few investors believe it's going to last. In turn, they remain on the sidelines. Frightened.
![Natural Gas Prices Plummeting in 2012]()
I can't say I blame them, either. After all, "brave" investors have gotten clobbered in the natural gas space in 2012.
Major natural gas producer
Chesapeake Energy (NYSE: CHK) is down 26.3% for the year, for example. And low-cost producer,
Ultra Petroleum (NYSE: UPL), is down 35.4%. That compares to a 9.6% rise for the S&P 500 Index in 2012.
Despite the bloodbath, though, my research says we're witnessing a historic buying opportunity. I'm not alone in my contrarian stance, either.
Eric Nuttall, lead Portfolio Manager of the Sprott Energy Fund, says we're on the precipice of the "Investment Opportunity of the Decade."
How can that be? It's simple, really. When it comes to commodities, low prices are the cure for low prices. By that I mean cheap prices end up encouraging more widespread use. And once cheap prices generate enough new demand, supplies drop and the market price rises.
The good news is we're already witnessing the early stages of this phenomenon take hold in the utility sector.
Power production in Texas for one of the nation's largest natural gas utilities is up as much as 50% recently. Why? Because for the first time in years natural gas is just as affordable as coal to produce electricity.
This is just one example of how cheap natural gas prices are changing demand characteristics. Others will follow. And before long, natural gas prices are going to rebound.
The problem for investors, of course, is predicting when. Time it wrong and you're guaranteed to be nursing losses or waiting impatiently just to get back to break even.
In the latest issue of
WSD Insider, though, I provided an ingenious solution. It's a way to pocket a monthly dividend, equal to a 9.3% annual yield, while we wait for the inevitable turn in natural gas prices.
And once prices start to climb, the price of this unique investment should leap higher, too, making it a rare, dividend-paying growth opportunity.
For full details, all you have to do is sign up for a risk-free trial
here and you'll be granted immediate access to our latest issue. So what are you waiting for?
Ahead of the tape,
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Louis Basenese
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