They're still standing tall.
And right now, you can grab these high-yield gems—some with windfall potential—at ridiculously bargain rates.
If anything's better than a monster-size yield, it's a monster-size windfall. And why settle for just one when you can have both?
And when you can grab a high-yield merger target at rock-bottom rates, what could be better?
So, let's excavate these safe, 14%+ yield gems from the Wall Street swamp—now.
I guarantee you'll be a lot happier than holding a bunch of T-bills!
Safe and tax-free
Maybe you're also looking for a safe and tax-free, high-yielder that will pay you up to 12% plus dividends. I can give you a few of these—with a track record of also paying investors a compounded return near 20% every year for 10 years in a row.
That's a total of 500%—despite the tech bubble, the 9/11 recession, the subprime mess and the current credit squeeze. It doesn't get any more reliable than that—generous, predictable payouts that are all but immune to Wall Street stupidity. I'll give you the details in just a minute.
So—if you're looking for high yields, income & growth—some with windfall potential, I invite you to read on.
Scoop up the spoils Wall Street left behind...
Wall Street has lots of bright, dripping egg on its face.
But recent market flips did land a few, golden eggs on our plate. So we level-headed individual investors can move in and scoop up the spoils. And if we bag a windfall, too, that's icing on our cake.
You probably know that corporate preferred shares were the purview of the Wall Street high-flyers: The hedge funds with their billions sloshing around the globe. And what a deal! Without lifting a finger, they scored great yields, total flexibility, convertibility and in most cases, payouts that could never be cut.
These corporate preferreds were not usually considered a tool for you and me—the individual investor. No, corporate bonds and preferreds lived up to their name—choice investing preserves for the Street's "elite".
But now, that's changed. "Distressed" hedge fund sell-offs give us individual investors the most compelling opportunity in years. Their loss is our gain!
Because the retreat of these once-vaulted fund managers leaves the "preferred" gates wide open for the rest of us. And these premium investments are just sitting there ripe for the taking.
You see, with corporate bonds and preferreds, you get to have your cake and eat it, too.
Because right away, you get great, steady yields up to 12% and more.
And, because you're buying them on the cheap, you also get the great, long-term upside from these choice, growth investments. Talk about playing both sides of the Street.
And, if a takeover gives you a windfall from your Preferred shares with a huge cash premium—you have a winning triple play—and triple profits.
Right now, one of my favorite energy picks is just such a potential triple play. This company has in abundance what two cash-heavy corporate suitors have in short supply—and are desperate to get.
The company is a US oil & gas producer sitting on tons and tons of prime natural gas reserves. Over 12 TRILLION cubic feet of it. So much, in fact, that at least two of Europe's oil and gas majors are salivating over the prospect of a takeover bid for this plum.
The reasons are simple: while the price of natural gas is off the charts in Europe, it's abundant and dirt cheap here in the US.
And, European majors have another reason for scrambling after US natural gas—mistrust of Russia. No doubt you've heard stories of Russia yanking Europe's natural gas supply in the cold dead of winter. The stories are true.
And now, with pipeline trouble in the North Sea, these European producers are scrambling to secure reliable gas reserves.
And there's more great news: this company has no need to access credit markets—their credit line doesn't expire until 2012. They've got whip-smart management and solid revenues.
They've also built the best oil and gas reserve asset base in America, bar none. They shrewdly snapped up stakes in every prime US oil and gas basin and some really outstanding unconventional plays, as well.
So, I'm suggesting that my readers scoop up this company's preferred convertible shares.
Remember: in a buyout, both convertible bonds and some preferreds can be turned into common shares.
So you grab the windfall cash premium that goes with it! And even in topsy markets, preferreds give you stability with solid dividends, heaps of upside, and windfall potential to boot. There's just no way to lose.
Something else—while companies can suspend dividends, in most cases they can never stop payments on their corporate bonds.
Now, you probably know that buying preferred shares and bonds is a little different from buying common shares. So, I've created an online primer that spells it out for you. You can easily see how to buy and profit from the preferreds I've put in my Energy Strategist portfolios.
And, The Energy Strategist alerts you to other opportunities so you can multiply your money right now. How does $2777 in distributions sound to you? Please read on...
Two CEOs whose dividends beat the Street, to 12% plus
One thing just occurred to me about two of my favorite CEOs. They may be billionaires now, but they've seen, worked through and conquered lean, hard times.
In fact, one of these now-billionaire CEOs not only lived through the Great Depression, he was orphaned at the start of it.
These two companies have been kingpins in my conservative portfolio, Proven Reserves, almost from the beginning. But when times get tough and markets get tougher, this is the type of CEO I want to trust with my money!
Both CEOs run stellar energy partnerships. In fact, every single one of the energy partnerships I recommend has boosted their payouts at least once over the last 12 months. And, every one has equal or better distributions than a year ago!
That's why I'm more confident than ever in recommending these two, superb companies to you. You won't find better and safer money-makers out there
The down-to-earth, no-frills way they run their companies shows that, despite the billions they now have in the bank, they remember what it takes to earn a buck and make it multiply.
These two companies are paying out predictable, generous dividends up to 12% plus. And they've both told me they plan to keep those healthy distributions coming. No dividend cuts here, they're increasing their payouts.
Both picks have little exposure to commodity prices and they lock in their revenue in advance.
If you want to "try and see" these partnerships with a minimal investment, this is an excellent choice. And if you've got $5K to invest in each, you should see at least $2700-$3000 in annual dividends alone. And with their solid growth plans, that could easily go to $5000 annually within just three years.
From Texan orphan to Texas tycoon, you get great, solid yields from this energy CEO
He's one of the world's richest men. Yet, you may not have heard of this CEO. Born in the sleepy East Texas town of Center in 1933, in the midst of the Great Depression, he lost his mother and only brother at age seven.
After a stint in the Army, he sprinted into the energy midstream field with a truck and two partners. And today? He commands a $17.2 billion + energy midstream empire.
The energy midstream is the central connecting link for our nation's energy infrastructure—so we expect huge upside from this CEO in 2009 and beyond.
His flagship company and one of his spin-offs are mainstays in my conservative portfolio, Proven Reserves.
I’ve recommended these picks since 2005. In that brief time, a $10K investment would have given you nearly $3000 in dividends alone.Both companies are still value-priced, but as smart investors look for more ways to ride the coming infrastructure boom, there will be plenty of takers.
In fact, if there was ever an energy infrastructure powerhouse, this CEO built it.
He has 34,668 total miles of pipelines—lines that spirit natural gas, NGLs, petrochemicals and crude. Plus, he's got 155 MMBbls of natural gas storage, 26 natural gas processing plants, 13 NGL fractionation plants, plus offshore platforms and NGL import/export terminals. These are the highlights, there's even more to the business.
And with these huge, NEW growth projects underway, investors will rake in rising payouts all of 2009, and well beyond—
As I said before, this CEO never forgets the lean times.
He keeps giving back to the investor community with steady, juicy dividends, up to 12% plus, from his energy infrastructure companies.
And since energy infrastructure is a bulwark of the next Administration's economic stimulus, his companies are well-positioned to spruce up your bank account with even juicier dividends—and huge upside, to boot.
We’re looking for up to 40% upside in the next 12 months if you buy in now. You, too, can ride the energy midstream to record profits.
You'll find all the details in my conservative portfolio, Proven Reserves, when you come sign onto The Energy Strategist.
The CEO with $1 billion in his suitcase
This CEO is another prime example of what I look for: He owns a ton of stock in his company. He's committed to growth. And when times get tough, he doesn't issue ten zillion more shares because he doesn't need to. He's got a billion in cash to keep growing his company.
In fact, this CEO tells us his business will generate $2.85 billion in distributable cash in 2009.
And his businesses already own a stake in or operate 25,000 miles of pipelines—lines that move natural gas, gasoline, crude, CO2. Plus, 165 terminals and storage for petroleum and chemicals. And that's just part of the business.
One of my favorite picks, this CEO's energy midstream partnership does not need to borrow money to expand because it's got plenty in reserve.
They've announced some impressive expansion plans. With cash spilling out of both fists, they'll finance it on their own, if need be. And since they never embark on a new energy project without contracts in hand, they've got their assets well covered.
So what's exciting and new about this company right now?
A 1,678-mile pipeline that sends natural gas from Western producers to the well-populated Midwest and East Coast—1.5 billion cubic feet a day.
Producers are standing in line to reserve space. In fact, there's so much product moving on this line, the company is already looking to expand!
Over the past year, this energy partnership upped dividends more than 16%. I'm looking for at least another 10% gain in dividends in 2009.
And this minute, my readers are happily taking their ever-mounting dividends to the bank.
This partnership has two more energy mega-projects racing to completion in 2009. But the best news is this: they're already making money on both!
I ask you: what more could you want from an investment today?
An even dozen to choose from: high yields with little risk
Yes, the two partnerships above are my very favorites. But I've found a solid dozen energy partnerships in all that meet my stringent criteria and have passed all my tests for high yields and dependable returns.
Most of these partnerships own pipelines, storage facilities and natural gas processing or "fractionation" plants. These assets generate cash based on volumes of natural gas or oil not the value of that oil or gas. And with low exposure to commodity prices, you get high yields with nearly zero risk of any cut in your dividends.
Skimming the cream really cheap
In recent weeks, the institutional sellers' collective "distress" handed us individual investors an unexpected present.
Due to the shotgun-wedding-style sell-off of some funds, a few choice, energy partnerships are selling at such silly rates, they're attracting buyers like bees to honey. It's no surprise that value-stock shoppers are grabbing the ridiculously low valuations while they can.
High yields and zero taxes
Since these firms are partnerships, not corporations, they pay no corporate tax. Instead, they pay YOU the bulk of their earnings as distributions. And these partnerships are not some newfangled investment Wall Street just cooked up. Some of these rock-solid companies have been around for more than a decade.
As always, my focus when evaluating these energy income stocks for you is dividends. And right now, the twelve partnerships on my "buy" list give you great, sustainable dividends up to 20%. These companies run a tight ship with a long history of boosting distributions.
I expect them to boost payouts in 2009 by at least another 10%. And allow me to repeat, these energy partnerships are some of the best value plays to land in an investor's lap in years.
You lock in double-digit yields from firms with nimble management and a long history of upping their generous payouts.
One more thought to consider: The yield on a 10-year US government bond is around a paltry 2 percent. But some of my favorite energy partnerships yield close to 10 times that.
So, who wants to pay Treasury to hold their money? Especially when we can get safe, strong yields from energy partnerships?
19.8% yields and they're totally hedged through 2011!
Yes. This stellar oil & gas performer will continue paying you dependable, 19.8% yields.
They're totally, absolutely 99% hedged through 2011! The price of oil can go up, down, or sideways, but because they're so shrewdly hedged, they'll still keep paying you 19.8% dividends. And get this—they've even hedged their basis risk. So they're not even exposed to that—and neither are you.
Plus, they have NO heavy production costs and they're sitting on a pile of cash to boot!
They're also sitting on 1.2 trillion cubic feet of oil and gas with proven reserves of 21 years. So, they'll be generating tons of cash with their current asset base for years to come. And when/if they decide to expand, they've parked plenty of cash to make any new acquisition they feel like.
If you need any more convincing that this company deserves a place in your income portfolio, please consider this: Due to the 100% return of capital, you get to defer your tax liability, too. Get on board The Energy Strategist today, and I'll send you the details on one of the best, highest-yielding—and reliable—income plays on the planet.
Waste-to-energy: big profits from all our trash
Years ago, I worked for a company that threw the most screamingly lavish year-end parties.
But this was one tight-fisted company, let me tell you.
So the oysters-on-the-half-shell, prime ribs, lobster tails, limos and a live band, just did not square with their day-to-day penny-pinching.
Then I learned their secret.
They paid for all this excess from the revenue they raked in just by recycling all our warehouse trash!
This was my first lesson in the power of waste-to-energy
Fast-forward to today and my favorite waste-to-energy pick is set to lavish you with some juicy profits year round.
And here's why—
Every town and city in America must dispose of its trash. Tons and tons of it every day.
No matter what's going on in the S&P, no matter who's in the Oval Office, no matter who wins the Superbowl—trash-to-energy can give investors some really solid returns with very low risk.
Waste-to-energy is already booming here in the US and 100 new plants will dot the countryside by 2012—just four years from now.
It's a simple business and supremely profitable. It takes municipal solid waste—waste from every household and office—and produces pure energy.
It helps the environment, too. Since waste-to-energy cuts what we bury in landfills, it also cuts the methane gas in the air we breathe, a gas many times more potent than carbon dioxide. And, waste-to-energy plants may also qualify for those nifty carbon credits.
My favorite pick is the current leader in the US waste-to-energy market. Their current tally of US waste-to-energy plants is 34 in 15 states. The company operates mostly under long-term contracts, with many contracts up for renewal over the next few years. And their US revenues could easily double in just five years.
But what's so exciting about this company is its growth potential beyond the US market. The company already has joint ventures in China. And the Chinese, who are now building a coal plant every week to keep pace with energy demand—are looking for every way possible to produce more power.
Generating power from the waste of 400 million Chinese households is a mandate for the Beijing government. There just aren't enough landfills on earth to bury that much municipal waste!
And while China's population will continue to grow, India is expected to race past China as the world's most populous nation—1.75 billion by 2050. Same waste problem. Same waste solution: convert it to energy.
Besides North America and Asia, my favorite US waste-to-energy company also operates in Europe where the EU has ruled that all member nations must reduce their landfills by 65% total by 2020.
Think about that. The population of Europe stands at 730 million. And they've committed to burying less than half as much waste as today. Only half as much waste every day from 730 million humans.
What will Europe do with the other half of all that trash? Convert it to energy.
New plants are out for bid all over Europe and this company's the top bidder. Can you see why we're so excited about the profit upside of this waste-to-energy company?
Oil Prices will Rise Again
I'm tempted to say that as May follows December, oil prices will rise.
But there's a new dynamic here: Proposals from the incoming White House to wean us off oil that do not seem to add up.
Here's what I mean—
We heard a proposal from the incoming Administration to make 50% of all US cars electric—that's rechargeably battery-operated—in 10 years. We'll just hook them up to the old grid.
But here’s the rub: the new White House also told us that we may build new coal plants but they'll "bankrupt" them.
If half of all cars in the US plug into our already-strained electricity grid, we'll need an unprecedented new mother lode of electric power.
Right now, half of our electricity comes from coal. So there's no way to "bankrupt" coal without also bankrupting the average US energy consumer in the near term.
To be sure, natural gas plants can carry a lot of that load, but only when a slew of new plants are built.
So where does that leave us for the foreseeable future? We'll still be consuming oil and demanding a lot more of it. Problem is, many wells around the globe shut down when crude prices fell below $70 a barrel.
So, while the mainstream press is still fixated on oil demand, smart investors are scrutinizing oil supply.
What's the reality? There's no glut of oil. And as the economy recovers steadily throughout 2009, oil prices will too. With a vengeance.
As I mentioned, oil wells everywhere are shuttered. When demand returns, as it surely will, the supply won't be there.
And the fastest, cheapest way to ramp up production is to ride herd on the old, developed, wells.
So, what's the best way to play the coming oil squeeze? The oil & gas service firms with high-tech extraction know-how.
Squeezing every ounce of oil out of mature wells is a “take a number” specialty these days around the globe. Servicing “mature” or “challenging” wells requires tons of equipment and manpower on the ground to keep the juice flowing. And the best service companies have oil-producing “SWAT” teams at the ready they can deploy anywhere if production hits a snag.
As you can imagine, this expertise (it's also a dangerous job) does not come cheap. The day rates for these service companies have no ceiling and are approaching $1,000,000 a day. Why, you may ask me?
Because many oil majors, who made heaps of money drilling simple, vertical wells in the 1950s, did not develop the techno-how to keep the old wells flowing.
Simply put, the contract super-drillers are sitting right in the catbird seat doing what the oil majors cannot do.
And I have a great way for you to play it: I can show you a trailblazing service outfit that squeezes new oil out of old wells with a tricky “underbalanced” drilling technique, pumping in specially-weighted gels, or “muds,” to prevent a wasteful blowout.
This company is levered to oil development, not exploration. So, the sky’s the limit for this company when oil demand re-escalates.
Right now, it's trading at less than 6 times next year's earnings estimates. The cheapest valuation in a decade. This stock could easily triple over the next year.
It’s one of the best buys in the energy patch, bar none. Become an Energy Strategist reader today and learn all about it. Just go here.
We aren't like most investors
Would you associate energy with high technology? Most investors would answer "no"—but, as you can see, we aren’t like most investors. We stay focused on the basics—growth in demand, shortage in supply—and that takes us to the most unexpected places.
While we offer you results-producing portfolios with picks ranging from a “conservative” to “aggressive”, fact is, we are neither. We choose each investment based solely on its potential—not whether it skews “conservative” or “aggressive”—
then classify it to suit your investing style:
“Proven Reserves” Portfolio—for more conservative, low-risk investments
“Wildcatters” Portfolio—for long-range investment gains
“Gushers” Portfolio—for aggressive positions
I also keep an eye on about 100 other companies in every nook and cranny of the energy universe, from sub-sea to solar. Every now and then, one ripens into a portfolio selection. Look for a list of these promising firms in our section called “How They Rate.”
Your Password Is Your Passport... to the Best Energy Bargains Out There
From the moment you accept our invitation to join The Energy Strategist, you begin acquiring the knowledge to jump-start your investing success. And right now the spotlight is on the best bargain-hunting for solid energy stocks. Great bargains since some are selling well below book.
Armed with your password, you gain 24/7 access to all three investment portfolios plus the “How They Rate” stock monitoring service—and that’s not all...
Need a money-back guarantee?
If you’re still with me, it’s because I’ve sparked your interest and imagination. You’ve glimpsed the great wealth that’s your reward when you sharpen your focus, do a bit of homework (we do most of it for you) and take your investments seriously. You’re ready to ”go for the energy gold”... but you need just a little something more to feel confident. You need a guarantee.
ELLIOTT GUE’S 90/100 GUARANTEE
Give us just 90 days to power your portfolio to new levels... identify dozens of great new energy investment opportunities... get beyond ways of thinking that hold other, less richer, investors back.
If I haven’t delivered on these promises—and much more—in up to 90 days just cancel. Call it quits. We’ll return 100% of your enrollment fee—every penny—with no questions asked.
Cancel anytime after that and get a full refund on all unsent issues.
It’s a bold guarantee but I make it with perfect confidence. No one quits The Energy Strategist once they see their wealth begin to grow and grow.
Get More than You Bargained For
To ease you into Society membership, I’ve created a primer on how to get the most out of our many services. I call it The 90-Minute Wonder: Jumpstart Tips for New Members, and it’s yours free when you accept our invitation to come on board with The Energy Strategist. And that’s not all you get free...
With A One-Year Risk-Free Membership Commitment ($399) you also receive...
With A Two-Year Risk-Free Membership Commitment ($729)...
Convenient quarterly option ($99) on a 'til cancel basis (credit/debit card, please):
I don't want you to miss out on these gains, so I convinced my publisher (that's Walter Pearce) to offer you a QUARTERLY membership—you can join for 90 days at $99 on a credit/debit card until you say quit.
Now, you may cancel up to the first 90 days and get your money back, 100%. If you continue on a quarterly basis, you may cancel and get a refund on the unused portion of your membership.
The Choice Is Yours
Now is the moment to decide. Will you keep floating along, buoyed by the occasional lucky score—only to see your picks collapse when the market hits an air pocket? I hope not—especially when wealth is within your grasp. I invite you to join The Energy Society today and let us multiply your money.
Founder, The Energy Society
Editor, The Energy Strategist
P.S. Hate losers? Who doesn’t? I’ve made my own list of the Dirty Dozen (well, the actual number is 11) energy stocks to avoid. You can get Elliott Gue’s Blacklist when you subscribe and, yes, it’s free too, but... there’s a caveat. We’re offering Elliott Gue’s Blacklist to the first 100 new Members ONLY. So please don’t wait one minute more. Join us now. And “Welcome!”