THERE'S VERY BIG MONEY IN SUPER STOCKS,
BUT YOU MUST USE TIGERSOFT'S
BE FRIENDS WITH ONE OF THE OIL COMPANY CEOS!)
Crude Awakening: How High Can Oil Go?
Bush's visit to Saudi Arabia brought no promise of increased production.
Washington's animosity towards Venezuela has not toppled Chavez, as the CIA
has tried, but it has made Chavez send its oil to China, not the US. The price of
oil goes up, not as the Democrats say, because of speculation, but because of
world demand, made more intense by the growth in developing markets, especially
China and India.
I recall oil reached over $50/barrel. in late 1979. Oil stocks
did not top out until the end of 1980. Prices have generally tripled since 1980.
So, in 1980 terms, crude could spike at over $150/b. In 1972 crude oil was about
$3./bar. The Yom Kipperin October 1973 brought an OPEC embargo on
nations supporting Israel. That lifted oil prices to $13./b. The November 1979
revolution and the Iraq-Iran war dropped production by 10% and by 1981 crude oil
prices averaged $34 in 1981. Any supply interruption, as Venezuela's
or Iran's, would send up prices even more. The high level of Accumulation on
our Light Crude chart shows that insiders and big money are buying oil and oil
stocks in a big way. They do not think a top is near. A world-wide recession
is probably the only thing that will change the up-trend in oil. Meanwhile, Bush
may be inclined to start a new war with Iran. That would make oil prices rise to
Fears that Bush and Cheney
will start another war lie
behind the latest rise. Yahoo reports: "A story in the Jerusalem
Post quoted a
"senior official" there as saying that Bush plans to attack Iran in the coming
months. (An) unidentified official claimed that a "senior
member" of Bush's
traveling entourage made the statement about attacking Iran in a closed meeting.
Bush was in Israel last week... (and that ) Bush ... Cheney "were of the
that military action were called for."
The White House denied this today. But Oil is over $128 and the stock market
down nearly 200. This is more than a rumor. John Conyers has warned
Bush that Democrats would not be happy about another Bush war and has said
that if he starts such a war, then he should be impeached. There have been
many reputable reports
that Bush and Cheney would like to start another war,
this one with Iran. If oil men are happy now with oil prices, think how happy
they will be with oil at $150 or $200 oer barrel.
I remember the 1973-1974 bear market quite vividly. Steeply escalating oil prices
are big trouble for the stock market. In 1969, 1973, 1977 and 1981 were all bear
market years, during the era of "stagflation"
- rising unemployment and high inflation..
(Source: http://cagle.msnbc.com/ _ )
WINDFALL TAXES ON OIL PROFITS?
It is possible that because it is a Presidential Election year that Democratic
candidates and Congressmen will call for increased taxes on oil profits.
hearings are due to start tomorrow. But I recall the period of 1973-1976, when
Republicans were weakened by Nixon's Watergate scandal and his resignation in
disgrace. The Democrats could not bring themselves to raise taxes significantly
on oil and gas companies then. They could not get motivated to raise the royalties
on Federal leases. They were too hooked on the mother's milk of politics, money
and campaign contributions.
So, while there may be TALK
about taxing windfall profits, it is not likely to
happen. The profits received by the major oil producers will be stupendous.
Tens of BILLIONS of Dollars. Exxon reported $40.6 billions
in profits in 2007.
Chevron's were about $14.1 billion.
The CEOs's salaries are probably more likely
to be effectively targetted. The Democrats will seek to rescind the tax
subsidies (!) on
energy companies. Typical tokenism. And they will try to get these
to invest more in alternative energies. But the oil companies will, in the end,
off most of this. Since the 1930s, significant taxation of the rich has been on the
decline. It would take another Depressin to get the Democrats to actually work
to achieve a society that is economically democratic.
One thing is different. Back in the 1970s, oil companies could claim that
they need ot make more money to do more exporation and wild-cat drilling.
That argument won't fly this time. New oil discoveries have been unimpressive
while oil executive salaries define "obscene". Ray Irani of
get $80.73 million this year for a total five year salary worth $198.44 million.
Daily claims that a 25% tax on windfall oil profits would decrease
production. They claim that is what happened from 1982 to 1986. What IBD
leaves out is that oil prices sharply fell then, too. That is what caused the
production. Showing their typical right-wing extremeism, IBD labels such
socialists. A democratic socialist would advocate public ownership of oil,
that comes from Federal Land leases, or, at least, a scaled system of royalties.
Unfortunately, no Democrat in Washington DC is advocating this reasonable
OIL STOCKS AREN'T GOING TO DECLINE BECAUSE OF
Watch how this debate plays out. I would bet the Democrats will not raise taxes on
oil companies, even if they win the White House. Until then, nothing will happen
because Bush will veto anything that would hurt his oil buddies. A President
Obama will be like a President Carter. He will seek consensus with the oil
He will put on a sweater and talk conservation. And he will go nuclear.
America is run by
corporate money. And the oil companies may have as much as 25% of all US
corporate profits in another year, if prices surpass $150, as seems likely, given
the level of insider buying we can see in Crude Oil and Oil stocks.
TIGERSOFT MEANS BIG PROFITS
So, it would seem that we have entered a lasting mark-up
phase for oil stocks. Each dollar
rise in the price of crude is pure profits. Those that are highly leverage, will do
I recall the rush into oil stocks in 1975-1977 and 1979-1980. These moves are
They do not end quickly. All the lessons from my Explosive Super Stocks apply here.
pf the ideas were honed on the behavior of oil stocks in this earlier boom.
We provide customers the data on all traded oil and gas
stocks in one directory.
Customers can easily run our flagging and ranking program on this universe of oil
stocks to reach investing conclusions.
Use TigerSoft its Power-Ranker to find nested Buy Buy
B10/B12/B30 and B24 signals.
It's not much harder than that to find the stocks to buy. And, if you don't want to
yourselves. We will find them for you on our Hotline.
The gains can be spectacularly quick. MXC was a good pick. Our charts of Light
Crude also showed massive insider Buying. See the chart of Light Crude below MXC's.
CRUDE OIL SUPER STOCK +600% in 2 months.
5/21/08 - hit 55.
Update - this stock hit 55 today - 5/21/2008
Energy Corporation, together with its subsidiaries, engages in the exploration,
production of oil and gas properties in the United States. It explores for and develops
natural gas, crude
and condensate and natural gas liquids primarily in west Texas. It has acquires
secondary production. These wells are now very profitable again. But be
wary. This stock is
traded on the American Stock Exchange. "That's where the biggest crooks
are" still rings in my
from when I worked on Wall Street.
Energy Corp. 214 West Texas Avenue Suite 1101 Midland, TX 79701
AMEX halted trading of MXC around 11:05 EST on Monday, May 19th, and suspended
the rest of the day. This did not dicourage investors. The rose nearly another fifty
percent for the
day in a row after trading resumed. Mexco Energy
Corp. now is valued at nearly $75 million
fact that it turned only $221,000 in profit last quarter has just two full-time
Light Crude Still Shows Massive Accumulation
PDO - Pyramid Oil Co.
Update: After Hours: 27.85 0.75 (2.77%) as of 4:52PM ET on 05/21/08
Pyramid Oil Company engages in the exploration, development, and
production of crude oil and
natural gas. It holds oil and gas property interests primarily in California, as well as
in New York,
Wyoming, and Texas.
Pyramid Oil Co. 2008-21st Street Bakersfield, CA 93301 Phone:
Web Site: http://www.pyramidoil.com
Only 13 employees
ROYAL ENERGY, Inc - ROYL
After Hours: 5.74
0.14 (2.50%) as of 4:19PM
ET on 05/21/08
What Goes Up, Can Also Go Down.
I posted this stock on our site about a month ago. It was our pick at a Tiger User
group meeting in February at 10. It rose to over 30 in 10 weeks. But it was
to also know when to sell. It has fallen back to 15. These are thin stocks.
It does not
take much to derail them. Our Explosive Super Stocks book's system would have gotten
you out near the top.
---------- HERE ARE INTERESTING OILSTOCKS'
After Hours: 12.95 0.08 (0.61%) as of 4:51PM ET on 05/21/08
Note how our TigerSoft Accumulation Index tells you what to expect. The bulges show
ery bullish insider buying. .
BEXP - we bought on 4/14/2008
Brigham Exploration Company engages in the exploration, development, and production
of oil and natural
gas in the United States. It owns property interests in the Onshore Gulf Coast consisting
of the Vicksburg
trend in Brooks County, Texas; the Frio trend in and around Matagorda County, Texas; and
interests in the Miocene and Upper Oligocene trends in Southern Louisiana.
Canadian Natural Resources Limited, together with its subsidiaries, engages in the
development, production, marketing, and sale of crude oil, natural gas liquids, natural
gas, and bitumen. It also
provides midstream activities that include pipeline operations and an electricity
CVX - Chevron - in the DJI-30 made a powerful looking
Old cats and dogs come out to play in a market like this.
This low-priced stock has been around for more than 40 years.
Magellan Petroleum Corporation, together with its subsidiaries, engages in the sale of oil
and gas, and
exploration and development of oil and gas reserves. It owns 35% interest in Mereenie oil
and gas field,
52.023% interest in Palm Valley Gas Field, and 34.3365% interest in Dingo gas field,
located in the
Amadeus Basin of the Northern Territory.
Ultra Petroleum Corp. engages in the acquisition, exploration, development, production,
of oil and natural gas properties. It focuses on developing and expanding a tight gas sand
located in the Green River Basin in southwest Wyoming.
W&T Offshore, Inc., together with its
subsidiaries, engages in the acquisition, exploitation, exploration,
production, and development of oil and natural gas properties in the Gulf of Mexico area.
It has interests in
approximately 155 producing fields in federal and state waters; leases covering
approximately 1.7 million
acres in the outer continental shelf off the coasts of Louisiana, Texas, Mississippi, and
approximately 539 offshore structures.