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Ian Cooper: “Could Easily Double or Triple After March Results”
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Ian Cooper, who I probably unfairly noted was one of the few newsletter touts to not have a single positive performer on the Stock Gumshoe Tracking Spreadsheet (there were only two of his that I had sniffed out, both quite old, and he is primarily a quick trader so I’m sure those were sold eons ago), has another teaser for us, this time for his Pure Energy Trader service which Angel Publishing calls a “fast paced trading service.”
In the words of the ad, at 5pm on Monday, February 18th “Ian Cooper will issue a trade on a stock that could become a giant in the oil & gas industry.”
And this one is pretty interesting, though the company has been very volatile.
So what are we dealing with? You know the Gumshoe loves to uncover stocks that haven’t yet even been released to subscribers — oooh, so secret!
“A billionaire energy tycoon has purchased nearly 3 million shares in this company.”
OK, so I don’t want to give away any Gumshoe secret techniques here or anything, but “billionaire energy tycoon,” “billionaire oilman,” “oracle of oil” and “legendary oilman” ALWAYS means T. Boone Pickens. Maybe all the ad copywriters went to Oklahoma State (and contrary to popular belief, they are not going to rename the University, “T. Boone Pickens State” … apparently renaming the football stadium was enough).
The last Boone Pickens teaser was for Clean Energy Fuels back in January, FYI — you can check it out here.
But that’s not all — this is a Boone Pickens stock, but it’s also got something else going for it.
Cooper says that they’re announcing some drilling results next month and that options activity has been heavy and “this stock could easily double if not triple after March results.”
more …
“Several months ago, this O&G exploration company uncovered a massive lake of natural gas potentially so big… it would’ve met America’s total residential demand of fossil fuel in 2005.
“The New York Times reported… ‘holding back its gas flow is like trying to restrain the Mississippi River.’”
That’s actually a misquote of a NY Times article — but the sentiment is the same. I had a couple readers send in the solution to this one before I had even read it, which is always nice, so thanks to Dean (who was the first one to send it in) I can tell you that the Gumshoe has confirmed that we’re dealing with …
InterOil (IOC)
This one has actually been pretty well covered by a bunch of bloggers over at SeekingAlpha, so you can always review their opinions for another take on the company.
Pickens does indeed own about 3 million shares (2,951,616 as of the last SC-13G filing by Interoil on February 12 — 2 million in his name and the rest through TBP Investments). He bought the first 940,000+ shares a while back, and the rest apparently were added last Summer.
Pickens’ purchase in August helped to spur the shares to a quick double at about $40, but the good news is that if you love this company, you can buy it for near the same price he paid — probably less, it’s just under $20 now. It’s been a wild ride over the past 12 months or so.
And I mentioned that the NY Times quote was a bit off — you can click here to read the full article from about a year ago, which does give a nice overview of the company and their big project in New Guinea (and the challenges thereto). The price has come down a bit from when that article came out, too, FYI.
I confess that I haven’t looked in detail at this company, though the volatility and risk seem fairly high to me, but I thought I would close out with the comment Dean sent in when he wrote me with the solution:
“It sounds good till you realize that it is on New Guinea and the gas market is elsewhere.”
He makes a good point — though this is changing, slowly, natural gas is one of the fuels that is really much more economical when consumed within a pipeline’s reach of the wellhead. A LNG terminal is being built and the company says they will be successful at creating a stream of liquefied gas to fill the tankers, but the fact that a terminal and liquefaction facility have to be built and a new market created certainly adds some risk (I don’t know how much). There’s also oil at their site, though the primary focus is gas.
I’m sure some of you have opinions on this one, too, however, so feel free to send ‘em along.
———–
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Subjects: Ian Cooper, InterOil, IOC, Pure Energy Trader
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15 comments for “Ian Cooper: “Could Easily Double or Triple After March Results””
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Another oil and gas play recommended by Cramer is XTO. I would invite the readers to look at it because its three year chart shows one of the most perfect long term technical trends I have ever seen. It is extremely orderly and proceeding at a 45 degree angle.
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I second the emotion. XTO is a really well run company. And by the way, the CEO has been buying shares of the Hugoton Royalty Trust, which was spun off from XTO. Also interesting to consider.
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XTO is a proven entity. Natural gas is a strong growth commodity and a clean, clean source of energy. I have owned this stock for well over 2 years and it has been a HUGE winner for me and all other longs. No need to look for unproven companies. Another proven winner is CHK. These are companies with large insider ownership.
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Here recent article by Jubak on Gas Plays including XTO.
EOG Resources (EOG, news, msgs). About 60% of EOG’s oil and natural-gas resources are in the U.S., and 20% are in Canada. EOG is especially strong in the Barnett Shale region of Texas and in the Rockies. The company had 6.8 trillion cubic feet equivalent of reserves at the end of 2006. About 90% of that was natural gas.
Ultra Petroleum (UPL, news, msgs). At a time when just about every other energy company is showing rising costs, Ultra Petroleum’s costs are falling. Lease-operating expenses per unit in 2008 could be a whopping 40% below that of industry peers, according to Standard & Poor’s. Proven reserves climbed 18% in 2006 to 2.4 trillion cubic feet equivalent. The company also held an inventory of 4,800 undrilled locations that averaged the equivalent of 5 billion cubic feet.
XTO Energy (XTO, news, msgs). Like EOG, this producer is strong in the Rockies and in Texas. The company projected production growth of 18% in 2007 and projects 17% growth in 2008. Total proven oil and gas reserves climbed 12% in 2006 to 8.55 trillion cubic feet equivalent. As of Feb. 12, this was the strongest chart in the sector.
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For all you technical junkies (I am one), the chart of XTO has a perfect 5 year trend, upon reexamination.Had you bought shares while the price was trading on the trend line, it would never have traded lower.(my gift for the year) Think through the the logic of this statement.
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This looks like it could be the stock that Mr. Cooper is touting. However, the stock in the article they are talking about is sitting at about 3 dollars per share. IOC trades around 20 a share currently. IOC has never traded around 3 dollars in the last 3 years at least. The main resemblance to Mr Coopers pick is that the stock is supposed to have a market cap of 589 million, which IOC does adhere to. Not sure what to think in my camp.
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Hi Bull — not sure where you’re seeing $3 a share associated with this stock or teaser, I didn’t see it in the ads or in any articles.
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It has been planned for some time to pipe gas from NG into Queensland. I am not sure if this is still on the drawing boards, but that was to be the market for NG Gas. Keep up the good work.
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XTO actually sounds promising. I’ve made note of it and plan to do some more research.
Best Wishes,
D4L
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i thought Pure Energy Trader was a Mike Schaffer newsletter and I think his track record is way better than Ian Cooper who seems to pick one dog after another, comments please
Sequential
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sequential, have you ever seen ian cooper’s track record from death cross trader? i’m a big fan after he called the top of subprime last February.
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here’s how i’ve done with Cooper’s picks in pure energy. one dog after another, huh?
HOKU – 11% on half
HQFGU – 33% on half
LDK – 49% on half
LDK – 41% on half
HOKU – 17% on half
HQFGU – 33%
CQRFE – 119%
FTUCB – 204% on half
CSUN – 50% on half
FTUCB – 141% on half
GQAGF – -52% loss
PQPC – 118% on half
PQPC – 74% on half
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Notice that Ian Cooper combines technicals with fundamentals which adds to the reliability of his choices. While I dont always agree with all of his choices, I appreciate his analysis because it allows me pick and choose from my own perspective.
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Looks like you did well with pure energy how long have you subscribed to it and is that your total wins versus loss,have you had the same success with death cross trader and do you know what has happened to mike schaffer? who used to write P E
Thanks Sequential
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i think ian has been recommending stocks to pe since mid-november. i’m having about 80% to 85% success with the new pe. not sure what happened with mike schaffer. i followed him too. death cross trader when it was run by ian, was great with housing puts. new editors aren’t as good with it. just my opinion.
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