This one is from Matt Badiali at the S&A Oil Report, which we’ve seen a few times already. It teases a couple little companies, but first starts us out with a long-winded teaser about the idea of investing in penny oil stocks.
That’s really all the “Colorado Oil Jackpot” is — the concept that in order to make massive returns in resource stocks, you need to buy penny stocks. The Colorado part comes from the fact that there were so many tiny resource companies selling royalty rights and shares for pennies in Denver way back when the West Was Won.
That idea is teased with a few snippets from the mainstream press to give it the ring of truth — first is one about a Fortune Magazine article that told the story of how former Colorado Governor Richard Lamm took advantage of this “oil jackpot” to make $44,900.
That story, by the way, is from 1987. And it’s Read the rest of this entry »
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