2017 No Brainer TRUMP Presidency Pick

Myron Martin proposes a solution to Keith Schaefer's Promo for a Trump Opportunity

By Myron Martin, January 4, 2017

[ed. note: Travis is passing the keyboard to Myron Martin for a quick note today — Myron has usually focused on researching junior mining stocks for the Irregulars, but he sent in this teaser solution that he thought more readers would like to investigate. We have not looked into the stock being teased beyond what Myron writes below, but feel free to join the discussion with a comment if you have an opinion. Thanks for reading!]

I read Keith Schafer’s bulletins regularly because I consider him one of the most knowledgeable oil and gas analysts in the business—a straight shooter who has made millions in that business. I know Keith and have met and talked with him on several occasions and trust him as honest and sincere. If and when I have enough capital to diversify into oil and gas big time as he does, justifying investing in his service, I will probably do so. I agree with Keith that oil and gas companies with good acreage in the Permian Basin are the current profit centre for energy.

As he notes in his latest teaser ad:

This company is a direct bet that the Permian Basin in Texas will be the most active place for drilling in the country. There is no doubt that the oil industry will make Swiss cheese out of the Permian – drilling thousands of wells.

That’s because the Permian Basin is by far the most profitable oil play – in the whole western world, really.

This promo is my real centre of interest because Keith has been running a similar ad for several months now that sent me on a “wild goose chase” looking for a small company with huge drilling potential in the Permian, where I myself owned several stocks that have done well. I don’t consider it a waste of time because I have found some interesting stocks I will report on in future. However, about half way through Keith’s promo for his newsletter I realized that while I had not found a perfect fit for his Permian based stock, since the election of Trump he has added more clues and now calls his micro cap play in effect his “TRUMP CARD” that a Trump presidency can turn into another ten bagger like his previous wins in the sector.

He says:

Trump’s energy plan is so simple. It involves a lot less red tape… And a lot more drilling. President Trump wants to unleash the full potential of the American shale industry.

Trump has laid out 7 key elements in his “America First Energy Plan”. Every one of them is tied to the exact same theme. The United States is going to drill for oil like there is no tomorrow. That creates The Trump Opportunity.

You really need to listen to his video in full to get the whole story so when I disclose the name of the company he is touting you will be able to check my research to verify I have identified the company correctly. Actually, as soon as he mentioned “frac sand” (a new clue added since earlier versions) I knew what company he was touting:

I’m still not bullish on oil prices. But I am bullish on another commodity. It is a commodity that is closely related to the oil business…That commodity is sand—as in fracking sand. A very specific type of sand that is not found in many locations.

This sand is the single most important ingredient in getting oil out of shale rocks…Frac sand is a commodity that is going to see explosive demand over the next 10 years….

My Micro-cap Trump Opportunity has more going for it than just being in the right industry. It has the most highly coveted type of sand…the very best sand to use.

In fact I already owned the stock based on my own research. Keith boasts about doing a lot of fundamental research, spending a great deal of time and money, and I can say the same, the difference being his is focussed on energy and mine on metals.

Keith ties it back to the location here:

This frack sand company not only has the best sand—it has the best location. Almost ALL frac sand used in the Permian comes from… Wisconsin. That may as well be The North Pole. My Micro-cap Trump Opportunity can beat every competitor when it comes to cost—because it’s A LOT closer to the Permian.

The company in question is Select Sands Corp. (SNS.V, SLSDF). Here is a press release that covers the essence of the company’s situation that fits all the clues given in Keith’s promo. I recommend that in doing your own due diligence you check out their website and read other recent press releases.

As per agreement, I will not trade in this stock for at least 72 hrs after this appears in print so you have an opportunity to grab some shares before I increase my stake. With Keith’s considerable following, the stock is bound to rise as the company ramps up production and becomes better known. With a micro cap like this that is still more of a speculation than an investment, I recommend that you put no more than 1% of your available capital into this stock initially. Build your position progressively as the company ramps up production and sales through the next year, so that concentrated buying does not drive up the price to an unsustainable level ahead of the fundamentals of the company’s natural growth.


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33 Comments on "2017 No Brainer TRUMP Presidency Pick"

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Fabian
Guest
0
Fabian

I’m long SLSDF. Schaefer is a smart operator but very speculative. No Exxon in the portfolio. So far so good with SLSDF. He made me buy FCAU at 6 now above 9.

rubber
Irregular
18
rubber

Fracking is not cost effective if oil remains below $60, lots of companies went bankrupt. If Trump opens up the floodgates we will have too much oil around causing the prices to drop further.

DK
Guest
0
DK

Fracking is currently break-even at about $42 a barrel. With continuing cost improvements, some see that floor dropping to $30.

Travis Johnson, Stock Gumshoe
Admin
5087

That’s a decent average, from what I’ve read, but it depends a lot on where you are — can be $25-30 in parts of the Permian, $60 or more in parts of the Bakken.

Rog C
Guest
0
Rog C
It is select sands. Way back in April 2015 he actually named it as it was an advertorial. Ie he was paid to promote it. It was only 35 cents then! Here is his spiel 30.4.15 cropped-OGIB_Co-Sponsorship-D7A671 2
 Texas Oil Producers are Drooling Over This Advertorial by Keith Schaefer Frac sand is all about location. Location-Location-Location. And Select Sands (SNS-TSXv) has a superb location for its new Tier 1 frac sand deposit in Arkansas—almost right over top of the Fayatteville Shale, and 650 rail miles closer to Texas than Wisconsin, where almost all the other Tier 1 sand is produced… Read more »
sandy_shore
Irregular
82
michelg
Guest
0
michelg

The power of the Gumshoe! 🙂

1.41 +0.12 (9.30%)
Jan 4 – Close
CVE data delayed by 15 mins – Disclaimer
Currency in CAD
Range 1.23 – 1.41
52 week 0.20 – 1.41
Open 1.30
Vol / Avg. 870,984.00/286,263.00

tropicanaoj
Irregular
3
tropicanaoj

While I am continually tempted to make a few speculations in the oil/energy industry, it seems to be more of a political environment than a logical one. Quality find in SLSDF, but I see the oil markets sliding further for a number of reasons. That said, I will add to my watch list. Thanks Myron

rocketman
Irregular
56
rocketman

I was reading somewhere that technology keeps dropping the costs of fracking and soon a lot of these companies can be profitable with oil at $30. I’m definitely interested in this stock.

martinc
Irregular
2
martinc
I’m with rubber on this one. I’m not long oil this year, infact if it reaches $60, I’m shorting it and I’ll tell you why. Pull up a 30 year chart of the current spot price of WTI light sweet crude oil. What do you notice with the price in the years ending in ‘8’? Well, they all bottomed and then spiked 2 years after that into years ending in ‘0’. In 1988, 1998 and 2008 they all did it. If history repeats itself I think oil is headed for a bottom in 2018. You can trade that. I don’t… Read more »
curiousjoe
Guest
0
curiousjoe
“Fusion energy” has been the next big thing for a while. The ITER project (https://www.iter.org/proj/inafewlines), launched in 1985, has yet to achieve safe energy generation via fusion on earth, though it is one of the most expensive research projects ever undertaken. Not surprising, considering it is a collaborative effort among several governments. I hope privately owned General Fusion has better success. Both ITER and General Fusion make the following assumption, copied and pasted from General Fusion’s website: “Fusion powers the sun and the stars, where gravity compresses hydrogen gas to the temperatures required for fusion. The challenge for fusion energy… Read more »
jav13037
Member
18
jav13037
Thank you for the essay. I think if I owned the stock, I would be getting out now and taking profits. If I were the company, this would be a great time to issue more stock to raise capital. There are thousands of drilled but uncompleted wells (DUCS) that need to still be fracked. The oil exploration companies never stopped fracking through the price drop as this was the less expensive part of well development. That is why the oil production didn’t drop as much as rig counts. The O&E’s needed to finish the wells to service their debts. Any… Read more »
Bobwins
Guest
0
Bobwins
I get Schaefer’s newsletter. He is a straight shooter, disclosing buys and sells with his own money. He has focused on the Permian Basin as the premier shale play in the US. Based on his research, drillers are able to make money at current oil prices and pay back the cost of drilling in 12-18 months in the sweet spots of the play. He has scored some major hits, recommending REN when it was $6 vs the current $43. Based on recent land sales, that price could be undervalued by a factor of 3! The sweet spot in the Permian… Read more »
Sital
Guest
0
Sital

Bobwins,
Any idea what company he refers to as The Delaware Basin Gem ? Thanks
Sital.

Edward Tschudy
Guest
0
Edward Tschudy

Linde ….the compressed gas company is working with a local company and has in operation four Frcking Rigs in the Penn, Ohio, W Va and Colorado that frack using Liquid nitrogen or Liquid Co2 to frack wells. Elimiates the Fracking Fluids the An ti Frackers are fighting
Googlr LINDE FRACKING
y friends Daughter is Datingone of yhe operators and I a trying to get a set-down with him

thinairmony
Guest
0
With green energy being the future, I have one question. Do we not (U.S.A.) have oil reserves available that can just be extracted from the ground with out using the costly fracking of shale and tons of contaminated sand and millions of gallons of contaminated H2O? The only reason I ask is because, I never have heard but assumed we had oil that we could get to from just simply pumping it. I just never thaught about it. But I would think you would get the easy oil first and do more inventive ways in the mean time to figure… Read more »
thinairmony
Guest
0

http://science.howstuffworks.com/environmental/energy/oil-drilling8.htm This is a good article, answered my question about oil drilling. Hopefully I can log in tomorrow been having issues for over a week.

thinairmony
Irregular
10

Found this after further research it’s amazing , oil is basicallywhat the gold standard was. http://www.mintpressnews.com/americas-1-oil-doesnt-really-matter/194076/ check out this link also interesting.http://www.greeleytribune.com/news/local/fracking-101-breaking-down-the-most-important-part-of-todays-oil-gas-drilling/

wade3
Irregular
30

Martin, I see that Select Sands’ CEO was replaced today. Is that a good or a bad thing?

wade3
Irregular
30

Correction: CEO replaced a short time ago…Is that just a natural course of things or a sign of trouble within the company?

rocketman
Irregular
56
rocketman

Here’s a detailed article on Select Sands.

https://miningwealth.com/initial-thoughts-on-select-sands-corp/

Myron Martin
Guest
0
Thank you Rocketman for posting the excellent article on SELECT SANDS even though the author initially takes a somewhat neutral stance, in the end he provides some valuable insight. What first attracted me was that as a precious metals analyst I first ran across it due to their gold project and previous experience with other projects established by Rasool Mohammed who is a very smart operator, and that is what I do, follow management teams with a positive track record. Somebody asked whether a recent change in management is a good thing or a bad thing, and my answer is… Read more »
Kathy
Irregular
0
Kathy

Well said, Myron. I purchased SLSDF last week and look forward to making a nice profit on this stock. I’d be interested to know what other speculative stocks you are looking at right now.

smaihar
Irregular
35
smaihar

WHats your entry Kathy. I am looking to buy SLSDF too but not sure where should I enter ?

Kathy
Guest
0
Kathy

I put in a limit order through Fidelity at 95 cents and it went through on Jan. 6th.

Val
Guest
0
Val

Frac sand company is a penny stock which my broker can’t sell. Too bad

dadomkatto66
Irregular
0
dadomkatto66

I just wanted to thank you guys. I bought the stock after your review @ $1.03 and has now reached $ 1.45.
Whether the stock will go up from here or not, you proved you know what you are talking about.
Greatful
SLSDF

Kathy
Guest
0
Kathy

And I bought in at .95. Thank you, Travis!

wade3
Irregular
30

I know ups and downs are part of the game, but anybody have a clue as to why SLSDF has been dropping so for the past week?

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