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.”
“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 …
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.
Personal Capital is an advertiser with Stock Gumshoe, but Travis also uses it every day for his personal accounts and finds it invaluable. Here's what he said: "They offer a great (and genuinely FREE) 'second opinion' for your financial plan, but what I love most is their automated financial dashboard -- it will look at all your assets and debts, tally up your asset allocation, project where you'll be at retirement, and suggest ways to manage risk or improve returns. It's free, I think their free tools are great, and I think it's worth checking out -- you can do so here.