“The $4.2 Trillion Land Grab on a $1.00 Stock” (Ian Wyatt)

By Travis Johnson, Stock Gumshoe, January 27, 2010

This teaser came to my attention a couple days ago, it’s from Ian Wyatt for his Energy World Profits newsletter, which as far as I can tell is new — it at least hasn’t been covered in this space before. It’s a newsletter that he edits with Gregor Mcdonald, who apparently is an “energy economist,” and yes, it’s all about investing in energy stocks and the like.

And like so many of our favorite teasers, it’s about a tiny stock with a huge and “undiscovered” asset — here’s how they pitch it:

“The $4.2 Trillion Land Grab on a $1.00 Stock

“How You Can Make 696% Gains From One Man’s Visionary Claim Stake

“And How You Can Get a Free Tank of Gas Today!”

I like the “Free tank of gas” bit — they throw in some coupons for $40 worth of gas if you subscribe to their $300 newsletter. I wonder if this will inspire imitators, if we’ll see newsletter dudes plying us with free gas the way that banks used to ply us with free toasters … one can only hope.

We then get into the heart of the sales pitch for this stock:

“Buy Oil for Just 20 Cents a Barrel

“You see, this incredible, forward-looking company is sitting on 685,000 acres of oil-rich land in Canada. Based on test wells and geologic mapping, estimates are that this company is sitting on at least 10 billion barrels of oil, and potentially as much as 60 billion barrels. And at 92 cent a share, it’s like buying oil for just $0.20 cents a barrel!

“With oil trading at around $80 a barrel, we’re talking about a mountain of cash for investors. But when oil moves back to its old highs, your returns will be mind-boggling. Later in this letter, I’ll show you why a return to $147 a barrel (and even higher) is inevitable. But first, some more numbers…

“If the lowball estimate of 10 billion barrels is right, this company is sitting on nearly $800 billion worth of oil! Remember, that’s the low end estimate! I can barely even write the number if the high-end estimates are right…$4.2 trillion dollars.

“And you can buy in — right now — for just under a dollar a share.

“Needless to say, a company with $4.2 trillion in assets should be able to make you quite wealthy when you buy it for just under a dollar a share. And I’m happy to say that you’ve got the opportunity to buy this stock while it’s virtually unknown.”

And of course, Wyatt takes the credit for unearthing this massive diamond in the mid-continent rough:

“And here this little company is sitting on reserves as potentially large as Russia’s. What’s even more astounding – most investors have never even heard of it. It’s not on CNBC. And you won’t read about it in The Wall Street Journal.

“In fact, it would still be undiscovered if I hadn’t zeroed in on it.

“I knew when I found this company with 685,000 acres of land in Saskatchewan — land that could hold up to 60 billion barrels of oil — I had to get this urgent message out to you, while the stock is still flying under Wall Street’s radar.”

And then he goes on to make it quite easy for the Gumshoe, going into some of the company’s history:

“Todd Montgomery is described by his business partner as “a traditional prospector type…” Despite serving as CEO or Director for several public oil companies, Montgomery “…more or less lives out of his pick-up truck…”

In the mid-90s, Montgomery approached his friend Christopher Hopkins about prospecting for coal north of Alberta’s Athabasca region….

“Montgomery found coal in Alberta. But he also found oil sands. He and Hopkins started a company to exploit the bitumen deposits. They eventually sold 40% of the company to the Chinese oil giant Sinopec (NYSE:SNP).

“By the time Montgomery and Hopkins sold out to Sinopec, oil prices had already started their meteoric rise. And that’s when Todd Montgomery’s visionary genius made history.

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“You see, all of the developed Oil Sands fields stopped at Alberta’s border with Saskatchewan. Even though Shell found Oil Sands in Saskatchewan as far back as the 1950s, the discovery was never developed.

“In 2003, using a little-known clause in Saskatchewan’s 1964 Oil Shale Regulations, Montgomery laid claim to 1.4 mi