“How You Could Make 4,599% Gains From Iranian Oil Without Dropping a Single Bomb!” (Chris Mayer)

By Travis Johnson, Stock Gumshoe, February 9, 2011

Given the massive mailing list reach of Agora, Chris’ publisher, you’ve almost certainly been sent this ad for his Mayer’s Special Situations newsletter — it’s all about a tiny stock (of course — they’re always tiny) that can make you massive gains by virtue of the oil they’re going to suck away from Iran’s massive Zagros Oil Field.

Or at least, that’s the short spiel. This is one of those accursed videos that lacks a real transcript, so I have to actually pay attention to Mayer’s voice for the whole time (I know, I know, if you hit “cancel” you get a transcript for many of these videos — but not all of ’em, dangit).

The basic pitch is that he’s got a special report that he thinks is worth $795, just one of the many earthly delights that you’ll enjoy after you subscribe to his newsletter (the letter is $497 — which, naturally, is “on sale”). This is his “upgrade” letter, the one that he sells (he’s not alone, every publisher does this) by telling folks that there are more exciting, less liquid investments that he loves … but he just can’t recommend them to the great unwashed (that being, subscribers of his regular, less expensive newsletter).

Here’s how he pitches it on the order page:

How You Could Make 4,599% Gains From Iranian Oil Without Dropping a Single Bomb! One tiny British Columbia oil company has just discovered $51 BILLION worth of oil in underdeveloped Southeastern Turkey… north of the world famous Zagros Oil Field in Iran. I could “steal” millions of barrels of oil from Iran and see gains of 4,599% off this booming stock.”

I sometimes like the stocks that Chris Mayer recommends, and I always like to unravel a good secret — so let’s see what clues I can dredge from the video and what plain and simple answers I can possibly provide (following a fair chunk of Gumshoe blather, of course).

Ready? Very well.

So we know it’s a BC company, and that they’re drilling for oil in Southeastern Turkey, and that the implication is that the fields they’re exploring in that area are connected in some geological way with the big Iranian oil field, so if they can extract the oil from the Turkish end they may be “stealing” from Iran.

Oh, and if we “act quickly” we can get in for “a fraction of the market value.” Naturally.

More clues, please?

We’re told that it’s under $3.50 a share.

And that the oil reserves might be worth more than 50X the market cap, based on today’s oil prices.

It’s on the northern edge of the Zagros oil belt, which is the formation that includes the big Iranian oil field.

That there are 600 million barrels of oil in this massive belt, according to a leading consultant — not sure if he means this is the potential of this specific company, or of the whole formation.

And he says several times that the oil could be worth $51 billion, and that it’s essentially a steal in the hands of a BC penny stock (I don’t think he actually used the word “steal”, but I’m not willing to sit through the “video” again to make sure).

Mayer goes on to tell us that this stock could soar 40-fold and still be grossly undervalued, and then we get some more specific clues that might actually be useful:

Michael Dell, T. Boone Pickens and George Soros are, we’re told, “quietly” building positions.

There has been $5 million worth of insider purchases from the chairman “recently” with his own money.

And “you don’t have to send your money outside the US” — so it’s presumably either US-listed or easy to buy on the pink sheets.

Beyond the Turkey/Iran connection, Mayer also uses the “in-the know insider” pitch — and especially emphasizes his insider buying. It’s all built on the history of the Chairman of this teased company, who is some kind of whiz-bang genius at building oil companies.

Apparently, a few years ago, this savvy oilman billionaire saw Texas getting more competitive and with fewer opportunities for new discoveries, and he sold out of the company he had built from nothing and went on a worldwide search for a “game changing oil discovery.”

And this dude, we’re told, has made money over and over in the business. I think I heard right when Mayer said that he turned a $500 loan into a billion dollar drilling company, and he has been involved in the oil biz for three decades … and not only that, but he also sold at the top of the historic oil spike in 2008.