The ad that we’re feeding into the Thinkolator today is from Bob Czeschin for his Penny Oil Speculator, and it’s about finding opportunities in “penny oils” that he thinks will “go berserk” when oil rises significantly… as he seems to think is inevitable, given that oil is currently well below the price that most major producers outside of Saudi Arabia need for profitability.
The “13 cents to $1.61” headline isn’t about one of the stocks he’s teasing today — that’s an example of one he’s taking credit for riding in the past, when that was the profit opportunity in BNK Petroleum a few years back….
Here’s the promise from Czeschin:
“The last time oil rose more than $10 a barrel, my subscribers rode …
* Hurricane Hydrocarbons from 57¢ to $11.40
* Ultra Petroleum rose from $1.89 to $37.85
* Coastal Energy went from $1.43 to $18.04
* BNK Petroleum zoomed from 13¢ to $1.61, and …
* Antrim Energy shot up from 48¢ to $7.54
“A mere $1,000 in each of these stocks when I recommended them would have put $75,900 profits in your pocket. Now’s the time to do it again!”
So that’s his idea — oil’s going up, and he thinks he has the “penny” oil stocks that will rise dramatically when that happens. If you think oil will recover there’s certainly some logic there — tiny explorers and producers are likely to be the most levered to oil on the upside, just as they’ve in many cases been catastrophically levered to oil on the downside. Of course, if oil doesn’t recover, well, the pain is likely to continue in that sector — one gets the feeling that a substantial number of companies are just holding on by their fingernails, hoping the ground comes back up to reach them before they have to let go.
What, then, are the stocks he’s suggesting? Well, he’d tell you for $1,875… but let’s see if we can identify them using the clues provided in the ad. Here’s just a wee bit more of a tease for you to get your blood rushing:
“$60 to $90 a barrel sounds like a reasonable equilibrium range for oil. Russia, Brazil, and Mexico become profitable again. The oil sands and shale become marginal — where some producers can make it, and some can’t.
“But $60 to $90 oil also means oil is going to double or triple soon.
“So if you ever wanted to ride a 13¢ stock like BNK Petroleum to $1.61, now’s the time to jump on board. The train is leaving the station””
And now let’s check out the clues — what hints does Czeschin drop about the first one? Here you go:
“One of them is generating so much cash even at $30 oil, it’s hiked dividends twice, while other oil companies are slashing spending on everything from drilling to essential maintenance.
“There are two key reasons why this company is doing so well. First, it enjoys low production costs — just $20.71 per barrel….
“Second, it developed new technology that solves a key problem that’s b