“World’s Best Stock” — Code Name: Project Lightning

Friday File Look at the "clandestine back-room deal" teased by Wall Street Daily

This article was originally published in the Friday File for Irregulars on July 6, it was opened up to all readers on October 11 but has not been edited, updated or otherwise changed.

Today we’re taking a look at a new teaser that started running this week, with most folks apparently getting it yesterday or today if the questions that are pouring in are any indication. The pitch is from WSD Insider, which is apparently the new name of the White Cap Report from Louis Basenese, Karim Rahemtulla and the gang (seems like many of the Agora-affiliated newsletter groups change their name every couple years, and they always change the name from something distinctive to something more generic — I suspect that they do this solely to confuse yours truly, and it’s working).

Here’s how they get us lathered up:

“On March 12, 2012, a clandestine back-room deal was given the green light – creating a $34 billion energy virtual monopoly.

“Now, an unforeseen chain reaction is about to unleash a massive stock move – beginning as early as August 8.”

And they draw an enticing and intriguing picture — as they always do — of the back-room dealing that led up to this deal that you just have to get in on … here’s a taste:

“A simple phone call set the wheels in motion.

“Not an official ‘corporate conference call.’ Just two guys talking. One in Chicago. The other, in Baltimore.

“Then, a private dinner two weeks later. In Palm Desert, California.

“Neutral territory.

“Away from prying eyes.

“Soon, key players were meeting secretly at exclusive clubs and dining rooms.

“Even switching out briefcases on occasion – to conceal identities and throw people off the track.

“Clandestine meetings with the big money soon followed – Morgan Stanley, Barclays Capital, JPMorgan.

“These talks were so secretive, one company even frosted the windows surrounding their boardroom – so no one on the outside would know who was meeting on the inside.

“According to uncovered documents, they called their deal Project Lightning.

“The main entities each had code names, too: Bolt and Electron; Ginger and Allspice.”

So that’s the basic idea — this “Project Lightning” was set up on the down low, to make sure that no one outside the inner circle got wind of what would be such a massive deal to enrich us all (or at least, those of us in the know).

The tease keeps flowing for several pages, telling us about the catalysts that are coming up this Summer and which will ramp up revenues for this company … which is, of course, just what we like to hear.

The August 8 “catalyst” is just that that’s the peak of the Summer for most of the US, the hottest time of year and the time when electricity consumption usually spikes with air conditioning. And the basic argument for other “unknown” catalysts for this company is that investors don’t realize how much economy of scale this new firm will have, or how much they will benefit as (if) electricity rates rise.

And they also hint at a way to make 1,000% quick gains from this “Project Lightning” even as they clarify that it’s not a “get rich quick” investment — so that means they must be recommending buying the stock but perhaps also speculating a bit on some call options if they think the shares will move quite a bit in the short term.

Because, as you’ll see in a moment, there’s no way that this stock itself is going to go up 1,000% this year — or even this decade, in all likelihood. What they’re teasing is a large utility company, and it may indeed be profitable and a good buy, but it’s not going to double this Summer unless something really, really wacky happens.

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But which electricity seller are they teasing with this “Project Lighting” business? We do get a few more clues, along with another helping of hyperbole:

“On March 12, 2012 – approximately 18 months after that first fateful phone call – the federal government gave its blessing to Project Lightning.

“And what began as a secretive chat between executives became the largest player in one of the most important industries in America… energy.

  • With $74.5 billion in assets
  • $32.7 billion in revenue
  • And $36.8 billion in market capitalization

“Yet despite the size of this new powerhouse, few people are aware of what’s really happening behind the scenes.

“And that’s exactly what we’re going to exploit.

“In the coming months… after this company has doubled or even tripled in price… a lot of people are going to be sitting around slack-jawed, wondering how they missed out on this.

“They’ll look at Project Lightning’s meteoric rise – and they’ll write it off to blind luck. Or a freak coincidence.”

More? Sure, we can scooch a few more details out of the ad:

“Project Lightning is the single biggest player of its kind in the market.

“But here’s the real opportunity:

“Despite its size, despite their immense capacity to control their market… the stock price hasn’t caught up yet.

“Meaning we have the chance to get in on the “ground floor” of this monster corporation – and pick up s