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Two Safe Ways to Profit From the "Alibaba Shockwave Effect"

In the mid-1990s, I was fortunate to meet and start working with an Upstate New York money manager named Anthony M. Gallea.

The relationship began when I attended and wrote stories about some of the investment seminars he periodically held for prospective and existing clients. He then became a “source” for some of the investment stories I periodically wrote for Gannett Newspapers. And we ultimately collaborated on a pretty successful book about “Contrarian Investing” that was published by Prentice Hall.

Along the way, Tony shared some pretty important snippets of investing wisdom…

  • Natural Gas Prices Will Head Higher on These Critical Factors natural gas prices

    Natural gas prices, like any commodity, are affected by supply and demand - but weather plays a main role in this energy's cost.

    In order to forecast where natural gas prices will be trading in coming months, it's important to look at what's expected for this winter and how much temperatures will differ from region to region.

    Here's what we know about how weather will move natural gas prices into 2015...
  • Where Crude Oil Prices Are Headed Next crude oil prices

    To hear some analysts tell it, geopolitics and the weather are exogenous events when it comes to energy prices. That is, somehow crude oil prices would operate "rationally" if it weren't for either of them.

    That type of thinking is costly. When investors disregard the weather, the geopolitical, or both, they lose money.

    So as we begin the fourth quarter, I’m going to handicap where oil prices are headed next…
  • The Wild Card in the Ongoing Global Energy Crisis

    The conflict in Iraq is escalating beyond all hope of control - and it's impacting a huge number of investments worldwide. So we reached out to Dr. Kent Moors, one of very few people who've advised both the Kurdish regional and Iraqi federal governments.

    What he told us was incredible, bringing crystal clarity to what had been an extremely murky picture.

    More importantly, Kent's showed us a way forward through the supply crisis, and, as we'll see shortly, a way to profit from it.

    Here's Kent...
  • New Arab Spring Could Breed Chaos in the Energy Markets As Dr. Kent Moors explains, growing unrest means Pakistan is now ground zero when it comes to energy markets in the Middle East. Read more... Read More...
  • Russia: The Greatest Threat to the Energy Markets There's an old saying, "The more things change, the more they stay the same."
    And modern Russia a perfect example of this saying. And this move to the past autocratic methods is creating a very unstable future for the energy markets.
    Dr. Moors explains the warning signs in Moscow that are making energy traders start to worry.
    To find out what's happening and what it means to you, read on...
    Read More...
  • Three Hidden Water Costs That Promise to Boost Energy Prices On average it takes 4.4 million gallons of water to “frack” a well. As Dr. Kent Moors explains, that has big consequences for energy prices. Read more... Read More...
  • Energy Investors Will Love These New MLPs The "midstream" segment in oil and gas markets is undergoing some very interesting changes these days. It is diversifying in an exciting way for income investors. MLP "clones" are starting to emerge, controlling more expanded activities and new product-specific focuses that never existed before. That means brand-new investing opportunities for you. Here's what's so interesting about this new development... Read More...
  • The Next Big Change in the Energy Markets The energy market is rapidly changing. Dr. Kent Moors explains how to hedge your oil and gas stocks with this simple "insurance policy." Read more... Read More...
  • How to Play by the Rules and Beat the Tax Man with MLPs Paying taxes is about a pleasurable as a root canal. But as Dr. Kent Moors explains, you can ease the pain by investing in Master Limited Partnerships, or MLPs. Here's how. Read More...
  • This Shifting Balance Will Have a Huge Impact on Energy Investors As the new balance emerges, we will see a realignment of global energy prices. And both the sourcing and use of energy will open up significant opportunities worldwide. Here's what's causing the shift. Read More...
  • Why I Cancelled Everything in Germany and Took the Next Flight to Dubai Something big unfolded on my trip to Frankfurt last week.
    It began with meetings in Germany over natural gas prices. They morphed into a discussion on how government subsidies affect energy prices. Our conversation turned to a recent IMF report that criticized taxes on energy - specifically pre-tax concessions - those provided by governments to producers in oil exporting countries.
    That led four of us to drop everything in Germany and fly to Dubai, so we could hash out the matter firsthand with some of the folks responsible for those tax benefits.
    What we learned there could change everything in the global energy markets and have huge consequences for energy investors around the world.
    Remember, you heard it here first Read More...
  • Investing in Clean Energy Stocks Just Got More Risky

    Despite its promising future, clean energy stocks have proved to be an investing minefield.

    Even China-based clean energy stocks are no longer a safe haven. Yesterday (Monday) Suntech Power Holdings Co. Ltd. (NYSE ADR: STP) defaulted on its debt.

    Heavy losses caused by plummeting prices for solar panels - which fell 73% from 2010 to 2012 - left Suntech unable to make the payment on a $541 million bond that was due Friday.

    The news caused Suntech stock, already down 80% over the past year, to slip another 10%.

    While numerous U.S. renewable energy companies have faltered, most notably the 2011 bankruptcy of solar panel maker Solyndra, Suntech is the first Chinese clean energy company that could go under.

    What's new is a reluctance on the part of the Chinese government to keep pouring subsidies into money-losing companies.

    To continue reading, please click here...

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  • What's Keeping Oil Prices Down – for Now, at Least Kent cnbc oil Sequestration, production concerns in China and the political mess in Italy have combined to keep oil prices down, says Money Morning Global Energy Strategist Dr. Kent Moors.

    Speaking on CNBC, Moors said the oil market is now "slightly oversold."

    Moors said increased demand and less refinery capacity being used could increase the oil crack spread in the United States, leading to higher energy prices even if oil prices fall.
    Asked why energy prices are so high, Moors said there are six or seven major factors.

    "The bottom line," he said, "is we have to stop looking at Western Europe and North America when we talk about oil demand because oil demand is being driven essentially worldwide by completely different regions."

    Among them, Moors said, is West Africa, where oil demand is spiking.

    Watch the accompanying video to hear Moors talk more about global oil prices and how they will affect you.

    To continue reading, please click here…

    Read More...
  • Watch What Carl Icahn Does to These Energy Stocks Light bulb

    Energy stocks have been largely left behind in the recent stock market rally - except for those with interest from activist investors like Carl Icahn.  

    You see, concerns about global demand as well as political pressure to focus on alternative energy have weighed on energy stocks. So have the low price and oversupply conditions in the natural gas markets.

    Many of these energy stocks trade at what seem to be very low prices compared with the assets owned by the corporations and their future prospects.

    This has attracted the attention of many activist investors looking to force the share price to unlock the real value of the underlying corporation.

    One of the best-known activist investors, Carl Icahn, has accumulated several positions in leading energy companies in the past year because of low prices and under-valuations.

    Take, for example, what Icahn's done with CVR Energy Inc. (NYSE: CVI).

    Icahn owns 83% of CVR, a refiner that has seen its stock price soar recently as refining margins have improved. The company also has a fertilizer business that is a major beneficiary of lower natural gas prices.

    The stock has better than doubled in the past year so it would be foolish for investors to chase the shares now.

    But CVR does serve as an example of the sizable returns Icahn is looking to achieve in his foray into additional energy investments, like the following two stocks he's been accumulating.

    To continue reading, please click here...

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  • Why Oil Refiners Are Among the Best Energy Stocks to Buy Now Energy oil refinery 3 small

    Shale oil production continues its upward path, increasing overall U.S. oil production and making specific groups of energy stocks among the best to buy right now.

    In fact, the U.S. Energy Information Agency (EIA) reported last month that domestic oil production surpassed the 7 million barrel a day level, the highest point in nearly 20 years. Production this year, the EIA says, will rise by another 14%.

    This is obviously good news for the companies producing that oil, and it gets even better. Many industries outside the energy sector, including chemicals and railroads, have benefited from the shale boom.

    But there is one subsector in the energy industry that has reaped the rewards of plentiful oil from the Bakken and other areas more than any other, and that's the refining industry.

    To continue reading, please click here...

    Read More...