Last Thursday, I filled my Oil & Energy Investor readers in on the best energy investing strategy to use in a world wracked by rising tensions on the Korean Peninsula, the Persian Gulf, and of course, Venezuela.
Now, energy is still making people fortunes. That hasn't changed, and it's not likely to in the future, either.
But in an increasingly anxious world, investors will see bigger, more consistent profits when they find a way to bridge two critical sectors: defense and energy.
Normally, I'd keep these plays close to the vest; after all, it's only fair. We've already enjoyed double-digit gains in these companies, and the upside potential is still enormous.
More importantly, the geopolitical situation is changing so quickly, and the impacts are so profound, that I want to make sure everyone is holding these three stocks at a minimum.
So here they are…
Profiting in the Three Hottest Trouble Spots
The companies you're about to see are all easy to buy and trade, but they run the gamut, from very large providers of military and defense contracts in energy hotspots, to very small firms with an inside track on the latest defense developments.
All these plays share a connection between weapons systems or readiness, and the defense of energy hotspots globally.
From a military standpoint, these firms each provide for one or more of three critical needs in deterring foreign adversaries' attempted advances on strategic global energy resources and flashpoints. Each one provides a unique and essential solution to a crucial security concern.
As I said, they come from my premium services, where members have already captured double-digit gains on all of them.
Energy and Defense Play No. 1: Northrop Grumman Corp.
Our first pick today is major defense contractor Northrop Grumman Corp. (NYSE: NOC). Northrup is renowned for highly visible, revolutionary platforms such as the Apollo Lunar Module, popularly known as the "Lem," and the B-2 "Spirit" stealth bomber.
Those are impressive machines, but I recommended Northrop to my premium Energy Advantage subscribers for a different reason…
For a breakthrough that may be the most important piece of military technology in years.
Global Positioning Systems (GPS) have been the mainstay of the American abilities to direct military assets wherever they're needed, track deployments by friend and foe alike, and direct strikes when warranted. It has incredible accuracy; it can generally bullseye nearly any object on the Earth's surface to within about 16 feet.
This has helped give it a fundamental "spillover" effect in the civilian sector, as almost anyone who uses a car or smartphone nowadays can tell you.
Unfortunately, GPS has a weakness: It relies on 31 satellites orbiting more than 12,500 miles above the surface to operate. Those satellite networks are now vulnerable to compromise by Chinese, Russian, and others' technology.
About the Author
Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.