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We'll Tell You When It's Time to Tap Tesla

A week ago today, in a strategy story aimed at helping you survive and thrive in today’s whipsaw markets, Chief Investment Strategist Keith Fitz-Gerald told us to put Tesla Motors Inc. (Nasdaq: TSLA) on our “watch lists” for a likely future purchase.

“BP, Tesla is a definite ‘shopping list’ stock,” Keith told me back then. “We’ve been nibbling at it here, and have played it successfully several times. But it’s not yet at the point where I’m ready to jump all the way in. I think my rationale behind Tesla remains upbeat. I mean, you’ve got a real winning combination here – a disruptive sales model, a CEO who’s the most innovative guy on the planet, all the capital in the world that can be brought to bear. I don’t give a rat’s [tail] that New Jersey won’t let the company sell its cars there. There are much bigger opportunities. Wait ’til you see what the company does with China.”

  • Natural Gas Stocks 2014: A Bullish Sign from This LNG Export News LNG Ship

    Natural Gas Stocks 2014: As Russia's clash with Ukraine and the West boils on, pressure is mounting for the federal government to loosen export regulations on U.S. liquefied natural gas.

    Currently, the U.S. exports natural gas to only a handful of countries, such as Canada. No U.S. LNG is exported to Europe.

    That's mainly because the key factor in gaining the U.S. Department of Energy's blessing to export is whether or not the importing country has a free-trade agreement (FTA) with the United States.

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  • LNG Stock News: This Global Revolution Is Gaining Speed Industrial pipe with gas and oil and water

    Recent liquefied natural gas (LNG) stock news highlights how this global gas revolution is finally gaining traction...

    In December, for example, Cheniere Energy Inc. (NYSE: LNG) announced two contracts collectively worth $9.5 billion with Bechtel Oil, Gas & Chemicals to construct LNG trains and facilities in Corpus Christi, Texas.

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  • Best Investments in Natural Gas: This New Demand Source Is Changing Everything lion - Panthera leo (8 years old) The energy markets haven't seen anything this big in decades. No less than five major shifts are creating a massive spike in demand for natural gas, but one in particular is a true game-changer. This is creating a rare opportunity for energy investors...
  • For the Best Natural Gas Stocks, Look Deep in the Heart of Texas Texas

    To pick the best natural gas stocks to play the natgas price rise, you need to look not just at company fundamentals, but one crucial factor: Where these companies' assets lie...

    That's because companies with assets in Texas are booming, and will deliver some of the best gains ever seen by energy investors.

    Texas is the historical center of the U.S. energy industry. Today it's a major producer of natural gas.

    Joel D. Moxley, president of the Gas Processors Association, told the Houston Business Journal, "Booming is the only way to describe the natural gas industry in Texas."

    Texas holds about 23% of the U.S. natural gas reserves and accounts for approximately 30% of current U.S. output.

    Its present output is roughly 19.7 billion cubic feet of natural gas per day. That means if ranked globally, Texas would rank third for natural gas production - behind Russia and the other 49 U.S. states.

    One main area of focus for natural gas in the Lone Star state is the Eagle Ford Shale Formation. Production there nearly tripled between 2009 and 2012.

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  • Natural Gas Game Changer: The U.S. Paves Way for Sabine Pass Last week, natural gas prices fell below $2 per 1,000 cubic feet for the first time in a decade. Let's talk about what that means for you, as an investor.

    The oversupply of natural gas continues to swell thanks to breakthrough technologies in fracking and horizontal drilling that "unlocked" this huge swath of energy. Tack on that local U.S. demand has been limited by an unseasonably warm winter, and you get the unsurprising dip in gas prices.

    Meanwhile, in Europe, prices are near $11 for the same quantity, and $14 in South Korea, an important hub to the Asia-Pacific markets.

    But with no (legal) way to... Read More...
  • How to Play Decade-Low Natural Gas Prices Natural gas prices remain below $2 per million British thermal units, the lowest level in 10 years. Prices will likely remain depressed for a while, but cheap natural gas now means great opportunities for long-term profits. Money Morning Capital Waves Strategist Shah Gilani joined Fox Business' "Varney & Co." to share two of his favorite picks to play natural gas prices. Just watch this video to hear why Shah thinks these stocks are "Buys."

    Loading the player ... jwplayer("container").setup({ autostart: true, controlbar: "bottom", flashplayer: "http://s3.amazonaws.com/moneymappress/player.swf", file:... Read More...
  • Natural Gas Companies: A Contrarian Bet on Higher Prices The decline in natural gas stocks has been anything but natural lately.

    With ample stores and cheap prices, natural gas-related equities have taken a beating and continue to be battered.

    While it is always difficult to call a bottom, the tide may be turning for natural gas companies despite the latest data.

    The price of natural gas fell again last week after the government reported an unexpectedly large increase in supply. To date, natural gas prices have slumped to levels not seen in 10 years.

    Recent Energy Information Administration (EIA) reports reveal that the energy industry continues to deliver gas at a faster rate than Americans can consume it.

    U.S. supplies grew by 42 billion cubic feet in the week ended March 30, pushing the country's total supply to 2.5 trillion cubic feet. According to Platts, a premier source for energy prices, industry analysts had expected supplies to grow between 33 billion to 37 billion cubic feet.

    With natural gas stores bursting at the seams, some of the nation's largest producers have announced plans to scale back production.

    Jen Snyder, head of North American gas for research firm Wood Mackenzie told the Washington Post, "There hasn't been enough demand to use all the supply being pushed into the market."

    Where prices go from here depends a great deal on the weather.

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  • How to Profit on the Natural Gas Surplus The recent mild winter and the unparalleled potential in new shale gas production have combined to result in a depressed pricing market for natural gas.

    The rise in demand for everything from electricity to petrochemical feeder stock, liquefied natural gas (LNG) exports, and even usage in vehicle fuels, will start driving that price up over the next two years.

    You already know that, of course.

    We've talked about it many times before.

    But now there's something else on the horizon that is likely to provide a boost to investor prospects even sooner.

    Utilities, one of the main beneficiaries of the gas boom, are moving to capitalize on the accelerating transition in power generation.

    And in the process, two important trends are emerging that will be of interest to retail investors.

    First, the low current prices and the prospect of rapid increases in extraction rates, if the market warrants, are allowing electricity managers the opportunity to plan for multi-year cost projections.

    That, in turn, is propelling the intensified replacement of aging capacity with new gas-fueled plants.

    As Pacific Gas & Electric Co. (NYSE: PCG) CEO Tony Earley noted this week, infrastructure investment becomes a priority when projected fuel prices are low. The system has to be upgraded and replaced in any event, as large segments of it reach the point of "retirement."

    Earley also has advanced the idea that the power industry needs to speak with one voice in its dealings with regulators and policy makers.

    This need for solidarity has been reflected in comments from other leaders in the power industry as well.

    As policymakers increase capital expenditure spending in infrastructure replacement and expansion, we are also likely to see a renewed interest in developing a consensus on where the next "generation of generators" is going to be moving.

    And one of the drivers coming onto the scene moves right into familiar - and profitable -territory, at least for us.

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  • The Natural Gas Act: Another Washington Boondoggle With gasoline fast approaching $4 a gallon and heading toward $5 this summer, it's no surprise that politicians are panicking.

    In Washington D.C., everything is an emergency. Legislation is always the antidote.

    So now politicians are pushing the Natural Gas Act as a solution to high gas prices, rather than allowing the market to work.

    Of course, none of them want to take the time to understand the true reasons why gas is going to $5 a gallon.

    That would require a basic understanding of business or economics, something few in Congress seem to have.

    Instead, what you can expect is the typical Washington response-a task force to investigate speculation in the oil futures markets.

    U.S. President Barack Obama announced one last week without recognizing the futures markets actually improve liquidity and oil production certainty.

    It's how Washington works. The Natural Gas Act is just more of the same.

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  • Marathon Petroleum Corp. (NYSE: MPC): The Best Way to Turn High Gas Prices into High Octane Profits Average gas prices currently are about $3.75 according to AAA's Daily Fuel Gauge Report.

    That's higher than the average for all of 2011, which was the priciest year ever for gasoline. And what's worse is they're only going higher from here.

    But if you think that investing in oil majors will help you overcome the sting of high gas prices this summer, think again.

    While prices for both gasoline and crude oil have surged more than 10% this year, stock prices for oil majors like ExxonMobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) have been flat.

    The dividends these companies pay won't make a dent, either.

    It would take the average American something along the lines of a $20,000 investment in a stock that yields 3% to compensate for the surge we've seen in gas prices.

    One reason these stocks have floundered is that the recent rise in oil prices has largely been the result of political tensions in Iran, rather than increased demand for oil.

    Another is that President Obama has Big Oil subsidies in his crosshairs as he heads into this year's election.

    Energy lobbyists have flooded Capitol Hill and Republicans have rallied to the defense of oil companies, but the November election will ultimately decide the fate of the $4 billion of subsidies oil majors get every year.

    With so much money at stake, investors are rightfully wary of companies like Exxon and Chevron.

    Still, that begs the question: If big oil stocks offer no respite from high gas prices, where can investors turn?

    One solution is to invest in the United States Gasoline Fund LP (NYSE: UGA).

    UGA invests in futures contracts on unleaded gasoline traded on the New York Mercantile Exchange (NYMEX). It's already up 18% this year.

    But there's still an even better option, and that's

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  • Natural Gas Q&A: Lies, Damn Lies, and Statistics It has been a while since I responded to your many emails.

    So, as we await the latest developments in the European debt mess, today seems like a good time to answer a few. This time around, I am addressing some of your questions and comments that deal with natural gas.

    By the way, my staff and I read all of the input and feedback you send our way, and we're very grateful for it. Please email me at customerservice@oilandenergyinvestor.com. (I can't offer any personalized investment advice, but I can address your questions and comments in future broadcasts.)

    Let's get started...

    Q: I've just read recently several articles stating that the EIA has revised downward its estimate of our natural gas shale reserve potential by deciding to accept, unconditionally, the most recent U.S. Geological Survey stating that the Marcellus, Eagle Ford, Barnett, and other shale formations hold only 20% of the heretofore accepted reserves. This is an 80% reduction! This changes everything if true.

    That's the question - is this bogus, or is there factual evidence to conclusively support this new estimate? ~ Howard B.

    A: Howard, this reminds me of a famous statement from the 19th-century British Prime Minister Benjamin Disraeli (though the comment is also variously ascribed to Mark Twain, Alfred Marshall, and many others): "There are three ways to hoodwink the masses - lies, damn lies, and statistics."

    The Energy Information Administration (EIA) - a unit of the U.S. Department of Energy - continues to wrestle with the distinction between reserves and extractable reserves.

    The first is the volume of gas indicated by field tests and analysis. The second is gas available for extraction at current methods. I would also stipulate as "extractable" reserves only the volume that market conditions allow.

    When you equate the two, we are still in the same ballpark.

    Current estimates put no more than 20% of known reserves as "extractable." As technologies improve, that figure could improve, too.

    For now, the EIA estimate falls in line with most others.

    So to answer your question, nothing much has changed here, aside from some government bureaucrats wanting their figures to be more accurate.

    Q: Kent, your work appears to be expanding into areas of advisement that could affect the future profitability and wellbeing of nations and their business relationships with existing partners. A delicate balancing act if there ever was one! If such arrangements are not handled carefully, could sanctions and/or military skirmishes be the outcome? Are we facing the possibilities of "gas wars"? ~ Fred P.

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  • Double Your Profits in the New Age of Natural Gas I recently got an e-mail from one of my Oil & Energy Investor subscribers, who posed a very interesting question. Take a look:

    I bought a nice position in Cheniere Energy Partners LP (AMEX: CQP). It is not clear to me if they are in a position to benefit earnings-wise from future expansions of the business. Is a future dividend increase in the cards?
    - Harry M.

    The broadening initiative to export liquefied natural gas (LNG) from the U.S. to Europe and Asia has put a few companies in the spotlight.

    Cheniere is certainly one of them.

    Actually, we are dealing here with two tradable securities - Cheniere Energy Inc. (AMEX: LNG) and Cheniere Energy Partners LP (AMEX: CQP).

    With Cheniere, we have both the company pioneering the LNG exports (Cheniere Energy), and the partnership controlling the company's Sabine Pass terminal on the Gulf of Mexico at the border between Louisiana and Texas (Cheniere Partners).

    As my Energy Advantage advisory service subscribers will tell you, we're always discussing the new age of natural gas. This includes the impact LNG trade will have on profitability, and the position of Cheniere in this process. And Cheniere Partners is just one of the high dividend/high return stocks I have identified for them.

    Lucrative LNG

    As you probably already know, LNG is a major remedy for the accelerating glut of American and Canadian unconventional natural gas production, which runs the risk of oversaturating the market and depressing prices.

    Exporting the gas, on the other hand, taps into widening international demand and carries the prospect of actually improving profitability for gas producers in North America, even while the domestic need for the energy does not keep pace with rising supply.

    In so doing, U.S. and Canadian producers are simply paralleling developments already in place in Australia, New Guinea, Russia, and above all Qatar - the first dominant gas producer in the world to commit all of its exports to LNG shipping.

    This worldwide trend has transformed the LNG trade from import to export.

    As recently as five years ago, we were still talking about importing more LNG into the United States, as conventional production declined.

    Now with shale gas (along with coal bed methane and tight gas), the unconventional sources provide more available gas than we ever imagined.

    The issue now is how to export the surplus gas.

    Enter Cheniere's Sabine Pass terminal.

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  • This Energy Stock Has Climbed 20% – In Just Two Weeks Oil prices jumped more than 4% yesterday (Monday), hitting the highest level in two months and boosting one of our favorite energy stocks to a 20% gain in two weeks.

    Since falling to a 52-week low of $76.15 a barrel this month, oil prices rose 4.4% Monday to close at $91.27 a barrel.

    This resurgence in oil prices is just what we've been forecasting in Money Morning, as well as in our Private Briefing investing service.

    "il will be going up, and the rest of that sector ... to varying... Read More...
  • Don't Miss Your Chance to Profit from the Best Coal Stocks U.S. and European debt concerns have triggered some dismal market performances - but there is still one energy sector that's moving up.

    And that's coal.

    The Dow Jones U.S. Coal Index, which tracks 69 energy and coal-related companies, has climbed 60% in the past year and 13% in the past month.

    So what's the key motivating factor moving the world's best coal stocks higher?

    Simply put, it's a combination of shrinking supplies and rising demand.

    Indeed, Coal prices are up more than 20% in the past year and many experts say increasing consumption from emerging economies like China - the world's biggest coal consumer - and India will push prices even higher.

    China's rapid growth has been the main driver behind an average 3.8% annual increase in global coal demand since 2000. In fact, the country accounted for about half of the world's coal consumption in 2009. And a China Energy Research Institute report recently estimated that country's economic growth, urbanization, and rising middle class would increase coal demand by 700 million tons to 1 billion tons by 2020.

    India's coal imports are expected to double to 100 million tons by 2012. And Japan also will boost demand attempts to rebound from the tragic March 11 earthquake and tsunami.

    Growing demand isn't the only reason to believe prices will soar, either. Because as worldwide demand surges, global coal supplies are rapidly falling.

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  • The Top Five Natural Gas Companies to Watch NEW YORK - I've briefed Wall Street before. This time, however, the 57th floor conference room is packed. Some heavy hitters invited me to explain why natural gas is the upcoming energy play.

    By the size of the crowd, it seems the word is getting around.

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