I received a financial newsletter promoting the following unidentified stock:
Marcus Samuel and his small group of investors created one of the world's largest fortunes – a company now called Royal Dutch Shell. It's valued today at over $200 billion. Their wealth didn't come from discovering oil… it came from understanding the importance of transporting energy around the world to the markets offering the highest prices.
The exact same thing is happening today with a new form of energy called LNG.
To ship natural gas around the world, it has to be converted into a liquid form, something called liquefied natural gas, or “LNG.” Once converted into a liquid, natural gas can be shipped via tanker, much like oil. But… the big difference is LNG requires specialized, very expensive tanker ships. And it requires huge import and export terminals.
Building out these new ships and these new terminals will take at least a decade. And during that time, investors in the right assets will build huge fortunes…. Like the investors who are smart enough to buy LNG tankers today. The world's shipyards currently have more than 140 LNG vessels on order...
Luckily for regular, individual investors, a well-run company already owns one of the largest fleets of these highly specialized, expensive ships. It owns 27 ships, in fact, some of the largest in the world. It's engaged constantly in deals to acquire more ships, and it has dozens more on order. I'm certain this stock is going to soar over the next few years. And here's the best part: The company boasts a current yield of 7.1%.
Just imagine earning 7% in income… while you're building the most valuable collection of ships on Earth… all in a financial environment where you essentially earn nothing on your money in the bank.
Global demand for LNG is expected to increase by more than 50% over the next two decades. I think we'll see capital gains of 20%-30% per year in this company, in addition to the big annual dividend. It will be hard to make more money in any other safe investment.
In fact… I believe this shipping stock is one of the only “sure things” you can invest in today and make a bona fide fortune. What are the other sure things?
Just think about this for a minute. Right now, natural gas costs a lot more in Asia than it does in America – roughly 300% more. Like Marcus Samuel proved, investors can make a fortune by selling energy in foreign markets. To export American LNG, we need two things. First, we need boats, like the LNG tankers I mentioned above. Second, we need LNG export terminals in the U.S.
1.Special Tankers to transport LNG - ( I own TGP, GLNG, and GLOG)
2. Export Terminals with Gassification Ability - (I own CQP)
The problem with depending on growth in Global Transport is any reliance on increased production in the USA. O'bama's Administration will most likely block any expansion plans already proposed by CQP (Parent Co. of LNG) and any planned terminals by Dominion and other Companies. Why would he do that you ask? It's because he wants Nat Gas to remain relatively cheap and at the same time he hates "Fracking," If fracking is limited, our supplies of Nat Gas will not continue to grow enough to support an Export Industry. It's a damn shame, but I think that's the near term future.
We will need to rely on growth of LNG "for Export" in other developing gas rich regions of the world.
That website reviews Investment Newsletters, cuts through their HYPE to reveal "Secret Teaser Stocks" newsletters use to try to sell you subscriptions. Porter Stansberry right? I receive StockGumshoe's FREE daily e-mail updates that cut through Newsletter #$%$ to (hopefully) reveal the truth. I really like them.
Ironically? perhaps, they have a paid subscription service as well (nothing wrong with that though; they got bills to pay as well).
Snippet from Gumshoe: You know that Porter Stansberry never saw a controversial assertion that he didn't like -- it's those big head-shakers, after all, that "catch people's attention" and make them read or listen to his newsletter ad "presentations" ... so it's no surprise that lots of people have been asking me about his pitch that Obama will be the next Roosevelt, a three or four term president with unprecedented power, all because of one huge economic boom that's about to kick off. Oh, and the boom can make us rich, too, if we buy the "right investments" ... so what are they? You will have to go to their website to read the entire article on LNG, Teekay, etc
Ok, so that confirms it's TGP. However, the thing is I have two different newsletters with diametrically opposed points of view on the energy sector both arguing TGP is a good long term investment.
Perhaps, even more so now that the 2012 Presidential election pretty much wrote the obituary for the coal industry for the next 4 years. Natural gas stocks should do better without the competition from coal.