| KCI COMMUNICATIONS You're receiving this email at finan4@finanmart.com because you subscribe to a KCI e-zine. Never miss an email. To ensure delivery directly to your inbox, please add postoffice@kci-com.com to your address book today. How are YOU going to take advantage The bull market in energy is certainly not over. Dear Investor, The sudden, dramatic correction in the energy patch has sent shockwaves through the industry and prompted some unusual volatility in energy-related stocks and publicly traded partnerships (PTPs). Since the beginning of July, crude oil prices have fallen nearly $30 per barrel and natural gas prices are off $4 per million British thermal units (MMBtu). This has created the perfect entry point for investors who want to get in and a cheap way to build existing investments — provided you go with the same ones my readers are. In this report, I'm going to do something I’ve never done before. I’m going to show you exactly how to capitalize on this environment and fill your portfolio with double-digit returns. The exact thing I do for my readers! Because of the media, it's easy to forget that oil prices are still up $50 per barrel over the past year and $25 since the beginning of 2008. And that natural gas prices have soared 40 percent over the past year and no one is talking about how they have been unfairly beaten down — until now. Pundits often lump energy commodities together when discussing prices, but natural gas and oil aren't interchangeable commodities. Oil is primarily used as a transportation fuel, but rarely as a fuel for power plants. And prices are susceptible to economic gyrations. Natural gas is primarily used for heating, electricity and as a chemical feedstock. The state of the economy isn't a particularly important factor in demand, but weather and correlating gas inventories are absolutely paramount. Gas demand is also far more stable than demand for crude oil and is growing at a faster pace. In the UK, the US and across Continental Europe, utilities are increasingly canceling new coal plants due to new carbon dioxide regulations. Meanwhile, nuclear plants take too many years to site and build. These utilities are instead turning to natural gas plants--typically taking only 18 months to build--as the only viable alternative in the near term, solidifying the long-term picture. This year, however, the situation looks far more bullish. A cooler-than-average winter in 2007-08 drove higher-than-normal heating demand. Inventories collapsed earlier this year and are still under five-year average levels. Meanwhile, gas prices remain far higher in the EU and Asia than in the US; LNG imports have collapsed this year, further tightening supplies. This isn't likely to get any better this winter-earlier last week Norway's Statoil discovered a leak in a subsea pipeline connecting a key gas field in the North Sea to European markets. That pipeline will now be closed until sometime in early 2009; as a result, winter natural gas prices in Europe jumped to a new all-time record. Natural gas in Europe now trades at more than twice the price of US gas. This inventory normalization is behind the jump in gas prices since late 2007. We suspect gas prices will average above $10 to $11 per MMBtu in the latter half of the year, nearly double the average price in 2006 and 2007. At those prices, the result is gas producers will be extremely profitable. One of the fortunate PTPs that should benefit from this earnings windfall is Linn Energy (NSDQ: LINE). This oil and gas producer, listed in 2006, has a solid core business and a proven acquisition track record. Focusing on low-risk, mature reserves, it further develops them to increase production for as long as possible. This partnership operates in two different regions--California, and the Mid-Continent, where it has a total of nearly 2 trillion cubic feet of proven reserves. It uses the futures markets to lock in attractive prices for its oil and gas production, thus making cash flows even more predictable and reduces volatility in distribution payments, currently yielding a hefty 12.35%. In this report, I'll reveal 2 more of our recommended PTPs involved in the oil and natural gas production business--each yielding double-digit dividends--in a minute. But first you need to know that the exciting yields that energy businesses provide are just a fraction of the lucrative opportunities in publicly traded partnerships. Over the past 10 years, publicly traded partnerships (often called MLPs) have crushed the S&P 500 by 360% to 55%. That's 16% versus 4.5% on an annualized basis. (Partnerships also beat the S&P Energy Index by 65 percentage points. So there's something going on here more than just a bull market in energy assets.) The only reason this asset class doesn't get more publicity is because they're not institutional products. They're designed for the little guy, not the big boys. With their low level of institutional ownership, Wall Street's hordes of salesmen have little reason to pay attention. And almost zero Wall Street research is done on them, for the very same reason-which is why Neil George and I started an advisory solely dedicated to partnerships. Unlike so many top-heavy corporations that pay their executives millions while the stock price goes nowhere, PTPs pay their profits directly to you. They have to, by law. Only they pay much bigger dividends, because they pay no tax. What's more, this tax-free business model is so irresistible that it's now attracting players in a variety of qualifying industries, including real estate, fertilizer, orchards, timber, toll-roads, even cemeteries! All these companies are sidestepping the IRS and passing their hefty and rising earnings straight to the investor. And "hefty" is a classic understatement for many of these outfits... Terra Nitrogen, an Iowa-based seed and fertilizer outfit, has shot up an astounding $35 to every $1 invested in just the past five years. Pope Resources, which owns and manages vast spreads of timberland in the Pacific Northwest that has doubled its dividend, has more than quintupled in the past five years... and has shot up 734% since its 1989 launch. Investors in New England Realty Partners have racked up a gain of 1,377% in the past 10 years. This tiny ($104 million market cap) regional landlord has a remarkably consistent track record of steadily rising cash distributions. For head-turning long-term returns, it's hard to beat Alliance Bernstein Holdings. Since its start almost 20 years ago, this investment-management partnership has compiled a 10,867% total return. That's a 100-to-1 jackpot. With so many massive gains emanating from a single asset class-and a small one at that-it should be obvious why we're starting The Partnership. Statistically speaking, this tiny investment niche has had 10 times its share of success stories. And this asset class is still in its infancy... or adolescence at most. In fact some of the most exciting movement for partnerships will be coming over the next few months with the energy trade booming. And we are telling our readers to load up on these PTPs involved in the energy business:
None is particularly exposed to near-term gyrations in commodity prices. All run aggressive commodity price hedging programs that lock in prices for most of their production three to five years out. Any decline in commodity prices would be offset by gains in their hedging positions. And, for each of our recommended PTP producers, production costs are far lower than current commodity prices. At current prices, these PTPs can still economically undertake projects designed to increase their production. And I can’t wait to send you the names of these partnerships along with my recent newsletter. So please join my readership. What You'll Get When You Join Us The Partnership is a web-based newsletter that you can access the instant we release each monthly issue. You can then easily print out the issue from your computer if you wish. You'll never have to wait for your issue by snail mail because as soon as we dot the last "i", we'll email you a link that takes you straight to the complete issue on our subscribers-only website. In addition to your monthly issues, we will send you occasional "PTP Alerts" with unusually important breaking news. But please understand this is not a trading service. We'll never frantically email you and tell you to buy XYZ by noon. Thankfully, there's no need for anything that hectic. Partnership investing is the most relaxing way to invest this side of T-bills. You can hold most of these steady growers for years. The only "fast action" you'll have is when we find a decent partnership that has stumbled on bad news, and we jump in to bag a quick turnaround profit. Here's a peek at what you can expect in every issue of The Partnership:
Look at What Else You Get... To welcome you as a new subscriber, and to get off to a running start, you'll also receive a package of special reports we've prepared especially for new partnership investors. Here's a peek at the three you get with a one-year subscription: 2. The Deal Makers: Four Fast-Growing Business Partnerships 3. Making Partner: Building the Ideal Portfolio of Master Limited Partnerships Come on board for two years and you get these two additional reports: 5. Supercool: 5 Ways to Play Natural Gas Charter Subscribers Save $101 A year of The Partnership, which entitles you to 12 months of advice, complete with buy and sell signals, plus as-needed updates-emailed to you within minutes of our investing decisions-costs $500. But to mark the launch of our new project, we're offering charter subscriptions for just $399 (with a 100% money-back guarantee, of course). On a $100,000 portfolio, you can easily pocket $10,000 in distributions alone per year in these partnerships-and plenty more if you want to be aggressive. Is making six times the yield of the average stock-while reducing your risk-worth $1.09 a day? Only you can answer that. But our guarantee makes the membership fee irrelevant. If The Partnership isn't right for you, we'll send you every penny of your payment back. No fine print and no time limit. Take a whole year to decide. If you have any questions once you're on board, feel free to call or write. Neil or I will get back to you personally. In fact, if The Partnership isn't everything you expect, I want you to ask for your money back. That's what the guarantee is there for. But I'm not too worried about cancellations. I think that once you grow accustomed to that flood of checks in your mailbox, you'll want to subscribe forever. A Comprehensive Service for Committed Income Investors The Partnership isn't for everyone. You will be part of an elite investment alliance-not a mass-circulation service. We want to make sure our service does what it's supposed to for you: take the guesswork out of choosing a high-growth, high-yield partnership without any hidden liabilities that could trip up a safety-first investor. There are now 133 partnerships on the NYSE, NASDAQ, and American Stock Exchange. There are about 30 more on foreign exchanges. If you jump blindly into this group, you're likely to run into a few nasty surprises. The Partnership gives you a handful of the healthiest. Why roll the dice when you don't have to? One parting thought: After peddling virtually every product on Wall Street, Neil and I know how rare it is to find an investment that treats you like an equal instead of a nuisance. And I'm convinced that you won't find any more customer-friendly investment than Master Limited Partnerships. When those fat distribution checks come rolling in, you'll recoup your initial investment before you know it. At that point, every check is pure gravy. And any capital gain down the road is icing on the cake. When you consider the stock market has historically returned 9 percent a year, beating that right out of the gate in distributions alone is nothing to sneeze at. Sincerely, Elliott Gue P.S. Go ahead and try The Partnership FREE for a year! That's right-sign up now and take the next 12 monthly issues-plus the special reports-while you decide if the service is right for you. If it's not, no problem. I'll return your entire payment-100%-and all the special reports you receive will be yours to keep. ACTIVATE YOUR SUBSCRIPTION NOW You're receiving this email at finan4@finanmart.com because you subscribe to a KCI e-zine. Never miss an email. To ensure delivery directly to your inbox, please add postoffice@kci-com.com to your address book today. Change e-mail preferences here | Contact Us Copyright 2008 KCI Communications, Inc. 7600A Leesburg Pike, Suite 300 Falls Church, VA 22043 | ||
How Are YOU Going to Take Advantage of the Energy Market Correction?
