Brian Hicks - Angel Publishing

The Best Time To Invest in Oil

Dear Wealth Daily reader:

Last Friday, this headline ran across the newswire…

The Great Oil Bubble Has Burst

It was published by the British fish wrap The Telegraph.

You can read the entire article here: http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/08/08/do0801.xml

But before you do that, I want you to read the first sentence of the last paragraph of the piece:

"But for the time being, a return to a relatively "normal" oil price in the $60 to $80 range would take the sting out of the current inflationary surge..."

The last time the price of oil was in the $80-range was in October 2007.

It's interesting that all of a sudden $80 a barrel is "normal." I say this because I just read a bunch of articles regarding the price of oil that were published last September-October. Take a look…

"Crude oil closed above $80 a barrel for the first time today, breaking a longstanding psychological barrier just days after oil producers tried to bring prices down by promising to increase output." NY Times, Sept. 13, 2007

"Oil prices at $80 a barrel should be a source of happiness to crude oil producing countries. But the OPEC is not happy.

Abdalla el-Badri, Opec secretary general, said in its first response to the current record prices that oil prices were high and would not last, because they are not supported by oil market fundamentals." - Financial Times, September 13

"To listen to Big Oil executives, there's no reason why a barrel of crude costs $80.

'No one has to wait at the gas pumps of the world. There is no physical problem,' Jeroen van der Veer, head of Royal Dutch Shell, recently told reporters in Calgary. '[There's] a lot of psychology in the price.

Van der Veer's comments echoed those of Exxon Chief Executive Rex Tillerson, who said earlier this month that he "cannot explain why we have $70 oil today. We are not having trouble finding oil. There is something else going on that I don't get."

For over a decade, $20 a barrel oil was considered the price of a healthy and normal oil market. It was akin to 120-over-80 blood pressure.

Today, that price level is in constant flux. Nobody really knows what the healthy-normal price of oil is. But according to everybody who’s proclaimed the oil crisis is over, $80 is now the new $20.

But we think the true value of oil is much higher than today’s $114 a barrel price.

In fact, we’re telling everybody it's time to buy on the dip and invest in oil.

Here’s a great analysis of the current oil situation by Barry Ritholtz who writes the Big Picture blog:

Back in July, I noted that we had exited many energy positions, and would like to see Oil pull back to $105-110 to re-enter them.

This was a tactical, not secular, repositioning.

Why not secular? Well, for a few reasons. Commodity rallies tend to run decades, not years. And the rise of China and India means huge new demands on global energy reserves are going to keep prices elevated far above the old days of $30 oil.

But the biggest reason is this simple chart, via ITF Interim Report on Crude Oil:

Sources: Federal Reserve, IAE, ITF

Note that these aren't projections, but are actually based upon data.

You don't have to be a technician to look at that chart and recognize something new is going on. Back in 2003, global GDP began pulling away from Oil production. Note that Oil broke out over $32 shortly thereafter, and never looked back. In the annual BusinessWeek forecasts (2004), I was one of a handful of strategists who picked energy as my top sector.

It’s also pretty clear that all of the hullaboo on offshore drilling is just so much political nonsense. Yes, we should be drilling. No, it won’t make much of a difference in prices. Here's the usually circumspect John Berry, explaining why:

"It's absurd to argue that ending the moratorium on drilling off parts of the U.S. coasts would quickly bring down the high price of gasoline.

This chimera is being touted by President George W. Bush and other Republican politicians, including the party's presumptive presidential nominee, Senator John McCain of Arizona, to deflect blame for what it's costing for a fill-up.

To get around the fact that it would be a decade or more before any oil would be likely to flow, a few partisan analysts have said that the cost of gasoline would fall right away. They argue that the prospect of additional oil supply in the future would lead oil companies to produce more oil immediately because they would expect prices for crude to be lower later on.

Well, wouldn't that depend on whether a producer had the capacity to pump more oil today, and whether it thought lifting the moratorium would add a significant amount of oil to future supply relative to future demand?

There are good reasons to question whether another 1 million or 2 million barrels of crude a day would make much difference in prices when world consumption is running at 85 million barrels a day.

About a fourth of all U.S. oil production is already coming from offshore wells, primarily in the central and western portions of the Gulf of Mexico that aren't covered by the moratorium."

Such silliness.

We should be doing more of everything... investing in alternative energy, nukes, conservation, tax credits, solar, etc. Focusing on this one issue is simply to the exclusion of all else is childish ignorance. In this country, we keep refusing to make the difficult decisions. Everything requires a quick and painless fix. (We better wise up fast).

Hence, the pullback in Oil may be viewed as a short-term opportunity to invest and prosper.

Amen to that.

Brian Hicks

P.S. Many of you are already enjoying the profit taking from the oil boom in the domestic Bakken formation. And if you're not, it's time to get in. The energy sector is heating up again, as are the stock plays in the $20 Trillion Report. Learn how to get your piece of the Bakken profits at these still-low levels in our new Bakken North Dakota-Montana research report.

The Gingrich & Boone Pickens Energy Plans

Dear Wealth Daily reader:

In the past 2 weeks, we’ve been inundated with two specific energy proposals to kick America’s foreign oil addiction.

One has come from Newt Gingrich’s American Solutions advocacy group. You may have seen the commercial for the petition. The energy campaign’s motto is “Drill Here. Drill Now. Pay Less.”

Newt’s plan calls for drilling basically everywhere American oil companies can, domestically. There’s a heavy emphasis placed on the oil shale in the Rocky Mountains.

For more specifics on this proposal, go here: http://www.americansolutions.com/

The other energy plan comes from Texas oil billionaire T. Boone Pickens. Simply called the Pickens Plan, Boone calls for a massive construction boom in wind turbines, concentrated solar farms, and a conversion to natural gas.

You can see Boone’s plan here: http://www.pickensplan.com/

Now, I’ve been asked a hundred times which of these energy plans I think will work. The answer is both.

However, I should tell you that Newt’s Drill Here Drill Now energy plan is a drop in the bucket… and wouldn’t even come remotely close to ending our dependence on foreign oil.

“But Brian, doesn’t Rocky Mountain shale contain nearly 3 trillion barrels of oil?”

Nobody really knows.

But even if it did, it wouldn’t matter.

Why?

Because like my colleague Chris Nelder is so fond of reminding people, “it’s not the size of the tank, it’s the size of the tap that matters.”

I mean, you can get water out of a brick. But it’s not necessarily the best method to get water.

It’s the same with oil.

Oil production is about flow rates.

For decades we’ve been consuming oil that literally gushed out of the ground with very little effort.

Today that easy-to-get-oil is gone. And it’s gone forever.

With 1 trillion barrels of the easy oil already consumed, the world is going after what’s left… the harder-to-get oil. And that’s the problem with Newt’s plan.

If the geology constraints are such that you can only pump 50,000 barrels per day out of a 10 billion barrel recoverable oil formation, you’ll got over 500 years of life from that well.

But considering that the US imports 15 million barrels of oil per day, you have to find some super giant oil foods where the flow rates are ridiculous. That’s why domestic oil production will replace only a fraction of our imports.

In fact, let’s put that into perspective. To produce ALL the oil we consume here in America (21 million barrels per day), we need to find the equivalent of 2.2 Saudi Arabias. And it has to be the kind of oil that gushes out of the ground!

That’s the difference here.

Getting oil from shale is going to be an arduous task.

Having said that, we need to do everything to buy ourselves time. We need to drill domestically onshore and offshore. We need to build wind and solar farms. We need to build nuclear power plants… geothermal plants… everything.

And more importantly, we need innovative entrepreneurs to come up with the next primary and, yes, cheap energy source. Because mark my words, whoever comes up with the next cheap primary energy source is going to have the most robust economy in the world.

Cheap energy lubricates the economy. Period.

The bull market in energy is just beginning.

Brian Hicks

P.S. By the way, Chris Nelder and I have come up with our own energy plan. You can view it here: http://www.angelnexus.com/o/web/6774

The Real ID Act

We've feared it for years. There's no hiding from it any more. Be prepared. Big Brother just got a lot nosier.

By 2011, you and I will be required to carry Real ID cards.

Love or hate the idea... it's coming.

Yep, soon Federal law will require that most people carry these cards if they want to fly on airlines, or even enter a federal building— strict new security measures to protect us from the next 9/11.

Reports show the White House is in the process of bringing in consultants to help figure out how to set up the Real ID distribution process, as well as how to implement new security measures.

Sure, the Real ID Act won't fully kick in until 2011, but the White House needs to jump on the process "that will take a while and cost a lot." It's a process that could soon splash the iDcentrix name across national newspapers.

The Real ID Act... and Why IDCX.OB Should be Bought Immediately

iDcentrix, Inc. (IDCX.OB) is our favorite micro-cap of the year.

Here's why.

Causing quite a Congressional uproar, the Real ID Act, passed in 2005, is about to become the first real move toward what we've feared for years - The National ID Card.

At some point in the near future it will be hard to leave home without it...

That's why the Real ID Act was so controversial in the first place.

Without one of these new IDs, a trip to Greece, for example, sometime in the future will likely be nearly impossible. As will be driving, visiting a federal government building and collecting Social Security checks, among other things.

But regardless of all of the obvious pitfalls that such a card may bring us, the Real ID Act is absolutely on its way, albeit incrementally.

In fact, in January the Department of Homeland Security issued its final ruling to establish minimum standards for state-issued driver's licenses and identification cards in accordance with the Real ID Act of 2005.

These regulations set the standards for states to meet the requirements of the Real ID Act, including:

information and security features that must be incorporated into each card;
proof of identity and U.S. citizenship or legal status of an applicant;
verification of the source documents provided by an applicant; and
security standards for the offices that issue licenses and identification cards.

Meanwhile, the first deadline for compliance with Real ID is December 31, 2009.

By then, states must upgrade the security of their license systems to include a check for lawful status of all applicants and to ensure that illegal aliens cannot obtain Real ID licenses.

And a mere two years later, in 2011, "a Federal agency may not accept, for any official purpose, a driver's license or identification card issued by a state to any person unless the state is meeting the requirements" specified in the Real ID Act.

So like it or not, these IDs will one day be as commonplace as all of the other cards that we have been required to have in the past.

That's Where iDcentrix Comes in

The company makes Real ID Act-compliant cards that offer a deeper level of security than any other card on the market.

That, of course, is critical. After all, what good are any of these measures if the cards themselves can be compromised?

The iDcentrix advantage is in their patented technology, which was five years in the making.

It actually embeds ID data and security features in the card, not on it.

And their cards combine that technique with counterfeit-proof Swiss banknote paper.

Now what could be more secure than a Swiss banknote?

The result is an ID card that is invulnerable to criminal attack, forgery and counterfeiting.

In fact, these cards are so good that the Swiss National Forensic Laboratory has determined that altering the card is impossible without completely destroying it.

But, of course, it's not just the Real ID Act that makes this company one to watch.

Because, let's face it, since 9/11 the need for secure IDs in and out of government has been growing along with the dual threats of fraud and terrorism.

And that is not just here in the States by any stretch, it's a worldwide phenomenon.

That means that the market for iDcentrix's patented cards will be huge.

But here's the key. iDcentrix is as under-the-radar as it gets.

That means that its early investors stand to earn big profits as efforts such as the Real ID Act and others worldwide continue to gather steam.

In fact, the company only recently began trading and is now selling for under $1.33.

Expecting this company to trade much higher not long after the rest of the market discovers them, we'd recommend buying now. As for the management team, they are as solid and dependable as the cards they produce.

Friends, big brother just got nosier. Real ID is coming. From an investor's perspective, will you be prepared for the Real ID boom?

Good Investing,

Brian Hicks
http://www.wealthdaily.com

Anavex Biotech Stock

Dear Wealth Daily reader:

"Behind every story is a Greek man."

That was Dr. Khan's response when I asked her why she left the prominent biotechnology industry in England to join Anavex Life Sciences in Greece.

Indeed, she was right.

The man behind the Anavex story is Dr. Alexandre Vamvakides. And when it comes to biotechnology research and reputation, he's a giant among his peers.

Dr. Vamvakides has literally spent the last 30 years in research, focusing on finding a cure for diseases of the central nervous system (CNS). He has published over 80 scientific papers in medical journals... and is considered one of the pioneers and foremost experts in the emerging field of sigma receptors.

Let me be very clear about this: All of his experience and expertise is about to explode onto the market at a single moment in history - when his Alzheimer drug - AV 1-41 - goes into Phase I later this year.

You see, Dr. Vamvakides and Anavex are developing the next generation of biotech drugs based on a platform that focuses on sigma receptors.

Sigma receptors are a new class of receptors that have been identified with significant links to various diseases.

I consider the work being done on sigma receptors similar to the work that was done on stem cells 10 to 15 years ago.

This is going to be huge.

There's a massive amount of literature that supports sigma receptors as a potential way to treat... and in some cases prevent... of a whole range of diseases, including Alzheimer and epilepsy to breast and lung cancer.

In other words, we could be looking at a silver bullet in biotechnology.

Now, I'm not going to get into the science behind sigma receptors and the drugs being developed. It's just too technical. (To get the full details on the preclinical results, call Anavex's Investor Relations department at 1-866-505-2895 and request to receive an IR kit. Plus, I'll be publishing a full report on the company's pipeline in the days to come.)

I just want you to understand that Anavex is emerging as a major player within this field of research.

In a press release last month, Anavex reported...

"...that ANAVEX 7-1037 has demonstrated its ability to significantly delay the growth of cancerous tumors in patient-derived xenografts during advanced pre-clinical studies. It reduced tumor growth by 69% with minimal side effects."

These results put Anavex on the map.

In fact, Dr. Vamvakides and Anavex are starting to attract institutional money managers... and the company will be presenting at some of the most important biotechnology conferences in the world.

And that's one of the reasons why I quickly hopped on a plane and flew to Athens, Greece, last week. Anavex will be presenting at the Rodman & Renshaw Annual Global Healthcare conference in Monaco on May 19. (hyper link to this site: http://www.rodmanandrenshaw.com/conferences?id=18)

Over 1,000 money managers and investors will be in attendance at the May conference. That's a month away. I want to position you with Anavex stock before Wall Street begins taking out big blocks.

You see, I think Anavex is going to run up like another biotechnology that's almost identical to its situation. It's a company called Medivation, who's pushing its own Alzheimer drug through the clinic, and is now in Phase III.

Medivation started trading on the OTC bulletin board in 2004. It then jumped to the NASDAQ:

After successfully getting its Alzheimer drug Dimebon through pre-clinical and into Phase I and II, Medivation's stock took off. At one point late last year, Medivation's market cap mushroomed to nearly $1 billion, even though it didn't have a drug on the market.

Anavex plans to have its own Alzheimer drug - Anavex 1-41 - in Phase I within the next 6 months.

When AV-1-41 goes into Phase I trials, I fully expect the market to re-rate the company upwards to $10 to $12 a share.

I continue to rate Anavex stock as one of my favorite small cap investments for 2008-2009. And the fact that the stock hasn't sold off - especially during the recent market turmoil - speaks volumes.

I believe we're looking at a huge blockbuster in Anavex Life Sciences (AVXL - OTCBB). Buy it at current levels.

Good investing,

Brian Hicks

P.S. I spent a full week in Athens, and spent 3 days with the researchers at Anavex. I'll have a full report on the company and its pipeline in the coming days. Stay tuned...

Global Real Estate Investments

Publisher's Note:

The Standard & Poor's/Case-Shiller Index is an index that tracks the prices of single-family homes in 10 major metropolitan areas in the U.S.

Today the index reported that home prices in January dropped by its largest margin in 20 years.

You can't read a newspaper or listen to CNBC these days without hearing the constant drone of doom in the housing markets.

However, there's a group of real estate investors that are making a killing.

Lief Simon of Global Real Estate Ventures is not only a long-time friend of mine, he is one of the best international real estate investors I know.

I've asked Lief to tell you where the opportunities are in global real estate.

Good investing,

Brian Hicks

Global Real Estate Investments: Three Ways to Play the Path of Progress Right Now

By Lief Simon

Positioning yourself ahead of the Path of Progress is the surest way I know to capture real estate profits around the world.

Right now, this strategy leads you to three real estate investment opportunities in particular. At least two of them are nowhere on the radar of the average real estate investor...which is part of the reason the potential upsides are big.

When I talk about the "Path of Progress," I'm referring to new or expanded infrastructure...new roads, paved roads, new air routes, new airports, new train service, for example...a new or a growing middle class, the expansion of the number of households, a growing retiree population...

These mega-market events lead to mega-opportunity...if you identify them in time.

"SB-1 Energy Dividend Act."

It allows homeowners to run their meters backwards!

It's profitable - and legal ...and it's making some people quite a bit of extra income. Becoming increasingly popular, it could pay you as much as $17,300 in the next 12 months.

Click here for details .

BOOM IN BUCHAREST

This kind of mega-market movement is playing out, as I write, in Romania, for example, thanks to a half-century of pent-up opportunity and demand.

Romania is a big, strategically located Central European country that makes big sense right now for big, central production. Its port on the Black Sea gives access to the East and the Middle East. As a result, the country is attracting lots of companies looking for a base in Central/Eastern Europe. They recognize Romania's geographic position is a definite advantage.

This foreign investment attention and the accompanying influx of new businesses, along with the fast-building momentum in-country for the free-market way of life, starting from a very low base, are leading to a rapid expansion in both the number of households and the middle class-two big Path of Progress indicators.

In other words, not only are there more people to buy houses, period...but, in addition, Romania's new middle class wants new, bigger, and better places to live. They're no longer interested in living in small apartments carved out of big apartments or houses in Bucharest, for example. They want new-built, spacious, and comfortable.

The current construction boom in the capital will continue for at least another three to five years. No question, this country is dead-bang in the Path of Progress. How can you benefit?

Here's the play: Buy a pre-construction apartment. You could leverage your purchase with staged payments during construction...then either hold on, after your unit is delivered, to enjoy both rental yield and capital appreciation...or, easier, simply flip the place before it's completed. This way you don't even have to come up with payment in full.

More than 70 developments are making pre-construction offers in Bucharest right now. Don't be intimidated. Even this surge in supply won't meet the demand. You could buy into almost any one of these 70 projects and look to double your money at least.

PANAMA'S NEXT BIG THING

More familiar to you than Romania may be Panama. This little country at the hub of the Americas has been enjoying serious boom times. In Panama City, and elsewhere, prices are up three, four, five times and more in the last half-dozen years.

Five years ago, I told investors to buy pre-construction in the capital. That's not the play today. As I write, developers are asking as much as $3,500 a square meter for new construction in Panama City. Don't pay it.

But don't overlook the current opportunity in this country, either.

Panama has legs to carry it onward, market downturns in the U.S. notwithstanding. Right now, you want to be invested in markets that aren't dependent on American buyers. Panama is one of them. Its Canal Expansion Project, launched in 2007, guarantees this country another decade at least of extraordinary growth. Panama's economy grew by more than 8% in 2007, and it's expected to grow by that much again this year, making it the fastest-growing country in the region.

While other countries in this part of the world are feeling the pain of fewer American buyers, in Panama, the party continues, largely unaffected, thanks to the big and growing numbers of Latino buyers, especially, increasingly, from Venezuela and Colombia. Panama is also attracting more attention from across the Atlantic. Buyers with euro and pounds sterling to spend right now see it as the bargain of the decade.

When you look to this country for current opportunities, recognize that the Path of Progress has moved from Panama City...beyond its nearby beaches (also over-priced)...and is fast headed west...to the country's Azuero Peninsula.

This is both a general Path of Progress event (Panama's number-one commodity, its beachfront, is over-priced near Panama City, so the market is moving on)...and a specific one.

For the Panama government is talking about building a new airport in the interior of the country to allow easier access to the country's beach areas beyond the capital. Nothing is guaranteed right now, but, should this new inland international airport be built, transit time to certain of the country's prime beach spots will be reduced by two hours and more.

That's a big deal.

One primo beach spot set to benefit is the Azuero Peninsula. The east coast of this triangle has been on the radar of foreign investors and buyers for the past few years...and prices are on the move. The real play is on the west coast, where you're front-running the infrastructure and can still buy (undeveloped) sandy coast for as little as $10 per square meter.

Values here are beginning to move up and will continue in this direction, building momentum, for the next half-dozen years and beyond. You've still got time, though, to get in early and position yourself for returns of 300% and more.

US Govt '3160 Letters' Unlocking Rapid Oil Profits

"The world is on the verge of an energy crisis."

Signs of that grim statement whispered to me last year are all around us. Oil continues to reach new heights, soaring past $120 a barrel. The price of natural gas and nearly every other energy source are rising out of control.

Yet as the world moves out of the oil age, you will be faced with the greatest investment opportunity of your lifetime.

Find out more on how the US Gov't '3160 Letters' are unlocking Rapid Profits for early investors.

PROFIT FROM ASIAN SUN-SEEKERS

On the little island of Boracay in the Philippines, another mega-market movement is taking place, this one mostly invisible to the average American investor. Boracay, unheard-of in the West, is becoming the "in" sunspot for Asian sun-seekers.

We Americans aren't the only ones who like the beach. Asians, too, head to the sand and the sun when it's time for vacation, and, increasingly, the sun and sand many of them seek is on the island of Boracay.

Resorts, golf courses, and hotels are going up fast. Yes, prices are moving up, too, but it's early days still.

This means two things. First, you can still buy in for as little as $100,000 (for that, a fully furnished resort rental apartment with rental management support).

In addition, the current market timing means rental yields are high...as much as 12% net per year. If you have any experience with rentals, you may be thinking that this sounds too good to be true.

In most markets, you'd be right. I've had experience with rentals in a dozen countries. Typically, you're doing well to net 6% a year or better.

However, in the early stages of a market, you can get better-than-normal rental returns. In this case, in Boracay, right now, you can get double what you might normally expect.

This won't last, of course. A couple of years ago, a similar situation existed in Punta del Este, Uruguay. Fellow investors were able to net 12% a year and better from rentals in that Gold Coast resort town. But no longer. The market has caught up.

Which is to say, real estate prices have risen to the point where rental yields, as a percentage, are more in line with the norm.

The market in Boracay will mature in the same way...but I believe it will be another couple of years, at least, before prices catch up to rents. Meantime, investing in an apartment in a vacation resort on this island positions you for both impressive rental yields and serious capital gains.

Good investing,

Lief

P.S. I've identified 13 property markets worldwide that are poised right now for dramatic growth in 2008, 2009, 2010, and beyond.

I've prepared a free report that describes in detail how to take advantage of these opportunities: http://www.greventures.com/?auth=c973d4a3dbba1ef55d1c6044968fc305

Oil Will Pay for the Iraq War?

Dear Wealth Daily Reader,

Next month my first book, “Profit from the Peak,” will be released to bookstores nationwide.

I’ve been told by my publisher at Wiley that major bookstores across America are buying big blocks of the book, a sign that either there are a lot of insomniacs out there looking for a remedy... or that interest in Peak Oil and its investments is surging.

12,000 copies of "Profit from the Peak" have been pre-ordered. They tell me that they typically see around 2,500 pre-orders for investment books.

There’s no doubt that books about oil and energy are popular these days.

But there is one book in particular that is a must-read (besides mine).

Earlier this week, The American Conservative published a story that had me choking on my morning coffee.

The article revealed the gargantuan amount of energy being used by our armed forces to continue our failed adventure in Iraq.

Robert Bryce, who wrote the story, tells us that after invading one of the most oil-rich countries on earth, the mighty U.S. military is running on empty.

Seriously, I couldn’t make this up if I tried.

Check this out...

How 1 Gallon of Fuel=42 U.S. Tax Dollars

The U.S. is using more than 5,000 tanker trucks to haul JP-8 gas – a blended jet fuel that’s used to run both vehicles and aircraft – into Iraq.

Last year alone, says Bryce, the American forces in Iraq burned through more than 1.1 billion gallons of fuel.

"In November 2006," says Bryce, "a study produced by the U.S. Military Academy estimated that delivering one gallon of fuel to U.S. soldiers in Iraq cost American taxpayers $42 – and that doesn’t include the costs of the fuel itself."

Bottom line: In the war that Paul Wolfowitz and his neocon brethren famously and arrogantly predicted would “pay for itself,” the U.S. is spending $923 million per week on fuel-related logistics.

Read that again--Americans are spending nearly $1 billion PER WEEK to keep our military machine well-fueled in Iraq.

Do that math. That’s $52 billion per year. And if John McCain is willing to stay in Iraq for 100 years (as he said he would), the oil bill to Americans will be, ahem, $5.2 trillion.

Why is this so important, wonders Bryce?

Simple.

"While the U.S. military chases its own fuel tail in Iraq, a country that sits atop 115 billion barrels of oil--about 9.5 percent of the world’s total--the global energy industry is racing forward with new alliances and deals, many of which would have been unthinkable before the invasion."

According to Bryce’s analysis, the global balance of power is shifting dramatically (as it does from time to time) in ways that indicate the declining effectiveness of militarism in controlling global energy trends.

In the Age of Peak Oil, These Are Interesting Developments Indeed

Robert Bryce just released his new book, "Gusher of Lies: The Dangerous Delusions of Energy Independence."

I reiterate that the end of cheap oil represents the greatest investment opportunity of this century.

Best regards,

Brian Hicks

Wind Energy

"You hear that? That's the sound of money. Every second I’m getting paid"

I found that amusing coming from a man whose first name is Cash. I'm serious, his name is Cash.

As we looked up at the 250-ft tower, he continued...

"I love it. When I'm eating breakfast, I'm making money. When I go out to a fine restaurant in Bakersfield, the bill is already covered. Heck, even when I’m asleep, a steady stream of dollars gets deposited into my bank account."

Cash was talking about the eight 1.5MW wind turbines he owns on his wind park, located in the Tehachapi Pass Wind Resource Area, approximately 100 miles northeast of Los Angeles.

The one thing you have to understand about wind parks - just in case you ever decide to visit one - is that the wind blows non-stop.

And the Tehachapi Pass is one of the windiest regions in America.

In fact, average wind speeds approach 20 miles per hour there. That's the daily average. This places the Tehachapi Pass in a wind power class 6 (these classes range from class 1, the lowest, to class 7, the highest).

On the day I visited, the wind was brutal. It was blowing steadily at 48 mph. And it was colder than cold. Jeff Siegel and I weren’t dressed for these elements.

In fact, it was difficult to stand steady.

But I didn't care. I was looking at a "perpetual moneymaking machine." And I knew I was looking at the future energy source of America.

You see, Cash was absolutely right. Every time his turbine blades turned, he was sending energy to the grid owned by Southern California Edison. In return, SoCal Edison paid him for the energy he generated.

Cash isn't the only one cashing-in on the wind energy boom.

Even Boone Pickens Believes in Wind Energy

The wind energy industry has realized three consecutive years of record-setting growth. As a result, wind is attracting some heavy-duty investors. Even legendary Texas oilman Boone Pickens, who made his hundreds of millions in wildcatting for oil, is a believer in wind.

In a New York Times interview published recently, Boone was quoted as saying...

"I have the same feelings about wind as I had about the best oil field I ever found."

He is planning to build the biggest wind farm in the world, a $10 billion behemoth that could power a small city by itself.

Across the U.S., wind farms are on track to generate 48 billion kWh in 2008.

That's enough juice to power 4.5 million homes.

That’s about twice that of all the homes that went black just a couple days ago after a forced shutdown of nuclear reactors in Florida left millions without electricity.

Boone is a genius. He realizes that no matter what the stock market does... even if the subprime mortgage disaster sinks housing further, Americans still need to keep the lights on. Period.

Unfortunately, there's only a few ways to play wind in the public markets. And 99% of the publicly traded wind companies are very small. But that's the appeal. I consider wind a tiny but exceptionally lucrative investment niche in the renewable energy bull market.

In fact, wind is where geothermal and solar energy were 3 years ago:

That's great news for investors who buy into wind right now.

I believe 2008 and 2009 will be a breakthrough period for the wind energy bull market. If you haven't taken a position in wind companies, now is an excellent time to do.

Green Chip Stocks editor Jeff Siegel recently recommend a wind stock that he thinks is an easy double this year.

Good investing,

Brian Hicks

The Stock this Billionaire is Buying Now

Dear Wealth Daily reader:

A lot of people don't know this, but Ian Cooper and I developed an insanely simple, but highly effective trading technique in 2002.

We called it the “Billionaire Boys Club.”

The premise behind the system was simple... invest and trade in the same stocks that billionaires were buying in the open market.

The system worked brilliantly... and we made a lot of money for ourselves and our readers.

But we did have one caveat to the system - we didn’t allow ourselves to buy the same stocks that Warren Buffett either owned or was buying.

I mean, everybody follows Buffett’s every move.

Instead, we decided to focus on other billionaires that didn’t have a huge market following.

One of the billionaires we followed religiously in 2002 and 2003 was media tycoon Sumner Redstone.

Throughout those years Redstone was buying millions of shares of Midway Games and WMS Industries in the open market.

Ian and I checked out the companies... and decided to buy alongside Sumner. It turned out to be one of the best trades we made all year.

Midway Games (MWY) quadrupled in value in 2003 going from $3 a share to $12 a share:

WMS Industries (WMS) went from $12 to $21 inside of six months:

Trading alongside billionaires - the ultimate smart money - is easy money.

And right now, you have a chance to make a fortune following one billionaire who has snapped up millions of shares in a small energy stock. He's acquired a 3 million share stake in a natural gas company that currently trades a market value of about $600 million. So it’s small.

However, this natural gas company has potentially discovered the largest natural gas field in years.

In fact, the New York Times reported that the discovery is so big... "holding back its gas flow is like trying to restrain the Mississippi River."

We think the stock could increase 300 to 400 percent with in the next few months, easily.

We’ll be recommending this stock on Monday, February 18, at exactly 5PM EST.

If you would like to receive this trade, go here: http://www.angelnexus.com/o/web/4127

Good trading,

Brian Hicks

Big Oil Profits

Yesterday my energy mentor and hero was on CNBC’s Fast Money. I’m referring of course to Mr. Matt Simmons, peak oil advocate and author of the Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy.

The Fast Money segment was called “Following Not-So-Big Oil.” The premise of the interview was to get Matt’s opinion on the declining production and declining reserve replacement rates of companies like Chevron and Exxon. You can see the entire interview here: http://www.cnbc.com/id/15840232?video=632312855&play=1

During the interview Matt confirmed what I’ve been telling you for the past 6 months… that Big Oil is now in a race to liquidate itself so that it can reap massive profits and protect its dwindling reserve base. In other words, instead of spending its record profits exploring for more oil… Big Oil is now spending its billions buying back its own stock.

In essence, Exxon and the like are reducing the amount of public stock in the open market.

This alarming development was featured in a Bloomberg report back in October 2007.

According to the report:

"There's a steady liquidation of the world oil industry... Exxon is buying back about $30 billion of its shares each year. If that continues, Exxon will have repurchased all its stock by about 2024."

In other words, Exxon will no longer exist as a public company. It may no longer exist as a company at all! Other Big Oil companies are doing the same.

BP (British Petroleum) repurchased 663 million shares in 2007. In 2006, the company bought back a whopping 1.3 billion of its own stock. The most ever.

So far in the first month of 2008, BP has repurchased 35 million of its shares… for a total of $394 million.

To give you an idea of how aggressive BP has been "retiring" its stock, take a look at how much the company has purchased this decade:

Since 2000, BP has repurchased 60% of all its shares!

Rice University took a look at the situation. And in November 2007 they published their findings. Here’s what they said:

“The handwriting is on the wall. The oil majors used 56% of their cash flow on share repurchases… they are not replacing reserves. It’s as if they’re slowing liquidating their long-term asset base.”

Last week, Shell’s CEO, Jeroen Van der Veer sent an email to all of his employees.

His message was a clear warning that there is trouble ahead regarding the price of oil. In it, he states, "...the world's current predicament limits our maneuvering room. We are experiencing a step-change in the growth rate of energy demand due to population growth and economic development, and Shell estimates that after 2015 supplies of easy-to-access oil and gas will no longer keep up with demand."

He goes further, saying, "...society has no choice but to add other sources of energy - renewables, yes, but also more nuclear power and unconventional fossil fuels such as oil sands."

He’s absolutely correct.

As we walk further into this oil crisis, America will turn more and more to the Canadian oil sands. As a result, capital investment in the sands continues to surge.

Three days ago, Suncor – the 2nd largest oil sands producer – announced an additional $20 billion cap-ex program. The project, known as Voyageur, is designed to lift Suncor's oil output by 200,000 barrels a day to 550,000 b/d in 2012. It is the latest in a flurry of multi-billion dollar investments in the oil sands, encouraged by surging oil prices.

Though we own Suncor in our premium energy portfolio, The $20 Trillion Report, it isn’t our favorite oil sands stock.

Our #1 oil stock is about to revolutionize the entire oil sands sector. They’ve patented a novel oil extraction process that, in addition to being more efficient, reduces greenhouse emissions by up to 50%, something the Alberta government has mandated.

This stock returned investors 224% in 2007 alone.

The stock is also featured in my soon-to-be released book, Profit from the Peak: The End of Oil and the Greatest Investment Event of the Century.

For a limited-time only, you can receive a FREE copy of the book. But you have to reserve a copy now before it’s released to the public. In addition to the book, I have 4 more money-making reports to give you. All have to do with the raging bull market in oil and natural gas.

Get a Free copy of Profit from the Peak.

Or go to: http://www.angelnexus.com/o/web/3875

Good investing,

Brian Hicks
Publisher, Energy and Capital

Health Care Stocks

Dear Wealth Daily reader:

This past November 30^th I recommended that you take a position in a small, but quickly emerging healthcare stock: Anavex Life Sciences (AVXL - OTCBB).

In the article titled Searching for the Next Amgen, I told you to pick some up while it was still trading for less than $4 a share, because I believed that it was headed to $6 in the first quarter of ’08.

I want you to see a chart of Anavex compared to the Dow.

If you bought some when I recommended it in November, you’re up roughly 35%.

Today, the stock trades for about $5.20 a share. Now that the market is stabilizing, I feel comfortable putting my full weight and support behind it.

Let me leave no doubt – I consider Anavex to be one of the best microcap plays in the market today.

When the Dow tanked last week… tiny Anavex never dropped below $4.70… and it quickly recovered any losses.

Right now the stock is quietly being accumulated by savvy investors in the know. I recommend you take a new position or add to what you have while the small healthcare stock remains under the radar.

Like I said, it currently trades for $5.20. Its record high is $5.36. Once it breaks above that level, I think we’re headed to $7 to $8 by the Spring.

Now, I’d like to give you a press release that Anavex released last week. Unfortunately, the company released it on Tuesday, January 22… the day the Dow dropped 591 points.

So the market wasn’t in the mood to hear any good news, especially from a tiny drug company.

Still, the lack of any meaningful selling in Anavex during last week’s correction speaks volumes. It means that the current shareholder base is strong… and more importantly, they anticipate much higher prices for the stock.

Here’s the company’s January 22^nd press release:

ANAVEX outlines corporate milestones, drug advancement plans for 2008. http://www.anavex.com/press_release_2008_01_22.html

Like I’ve enumerated many times before, healthcare will be another huge bull market in this century, especially with 80 million baby boomers ready to retire.

In addition to that, healthcare investments – especially drug stocks – are recession proof. Regardless of the economy, everybody continues to take medication. Anavex fits the bill perfectly.

Get Defensive with Healthcare

Dear Wealth Daily reader:

"When the women stop buying, it's game over."

That's what Quantum Confidential editor Steve Christ told me today over IM.

I told Steve, "If you're a retailer, yes. But husbands all across America are getting their credit card statements from last month, and they're sighing in relief."

Steve was referring to today's retail sales report that was released for the month of December. According to the report:

Source: CNNMoney.com

"Particularly hard hit were apparel sellers including Limited Brands and Ann Taylor Stores as well as department stores including Macy's Inc.

"Limited posted an 8% drop in same-store sales, worse than the 4% Wall Street expected. Based on weak sales, it said it is likely that fourth-quarter earnings will fall toward the low-to-midpoint of its previously announced projections."

I knew Steve was joking when he said that, but I also knew there was some truth behind his comment.

I told him, "Look, when my wife stops buying shoes and handbags, it's a blessing to my bank account. However, if I stop buying beer . . . then you know the economy is in Armageddon."

On the bright side, Wal-Mart, the world's largest retailer and most-hated corporation among the wealthy, posted a 2.4% increase in same-store sales, exceeding the 1.8% forecast. But the discounter said that its fourth-quarter results will be "pressured by higher interest expense" compared to last year.

Costco reported a 7% increase in same-store sales, better than the 5.6% estimate.

Every economically sensitive stock has gotten hammered. Even the retail discounters have gotten crushed. Take a look at Family Dollar and Dollar Tree Stores:

These stocks are near or at five-year lows. I smell some bottom-fishing coming. Maybe.

Remember, stocks are a leading indicator of the economy, not a lagging indicator. I believe we're close to a massive buying opportunity.

I mean, Citigroup is trading at a 5-yr low. Is it time to step in? I don’t know. Only time will tell. But I’m not though.

For now, we'll remain defensive with energy, select technology names, gold and mining, and healthcare.

Last month I recommended Anavex Life Sciences (AVXL: OTCBB) to you around $4 a share. Anavex has remained rock solid during this recent selloff. When the market turns around and bounces, this biotech stock is going to shoot to the moon. Make sure you're holding this stock at cheap levels, which means $5.50 to $6 a share.

Down and Out in New York City

Tuesday I took a trip to New York City to be a guest on Fox's Happy Hour show hosted by the lovely Rebecca Gomez. Yes, she's even more beautiful in person.

While on the show, I made a prediction that by the second-quarter of this year we would see at least two homebuilders go under. I believe those homebuilders will be Beazer and Hovnanian.

Take a look at their stock charts:

The problem with a homebuilder like Hovnanian is that it's eating through its cash like Rosie O'Donnell at a $4.95 all-you-can-eat buffet. HOV has $12 million in the bank . . . and $2.3 BILLION in debt. How it survives is anybody's guess.

But one person's misery is another's gain. Ian Cooper was shorting homebuilders and related stocks all throughout 2006 and 2007.

He made 214% shorting New Century and 108% on Countrywide Financial on just two put option trades.

Very soon we'll be launching Ian Cooper's Options Trading Pit, which will give you the opportunity to play the market at both ends . . . and everything in between.

Until then, I urge you to sign up for Ian's Small Cap Trading Pit: http://www.angelnexus.com/o/web/3580

Gold Investing 2008

GOLD has just traded over $900 an ounce. And you need to hedge your bets NOW!

JANUARY 1980
Gold prices set an all-time high of $850/ounce as the dollar fell, oil prices soared, and global peace was strained to exhaustion because of political and religious differences worldwide.

JANUARY 11, 2008
Gold prices crush the 1980 high and hit $900.10 an ounce for the exact same reasons.

Except this time there's a huge difference: All of the underlying fundamentals that skyrocketed gold in 1980 are magnified by at least a thousand this time...

This time the dollar is in an irreversible death-spiral, crude oil prices have topped +$100/barrel, and the stability of societies around the world are becoming more and more fragile by the day as political and religious factions furiously battle.

It's as simple as this: There are absolutely no fundamentals out there right now that point to lower gold prices.

So, buy physical gold? Yes, absolutely!

But you're also going to want a little more risk in your portfolio. More risk, more reward. And the only place to get what you're looking for (mind-blowing investment gains) is in the speculative stock market.

Put it like this: Are you looking for 10:1...20:1...or even 50:1 returns? Of course you are.

The so-called and mostly self-proclaimed "experts" on the boob-tube will tell you that the modern markets are far too efficient to consistently generate those kinds of profits.

Now that may be true for the DOW and NASDAQ companies that the Wall Street guys are trying to ring out. But when it comes to the lightly-covered junior mining sector, it's a completely different story.

You see, it's not uncommon for junior mining companies to experience huge gains (tenfold or more) very quickly as news of a discovery leaks out.

On top of that, the exploding bull market in gold and precious metals not only focuses more attention on the sector, but also causes even more money to be spent on exploration. And the payback on a new find increases dramatically.

It works like this:

Say, for example, Company ABC finds a one million-ounce deposit of gold. And an engineering study suggests this deposit could be mined over ten years at a cost of $250 an ounce, including capital. And let's assume gold sells for only $350 an ounce.

That deposit is worth roughly $100 million.

But if gold shot to $400 an ounce (a 15% increase), the value of the same gold deposit launches to $150 million (a 50% gain). That's over 300% leverage to the gold price (50/15).

Right now, with today's gold price of near $900 an ounce, that deposit is worth $650 million! At $1,000 an ounce it's worth $750 million and at $1,500 an ounce it's worth $1.25 billion.

And if you think gold at $1,500 an ounce is out of the question, think again!

The 1980 record for gold prices of $850 is only the nominal high. When you factor in inflation, you find that gold's value was actually as high as $2,200 an ounce. And I think it's going even higher than that this time for the reasons I've previously mentioned.

For Company ABC and it's shareholders this means heart-pounding investment returns.

I'm talking about gains so big that most people could never even afford to pay the taxes on them right now.

The problem is this: The gold and metals equity markets have grown extremely large over the past few years and have become difficult for untrained investors to successfully navigate and profit.

And to enjoy the gains that have already made countless fortunes for early investors you have to know what to buy and when to buy it.

Investment services such as Greg McCoach's Mining Speculator have been a godsend guiding investors through the gold bull market storm.

And for the past six years, while other investors played stale dusty old blue chips, Greg has been showing home-run investments to people just like you.

In fact, of the 35 stocks that are currently in the Mining Speculator portfolio, only ten are down. And of the 25 stocks that are up, twelve are up over 500% a piece... eight of which have gain more than 1,000%!

Try squeezing that kind of return out of Wall Street. Good luck.

In fact, over the past year the DOW, NASDAQ, and S&P 500 have returned a paltry average of just 2%. You could do better with a standard bank account!

Now, the brokers from the big investment houses might call Greg's stocks too "high-risk/high reward" for general investing. But there's a reason why he's sitting on these massive gains--and luck has a lot less to do with it than you might think.

See, I can tell you first-hand from working with Greg day-in and day-out how he is able to consistently spank the pants off the market averages and deliver multiple triple-digit gains to his subscribers: By spending countless hours tirelessly going over and over every aspect of a particular company before selecting it for recommendation. And when he thinks he's covered every base, he double checks everything. It's a true trial by fire.

I've seen other services out there boasting a fraction of Greg's track record and charging $2,500 or $5,000 a year. Heck, I've even seen them charging $10,000. And their track records are mediocre at best.

The annual membership fee for Mining Speculator is normally $199.

But here's what I'm going to do for you.

In the next 72 hours, you can get Mining Speculator at 50% off.

The price?

Only $99.

A great deal, especially since it's backed with his 100% RISK-FREE guarantee.

Now if you think you might be interested in joining Greg's Mining Speculator, simply click here now.

Listen, as I've already mentioned there are simply no strong fundamental reasons for gold prices to go anywhere but higher. And Greg's expertise in the junior gold and metal equity markets has already proven extremely profitable for Mining Speculator time and time again. Do yourself a favor. Join Mining Speculator today.

Good Investing,

Brian Hicks
Publisher, Mining Speculator

http://www.angelnexus.com/o/op/3592

Oil Hits Record-High $100 a Barrel

Here's how it read from the AP wire:

Oil Futures Rise to $100 a Barrel
Wednesday January 2, 1:02 pm ET
Crude Futures Hit Record $100 a Barrel for 1st Time on Supply Concerns
NEW YORK (AP) - Oil prices soared to $100 a barrel Wednesday for the first time ever, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will continue to outstrip supplies.

That's right, oil reached $100 a barrel today, fulfilling what we've been predicting for the past five years.

Technically, I think oil is headed to $113 a barrel. Take a look at this chart and I'll show you why and how:

You'll notice a small reverse head-and-shoulders pattern that started in October of last year. In this pattern, oil just broke out from the neckline. From the top of the head (in this case about the $85 level) to the neckline (around $99) is roughly 14 points. Add 14 to 99 and we get $113. I think we could reach $113 within the next two to three months.

Our correct $100-a-barrel call also fulfills a prediction that our resident green guru Jeff Siegel made over five years ago... that this century's most significant bull market would be in renewable energy.

Today, on the same day that oil reached $100 a barrel, one of Jeff's solar stocks scored the biggest deal of its life... and made a new record high.

I'm talking about Akeena Solar (AKNS - NASDAQ). Jeff recommended Akeena on September 1, 2006, when it was trading on the bulletin boards for just $3 a share.

The company then moved its stock to the NASDAQ... and hasn't looked back since. Here's the chart:

This morning Akeena announced that it had struck a distribution deal with global solar giant Suntech.

Akeena jumped nearly $4 today to hit a high of $11.99.

Members of Jeff's Alternative Energy Trader who took a position in Akeena when it was an unknown solar stock are now sitting on gains of nearly 300%!

Jeff's success in trading alternative energy plays is second to none. In fact, his winning ratio rate is 84%. In other words, for every ten trades he initiates, 8.4 turn out to be profitable.

I urge you to become a member, especially if you want to make fast and easy money in the exciting renewable and alternative energy market. I'll even throw in a special "New Year's" discount. Order before Saturday, January 5th, and get our $500 New Year's discount.

Good trading,

Brian Hicks

Click here to become a member of the Alternative Energy Trader service: http://www.angelnexus.com/o/web/3472

Oil Prices Over $100 In 2008

Dear Energy & Capital Reader:

In the wake of yesterday’s assassination of Bhutto and the shocking drop in oil inventories, I was rushed into CNBC to talk about the oil markets and to give my price prediction for 2008.

You can watch the interview in its entirety here: http://www.cnbc.com/id/15840232?video=616244251&play=1 .

But even though I looked calm on television, I have a confession to make: I was nervous.

You see, for years I’ve been predicting that this day would come--the day oil hit $100 a barrel.

I think we’re weeks away from hitting that mark. But I also think we could hit $150 a barrel in 2008.

And that’s not the only milestone the oil markets will shatter next year. In 2008, the world will consume oil at a rate of more than 1,000 barrels per second.

According to the International Energy Agency (IEA), global oil demand will average 87.8 million barrels per day next year, up from 85.7 million in 2007. That’s an average consumption rate of 1,016 barrels per second.

If you need a visual of how much oil that is, take a look at our Peak Oil Clock .

Pretty startling, isn’t it?

You bet. I think we’ve hit the point of no return. And it’s about to get worse.

You see, the US is by far the world’s largest oil consumer, burning more than 7.5 billion barrels per year. We import two thirds of the oil we consume.

The world is consuming over 173 billion barrels of oil every two-and-a-half years. At the same time, we find enough new oil to replace 3% of that. So, just to stay even over the next decade, we’re going to have to find a few more Saudi Arabias.

As we saw yesterday, a terrorist attack is enough to send an already tight and nervous oil market higher.

But there is another fundamental force that will push the price of oil a lot higher, even without a catastrophe like the Bhutto assassination.

And that is - there’s no more cheap and abundant oil to be discovered.

Don’t take my word for it. Look at what’s happening within the oil industry.

A couple months ago, the financial news service Bloomberg reported on a crisis in Big Oil that’ll forever change the way you get and use energy.

According to Bloomberg, in as little as 16 years, companies like Exxon and ConocoPhillips may no longer exist.

Here’s a short excerpt from the report:

"There’s a steady liquidation of the world oil industry-- Exxon is buying back about $30 billion of its shares each year. If that continues, Exxon will have repurchased all its stock by about 2024."

In fact, the Big Five (Exxon, Chevron, BP, ConocoPhillips and Royal Dutch Shell) are spending more on stock buybacks than they are on finding new oil.

This raises the question: With oil trading near $100 a barrel and demand soaring, why aren’t these companies investing every penny they have exploring for more oil?

I think you know the answer.

As I said in yesterday’s interview on CNBC, I continue to be heavily invested in the Canadian oil sands for two reasons:

1) The Canadian oil sands will be the only place left on earth that’ll experience significant oil production growth--possibly 400% in the next decade.
2) Canada is protected from geopolitical risk. It’s a stable nation that’s right next door to the US.

In the coming days, we’re going to show you how to play the oil markets, specifically stocks we like in the Canadian oil sands.

I’m also going to tell you about a pricing anomaly currently in the oil markets that could earn you as much as $1,000 in pure profit every time the price of oil goes up $1 per barrel. I’ve worked closely with the market’s best traders—including Ian Cooper—to work out the technicals.

We’re calling it “The Trade of the Century.” And in the next few weeks, we’ll be releasing it to you.

Sincerely,

Brian Hicks

Oil Crash

Trader's Note:

A picture really is worth a thousand words.

A few weeks ago, Ian Cooper recommended shares of global solar company LDK Solar (LDK – NYSE).

He recommended it for $29.50 a share.

Here's what he wrote on November 30:

Keep an eye on LDK Solar (LDK:NYSE). The company just secured an additional 344 tons of polysilicon supply for 2008, and started construction on its plant.

Now, take a look at a chart of LDK as of today:

I have to admit. I've been in this business for 15 years... and that's probably one of the most successful trades I've ever seen.

Think about this for a second. On a day when the Dow was down big... investors in LDK made 20%. In ONE DAY!!!

But Ian has been doing this his entire career. In 2007 alone, his winning percentage rate is 71%. Out of every 10 trades he initiates, 7.1 are winners. And after averaging the winners and losers together, his gain per week is roughly 100%!

So it's no wonder that readers are storming the door signing-up to Ian's Small Cap Trading Pit service. Even though the ranks have swelled, you can still sign up for the year-end price of just $49 a year. But come January 1, the price for Ian's service will go to $99.

To lock in the super-low price, go here: http://www.angelnexus.com/o/web/3330

Now, on to today's Wealth Daily.

A Contrarian's POV Over Oil

I read a rather interesting article today from Conde Nast's Portfolio.com.

The title of the article is:

The Coming Oil Crash

Crude at $100 a barrel makes good headlines but ignores basic economics. Why oil prices are in for a 50 percent drop.

I can appreciate a contrarian point of view regarding the direction of oil. I mean, oil has almost doubled this year in price. When oil was approaching $100 a barrel just a few weeks ago, even I was getting nervous that the markets were setting-up for a fall.

But I think Portfolio.com's article misses the point.

For instance, the author, John Cassidy, argues that...

"...experts who are predicting the worst, based on geology and geopolitics, are missing the crucial role that economic incentives play in determining the price of crude. The tripling of oil prices since the summer of 2003 has unleashed forces that within the next two or three years will bring oil prices tumbling back down to below $50 a barrel. Looking even further ahead, prices could easily fall to $30 a barrel or even lower."

He's absolutely right about one thing:

Historically, higher oil prices have unleashed a tsunami of economic activity as oil companies ramped up exploration and production to make more profits. With more oil supply hitting the market from new exploration and production, prices came down. Sometimes they crashed.

However, this time "seems" different.

Here's what I mean.

Two months ago, the financial news service Bloomberg reported on a crisis in Big Oil that I think will forever change the way America gets and uses energy.

According to Bloomberg, in as short as 16 years, companies like Exxon and ConocoPhillips may no longer exist.

Here's a short excerpt from the report:

"There's a steady liquidation of the world oil industry... Exxon is buying back about $30 billion of its shares each year. If that continues, Exxon will have repurchased all its stock by about 2024."

In fact, the Big 5 (Exxon, Chevron, BP, ConocoPhillips and Royal Dutch Shell) are spending more on stock buybacks than they are on finding new oil.

This begs the question: With oil trading near $100 a barrel and demand soaring, why isn't Big Oil investing every penny they have exploring for more oil?

The answer is: There's no more cheap oil left to be found. And this is producing a supply crisis of epic proportions.

In the coming days I'll have a landmark report ready for you to read. It explains in detail why Big Oil is liquidating itself. Did you know for instance, that since 2000, BP has repurchased 60% of all its outstanding shares. It's planned obsolescence.

It's mind-boggling, when you think about it. And this crisis is about to hit the markets like a nuclear bomb.

However, this mass liquidation is providing investors with an once-in-a-lifetime opportunity to make a lot of money. You see, there's a whole new breed of oil and gas companies ready to replace Exxon and the like. And some are still very young companies that'll experience substantial growth in the years to come.

Stay tuned,

Brian Hicks

PS - As I noted earlier, Ian Cooper's Small Cap Trading Pit service is really raising eyebrows. After averaging the winners and losers together, his gain per week is roughly 100%. You can still sign up for the year-end price of just $49 a year. But come January 1, the price for Ian's service will go to $99. To lock in the super-low price, go here: http://www.angelnexus.com/o/web/3331

After 66 Years, It's Still About Oil

Before I get into today’s E&C, trading guru Ian Cooper wanted to update you on his recent, winning scores.

Ian, take it away...

Energy Legislation

Energy Bill speculation leads to 11-day 34% and 52% Gains

Nothing says “global warming emergency” like two inches of snow. That’s what fell on the nation’s capitol, Wednesday.

Still, despite the ice and snow, a Senate committee passed legislation to combat global warming.

With the Bali climate talks underway, the end of the legislative session approaching, and the Iowa caucus weeks away, energy legislation lives on for another day.

But the bill that’d boost vehicle fuel economy requirements by 40% by 2020, increase ethanol use by 2022, fuel alternative energy, including solar, and force $13 billion in new taxes on big energy companies, may now face resistance from the Senate and a possible presidential veto.

Senate Republicans and the Bush administration are threatening to block the bill if it includes a $21.5 billion tax package and a mandate that utilities get 15% of power from renewable sources.

But bill, or no bill, speculation of its passage helped Small Cap Trading Pit readers realize 34% on half of the Hoku Scientific (HOKU:NASDAQ) recommendation, and a current 52% gain on the second half.

(Note: As of today, the stock is up another $0.50 on news that it entered a finance agreement with Merrill Lynch for up to $185 million for polysilicon plant construction. In addition to the loan and any HOKU cash contribution, Sanyo Electric, Suntech, Global Expertise Wafer Division, and Solarfun Power Holdings agreed to prepay a combined total of about $240 million for future product shipments.)

As I’m sure you can imagine an 11-day gain is excitable.

Geoff, for instance, tells me, “Thanks I now have 150 shares of HOKU for free.... Signed up for the SC Trading Pit on Monday, bought into HOKU @ $7.92/sh on Tuesday,

Thursday AM sold enough shares @ $12.00/sh to recoup my original investment which left me 150 shares of HOKU for free :) Does it get any better this? At the time of this letter that’s a $1700 gain in just 3 days or 150 free shares of a stock that has a great future.”

Francois tells me, “I had bought calls on Hoku on your alert and realized a 146% net gain in a couple of days!”

Ain’t it grand?

Ian L. Cooper
http://www.sctradingpit.com

Same Day, Different Year… Same Fight

A lot of people don’t know this about me, but I have hillbilly blood running through my veins.

It’s true. My grandfather was a country boy from the Smokey Mountains in Tennessee. He grew up in a small town called Rockford.

If you don’t know where Rockford is (and who would?), it’s not too far from the tourist attractions of Pigeon Forge, Dollywood, and Gatlinburg.

Pops was 6’4 and very thin. But even as a teenager, his wiry frame belied his strength. In fact, the story goes that he got his nickname “Buck” (as in a male deer) after a customer at the general store where he worked saw him carry three 75-lb bags of potatoes without straining or ever breaking a sweat.

For the most part, he lived a satisfying and comfortable life of a young country gentlemen.

But that ended on December 7, 1941.

The day after the Japanese attacked Pearl Harbor, my grandfather joined the Army. Naturally, because of his strength, he was chosen to haul and operate the .30 caliber machine gun for his platoon, which was part of the Red Bull Division.

He fought in North Africa, Sicily and then to Anzio, where he was wounded by German artillery. He visited more nations in 3 years than I probably ever will in my lifetime.

Although he never served in the Pacific theatre, the attack on Pearl Harbor resonates with me because it was the official start of America’s involvement in World War II.

The Japanese raid on Pearl Harbor was one of the great defining moments in history. A watershed event for America.

A single carefully-planned and well-executed stroke removed the United States Navy's battleship force as a possible threat to the Japanese Empire's southward expansion.

America, unprepared and now considerably weakened, was abruptly brought into the Second World War as a full combatant.

Eighteen months earlier, President Franklin D. Roosevelt had transferred the United States Fleet to Pearl Harbor as a presumed deterrent to Japanese aggression, as they badly needed oil and other raw materials to continue its imperial ambitions.

Japanese access to oil was gradually hampered as its conquests continued. In July 1941 the Western powers effectively halted trade with Japan. From then on, as the desperate Japanese schemed to seize the oil and mineral-rich East Indies and Southeast Asia, a Pacific war was virtually inevitable.

By late November 1941, with peace negotiations clearly approaching an end, U.S. officials fully expected a Japanese attack into the Indies, Malaya and probably the Philippines.

By December 7, 1941, they’re thinking was validated.

It might be 66 years later, but the world is still fighting over oil. And I’m afraid to say that I see more conflict in the years ahead over black gold.

In memory of the Americans who fought and died in World War II,

Brian Hicks

Searching for the Next Amgen

Dear Wealth Daily reader:

October 15, 2007 might have been just another Monday to you, but for me, it marked the start of one of the greatest bull markets the 21st Century will experience.

You see, on that day, a woman named Kathleen Casey-Kirschling filed to receive her social security retirement benefits.

What's so important about that?

Kathleen was born on January 1, 1946.

She's officially the first baby-boomer to file for social security benefits.

Behind Kathleen is a line of 80 million more like her ready to collect their share of the government promised pie.

But this is more than just a conga-line of soon-to-be senior citizens looking to get paid. No, this event will have a paradigm-shifting effect on the nation... as well as your stock portfolio.

As the baby boomer generation rushes into old age like a colony of army ants, healthcare spending is expected to skyrocket. And all this spending represents a boom for drug and medical device developers and manufacturers.

Now, many of you know me as the guy on CNBC and Bloomberg who's constantly talking about Peak Oil, energy prices and how to make money off of it.

It remains true that energy is one of the greatest investment opportunities available to you. But in my former life as the editor of a letter called the Cutting Edge, I was labeled as "the original biotech bug." That's because I consider healthcare - specifically medical technology and biotechnology - to be the greatest investment opportunity of the century.

Take Intuitive Surgical (ISRG - NASDAQ), for example. This company makes the robotic da Vinci surgical systems for use in urologic, cardiothoracic, gynecologic, and general surgeries.

Sales at ISRG have gone from $26 million in 2000 to over $524 million today.

And its stock? Well, take a look for yourself...

The stock is up 5,400% since the start of 2003!

And with baby boomers getting surgeries in record numbers, medical device companies like Intuitive Surgical are going to continue to do quite well.

But it won't just be companies that make surgical lasers and robots that'll profit from this trend. Drug companies stand to make a fortune as baby boomers get older and need more healthcare.

And that's why I'm so bullish on biotechs.

Take a look at some of the returns posted by biotech stocks:

Amgen...............+59,000%
Gilead Sciences....+3,500%
Biogen IDEC........+2,329%
Celgene..............+9,030%
IDEXX Labs.........+3,300%

I'm telling you... drugs are recession proof. They have no exposure to subprime and housing concerns. No matter what happens in the economy, people still buy medication. Period.

And that's why I'm writing to you today.

Like I said before, I think energy is one of the best investments around. So much so, I have an investment advisory dedicated soley to the sector, The $20 Trillion Report.

But I also have another investment advisory dedicated to the super-growth sectors of biotechnology and medical technology. That's called Quantum Confidential.

And we recently dipped our toe into a biotech stock we consider a blockbuster.

Buy Biotechs

For the past several months, I've scoured the entire biotech industry looking for the next Amgen or the next Genentech.

Here's what I've discovered: Anavex (AVXL - OTCBB).

The company has been trading on the bulletin boards since January 25, and if it is able to execute its business plan, even a small investment in this stock is going to be an absolute home run.

But it won't only be the investors that benefit from this one, because their business is in discovering and developing novel treatments for cancer and neurological diseases.

In fact, seven of their drug discoveries are currently working their way through the approval process right now after very promising early trials.

Anavex is a small company and a speculative play.

But it's our feeling that Anavex--over time--will end up on the right side of the ledger in a big way.

That's because Anavex's pipeline utilizes a fairly new and proprietary class of drugs that is very different from anything else on the market today.

Now, of course, it's all very technical and in the issues that follow we'll go into it in much more detail.

The short story, however, is this: The company's proprietary Sigmaceptor Technology Platform represents an area that has yet to be exploited by the big pharmaceutical companies.

That's true even though numerous scientific publications have exposed the enormous and versatile therapeutic benefits that this family of receptors represents. Those studies suggest that the novelty, efficacy and optimal safety profile of this new class of drugs has the potential to make a major market impact in the years to come.

So how big exactly is this market?

Well, given what this series of drugs will treat it's huge. It includes:

    • Alzheimer's Disease
    • Epilepsy
    • Depression
    • Colorectal Cancer
    • Prostate Cancer
    • Breast Cancer
    • Lung Cancer

In short, all of big ones. In fact, if the company is successful with all of its current trials it projects that it will eventually earn some $5.6 billion a year.

That means, using the conservative measure of 3.5x sales for pharmaceutical companies, Anavex would be rewarded with a $19.6 billion market cap.

In other words, we could be looking at a 10-bagger easily. Anavex is trading just shy of $4 a share. And I already got my Quantum Confidential members into the stock.

I have a lot more analysis on Anavex and biotechnology in my weekly service Quantum Confidential. If you're interested in these types of opportunities, I urge you to give QC a try.

Good investing,

Brian Hicks

Big Oil Companies

Editor's Note:This article was originally published in Wealth Daily last Friday. We published it in Wealth Daily first because WD was the first letter we launched... back in July 2004. WD was also the letter where we began telling the market about a crisis we saw brewing on the horizon: Peak Oil.

However, what happened last week is far too important to publish in just one of our letters. Because of the dire nature the world finds itself over declining "cheap" oil reserves, we at Angel Publishing have an obligation to present our thesis to every reader we have.

In addition, your publisher has been making the rounds on Fox, CNBC, and Bloomberg, preaching the gospel of Peak Oil.

In fact, last week, I was on television 3 different times, 2 of which pertained to Peak Oil. I haven't shown these interviews to the Energy and Capital family yet. But now you can view them at your convenience:

Bloomberg: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aI4phE3U3CPc

Fox Business: http://www.wealthdaily.com/videos/brian-hicks-fox-oil

But before you do that, please take a moment to read "Of Saints and Sinners: Big Oil Begins Its Confession."

Dear Energy and Capital Reader:

Last week was an epiphany for the market, validation for us at Energy and Capital, and a confessional for Big Oil.

Forgive me, World, for I have sinned . . . it's been 75 years since my last confession.

Okay, here we go.

First into the confessional last week was the International Energy Agency (IEA). As we reported in Wednesday's Wealth Daily on higher oil prices, the usually sanguine IEA sounded unusually negative and alarmist about the recent price spikes in oil:

According to the IEA's World Energy Outlook for 2007:

"An abrupt escalation of oil prices after 2015 as a result of a global supply crisis cannot be ruled out."

" . . . it is very uncertain whether new oil production in the period to 2015 will be enough to compensate for the natural falloff in output from existing oil fields and keep pace with the projected increase in demand."

"The consequences of unfettered growth in world energy demand are alarming."

Whoa.

I want you to think about something. Oil prices are already approaching $100 a barrel. If the IEA is warning us about an "an abrupt escalation of oil prices," what exactly does that mean?!

Could it mean $250 a barrel . . . $300 a barrel . . . $480 a barrel?

Yes.

Right now, with oil trading for $95 a barrel, we're paying the equivalent of 15 cents a cup.

There's 667 cups in every barrel of oil. So $95 divided by 667 = $0.15.

No matter how you spin it or slice it, oil is still insanely cheap. I know that sounds absurd, but it's true.

So will oil selling for $0.15 a cup, the price of oil could (will) go way up . . . to levels unimaginable.

OK, next into the confessional is Tony Hayward, CEO of British Petroleum, BP plc (NYSE:BP).

Forgive me, Shareholders, for we've cooked the reserve numbers.

Here's what Tony confessed yesterday:

"Every geopolitical event causes a spike in the price [in oil], but these spikes only happen because the underlying market is itself tight. For the medium term, the era of cheap energy is behind us."

For penance, I want you to read Lies, Damn Lies and Statistics: The Manipulation of Public Opinion in America. Read it three times.

Let's move onto the next sinner.

Forgive me, Shareholders, for we told you everything was okay, when in fact we knew the world was heading into the abyss.

From the CEO of ConocoPhillips (NYSE:COP), Jim Mulva...

"Oil and gas production fell at all of the largest publicly traded oil companies in the third quarter, as aging oil fields, declining access and soaring costs for drilling services took their toll on output.

"I don't think we're going to see the supply go over 100 million barrels a day. Where is it all going to come from?" --November 8, 2007

Good question, Jim.

For your honesty, your company's stock will sell off 23%.

Last, but not least, is George Bush.

Here's an exchange he had with a journalist two days ago:

Question: "Mr. President, with oil approaching $100 a barrel, are you concerned that your hard words for Iran on its nuclear program are helping drive up oil prices, which can end up hurting the U.S. economy?"

Bush: "No. I believe oil prices are going up because the demand for oil outstrips the supply for oil. Oil is going up because developing countries still use a lot of oil. Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling. That's why the price of oil is going up." --November 7, 2007

Penance?

How about a 31% approval rating?

Okay, now for some saints.

Before you read on, I want to disclose for the record that we weren't the first to talk about peak oil. Not even close. For that you have to go all the way back to 1956 when geologist M. King Hubbert predicted that US oil production would peak in the early 1970s.

However, we believe were one of the first to see the silver lining in Peak Oil: Namely that renewable and alternative energy would finally have its day in the sun. It's the reason we created 3 investment services dedicated to it: Green Chips Stocks, Alternative Energy Speculator and Alternative Energy Trader.

It's also the reason we launched The $20 Trillion Report.

A lot of people ask me about the name, The $20 Trillion Report. What does it mean?

Well, last year, the IEA in its World Energy Outlook Report for 2006 estimated that the world needs to invest $20 trillion over the next 25 years to meet surging, global energy demand.

If this is true (and count us among the believers), then it represents one of the greatest investment opportunities of the 21st Century. So there you go.

Okay, here's a collection of quotes from Wealth Daily and Energy & Capital over the last three years:

"The fact is that we're at a tipping point. The world's oil supply has been flat while demand is growing up to 3% annually.

"Will we see a barrel of oil cost $100?

"That's a possibility. As I said before, the next year is going to test the theory of peak oil."
--Keith Kohl, August 7, 2007

" . . . heck you can kiss $45 a barrel goodbye . . . maybe even $50! In fact, we're probably facing a price spike between $80 to $100 a barrel within the next 24 months."
--Brian Hicks, January 18, 2006

"Our resident energy expert, Mike Schaefer, believes that oil prices will continue their rise . . . heading to at least $80 near term . . . then to $105 a barrel in the next three years."
--Brian Hicks, February 7, 2006

" . . . I think these estimates are a bit on the conservative side, and we should see $80 oil this year, no problem."
--Chris Nelder, January 18, 2007

"Today, we're calling for the price of oil to reach over $100 within the next twelve months."
--Brian Hicks, October 15, 2007

"As I've said before, if there is an open confrontation between the U.S. and Iran, we'll be lucky if oil prices ever drop below $100 per barrel again."
--Keith Kohl, February 26, 2007

"When oil spirals up to and beyond $100 per barrel as a result of declining production, a domino effect begins. Oil is energy. Energy prices skyrocket. Everything else follows."
--Phantom Trader, February 24, 2005

"IEA predictions point to a 53 percent surge in global energy needs over the next 25 years and oil prices running in excess of $100 a barrel by 2030.

"I suspect we'll see it much sooner that!

"The fact is that oil prices are going to skyrocket. I'm talking way over $100 a barrel."
--Keith Kohl, February 26, 2007

"I think we'll see oil over $100 per barrel before 2009."
--Keith Kohl, July 10, 2007

"The price of oil could get as high as $185 a barrel with oil hitting $80 a barrel within the next two years."
--Brian Hicks, March 3, 2005

" . . . within the next three to five years, Saudi oil production is going to collapse by as much as 30% to 40%.

"Clearly, this would push oil well over $100."
--Mike Schaefer, January 16, 2007

"The long-term fundamentals, on the other hand, are still in place for a continuing energy bull market that will eventually push oil prices to well over $100 a barrel."
--Luke Burgess, October 10, 2006

As usual, keep reading Energy and Capital. We'll give it to you straight... the good, the bad, and the ugly.

Profit, don't panic,

Brian Hicks