Energy Stocks - Energy and Capital

Nuclear Reactor Design Breakthrough

Some serious questions are starting to be asked as the nation prepares to build its first nuclear plant in decades.

The answer to these questions, as you'll soon learn, will be worth a fortune to on-point investors.

It's like this...

Of the 104 nuclear reactors in the United States, no two are the same. In fact a recent AP report said “experts blame for causing construction and regulatory delays and leading to bigger bills for power customers.”

And now that a nuclear rebirth is upon us, industry executives want to make sure they're not repeating past mistakes.

Baking nuclear cookies

The key, according to nuclear thought leaders, is reactor pre-approval.

The idea is to have the government preapprove several reactor designs, and then let companies choose from the list.

Knowing which reactors are on the list will be a key tool in earning easy nuclear profits once new projects are approved.

To some extent, we're already seeing this play out...

Thanks to an $8 billion loan guarantee from Obama, Southern Company (NYSE: SO) is about to build the country's first new nuclear plant since before my dad graduated high school. And instead of custom-building the reactor, the developer is going to use one of five designs under review by the Nuclear Regulator Commission.

Southern has chosen Westinghouse Electric Co.'s AP1000 reactor, but it could've also chosen:

GE (NYSE: GE) / Hitachi's (NYSE: HIT) ABWR or ESBWR;
Areva's (PARIS: CEI) EPR; or
Mitsubishi Heavy Industries' US-APWR

This new approach is helping to make nuclear energy cheaper. Instead of paying hundreds of millions of dollars to design each plant, that money can be spent just once.

And the cost savings don't end there...

New plants, for the most part, will be prefabricated.

Instead of assembling the plant piece-by-piece onsite, the AP1000 would be delivered in 300 preassembled sections — allowing for better, quicker, and cheaper assembly.

It's the same technique Ford applied to revolutionize how cars were made. And it must work, because it's pretty widely adopted.

Next-next generation

Going long GE, Areva, Hitachi, and Toshiba (the parent company of Westinghouse) is probably a good nuclear strategy.

We already know that their reactors are on the short list for this new pre-approval process.

But there's one more reactor design that may make the cut... It's called the APR-1400, and it's being built by the Koreans.

Featuring built-in shields against missile attacks and elaborate safeguards against earthquake damage, I'm dubbing this design the next-next generation nuclear reactor.

It was good enough to beat out all the competitors mentioned above in a recent bidding process in the United Arab Emirates.

The UAE didn't go with Areva, GE, or Westinghouse. For the reasons I just mentioned, it awarded a $20 billion contract to the Koreans.

It just so happens, I've discovered a small company that's trying to import these reactors to the United States. It's a microcap right now, trading for less than $0.75. But it won't stay that way once it solidifies this deal with the Koreans...

The profit opportunity here is so unique and urgent that I've put together a full video report on what I've found.

Today is the first day we've released it, so there's still time to learn about this potential 100-times-your money play before the video starts making rounds on the Web.

Call it like you see it,

Nick

Energy Stock Technical Analysis

Editor's Note: Keep this report handy — it contains only a few of many trading techniques that could help make you a very successful trader. Some of this story may sound familiar, as I've covered these trading techniques in the pages of Wealth Daily... But today I want to reiterate them to demonstrate how they can also be used with energy stocks.

——————————

About a week ago, we touched on using MACD and DMI to spot trend reversals in energy stocks. And while using these two indicators have been successful, no system has 100% success...

As one reader named Harry pointed out (with regards to natural gas article and our use of MACD and DMI):

Great article! I can see how these indicators worked great on the fall of the Dow and the rise of the natural gas charts. Both the MACD and the DMI indicators coincided at the same time. But how would you have played the Dow in early June when the MACD (12,26) crossed the MACD (9) but the DMI+ did not confirm thereby missing a 500 to 700 point DOW bounce. And then in late June the DMI+ just touched the DMI- when the DOW plunged again to 9800. I always can see, after the fact, how these indicators work great until you run across them and they miss a big move.

And that’s true — using MACD and DMI alone would have missed the leg up and leg down on the Dow.

But it’s for that reason that we always have a back-up plan, which we’ll touch on today.

You can buy the whole seat, but you'll only need the edge...

Let me start by saying this: There was a way to catch both major moves on the Dow.

First, with the 500 to 700 point bounce (from about 9,800 to 10,600), Williams % Range (W%R) dipped to around -100 — again. Every time the lower negative range of W%R was hit, the Dow popped — sometimes for less time than expected, as seen in early January 2010.

This is why having a system (including more than just MACD and DMI) is essential.

As for the plunge to 9,800, we got a doji crossing the upper Bollinger Band. Whenever we get a crossover of the Bollinger Band, lower or upper — with a candlestick and an oversold (or overbought) read on W%R — we got our Buy signal.

Now that I’ve confused you, let me explain...

It's easier than it sounds

The beauty of this system is that it can be used in any market — even in recessions.

Let's use Tiffany & Company (NYSE: TIF) as an example.

On June 22, 2009, we said:

Thoughts of an improving economy are quickly fading again, despite bullish reports that a recession is ending thanks to the World Bank, which just cut its 2009 global growth forecast. It believes the world economy will shrink 2.9% and is warning that the global recession has deepened.

More than likely, we'll have another sideways trading market this week, which is forcing us to return to technical trading set ups, like the one we found at Tiffany's. Thematic and momentum trading in this market these days is non-existent. In this sideways trending market, you'll have better luck trading Bollinger Band bounces.

Here's that chart of Tiffany's at the time:

Notice the long-legged doji (more on dojis in just a moment) at the bottom of the late June 2009 sell-off... That was our turnaround signal.

It's the same candlestick and Bollinger Band set up that's marked the bottoms in early March and early May.

We believed we could see at least $28 near term if this holds up. We also have an oversold read on W%R. And just as expected, the stock ramped to $28 — handing us quick gains.

Profiting from technical developments has never been easier

My favorite indicators involve the use of Bollinger Bands, W%R, the news, and candlesticks.

Using just these four criteria, we can call for tops and bottoms on indices, as well as individual stocks.

For those of you that aren't familiar with the terms (doji, Bollinger Band and W%R), here's a quick tutorial:

Dojis can appear at times of market indecision and have called key reversals

W%R (Williams % Range) is the ultimate momentum indicator that signals oversold and overbought conditions with great results.

As for Bollinger Bands (plotted at standard deviation levels above and below moving averages), stock prices tend to stay within the upper and lower bands. So, when the prices (in this case with the Dow) move above the upper Bollinger Band, are coupled with a bearish candlestick read (gravestone doji, for example), and an extreme overbought W%R read is present, we expect a reversal at the top.

Okay, but what's a doji?

The profit stars — more commonly known as dojis — are commanding reversal signals. These are formed when the candlestick opens and closes at the same level, implying indecision in the stock price.

Depending on the location and length of the shadows, dojis can be categorized into four subcategories:

1. Doji: This candlestick looks like a cross, inverted cross, or plus sign. At the top of a trend, it can indicate that a reversal is near.

2. Long-legged doji: Long-legged doji formations occur when the stock opens at certain levels, trades in a wide trading range intra-day, and closes at the same level that it opened. These become better predictors when preceded by small candlesticks. Long-legged doji formations can imply a change in trend.

3. Dragonfly doji: The bearish version of the dragonfly doji can usually be found at the market top or during an uptrend. This candlestick tells us the bulls may be losing their way and casts doubt on the market's ability to continue north. Confirmation is essential. You can confirm with a gap down or a lower close on the following day.

4. Gravestone doji: Gravestones can indicate top reversals; these dojis look like gravestones and can signal the death of a stock.

The Bollinger Bands

Bollinger Bands allow users to compare volatility and relative price levels over a period of time, and consist of three bands:

A simple moving average (SMA) in the middle

An upper band (SMA plus 2 standard deviations)

A lower band (SMA minus 2 standard deviations)

Standard deviation — a statistical term that provides a good indication of volatility — ensures that the bands will react to price movements and reflect periods of high and low volatility. Sharp price increases (or decreases) will lead to a widening of the bands.

For our purposes, let's make this a bit simpler. When we use the Bollinger Bands, the closer the market prices move to the upper Bollinger Band, the more the stock market is considered overbought. The closer the prices move to the lower Bollinger Band, the more the stock market is considered oversold. We're not going to get into the scientific structures and Bollinger band calculations with each trade.

We'll be here until New Year's 2012 doing that.

The Williams Percentage Range (W%R)

The third component of the trade is to find an overvalued W%R read, or a chart where the W%R has peaked. According to the W%R, values of 80% to 100% indicate an oversold condition; values of 0% to 20% are overbought.

(Interesting to note: W%R has the ability to anticipate reversals. The indicator will oftentimes peak and turn down days before the stock peaks and turns down. It does the opposite with upside.)

And now that I’ve confused you even further, let’s look at another example

Take a look at this chart of Exxon Mobil (XOM), where everything lined up perfectly:

First, notice MACD and DMI. When they agreed with crossovers, we saw major moves on the underlying stock (most of the time). Second, notice that when MACD and DMI agreed, we also got an overbought read on W%R, which also confirmed big moves (most of the time).

Unfortunately, MACD and DMI agreement alone missed the move from $59 to $64.

But notice that every time the lower Bollinger Band was hit, the stock bounced with an oversold read on W%R. Sometimes, though, as seen in the early May 2010 move below the lower Bollinger Band, the bounce back is less than expected.

We got a candlestick above the upper Bollinger Band in mid-June 2010, with an overbought read on W%R. That would have triggered a buy, which resulted in an impressive sell off from $64 to $56. At $56, we got another turnaround signal with a series of candlesticks crossing the lower Bollinger Band coupled with an oversold read on W%R. That called the move from $56 to $61.

The bottom line

While using MACD and DMI alone won’t always call tops and bottoms when in agreement, having a back-up system like this one is a must.

It may sound confusing, but it’s really not. As with most things, using these indicators just takes practice.

Let’s look at one more example with Brigham Exploration (BEXP), a personal Bakken region favorite:

Most of the time here, when MACD and DMI agreed, we got a big move; and most of the time, when W%R peaked or hit bottom, we got a nice move as well.

But take a look at the Bollinger Bands and candlestick crossovers... Every time the candles touched or moved outside the lower and upper Bollinger Bands, we got respectable moves.

What’s nice about this system is that even if one part fails, another one can be strengthened.

Because, let’s face it, no two stocks are the same.

I hope I’ve helped with these explanations. If you have any questions, please leave them below. I’ll be happy to get back to you with an answer.

As with all systems, this too can always be updated to be better. Thus said, while we want to educate you on these indicators, we also want your feedback... Are you seeing something that we’re missing? We want to make the system better. Feel free to leave your comments below.

Here’s to your continued trading success.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

The Samurai's Secret that can Make You 2682%

700 years ago, the first true Samurai blade was born after a few grains of this metal was added. Today, that metal is indispensable to modern industry, and yet, we're running short.

Find out why the Chinese are now hoarding every ounce they can get their hands on... And how one company may have found the solution to a global crisis.

LED Stocks Lighting Up: CREE

Cree is the buying opportunity of a lifetime.

I said the same about Interoil (IOC) years ago... and watched it spike from $20 to $80.

I also said it about Cree years ago... and watched the stock spike from $20 to $80.

But on a recent pullback sub-$60, Cree not only became the “buying opportunity of a lifetime” for the second time; it became an absolute steal — thanks in part to Home Depot.

It seems the fourth largest retailer in America just added LED bulbs to the shelves, allowing them to encourage “curious” shoppers to check them out.

But to really understand the explosive potential of LED technology and Cree, you have to go back to 2007, when Cree traded at a scant $20 a share...

Back in 2007, President Bush inked an 822-page energy measure that included a future ban on 100-watt incandescent bulbs by 2012. This energy measure intended to make way for bulbs that would use 25% to 30% less energy, shave an estimated $18 billion off electric bills, and cut consumer electricity usage by 60%.

As we said on the original Buy alert:

Even American Technology Corporation CEO Richard Prati agreed at the time, saying LED technology would grow "astronomically" in coming years. He even believed LED technology would proliferate like Internet companies did in the 1990s, and that LED could save consumers up to 90% on energy bills.

And Prati was right... just as we were.

I also said Cree would soon rocket from $20 lows to more than $80 — handing Pure Asset Trader readers at that time close to 300% in a couple years.

I'm writing you today to tell you the opportunity to profit is still there.

You see, others may not be convinced of growth, taking the stock back under $60... but we are.

In fact we're out with another Buy rating on the stock — with an $80 near-term target.

So why was the stock taken down, post-earnings? Because the outlook for the September 2010 quarter disappointed on weakness in the LED-TV back-lighting market.

But with general lighting sales (75% of total Cree sales) expected to explode in the double digits, Cree remains a solid growth story.

LEDs use much less electricity than incandescent bulbs, saving money in the long run not on both bulbs and utility bills. LEDs, according to Cree, use 10% to 15% of the power of an incandescent, and about half the power of a fluorescent bulb.

That translates into 50,000 hours of LED lighting — or 50 times longer than an incandescent light bulb, and five times longer than a fluorescent bulb.

Imagine how much money you'd save on power bills and bulbs with that kind of lighting efficiency...

How to Get the Last Flu Shot You'll Ever Need...

Hate the lines, the sickness, and the painful jabs? Consider that a thing of the past.

We've recently stumbled upon one under-the-radar biotech firm that's about to create the last flu vaccine we'll ever need.

It's no pipe dream -- they've already had success in early test trials...

And once these guys breakthrough their Phase III trials, we could see them bringing early investors returns of up to 1000%.

Click here to find out more.

The bottom line

Cree is a leader that needs to be in your portfolio. Gross margins are 17% to 22% better than the competition.

While Cree ran up more than 110% this past year, it's still cheap with a growth rate of 22%.

Even Wunderlich Securities agrees, launching coverage of Cree with a Buy rating and an $85 price target in June 2010:

“The world of lighting is finally on the verge of being completely and utterly replaced by solid-state lights and Cree is leading the industry to make this happen,” they said. “With today’s focus on energy efficiency and the dramatic reduction in demand that can be achieved with conservation alone, using solid-state light emitting diode based light is considered by many to be the single most rational response a consumer can make. But replacing light bulbs with LEDs is only the first order response. The second is the replacement of all light fixtures, which opens up a whole new market.”

Wunderlich reiterated its Buy rating for Cree again this week... Piper Jaffray recently reiterated its Overweight rating and $88 price target.

This is the stock to own long term. Buy it. Own it. And hold it... until $100.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

P.S. Not just for Home Depot shoppers, LEDs are now being used to replace bulbs by major retailers and institutions: McDonald's, Wal-Mart, and the Department of Defense are signing contracts with LED companies to retrofit stores, offices, and naval ships...

And as you read this, one tiny engineering firm is signing contracts for the retrofitting for these industry giants — adding to the reason behind this company's 89% gains for this year alone. Read about how you can still get in on the LED boom — before this tiny company becomes a household name — in this brand-new report.

Natural Gas Prices

I'll make this short.

Here’s what no one else will tell you with regards to natural gas: Buy it — or miss the historical September run.

You see, it doesn’t matter what the bears say. It’s time to buy natural gas while no one’s looking.

Just as I called the $4 bottom on natural gas on May 19, I’m calling for natural gas to rally once again…

“You’ve heard it all before: Supply is outpacing demand… Our ability to horizontally drill for shale gas has made the supply picture seem unlimited... the short-term outlook is bleak,” I said back in May.

“But those are all fine examples of herd-mentality thinking. Contrarians, like us, though, are buying hand over fist.”

And we were right. Natural gas would spike well above $5 in coming weeks.

But, as expected, the bears are coming out again as natural gas pulls back. And as a result, they might miss out on the buying opportunity of a lifetime.

This may be because they don’t want to watch the charts:

Notice that every September — even in the steep 2008 sell-off — natural gas has spiked big.

And the reason for this annual spike is simple: Summer is typically the worst time for natural gas consumption, setting up the perfect trade for natural gas stocks around the month of September as consumption turns up.

Last summer, for example, natural gas suffered. But once September rolled around, natural gas roared from $2.50 to more than $5 by January 2010.

And it will do the same thing this year.

In fact I’m buying as much natural gas as I can right now in Pure Asset Trader… and I advise you to do the same.

But how do you know when exactly to pull the trigger?

One way is to watch for MACD (moving average convergence divergence) and DMI (directional movement indicator) to crossover and agree. When they do, it's time to pull the trigger.

Let’s start with the Dow, as an example...

Take a look at the MACD and DMI on this chart of the Dow.

Notice in this chart the noticeable drop from 11,200. As soon as the Dow began to show signs of cracking at the top, DMI- (red line) crossed above DMI+ (blue line). At the same time — and this is important — MACD (12, 26), the blue line, crossed under MACD (9).

When the two agreed, we had confirmation of a big move on the way, and the market collapsed. Used alone, these two indicators — when in agreement — are powerful tools.

Here’s how we’ve used them to find natural gas stocks.

Knowing that natural gas stocks historically pop in September, we can also use MACD and DMI to determine our exact entry price. Let’s use PetroQuest (PQ) as an example here.

Notice in the chart that MACD was already displaying a bullish signal (MACD blue line was above MACD red line). We just needed DMI+ (blue line) to cross above DMI- (red line) and we had bullish confirmation for upside.

Once we got that in late August/early September in 2009, we bought and watched the stock pop from $4 lows to more than $8 in less than two months.

A 100% gain in no time at all…

It can be that easy.

In the next few weeks, we'll be issuing a brand-new report that details more quick-gain investment opportunities... So keep an eye out on your inbox.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

More than 12 times your money by 2012

The analyst who’s shown you an 86.6% “win” ratio on energy plays of as much as 225%, 373%, and 452% reveals the NEXT big North American oil winner...

1,239% gains by 2012 await those who click here now and get in on this high-tech $4-a-share driller before word gets out to the mainstream money media.

Transocean Stock (RIG:NYSE)

I married an attorney. I know damn well to review everything in a contract... everything.

I don't care if it's 200 pages long. My wife is on me like white on rice to review everything - well, before she reviews it a second time to see what I missed. (Ain't marriage grand?)

So when I heard that there was a broad indemnity in Transocean's agreement with BP, I went searching.

Sure, I knew BP countered Transocean, saying that Transocean would not be indemnified if it was found to be grossly negligent. But the contractual language used in Article 25.1 says different.

Thanks to a little-known California law, this wind energy stock is about to become

One of the most sought after wind plays on the planet.

Get in now, and ride it for a quick 112% gain.

Click here

Here's what it says word for word:

Except to the extent any such obligation is specifically limited to certain causes elsewhere in this contract, the parties intend and agree that the phrase "shall protect, release, defend, indemnify, and hold harmless the indemnified party or parties from and against any and all claims, demands, causes of action, damages, costs, expenses (including reasonable attorneys fees), judgments and awards of any kind or character, without limit and without regard to the cause or causes thereof, including preexisting conditions, whether such conditions be patent or latent, the unseaworthiness of any vessel or vessels (including the drilling unit), breach of representation or warranty, expressed or implied, breach of contract, strict liability, tort, or the negligence of any person or persons, including that of the indemnified party, whether such negligence be sole, joint or concurrent, active, passive or gross or any other theory of legal liability and without regard to whether the claim against the indemnitee is the result of an indemnification agreement with a third party."

Notice the "without limit and without regard to the cause or causes" line. That line is why RIG should be safe.

BP can say it's not obligated to indemnify Transocean. But in the end - and I'm no attorney - BP could have a heck of a time protecting itself from the contractual indemnifications, other than from suits brought on by the families of the 11 that died.

That could mean Transocean is in the clear.

And it looks like Wall Street agrees.

Not only did FBR reiterate its Outperform rating with a $70 price target, noting:

We continue to believe that Transocean is oversold, as we estimate the company’s ultimate liability will be far lower than the $6 billion currently priced into the stock. While we are reducing our EPS estimates, due to lower deepwater day rate forecasts, we reiterate our rating and price target since we believe investors will gain increased confidence that the shares are pricing in too much liability risk, particularly given Transocean’s seemingly ironclad indemnification clauses.

Buyers sent the stock up more than $10 last week alone (and handed Options Trading Pit readers a fat 180% gain in mere days).

Better yet, the deepwater moratorium could be lifted earlier than November 30, 2010... if oil companies can show improvement in spill containment and response plans. That alone could rocket shares of RIG.

So, what's not to love here?

Buy more Transocean (NYSE:RIG)... and hold long-term. This is an $80 stock masquerading under $60.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

P.S. The catalyst is in place for several blockbuster investing opportunities over the next six months...

Opportunities that could easily rival the 333% and 193% gains we just took in 13 trading days with Arena Pharmaceuticals.

And we'd like to show you where those are.

In just days, not only will we unveil those trading ideas... we'll show you how we racked up these gains in such short periods of time.

BP October 30 put – 141% and 87% gains in just 16 days
BP July 32 call – 68% in 19 days
BP October 35 call – 74% and 69% in just six days
Arena Pharmaceuticals August 5 call – 333% and 193% in 13 days
Delcath June 16 put – 63% in five days
Delcath June 15 call – 43% in 11 days
Delcath June 16 call – 90% in 11 days

Better yet, the average return for all positions in that portfolio stands at 34.2%... even as the overall market lost its mind.

We'll be issuing our latest FREE report... and that look into blockbuster return potential shortly.

338% in 8 Days, 141% in 7 Days, 221% in 9 Days...

Those are actual gains made by readers of Ian Cooper's options trading services.

His strategy has proven to be so popular, that he's giving you a chance to learn all about trading options -- ABSOLUTELY FREE.

He's put together a how-to guide that documents the lucrative and misunderstood world of options, and it can be yours for free just by clicking here.

Nuclear Powered Desalination

I don't normally count watching the Travel Channel as doing research, but I just might start.

Last night I watched as Anthony Bourdain traveled to Dubai, the most luxurious of the United Arab Emirates.

And though the local fare looked incredible, strongly influenced by spicy Indian and Pakistani curries and biryani - an import from the laborers responsible for constructing things like man-made islands and indoor ski resorts - it was their thirst for massive amounts of energy that struck me most.

Several times throughout the show there was reference to this theme; the massive amounts of BTUs it took to make snow in the desert, the copious cubic feet of natural gas burned to desalinate all the water needed to sustain the Shiekh's oasis.

It's why per person the UAE consumes 10,538 kilograms of oil equivalent per year - a third more than the United States' 7,794.

That may soon change. I've found a company that can not only drastically reduce their power consumption, but the associated cost as well.

An 80% Cost Advantage

According to a report out this week, the UAE spends $3.2 billion dollars on water desalination every year.

They have 70 plants that account for 14% of the world's total desalination capacity. And they do it at a cost of $1.94 per cubic meter.

But a breakthrough in both nuclear energy and desalination - controlled by one company - is about to put a major dent in that pricetag.

By pairing portable nuclear reactors with desalination units, this U.S.-based company is selling scalable desalination units that not only provide freshwater, but excess electricity and carbon credits as well.

Take a look at how nuclear powered desalination stacks up against the competition:

The numbers speak for themselves.

That's why the company has already received interest from around the globe, including South America, Europe, Africa and, of course, the Middle East.

The CEO has numerous potential buyers and expects to sell “several units” by the end of the year. At a cost of $3 billion for a 650 MW unit, that means the buyer basically gets either electricity or water for free.

Just the Half of It

As the company gears up to reap billions in revenue from nuclear powered desalination, the stock has gone on a tear. It's up 300% in the past three months, and I still think it's way undervalued.

Here's why...

Desalination is only a third of their strategy.

The company will also individually sell the portable nuclear reactors used in its desalination units.

And perhaps its most ambitious endeavor - the one no one is talking about - is building a nuclear power plant here in the States, for which it already has local approval.

Maybe it's because the company is so small. Maybe it's because it's about to partner with a foreign company to import a reactor. All I know is that this profit story is being egregiously underreported.

And that's why I'm blowing the lid off it with this investor exposé.

Like I said, the stock is up about 300% in the past three months, and my readers are already richer because of it. But it's still trading for less than $1.00.

And with another analyst initiating coverage on it yesterday with a $3.50 price target, I don't know how long it will stay that low.

But I know with a nuclear powered desalination unit 80% cheaper than its competitors, this company is headed much higher.

Call it like you see it,

Nick

Why You Should Listen to Walmart

Whatever you think of their politics, you can't argue that Walmart makes money.

So when they make a business decision, 9 times out of 10 it's wise to listen...

In fact, we've been following one energy investment of theirs that could end up handing you over 19 times your money.

Click here to find out more.

Energy and Metals Outlook for 2010

With a monumental strain on the global financial system that lead to unparalleled governmental intervention and stimulus, we found ourselves knee-deep in a chaotic, directionless market.

We were met with unbridled volatility and strain that may impact the financial markets for at least another year.

And they are likely to be met with even more chaos moving forward.

But despite all of this turmoil, we still found a way to not only beat the market — but outperform it significantly.

As the Dow gained a measly 5% between January 2010 and the beginning of July 2010, Pure Asset Trader readers racked up an average gain of 28%, which included 24 closed winners and just one loser.

That follows the 40 winners and just three losers racked up in 2009.

The Smart Grid: A Smart Investment

It's being called “the biggest investment of the next 50 years” by the CEO of GE.

The likes of Cisco and Bank of America are also on the edge of their seats, anticipating the boom of smart grid technology.

In fact a Bank of America (NYSE: BAC) analyst recently said they expect 80-140 million meters to be installed in the next 10 years — and a total smart grid investment of $215 billion in the next four to five years.

This is going to be huge.

The time to invest in smart grid technology is now — and we have all the details of how you can get in on pure plays in this report.

But we're not here to gloat. We're simply assessing what Pure Asset Trader has done for readers, believing it's best to grade our recommendations, whether the results are flattering or not.

Notable first half 2010 winners include Hudson Resources (147% gain), Brigham Exploration (50%), Canada Lithium (75%), Lithium One (45%), Basic Earth Sciences (55%), and Entree Gold (30%).

But the rest of the year is likely to be even more impressive...

And today, I give you two sectors to invest in now.

Buy more natural gas stocks

We already called the $4 bottom of natural gas — watching it soar above $5 just weeks later. And we're still buying, believing it could run to $8 before all is said and done.

You see, summer is the weakest time of the year for natural gas consumption. This sets up a trade for natural gas stocks — buy in June-August, sell in December-January, when North American heating demand should have natural gas trading at its year highs.

Last summer, natural gas stocks suffered. But like clockwork, September 2009 saw natural gas experience a large seasonal jump in prices.

In fact natural gas prices roughly doubled from $2.50 to $5 by January 2010. This occurred even though the market fundamentals for gas were poor.

This was a good 4-month trading rally. Easy money in the bank, as Wealth Daily Publisher Brian Hicks calls it.

Even President Obama is bullish on natural gas:

The time has come, once and for all, for this nation to fully embrace a clean energy future," Obama said. "That means [making] everything from our homes and businesses to our cars and trucks more energy efficient. It means tapping into our natural gas reserves, and moving ahead with our plan to expand our nation's fleet of nuclear power plants. And it means rolling back billions of dollars in tax breaks to oil companies so we can prioritize investments in clean energy research and development.

Sure, we've all heard that supply is out-pacing demand... That our ability to horizontally drill for shale gas has made the supply picture seem unlimited... And that the short-term outlook is bleak...

But that's herd mentality thinking of fools... Buy natural gas now, and hold.

Load up on rare earth — and this coming IPO

As we've reported in Wealth Daily and Energy and Capital... there's a very real, coming boom in rare earth.

China currently holds 97% of the rare earth market, and is tightening its grip again with plans to cut exports by 72%.

And as we've said in the past, if we don't find more rare earth supply:

Electronics could start disappearing from shelves... Products that depend on these materials would see prices skyrocket, possibly bankrupting the very companies that depend on these sales... Green technologies would suffer... And strategic and defense weaponry (guided missiles, for example) wouldn't be produced as quickly.

The impact on electric batteries and motors would be crippling. Toyota's Prius depends on 2.2 lbs. of neodymium in the hybrid's electric motor and 22-33 lbs. of lanthanum in the car's battery pack.

And there are still plans to double production of the Prius from one million to two million units. But it'll never happen without rare earth supply. The President can call for a million electric cars all he wants, but they all depend on available rare earth supply.

It's the same story with wind power; turbines use massive amounts of rare earth. Right now, all of those rare earth materials are coming from just one place: China.

All of this demand will no doubt send prices for rare earth metals soaring — especially given the idea that global demand for rare earth will increase six percent a year between now and 2014 (from about 124,000 metric tons to about 180,000 metric tons).

Sure, we have possible deposits in Idaho, Wyoming, and Alaska, giving us hope that U.S. rare earth production will get us by.

And we can always get a little help from Greenland, Canada, and Australia...

But the clock is ticking. Developing new mines can take years.

And it's not as if the crisis is a ways off... It's already here.

It's why you want to be in stocks like Hudson Resources (HUD.V), Lynas (LYSCF.PK), and the coming IPO from Molycorp, a company described as the only rare earth minerals producer in the Western Hemisphere.

Its Mountain Pass mine (for which it has plans to reopen and expand) is one of the world's largest rare earth mines outside China.

Other than rare earth and natural gas, the Pure Asset Trader team is also looking to buy silver stocks in coming weeks. We'll keep you updated with our picks and a new report coming out sometime in the next few weeks, so keep an eye on your inbox.

Meantime, make sure you're on board for these and other near-term buying opportunities.

That is... if you're interested in watching us close another year of sizable winners.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

The Decline of the U.S. Dollar

Things are going to start to get real ugly, real fast for the U.S. dollar.

Fortunately, a group of well-informed investors will be able to minimize wealth-damaging effects of the collapsing greenback with a few simple asset reallocations.

Here's what I'm talking about...

The U.S. gov't financial foundation is crumbling

It doesn't seem like a day goes by anymore that I'm not shocked and/or angered by the actions of the United States government. It's as if the powers that be are deliberately ignoring the Constitution and trying to destroy the United States as fast as they possibly can.

This is quickly happening in not just one or two areas, but on many fronts — and all at once.

Let's look at a few of the most recent glaring examples...

The Metals Secret that JPMorgan, Goldman Sachs, and Barclays Don't Want You to Know...

For nearly a decade now... One silver stock has outperformed the Dow Jones by a factor of 122.

It's beaten the NASDAQ by 11,500%. And it's crushed the S&P 500 at a rate of 180 to 1!

In fact this little-known silver mining outfit has handed investors annual gains of 852% over the last nine years.

To learn more about the only silver investment you’ll need to make this year… Click here now.

The financial affairs of the U.S. government are in shambles.

The country has a national public debt of over $13 trillion that's growing by tens of billions everyday. And no one has any clue how this massive burden can or will be dealt with.The U.S. currently spends nearly $4 trillion a year, while only taking in just over $2 trillion in tax revenues. As a result, the White House predicts the budget deficit will reach a record US$1.5 trillion this year.

And the U.S. government is currently borrowing 41 cents of every dollar it spends.

You don't need to have a PhD in economics to know that this is a completely unsustainable model for any organization...

Because the government is spending so much more than it's taking in, U.S. officials have been frantically traveling the globe like beggars in order to borrow money to pay the bills.

The problem with this, of course, is that major buyers of American debt have already had their fill of U.S. dollar-backed financial instruments, and are now cutting back on adding U.S. treasuries to their monetary reserves.

Countries like Russia, China, Saudi Arabia, Iran, and Venezuela are cutting down — or completely eliminating — the U.S. dollar from their reserve holdings.

And this spells big trouble for the U.S. dollar in the near term.

This global dollar dump will push the dollar even farther down in the international currency markets, in just a matter of months.

GAME OVER for the U.S. dollar!

The economic recession, which is currently keeping nearing 10% of Americans without jobs, has decimated tax revenues on all levels of government.

The IRS recently reported that personal income tax collections are down 4.4%, yet we keep spending money like a bunch of drunken sailors on leave in a Singapore port city.

To survive, the U.S. government will try to invent new taxes to impose on anything and everything... But American citizens are already taxed to death — and quickly reaching the point where they will be unwilling to pay anymore.

The conflict between U.S. government and its citizens is such that it could rapidly transition from mild tax protests to violent tax revolt scenarios.

The consequences for decades of abuse of public funds at all levels of government and our system of credit in the United States have finally caught up to us.

All of this paints a very robust picture for the gold and silver markets.

In fact I don't think you could dream up a better scenario for creating massive profits from precious metals and their mining shares...

The perfect scenario for rising gold prices

I wish that I could change what's going on in Washington and New York. But I can't do that myself...

So I am left with figuring out a way to minimize the fallout and profit from the fiscal irresponsibility of the once great U.S. government.

As I like to say, the ultimate form of success at such at time is to not only survive; but to survive well. And the best way to survive well in this environment is to own physical gold and silver and quality junior mining stocks.

The portfolios of my Mining Speculator and Insider Alert investment advisories have many of the kinds of companies that I believe will do phenomenally well as the United States goes through the painful progress of financial reckoning.

In the 10 years that I've been an independent investment analyst, I have never felt better about or more confident in the group of companies I am now covering in both of these advisories.

For those who remain committed and patient with the precious metals and mining shares, the rewards in the near future will bring a major smile to your face.

So keep your head high and stay focused on what we are doing.

The biggest gains yet in precious metals will soon be realized.

Good Investing,

Greg McCoach
Investment Director, Mining Speculator and Insider Alert

P.S. Unfortunately, things are going to get much worse from here, folks... Don't believe for one second the crock of lies served up on a daily basis by the government media complex that touts, "All is well!" or "The recession is over!" It simply ain't so.

To survive well, you'll need to be in gold and silver. And one of the easiest ways to leverage precious metals prices is through the Mining Speculator and Insider Alert portfolios. We're currently closing double- and triple-digit gains left and right. You can learn about one of my most recent scores, right here.

Jr. Mining Outfit Unlocks $550 Billion Deposit

... And surges 207%!

Trading for $1.42, this tiny junior recently unlocked a metals deposit in Minnesota that's worth more than half a trillion dollars!

As official mining operations begin, investors loading up right now could easily triple their money over the coming months...

Click here to find out why.

Tiny Nuclear Company Leads American Resurgence

I told you it would happen again, and it did.

I’ve been pounding the table about this tiny nuclear company for awhile... And for the third time since the beginning of the year, its shares have doubled.

And it’s no accident... Lightning just doesn’t strike in the same place three times.

The reason for this company’s huge run is because they’re one of the most exciting energy companies leading the charge in the current American nuclear renaissance.

They may be small (and undervalued), but they continue to take part in some of the most lucrative deals in the world of alternative energy.

Just this past May, according to MarketWatch, they "signed a deal with CNNC in China that resulted in the creation of Green World Water, which is now the only company selling a large-scale nuclear desalination reactor."

And in June, the same report states they "signed a memorandum of understanding with Hyperion Power Generation… to help license, build and sell their nuclear reactors on a world-wide basis."

But perhaps most exciting — and what I believe will hand investors big money — is the nuclear power plant these guys plan to build.

They’ve already been through countless board meetings, voting procedures, and legislation changes...

Now, they’re in the final phase of a rezoning process in Idaho that will allow them to build their plant with few further obstacles.

According to Forbes:

The zoning process should be finished in the coming months, and once the reactor is completed, it is expected to create thousands of jobs while generating between $3 billion and $5 billion annually.

But aside from the monetary impact and employment opportunities this plant will provide, there's an underground, more clandestine reason this company's so intriguing.

The thing is, you can’t just find this particular information any old place.

I came across a recent Fox News article that reported all kinds of facts on this company. The piece discussed everything from when construction could begin to how much land will be required.

But the guys at Fox conveniently left out the most important piece of the story…

You see, for the past several months, this small nuclear company has been engaged in secret talks with the Korean government. It just so happens, the Koreans are on the cutting edge of nuclear reactor design...

And the pending deal that this company has with the Koreans could turn into one of the biggest windfalls in energy history — both for the tiny, nuclear company I’ve been telling you about as well as for you.

The proof is already in the pudding.

104% gains in January, 100% gains in May — and another 136% as I write this.

But that’s not even close to what I see investors pulling in once the information that Fox News didn’t report hits the mainstream...

I urge you to check out the full details in my exclusive report…

Call it like you see it,

Nick

Don't Sell Your Junior Gold Stocks Just Yet

Investors of junior gold stocks are still concerned about the financial world around them. And rightfully so...

Many are wondering if they should cash out of their positions while the broader markets sell off and buy back in later.

But selling off shares of all your junior gold stocks might not be the best idea right now.

And I'm going to tell you why.

The "War on American Retirement" EXPOSED

While our nation's eyes are fixed on Iraq and Afghanistan, Congress launches a hidden assault right here in the homeland...

Against your IRAs and 401(k)s.

You can surrender and lose everything - or make this "guerilla wealth" move and retire rich, with your assets intact.

Click here to learn more

The junior gold stock market can be very volatile in both directions.

It can move very quickly at times when major market events — good or bad — occur.

And what investors really need to remember is this:

In the past ten years, the junior gold stocks market has only rallied about 25% of the time, and been mostly in the doldrums for the other 75% of the time.

Right now, the junior mineral market is suffering. This is most clearly evident in the down-trending activity of the TSX Venture, which made up of about 50% of junior mineral stocks.

Since the beginning of the summer, the TSX Venture has shed almost 20%.

Take a look:

Investors have recently been moving out of junior gold stocks and in to cash over fears of a second wave of financial troubles.

Meanwhile, physical gold and silver prices remain strong, recently breaking record.

And I believe we will continue to see pulsing momentum of increased interest in the market as the world financial situation is exposed for what it really is: a house of cards.

I don't think it's a bad idea to raise some cash at the moment, especially on positions that you've made any significant money with. However, I would advise investors to stay in their core junior gold stock positions.

Personally, I have always felt more comfortable with making long-term investments. I can sleep well at night with and not worry about the short-term trends.

Successful trading takes very specific skill sets that most investors simply don’t have. This is why as a newsletter writer, I take the approach of investing over the long term for most subscribers and not worrying so much about the short-term ups and downs we go through within the markets.

As an example, I have many clients that bought gold at $300 or $400 an ounce ten years ago and were holding for the long term. They have done exceedingly well.

A good friend who traded the bullion market over that same time period recently told me he wished he had just kept his original positions and not traded. The amount of stress and worry he had to deal with as he traded the short term were a gigantic cost to him, as were the loss of profits.

The long-term trend is totally in our favor. Yes, there are always hiccups along the way — but gold and silver prices will continue to power higher and move junior gold stocks in the direction we want: up.

As the parabolic moves come when world fiat currencies fail, there will be no better place to be than gold, silver, and their respective mining shares.

If you feel like you are a good trader, then by all means go for it.

But for the average investor, I think you want to raise a bit of cash now and let the rest ride.

Good Investing,

Greg McCoach
Editor, Energy and Capital
Investment Director, Mining Speculator and Insider Alert

P.S. My colleague Luke Burgess has just published a new report on the precious metal that pays out $12,890 for every car made around the world... And with the worldwide automobile market exploding, this rarely-invested-in metal is coiled for huge price gains. Learn the secrets to this rare precious metal in Luke's most recent report.

338% in 8 Days, 141% in 7 Days, 221% in 9 Days...

Those are actual gains made by readers of Ian Cooper's options trading services.

His strategy has proven to be so popular, that he's giving you a chance to learn all about trading options -- ABSOLUTELY FREE.

He's put together a how-to guide that documents the lucrative and misunderstood world of options, and it can be yours for free just by clicking here.

U.S. Onshore Drilling Boom

Rife with comical absurdity, “Drill Baby Drill” mentality assumes that we're smart enough to drill for oil offshore.

But the BP disaster in April did a heck of a job disproving that...

All BP had to do was heed the warnings over blow-out preventers (BOPs) — which ultimately failed and contributed to the fireball over the Gulf of Mexico — and BP most likely wouldn't be in the mess it finds itself in today...

But that's what happens when people don't listen

BP's blowout protector was a 325 ton, $15 million beast that sat at the bottom of the Gulf, controlling pressure or shutting down flow if something went wrong.

Had it been working properly, it would've kept gas from running up too quickly into the rig, which is exactly what happened and what sparked the explosion of Deepwater Horizon.

But had BP listened to warnings, the Gulf wouldn't be full of oil.

How You Could Make 508% Gains Off the End of Offshore Drilling

Deep-sea drilling is public enemy # 1 these days... President Obama is freezing any and all new projects from entering the water...

Is this the end of offshore drilling?

Three small American companies are taking advantage of the huge gamechange in the oil industry and drilling in the most oil-rich inland reserve in the country today.

Find out how you can get on board with the profits to be made in domestic drilling, and take huge advantage of this new ocean-less era.

You see for more than a decade, offshore rig operators were told to have other systems in place should the BOP fail.

Yet, no one listened... and no one enforced these safety precautions, it seems.

And you'd think that after 1,443 drilling accidents in offshore operations — leading to more than 40 deaths, more than 300 injuries, and 356 oil spills between 2001 and 2007 — some one would have enforced something.

It was really only a matter of time before another accident happened.

But you can't totally blame the BOP in this situation.

Human stupidity — er, error — was largely to blame as well.

According to Newsweek:

A Congressional investigation would find that the BOP had a dead battery in its control pod and leaks in the hydraulic system. The biggest problem, however, came when the rig hit the resevoir and began pumping oil. Under standard operating procedures, the string is securely contained in the blowout preventer, which keeps it steady. But at one point, when the rubber pads were tight around the pipe, a technician in the rig accidentally bumped a joystick that moved the pipe upward about 15 feet. This both damaged the pipe and the rubber.

As engineer Mike Williams disclosed in his 60 Minutes interview, the pieces of rubbed-off rubber from the hugging mechanism began to flow upward with some oil, which concerned some people in the rig. But unfortunatly, there was no way to follow up on those fears. Earlier in the trip, the battery which that powered the communication system between the BOP and the rig died, and workers were unable to moniter any problems that might occur. (According to the Congressional report, BP officials on site looking to save time and money and encouraged workers on the rig to press on without changing the battery.)

And drilling continued anyway... until the rig hit a stream of oil and methane gas and the BOP was unable to regulate force.

Even more infuriating, a Deepwater Horizon worker recently told BBC News that he and others identified a leak in a control pod (the brains of the BOP) weeks before the accident.

And if that's true... and BP moved forward in the face of danger anyway... BP could be "complicit in gross negligence."

Paradise spiraled into Hell

In a split second, BP's rig blew sky high... Eleven people were killed. And oil gushed everywhere... and has continued to spill into Gulf waters for more than two months.

Animals are washing up on land. Beaches are ruined. Jobs are being lost. Entire industries are being washed away... BP still doesn't know its back end from its elbow.

Every one's saying it'll be another six months until the spill is stopped...

But while the BP spill is making headlines as the greatest environmental criss in U.S. history, one industry — the onshore drilling business — is taking center stage.

And it's likely to continue, even if offshore drilling is allowed in the future.

Deep-sea drilling is now public enemy #1 in almost every corner of the country

From Washington to Wasilla... Wall Street to Main Street... Everywhere you turn, politicians, pundits, and average Joes can't distance himself far enough from deep-sea drilling.

Ohio Republican and House Minority Leader John Boeher now says:

... [T]his tragedy should remind us that America needs a real, comprehensive energy plan... which includes more of everything: more clean and renewable sources of energy such as nuclear power, wind, and solar energy, more alternative fuels, more conservation, and more environmentally responsible development of America's energy resources.

Brit Hume recently said:

... [I]t's not a matter of if they'll be a disaster of some kind resulting of this kind of offshore drilling, it's only a matter of when. This verifies that argument and becomes a powerful factor in the debate over what to do next. I don't see any way around the political reality that this will set back the cause of offshore drilling in the United States...

Even Gov. Schwarzenegger of California, who had supported deep-sea drilling off his state's coast, has now recently changed his mind and come out against it...

And so has President Obama — who, in late March, gave the OK to more offshore oil projects in Alaska, the Gulf, and along the Eastern Seaboard — is now backpedaling and freezing all new underwater drilling permits...

A CBS public opinion poll shows that support for increased offshore drilling has dropped more than 35% nationally since August 2008...

Here's what you need to own as the calls for more onshore drilling increase

With destruction in the Gulf and a unrealistic call to end off shore drilling, we'll see more calls for onshore drilling. And any company involved will skyrocket... especially in the oil-rich Bakken area — one of the largest continuous oil accumulations ever assessed in the United States.

Even if the moratorium is gone, investors are likely to come back to on shore drilling stocks... which makes Oasis Petroleum (OAS) even more attractive.

This company has 292,000 net acres under lease prospective in the Bakken and Three Forks areas.

And it already had proved reserves of 13.3 million barrels of oil equivalent (BOE) a day by close of 2009 — and average daily production of 3,295 BOE per day in the first quarter of 2010.

Onshore drilling is where smart investors will look to put their money as the Gulf continues to lap oily waves onto its beaches... and beyond.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

P.S. As long as the BP drama unfolds, OAS is likely to pop with other onshore drillers. Be on the lookout for a buy shortly in Pure Asset Trader — the team with a 62-for-65 closed position track record.

Top Silver Stocks for 2010

An unprecedented crisis in the silver market could easily hand you a long series of double... triple... even quadruple investment gains.

And today I'll tell you how.

You probably already know that every commodity fortune ever made was created by an imbalance of supply and demand.

When the demand for a certain commodity is high and supplies are low, prices skyrocket. And investors holding the commodity in question get rich.

This is exactly what has happened in the case of many natural resources just in the past decade alone:

Crude oil shot up 620% in 6 years
Gold is now up over 380% since 2001
Natural gas soared more than 550% in 4 years
Uranium spiked 830% in 4 years
Copper increased nearly 530% in 7 years
Palladium more than tripled in 3 years
Platinum prices grew 430% in 6 years

As demand grew and supplies dwindled, the prices for these natural resources ballooned in value.

But none of these commodities experienced the supply/demand crisis that silver is currently facing.

Take a moment to chew on this...

According to GFMS Limited — the world's leading authority on precious metals markets — the total amount of above-ground silver supplies dropped by 86% last year.

This left the world with just about 20 million ounces of silver reserves.

At the same time, the world demands about 2.5 million ounces of silver per day.

That means the entire global supply of above-ground silver could be completely wiped out in just eight days!

Fortunately, silver production companies have been able to keep up with demand — but just barely...

Last year, silver miners were only able to increase production by just over 3%. And for the past 10 years, there has been no surplus in silver supplies.

This extremely tight supply/demand dynamic of the silver market has been terrific for investors that own the physical metal. Silver prices have increased nearly 350% since 2002.

But shareholders of the companies that pull the silver out of the ground have done even better. Here are three recent...

Silver stocks beating the markets

Silver Wheaton Corp. (NYSE: SLW)

Silver Wheaton is the largest precious metals streaming company in the world. The company has thirteen long-term silver purchase agreements and two long-term precious metal purchase agreements.

These agreements allow the company to purchase all or a portion of the silver production at a low fixed cost from high-quality mines located in Mexico, the United States, Greece, Sweden, Peru, Chile, Argentina, and Portugal.

For 2010, Silver Wheaton expects to produce 22.2 million ounces of silver and 20,000 ounces of gold, for a total production of 23.5 million ounces of silver-equivalent.

By 2013, annual production is expected to increase significantly to 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver-equivalent ounces.

Pan American Silver Corp. (NASDAQ: PAAS)

Pan American Silver is the second largest primary silver producer in the world. The company owns and operates eight silver mines and four development projects in Peru, Mexico, Bolivia, and Argentina.

Pan American's growth strategy is based on the continued increase of low cost silver production through the efficient operation and expansion of its existing mines, an aggressive exploration program, and the acquisition and development of new silver-rich deposits.

The company has increased silver production by 105% since 2004. Last year, the company produced 23 million ounces of silver from its Latin American assets. For 2010, the company anticipates increasing production slightly to 23.4 million ounces.

According to the latest estimates, Pan American Silver has 234 million ounces of silver reserves and 940 million ounce of resources in the measured, indicated, and inferred category.

The company also mineral reserves of 679,000 ounces of gold, 717,000 tonnes of zinc, 302,000 tonnes of lead, and 67,000 tonnes of copper.

Fresnillo plc (LSE: FRES)

Fresnillo plc is the third largest silver producer in the world and Mexico's second largest gold producer. The company operates four producing mines and one development project, all located in Mexico. In total, Fresnillo has mining concessions covering approximately 1.75 million hectares across the country.

One of the main drivers of Frenillo's growth is the investment in exploration and the development of projects and prospects with the potential to become low-cost operating mines. The company's disciplined approach to investment includes the evaluation of economic ore grades, maximum extraction costs, and an established reserve base.

In 2009, Fresnillo increased silver production by 9% to a record 38 million ounces. The company also increased gold production by 5% to 277,000 ounces.

The company plans to bring one new mine into production each year until 2014. As a result, Fresnillo anticipates increasing silver production by another 50% to over 56 million ounces in the next four years.

In my most recent Energy and Capital report, I give details on another company that is expecting to ramp up silver production this year by 66.7%.

This increase in production is expected to boost quarterly operating cash flow by over 650%, which is exactly why the world's biggest investment and financial institutions have been hoarding this stock.

To read my latest report for free, simply click here.

Good Investing,

Luke Burgess
Editor, Energy and Capital
Investment Director, Hard Money Millionaire

How To Make Money From Every Car Produced

Despite what you may read in the papers, the global auto industry is thriving…

In fact auto production world-wide is increasing 6% this year.

And after a four-year study, we uncovered how you could get paid from every single one made — no matter what happens to an automaker’s share price.

Click here to find out how...

The Option ARM Crisis 2010-2012

Over the last 3 years, you've become accustomed to hearing various causes for the current financial crisis: subprime... no-doc loans... liar loans... credit default swaps...

Well, dear reader, get ready for another term: Option ARMs (Adjustable Rate Mortgage).

You'll be hearing about this for the next year, as it will mark the second wave of the current financial crisis.

Option ARMs is the mortgage equivalent of the crazy, drunk uncle you try to keep hidden during family gatherings. And just like the drunk uncle, sooner or later, he staggers into the living room, ruining the party...

They Just Struck Oil...

Two days ago, around 10 a.m., a tiny Mongolian oil driller I've been watching hit pay dirt.

Once the news hit the mainstream, the stock jumped 42% in what seemed like minutes...

And this is just the beginning of what could be a HUGE run. I'm talking about the possibility of an easy 10-bagger here.

So I urge you to take a look at the full details today before you miss out on even more incredible gains.

It's worse than subprime...

Now, when it comes to Option ARMs, we’ve been sounding this alarm for months — if not years.

And we’re not the only ones... 60 Minutes had this to say.

Just as 2007 and 2008 were the years of subprime woes, 2010 will go down as the year of Option ARM resets. With billions in Option ARM resets in 2009 and 2010, this crisis is about to unleash a fury no one's prepared for.

It won't be as bad as subprime, of course — it'll be worse.

That's because lenders created these ARMs with "teaser" features for borrowers; features that included making lower minimal payments for the first few years before the loan reset to a higher payment schedule.

If that weren't bad enough, there was another feature called "negative amortization," which meant you weren't paying back any principal.

In fact with negative amortization loans, your loan balance increased over time. Incredulously, every time you made a payment, you owed the bank even more. These are the loans that allowed consumers to buy houses they couldn't otherwise afford.

What should concern you is that about $750 billion worth of option adjustable mortgages (option ARMs) were issued between 2004 and 2007 and will begin resetting shortly. Institutions like Bank of America, JP Morgan Chase, and Wells Fargo are in for a rough ride, given their exposure to option ARMs.

What do you think will happen to housing when the resets happen?

What do you think will happen when monthly payments on a $400,000 mortgage jumps from $1,287 to $2,593?

We'll see even more foreclosures, as Option ARM resets cause a larger number of foreclosures than subprime.

Higher unemployment will deteriorate any chance of keeping some homeowners from defaulting. Homeowners will find it acceptable to strategically default on house payments, as it's just easier for them to just walk away.

These "walk-aways" or "strategic defaults" have more than doubled from 588,000 between 2007 and 2008, according to reports... Analysts expect there will be more, as financial "experts" tout the benefits of walking away from mortgages.

And the financial community will be left holding the bag.

The simple truth

Housing is in trouble; foreclosures will mount; and people will continue to walk from their homes.

The mortgage crisis will continue to drag on the economic recovery — so long as homeowners fall behind on payments — and this will send investors to the safe havens of gold.

History shows us that market panic sends smart investors to the ultimate safe haven of gold.

The credit woes of the 1903s sent American investors to gold... The U.S. subprime chaos that began in 2007 was responsible for rocketing gold... The European debt contagion alone is partially responsible for pushing gold up more than 10% this year to $1,200 an ounce...

It seems that every time the dust seems to settle, we’re kicked in the gut again — sending gold higher. And what’s about to unfold with Option ARMs could be responsible for sending gold even higher than it is today.

This means you should want to buy gold — or buy more gold — right now.

Because I don't care how bullish the Fed is... They're wrong.

According to the AP, more than four million homeowners (8% of all Americans with a mortgage) are at risk of losing their homes. And many analysts, including yours truly and my fellow editors, are forecasting another dip in home prices as more glut hits the market.

Things are going to worsen because government plans aren't helpful. Banks aren't doing much to prevent foreclosure, and regulators failed in their oversight. Politicians walked away from protecting Americans and at this point, would end up opening the floodgates to predatory lending and over-leveraged derivatives... Obama's plan to help the unemployed will most likely fail.

Gold remains one way for investors to hedge themselves against this financial crisis.

Even 60 Minutes and JP Morgan understand this

60 Minutes found that at least a million Americans who can afford to stay in their homes just walked away, and JP Morgan is out warning investors that underwater homeowners may walk away from mortgages.

CoreLogic recently pinned underwater homeowners as making up about a quarter of all homeowners with a mortgage — that's about 11.3 million homeowners. About 29% of all homeowners with a mortgage are either underwater or very close to it.

But besides buying more gold, there's another way can you profit from crumbling real estate and mounting foreclosures: You buy the companies that process the foreclosures.

My latest report explains why 20 million properties will be foreclosed by 2012 — and how this could make you very, very rich.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

Why You Should Listen to Walmart

JP Morgan and Silver Prices

Earlier this month, something strange happened in silver markets.

I was sitting at my desk, eating some Fritos and daydreaming about the upcoming weekend.

Suddenly, silver spiked 5% and I was jolted out of my pleasant daze.

The move happened fast and silver barely budged for the rest of the day. Clearly, something happened. Action like that shown in the chart below doesn't just occur naturally in the market.

The red line shows 1-day silver prices for Friday, May 9th.

(chart courtesy of kitco.com)

I walked over to my colleague Ian Cooper's desk. "What the hell's going on with silver?" I asked.

He didn't know. Nobody did. A news search turned up zilch.

Gold was near flat and ended the day up less than 1%. The dollar was down, but only by 0.5% or so. So the silver move was isolated.

The price jump was a mystery, apparently — the good kind of mystery, if you own silver miners and bullion like I do.

I didn't think anything else of it.

But over the weekend, I came across an article that may shine some light on the spike...

Washington's starting ANOTHER undeclared war...

It's not against terrorists, Communists or drug cartels - but against you and me, right here in the U.S. of A.

Click here to discover the secret $6.3 trillion offensive against America's IRAs and 401(k)s...

And the one "guerilla wealth" move you'll need to survive it with your retirement assets intact - or even far larger than you're figuring right now.

Learn more here.

On May 8th, the NY Post featured a story about JP Morgan's (NYSE: JPM) possible role in silver market manipulation. According to The Post, the CFTC and Justice Department have launched both civil and criminal investigations into the matter.

JP Morgan has long been accused of depressing silver prices, along with several other "bullion banks." Some theories say they are acting as agents of the Treasury Dept., keeping metal prices down makes the dollar more attractive as a reserve currency. Some think they're just doing it to reap huge profits by moving entire markets.

But this is the first we've heard of an official investigation with the possibility of criminal charges being filed.

Gold & Silver Conspiracy Theorists Vindicated?

Organizations like GATA (Gold Anti-Trust Action Committee) have been sounding the alarm about manipulation of precious metal markets for years. They accuse big banks like JP Morgan of holding "naked" shorts on silver and gold — meaning they are promising something they could never actually deliver.

GATA and other gold bugs have been dismissed as tinfoil-hat wearing morons all along (much like those who said Goldman Sachs was engaged in fraudulent sub-prime schemes... and we know how that turned out).

Now it appears that these "kooks" may have been onto something. They're not vindicated quite yet, but their story is starting to look a lot more credible. The non-believers among us may have to don tinfoil hats and do some groveling before this is all over.

Because this doesn't appear to be your typical wrist-slapping exercise, where the SEC fines a bank some percentage of the profits they reaped from the illegal act, and nobody is forced to admit fault.

We're talking about a full-blown criminal investigation by the Justice Department here. This could be huge.

Why Now?

Apparently Obama is taking notice of his abysmally low approval ratings. As a result, he's desperate to kill the widely-perceived notion that he's in bed with the banks.

Just a thought — but perhaps Obama shouldn't have stacked his appointees with banksters in the first place...

I digress.

Regardless, it's clear that the administration is putting pressure on financial regulators. The regulators, in turn, are putting the screws to the biggest (and most reviled) financial firms. We recently heard about the SEC's fraud case against Goldman Sachs.

And just this month, Moody's revealed that the SEC may revoke their status as an officially-recognized ratings firm.

Like all horribly-embarrassing corporate announcements, Moody's was made after the close of trading on a Friday. Evidently Moody's execs hoped everybody would forget about it by Monday. Not so, as shares traded down 8% the following Monday.

But the JP Morgan investigation could turn out to be the biggest case of all.

JPM is the largest financial firm in the United States, boasting $2 trillion in assets. They're also the largest hedge fund manager in the States, with $53 billion under management.

If it turns out they have been illicitly shorting billions worth of silver contracts, as some allege — and they're forced to buy bullion to cover that position — the result would be staggering.

Implications for Silver Prices

We don't know exactly how this investigation will affect silver prices going forward. But if the allegations prove true and banks are forced to cover massive short positions, a relatively thin silver market could see a big squeeze — and far higher prices.

But cutting out market manipulation is only one factor that may work in silver's favor.

Bernanke's printing press is the other big one. With interest rates likely to remain near 0% for years, inflation will inevitably rear its ugly head. Plus, you can forget about the Fed shrinking their balance sheet any time soon...

All that "exit strategy" talk is nothing more than bluster. I think the Fed is far more likely to expand buying programs further before they consider ditching the garbage on their books. As Milton Friedman pointed out, there's nothing so permanent as a "temporary" government program.

In the long run, American reliance on Fed easing will push precious metals prices higher. Ignore scare talk about deflation — it simply isn't allowed to happen in modern times.

In the Great Depression deflation was absolutely an issue — but the dollar was tied to gold back then. Bernanke will dump enough cash to drown Wall Street before deflation is ever allowed to occur. It would simply crush the big banks, and these institutions are too connected to fail.

How High Can Silver Fly?

More and more respected analysts are calling for $50 silver.

David Rosenberg, former head economist at Merrill Lynch, recently predicted gold would go to $3,000 over the next few years. If it does, I expect silver to outperform percentage-wise. The historic ratio of silver/gold is out of whack, and silver is due for a huge bull run.

If this scenario does play out, the best way to capitalize on it is through junior silver miners. These companies are highly-levered to underlying metal prices.

Well-chosen mining picks could easily see rise four times more than the metal itself does. If silver goes up 200%, a good mining pick could go up 800% or more.

My colleague Luke Burgess, editor of Hard Money Millionaire, has a report detailing his top three ways to play the silver bull market.

Luke gives his top silver stock pick, and the best way to buy silver bullion — plus details on how to invest in a unique security with the potential to generate 4-digit returns over the coming years. Learn how to cash in on monster silver bull-market here.

And stay nimble out there... This market has danger written all over it.

Adam Sharp
Analyst, Wealth Daily

They Just Struck Oil...

Two days ago, around 10 a.m., a tiny Mongolian oil driller I've been watching hit pay dirt.

Once the news hit the mainstream, the stock jumped 42% in what seemed like minutes...

And this is just the beginning of what could be a HUGE run. I'm talking about the possibility of an easy 10-bagger here.

So I urge you to take a look at the full details today before you miss out on even more incredible gains.

Henry Groppe: Time to Go Long Natural Gas

It's hard to make money when you're following herd mentality...

But plenty of money has been made betting against the herd; that is, investing in a position everyone else hates.

The "War on American Retirement" EXPOSED

While our nation's eyes are fixed on Iraq and Afghanistan, Congress launches a hidden assault right here in the homeland...

Against your IRAs and 401(k)s.

You can surrender and lose everything - or make this "guerilla wealth" move and retire rich, with your assets intact.

Click here to learn more

Time To Go Long Natural Gas

You've heard it all before: Supply is out-pacing demand... Our ability to horizontally drill for shale gas has made the supply picture seem unlimited... The short-term outlook is bleak...

Those are all fine examples of herd-mentality thinking.

Contrarians like us, on the other hand, keep a close eye on natural gas. Companies like Chesapeake Energy (CHK) have the potential to make you a killing.

And we're not the only ones who think so...

This 80-Year Old Oil Man Thinks So, Too

Henry Groppe, a Texas petroleum analyst with a long track record of betting against the herd, believes natural gas will double by the end of summer 2010.

He's arguing that shale wells are depleting rapidly, and that there is a real shortage of gas "which will become apparent this summer in dramatic fashion," according to The Globe and Mail. "Gas inventories are about to get a lot tighter... new supplies are overstated, and prices are headed north of $8 by the end of summer.”

Why the confidence?

Horizontal drilling advancements are not the Holy Grail they've been cracked up to be, he says. "Not even close. Horizontally-drilled wells face a huge amount of rapid depletion once tapped, and so the supply that we are all counting on to be there is ephemeral at best."

But still... a double by summer's end?

Let's Take a Look at Groppe's Track Record...

According to reports, "In 1980, when oil approached $40 a barrel and forecasters predicted $100 oil was inevitable, Mr. Groppe said crude would fall below $15 by the mid-1980s."

And it did.

"In 1998, when crude dipped to barely above $10 and some prognosticators were hailing a new era of cheap energy, Mr. Groppe said oil was set to soar."

By 2000, oil topped $30.

And just two years ago, when oil threatened to breach $150 and forecasters were calling for $200, Groppe said oil would fall back to the $60 to $70 range in the second half of the year.

Again, he was right.

"Now," he says, "a slow-but-gradual decline in North American natural gas reserves — regardless of shale — means an average price in the $8 range is inevitable to trigger the 'demand destruction' necessary to keep the supply-demand picture in balance... Eventually, that price will creep up toward $10 by the end of the decade, as gas production slowly depletes."

We stand behind Groppe as his past success with market calls proceeds him. There's also Mario Gabelli, another shot-caller in the sector...

Meet Mario Gabelli, who just made a big play on natural gas

Gabelli just bought 800,000 shares of National Fuel Gas — his "cheap way to play America's energy."

"With the economy improving, we think natural gas is undervalued," he says. "America will increasingly depend on gas... "

Let the herd keep hating natural gas... We'll roll in profits by the time they catch on.

Stay Ahead of the Curve,

Ian L. Cooper
Editor, Energy and Capital
Investment Director, The $20 Trillion Report

Editor's Note: While investors have been waiting for the boom in natural gas, there's a North American oil play that couldn't be more urgent... It's what my colleague Keith Kohl calls North America's oil comeback, and the company leading the charge, Keith says, could be an easy double by fall of this year.

The Biggest Investment of the 21st Century

It's called the smart grid... and it's about to revolutionize the way we use our electricity.

GE and Google have already committed billions to this technology...

But a handful of "super-ups" are poised to dominate this $297 billion/year industry...

Get their names and ticker symbols here.

Colombian Oil Stocks are Set to Run

It's one of the world's fastest growing and most important energy development stories...

And yet virtually nobody is paying attention to it.

With tens of billions of dollars expected to be invested in the country's energy sector over the next several years, oil production in Colombia is forecast to skyrocket.

For investors, this means huge opportunities for easy profits.

Breakthroughs Nowhere Near This Big Have Paid Investors Over 10x Gains

Our resident biotech expert just came across a tiny company that can make the human immune system 1000 times more effective against dozens of deadly diseases -- including the major cancers: Prostate, lung, breast, cervical, and more...

Here's how their revolutionary "cell-shock" technology could hand you as much as 1000 times your money as it saves tens of millions worldwide.

Colombia's Energy Sector

Since 1999, Colombia's government has taken aggressive steps to stimulate foreign investment in the country's energy sector.

New initiatives include allowing foreign oil companies to own 100% stakes in oil ventures; the establishment of a lower, sliding-scale royalty rate on oil projects; longer exploration licenses; and forcing national oil company Empresa Colombiana de Petroleos (ECOPETROL) to compete with private operators.

These measures have been a resounding success.

According to Colombian government officials, the oil sector received $2.95 billion in foreign investment in 2009 — up from just $1.7 million in 2003. This year, foreign investment is anticipated to increase another 19% to $3.5 billion.

Over the next six years, the government expects almost $40 billion to be invested in Colombia's energy sector.

The oil sector will see the largest amount of energy investment, as $24 billion will be invested through 2015 on new exploration and production activities. The remaining investment will go toward the expansion of refineries, new pipeline infrastructure, power generation, and testing and development projects.

As a result of the growth in financing, Colombia's crude oil production is expected to hit a record 825,000 barrels per day this year.

By 2015, Colombia's oil output could double from current levels to 1.5 million barrels per day, including 1.2 million barrels of crude oil and 300,000 cubic feet of natural gas.

Colombia's crude production was up 18% to an average 763,000 barrels per day in March, up from 647,000 bpd in the same month last year. This March production level is the highest average monthly figure since December 1999, when output stood at 767,000 barrels a day.

An increase of Colombia's oil production would strengthen the country's status as the region's fourth-largest crude producer and boost overall GDP.

In 2009, Colombia’s oil exports rose to $10.27 billion and accounted for just over one-third of total foreign trade.

The oil industry’s share of the GDP reached 3.2% last year, up from the 1.78% share it had in 2006.

One of the most important factors in boosting crude oil production in Colombia has been improved security after more than 40 years of armed conflict in the Andean country.

Colombia once reported 100 guerrilla attacks a year on its oil infrastructure. But government forces under President Alvaro Uribe have largely subdued leftist guerrilla groups that for years blew up pipelines and kidnapped petroleum workers.

Foreign oil companies now feel safer sending employees and equipment into an oil-rich region of Colombia that, until recently, was under control of the Revolutionary Armed Forces of Colombia (otherwise known as FARC).

Investing in Colombian Oil

Colombia now has 240 active oil contracts and 120 public and private oil companies working in the country.

In June, the Colombian government will auction off 255 oil and gas blocks covering 130,000 acres, and is preparing to invest $3.8 billion to expand infrastructure for oil transport and shipping. The auctions includes acreage in frontier areas as well as more-established parts of the country. In addition, the auctions will include offshore blocks in both the Caribbean Sea and the Pacific Ocean.

Already, 83 companies are registered to take part in bidding to take place in Cartagena.

Junior oil companies are rushing into Colombia. The success of companies like Petrominerales (TSX: PMG), Gran Tierra Energy (AMEX: GTE), and Pacific Rubiales (TSX: PRE) has spawned the creation of several new small companies, including:

Petroamerica Oil Corp. (TSX-V: PTA)
Canacol Energy (TSX-V: CNE)
Cap Link Ventures (TSX-V: CAV)
Alange Energy (TSX-V: ALE)

Small exploration companies that discover unknown oil resources can see their share prices rise exponentially.

My colleague, Keith Kohl, recently discovered a new oil exploration firm that's already being touted as the #1 oil play in the United States.

Keith recently said of this play:

Since being upgraded this stock hit a high of nearly $15 — including a 233% gain in just over one year. We cashed out with a gain of over 103%... and now we're ready to take our second round of profits.

You can learn more about how to get started investing in this stock today.

Good Investing,

Luke Burgess
Editor, Energy and Capital
Investment Director, Hard Money Millionaire

Radical technology promises to break Big Pharma profit records

One small American company's "cell-shock" technology will soon be the global Gold Standard for the treatment and prevention of all the major cancers, influenza, malaria, HIV, and more...

It's expected to save millions of lives — and bring over 10,000% returns to investors of this medical miracle.

Click here to earn 1,000 times your money...

Your Last Chance to Buy Gold

This equity rally is doomed.

It's a dead cat, a suckers bet.

Sure, if you throw a trillion dollars at the world, things start to happen.

Last week, the European Central Bank did just that... They tossed in the Marshall TARP to "save" Greece and prevent a dept/currency crisis from spreading to the rest of Europe.

As you can tell by this chart of the QQQQ’s, which tracks the NASDAQ 100, this plan worked.

Equity markets came flying back from the edge of the abyss. (Please note the "flash crash" on the sixth.)

But don't buy into it — it won't last. Volume is falling and we are putting in lower highs.

Billionaires' Game-changing Fossil Fuel Gamble

Ladies and gentlemen, we're witnessing the end of an energy era.

George Soros and T. Boone Pickens know it -- which is why they're investing millions of dollars in the world's next biggest "future fuel."

Click here to find out how their gamble in this new energy giant could bring you upwards of 1,925% gains.

Goldman as the Illuminati

The EU and IMF might have saved the markets in the short run — but at a severe cost to credibility.

If you had hard stops in last week, you could have lost a fortune as many stocks fell to a penny for five minutes.

My favorite "flash crash" conspiracy theory at present has been dubbed the "Goldman Sachs Revenge." This theory maintains that when the Obama team decided to go after the world’s biggest investment bank, Goldman Sachs (NYSE: GS) crashed the market and asked, "How do you like me now?"

And it's not hard to imagine now that we are seeing the toothless Wall Street regulations coming out of the Senate.

The upshot of all of this is that no one trusts the markets. The lack of volume on the chart above illustrates a lack of conviction.

This market will retest the recent lows.

More Debt Will Save Us

The simple fact is that you can’t solve a global debt crisis by creating more debt.

In the aftermath of three bubbles in the past ten years, it could be that investors are starting to believe that the "full faith and credit of the U.S. Government" that backs the dollar isn’t really all that great.

Here’s another chart. This is the SPDR Gold Trust (NYSE: GLD); it just had a jailbreak on big volume:

Gold hit record highs near $1,250 an ounce in Europe last night.

And it wasn’t just futures...

According to Reuters:

Investment in physical bullion was strong as buyers sought safety, with holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, at a record high 1,209.5 tonnes on Thursday. The fund's reserves have risen 68.5 tonnes or 6 percent in the last four weeks. The SPDR ETF is the world's sixth largest holder of gold, ahead of Switzerland, China and Japan.

The Sheep are Bleating

Investors are starting to put gold in the "safe-haven" category for the first time along with the U.S. dollar.

I know... Gold bugs have been talking about gold as a safe-haven forever.

But until this week, gold has been trading as a function of the dollar as a commodity.

Then everything changed...

This next chart shows the dollar ETF versus the Gold Trust SPDR. Take a look:

You will notice that in the past, gold went up as the dollar fell — and vice-versa. This is because gold, like oil, is priced in dollars.

But this week, as the dollar rallied on euro fears, gold went up as well.

The price of oil went down — nice and normal.

But gold and the dollar both went up at the same time.

This is a big deal!

Famed German banker Barron Rothschild taught us that gold normally trades like a commodity. But when investors lose confidence in currencies, because the pool of gold is so much smaller than the pool of currencies, demand for gold can effectively become unlimited.

The recent gold/dollar action would strongly suggest that gold is now trading like a currency.

Buy gold — lots of it.

Sincerely,

Christian DeHaemer
Editor, Energy & Capital

Big Pharma's Nightmare is Your Ticket to 1,000% Gains...

It's no secret Big Pharma makes a killing from the vaccines that keep us healthy.

But what if there were a technology that could make it so we never had to get another vaccine ever again?

You can bet Big Pharma would be shaking in their boots... and the company that develops that vaccine would be destined to become very rich.

We've found just a company. They're working on the last flu shot we'll ever need... and they plan on making investors like you a whole lot of money.

Click here to learn more about the breakthrough that could earn investors up to 1,000% gains.

The Best Nuclear Energy Stock

An immense battle has been won...

After countless board meetings, voting procedures, and legislation changes, one very small American energy company has joined the big dogs.

You've probably never heard of them, but that's probably because their name hasn't been plastered all over every major media outlet in the United States.

If anything, they've flown under the radar... but that won't last for long.

Why Stalin's "lost oil" could bank you 180 times your money by this time next year

Joseph Stalin isn't widely known for the mistake he made nearly 70 years ago...

But he should be, because it stands to make a handful of savvy investors quite rich in the coming months.

In fact those who know what we've just uncovered could make as much as 180 times their money.

Read our latest report now before this story makes headline news.

That's because they're one of the most exciting energy companies leading the charge in the current American nuclear renaissance.

As our nation transitions from dangerous, filthy, environmentally-damaging energy sources such as oil and gas, there are a select few companies who are leagues ahead of the pack.

And these guys are one of them.

In fact on May 11, 2010, this tiny company was granted approval to build its nuclear industrial complex on a 5,000-acre plot of land in Idaho.

This is extremely important because until a few days ago, this particular land had been zoned for agricultural use only.

But once the facts were revealed on just what a boon a nuclear power plant would have on the economy, this company didn't have a whole lot of trouble getting that changed...

According to the National Association of Manufacturers, a single new nuclear power plant can add $500 million annually to the economy.

Not only that, but the Idaho plant is expected to create roughly 5,000 construction jobs and more than 1,000 jobs during operations (with pay levels averaging $60k and $80k, respectively).

Furthermore, according to Nuclear Street: "The projected revenue for the county and state is staggering. During construction alone the project should increase Idaho's GDP by $5.3 billion, while $4.8 billion will flow directly through [the county]."

Money talks. And a new power plant in Idaho would mean a ton of money for a ton of folks.

Maybe that's why an overwhelming eighty percent of local citizens voted for this company's progress.

But aside from the monetary impact and employment opportunities this plant will provide, there's an underground, more clandestine reason this company's so intriguing.

You see, for the past several months, these guys have been engaged in secret talks with the Korean government. It just so happens, the Koreans are on the cutting edge of nuclear reactor design...

Not only do their APR-1400 reactors excel in quality, but they're also billions of dollars cheaper than their competitors are.

Other countries already have contracts in place with the Koreans, but so far, no one in the U.S. does — yet.

But the key word there is "yet."

The small company I'm telling you about right now is well on their way to accomplishing that feat. And once they do, they'll surpass everyone else in the industry.

Not only will they have the most advanced nuclear reactors in the world and save billions of dollars, but they'll also have an edge in the nuclear industry that no one else will have.

According to the terms of their talks with the Koreans, if other North American energy companies decide to go through Korea for similar reactors, this firm would get paid a hefty commission on every reactor built...

Not just here in the U.S., but on the entire continent.

What this small company has been able to accomplish in such a short amount of time is nothing short of incredible.

And get this — they have a market cap of around $50 million and trade for roughly $0.20 per share.

If there's ever been an energy company poised to make some absolutely life-altering profits — for themselves and investors alike — this is the opportunity.

And I have photographic evidence to prove it...

Call it like you see it,

Nick

This Oil Stock is up 354% Since We Recommended It

The little-known Mongolian company we've been touting for months just struck it big...

Drilling commenced and they've hit oil — and lots of it.

Oil from an incredible source that no one had considered for years...

This is just the beginning of what could turn out to be a HUGE run. We're talking thousands of percent gains here.

Click here for all the information you need to get in on this oil outfit before its share price hits the ceiling.

Global Nuclear Energy Developments

I shouldn't have to tell you that nuclear energy has made a comeback.

With not a single plant built in the United States in the past three decades, Congress is now calling for 12 to be built as part of the Climate Bill unveiled today.

Of course, that's in response to Obama calling for "a new generation of safe, clean nuclear power plants in this country," as he earmarked $54 billion for the cause in his budget request.

These two big steps are something his predecessor was never able accomplish.

Clearly, there's big money to be made as we witness the genesis of a new nuclear era in the United States.

The nuclear rebirth happening outside our borders will only add to that sum.

From Seoul to Syria

Just last week, Obama submitted a plan to Congress calling for increased nuclear energy cooperation with Russia — a plan Bush angrily rejected just two years ago.

According to sources, "The revived deal would allow the countries to exchange nuclear energy technology, engage in joint commercial nuclear power ventures and collaborate on nonproliferation goals."

Obama — and Moscow — know that the rest of the world is rapidly pursuing next-generation nuclear technology. And they don't want to be left behind.

As you read this, 20 reactors are under construction in China. India has twelve in the works. In total, plans to build 150 reactors have been announced in Asia.

And while the U.S. is now planning 12 reactors of its own, we've yet to break ground on a single one.

Meanwhile, Russia has announced a potential plan to construct a nuclear power plant in Syria — the same country Israel bombed in 2007 for having a secret underground enrichment facility.

So even the hostile Middle East is getting in on the nuclear revival.

And for investors, that's actually where it gets interesting...

U.A.E. Stoking U.S. Nuclear Gains

In the last week of 2009, the United Arab Emirates made a surprise announcement. They had contracted a Korean-led consortium to build and operate four nuclear reactors.

The deal was worth $20.4 billion.

And just like that, the rest of the world became second-class to Korean nuclear technology.

Their brand-new, state-of-the-art APR1400 model reactor, for example, is the envy of the industry. It features built-in shields against missile attacks and elaborate safeguards against earthquake damage.

Beyond this, its 60-year lifespan is twice as long as conventional reactors. Plus it can be built relatively cheaply, and in a scant 48 months.

That's why the Korean-led team — Korea Electric Power (NYSE: KEP), along with Samsung, Hyundai, and Westinghouse — won the bidding war for the U.A.E. Contract.

And do you know who lost?

A French team composed of Areva (Paris: CEI) and GdF Suez (Paris: GSZ)... And a U.S.-Japanese team featuring GE (NYSE: GE) and Hitachi (NYSE: HIT).

Now for the part of this whole mess that could make you rich...

Right now, Korea's APR1400 cannot be imported to the United States.

But a tiny $0.25 company could soon change all that.

You see, this company quickly realized how far ahead this reactor is compared to other models. And they promptly began negotiations to become the exclusive importer.

The regulatory process has already begun.

Not only that, but they have site approval to construct two reactors in a Midwestern state.

Pick of the Litter

Now you could invest in the other suppliers of nuclear technology, but I don't think the results will have you jumping out of your chair:

Instead, you'll want to grab this small $0.25 outfit that's about to blow the lid off nuclear energy in the U.S.

Look what happens when its performance is added to the list:

Market-makers and high-up officials already know what's about to happen.

Right now, I'm embargoed from releasing the company's name... But I have an important call scheduled for later today that will change that.

So tomorrow, I'll be bringing you a special edition of Energy & Capital. It will contain the full details on this small company, its ambitious plans, and the reason this stock will surge thousands of percentage points as they corner the nuclear industry in the U.S.

This is going to be big.

Call it like you see it,

Nick

Profit from the Rare Earth Shortage

China outguessed the world...

And now we'll all pay for that dearly.

You see, years ago China recognized the extreme value in rare earth metals. So the Middle Kingdom invested heavily in finding what they could and taking control of what would eventually become limited supply.

They were smart about it.

And now China's in a position to halt all rare earth exports — reserving them for its own economic expansion — and leaving the rest of the world scrambling to meet future rare earth needs.

But we need those rare earths now. We don't have time to scramble. Rare earth resource demand must be met.

Without rare earths, technological advancements are history; the world in which we have become accustomed to living in and the way in which we work, communicate, and progress will change.

Drastically.

Making Our Oil Addiction a Thing of the Past

BP's catastrophic spill proved once again that our addiction to oil is downright dangerous.

With our need for new fuels comes a new frontier for investors of these cheaper and more reliable future fuels...

Alternative energy expert Nick Hodge has come across a company that he expects can hand you over 1,925% gains with the transportation technology that will lead the pack in clean, efficient energy.

Find out more about this company now — before the news of this transportation technology makes headlines, sending its share price soaring.

And China is very well aware of that.

The Chinese currently control 97% of the rare earth market. They know they're the monopoly... and they're about to take full advantage by sending prices skyrocketing.

Beijing is already drawing up plans to stop or restrict the exports of rare earth metals that are produced in China.

The Ministry of Industry and Information Technology is also calling for the total ban on foreign shipments of terbium, dysprosium, yttrium, thulium, and lutetium.

And other metals — neodymium, europium, cerium, and lanthanum — will be restricted to a combined export quota of 35,000 tons a year, far below global needs.

Yet, most U.S. citizens and businesses have no idea that this is even happening, nor do they grasp how this restriction could affect us.

R.I.P. iPod, Smart Phone, MacBook?

When you think of where your iPods, cell phones, computers, and electronic motors come from, consider this: China holds 97% of the materials that allow these products to function.

All China has to do is follow through and halt the export of such materials... and the whole picture suddenly changes.

Electronics would disappear from the shelves and products that depend on these materials would see prices skyrocket, possibly bankrupting the very companies that depend on these sales.

Heck, the impact alone on electric batteries and motors — and on green technologies — would be crippling.

Toyota's Prius alone depends on 2.2 lbs. of neodymium in the hybrid's electric motor and 22-33 lbs. of lanthanum in the car's battery pack. And there are still plans to double production of the Prius from one million to two million units.

But they can't build these cars if they don't have access to rare earth metals. Thus, all of that product is in jeopardy.

Why We're Trying to Become Rare Earth Independent

Congress wants to stockpile rare earth supplies. This could do to rare earth what it did to oil back in 2007, which resulted in a 10% spike in oil prices.

Members of Congress introduced a bill that could bolster the U.S. rare earth supply-chain and create a stockpile for military and tech industry uses — as its best-case scenario. This led Colorado Congressman Mike Coffman to introduce The Rare Earth Supply-China Technology and Resource Transformation Act of 2010.

Coffman's no dummy. He knows that "over 95 percent of worldwide rare earth mining today is located in China. There is no rare earth element mining taking place in North America and with worldwide demand growing exponentially the situation is only going to get worse."

The bill calls for the creation of a rare earths stockpile for national defense and encourages federal loan guarantees for companies involved in restarting rare earth supply chains.

But it's a wait-and-see situation. We all know how quick Congress is to act...

So How do You Profit from the Shortfall News?

To profit from the rare earth shortage — and Congress' stockpiling announcement — buy the companies with access to supply. They'll jump on any news of discovery.

First Gold Exploration Inc. (TSX-V: EFG), for one, skyrocketed as much as 180% after the company announced a new high-grade discovery of rare earth elements and lithium at its Éléonore Property in Northern Québec.

Hudson Resources (HUD.V or HUDRF.PK) jumped more than 140% after Denmark relinquished its sovereign hold over Greenland's mineral rights, making the country's $273 billion rare earth resource private property.

Avalon Rare Metals' (AVARF.PK) project at Canada's Thor Lake has access to rare earth metals. The stock could easily move higher this year.

Lynas Corporation (LYSCF.PK) owns a rich deposit of rare earth at Mt. Weld in Western Australia. This stock could also move higher.

Rare Element Resources (RES.V) recently completed financing and reportedly has capital of more than $12 million. And Quest Rare Minerals (QRM.V) reportedly has a big resource at Strange Lake in Quebec.

Any positive news amid China fears could send any of these stocks higher.

Double-Bag Your Investment

But while these are all good buys here (especially Hudson Resources), patient investors might also consider buying into a new rare earth IPO and an ETF.

Molycorp, owner of a California rare earth mine, just filed for an IPO with hopes of raising $350 million to restart rare earth operations. While we'll look to buy at IPO, Molycorp won't be able to meet all the needs of the United States...

And it's for this reason that you should also buy one of the other stocks mentioned above as well.

The other plays are coming ETFs.

Dacha Capital reportedly has plans to start a rare earth element ETF, where they warehouse the metals and compounds and buy/sell them.

An REE Fund which received approval from the Swiss Financial Market Authority will open on May 31, 2010. It will only trade in Switzerland, though; it will invest in companies involved with rare earth metal mining, refining, and manufacturing, according to the company's site.

While stocks like Hudson Resources remain a buy, we'll look to pick up these ETFs and Molycorp IPO in coming months.

Stay tuned for news on rare earths and profit opportunities in Pure Asset Trader.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

P.S. Rare earth metals are about to experience hyper-growth. But this sector isn't the only one about to experience a major ramp-up... Energy and Capital's own Keith Kohl is putting the finishing touches on his latest research report on an "old" oil formation with a brand-new life. Chances are, you haven't heard of this emerging North American oil play before... And you won't want to be the last to get the full story. We'll have a full report to you Thursday.