The Need for $80 Oil

Why Investors Should Want to Pay More at the Pump


oil prices 200x300 The Need for $80 Oil This summer was an interesting one for crude prices. We didn’t see the usual summer price surge in gasoline prices that we often see during the vacation months. Think about it. Have you really heard anyone going crazy about gas prices recently ? Probably not, and you may not since many people have become accustomed to paying under $3 a gallon for gas.

Well, the market has a different agenda. Within the last year we have often seen a correlation between crude futures and the S&P 500. On Wednesday crude dipped below $75 on news that U.S supplies had risen. Gas inventories also rose. Both declines point to a lack of demand which raises questions about the future of the U.S economy.

The economics of the recent falling gas prices are simple. People are not driving as much. It could be from unemployment or the lack of taking a vacation. Both bode poorly for exchanges. From the NYSE to the OTCBB, energy related stocks seem to be stuck in a trading range. Many of you have heard this on the news or maybe even read about it in large cap or penny stock newsletters.

Now here are two questions. Would you rather pay a few more cents at the pump and have you stock portfolio and 401K go up in value. Or, would you rather pay $2 a gallon for gas and have your portfolio decline. I know most would chose the first. This is why longs need cruse to stay above $80.

The good news is this negative sentiment can change on a dime. A world event, an economic report or simply some short covering in oil futures can move the commodity sharply higher within a few days. My sense is that we will see some rally back to $80.

Now how can we take advantage of a short term bottom in oil. On the large cap side you can play it safe you can buy Exxon Mobile (NYSE:XOM). If you want to be a little more aggressive take a peek at some of the drillers. But be careful. The drillers sometimes are almost as volatile penny stocks.

Now how does a penny stock traders and investors play this. My advice is to look at the AMEX for these drilling penny stocks. There are tons of microcap energy stocks trading on this exchange. Some of these former hot penny stocks have decent liquidity too. So do your research now and compile your penny stock list. Also, remember that if your wrong take your losses quickly. Preservation of capital is the key.

1:55 am | Vanessa | Tags: , | No Comments »

Potash Rejects All Cash Bid

Does This Start an Ag Takeover Frenzy?


potash logo 300x78 Potash Rejects All Cash BidTraders who were long the Ag space woke up Tuesday morning to a pleasant surprise. Potash Corp. (NYSE:POT) rejected a bid that was slightly less than $39billion from BHP Billiton (NYSE:BHP). Potash has traded over $145 in the pre-market, which is significantly higher than the $130 bid from BHP. It seems that Wall St. agrees with Potash’s opinion that the bid was far too low.

Other Ag stocks like Monsanto (NYSE:MON), Intrepid Potash (NYSE:IPI) and The Mosiac Company (NYSE:MOS) are also trading up sharply in the pre-market in anticipation of coming takeover speculation in the group.

Ag stocks can be very volatile, much like penny stocks. They are also one of the few large cap groups that can provide the same type of high percentage gains that a rising microcap stock can. However, even though stocks like Potash have substantial earnings and revenues, they are generally traded by aggressive investors.

Today you will surely hear takeover rumors in other Ag space names on television and read them on the internet. You will surely be told about Cargill’s majority stake in Mosiac. Others will say play it safe and buy Market Vectors Agribusiness ETF (NYSE:MOO). Our advice is to be careful and not jump in right at the open. In other previous blogs we highlighted not buying gap ups on or near the open. Mainly because most times those gaps see some sort of retracement.

You may also see some limited impact on the OTCBB because of the massive Potash story and the sympathy in the group. Penny stock newsletters will surely write some reports on some Ag related hot penny stock.

Once again make sure you do some homework. While Ag valuations should be reset to the upside, it doesn’t necessarily mean that these premiums will apply to the stock that you own. Remember, good ideas on the long side happen on a daily basis. So if you miss one, it isn’t the end of the world. So for now I would form a penny stock list and a large cap list of potential Ag stock candidates. And that list should be researched and reviewed thoroughly before acting.

1:37 pm | Vanessa | Tags: , | No Comments »

Will Mining Penny Stocks Wake Up?

Goldman Sachs is Bullish on Gold


gold stocks Will Mining Penny Stocks Wake Up?Goldman Sachs recently came out with a bullish call on gold. Although many gold bugs and conspiracy theorists are calling for $2000 per ounce. Goldman’s $1300 target within 6 months should still be positive for gold stocks. Mainly because there are only four or five Wall St. firms that have the ability to change short term investor sentiment. For obvious reasons the boys at GS fall into that elite category.

The nine page report by Goldman states that gold is oversold and could benefit from quantitive easing. This potentially makes gold the main market moving catalyst again. Recently, oil has taken over as a guide to S&P 500 movement. The $80 level on oil has been a gauge for many traders decisions on whether to go long or short.

Gold going higher potentially offer penny stock traders multiple opportunities to make short term gains on the OTCBB. The price of the yellow metal can influence penny stock prices like no other commodity, mainly because of the large presence of mining stocks on the OTCBB and Pink Sheets.

For instance, Goldman also recently made a bullish call on coal stocks despite outperforming the market so far this year. They highlighted Peabody Energy (NYSE:BTU) and Massey Energy (NYSE:MEE) and a few others. Did this influence penny stocks ?
Not really, there may have been a stray recommendation here or there by a penny stock news letter, but there were no huge gainers to speak of.

This is because nothing attracts penny stock and microcap buyers like rising gold. The key is where to find these stocks that can potentially create massive gains. At this point a watch list should be put together and in addition to buying a large cap name in the gold space there is always room for a speculative name too. So stay tuned for a potential release of a gold stock from us. Hopefully we can ride the coat tails of the most prestigious firm on Wall St.

1:51 pm | Vanessa | Tags: , | No Comments »

Will These Mining Stocks Drive the Penny Stocks?

Will FCX and Copper Propel the Penny Stock Market?


copper penny stocks Will These Mining Stocks Drive the Penny Stocks?Recently we have seen a rally in copper prices, which historically indicates a rally for U.S. equities. Freeport MacMoran Copper and Gold (NYSE:FCX) has come back into favor and has always been a darling of short term traders and hedge fund managers. FCX is one of the few NYSE stocks that moves like a penny stock. Keep in mind that FCX could have a massive move in either direction. The optimism in copper prices last week leads some investors to go long equities. At this point FCX is a good of a barometer for the direction of the market as you can find.

Now if copper continues to rally the S&P 500 could close above 1120. The 1120 range is very important because there is an opinion in some circles that a break of this number will cause massive short covering. A break to the upside should spur some action in not only copper penny stocks, but to many quality OTCBB stocks as well. Now is the time to start getting prepared. One route is to start reading different news stories and compiling a penny stock list and a large cap list. Also, check out penny stock newsletters that have recommended copper and mining stocks in the past. Then break down these stocks into your top ideas. For instance, most traders are familiar with FCX, but don’t know that Southern Copper (NYSE:SCCO) and Encore Wire Corp. (NASDAQ:WIRE) move on copper prices too.

Gold stocks have been beaten up recently but have stabilized due to weakness in the dollar. So while gold and silver penny stocks may rally too, they may play second fiddle to copper related stocks for a brief period. Wheat has also rallied sharply based on the Russian drought. The stars seem to be aligned with the commodity stocks, but this market has provided us with multiple head fakes. So due your research and consider playing some low priced commodity stocks if they make sense for your portfolio.

12:48 pm | Vanessa | Tags: , | No Comments »

Stock Alert SILA

SILA – Gold American Mining Corp


gold american mining corp sila Stock Alert SILAWe have an exciting new gold play right now. Gold has pulled back 5% this month with the recovery in the markets but is still holding a strong 26% gain over the past year. Investors who don’t invest in physical gold look for the next best thing and that is gold stocks. The market is still in a bearish trend and generally when this happens gold stocks are still in play.
We have found what we believe could be the next junior miner that could be making major headlines.

We want everyone to put SILA (Gold American Mining Corp.) on your radar immediately.

This is a company that has made some very big moves lately and has pulled back nicely. Last week the stock moved from $0.80 to $1.16 (about 45%) and I’m expecting we could see a move like this again early next week.

According to Emerging Stock report SILA has Support at $1.03, with resistance at $1.15. There has been a lot of accumulation at higher levels which typically means there will be little resistance in the stock until investors reach the breakeven level.
We could see a nice pop and some momentum before we see any heavy selling.

SILA is extremely liquid right now. The average volume over the past two weeks has been 800k shares.
Recent activity has pushed the market cap to close to $80 million!!

Every mining company has to have adequate funding in order to pay for drilling operations and the extraction of minerals from the ground. Right now it is estimated that SILA is sitting on an estimated $8.5 billion worth of gold and silver combined on their Mexican and American properties.

This would mean nothing if they did not have sufficient means of pulling it out of the ground. SILA secured a 2-year, $7.5 million equity financing agreement with ZUG Financing Group S.A. in May:

The ZUG group specializes in backing precious metals and mining ventures. This incredible news will keep Gold American busy the next 2 years, in continued development and exploration of their Mexico and Nevada properties. In all, the deal could represent $10.75 million in funding over the next 2 years if the company assumes the full execution of the attached warrants.

SILA’s main property is located in Mexico. The 698.91- acre Guadalupe property in Mexico contains two historically significant mines, and is only about 5 miles north of the Fresnillo Mine, which is the world’s richest underground silver mine. That mine produced over 24,000 ounces of gold in 2009 alone.

Mexico’s mine production of gold increased 10% from 2008 to 2009, and is now the third leading exporter of gold into the US. As exploration and development in Mexico has picked up, SILA has made a timely move to expand their production. The field surveys confirmed the project’s significant potential by returning several high-grade silver results.

SILA’s 2nd acquisition, The Keeno property in Nevada could potentially contain 1.1 million ounces of gold, and 69 million ounces of silver.

It is obvious that The Street is bullish on SILA right now. We have seen tens of millions of investment dollars being thrown at SILA in the open market. We have traders looking to take small profits but it also looks like there is a core of longer term investors waiting on SILA to start the extraction process.

SILA looks great both longer and shorter term right now. Make sure to start your research immediately.
Make sure you visit www.gold-american.com.

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2:20 pm | Vanessa | Tags: , | No Comments »

Lithium Mining Companies

Lithium Stocks


There is little doubt that lithium could be the “mineral of the future.”  The demand for lithium is already high because of its use in cell phone batteries, laptops and most importantly car batteries for hybrids.

So how will this effect lithium penny stocks?

It is projected by the National Highway Traffic Safety Administration that hybrid cars will be 20% of the U.S. auto market by 2015 (keep in mind this is just the U.S.).

Deutsche Bank estimates that the lithium-ion battery market will hit $15 billion this year and $40 billion in the upcoming years.  This is all due to a surge in electric cars.

A123 SystemsA123 Systems plans to spend $2.4 billion to build factories to make enough lithium-ion batteries for approximately five million hybrid vehicles by 2013.LG Chemical

LG Chemical will build 10,000 400 pound lithium-ion battery packs for the Chevy Volt in the first 12 months of production. The plant will eventually bang out 60,000 annually.

These are just a few car stories.  Mercedes, Nissan, Chrysler, BMW, Ford, Jeep and Chinese auto giant Hafei are all pumping out hybrids.  In total over 75 new hybrid makes will be available in the next year.

The demand for lithium is surging!!

“Going Green” seems to be trendy now.  Not only that, but people are getting turned off by high oil prices… especially in the summer driving season.  Economically hybrid cars are a no brainer.

Lithium made the news in a big way last month when there was a huge discovery by U.S. geologists in Afghanistan that could equal about $3 Trillion worth of what is being called the “new oil.”

The gas engine made petroleum the most in-demand commodity in the world.  Although it is going to be tough, the electric car definitely has the potential to do the same for Lithium.

Demand for Lithium is expected to grow 16 times with this surge in electric cars.  World Governments are investing billions into lithium production.

There are a few companies that are going to benefit from this boom.  We have profiled a few lithium penny stocks before and have seen decent gains.  Penny stocks are predominantly news driven.  Any one of these small cap companies has the potential to sign a huge contract that could potentially increase revenues by millions.  That could turn any junior miner into a force over night.

We are definitely going to see some speculative money going into small cap lithium companies.  We have seen penny stocks surge on huge contract signings.

Definitely keep lithium on your radar and watch for small cap companies that could benefit.

2:23 pm | Vanessa | Tags: | No Comments »

How the BP Oil spill affect Penny Stocks

BP Stock Price and the affect of the Oil Spill


BP LogoWe all know that every time there is a worldwide event, investors have a chance to capitalize and make money in the markets, especially when it comes to an environmental disaster.  The news bring a lot of attention to the stock market. It happened with the Exxon Valdez and Katrina. Now it’s happened again with larger companies like British Petroleum (BP), Transocean Ltd (RIG) and Halliburton (HAL) have been punished. Every time an event like this happens, several penny stocks come into play.  Shares of MOPN took off after they received a purchase order from BP for their MOP Maximum Oil Pickup product.

Other penny stocks like EVTN and EVXA also received a large amount of attention from the environmental disaster.  All of these companies instantly became hot penny stocks.  You should throw these three companies on your penny stocks list and keep an eye on them.  Many investors will try to buy familiar names that historically react favorably oil spills. Longer term investors may buy companies like MOPN and EVTN and are hoping for a home run while penny stock flippers and day traders step in and provide constant liquidity.BP Oil Rig Explosion

In the end though only a select few of these names actually benefit from these disasters financially. Only a few contracts are actually given out, so be selective.  Keep in mind that profit might be short lived so be prepared to take a quick scalp. Once again the key is being prepared. You need to know which stocks move based on an event. So have your lists of blue chips, mid-caps and penny stocks ready, and be ready to pull the trigger.

11:10 am | Vanessa | Tags: , , | No Comments »

Penny Mining Stocks – Lithium Penny Stocks are Winners

Our 2 Biggest winners AMEL.OB and AMLM.OB


Today let’s talk about what is relevant in the news.  If you have been subscribed to our newsletter for a while, then you already know that we have had some huge mining plays.

Two of our biggest winners in the mining sector were lithium penny stocks.  Amerilithium Corp (AMEL.OB) and American Lithium Mineral (AMLM.OB) both took off after we profiled them.  Now both of these penny stocks may be impacted by what I have to say.

Mining Penny Stocks

Lithium Penny Stocks

Lithium is going to be in the news in a big way today.  There has been a massive lithium find in the most unlikely of places…… Afghanistan.  Experts are saying that the lithium find could be valued at over $1 trillion dollars.  They have already nicknamed Afghanistan the “Saudi Arabia” of lithium.  Lithium is used to make lithium-ion batteries which power everything from cell phones, to laptops, to automobiles.  Many years down the road we may see lithium surpass gasoline as the #1 energy source to power vehicles.

The only problem is that they are probably many years out from taking any lithium out of the ground.  U.S. Geologist also uncovered huge veins of iron, copper, cobalt and gold in addition to lithium.  Afghanistan is still a war zone and no companies have laid claim to the rights to extract the lithium.

Keep your eye on this story.  While you probably won’t see an impact today or tomorrow, this story is going to have a huge impact on the mining world.  Afghanistan could become a huge mining hub and this find could transform their economy.

The key question here is who will profit from this situation?  Which companies that are penny stocks now, will eventually explode a result of this massive lithium find?

Someone is going to make a fortune here.

This is just a heads up to all of our subscribers that we will be coming out with a new alert towards the end of the week.  This is going to be a massive penny stock play with great potential

2:47 am | Vanessa | Tags: , | 4 Comments »

Will Silver Boom in the Next 12 Months?

Record Sales for Silver American Eagles


Yesterday we talked a little bit about gold and why gold is a safe investment.  If you are more of a speculative investor, we showed why your normal blue chip gold stock doesn’t explode when the price of gold moves.

Penny Stocks that are in the mining and exploration sector very rarely with move with the price of gold or oil.

Penny Stocks are news driven.  The past few weeks we saw some penny stocks move on some speculation and contracts tying these companies to the Gulf of Mexico oil spill.

I look at penny stocks and read financial websites roughly 8 to 12 hours a day.  This is my life.  I know the world markets inside and out.  I concentrate my efforts on otcbb stocks because with the right research they give you the greatest opportunity for massive gains.

While I was doing my research and trying to locate the next hot penny stock, I couldn’t help but notice all of the buzz about silver.  Silver stocks are becoming more attractive to investors who feel that they may have missed the big spike in gold.

Silver is a great alternative to investing in gold.  We saw the spot price of silver jump 4% the other day.

Silver American Eagle

Investing In Silver

The U.S. mint just announced record sales in the month of May for Silver American Eagles.  They sold an astounding 3,636,500 units.  There is no doubt that the demand for silver is on the rise.  Take a look at what I have discovered after reading a few other financial publications.

The U.S. investment demand for gold is only 3.66 times higher than silver if you base it off of American Eagle Sales.  The total above ground inventories of gold is valued at $2.44 trillion.  While the silver inventories are worth a mere $17.4 billion.  This would mean that the worlds above ground gold inventories are valued at 140 times more than the silver inventories, yet the demand is on 3.66 times greater?

I feel that we could see a huge boom in silver over the next year. You have three ways to invest in silver; bullion, stocks, and minted coins.

I am currently researching all of the junior mining companies to find the next great small cap silver company.  If I come across anything, I certainly will release it to all of the subscribers on the site.

I will be releasing a new penny stock pick on Thursday night after the close.  Make sure that you are signed up on the email list so that you can get it before the market open.

11:20 am | Vanessa | Tags: , | No Comments »

Trading Gold On Market Fears

European Weakness Spurs Investors to Trade Gold


Trade GoldYesterday we talked about some of the advantages of investing in penny stocks.  We showed you how small cap stocks are outperforming both the Dow and the S&P 500 over the past year and change.

In gold trading prices broke $1250 an ounce. We have seen it cruise to an all time high today. Investors are overwhelmed with fear. The Euro got destroyed yesterday and is current sitting at 1.19 vs. the U.S. Dollar.  The Euro hit a 4 year low yesterday of $1.18.

When the world is in financial turmoil and currencies are diminishing, gold becomes a safe haven for investors. A massive spike in gold prices, like we saw on Monday, represents a world wide panic in the markets.

Gold Trading

Trade Gold

Traders and hedge funds are swarming into gold. Spot prices are starting to move rapidly. Many retail investors are also jumping into gold because the feel like they could miss the next leg up.

Gold stocks are moving modestly and we have seen several penny stocks surge over a 100% for the day today.

While gold stocks are usually good stocks to buy and a much safer investment, penny stocks offer a little more volatility.

You are not going to see gold stocks up huge when the price of gold spikes.  What moves gold stocks north is news.  Mainly new discoveries, drilling results and acquisitions.

News is what also moves small cap stocks.  Generally penny stocks do not move with the market although general market conditions do have an impact on how much someone is willing to risk.

Later this week we are going to have some penny stock picks posted on the site.  Keep checking back later this week for some more stock research!

12:46 pm | Vanessa | Tags: , | 1 Comment »