Seeking Alpha

Oil and Gas Inv...'s  Instablog

Oil and Gas Investments Bulletin
Send Message
The Oil & Gas Investments Bulletin (http://www.oilandgas-investments.com) is an online subscription-based service that finds, researches, and profiles growing oil and gas companies that have high growth rates (or high growth potential.) Its team of writers work under Keith Schaefer,... More
My company:
Oil and Gas Investments Bulletin
My blog:
Oil and Gas Investments Bulletin
  • Did Obama – And The Supreme Court – Just “Greenlight” The Most Profitable Energy Trade Of 2013? 0 comments
    Jul 16, 2013 7:58 PM

    When President Obama said this recently:

    "...The Administration supports the [EPA's] Renewable Fuels Standard, and is investing in research and development to help bring next-generation biofuels on line."

    I'm certain he had no idea...

    That he'd just "green-lighted" one of the biggest money-making opportunities in energy this year.

    And when the U.S. Supreme Court recently blocked a major challenge from the oil and gas industry...

    Which effectively allows the ethanol blend to jump from 10% to 15% (The industry's calling it E15)...

    I'm certain they had no idea they were blindly authorizing the mega fortune my # 1 energy stock is about to make.

    Because this pure play on ethanol is going to shock the Market when its earnings come out soon.

    So whatever ethanol bias you may (or may not) have... put it aside for a moment, in the interest of making money.

    You may like ethanol. Farmers and environmentalists do.

    You could hate it just the same-if you're invested in refineries (meaning soaring costs), or if you've ever seen what ethanol can do to carburators.

    None of that matters, though.

    Because - with Obama and the Supreme Court giving their collective "10 thumbs up" - my top ethanol investment is going to be insanely profitable.

    And it's a trade that's developing FAST. Their next set of financials is due out very soon. In fact, we could see another big move in the share price inside the next few days.

    So stay with me here-it's worth it. And it's a clear path to profit that is actually a lot more simple than you think.

    As I said, the President and the Supreme Court have made sure U.S. consumers will continue to buy ethanol-powered gas for their cars.

    (The Court refused to hear the case from the powerful anti-ethanol lobbies challenging a 2010 EPA ruling-And by doing so, it greenlighted the road to 15% ethanol content in our fuel.)

    But it's not just the fact that court rulings and government policy are both now very much in ethanol's favor...

    Or that Uncle Sam's regulation is now stimulating even more demand for ethanol...

    There's an even bigger case for ethanol - A Perfect Storm that's now formed - and set up an almost-perfect profit scenario.

    On one hand, ethanol inventories are extremely low right now-Just last week they were the lowest in the last three years, according to the lastest EIA reports.

    That means demand is very high (U.S. refineries must, by law, meet the minimum 10% ethanol requirement).

    On the other hand, corn prices are dropping, as the market expects a RECORD harvest year.

    So what does that mean?

    It means America needs corn. A LOT of it, to make all the ethanol that's needed.

    That's why Uncle Sam has planted its magic seeds of growth, starting with what could be a RECORD harvest year.

    Corn bushels are projected to jump a whopping 35% higher from last year, from 10.7 billion bushels to 14.4 billion.

    And of course when you have a record harvest... you see a major drop in corn prices.

    A big freefall in the corn price is already happening-from more than $7 a bushel in 2012... down to $5 today.

    Look at this corn chart:

    image002-ethanol

    See how much it's dropped?

    Here's what University of Illinois agricultural economist Darrel Good said - more than 7 months ago:

    "There will be a transition at some point from short supplies and high prices to more abundant supplies and lower prices."

    That transition is happening now-and in a big way.

    And the benchmark corn fund - the Teucrium Corn ETF (CORN-NYSE) - tells us the same thing:

    Its price just dropped to its year-low.

    So while the corn price plummets (over-supply), look what happens to the ethanol price-The ethanol futures market says it all:

    image003-ethanol

    The price has jumped up-That's from high demand.

    And that's our Perfect Storm:

    Low input price (corn) + high output price (ethanol) = incredible profit opportunity.

    It's the Perfect Set-up for my top ethanol stock pick.

    And it's an investment that's "backed" - indirectly - by both the President of the United States, AND the Supreme Court!

    In all fairness, no one knows what the long term holds for ethanol - and you can be sure lobbyists on both sides of the fence will keep spending millions trying to get their way.

    But I know that when I have an investment that gets the "Obama Bump" -

    AND the Supreme Court paves the way for even more growth for my investment...

    I'm taking full advantage in my portfolio. Obama has more than 3 years left...time enough to make a fortune.

    Best of all, this is a turnaround stock that's still priced cheaply - even though it's the one company with the MOST LEVERAGE to the corn and ethanol price.

    In fact here's the most amazing part about this turnaround stock...

    CLICK HERE TO KEEP READING

    Themes: oil and gas
Back To Oil and Gas Investments Bulletin's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.