Four Opportunities in Oil & Gold Stocks of 2010

Since 85% of investment success is being in the correct asset class, the first step in navigating the 2008 recession and the investment minefield in its wake is knowing which asset class to be invested in.  With a subscription to Professional Timing Service, you will learn how to determine the best asset class in less than one minute a month ... but let me come to the point.  The best asset class for 2008 is tangibles or real assets - commodities and those top stocks for 2010 that are advantaged by higher commodity prices.

Opportunity #1 – Buy Gold!

 

One year ago, I pointed out the exceptional opportunity to buy gold at that time.  My technical work - including our Simplicity gold timing model coupled with a rare technical chart pattern - was screaming that gold was going to appreciate well beyond its then price of $640/oz. over the ensuing 12 months.  As gold challenges the $1,000/oz. level, all of the previous bullish reasons to buy gold remain unchanged, and there are a couple of new ones.

WHY BUY GOLD?    Gold is underbelieved, but it is finally gaining serious investor attention.  China still wants to be a global player.  In order to come up to speed with the rest of the central banking world, it is estimated China needs to purchase 2,000 to 3,000 tons of gold.  China's sovereign wealth fund has over $1 trillion to invest, and it has been stockpiling commodities - including gold - all the while the Chinese and Indian middle classes have been accumulating gold like mad. 

Deep problems are developing in the U.S. credit markets.  The housing industry is crashing while debt problems are infecting the general economy.  Consumer demand is beginning to suffer.  Consequently, the U.S. is entering a recession that may well last longer and run deeper than most think.  The average citizen is being hoodwinked about the seriousness of these problems by media sound bites while the purchasing power of their dollars dwindles.  However, knowledgeable investors are not so easily distracted, and gold is becoming more enticing as a financial safe haven and inflation hedge. 

One thing you can count on is that as long as the Fed continues to push interest rates below the true rate of inflation and balloons the money supply, gold will be attractive as an inflation hedge.  While demand for precious metals is increasing on a global scale, supply is being severely curtailed due to played-out reserves and South African production being shut down for a lack of power.  South African mines will not be up to full production again for several more years, and they account for a full 20% of the world's gold supply.   

At the root of it all - underlining gold's continued advance to $1,600 is the declining value of the U.S. dollar.    Essentially, when you see some high school kid get a multi-million dollar contract to play basketball, you know that your dollars are becoming worthless.  As the U.S. dollar falls, gold will rise; and the dollar is about to be taken out and shot ... again.

With your one-year subscription, you will receive a copy of our now classic booklet "Timing Gold With Simplicity." You will learn why gold will run at least to $1,600 - easily  doubling its 1980 high - and why the commodity bull market still has seven years to run.  You will discover why the commodity boom will not be stalled by a U.S. recession.

The Fed's response to the recession is providing the fuel for the commodity bull market, as well as the inflation that goes along with it.  As long as the Fed holds interest rates below the true rate of inflation, inflation will continue to rise and the dollar will continue to fall.  This will encourage foreign governments like China , Iran , etc. to shun U.S. dollars.  The dollar weakens, gold rises, and the cycle goes on.   

In your special gold report "Timing Gold With Simplicity," you will learn why crude oil selling at $100 a barrel virtually guarantees $1,600/ounce gold.  You will also learn to use and keep a powerful indicator called "Simplicity" that will tell you when to sell as well as when to buy precious metal mining stocks for 2010.  This simple, but effective, indicator last issued a buy for gold stocks last summer.  Subscribers will be alerted when it triggers its next sell.  In 30 seconds a day, you can easily keep this powerful model on your own.

What to buy now?  We are constantly reviewing which precious metal stocks offer the best risk-to-reward potential.  We discuss each of them, along with specific buy prices, in the Professional Timing newsletters.

My current favorite is Yamana (AUY-NYSE).  ProTiming subscribers bought Yamana in April 2005 when we initially recommended it at $2.90.  It was a little "up-and-comer" when it was first included on our list of junior mining companies.  Yamana has since progressed from an upstart to a medium-size producer, turning out about 400,000 ounces of gold each year - and significant copper as well.  Yamana will see even better times in the future, and we have elevated them to our master list of core investment recommendations. 

If you do nothing but discard this missive, put a few dollars into Yamana (AUY-NYSE-$12.50).  Don't chase it.  Timing is of vital importance to long term investors.  Our approach is intentionally conservative, and part of that conservatism is managing risk by paying attention to what we pay for our long term investments and when we make those commitments.  I tell subscribers exactly what they should pay for each best stock for 2010 I recommend. 

We bill our list of select junior mining companies as "The Option Alternative" because these companies, although speculative, beat buying call options 100 to 1.  Two of our earlier picks (including Yamana) have already grown up, and the more mature miners and medium producers like Yamana will continue to do very well as gold moves toward $1,600.  However, our juniors hold exceptional promise as they are all potential Yamanas. 

My favorite junior is a little company we originally purchased at C$1.20.  It is still in buying range and has the potential to become our next Yamana.  Most of the juniors on our list sell for less than $5.00.

"Recent Hulbert Financial Digest highly rated your letter for gold stocks and bond trading. Congratulations!!!"  G.K. 3/24/07

We are not at the bottom of the gold market, but we are nowhere near the top either, and the public has not even started to climb aboard yet.  The low-hanging fruit is difficult to find in the metals, but we are guiding our readers to select new, mega-potential opportunities with each issue. 

The most exciting event I see ahead is the buying opportunity that the current correction in precious metals is leading to.  We are closing in on the next Simplicity buy signal, and it may well mark the best buying opportunity in precious metals that we have seen for several years. 

Why not give yourself Professional Timing today?  You will receive monthly and mid-monthly letters plus access to twice weekly online updates.  Discover why gold is set to reach $1,600 within the next 18 months.  You will learn about specific gold stocks that are poised to double, or more - ones that will provide you with a hedge against further erosion of the U.S. dollar and will help you build your estate. 

With your subscription to Professional Timing Service, you will have access to a free special report: "Timing Gold With Simplicity."  You will learn why gold will run at least to $1,600 easily doubling its 1980 high and why the commodity bull market has at least seven more years to run. Subscribe now and find out where the best opportunities lie in precious metals before the next big move begins.

Opportunity #2 – Buy oil … but not just any oil.

Here is a little secret for you that the pros are not willing to discuss.  It is this: next to precious metals, crude oil is as close to a slam dunk investment as you will ever find in the markets.  However, with oil reserves dwindling - and in some cases declining alarmingly - investors have to be wary of how they invest in the rising price of crude oil.  Did you know, there is only one major oil producer worth owning?

 

Crude oil is heading to $160/barrel, and you need to invest for that now ... but investing for $160 crude is not straightforward.  What good is investing in a producer if they run out of oil, no matter how high the price of crude is?

 

There is only one major oil producer you should own, and it is discussed in our latest report "Slam Dunk Investing For $160 Oil."  This report will teach you how to avoid the pitfalls of investing in the wrong companies, and it's included with your one-year subscription.  For example, the majority of the Canadian trusts will not keep up as crude hits $160.  There are exceptions, and you will learn how to select those that will continue to perform after the Canadian trust tax takes effect in 2011.

 

On the other hand, you will discover plenty of companies that will benefit from higher priced oil, without the need to produce it.  Our two most recent recommendations are up an average of 27.6% already.  We bought them only three months ago, and they are just getting started.  Some of the energy companies on our list pay handsome dividends.  One, a Norwegian company, pays a regular dividend of about 4.6% as well as frequent extra dividends.  Over the last 12 months, they paid out a total of 15.8% based on today's price, and the best stock has appreciated 75.3% since we purchased it a little over a year ago.

 

Opportunity #3 – Don't invest in bonds.

What sort of opportunity is that, you say?  It is an opportunity to save yourself from horrible losses.  If you need liquidity, put it in 3-month T-bills - yes, at 1.30%.  Furthermore, don't take your money market fund for granted - especially if it pays much over the current T-bill rate.  You need to be conservative with your cash.  It will only take one defaulted money market fund to create a run that will make the run on the banks in the 1930's look innocent.  

Where to put your fixed income money?  I like the safety of T-bills and other government securities like TIPS.  Subscribe today, and I will also send you "Buying Treasuries In The World's Most Secure Investment Account."  Subscribers tell us that this easy-to-follow guide alone is worth the price of their subscription.

It is too late to buy long term bonds, but it's not a bad time to sell them.  You shouldn't have long term money invested in bonds, but you can certainly trade them if you like.  As a subscriber, you will have access to all of our bond trading signals.  

Opportunity #4– Get the heck out of the stock market.

This is a negative opportunity also, but it's no less important than the advice to stay out of bonds.  With the exception of a few select, hard asset related issues (which you will quickly learn to identify), it is time to take profits in stocks.

The hot stock market for 2010 is vulnerable to further selling as the sub prime and real estate mortgage problems push the economy into a recession and investors to safer waters.  The most recent flight out of stocks began last October, and there are more panics coming.  The ultimate flight to safety into tangible assets - with gold and crude oil taking the lead - has already begun. 

Subscribe today, and you will receive another Special Report report "A Handbook For The Perplexed."This report will introduce you to several simple, but invaluable, tools you can employ to better navigate the markets on your own.  Among these tools, you will learn how to use a simple ratio to identify the correct asset class that you should be invested in.  It will take you less than one minute a month. 

Being invested in the right asset class accounts for 85% of investment success, and we are currently recommending stocks and specific mutual funds that you can hold and profit from, even in a bear market.  Our special report "Timing Gold With Simplicity," which you will receive with your subscription, includes three gold stocks poised to explode on the up side.  There have been big movers like Yamana, but my current recommendations are still cheap and undiscovered.  The most recent is a long-established mining company. It's incredibly cheap, and it's beginning development on the largest gold deposit in the world.

"I looked into and actually took trial memberships in a couple of other newsletters, but I must say, yours really is the best. After a few months of this, I'm a believer in your newsletter service."  KM 12/21/07

With the exception of a few select resource-advantaged issues (which we will point out), it is time to take profits in stocks and other financial assets. The stock market's prospects are downright ugly.

Isn't it time you gave yourself Professional Timing?

Investing Is About Tomorrow – Not Today.

Every portfolio should have a stake in gold ... and energy.  The first step is to anchor your portfolio with precious metal issues.  The second step is to take advantage of the slam dunk opportunities in selected energy investments. 

Why don't you take this opportunity to give yourself Professional Timing?

"My hat is off to you. I don't believe there is another analyst existing that has a handle on gold bullion and the stocks like you do. You have achieved all the downside buy targets that I hold (8 gold stocks), and the action of the bullion is just about perfect."
--M.D. 4/13/04

"I like several letters that I take, but what is unique about yours is that you tell us not only what to expect in the future, but what to do right now."
--D.B. 5/28/05

"Recent Hulbert Digest (January '07 Performance Rating) highly rated your letter for gold stocks and bond trading. Congratulations!!!"  G.K 3/24/07

What you will receive with your subscription to Professional Timing Service:

* Monthly newsletter and mid-monthly updates.

* E-mailed mid-weekly updates on Tuesday and Thursday.

* Exclusive access to our "Special Reports" folder that includes all of our current studies.

* Signals telling you when to be in and out of gold funds, including the Rydex Precious Metal Fund.

* Objective signals on trading the U.S. Dollar Index, bonds, and the Nasdaq.

* Income-producing energy investments that put the dollar to work for you rather than against you
* Sane and sensible information that will assist you in managing your financial future.

Every subscriber will have access absolutely free to "Timing Gold With Simplicity".  I want to show you how to put this simple indicator to work for yourself – you can become your own advisor.

Each monthly letter includes our updated list of what stocks to buy now and what price you should pay for them.

Subscribe today and you can immediately gain access to all of the ProTiming Special Reports including "Buying Treasuries In The World's Most Secure Investment Account," "A Handbook for the Perplexed," as well as "Slam Dunk Investing for $160 Oil."  You will discover how to exploit the rising energy prices for generous income and capital gains. "Timing Gold with Simplicity" will give you a firm grip on the gold market.  As well as discovering our projections for gold and silver through the balance of this year, you will find out how to keep a simple indicator, taking less than 30 seconds a day, to time your purchases and sales of gold shares.

The Real Story Behind the True Gold Bull Stocks Market

Alan Greenspan stood before the House Committee on Banking and Financial Services and said, "Central banks stand ready to lease gold in increasing quantities should the price rise."

That is exactly what the gold carry trade consists of. It is the process in which central banks lease out gold bullion to be sold on the open stocks market to suppress prices.

Here's the thing: The large majority of these transactions take place on the London Bullion Market (LBM). This is an over-the-counter (OTC) market in which there is little-to-no transparency. A number of organizations have conducted studies on the amount of gold lending that takes place. Some of the organizations include Gold Fields Mineral Services (GFMS), the World Gold Council (WGC), and Virtual Metals (VM). As a result of the lack of transparency, the numbers reported in regard to gold leasing vary slightly from one another. For the sake of argument, I will be using the most conservative figures reported.

This may be the most significant piece of the gold bull puzzle that will push gold to $2,000 and beyond. I will dig in and share my in-depth research with you, starting with how the process is carried out, then going into the 2010 stock market impacts of the gold carry trade, and concluding with the future of the market for gold leasing.

How Does the Gold Carry Trade Work?

Gold leasing takes three different forms: direct leasing, central bank swaps, and forward hedging.

Direct Leasing

I am going to run through this in a simple step-by-step process. Central banks don't directly take their bullion to the 2010 stock market and lease it out. They use a vehicle called a bullion bank (BB).

Although bullion banks are numerous, some of the more well known are Barclays, Goldman Sachs, JP Morgan, Bank of America, UBS, and Citibank.

The central banks loan gold to the BBs at a rate of approximately 1%. The BBs take it to the LBM and sell it on the open market. The BBs take the cash from selling the bullion and in turn buy Treasuries.

So if the story were to end here, the bullion banks would just walk away with a net 4% return. But it doesn't end, because they only have the leased gold for a certain length of time. They eventually have to give the gold back to the central banks, but now they are at risk of price swings in a very volatile stock market.

The answer to their problem is to go long the futures hot stocks market. Essentially, they buy futures contracts to hedge their risk. In other words, they secure gold for delivery at a specific price, on a specific date in the future. Once they buy their futures contracts, it doesn't matter what the price action of gold is.

In a perfect scenario, after the gold lease rate and price risk hedging, the bullion bank will walk with a modest 1–2% gain. The central banks will receive a return on their gold, keep the price of gold suppressed in order to keep real inflation suppressed, and get a boost in the demand for Treasuries. It's a win-win situation for both the bullion and central banks.

Gold Swaps

Gold swaps are very similar to direct leasing. The difference is that gold swaps usually take place between two central banks. These types of transactions occur in two different forms.

The first is very simple. Essentially, two central banks swap gold reserves and then carry out the action of direct leasing of each other's gold. The reason for this is that it just adds more confusion for the accounting of the leased gold.

The second is slightly different. This transaction occurs when one central bank exchanges gold for currency with another central bank. Like gold leased to the BBs, a future date and price are set for the redelivery of the gold back to the initial central bank.

The IMF says of this type of gold swap, "Typically, both parties will treat the transaction as a collateralized loan." Or the CB leasing the gold doesn't remove the gold from its balance sheets, and the CB receiving the gold doesn't add it to its balance sheet. As far as accounting goes, no transaction has even taken place. The gold market is flush with new supply and would beg to differ that a transaction hasn't taken place.

In other words, the CB receiving the gold loans it out on the market while it is still on the balance sheet of the initial central bank. One might refer to this practice as double-counting the reserves.Forward Hedging

Forward hedging is a form of gold leasing practiced by gold producers. The most famous of these is Barrick Gold, but there are many other producers who partake in forward hedging.

Forward hedging is when a producer presells gold on the spot market that has yet to be extracted from the earth. Most of the buyers want delivery of physical gold. So the producer leases gold from a CB, with the idea that it will pay the CB back with future production.

The problem is that these producers often sell their gold at suppressed prices on the spot market and they often sell more gold then they can produce.

On the note of Barrick, did I mention that it has recently been sued for price fixing and price manipulation of the gold market? Barrick and its bank JP Morgan have admitted to price manipulation and that they have worked with the central bank in this process.

Implications of the Gold Carry Trade

The gold carry trade has one main goal, and that is to add huge amounts of supply to the market in order to suppress the price of gold. Although there are other added bonuses along the way for the participants, the main reason for suppressing the price of gold is so the world doesn't know the true value of worthless fiat currencies.

I would like to use some statistics to inform you as to the implications of gold leasing on the market for gold. Remember that I will use the most conservative numbers I could find.

In 2005, according to GFMS, gold leasing was estimated to have added 2,970 tonnes of supply to the market. In that same year, jewelry demand was 2,700 tonnes, world investment was 736 tonnes, and official central bank sales were 656 tonnes. Over the last 10 years, average mine production has run at an estimated 2,500 tonnes per annum. So the amount of leased tonnage exceeded all of the above-mentioned statistics.

Remember that central banks are not required to report at all on their transactions of loaned gold. So those 2,970 tonnes of extra supply were also counted in central bank reserves, or they were double-counted.

Central banks are the largest holders of gold tonnage, estimated to have around 30,000 tonnes. So they have loaned out approximately 10% of their total reserves.

How Long Can This Go On?

If you are looking at this in a practical way, you probably came up with the exact questions I did when I first started to read about the gold carry trade. When the gold enters the market via a BB, it all has to be bought back at the end of the lease contract. Doesn't that put us back at square one with the amount of supply in the market negating any long-term implications?

The answer would be yes if there were just a couple of transactions. But there are several gold leasing contracts signed every day. All the supply is constantly being recycled in and out of the market and there is always fresh gold being leased into the market.

The length of a gold leasing contract can extend anywhere from one month to several years. This allows for the central banks to analyze these markets and best time their transactions and how long they will be, in order to suppress the price of gold.

So can this go on forever? Definitely not, and the implications of the gold carry trade coming to end will bring with it the most spectacular price actions ever seen in the gold market.

Let me tell you why the gold carry trade will not be sustainable forever. It's very simple. All we have to do is look at the step where bullion banks have to buy back the gold sold on the spot market in order to pay back the central banks.

In order for this to be profitable for the BBs, the price of gold has to experience very limited gains during the time the gold is leased out. Or the price of the futures contract purchased by the BB has to be near enough to the price of gold when the bullion bank initially unloaded the leased bullion on the spot market. If the price of gold heads too high, it will not be profitable for BBs to partake in being the intermediary for such transactions.

All we have to do is look at the fundamentals for gold and we realize very quickly that the price of gold is definitely going to go higher one way or another, which will disallow future leasing in the gold market. You are probably well aware of the fundamentals: Every one of the major economies of the world printing money at a rate of over 10% per annum; the Mount Everest of debt from both budget and trade deficits; an inevitable recession here in the U.S.; the inability of the U.S. to raise interest rates, due to the complete mess of the housing market; rising energy costs putting downward pressure on the U.S. dollar and increasing inflation in every other aspect of the economy; mine supply at historic lows; a possible U.S. policy that would include trade protectionism against China; and, last, but definitely not least, a U.S. Federal Reserve whose main goal is to create credit by keeping interest rates below the rate of inflation (negative real interest rates).

Fundamentals are fundamentals, but there has been some action in the International Monetary Fund (IMF) recently on this very topic. Before I go any further, I just want to let you know that I don't trust the IMF any further than I can throw it. And I don't really expect any timely results from its actions. What is important is that the notion of the gold carry trade is coming forefront. Here's what's going on in the IMF.

Hidetoshi Takeda of the IMF's statistics department recommended in early 2006 that all loaned gold be excluded from the central bank's reserve figures. The IMF's committee on reserve assets considered Mr. Takeda's paper and came to the conclusion that a new definition of gold reserves excluding loaned gold needs to be officially documented. It also stated that unallocated gold loans should be disallowed. Nothing recommended in Mr. Takeda's proposal was rejected. Full details of his report can be read here: http://www.imf.org/external/np/sta/bop/pdf/resteg11.pdf

The IMF continued its research regarding the issue and made another report with a similar conclusion. What does this all mean? Well, the IMF is currently working on another official proposal to be worked through the system making it necessary to make all loaned gold public information and to exclude loaned gold from reserve accountings. The IMF currently "encourages" central banks to record gold loans/swaps, but does not "require" the recording.

If everything goes perfectly, and I don't believe that it will, we could see these actions implemented by the IMF at the end of 2008. As I said, it seems like a far reach, but the more people become aware of the gold carry trade, the sooner it will come to an end. And I don't like to put my bets on the IMF to make progress with in the accounting of leased/swapped gold, but it DOES have the power to change how central banks report the reserve holdings of gold.

The eventual unwinding of the gold carry trade, whether it be from the IMF or just market fundamentals, will bring amazing action to the gold market. Remember that gold leasing didn't begin until after the precious metals run from 1979–1980. For the bull market in gold to continue, it will need to overcome the barriers set by central banks' leasing of gold. But when this does occur, the floodgates will open and we can expect to see the price of our favorite yellow metal skyrocket.

Insiders Sell the Top Stocks

Green shoots or yellow weeds. That's the battle being waged on Wall Street these days.  However, for the people who should know the answer to this eternal question the verdict is already in.

According the "insiders" now is the time to sell top stocks-not buy them.

That's because according to InsiderScore.com, CEOs, directors and senior officers have accelerated their sales to the highest level since June 2007, two months before credit markets froze.

In fact, insiders of S&P 500 companies have been net sellers of their own top stock for the last 14 weeks even as the broader markets have delivered the biggest stock rally in 71 years.

"If insiders are selling into the rally," Joseph Keating, the chief investment officer of RBC Bank said, "that shows they don't expect their business to be able to support current stock-price levels." Instead he told Bloomberg, "They're taking advantage of this bounce and selling into it."

That is something to keep in mind as you break out the magnifying glass to search for those green shoots.

After all, to quote an old Englishman, lilies that fester smell far worse than weeds.

A few weeks ago, we launched the "Fifty-Trade Gauntlet" with one goal in mind...

... to give investors like you the opportunity to challenge us and put our research to the ultimate test - absolutely risk free... even put ourselves on the hook for $2 million if we can't deliver!

In fact, it was so popular that even in this market, seats rapidly sold left and right!

The good news is that there are still a handful of spots open.

And even though the deadline has passed, because of a flood of opportunities Ian sees opening up , we're reopening enrollment for the "Fifty-Trade Gauntlet" until the last few spots are claimed!

That means there is still time for you to join what is already looking to be the most profitable circle of investors this year!

But I have to admit, you'll need to hurry.

Since we first invited you to enroll in what could be the most aggressive offer we ever made, investors have been securing their seats left and right. And time to join is rapidly running thin.

Not that anyone who's already claimed their seat is complaining...

Thomas B. wrote us less than 24 hours after the "Gauntlet" started:

"Wow. Joined yesterday and bought FAS call at $2.00. Got the alert today to sell half. I chickened out and sold all at $3.10. No worries as I will take the 60% gain and wait for Ian's next move. Holy am I impressed!"

Then, on Tuesday, April 14, 2009, within minutes of Ian closing another trade - open for only six days and pulling in 338% gains - even more started pouring in.

Richard G. was among the first:

"Thanks for the great recommendation Ian! Waited patiently on an entry point and got in at $2.69 last Thursday, and exited half my position this morning for a hefty 346% gain! Paid off my subscription fee plus a whole lot more! Can't wait for our next new opportunity!"

... And this one came in a minute later from Mark C:

"I almost hurt myself doing a double-take when I glanced at the daily profit & loss column of my trading software this morning. The profit I made on a small position in DNDN has paid for the subscription for years to come! I bought the options at $1.01 and sold at $6.60. Those are the returns I like to see. You're spoiling me, keep it up!"

They were just two out of the dozen or so that poured in immediately after Ian closed his latest trade in the biotech sector.

It was a play hardly any trader caught - even highly talked about financial celebrities that did see it shunned it. Yet this "no-brainer," as Ian would call it, rapidly turned every $5,000 into more than $21,900!

It's just 1 of the 64 similar big winning plays he successfully uncovered since May 2008... totaling 4,343% in gains since he launched his market-crushing advisory!

And that's the way it should be!

In fact, Ian's so confident that he'll find dozens more over the next few months that we've decided to up the gains for you - or cough up the dough!

But this offer's only good until the few remaining seats are gone.

In all honesty, considering how fast they've been going, today could be your last opportunity to challenge us. But I can promise you this:

If you do enroll and we don't hand you 50 double-digit trades by Tax Day, 2010, $1,000 is yours. It's that simple.

I know it might seem a little ballsy - given the market's volatility - but from our perspective, not only do you deserve a guarantee that strong, it's a "dare" of sorts that we simply can't lose!

You see, Ian has a few tricks up his sleeve to uncovering these gems for you. In fact, that's how...

Ian's Already Opened And Closed 84 Trades For Investors Like You... Since May 2008

That's right. Since May 2008, even as the market continued to crumble, Ian's opened and closed 84 trades... 64 of which have been double-digit winners!

Read that again: 64 Double-Digit Winners! Here's a list of the latest ones...

In fact, each of his plays - winners including losers - averages a 82% gain!

And here's the biggest kicker, his tight-knit group of investors (of which I'll show you how to become a part of) only holds each one of these trades for about 11 days.

Sometimes... like when he issued a put on Morgan Stanley for a rapid 71% gain... it's a matter of hours.

That means on average, his investors more than triple their money every 30 days!

In other words, imagine turning $5,000 on March 1st into $18,619.38 by April 1st.

Honestly, I can't think of a single other investment opportunity on the planet that could deliver those gains... especially in today's unpredictable market.

His latest closed trade, for example, a biotech company called Dendreon just went absolutely ballistic!

That's an official 338% gain - inside of six days!

And according to Ian, thanks to the crashing of more institutions by the day, he's finding more and more of these knock-em down winners than he knows what to do with.

And in just one minute, I'll show you exactly how you can get started putting our research to the ultimate test by taking the "Fifty-Trade Gauntlet."

But first, let me quickly share with you Ian's biggest secret to success in this or ANY market. You see...

Ian Never Pigeonholes Investors Into Just One Sector Or Style Of Trading

To put it simply, you can't - no matter what - focus on one sector or industry in this economy if you want to make any serious money - or money at all.

The truth is, with the way things are going, the successful investors - the guys still churning gains like they're picking fish from a barrel - are the ones looking at the big picture.

They're not falling victim to investor's tunnel vision or "it'll come back... eventually" syndrome.

No. They're analyzing the past and current trends for everything and ANYTHING that could POP tomorrow - no matter where it is.

Be it energy top stocks to buy, banking and financials, precious metals, technology stocks, retail, fast food, you name it, and they're covering it.

For example:

They were the investors who knew, as the financial sector's collapse was set in stone and mass layoffs across the U.S. ensued, many Americans - seeking protection - would set the firearms industry ablaze.

And here's Smith & Wesson compared to the Dow:

I don't care what your opinion on the mass buying is. The fact remains that both of these companies are absolutely on fire. And every investor who saw it coming is sitting on a small fortune right now.

And they're not just looking for opportunities where companies are poised to go up. These slick traders are cashing in on the flocks of companies whose share prices are dropping like birds at a Nebraskan pheasant shoot.

They're successfully turning this "crisis" into the biggest cash-cow of their investment careers. Collecting gains of... 70% in a single day as American Express declines... 38% inside of 6 days as Equity Residential prices slid... 68% in 12 days as Prudential Financial tumbled... etc.

The list goes on... for about five pages. But you get the idea.

And the amazing part is, these investors aren't taking super-risky "short" positions or margin calls where they need to cover their losses for the full value if things don't pan out.

In fact, all they need in most cases is a few hundred dollars to get started.

That's because they're taking advantage of one of the least understood - yet most profitable - investment tools around... options.

And in this market, options plays are where the big, rapid gains are coming from.

In fact, Thanks To Not Being Pigeonholed And Open To Playing Options, Just Loosely Following Ian's Trading Advice For The Past 4 Months Could've Rapidly Turned $5,000 into $31,357.08

This is where his trading philosophy of puts and calls excels.

It's also preciesly why you need to be trading stocks right now instead of strictly investing in "buy and holds." You see, with the right trades...

You don't need to start with a lot of money to make a fortune in the market... You don't need to have all your savings tied up in multiple investments for several years either... You don't even need to find dozens of trades every year.

In fact, even though Ian's opened and closed 84 trades since May 2008 - each averaging a 82% gain - all you needed to make more than six-times your initial investment was to loosely follow four of them.

Take the following REAL scenario for example:

Trade #1

On January 5th, Ian shot this amazing alert to his readers:

It's really nice to have such great readers. And I'm not just saying that to butter you up. My inbox is usually full this time of week with plays you want me to look at.

Just yesterday, for instance, one of you e-mailed me about SunPower (SPWRA) downside, but I missed recommending it, because the e-mail was opened so late in the day... and Yahoo e-mail sometimes doesn't work so well.

But that doesn't mean there aren't more opportunities to go short the solar market. Sure, solars got a nice pre-Obama inauguration run, but the party may be over as the group faces weak consumer demand and poor credit markets.

JPMorgan seems to agree, recommending a sell of solar top stocks for 2010 on expectations of bottoming later in the year. They also warned investors not to expect a recovery in solar stocks on a broad economic rebound, as "solar subsidies may have peaked in 2008 when Germany and Spain primarily drove demand."

Worse, JPMorgan mentioned that a tight credit market "bring the alternative energy industry to a screeching halt if access to capital is not made more available."

One company that could continue to fall nicely for us is Energy Conversion Devices (ENER), which we'd recommend playing the short side with. The best way to play this is to buy March 2009 25 puts (EQIOE) up to $4.60.

Again, this entry price is being set high so that all of you can get in.

Good Investing,

Ian L. Cooper

Options Trading Pit

The timing was perfect. Take a look at what happened to the share price shortly after he issued the put.

Amazing!

And just eight days later, they sold their positions for a rapid 38% gain, turning every $5,000 into a cool $6,900.

Trade # 2

Then, on February 3rd, he issued this urgent alert:

Wynn Resorts (WYNN) just broke below double bottom support. At this pace, it could test lows not seen since 2005. As we said earlier, casino stocks are acting like they're going to continue falling hard, as Las Vegas media talk about how Vegas travel numbers are way off thanks to a pullback in discretionary spending.

Two weeks later, like clockwork, his readers dropped out of WYNN after collecting a generous and quick 26% gain.

Now every $5,000 his investors loaded in were worth $8,694... from just two trades!

And it didn't stop their either.

Trade #3

The very next day, he urged his traders to buy puts on Prudential, saying...

We've got a falling knife on our hands, and the stock is looking as if it'll re-test the $13 level before (hopefully, for us) plunging to the single digits.

It was dead on.

Less than two weeks later, his group of investors (which you can now become a part of) were cashing out after collecting 57.5% gains.

By this time, everyone was sitting on $13,693.05 - from just $5,000 and three trades!

Trade #4

Once again, the very next day, on March 10th, he alerted his investors to a call in the financial sector of all things!

The recommendation was simple - and a little ballsy. But he knew what he was doing.

Buy June Calls on Financial Sector SPDR.

Within ten days, the simple option paid out 129%

In other words, investors following Ian's advice on these four trades since the beginning of the year turned every $5,000 into $31,357.08.

A $10,000 stake would be worth more than $62,714.17 - within four months!

Of course, as you can imagine, you don't even need that much to start enjoying the rapid gains that Ian's been showing his investors for almost a decade now!

And I haven't even mentioned the big winners that Ian's been raking in!

Gains like, 242% gains from Coca Cola in 39 days... 113% gains from JA Solar inside of 7 days... 208% gain from Lehman Brothers within 4 days... 157% from iShares in 6 days... you get the picture.

All in all, if you include every trade he's issued over the past five months, Ian's made his investors...

... Twelve Times Their Money - In Five Months!

Imagine how quickly you can compound your wealth with gains that large - gains that fast - again and again.

That's the sort of hit-and-run excitement you'll get when you take us on in the "Fifty-Trade Gauntlet" by enrolling in the Options Trading Pit. You can make a fortune in several rapid trades.

And starting today, we're going to give you at least 50 more of these monsters, by April 15th, 2010.

But Just How Can I Be So Confident That You'll Make At Least 50 Double-Digit Trades That I Can Risk Putting $2,000,000 On The Line?

Here's why: Ian Cooper has spent the better part of the past decade perfecting the art of trading options for triple-digit gains.

Over that time, he's shown thousands of investors exactly how to exploit carefully targeted market sectors for lightning-fast short-term gains... gains that prove to be several times larger than simply buying stocks alone.

It's his phenomenal track record of triple-digit, short-term winners that put Ian in such high demand from mainstream outlets such as Investor's Business Daily and Forbes... and on investment shows such as Money Matters with Barry Armstrong and On the Money with Mike Stein.

Truth is, people who follow Ian Cooper's advice make an immediate killing almost every time he alerts them!

And while millions of Americans have been in an absolute panic over our current financial crisis... Ian and his readers have been consistently raking in some amazing gains.

In fact, the volatility we've seen in the markets over the past twelve months is actually perfect for options traders like Ian. It "turbocharges" the profit opportunities and delivers winners much faster than in the "old days" of two years ago or more.

And the beauty of it all is that Ian's readers are just everyday Americans like you and me who have refused to become victims of the U.S. financial crisis... and have decided to take their investment future into their own hands.

People like Neil M., who recently used one of Ian Cooper's recommendations to collect $4,195 after a single trading day...

Or Bruce H., who collected an extra $5,000 inside 13 days by following Ian's advice...

Or Brian A., who, after months of following Ian's recommendations, turned an initial $10,000 into an astonishing $450,000!

And thanks to the massive fluctuations in the markets, for Ian and his readers, the fast money's rapidly turning into the easy money.

That's why I'm not the least bit worried about him being able to deliver to you at least 50 trades by Tax Day of next year.

But before I share with you how to get started today - and the clock is ticking - let me quickly reiterate what it is that makes Ian head and shoulders above virtually every other options trader around. You see...

Not a Single Recommendation Is Released Unless It Has the Potential for Short-Term Gains of 100% or More

So what is Ian Cooper's "secret" to making a killing for his readers with carefully selected options trades?

The truth is... there is no secret - just some good, old-fashioned, roll-up-the-sleeves research and analysis.

And fortunately for you - Ian handles all of the heavy lifting.

He sifts through general market analysis. He looks at the bigger picture. He finds what sectors will benefit from any situation. Then he scrutinizes hundreds of potential opportunities for his readers to invest in.

Once the initial analysis is complete, Ian then incorporates four specific indicators, including Bollinger Bands, W%R, candlesticks, and the news.

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

And that's just the beginning.

After sorting through hundreds of opportunities each week, Ian identifies the "best of the best" using his time-tested methods of analysis. Then... Ian goes one step further, insisting on providing his readers with only those opportunities that have the potential for explosive growth.

Imagine - instead of only pulling in marginal gains on top stocks 2010 that do well, say an 18% gain in 23 days, you could be sitting on 140% gains on the same stock during the same period!

All thanks to the "magic" of options trading.

Now I know what you're thinking.

Isn't Options Trading Highly Complicated?

The truth is, it's actually much easier than you might think. And Ian goes to great lengths to explain to his readers every step of every trade.

And to make certain you know exactly how everything works, Ian has prepared several special reports with easy to understand explanations of all of his jargon so you can follow along with everything he might alert you to.

They're called:

Understanding Options for Maximum Gains... an easy-to-understand guide to successfully profiting from options.

How To Secure Long-term Profits with LEAPS

The Bear Market Baron's Guide to Options... a hands-on guide to making a fortune, even when the markets are crashing.

How To Lock in Huge Gains by Going "Greek"

And every single one of them is yours - absolutely free!

All you have to do is take this rare opportunity to challenge our work... and put it to the ultimate test by signing on to the Options Trading Pit and enrolling in the "Fifty Trade Gauntlet."

But before you scroll down and click the subscribe now button, I have to warn you...

This fast-paced trading is unlike anything else that we offer. And it certainly isn't for everyone.

In other words, as a result of this ridiculous market we're in right now - Ian is issuing alerts rapidly... and as you've seen, sometimes they're only open for a day or two.

So it's impeditive that all members of the "Fifty-Trade Gauntlet" are able to act quickly to get the biggest gains.

In and out. Take the profit and run. That's precisely the game plan that's made this service an incredible success in the first place.

And that's exactly how we're able to make such a bold offer.

Of course, if the number of trades bothers you - maybe over 100 this year - then this service simply isn't for you.

But if you're like most Americans and want to gain more than all the money that you've lost in this market back, I urge you to join now.

An Exclusive Options Opportunity Unlike Any Other

Unfortunately, the number of investors who can sign up for our Options Trading Pit and take us on in the "Fifty-Trade Gauntlet" is strictly limited.

In order to make sure every one of our subscribers has the ability to get maximum value out of each recommendation, membership will be strictly limited to 2,000 seats.

And with only a few seats remaining, it's important that you act quickly if you'd like to get in.

Why?

You see, we don't want 5,000... 10,000 people buying the same stock. If we allowed an unlimited number to join, we could easily push the stock up several hundred percent. That would be a disaster.

That's why we have a strict limit on membership.

But if you're one of the lucky investors that lands a spot, you can expect that you'll see at least 50 double-digit recommendations this year in Options Trading Pit. That's a lot of trades. But we don't plan on holding these positions very long. In and out. Take the profit and run. That's what we'll be doing.

And like I said, if the amount of trades bothers you, then I'm sorry, but this service isn't for you.

Lightning-Fast Profit Alerts

One more thing: your trading alerts will be sent to you via e-mail directly from Ian Cooper.

Options Trading Pit is not a fax service - instead, Ian uses e-mail because we want everybody to receive the trade at approximately the same time.

And just so that you don't have to recheck your email 10 times a day, we're also offering Options Trading Pit updates VIA live RSS feeds - so you can get the alerts the split second they're available! (We'll even give you simple, detailed instructions on how to set up and use your RSS feed within a matter of minutes.)

If you're comfortable with what I've shared so far, then I urge you to join us today.

Again, I know this style of trading isn't for everybody. But by signing up for the "Fifty-Trade Gauntlet" by joining the Options Trading Pit, you're elevating yourself into the top tier of the trading community - light years beyond what most unfortunate American investors can handle.

So if you're interested, welcome aboard.

How To Get Ian Cooper's Recommendations Sent Directly To You - Starting Today!

When you fill out the membership form, you'll immediately receive a confirmation and a welcome letter, as well as a link to the Options Trading Pit site, where you'll be able to access every single one of the positions Ian issues... 24 hours a day.

We'll also rush you Ian's latest report, Understanding Options for Maximum Gains.

And that's not all!

As I mentioned a moment ago, if you're able to enroll into the "Fifty-Trade Gauntlet" before the doors close, you'll also receive Ian's four crucial reports.

So just to recap, by signing on today, you're gaining:

Enrollment into the "Fifty-Trade Gauntlet" - your chance to collect $1,000 if Ian Cooper doesn't uncover at least 50 double-digit trades by April 15th, 2010.

Full access to the Options Trading Pit website - giving you full, unrestricted access into every single trade Ian's ever issued and will issue.

Live RSS Feeds just to make sure that you're able to get the latest trades the split second they're released.

4, easy to understand reports where Ian breaks down in human-terms exactly how options trades work with:

Understanding Options for Maximum Gains... an easy-to-understand guide to successfully profiting from options, How To Secure Long-term Profits with LEAPS, The Bear Market Baron's Guide to Options... a hands-on guide to making a fortune, even when the markets are crashing., How To Lock in Huge Gains by Going "Greek"

And, of course, you'll be placed on the e-mail distribution list so you can begin receiving Ian's trade alerts - which can arrive any time of the day, from 9 a.m. to 8 p.m.

Now at this point, I'm sure you're wondering - with the explosive, triple-digit profit potential of every trade recommendation... the chance to collect $1,000, access to Ian's complete trading history with Options Trading Pit... plus his latest reports...

How Could You Possibly Afford A Subscription To Ian Cooper's Options Trading Pit?

First, let me reiterate one very crucial point.

This level of service is highly specialized. And the countless hours it takes Ian to find, study, and recommend just one of the calls or puts he uncovers - as you can imagine - takes a lot of time, expertise, and resources.

He doesn't draw top stocks to buy from a hat. He's not paid by other companies to recommend one over the other.

His secret is that he's an insomniac, sleeping just three hours a night.

The rest of the time, when other traders and researchers rest, spend time with their family, and take vacations, he's intently focusing on the latest news, studying the markets, and developing high-ranking contacts.

That is, however, precisely what it takes in order to hold a track record as clean as Ian's... a portfolio that scores investors like you the greatest option trades the market has to offer.

After all, I can't think of a single other trader on the planet who's collected cumulative gains of 4,343% since May!

And with just one of Ian's most recent trades, you could have turned $10,000 into $22,161 in just seven days. Again... that's just with one trade!

That being said, I've seen other "experts" billing themselves out for several thousand dollars a day - and their trading advice can't tread water next to the winners Ian shows you on a weekly basis.

So I wouldn't feel the least bit guilty charging as high as $5,000 a year for a membership to his advisory.

But I'm not going to go anywhere near that.

In fact, the normal membership price is only $999 a year - only I'm going to make you an even better deal than that.

"Fifty-Trade Gauntlet's" Special Pricing

If you enroll in the Options Trading Pit today, assuming there are still spots remaining, you can save a full 20%, and join for just $799 this year!

I know for many of you $799 is a big lump of money to take down, even considering that many of you have made hundreds of thousands of dollars following our advice.

So here's the deal. We're also offering a quarterly bill program. If you choose that method, you'll be charged just $250 every three months.

It's as easy as we can make it to get you on board.

Please keep in mind - we're capping Options Trading Pit's "Fifty-Trade Gauntlet" at 2,000 investors.

In addition, we want to make sure you're 100% satisfied. So, if for any reason you're unhappy with Options Trading Pit, you can get a full refund at any time before the end of the first month of your membership.

After that, the refund is prorated.

The "Fifty-Trade Gauntlet" Guarantee:

And if you sign on today, and we don't deliver at least 50 double-digit trades by Tax Day, 2010, we'll give you the entire following year absolutely free! That's a $1,000 value we're passing on to you!

Even if only 49 out of 50 reach double-digit gains, you'll still get the next year absolutely free!

But you have to act now. The few remaining seats for the "Fifty-Trade Gauntlet" and special pricing could be sold out in a matter of hours.

Has the 2010 Stocks Market Rally Lost Its Steam?

When I look at the markets, I can't help but be reminded of the old Wendy's commercial — where's the beef? 

By that, I mean where are the good stocks to buy that you can safely buy right now?  Just look at some of the names below — from a technical perspective, you can't possibly tell me there are any low risk entry points with any of these right here. That is unless you want to chase them.

The beef on AAPL is looking pretty slim right now and here's why:

• Five "Waves" Up (technicians would say that a downward correction is imminent).
  
• Relative Strength Index (a comparison of a stock's up days to its down days) is in overbought territory.
  
• Full Stochastics (a measure of a stock's momentum) in nose bleed territory.

Now take a look at BIDU, another index heavy lifter.

Look familiar? With AAPL, BIDU, and many other best stocks to buy that look just like them, we want to watch for them to come down to the 50-day average — the stock's average price over the trailing 50 days — then we'll talk. 

Don't get me wrong — I'm are all for the markets going higher, however most of the best stocks for 2010 are very extended and are not offering opportunities to buy them at low risk entry points at this time.  Sure, the market indexes continue to move higher, but unless you are willing to chase best stocks for 2010 or day trade you won't be looking at a lot of up side gain potential.  Most of what we're seeing out there is like what we've seen above — 2010 best stocks that have stalled.  

Even looking deeper into the technicals and internals of the markets, it seems that the beef really isn't there…at least the kind that supports higher moves from here.

So let's take a look at some of those internals and technicals.  First up is the Dow Industrials from a big picture sense:

With the OTC Composite you can see a few more items of concern if the market is going to continue to make forward progress. First off, for all intents and purposes, we've basically hit the 38.2% Fibonacci Retracement level as shown. And during the month of May while this index was consolidating its gains by going sideways and allowing the RSI and Full Stohcasics to reset from overbought to oversold here we are again right back up into those overbought levels again.

Since this bear market started the RSI hasn't gone above the 70 level. And every time it got near 70 it formed a top — that's a pretty strong indicator that the market is losing its momentum.

Also not shown is volume — where is it? While Friday's was higher than we've seen for a while, that's nothing special given that markets actually distribute while they are going up. Think about it… If you are long one million shares of ABC and want out, when is the best time to sell those peanuts. When the circus is in town and you have a ready, willing and able crowd right?

Drilling down to the shorter term frequency charts there are a few more negatives showing up in the form of Negative Divergence, Stohcastics Overbought and some Elliott Wave issues to contend with from here also. These are all negatives for future forward progress from here.

Here too, nothing but negatives for further upside progress. In other words all the signs are there, but until it breaks the blue uptrend line its all still intact. For next week keep an eye on those blue lines!

Right now, the markets are in the zone to turn from up to down, so be aware of where the market's pointing. At the Penny Sleuth we'll continue to watch the technicals for you every week.

How the U.S. Overthrew Russia's Natty Gas Throne

U.S. Shale Basins: The New Leader in Natural Gas

I have no doubt that you'll be calling shale gas a game-changer... that is, if you aren't already.

Three years ago, I never would have thought I'd be seeing anyone else except Russia atop the energy throne.

At the time, Russia was an absolute energy giant, holding the world's largest natural gas reserves, the second largest coal reserves, and the eighth largest oil reserves.

Furthermore, this energy powerhouse was the second largest oil exporter and the world's leading natural gas exporter. Last year, the country even managed to surpass Saudi Arabia as the world's leading oil exporter.

Russia was practically unstoppable.

Unfortunately, the party didn't last...

That's right, Russia has finally been dethroned. In 2009, the U.S. replaced Russia as the world's largest natural gas producer.

So what happened?

Well, the 12% decline in gas output certainly didn't help. A few people even pointed to lower demand from Europe and the rest of Russia's customers.

Let's give credit where credit is due. Shale gas basins across the U.S. have been gaining a huge amount of attention over the last several years. In fact, unconventional gas is expected to account for more than half of U.S. natural gas production during the next decade.

But let me ask you this: At what point does unconventional become conventional?

It wasn't too long ago that people considered offshore oil unconventional. It's a boundary that is continually being pushed back as technology develops and improves.

Feel free to weigh in on the topic by clicking the comment button below. I'm rather curious what your thoughts are on the subject.

The U.S. Shale Gas Basins

Today, I'll just stick with those U.S. shale plays.
First one:

The Barnett Shale

Believe me, if Russia isn't worried about shale gas, they certainly should be...

Russia's customers are already looking at their own shale potential. Total, one of France's largest companies (and also one of the six "supermajor" oil companies in the world), recently took at 25% stake in Chesapeake's Barnett Shale gas fields. The deal gave Chesapeake $800 million in cash and approximately $1.45 billion toward developing the Barnett fields over the next six years.

If the French wanted to start somewhere, they couldn't have picked a better spot.

As you know, breaking through the Barnett Shale is how the U.S. shale boom began, and its success soon spread to other shale plays. The Barnett is also currently the largest onshore natural gas field in the U.S. However, it's also most likely near (or past) peak production. The experience in extracting the shale gas is the real value here. To date, there is no shale gas production in Europe.

The Haynesville Shale

If we're talking about upcoming players in shale gas, you'd be remiss to leave out the Haynesville.

While areas like the Barnett are considered a mature play, it's easy to bet on the shale gas located near Shreveport, Louisiana. Within the next 10 years, the Haynesville Shale will be the largest gas field in North America. By 2020, approximately 5.2 Bcf/d is expected to be pumped out of this shale play.

Of course, drilling these shale wells can cost about $6 million a piece or more, depending on the location.

Then again, the opportunity is there. You see, the latest Louisiana land rush has already pulled in gains for most of my readers. I know for a fact that they're batting a thousand so far. And I prefer to put my newer readers on the same playing field, so feel free to check out their Haynesville plays for yourself in this new report.

The Marcellus Shale

The only other shale formation with as much potential as the Haynesville is the Marcellus Shale. Stretching from New York to West Virginia, the Marcellus has become a hotbed of activity.

Leading players like Range Resources (NYSE: RRC) have been successful so far. Range production has been growing for 27 consecutive quarters, with more than 1.4 million acres in the Marcellus play.

If you recall, the latest buzz over the Marcellus Shale is the fight over drilling in the New York City watershed. The interesting part, however, is that it's not exactly a fight. Nobody is trying to drill in the watershed. In fact, the one company with leases in the area - Chesapeake Energy - has repeatedly stated that drilling in the area wouldn't be worth their time.

Regardless of the accusations flying back and forth, it's clear that companies are going to steer clear of drilling in those controversial locations - Just look at the uproar from merely holding leaseholds in the area.

The Eagle Ford Shale

Located beneath the Austin Chalk and Edwards formation in South Texas, the Eagle Ford Shale is relatively new on the shale scene. Don't feel too bad if you've never heard of it before. You're not alone. This shale play is only now attracting attention.

I expect more companies will take notice as a recovery takes place. For now, there are a few companies poking around, including Conoco Phillips (NYSE: COP).

Looking ahead... Is Canada Out of the Picture?

The last time I talked about the shale gas boom in the U.S., a few of you were quick to ask how it will affect our relationship with Canada. After all, Canada is our largest source for natural gas imports...

I wouldn't be too concerned about it, especially considering that Canada has its own fair share of prospective shale plays. Of course, there's one in particular that I've had my eye on for the last two years. I'll tell you all about it next week, including the one company that will benefit the most from Canada's future shale gas plays.

This stock could double,or triple overnight!

I urge you to move fast on one this one...before Wall Street finds out!

A little domestic energy upstart (with some very big talent) is poised to explode as the word spreads about its HUGE potential.

I've made Signature Exploration and Production my #1 oil and gas pick for 2010 (SXLP.OB) for very good reasons explained in this report. And after you've had reviewed the facts, I'm sure you'll understand why I'm so excited about Signature's prospects.

My name is Eric Dany and my subscribers have seen handsome gains on many of my energy picks-after recommending Suncor Energy it peaked with a 566% gain. I advised capturing 100% profits on Transocean and Wentworth Energy peaked with a terrific 1,000% explosion.

But I believe my latest oil and gas pick, Signature Exploration and Production is going to trounce them all. I urge you to take a few minutes to learn about this company's strategy and why it is my #1 pick!

Here's how you can profit by investing in Signature Exploration and Production!

Where to look for Cheap Oil & Gas (hint - it's not overseas)

In the 1970's the major producers virtually abandoned the good 'ole U.S.A.'s oil and gas fields for cheaper and easier to find foreign sources of supply. While they were scouring the globe an entire new breed of small oil and gas companies quietly took over our domestic oil and gas industry.

But now the majors are back and looking to re-purchase the same properties they previously abandoned. That's why Exxon recently paid $31 billion for XTO Energy--because it's is cheaper to buy existing properties than develop new projects.

The majors are coming back to the U.S because there's a lot of oil and gas still here. In fact, 2/3 of the oil and gas in the U.S. fields has been left behind. There's 337 billion barrels worth trillions of dollars ready to be recovered.

You see, by some estimates, 90% of the land-based wells in the U.S. are old "stripper" wells with huge recoverable reserves. Today's prices and cost-effective recovery technologies makes them valuable again.

That's great news for aggressive exploration companies like Signature that are rapidly acquiring and developing promising oil and gas properties at prices below the cost of developing new fields in remote and inhospitable regions of the world.

Grossly Undervalued

I spend a lot of time researching for undervalued companies and I believe Signature Exploration and Production is grossly undervalued. Here's why...

Signature is acquiring oil and gas leases and working interests in Texas, Kansas, New Mexico and Illinois. They have interests in more than 2,603 acres with aggressive plans to drill new wells and ramp up production.

You'll recall Exxon just paid $31 billion for XTO Energy. XTO owns 18,235 oil and gas wells. That works out to an average price of $1.7 million dollars per well.

Tiny Signature Exploration and Production has less than 10 million shares outstanding, so its market capitalization is about $6.5 million. It is being valued in the market at less than the average price of four of XTO's wells.

Although Signature is just getting started with their drilling program I believe they have excellent prospects to bring in several new wells into production this year, which could easily double, or triple the company's value.

Risk Managers-Not Wildcatters

The reason why I expect Signature to be very successful with their 2010 drill program because they aren't just drilling a hole in the ground. A dry hole has no return-zero payback. So, why drill in high-risk areas.

Signature would rather drill in areas of known production, which is where they have picked up their leases and intend to drill. They evaluate their future drilling plans by using state-of-the-art 3-D seismic technology to determine if-and how-future wells will fit in their overall property portfolio.

By balancing risk and returns, Signature is methodically developing a terrific geographically diversified portfolio of U.S. oil and gas properties.

Compelling Investor Opportunity

I believe Signature could easily become a $15 million dollar market cap company in a short period of time and a $25-30 million company within a year with just a little success in the oil patch.

A $15 million valuation would more than DOUBLE the stock's price to $1.52 per share, while a $28 million valuation would propel the best stock for 2011 to $2.84 a share and TRIPLE your investment.

Perhaps best of all, this exciting company is not yet followed by the Wall Street crowd. That means there's an opportunity for you to get in before the word gets out.

When Signature Exploration and Production first caught my eye, I was intrigued. But as I got deeper into the research, I was flat-out stunned! It's an amazing story...

You see, when nobody was looking, this savvy little energy company snagged leases and drilling rights to 2,603 acres in high potential oil and gas properties around the country.

The leases and drilling rights are in areas that were productive in the past, but over time the fields gradually became less productive, and virtually aban- doned. Since then nobody's been interested.

Nobody's interested―Wow! That's a perfect time to be buying HIGH POTENTIAL leases and interests in over-looked and abandoned properties. Just call it Cheap Oil and Gas!

It's similar to Exxon's thinking...XTO Energy = Cheap Oil and Gas!

Risk Managers―Not Wildcatters

But just picking up cheap oil and gas leases doesn't make an exploration company a winner. It takes management savvy and that's where I believe Signature has a significant advantage.

They are risk managers, not wildcatters. They are smart. They search out local experts to help determine the best prospects in the area and then they scoop up the best prospects...and this is important...in areas of known production.

They are also willing to spend the money for state-of-the-art 3-D seismic mapping to determine if-and how--future wells will fit into their overall property portfolio.

The result is they have focused on seven very promising leases and working interests in four states. Here are the details of their property portfolio.

Texas Properties

Signature has four prime prospects in Texas. Three are in the productive Gulf of Mexico coastal area and the fourth is in the Southwest corner of Young County, where wells have been producing since 1917 when Lindy Lou #1 came in.

Koliba Prospect

At Koliba, Signature has a 15% working interest of a well known as the Koliba Lease. The Koliba well prospect covers 143 acres over an anticlinal structure (target) that is located approximately 3.5 miles southwest of Bloomington, Texas. The Koliba Prospect lies in the North McFaddin Field, which, according to Texas Railroad Commission maps and records, hosts 87 productive oil and gas zones.

The company has identified 3 target zones at 5,880', 5,350', and 4,930' under the Koliba/Ensley lease. Texas Railroad Commission records indicate seven wells from these three target zones produced 390,426 bbls (barrels of oil) and 2,472,481 MCF (thousand cubic feet) of gas between 1962 to 1989.

Signature plans to drill a direct offset to the abandoned Koliba #1 well to 6,880 feet. This is a low risk/high reward prospect because of its proximity to the previous producing well and the potential for multiple pay sand discoveries.

Kenedy Prospect

Signature owns a 10% working interest with an option of 10% on addi- tional wells on this 980 acre prospect located in Kenedy County, Texas.

A 3-D seismic has been performed on this property and reviewed by Mr. Robert Bennett, a Geophysicist. Bennett has experience in this area and a solid track record of identifying successful prospects that have produced over 500,000 barrels of oil.

Bennett recommended two potential targets for drilling. The primary drill-ready prospect is a four way anticline with the potential of multiple pay sands with an estimated reserve of 20-50 Bcf (billion cubic feet). At a wellhead price of $6.00 Mcf and potential reserves of 30 Bcf this single well's production could be worth $180M.

Nettie Rhodes Prospect

At Nettie Rhodes Signature has acquired a 5% interest with an option for an additional 25% in a lease located in the Southwest corner of Young County, Texas and consists of 160 acres.

The lease is situated on the west flank of the Bend Arch. The Arch is bounded on the west by the Permian Basin and on the east by the Ft Worth geosyncline. The lease and subject area has had five producing wells with two selling both oil and gas.

The company intends to complete 3-D seismic studies and then drill a 4,500 foot test well across the southern part of the lease.

Welder Prospect

Signature has entered into a participation option agreement in a proposed acquisition of a HUGE 33,382-acre prospect.

Currently there are two producing wells on a nearby property of 81 acres. These wells are currently producing approximately 23 bbls of oil a day and approximately 100 Mcf of gas per day.

Kansas Property

Medicine River Prospect

Signature has entered into an Option Agreement to acquire a 50% work- ing interest in an 80-acre tract situated three miles east of the city of Kiowa, in southeast Barber County, Kansas.

There are two wells (Chieftain wells) located on the west side of prospect that are producing in excess of 115 barrels of oil per day and 150,000 CF of gas per day. Plans are to obtain a 3-D seismic of the property and potentially drill two off-setting wells to the Chieftain and VAL wells.

New Mexico Property

Signature acquired a lease of 1,320 acres in Catron County, NM.

In year 2007, over 1200 new wells were drilled in New Mexico. The state produced 1.6 trillion cubic feet of natural gas and 65.4 million barrels of crude oil.

The company plans to shoot several 3-D seismic maps on the property and analyze the results before commencing drilling.

Illinois Property

Illinois Reef Prospect

Signature has a letter agreement to acquire up to a 25% working interest in ten offset wells located Fayette and Macon Counties. Plans are to shoot 3-D seismic on acquired leases in conjunction with seismic option agreements in order to confirm subsurface structures. Confirmation of structures will potentially be followed by drilling. Targets range in depth from 2,000' to 4,000'.

Compelling Investor Opportunity

I believe Signature is a compelling opportunity because it is extremely undervalued when you consider the exciting prospects of their low-risk/high-potential growth strategy.

As I mentioned Signature is not a "wildcatter," foolishly spending capital on high-risk wells―ones that more often than not end up being nothing but a dry hole.

That's NOT Signature. No, not at all. Signature's management doesn't operate that way. They aren't going to go broke by recklessly spending the company's capital. They have a much better game plan.

They are aggressively accumulating a large portfolio of high potential oil and gas properties in areas of proven production. It's a well-thought out game plan and it's like a three-legged stool―a three pronged approach that balances risk and reward, while rapidly growing their business.

Here's what I see happening ahead: In the next few months, when investors begin to hear about Signature and their plans, the stock will begin a steady climb to $1.52, or more for an initial 134% gain.

Remember XTO Energy's average well was worth $1.7 million. So when the company successfully brings in a well, or two, I expect the stock to make another huge leap as it reaches $2.84 a share before year end.

At this point early investors will be looking at substantial profits and gains of 337%, or more.

I'm excited about Signature Exploration and production and hope you can see why I've made it my #1 oil and gas pick for 2010.

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