Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast - Video - 28th Mar 20
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do - 28th Mar 20
One of the Biggest Stock Market Short Covering Rallies in History May Be Imminent - 28th Mar 20
The Fed, the Coronavirus and Investing - 28th Mar 20
Women’s Fashion Trends in the UK this 2020 - 28th Mar 20
The Last Minsky Financial Snowflake Has Fallen – What Now? - 28th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20
UK Supermarkets Coronavirus Panic Buying, Empty Tesco Shelves, Stock Piling, Hoarding Preppers - 22nd Mar 20
US Coronavirus Infections and Deaths Going Ballistic as Government Start to Ramp Up Testing - 21st Mar 20
Your Investment Portfolio for the Next Decade—Fix It with the “Anti-Stock” - 21st Mar 20
CORONA HOAX: This Is Almost Completely Contrived and Here’s Proof - 21st Mar 20
Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10 - 21st Mar 20
Coronavirus - Don’t Ask, Don’t Test - 21st Mar 20
Napag and Napag Trading Best Petroleum & Crude Oil Company - 21st Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy - Government PANICs! Sterling Crashes! - 20th Mar 20
UK Critical Care Nurse Cries at Empty SuperMarket Shelves, Coronavirus Panic Buying Stockpiling - 20th Mar 20
Coronavirus Is Not an Emergency. It’s a War - 20th Mar 20
Why You Should Invest in the $5 Gold Coin - 20th Mar 20
Four Key Stock Market Questions To This Coronavirus Crisis Everyone is Asking - 20th Mar 20
Gold to Silver Ratio’s Breakout – Like a Hot Knife Through Butter - 20th Mar 20
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis - 20th Mar 20
Is This What Peak Market Fear Looks Like? - 20th Mar 20
Alessandro De Dorides - Business Consultant - 20th Mar 20
Why a Second Depression is Possible but Not Likely - 20th Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

Winning the Energy Investing Game with Zero-Risk Capital

Commodities / Energy Resources Mar 05, 2010 - 01:00 AM GMT

By: The_Energy_Report

Commodities

Diamond Rated - Best Financial Markets Analysis Article"In this game," according to Marin Katusa, senior editor of Casey's Energy Report, "you only get profits when you sell." The zero-capital investing philosophy he advocates wins the hearts and lines the pockets of investors. At the same time, though, it often puts him in the doghouse with some the companies and people he admires most. That's because following this strategy, you a) recoup your original investment once your stock rises, b) pull your original investment out, and then c) return for more when the price dips to the point that the company becomes an undervalued bargain. In addition to learning more about the Casey Free Ride approach and Marin's current energy sector views, get an early glimpse of the European shale plays that have captured his fancy in this exclusive Energy Report interview.


The Energy Report: Let's start with your quick macro overview of the various energy sectors—would you be in oil, gas, uranium? Then we'll drill down into what you see as some opportunities.

Marin Katusa: Sure, I'll start with natural gas. As I've told Energy Report readers before, natural gas is a very localized market. It's very geographic-dependent, based on varying infrastructures. With that as a backdrop, we see North American natural gas going sideways or down near term. We don't see it going to $10, and in fact, expect it to stay under $6.50, even maybe below $6 over the next six months. I discussed our main reason for that view in an article called "The Hidden Supply of Natural Gas in the U.S." Thousands of wells have been drilled, waiting for to be completed. Any of them could come on stream within 72 hours, so that's a lot of supply.

TER: What do you think about uranium these days?

MK: Again, I am going to sound like a negative guy. Uranium is going sideways to down. The long-term spot will stay where it is—sideways to down—but that doesn't matter. Five years ago, when uranium was at $15, if you had asked uranium companies how they would feel about $40 uranium, they would have been ecstatic. This just proves to people that you want to be investing in companies that are real. In the uranium world, that means ISL (in situ leaching) in the U.S. or the Athabasca Basin where grade is king and where $40 is economic for certain deposits.

TER: And oil?

MK: I believe $80 oil has a lot of weakness. Even though there's a lot of speculation, I don't see oil popping to previous highs in the near term (within six months), because people are looking for tangible assets. We use $45 per barrel for our numbers. That's proving very successful in our newsletter because you only invest in the most undervalued and best companies that can actually return a significant profit at $45.

TER: The markets have run up since the March lows last year. What are you telling subscribers in terms of whether they should commit more capital to this market?

MK: Let me set a bit of context here before I answer that. When we introduced the Casey Free Ride formula in the June 2008 issue, I went on TV and radio, and I was ridiculed for telling investors to take a "Casey Free Ride." People were emailing and phoning. Brokers in the streets were saying, "You've lost your mind; you should go back to teaching calculus at the university. How do you not understand this is the greatest bull market of our career? How could you be selling these stocks?"

That's because the Casey Free Ride is all about taking profits off the table when a stock you hold has appreciated by a certain percentage or amount. People fall in love with stocks. The companies get angry at you for selling their stocks. It's a very small world here in Vancouver, so I've become very unpopular for selling these junior companies. Do I care? No, because I make our subscribers money. This is the real world; selling stocks is how you make money. If your broker gets upset with you for selling a stock because he's friends with management or he sees an upside, fire that broker. He is not working in your best interest. It's about making money.

So I introduced the Casey Free Ride in mid-2008. We all know what happened four months later. Was I a little bit early? Sure. Did we nearly get the top? Yeah. So, was it a great call? It was a fantastic call when we mentioned to take a Casey Free Ride in the June 2008 Casey Energy Report.

It's funny when I think back to the summer of 2008, for two months people were laughing at me, but subscribers who followed that advice did very well. We put five buy recommendations in the November 2008 issue; that's a very rare newsletter with five recommendations in. And those produced potentially up to more than 10 times your money, depending on if you bought, if you went in. In this game, you only get profits when you sell.

So what are we telling subscribers? We're telling people to make sure they have zero-risk capital in the game. If you invested $10,000 in a stock and it's trading at $16,000, pull out that $10,000. The liquidity of these junior stocks is so brittle. In an environment where a junior's trading at four, five, 10 times its average volume, you have to sell. We've all seen these markets go zero bid or illiquid and then you can't sell your stock. So, that's what we've told our subscribers.

So why do I say that? Number one, I want people to book gains and have their powder dry when the market correction hits. One of the most important lines you'll hear in this report is "keeping your powder dry"—that's keeping cash on the side. The Rockefellers were famous for saying, "Buy when there's blood in the streets." You can only do that if you have cash when there's blood in the streets. You have to be forward-thinking.

TER: And how's that working for you now?

MK: In the last issue of the Casey Energy Report, we basically said we cut a third of our companies and closed the positions. It was a tough thing to do as you like holding the winners, and its psychologically difficult to sell, but you must stay disciplined and sell. We've used the Casey Free Ride Formula on almost 75% of the portfolio and we have closed a little over 35% of all the stocks in our portfolio. We've had fantastic runs. We've had stocks return over 10 times.

Our portfolio has done fantastic; we're sitting here on the sidelines; we've got a lot of cash, and we're waiting. We've not just been watching the Olympics every day. We're actually doing our homework, interviewing companies, running our database models. And we're waiting for companies that I like that are overvalued right now so they hit our price targets. We run fundamental values. When I introduce the stink bids I get a lot of negative feedback, but that's a psychological reinforcement confirming that the market is overvalued right now.

TER: What are some of these overvalued stocks that you're watching and waiting for to hit your price targets?

MK: A perfect example would be Ram Power Corporation (TSX: RPG). One of my very close friends and mentors is one of Ram Power's largest investors in that, Rick Rule. Rick will work his book, and, you know, God bless his soul, he's a great man. But I crunch the numbers on it; I think it's a good buy under $3. This stock has gone over $4, and it hit a low recently of C$2.91. I got hundreds of emails asking, "Hey, it's C$3.06, should we go buy it?" I said, "Let's hold tight. If it hit C$3.06, it's probably going to hit C$2.96." And it went to C$2.91, and our subscribers got in, and it took many months to do so. Discipline is the name of the game. Unfortunately for the buy side, from that C$3.06, it ran to over C$4, but then it came back. Just be patient. And this is a PERFECT example of how it came back from C$4 to C$2.91 and our subscribers got filled. So, that's a perfect example of a company I really like and I really like their investors. It will take only one or two funds to blow up to get that stock down to C$2.75 or C$2.50 or even C$2.90; so, be patient.

TER: And patience will pay off.

MK: Another perfect example is another company I really like. In our Casey Energy Confidential alert service, we told subscribers to be patient and wait and buy under C$1.50. It got there, and traded millions of shares under C$1.50. Within three weeks we had over 25% profit, and we told subscribers to take the risk capital out—take the Casey Free Ride. Then about a month later, I said the exact same thing in the Casey Energy Report. It hasn't hit our price target, but it came down to a $1.54.

TER: Which company is this?

MK: Magma Energy Corp. (TSX:MXY); that's where Ross Beaty is the Chairman and CEO. We have the utmost respect for Ross Beaty; Doug Casey calls him the "broken slot machine" because he's delivered nothing but profits for its people. Am I being Scrooge being very picky for a few pennies here and there? Probably, but there's no rush to own these stocks. That's the type of market we're in now.

TER: So, where would you buy Magma?

MK: Under C$1.50.

TER: I can see where Magma might not like that.

MK: You know, it's difficult, but I'm not paid by the companies. I am not paid by the promoters. I am paid by my subscribers, and I have to do the most prudent and right thing for them. The reason we have so much clout in the market is because they know that we're out there pounding the streets for them. You treat your subscribers well, and they'll treat you well.

TER: Any other geothermal companies on your radar?

MK: Breaking it up by risk level, what I call the Cameco Corporation (NYSE:CCJ;TSX:CCO) of the geothermal world is called Ormat Technologies, Inc. (NYSE:ORA). That is as vertically integrated a geothermal company as you can get. They build the geothermal plants; they explore and develop geothermal plants; they run other people's geothermal plants. This is as good a geothermal company as you can get.

Suppose you're in your 60s and don't have an appetite for risk, Ormat is not going to quadruple. It won't have the potential of a Magma or a Ram Power, but it's a solid company that makes money, has great production—more than 500 megawatts of production—and it's without a doubt the leader of the geothermal sector. However, the company has got into some trouble with some violations in their financials, and they may have a lawsuit on their hands. If everything clears out, I really like this company, but would wait and see what happens in the weeks to follow and pick some up after the smoke clears.

TER: Any others?

MK: As you know, Louis James runs the mining side of our Research Department. This guy lives on the road, and no one kicks more rocks than Louis. He is as critical and smart as they come. He went out to Serbia (both Louis James and I have been to Serbia many times), and I got excited when I read his report, because I know how conservative Louis is. Reservoir Capital Corp. (TSX.V:REO) is one of those companies—and I agree 100% with Louis—that you will look back in five years and go, "Why did I not buy that?" It could definitely trade at multiples. We're not talking a two or three-bagger. I believe Miles Thompson (Reservoir CEO) will be in my 10-bagger club within five years. He was a very well-respected management teams, and we're not just talking about respect from the Casey crew. Rick Rule keeps him in high regard; a lot of the European funds, people know that Miles Thompson is going to deliver. It's been a huge run for us on the energy side, because we were buying it all day long. We had it as a best buy under 25 cents.

TER: Is it time for a Casey Free Ride?

MK: So, would we sell it here? To be prudent and follow our discipline, if you bought under 25 cents, yes. The smart thing would be to take your initial capital off the table. However, Reservoir Capital is one stock that you want to own. I can't be more bullish about a run-of-river project. This company accumulated some of the largest geothermal potential in the Balkans. If you know the geography, the geothermal and run-of-river potential in the Balkans is very high. Miles and his team are very connected in that region, and I know that region very, very well.

So for a junior with a 10-bagger potential, I have no doubt that Miles will deliver. We own the stock; we have not sold the stock and we want to own more of it. We're actually looking to buy more on weakness. Rick Rule said something that's resonated with me for a long time. "I want to own a deal that the president of the company is willing to sacrifice his life for five years to make a fortune." I believe that Miles Thompson will follow Ross Beaty's footsteps and become a broken slot machine (which means delivering returns time after time for shareholders).

TER: Anything else in alternative energy arena?

MK: For the alternative side, in the geothermals, you have to be careful that you're in the right ones that are capitalized and run by people who can actually run these projects, not just another "me, too" geothermal company.

TER: Any other stocks that fit your pattern of good stocks that are undervalued?

MK: CBM Asia Development Corp (TSX.V:TCF;Fkft:IY2) is a company we really like. We bought a lot of it in our Alert Service for our subscribers and ourselves personally. We bought it at 30 cents in a private placement, and then actually went into the market and followed our own advice after giving our subscribers three days' head lead, when we bought a lot of stock under 25 cents.

This is an example of a company that the stock came free trading, and there was overselling. This is exactly the type of market that you want to go and take advantage of that type of opportunity. CBM Asia is drilling in Indonesia, within 30 kilometers of the second largest liquefaction plant in the world. The company has the potential of being one of the largest land owners in the Kutai Basin, and I can't overemphasize how strategic this land play is.

TER: Why is that so important?

MK: Land ownership is very fractional in the oil and gas sector, and if CBM Asia can consolidate and become one of the larger land holders in the Kutai Basin, I have no doubt you will see a major company from Japan, or the French, or maybe even some of the U.S. majors knocking on the door because of the multi-billions of dollars of infrastructure sitting there. InterOil Corporation (NYSE:IOC;TSX:IOL) has had huge success in Papua New Guinea, but the infrastructure is not there. Indonesia does have some geological risks, and CBM Asia does have to drill up the project, but its infrastructure risk is much less. And taking out that infrastructure risk is so important for a lot of these projects. That is your highest cost, your largest capex.

TER: You mentioned a consolidation play in oil and gas, isn't that the same in the mining sector?

MK: Exactly the same. That's why for years I've been banging the drum about the Copper Mountain Mining Corporation (TSX:*****) story. Open disclosure: I'm a director of Copper Mountain and have a lot of my personal money in it, but this company has up to a quarter billion dollars worth of infrastructure already built on OPM. That's a famous Casey line, OPM—other people's money. It's ideal to build your net worth on an already existing infrastructure. Raymond James has a "strong buy" on Copper Mountain with a C$3.50 price target, and one of reasons why is that they've got $300 million of infrastructure sitting there already built. So, definitely, consolidation is key in mining, and also on the energy side. It's very important to know that angle when investing. With a lot of uranium mines, for example, although they have uranium, it may not work when you calculate the cost of bringing in the infrastructure.

TER: Switching gears a bit, I imagine you know called Salares Lithium Inc. (TSX-V:LIT).

MK: This is an undervalued story. We are Salares Lithium shareholders. We like the story. The potential of their salares are very, very high. There's a side of junior exploration stories that people don't talk about. You're only as strong as the shareholders you have, and Salares Lithium's shareholders reads like the Who's Who in the Vancouver investment banking scene. These people will write checks to develop the story and help support Todd Hilditch (Director, President and CEO) on his mission.

Although the lithium space, in general, got a little bit too excited, there are a few gems. Salares Lithium is a great story. There's one run by Patrick Highsmith—Lithium One Inc. (TSX-V:LI)—is a great story. I have known Patrick for a few years. So, there are gems out there, and, again, what you want to worry about in the lithium story is I'm hesitant about buying a lithium story that is conventional because of the capex.

TER: They can't produce lithium economically.

MK: Absolutely. If you break it down, I believe FMC and SQM are producing at about 70 to 80 cents per pound. You can't go in the game and try to produce at $2.50 to $3? It ain't going to happen. That's why you go with the salares, and that's where Lithium One and Salares Lithium have positioned themselves very well. They can compete with the big boys. And the lithium market is—people don't realize that three companies produce—what is it?—80% or even more of all the lithium. It is almost like an oligopoly. I worry about investors rushing to conventional, high-cost operations; that's my warning to shareholders is "be careful where you're investing in the lithium market." There are gems, and the ones we went with—Lithium One and Salars Lithium.

TER: How many of the lithium companies own 100% of their land?

MK: Very, very few. A lot of these companies are earning in, there are option payments, JV agreements. In South America, where probably the best brines really are, I believe Salares Lithium owns 100% of its land, and Lithium One owns 100% of its portion of the salar, but it's one large salar, so they don't necessarily own the whole salar.

The Toyotas and the Magmas of the world are looking for a lithium supply. When you're a 100-percent owner, you've got a lot more to work with than if you're a 40% owner or earning into a 60% option. That's another reason why I really like Salares Lithium and Lithium One. Again, it's a consolidation issue.

TER: It's important for investors to understand that lithium is almost like a lake, and if you don't own 100%, somebody else can put a straw in on the other side and be taking your lithium.

MK: Another big problem there is the legal angle. The lake is a good way to visualize it. You're producing on your side of the lake. Someone's going to pop in a straw on the other side. You're not going to allow that, so you'll go to court and it will be in litigation for years. So investors have to be careful about that.

TER: Okay. Any other opportunities that you see on the horizon?

MK: We've been following Utica Shale plays for two years, and I could see a big push happening in that space. A few rumors are going down with the landowners in the Marcellus Shale that the American environmentalists are saying that shales are polluting the water and all that stuff. That's complete nonsense. Geologically, scientifically, it doesn't happen. So, about two years ago, with $6 gas, we wrote up the shale gas story in the energy reports saying, "These are the companies we really like but right now these stocks are trading at unrealistic values. You'd need $12 or $13 gas for these numbers to fly." These stocks have now corrected and we've written them up in our Alert Service. We're working on a full feature on Utica Shale plays, and I think the area's going to get a lot of excitement. We're working on an Eagle Ford Shale report, too. The report of this year for me personally shows an area where we're ahead of everybody and it's an untold story. I've been banging on the drum for three years about this. It's a European shale story; it is just starting to get hot.

When you have Gazprom (LSE:OGZD; Fkft:GAZ;RTS/MICEX:GAZP;OTC:OGZPY) come out and say, "Shale gas is bad; it's going to pollute all of the water of Europe, and our gas projects are economic comparably to the shale," you know that Gazprom is scared that they're going to lose their dominance in the European gas scene.

This is just starting, and the irony—there are fewer than 25 frac sets in Europe; that's to drill, frac and complete a shale gas well. On top of that, only three are modern. There are something like 2000 in the U.S. You'd want U.S. expertise there, with a management team that has drilled thousands of wells. So, again, I caution investors. If you're going to jump into European shale, get answers to a few critical questions first. Who is going to develop these lands? Where are these shales? What are the royalty rates? We have our top pick, and we warn subscribers and investors to be careful of what they're doing because Europe is a very fragmented sector, a very difficult place to get things done. So European shale, which no one's really talked about it yet, will be coming up in our next report, and I'm very excited about that.

TER: I understand you're planning another conference, too.

MK: We are. It's Crisis Investing Opportunities and it's going to go from April 30th through May 2nd in Las Vegas. Doug Casey, Louis James, Bud Conrad, Alex Daley and Rick Rule—we have a whole list of characters coming out, some big names, the best in the mining, energy and tech sectors. We have a panel, with everyone giving three top picks. After the last conference in Denver, everyone's picks at least doubled. Mine gained an average of 500%. And the companies we like will be there, some virtually unknown in the market. It's going to be an exciting show, and I look forward to it. This is definitely a show you want to see.

TER: We'll see you there.

Investment Analyst Marin Katusa is the senior editor of Casey's Energy Report, Casey's Energy Opportunities and Casey's Energy Confidential. He left a successful teaching career to pursue what has proven an equally successful—and far more lucrative—career analyzing and investing in junior resource companies. With a stock pick record of 19 winners in a row—a 100% success rate last year—Marin's insightful research has made a great deal of money for his subscribers. Using his advanced mathematical skills, he has created a diagnostic resource market tool that analyzes and compares hundreds of investment variables. Through his own investments and his work with the Casey team, Marin has established a network of relationships with many of the key players in the junior resource sector in Vancouver. In addition, he is a member of the Vancouver Angel Forum, where he and his colleagues evaluate early seed investment opportunities. Marin also manages a portfolio of international real estate projects.

Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Expert Insights

DISCLOSURE:
1) Karen Roche, of The Energy Report, conducted this interview. She personally and/or her family own none of the companies mentioned in this interview.
2) None of the companies mentioned in the interview are sponsors of The Energy Report.
3) Keith Schaefer—I personally and/or my family own the following companies mentioned in this interview: West, Petrominerales, Bankers, Painted Pony. I personally and/or my family am paid by none of the companies mentioned in this interview.

The ENERGY Report is Copyright © 2010 by Streetwise Inc. All rights are reserved. Streetwise Inc. hereby grants an unrestricted license to use or disseminate this copyrighted material only in whole (and always including this disclaimer), but never in part. The ENERGY Report does not render investment advice and does not endorse or recommend the business, products, services or securities of any company mentioned in this report. From time to time, Streetwise Inc. directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules