With the price of oil hitting new highs almost daily, energy continues to be one of the most exciting investment stories of the moment. There are rich pickings to be had, especially for small cap investors.
Irish penny share oil company strikes again
- AIM-listed oil & gas penny share Circle Oil (ticker: COP) yesterday announced another gas discovery in its exploration well in Morocco.
- Chief executive, David Hough, said Circle Oil had now made four discoveries after drilling five out of six planned in the region. The company will now focus on the last well of the planned six well drilling programme in the area.
- This penny oil stock is up 94% since the 3 March.
In fact, I’ve found three companies that you’ll never read about in the Financial Times, but that could each bring you mouth-watering profits. They are the guts of a new report I’m putting together on oil. It’s the most exciting report I’ve worked on for ages – and I’m hoping to get it finished for you within the next 6 working days. I’ll let you know as soon as it’s ready. If you’re a member of Red Hot Penny Shares, you’ll get it before that.
Energy: a far bigger story than just oil
With the price of petrol back over £1 per litre, we can’t help but think about energy: about how to find it, how to use it – and how to save it. And, of course, energy is a far bigger story than just oil on its own…
In December, the United Nations Conference of Climate Change will take place in Copenhagen. In the words of environmentalist Tom Burke, it ‘will do more to shape human destiny and for longer’ that any previous such event. Already environmentalists are limbering up and reminding us in the direst terms of the threats to the planet and the human race.
Prince Charles, of course, is well to the fore and does not pull his royal punches. ‘The best scientific projections indicate that we have very little time left – indeed, less than one hundred months – in which to alter our behaviour drastically. Although I wish it were otherwise, I fear we have reached the point when if we do too little, too late to tackle this problem, the consequences could be catastrophic.’
But the stock market, punting on a recovery of the banking sector, has taken its eye off the subject of the environment. Back in 2008 before the recession hit, shares in all manner of green cloaks were the rage. A string of new companies came to the stock market promising to do their bit for the environment. They were greeted with enthusiasm, their share prices reached for the sky like rainforest trees, and investors looked far forward to spy their ultimate rewards. But then everything went wrong...
The bear market has changed all that. Worrying about what might happen in a decade or so is a luxury we cannot afford in a crisis. Those same share prices have sunk back to earth. But while the stock market has a rhythm of its own, it is badly out of tune with the insistent beat of global warming. The need for solutions is greater than ever. And, if progress is never as fast as the environmental lobby would like, sticks and carrots are gradually changing our ways.
There are a few ideas out there that sound, frankly, nutty. Take space reflectors for instance. One plan is to form a sixty thousand mile wide cloud of trillions of tiny deflector satellites. They’d be placed about one million miles above the earth, to block the sun’s rays. Then there are the floating sea pipes. Colder water is richer in life that absorbs CO2 from the atmosphere, so another idea is for huge flotillas of vertical pipes to pump cold water from the depths of the ocean up to the surface.
Maybe it will come to this, but the world is likely to adopt simpler and more reliable solutions first. And many of these concern not just finding new, green energy, but making sure that we use less of it in the first place.
Making money from the race to energy efficiency
Nobody is going to be more influential than Dr Stephen Chu. This former Nobel Prize winner is now President Obama’s Secretary of State for Energy, and he is an optimist. ‘With a serious commitment to energy efficiency, widespread deployment of the technologies we already have, and an aggressive investment in science,’ he argues, ‘we can dramatically reduce our carbon emissions’. In particular he believes that huge savings of energy can be achieved by improving buildings – ‘we can give engineers and architects the tools to design buildings that use 80% less energy than today.’
That is some saving and down in the world of penny shares there are plenty of companies that would like to play their part. Take Pentagon Protection (ticker: PPR), for instance. This stock market minnow supplies a transparent film which, when placed on window panes, prevents buildings from absorbing heat thus cutting the air conditioning bill. Then there is energy efficient LED lighting – a subject that I discussed in the last edition of my newsletter Red Hot Penny Shares.
And there is Sabien Technology (ticker: STN), which promises to reduce the energy and carbon emissions from heating and air conditioning systems by up to a quarter. This type of company has government and our social conscience on its side.
But for me the most exciting and convincing idea I’ve seen recently is from another penny share company. It can cut your electricity bill by 20%, and reduce carbon emissions by the same amount. This is a gripping story indeed, and could make its backers a lot of money – up to 212% returns, by my reckoning. That’s why it’s my top recommendation in the brand new issue of Red Hot Penny Shares, which will be issued tomorrow. Keep an eye out for that.
Good investing,
Tom Bulford
For The Penny Sleuth
P.S. If you’re not down to receive the more detailed research I provide in Red Hot Penny Shares, I invite you to take a look now. Small caps are massively outperforming the main stock markets at the moment and I see no reason for this to change. I’m uncovering some outstanding opportunities at the moment – and this “energy efficiency” company I mentioned above is right up there. I’ll be sending this full recommendation (along with two other penny share tips that could make you between 95% and 200% gains) to RHPS readers tomorrow at 5pm. To ensure you get this too, you must join the list today. Don’t miss out – click here now to learn about the exciting world of Red Hot Penny Shares and secure the latest issue. P.P.S. Remember, Red Hot Penny Shares readers will also be first in line to receive the brand new oil report I’m finalising right now: 3 Tiny Stocks and One Big Oil Boom. To jump to the head of the queue for this important release, make sure you become a full member today. Your three-month trial will give you plenty of time to decide whether Red Hot Penny Shares is for you. And you get to keep all my research issued in that time, whatever you decide. Click here to sign up.
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