Profit Pregame

The Energy Sector has a Brighter Tomorrow After Failures in Texas

Losses Mount for Oil Companies After the Big Freeze

Don’t give the energy sector the cold shoulder. It may be the next huge profit opportunity.

What’s happening?

You’ve probably heard a lot about the awful weather conditions in middle America – particularly in Texas – that have left millions without power in freezing temperatures.

In addition to the already dire lack of energy supply, analysts are estimating that crude oil production in the U.S. declined by as much as 40% due to shutdowns during the severe weather.

And publicly traded oil producers are feeling the pain.

While they likely won’t get much sympathy from Texans that are still dealing with dreadful conditions and being sent outrageously high energy bills, a number of energy companies are reporting significant losses due to the polar vortex.

Just Energy Group Inc. (JE) has reported more than $250 million in losses after last week’s freeze, dropping its share price by nearly 30%.

Due to inflated prices, Atmos Energy Corp. (ATO) was forced to spend more than $3.5 billion to acquire fuel during the extreme cold, and will now need a new injection of cash.

The list of headaches for energy suppliers goes on and on…

Even with the drastic losses for so many energy companies, some experts say the market is still underestimating the impact the lost production will have.

But while some investors are panicking, I’m seeing a great profit opportunity…

Where’s the money?

All of the attention-grabbing headlines about human suffering and financial loss shouldn’t make traders forget about the writing on the wall.

Look, before last week’s unbelievable cold snap, the price of oil has been on fire – nearly doubling since October – and investors were piling in to oil stocks.

And with the U.S. and many countries around the world beginning to round the corner on COVID-19 outbreaks, demand for oil is about to explode in a big way.

So instead of bailing on the energy industry after last week’s events, I’m recommending that you buy.

And there’s one stock in particular that I have my eye on…

How do I get some?

With the future looking bright for oil prices, the name that I want to play is Occidental Petroleum Corporation (OXY).

This Houston-based oil and gas production company has had a huge run up since the October lows, and I believe it’s just getting started.

But don’t just take my word for it. Famed investor Carl Icahn has taken a big position in the company as well.

S.C.A.N. has been showing me a lot big call buyers of OXY recently, which is our queue to jump in as well.

And this play is just the tip of the iceberg…

A Wealth of New Trades Awaits You…

Every Monday through Thursday, subscribers of my elite research service, 1450 Club, get an inside look at where the biggest money on Wall Street is flowing.

By tracking institutional order flow in real-time, my S.C.A.N. system is able to show me the most heavily bought stocks and options on the market.

I then provide 1450 Club subscribers with instructions on the exact trade to take that could potentially lead to 100% profits in just a few short weeks or less.

1450 Club subscribers already received one new recommendation yesterday that could double their money – and plenty more are on the way.

There’s still time to get in on the next trade recommendation. Will you be a part of it? Click here to learn more about the incredible profit opportunities available to you in the 1450 Club.

In the Spotlight: Come Fly with Me…

The time may soon be approaching to jump back into the airline industry.

After more than a year of travel restrictions and a massive loss in demand, air travel is primed to rebound in a big way.

Deutsche Bank estimates that U.S. consumers have saved close to $1.5 trillion since the pandemic began. And I believe those savings are going to be unleashed in a big way soon.

Airlines are going to be a huge beneficiary. People have been cooped up for too long and desperately need a vacation.

I’ll be back later this week with my thoughts on the best airline and travel plays to make. Stay tuned.

Community Tips

Inline Feedbacks
View all comments