The Money Map Advantage
Wednesday, July 20, 2005
By Horacio Marquez
Email – #1
**
Energy, Energy, Energy
I want to warmly welcome you to the Money Map Advantage. I have been preparing the very best investment choices that the Money Map system can provide. Many of the ideas that I had identified through the system are already rallying strongly. Some of the most notable examples are TIE, HANS, CCJ and STEM.
A close Wall Street friend who covers hedge funds tells me how fast investment ideas disappear these days and get arbitraged out immediately. So, I am going to provide you with a company that to my knowledge, nobody on Wall Street covers and very few understand. Yet, its stock is well on its way to very high price gains: Westmoreland Coal (AMEX: WLB).
Our Money Map system points to a multi-year global economic expansion, which is benefiting commodities and especially energy – and within energy, oil. So why not go with an oil-services company or an integrated producer? Because I can add more value with Westmoreland Coal.
Westmoreland has been around for some 150 years, but is in the midst of converting itself from a West Virginia underground production operation to a modern, efficient and diversified, low-cost producer of coal and other alternative fuels. It also owns and operates coal and gas-fired electricity generators on both coasts.
Nothing like a strong turnaround in a hot industry to embellish the portfolio…
Why not Arch Coal or another of the larger-cap coal companies? Because, unlike the others, Westmoreland has all but one of its mines adjacent to a conveyor or short rail or truck haul from its principal customers. This gives them a huge advantage, because the likelihood of disruptions because of rail problems, like the one announced a few days ago by Arch Coal, are minimized. Also, Westmoreland is growing strongly, building a top-notch management team and enjoying considerable tax-loss carryforwards. As its long-term sales contracts expire, it is getting higher and higher prices.
Why now? Westmoreland missed in the first quarter as it cleaned several “skeletons” and announced a challenging second quarter because of scheduled maintenance in some of its electricity-generating plants. But the stock more than discounted this with the pummeling it reflected. Now it is firmly on the rebound and the industry is “on fire.” On Tuesday, we saw two new industry highs in coal: BTU and CNX.
Finally, a director who already owns 10% or more of the company bought almost $250,000 worth of the stock on July 7. Whenever he has bought in the past the stock has rallied dramatically.
**Action to Take ***
Buy Westmoreland Coal (AMEX: WLB) at $25.25 or better. And place a sell stop at $20.20 for protection. There are no options available on this company, but its volatility should more than compensate for this. More conservative investors should buy equal amounts of stock over time to average cost their purchase.
Enjoy and profit,
Horacio Marquez
If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or e-mail: viptrader@oxfordclub.com , or Mt. Vernon Publishing at 888.384.8339 or 410.230.1200.
Stock
Current Price
Comments
Westmoreland Coal (AMEX: WLB)
New
Buy at $25.25 or better. Place a sell stop at $20.20.
Market Watch
NASDAQ
1528.95
0.00
SP 500
813.88
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DJIA
7749.81
+89.84
As Of 6:11AM 3/26/2009
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