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Elliott H. Gue

Now, $17 billion in US-backed energy bargains

By Elliott H. Gue

Editor of The Energy Letter and The Energy Strategist

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30 October 2008 @ 05:25 pm ET
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"Wait to invest until you can walk across the room and pick up money."

Dear Investor:

That about sums it up for alternative energy right now. Congress reached into its money bags and found $17 billion in tax credits for alternatives. And there's a lot that's new.

But what should really make us investors stand up and take notice? The really big news is this: There's NO cap on the solar systems eligible for the 30% federal tax credit for the next eight years.

The old cap of $6,667 on solar purchases covered solar panels but was too little to pay for ancillary systems. Now that Congress has squashed the cap on "qualified" solar energy purchases, the entire works, including solar panels, storage devices and power conditioning systems will all be eligible for the 30% federal tax credit -- both residential and commercial solar power.

We're looking at a $325 billion investment at least in the US solar industry. This is beyond huge.

And there's more great news for us investors. We have a one-year extension of tax breaks for wind energy. Plus there's $8.3 billion in write-offs for corporate R&D in renewables, conservation and electric cars. Plus, incentives for biofuel production and biofuel filling stations.

Bottom line: All of this is just the spark needed to light a fire under a handful of specially-selected stocks I want to tell you about.

Solar Energy: Every Home (and Office) a Power Plant!

You can make your own home a mini-power plant with "free" energy and take a 30% federal tax deduction. And if that's not an incentive for investors, too, I don't know what is.

Congress made its biggest bet to date on solar power. As I mentioned above, Capitol Hill swept away the cap on "eligible" solar purchases. Not just for homeowners, but for offices and industrial parks, too.

So, with no cap, the systems that support solar panels are now 30% tax-deductible. Can you see why we're so bullish on solar power? And the new solar cells are low-profile, smaller, very unintrusive and totally efficient.

My favorite sun power pick

My favorite solar energy pick designs and manufactures solar cells for commercial and residential markets. It’s a one-stop solar shop.

What I like about this company is its solid technological lead in the solar market. The key metric to look at is what's known as conversion efficiency—or, how well a solar cell turns solar energy into electricity.

The standard solar cell has a conversion efficiency of 14 to 16 percent. So, just compare: This company's state-of-the-art cells manage closer to 22 percent. And I'm not just talking about averages here--this is the highest efficiency ratio of any company in the solar industry, anywhere in the world.

So, these cells produce more energy then the competition with a far smaller cell. The benefits are clear. Homeowners do not want a gigantic solar panel bolted to their roof; smaller is definitely better. This is precisely why their products command a premium price.

Surging solar power demand means a skyrocketing demand for polysilicon, a key raw material for solar panels. Supplies just havn't kept pace; polysilicon prices have soared, and it's often tough to get supplies at any price.

But due to this company’s design and technology, its cells use less polysilicon than the competition -- a major advantage in a supply-constrained market. Patents covering most of the company's industry-leading technologies aren't due to expire until after 2013. This competitive advantage is here to stay.

Of course, the alternative energy sector provides opportunities way beyond sun power. And I offer you access to all of them with the solid, proven, investment strategies you’ll find only in The Energy Strategist.

Waste-to-energy: let's talk trash, seriously

Every town and city in America must dispose of its trash. Tons and tons of it every day.

No matter what's going on in the economy, no matter who's sitting in the oval office, no matter who wins the Superbowl -- trash-to-energy can give investors some really solid returns with very low risk. Waste-to-energy is booming with 100 new plants slated to be built in the US by 2012 -- just four years from now.

It's a totally cyclical, recyclable business. It takes municipal solid waste -- waste from every household -- and produces pure energy.

It helps the environment, too. Since waste-to-energy reduces what we bury in landfills, it also cuts the methane gas in the air we breathe, a gas many times more potent than carbon dioxide. And, waste-to-energy plants may also qualify for those nifty carbon credits.

My favorite pick is the current leader in the US waste-to-energy market. Their current tally of US waste-to-energy plants is 34 in 15 states. The company operates mostly under long-term contracts, with many contracts up for renewal over the next few years.

But what's so exciting about this company is its growth potential beyond the US market. The company already has joint ventures in China. And the Chinese, who are now building a coal plant every week to keep pace with energy demand -- are looking for every way possible to produce more power. Generating power from the waste of 400 million Chinese households is a mandate for the Beijing government -- there just aren't enough landfills on earth to bury that much municipal waste.

And while China's population will continue to grow, India is expected to race past China as the world's most populous nation -- 1.75 billion by 2050. Same waste problem. Same waste solution: convert it to energy.

Besides North America and Asia, my favorite US waste-to-energy company also operates in Europe where the EU has ruled that all member nations must reduce their landfills by 50% in 2009. Think about that. The population of Europe stands at 730 million. So, in just a few months, our European friends can bury only half as much waste. Only half as much waste every day from 730 million humans. What will Europe do with the other half of all that trash? Convert it to energy. Can you see why we're so excited about the potential of this waste-to-energy company?

Wind Power: Free energy day and night

Obviously, wind blows both day and night, and is economical in some markets with no subsidies at all.

Why? The efficiency of wind turbines has improved dramatically. A modern wind turbine produces more than 150 times the electricity at less than half the cost of a same-sized turbine in the late ’80s. And investors are taking notice.

My favorite wind power pick is the world's largest producer of wind turbines with more than a one-third share of the global wind turbine market.

In fact, company revenues have grown at an average annualized pace of close to 33 percent for the past five years. The company has used its dominant market share to negotiate more-fluid supply arrangements for components. They’re investing in new manufacturing capacity for key components -- windmill blade manufacturing facilities in the US and Spain as well as a control system factory in Denmark.

Meanwhile, they continue to announce major new orders; management says that at a minimum, the company will maintain its 35 percent market share. The list includes new orders in China, Europe and the US. This pick remains the premiere pure-play on global wind power.

Turning straw into gold: no fairy tale

If you’ve seen the headlines touting straw into "green gold" you may have been reminded of the Grimm Brothers’ fairy tale. But this story is for real.

Investors are already aware of the problems with the highly-touted first-generation ethanol.

So, longer term, informed investors are now looking for plays in second-generation or cellulosic ethanol. Second-gen ethanol can be made from switchgrass, weeds, corn stover, giant reeds, sawdust, fast-growing poplars and yes, straw.

Cellulosic biomass doesn't take food out of the global chain. Plus, "cell ethanol" is much cleaner. According to a researcher at Argonne National Lab, cellulosic ethanol shows 80% less greenhouse gas emissions over gasoline, while corn ethanol has only 20 to 30% reductions.

And, according to the U.S. Energy Administration, without "significant" cellulosic ethanol, total ethanol made in the U.S. would be only 11.5 billion gallons in 2017.

But there are some hurdles to bringing next-generation ethanol to market. Breaking cellulosic biomass into simple carbohydrate chains is complex and costly at present.

So, look at it this way: Right now, the cost of corn ethanol hovers around $2/gal, competitive with gasoline when crude tops $70/barrel. Some analysts say that if the cost of making cellulosic ethanol could drop to $1.30/gallon, it would be competitive with gasoline made from crude at $44/barrel!

The technology to produce cellulosic ethanol isn't ready to go commercial at this moment, at least not on any demonstrated scale. However, one of the keys to developing cellulosic ethanol will be designing specialized enzymes that can break down these materials cost-effectively:

The global leader in cellulosic ethanol and my favorite ethanol-related pick

This company is already the global leader in enzymes, both consumer and industrial.

Lately, they're partnering with the U.S. Dept of Energy (DOE) on research projects involving enzymes for cellulosic ethanol production. This world leader is already at the cutting edge of what should become the next big biofuels revolution—cellulosic, or next-generation ethanol.

Of course, there's more to the company than just ethanol and research on cellulosic ethanol. The company also makes enzymes used in detergents, food production, animal feed and even pharmaceuticals. Although these markets might sound boring, the money potential is not.

And if you're wondering how safe is your investment, be assured this is no fly-by-night company. It has a market capitalization well north of $5 billion.

Oh, and one last point… if you’re looking for a bit more confirmation that the alternative energy sector is going to boom, even without this huge 17 billion infusion of money, just consider that the U.S. Department of Energy and the Department of Defense are working closely with the energy companies that I’m tracking in The Energy Strategist..

Beyond alternatives: other overlooked plays

You can snap up some great bargains in other energy sectors, too.

For instance, if you like the idea of high-tech outfits with ready-right-now products that are set to revolutionize two industries, you've come to the right place. And I can give you other huge, overlooked plays that should give you eye-popping returns up to 75% at least in the next 12 months … in offshore and onshore extraction, natural gas, coal, rail & high seas freight.

My top picks range from:

... sleeping giants – companies right under our nose but off the radar, racking up huge profits, to

... innovative space-age technology to pull oil and gas reserves once thought unreachable, to

... incredible new materials (remember the revolution velcro started?)

Please take a moment to examine the great bargains coming your way right now.

MLPs: Mastering the Art of Safe & HIGH Dividends

Income investors now have the best buying opportunity of the past two decades: A chance to lock in double-digit yields from firms with conservative management and a long history of boosting distributions.

Consider: the current yield on a 10-year US government bond is less than 3.7 percent. But some of my favorite energy-levered Master Limited Partnerships (MLPs) yield more than 4 times that. Better still, many MLPs have minimal exposure to falling commodity prices and their fundamentals are as strong as ever.

If you doubt the fundamentals, here's a simple fact: Every single one of the MLPs I recommend has boosted distributions paid to investors at least once over the past 12 months.

Several have already declared increases in their payout for this quarter. Moreover, every one has equal or better distribution coverage than was the case one year ago. That’s hardly the sign of a sector in fundamental distress.

There’s no denying that most MLPs are trading off their July 2007 highs. And I believe the reason for this was artificial selling pressure from cash-strapped funds, not limping fundamentals.

96% Boosted Distributions

There are currently 50 MLPs in the Alerian MLP Index. And 48 of them have increased distributions at some point over the past 12 months. That’s 96 percent.

As I write this, a total of 36 of the 50 MLPs in the Alerian Index have officially announced dividends for the third quarter. Of those, 75 percent have increased their quarterly payout.

Low Exposure to Commodity Prices Means Little Risk for Safety-Conscious Investors

Most MLPs own pipelines, storage facilities and gas processing plants, the so-called energy "midstream". These assets generate cash based on volumes of natural gas or oil not the value of that oil or gas.

Also, many pipeline operators charge a fixed fee to transport oil and gas on their lines. This fee doesn’t vary. So, it really doesn’t matter much if oil is at $180 a barrel or $60 a barrel. (An exception is the "upstream" MLPs that do see their cash flow vary with the price of oil and gas. However, most of these firms have hedged most or all of their production. They’ve locked in decent rates no matter where oil prices go.)

Value Investors: Skimming the Cream Really Cheap

In recent weeks, sharp drops in some of the big MLPs have attracted buyers like bees to honey. And it's no surprise that value-stock shoppers are grabbing the ridiculously low valuations wrought by distressed institutional sellers.

A perfect example of this is one of my favorite MLPs, and one of the most predictable, cash-generating businesses in my conservative portfolio. As noted above, a large trade at the open Oct. 8 pushed the stock down to $16. But this venerable company rallied right back close to $20, and that move came on a near-record volume of more than 6 million shares.

As always, my focus when evaluating income stocks is dividends, dividends, dividends.

Right now, I see 10 -- that's right, ten -- MLPs on my "buy" list with great, sustainable dividends. And you can snap them up at rates so low it’s close to absurd. These companies run a tight ship with a long history of boosting distributions. And allow me to repeat, these MLPs are some of the best value plays to land in an investor's lap in years.

Quicker than you can say "Boone Pickens"

This may be an election year, but The Energy Society makes profits for you no matter where the political winds blow. And there are times when presidential politics actually help us make money, and right now natural gas is front and center.

Now seen as the clean "transition fuel" to an alternative energy future, natural gas is this year’s energy king of the road. Compressed natural gas, now used to power most US city bus fleets, is being touted as a cheap consumer fuel for your own family Ford.

Plus, another top energy performer may build America’s first LNG (liquefied natural gas) EXPORT terminal. Since natural gas prices are off the chart in Europe and Asia, what an incredibly bullish development for US investors! We’re looking here at a ground-floor opportunity similar to Exxon Mobil 20 years ago.

I see this stock headed up at least 100% in the next 12 months. You’ll get all the details in my new Special Report, Ten Energy Superstars Set for Super-Nova Gains when you join The Energy Society.

If we develop only some of the gas reserves in our Barnett and Haynesville Shales, the US will become the world’s # 1 producer of natural gas, kicking Russia into second place. Natural gas has propelled a lot of Moscow’s conspicuous new wealth and the US has even more reserves!

I expect natural gas prices here at home to rise at least 30% by New Years. To be sure, every gas production stock in our current portfolios have performed beautifully ... but only one is the unchallenged leader in unconventional oil & gas extraction.

Some people think gas sits underground in a dome, just waiting for someone to stick in a big pipe straw and suck it

out. Once upon a time, maybe, but no more.

These days most U.S. gas is trapped as tiny bubbles inside porous shale. To get the stuff out, you have to blow up the rocks – underground. Drilling straight down doesn’t pay, either. Better to come in slantways.

None of this is easy – devilishly difficult, in fact. But this company has mastered this highly complex feat and been rewarded with a skyrocketing stock price (up 118% in the last eight months). With demand for gas in a steady climb, I foresee an even brighter future for this stock in 2009. Why? It’s already scooped up the biggest acreage in the most exciting natural gas reserves right here in the US – trillions of cubic feet of it!

Learn about this gas production kingpin – and nine other on-fire picks – in the Special Report created for new Members only: Ten Energy Superstars Set for Super-Nova Gains. I’ve chosen 10 such under-the-radar picks set for gains up to 100%. You can’t buy this report because it’s not for sale – at any price. I drafted it for the exclusive use of new Energy Society Members, to introduce them to our way of investment thinking. This is the first time I’ve mentioned its existence. The information on joining us is right here.

Treasure at the Bottom of the Sea: Offshore Oil & Gas Drilling

Offshore drilling. It’s another giant investment hot spot where the political winds will blow some investors to a mighty fortune.

Both presidential candidates have come out for offshore drilling – McCain enthusiastically, Obama guardedly. What neither has mentioned is that U.S. offshore reserves may be dwarfed by newly-discovered, monster-sized fields just to our south.

Take the giant Tupi field. Found off the coast of geopolitically-stable Brazil less than two years ago with a 7-8 billion barrels of light crude, Tupi is the most promising offshore site in the world. But if you think pulling gas out of rocks is tough, try drilling for oil two miles down in the wind-swept ocean – plus two more miles beneath the seabed.

Ten years ago – even five – this was impossible. Today the technology exists but the challenges are formidable: Drilling at unheard-of depths, through mile-thick layers of drillbit-busting salt, risking life and limb in a place where chopper rescues occur every day. With billions of dollars at stake every time they send down a probe, oilfield developers must get it right the first time out.

One company excels at such challenges. Its seismic expertise helps developers know exactly where to sink the hole. Its offshore rigs and drilling equipment function at undreamt-of depths. And, it operates in virtually every country where oil and gas are extracted, giving it a breadth and depth of experience no other firm can match, or even come close.

The five-year trendline on this company is a steady climb upward churning out great "paydays" for my readers --- up 300% in just the last three years alone. And right now this stock price provides you a super buying opportunity with 50-60% upside in the next 12 months.

I can’t think of a better candidate for an "Energy Super-Nova." Discover this company’s potential – along with the other "Energy Superstars" – in the Special Report available only to new members. For full details, go here.

Oil & Gas "Muds": High-Tech Lucky Strikes

Who made the big bucks during the Gold Rush? Not the prospectors. It was the folks who sold them their blue jeans, picks and shovels.

Similarly, the oil & gas service firms with high-tech extraction know-how get rich long before the producers, who invest kajillions then pray for high prices when the wells finally flow.

Back in 1908, the old wildcatters pumped in actual mud to plug their holes and prevent gushers, but the comparison stops there. Today’s "muds" are tasty cocktails of complex chemicals, injected in a delicate balancing act controlled by the most sophisticated software.

Squeezing every ounce of oil out of mature wells is a "take a number" specialty these days around the globe. Servicing "mature" or "challenging" wells requires tons of equipment and manpower on the ground to keep the juice flowing. And the best service companies have oil-producing "SWAT" teams at the ready they can deploy anywhere if production hits a snag.

As you can imagine, this expertise does not come cheap. The day rates for these service companies have no ceiling and are approaching $1,000,000 a day. Why, you may ask me?

Because many oil majors, who made heaps of money drilling simple, vertical wells in the 1950s, did not develop the techno-how to keep the old wells flowing. Simply put, the contract super-drillers are sitting right in the catbird seat doing what the oil majors cannot do. These contract drillers are making money hand over fist and so are their investors.

And I have a great way for you to play it: I can show you a trailblazing service outfit that squeezes new oil out of old wells with a tricky "underbalanced" drilling technique, pumping in specially weighted gels, or "muds," to prevent a wasteful blowout.

The sky’s the limit for this company. We’re up 57% on it already. It’s one of the brightest of my "Energy Superstars". Become an Energy Society member today and learn all about it. Just go here.

Dirty Business, Dazzling Profits

Quick – what’s the dirtiest, grubbbiest, most grimy fuel you can think of?

If you answered ‘coal,’ please go to the blackboard and write 50 times, "I will keep an open mind."

• Dirty? Technologies exists to scrub nearly every bit of sulfur and nitrous oxide out of coal smoke, and to sequester almost all the carbon underground. We identified 12 go-go power companies that make extensive use of these technologies – and you’ve probably never heard of a single one, because they’re all located in countries with progressive attitudes about the potential of clean coal.

• Grubby? We may not be able to put all our abundant coal reserves to good use ourselves, but we sure have plenty of it. With nearly 30% of the world’s proven coal reserves – enough to last over 200 years – it’s no wonder they call the U.S. "the Saudi Arabia of coal." The world’s coal appetite is voracious – 95 new coal-fired plants each year in China, Russia and India alone. And good thing for us investors, too. Where will those countries buy their grubby, old coal? You get just one guess – the US of A.

• Grimy? Tell that to our European friends who are inking long-term, lucrative, contracts with US coal producers right now. Since energy-hungry China snatched Europe’s coal out from under them, Europe is scrambling for our "grimy" coal. US coal is a good deal despite the high transport coats of shipping tons of it across the Atlantic. And our US coal producers are shipping coal out of our Pacific ports to – you guessed it – China. Our cheap, high-grade, abundant coal is more than a national treasure – our coal exports are a cash machine for astute energy investors.

We’ve made a young fortune on our coal picks this year, and I see plenty of upside (53%) left in our most bullish coal picks:

A standout U.S. mining company. It’s the world’s largest pure play on coal-in-the-ground, with massive reserves in the U.S. as well as Australia. The domestic coal is the low-sulfur kind power plants love and close to the surface where it’s cheap to mine, while the Australian coal is prized by Chinese steelmakers. Since I recommended this company last year, we’re up 53%. I foresee at least another 53% plus!

And, a company it spun off is up even more – 54%! If I were stranded on a desert island with no access to information ... forced to buy a couple of great stocks and stick with them .. this is one of the handful of companies I would buy.

A high-tech French Connection. This company builds and supplies clean-burning coal-powered plants, plus much more – from nuclear and gas-fired power-plants to the "supersonic" bullet trains that streak across Europe and Asia. We’ve seen a 20% rise in the last six weeks in this stock, but it’s not too late to climb aboard. I’m looking for another 40% in the next six-12 months.

You'll get all the details on these breakout picks in my Special Report: Ten Energy Superstars Set for Super-Nova Gains. There’s only one way you own a copy of my Energy Superstars Report – by joining us today as a New Member of The Energy Society. For information on getting your personal copy, please go here.

Boring Business? Bountiful Profits

Still keeping an open mind? There’s another supposedly "boring" industry so many investors overlook -- freight rail. But with profits up to 70% in 2008, you won’t want to pass on this cash machine. And here’s why ..

• Rail is the most energy-efficient ground transportation. Trains ship a ton of freight 436 miles on a gallon of fuel – 3-4 times more efficient than trucks. Rail ton-miles have surged close to 90% since 1980, but rail fuel consumption has barely increased – 5% in the same period, vs. 68% for trucks. With oil prices skyrocketing, freight rail seems destined to grab the lion’s share of shipping from the trucking industry.

• Coal is the railroads’ most important freight. And its most profitable. You can view freight rail as another great way to play coal.

• Food and agricultural products are a close second. With food and energy prices climbing in parallel, train operators are ideally positioned for long-term profits.

Rail stocks have treated us right and then some. Since last February, two major carriers I’ve selected are up over 70%. Yet these stocks still are trading at reasonable prices given their bright futures. Buy them now and watch for growth of at least 42% in the next 12 months.

Are these two rail carriers also "Energy Superstar" stocks? Most definitely. I explain how they qualify – and what sort of returns you can expect from them – in that Energy Super-Nova Special Report available only to New Members of The Energy Society. Here’s how to get your copy.

20% plus Dividends? Why Not?

If you think trains are efficient, consider ships. On a teacupful of fuel, they haul oil from the world's most distant exporting regions to the U.S. and other thirsty nations.

Ocean shippers are – surprise! – a very solid investment. Industry growth is conservative from the difficulty and cost of commissioning giant new tankers. But the companies are cash cows for sure, charging $250,000 a boatload when their own costs are a mere $40,000.

What do the shippers do with all that extra cash? Pay it to you – in dividends sometimes exceeding 20% per year. But you must be cautious investing in tanker companies. The stocks can be volatile indeed, and woe betide the investor who buys in at the top of the cycle.

That’s why astute investors rely on The Energy Society – to identify safe plays with big paydays. Tanker companies’ moment may be at hand. One is paying us a whopping 19% dividend right now!

So, if you're looking for something 10 times more rewarding than 2% yields from the S&P, check out the tanker stock I’ve included on my "Ten Energy Superstars" list. We’re up 57% on it already. It’s one of the brightest of my "Ten Energy Superstars". Become an Energy Society Member today and learn all about it. Just go here.

Want more high-tech energy bargains to charge up your portfolio?

Here are two more ...

1) The manufacturer whose incredible, revolutionary, lightweight carbon composites are the reason the worlds’ airlines are already mothballing their fuel-guzzling aircraft and replacing them with lighter, fuel-conserving planes. These very same carbon composites are used to manufacture wind-turbine fans sprouting from coast to coast and continent to continent. No wonder this company’s stock is up 17% in JUST the last 45 days. So, think of the profits you can bank when, one by one, the world’s airlines replace their fleets! And in the meantime, you can feast on the hefty profits (at least 40% in the next 12 months) their wind turbines will blow your way right now.

2) And here’s a company that’s a 21st century alchemist, turning lumps of coal into liquid gold – gasoline and diesel fuel. Their technologies are light-years ahead of everyone else on the planet – because they’ve been refining them (excuse the pun) since before World War II. We’re up 45% on this stock since we first recommended it. We see at least 40% more upside in the next 12 months and that's our conservative estimate.

From Cautious to Daring, We’ve Got You Covered

Would you associate energy with high technology? Most investors would answer "no" – but, as you can see, we aren’t like most investors. We stay focused on the basics – growth in demand, shortage in supply – and that takes us to the most unexpected places.

While we offer you results-producing portfolios with picks ranging from a "conservative" 28% to an "aggressive" 90%, fact is, we are neither. We choose each investment based solely on its potential – not whether it skews "conservative" or "aggressive" – then classify it to suit your investing style:

"Proven Reserves" Portfolio for more conservative, low-risk investments

We currently have 11 securities in this portfolio. Each pays a dividend up to an eye-popping 10%.

"Wildcatters" Portfolio for long-range investment gains

Seventeen holdings here, and we expect Members will hold these picks 18 months or longer.

"Gushers" Portfolio for aggressive positions.

The 12 stocks in our "Gushers" portfolio have ... well, they’ve broken every record. Overall performance: 90% gains in the past 24 months.

I also keep an eye on about 100 other companies in every nook and cranny of the energy universe, from sub-sea to solar. Every now and then, one ripens into a portfolio selection. Look for a list of these promising firms in our section called "How They Rate."

Your Password Is Your Passport ... to the Best Energy Bargains Out There

From the moment you accept our invitation to Membership in The Energy Society, you begin acquiring the knowledge to jump-start your investing success. And right now the spotlight is on the best bargain-hunting for solid energy stocks. Great bargains since some are selling well below book.

Armed with your password, you gain 24/7 access to all three investment portfolios plus the "How They Rate" stock monitoring service – and that’s not all ...

*** The Energy Strategist. This is your energy investment "Bible." Every two weeks, 24 times a year, I examine a new energy hot-spot in depth. Recent issues spotlight the natural gas boom, clean coal, freight rail and tankers, always including a selection of companies about to take off.

*** Flash Alerts. When hot news breaks that can affect your portfolio, I post a "Flash Alert." As Hurricane Gustav bore down, for example, I posted a Flash Alert notifying Energy Society members of the likely effect on production and refining along the Gulf Coast.

*** Instant E-Mails. When a recommendation is too hot to delay, I flash it to Energy Society members via e-mail.

*** My office phone number and email address. Yes, the e-mail street is two-way. Contact me any time with questions about my recommendations, your portfolio, or just for some plain old-fashioned hand-holding.

*** Unfettered access to the Energy Society website. Want to see what we had to say about pipelines back in June 2006? Oil refining, which we examined in March 2007? Every issue, every Flash Alert, is posted here and available to you 24/7.

*** Special Reports. From time to time I write special reports– white papers if you will – on evergreen topics such as interpreting quarterly reports and cutting your tax bill. When the moment arrives that you need such a report, it’s mere keystrokes away.

And lest we forget, you also get my exclusive report on those 10 "Energy Superstar" stocks – the handful of energy investments guaranteed to prosper despite market bumps, government meddling, weather, war or what-have-you. "Ten Energy Superstars" would be worth the price of Society membership by itself – if you could buy it. But you can’t.

It’s not for sale. There’s only one way to get your own copy – by joining The Energy Society today.

For Fence-Sitters Only

If you’re still with me, it’s because I’ve sparked your interest and imagination. You’ve glimpsed the great wealth that’s your reward when you sharpen your focus, do a bit of homework (we do most of it for you) and take your investments seriously. You’re ready to "go for the energy gold" ... but you need just a little something more to feel confident. You need a guarantee.

of your membership fee – every penny – with no questions asked, no hard feelings. Cancel anytime after that and get a full refund on all unsent issues.

It’s a bold guarantee but I make it with perfect confidence. No one quits The Energy Society once they see their wealth begin to grow and GROW.

Get More than You Bargained For

To ease you into Society membership, I’ve created a primer on how to get the most out of our many services. I call it The 90-Minute Wonder: Jumpstart Tips for New Members, and it’s yours F R E E when you accept our invitation for Society membership. And that’s not all you get F R E E ...

With A One-Year Risk-Free Membership Commitment ($399) you also receive . . .

^^^ The Nuclear Plant: Your Clean Green Money Machine. Uranium ore prices have skyrocketed from $5/lb. to $520/lb., but those tiny Canadian uranium mining stocks are as risky as anything around. Here’s your guide to scoring a bonanza in nuclear energy, from speculative wildcatters to sensibly conservative power companies.

^^^ The Future of Energy: Looking Back from 2030. A Great Energy War will go on for decades. It’s well underway already. Which energy sources will be stock-market darlings in 2015? 2020? 2030? Discover the big picture and the long view. To join The Energy Society for one year at $399, please go here.

With A Two-Year Risk-Free Membership Commitment ($729) . . .

^^^ Alternative Energy: Capitol Hill’s Gift to Investors. Congress has showered googobs of federal subsidies and tax incentives on alternative energy companies, and they’re likely to increase regardless of who wins the White House. This newly updated report guides you to the incentives, who gets them, and how they can put more money in your pocket.

^^^ Invisible Winners: The Five Least-Known, Slam-Dunk Investments in the Energy Field. Five hidden gems here, the kind that ordinary brokers don't have the time or tools to excavate from the Wall Street Swamp.

^^^ The ABCs of Options to Hedge Risk. Every cent of our spectacular profit history was made without a single option trade. No calls, no puts, no nothing. As "investments," these are nothing but risky sucker plays in all but the most experienced hands. But using options to hedge risk is another story – a way to have your cake and eat it too, protecting against market tumbles without selling your positions. This report walks you through the options process – what they are, how they work, what they can do for your investing strategy when used with discretion. To join The Energy Society for two years at $729, please go here.

Convenient quarterly option ($99) on a 'til cancel basis (credit/debit card, please). I don't want you to miss on on these spectacular gains, so I convinced my publisher (that's Walter Pearce) to offer you a QUARTERLY membership -- you can join for 90 days at $99 on a credit/debit card until you say quit. Now, you may cancel up to the first 90 days and get your money back, 100%. If you continue on a quarterly basis, you may cancel and get a refund on the unused portion of your membership. To join The Energy Society on a quarterly, $99 'til cancel credit/debit card basis,

please go here.

The Choice Is Yours

Now is the moment to decide. Will you keep floating along, buoyed by the occasional lucky score – only to see your picks collapse when the market hits an air pocket? I hope not – especially when great wealth is now within your grasp. I invite you to join The Energy Society today and let us multiply your money – up to 118% from here.

Cordially,

Elliott Gue

Founder, The Energy Society

Editor, The Energy Strategist

P.S. Hate losers? Who doesn’t! I’ve made my own list of the Dirty Dozen (well, the actual number is 11) energy stocks to avoid. You can get Elliott Gue’s Blacklist when you subscribe and, yes, it’s F R E E too, but ... there’s a caveat. We’re offering Elliott Gue’s Blacklist to the first 100 new Members ONLY. So please don’t wait one minute more. Join us now. And "Welcome!"

Meet Mr. Energy -- A Note >From KCI President, Walter Pearce

You may have seen Elliott Gue on ABC-TV, or heard him on CBS radio. Or, maybe you heard him report from the recent G-8 Summit in Japan where he was tapped to provide the global outlook for alternative energy for the Summit's official treatise.

As former editor of Wall Street Winners, Elliott Gue proved himself in the roughest investment terrain in recent memory.

Over a five-year period, including the vicious bear market of 2000-02, he made 18.2% profit a year for anyone following that broad-spectrum publication, while the S&P 500 lost 7.8% a year!

This triumph earned him the #1 ranking among the 121 investment advisories rated by The Hulbert Financial Digest. More important, he established a worldwide reputation as one who refuses to follow the herd over a cliff.

He founded The Energy Society and its main publication, The Energy Strategist, out of frustration with the short-sighted and spotty advice available to higher-level investors. He felt that mid-range investors were being served adequately by Personal Finance, which he also serves as an associate editor, but by late 2004 he was seeing the glaring lack of an in-depth array of services covering the entire energy field. Thus he launched the Strategist and, later, The Society itself.

Mr. Gue (pronounced as in argue) earned his Bachelor of Science and Master of Finance degrees at the prestigious University of London, graduating in the top three per cent of his class.

In 2006, he co-authored On the Silk Road to Riches: Discovering Wealth in a Changing World (Prentice Hall). He is now a popular speaker on the investment conference circuit.

The Energy Society is not a lightweight advisory, nor is it cheap. Twice a month it will bring you very specific recommendations for the middle- to high-end investor. You will find it easy-reading and non-technical. It has no parallel anywhere in the world today.

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