Profit From LNG Exports In The U.S.
The December 2012 issue of Yield Shark investment newsletter targeting income oriented investors was just released late last week in accordance with their normal monthly publishing schedule.
First I will say that the quality of the publication is entirely first rate. This is not some one-man-show newsletter hand typed on an old typewriter in the back room. The issue is well produced.
Which is nice, but what does that do for your portfolio?
So far, much and not so much.
The Yield Shark portfolio has done quite well with only one issue losing, and that was over and done with quickly – something I have written on before and won’t go into again.
The only disappointment otherwise is that the team typically tries to hand down one specific new recommendation per month, and since last months reco still has not fallen to the “buy price” guidance. This is good on the one hand, because you make money when you buy – not when you sell, and you also determine your dividend rate of return based on your purchase price of the security.
So knowing what investment to buy is only part of the story, knowing the price to pay is the next.
Lastly, though, and this is one thing the Yield Shark team is good at, is determining your exit strategy for an investment. This includes a stop loss price and a “take your money and run” price as well.
In addition, though, there is the – something went wrong, get out, time too.
These are perilous times for investing and why you want a seasoned investment team looking out for you and your money.
This issue of Yield Shark includes a recap of investments that they are already in and out of, including one they would love to get back into under the right circumstances, and an update of current holdings.
A Comment On Buy Guidance and Stop Loss Orders
I have to comment again, though, about the stop loss orders – I know, I wasn’t going to. One issue in the portfolio is down just a bit, but is only about a 1/2 point over the stop loss. OK, so what?
So what is that one feature I do like about Yield Shark is that it gives guidance to new subscribers for existing portfolio holdings. I mean, what good is it to see that a stock recommended 8 or 10 years ago (older newsletters) is up 500% and still in the portfolio – what do you do with that piece of information as a new subscriber?
Well, this one issue is still a buy, at roughly $35.40 for new subscribers. Stop loss: $35.00. Pretty tight.
This morning, December 31st, just 1 trading day after a new subscriber may have taken action and bought at $35.42 (average price for Friday, December 28th, first opportunity to trade after getting the new Yield Shark December issue) the $35 stop was triggered. Hope you use a discount online stock broker and trade for under $20 round turn.
Maybe it’s not a TON of money, but a new subscriber who took action has to be frustrated at that. Especially since trading in thin holiday markets (even WITHOUT fiscal “cliff” talk can be hazardous to your money).
Subscribers who bought this stock pick at first recommendation in late Summer are down around 10% or so depending on exact entry price, commissions paid and taking into account a $72.50 “return of capital” payment collected (it is a REIT).
New Stock Pick – LNG Export Business
While I cannot give away the specifics of the recommendation, I can tell you that Mauldin’s Yield Shark researchers found a way to cash in on the coming LNG (Liquified Natural Gas) Export business that is almost surely to come to America’s heartland and ports.
Don’t you just love the paint job on that LNG Tanker photo in the upper left?
This stuff isn’t easy to work with, it will likely encounter lots of politics and even the environmentalists, but we sure seem to have plenty of it available all of a sudden.
And that is providing JOBS! in America’s time of need. Good paying jobs, with cheap energy to boot.
The LNG cash machine isn’t exactly in full swing just yet, but many companies are getting to where they are well positioned to sell the energy we have here in abundance to locales around the world where they are willing to pay much higher prices for it.
Prices high enough to make it worthwhile to pipe it, refrigerate & compress it, load it onto a ship and take it overseas and then reverse the whole process.
To learn more about how your portfolio can participate in the LNG Export boom or to learn more about the Yield Shark investment newsletter from (John) Mauldin Economics, click here