Customer Service 1 (888) 261-2693
Advanced Search

This Small-Cap Stock Just Landed a Revolutionary Energy Deal

By Frank Curzio, editor, Small Stock Specialist
Friday, September 9, 2011

We just got confirmation...
Fifteen years may not seem like a big deal. After all, some estimates indicate the U.S. has over 60 years' worth of natural gas waiting to be extracted. The problem is if demand rises.
As I explained in my last essay, I expect it will... and a new deal confirms it.
You probably haven't seen details on this deal in the paper... or seen it on the news. But it's the start of a new era in energy use. And it's going to mean big profits for a few small companies...
On Wednesday, Westport Innovations (NASDAQ: WPRT) signed a landmark agreement with oil giant Shell.
Westport is the largest manufacturer of natural gas engines. It has partnerships with some of the largest engine makers in the world, including Cummins (U.S.), Weichai (China), Hyundai (Korea), and Volvo (Europe).
Westport is also one of four companies in a special report I gave my Penny Stock Specialist readers: "How to Make a Fortune on the Shale Gas Megatrend." Subscribers are up 80% since my recommendation.
Now, Shell is working with Westport to market liquefied natural gas (LNG) vehicles in North America.
Under the terms of the agreement, both companies plan to develop industry standards for LNG as a new transportation fuel. They will provide proposals to their customers on how they can save money through LNG technologies.
Shell is the first major oil company to back LNG as a transportation fuel. Over the past few months, natural gas giants Encana and Chesapeake have made big investments in building out the LNG vehicle infrastructure.
Once the infrastructure is in place, millions of heavy-duty trucks in the U.S. will switch their engines over from diesel to natural gas. In fact, UPS, Ryder, and Waste Management have made the switch to natural gas engines for some of their fleets.
LNG as a transportation fuel would significantly knock years – if not decades – off natural gas supply estimates. Westport is just one company that will be a huge beneficiary.
Next week, I will provide a few more small-cap ideas that will make outsized profits on the natural gas megatrend.
Good investing,
Frank Curzio

Further Reading:

"On July 6, the EIA released a detailed report estimating how much natural gas the U.S. has left in producing shale areas," Frank wrote last week. It was a shocking reversal...
And now, "if demand surges and reserves are not as big as originally thought, we could see a sharp move higher in natural gas prices in the coming years... a move few people expect."

In The Daily Crux
Market Notes
Big gold miner fund GDX breaks out to an all-time high... up 25% in just three months.
One month after the market bottom... S&P 500 is up 7%.
Euro looks poised to collapse... currency sits near a five-month low.
Uranium is still pointing down... supplier USEC touches a fresh all-time low.
Market Watch
Symbol Price
S&P 500 1173.97 -2.5% +7.7%
Oil (USO) 34.46 -0.7% +4.0%
Gold (GLD) 181.81 +2.7% +48.2%
Silver (SLV) 41.22 +1.7% +111.4%
U.S. Dollar 74.49 +0.4% -9.6%
Euro 1.42 -0.4% +10.8%
Volatility (^VIX) 34.32 +2.8% +47.6%
Gold Stocks (^HUI) 635.04 +1.8% +30.4%
10-Year Yield 1.99 -2.5% -24.9%

World ETFs
Symbol Price
S. Africa (EZA) 67.26 -1.8% +14.2%
S. Korea (EWY) 54.60 -2.7% +10.1%
Canada (EWC) 29.34 -0.7% +10.1%
USA (SPY) 119.04 -1.0% +10.0%
Taiwan (EWT) 13.30 -1.9% +8.0%
Singapore (EWS) 12.73 -1.7% +4.7%
Japan (EWJ) 9.45 -1.3% -1.1%
Lat.America (ILF) 45.49 -1.6% -1.3%
Russia (TRF) 17.99 +0.5% -3.7%
Israel (ISL) 14.03 -2.9% -6.9%
China (FXI) 36.95 -2.4% -7.4%
India (IFN) 27.04 -1.2% -12.8%

Sector ETFs
Symbol Price
Internet (HHH) 76.23 +0.3% +27.8%
Oil Service (OIH) 130.25 -1.3% +26.6%
Retail (PMR) 19.70 -1.0% +21.5%
Big Tech (QQQQ) 54.39 -0.5% +18.5%
Consumer Svcs (IYC) 66.73 -1.0% +16.2%
Health Care (IYH) 67.85 -1.0% +14.3%
Big Pharma (PPH) 67.23 -0.8% +12.5%
Basic Mat (IYM) 68.62 -1.3% +12.3%
Utilities (XLU) 33.48 -0.1% +11.5%
Media (PBS) 12.58 -2.0% +9.7%
Real Estate (IYR) 56.21 -0.7% +9.6%
Semis (PSI) 12.91 -1.5% +9.4%
Biotech (PBE) 19.49 -1.4% +7.2%
Industrials (IYJ) 58.43 -1.5% +6.9%
Telecom (IYZ) 21.60 -0.9% +6.6%
Water (PHO) 16.38 -1.9% +6.0%
Transportation (IYT) 80.73 -1.1% +2.6%
Defense (PPA) 16.79 -1.3% +2.3%
Software (PSJ) 21.79 -1.9% +2.2%
Construction (PKB) 10.89 -2.0% 0.0%
Insurance (PIC) 13.97 -1.3% -4.0%
Financials (IYF) 47.36 -2.0% -7.0%
Nanotech (PXN) 7.04 -0.6% -14.0%
Alt. Energy (PBW) 6.84 -1.7% -24.8%

Recent Articles