Oil, Gold, or Copper – What Should We Be Buying Right Now?

Matthew Badiali, Editor

S&A Oil Resource Report

Oil, Gold, or Copper…

• New Name, Bigger Picture

• March to June – Commodities Rolled

• What is the contrarian play today?

• Is there a resource bubble forming today?

Looking Back…

78% 23%

114% 52%

Looking Back…

78% 23%

114% 52%

Looking Back…

78% 23%

114% 52%

Looking Back…

78% 23%

114% 52%

Looking Back…

78% 23%

114% 52%

The One Rule for Cashing in on Oil Today – Buy Now!

1. Oil Services were cheapest they’d been in 20 years2. Poised for another run3. They ran like scared rabbits

What We Did In March

Prepare to Buy…Six Major Cycles in Twenty Years

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1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

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Share Price

Oil Price

What We Did In March

• Contrarian • Oil services• Oil was $35 per barrel• Nobody wanted drill

rigs

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0.5

1.0

1.5

BV March 2009 BV June 2009

What We Did In March

Parker Drilling - $1.50 to $5.00in Three Months

What We Learned

• Spot the opportunity – Contrarians win

• Let the market tell you when to sell – Trailing Stops are Crucial

• Volatility is Opportunity

What We Can Do Today

The Next Contrarian Play

Welcome to the Gas Age

• Shale Gas is revolutionary

• Gas is locked in rocks like the pages of a book

• Two Technological advances in the last decade

• Constrained between $3.50 and $6.50 per thousand cubic feet…for now.

• Cap and Trade Legislation will change all that

• Only natural gas and nuclear power can scale up quickly

Welcome to the Gas Age

• Natural gas demand for power generation is inevitable

• Don’t run out and buy yet – this isn’t imminent

• CFTC could make it cheaper

• Buy it cheap - $3.50 per MCF

Prediction: Green Energy is the Next Bubble

The Green Energy Bubble

• We’re early enough to capitalize

• Valuations will fly out the window

• Remember to sell when the mania stage hits!

Thank You Very Much

Matthew BadialiS&A Resource Report

www.stansberryresearch.comwww.growthstockwire.com

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