Signup for our free newsletter:

Oil Spill Clean-Up Company

Written By Christian DeHaemer

Posted May 3, 2010

800% Gain in Two Days!

Here in the Angel War Room, located in the penthouse of the 1012 Morton Building, we keep things light by pointing out the absurdity of the market.

Check out Enviroxtract, Inc. This is a penny stock whose only assets are an idea and a website:

Oil Spill Clean Up

The company claims it’s in the “oil spill clean-up business.”

I will grant you that its website does look good… The funny thing is that a look on Google Earth of their address reveals an empty lot.

empty lot 600x304

That’s just classic.

As the Baltimore native Henry Mencken said, “No one ever went broke underestimated the intelligence of the American public.”

US Microbics Inc (BUGS.PK) is another scam pennystock that has ramped up lately on the news of the Gulf oil spill. I don’t recommend these companies for serious investors.

Sure, if you want to take a chance and treat it like a sports bet, more power to you. But it is more likely the mighty Orioles will sweep the Red Sox than you’ll be able to jump out at the top on these penny stocks.

But There IS One Company that could Legitimately Show 800% Gains!

There is one tiny company that most people have never heard of that’s sitting on 638 million barrels of oil. My readers have already made 200% gains from this company in the past three months. And this massive profit run is just getting started…

This company is one of (if not the) cheapest stocks I’ve ever found. But the word is starting to leak on this company, and its stock is only going to go up.

Right now the market value of this company is $80 million U.S. — but the value of its 638 million barrels, at $80 a barrel, equals $51 billion!

Grossly Undervalued

To put this in perspective, let’s compare it to Anadarko Petroleum Corporation (APC). According to SEC filings, Anadarko had 2.3 billion barrels of oil equivalent (BBOE) of proved reserves at year-end 2009. (Click here for a more updated report on Anadarko Petroleum.)

The company has a market capitalization of $35.79 billion. (As you know, a market capitalization is the “total market value” of a company. You get this number by multiplying the number shares by the share price.)

Anadarko has $184 billion worth of oil at $80 a barrel. In other words, its reserves are valued at 5.3 times what the stock market values the company.

This Mongolian oil company I’m talking about would have to go up by 612.5 times to equal the value of its oil reserves.

So to be fairly valued in relation to Anadarko, it would have a market capitalization of $10.2 billion. Its market capitalization now is only $80 million.

The upside on this is so large… I’m not going to even do the math. The number would seem unbelievable.

And the company has two more large exploration blocks that it hasn’t even gotten serious about yet!

At this point, you can probably see why it’s my favorite stock — one you can’t afford to pass up.

Don’t kick yourself next month when it doubles again. Act now!

Christian DeHaemer
Crisis & Opportunity