- An overview of global or regional issues that are expected to impact the price of oil and natural gas going forward.
- OPEC activity – supply and demand – is there excess production or are they managing supply and demand properly?
- Worldwide storage – is it growing, stable or declining?
- Relevant Information from government and industry: S. Energy Information Administration (EIA), Organization of the Petroleum Exporting Countries (OPEC) and others
- World-wide conflicts and their effect on oil prices
- Transportation (infrastructure) issues with getting oil and gas to market
- Performance of crude oil, natural gas and the S&P/TSX Energy Index over the last month
- Outlook short term (< 3months), medium term (<1-year) and long term (up to 3-5 years).
- Red light – Amber light – Green light indicators on Energy Sector Overall Parameters: Value, Sentiment, and Technicals
Beginning with 6-8 companies in issue number one, we will build our coverage list into 20+ companies over time.
- Junior, medium, and large cap Energy Companies (4-6 each category)
- Energy Service Companies (2-4 over time)
- Our Focus: We are including only those companies that have:
- Attractive valuations
- Significant upside potential
- Good balance sheet and the people skills to execute successfully
Company Coverage entails three very important aspects:
Who is running the company? Do they have a good track record? How effective are their technical and people skill sets? What ownership do they have in their own companies? Who are the key outside shareholders of note? When was the company started? What is their exit plan and when?
Where are they operating? Do the projects have repeatability and scalability? What’s their growth and facilities timeframe? What’s the potential upside (one year and 3-5 years)? Are they operationally sound with low costs? Are they development and/or exploration focused? What are their time lines of activity and specific events to watch for? Do they have a High impact exploration time line?
What does the balance sheet look like? How have they been cutting costs over time? Do they have a low cost structure? Can they raise capital if needed? Do they grow via the drill bit or by acquisitions?
Targets and Timelines: each company will have a stock chart showing attractive buy or sell levels and targets for 1-year and 3-5 year ‘bull market peak’ timelines for subscribers to consider as they make their investment decisions.
A “Balance of Evidence” table summarizes each company report by showing both positives and issues of concern impacting their ability to reach their goals and potential, including issues we would like to see resolved or what we would like to see them do to succeed.
This will be an ongoing list showing the basic financial information of all the companies that are being covered. We will add to this list over the initial months until we are covering over 20 companies that meet our criteria.
Top Picks List
This list will initially be small but will build up as stocks reach attractive purchase or sell levels and are added via the Action Alert notice sent to Black Gold level subscribers. (see Black Gold #3)
Action Performance Review
Once we have enough performance history, we will show our subscribers the track record of our recommendations versus the price of crude and the S&P/TSX Energy and company stock actual prices versus our targets.
Disclosure of Information
We will disclose in the report, whether any director, employee, or immediate family member owns a company on the Coverage List or is otherwise in a financial or contractual relationship with them. Further, the individuals named above plus service providers with access to company information prior to publication, are prohibited from purchasing or selling shares in any company added to the Coverage List until five business days after publication as well as five business days after an Action Alert for a specific company has been issued. (See Black Gold Service #3).
BONUS: We will also send out a complimentary notification when Josef Schachter is scheduled for an appearance on BNN, Money Talks Radio Show with Michael Campbell or other shows or events that the subscribers may find of interest.