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Here's the Short Version of Why:
Dear Investor:
Hype. . .or fact? When it comes to investing in the world of mining and energy I've got the kind of first-hand, mine-shaft experience that separates my recommendations from those of Wall Street.
My name is John Myers, and I grew up in the world of mining and energy investing - it's in my blood. My father was the famous C.V. Myers, one of the original "gold bugs" and an expert in natural resources. I was buying mining stocks at an age when most kids are still collecting baseball cards.
Over the years, I've helped subscribers to my newsletter services, John Myers' Resource Trader Alert, Outstanding Investments, Myers' Finance & Energy and Myers' Secret Stocks, stash away profits like these:
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I tell you this not to inflate my ego, but to give you confidence that I know what I’m doing. I’m not suggesting you should put your entire nest egg in American Power Corp. (AMPW), but I do think that if you act before the next round of takeover talks begins, this around $1 stock could easily fetch as much as $40 a share by the time giant Rio Tinto makes its final offer!
That works out to a gain of 1,233%! It means, if I’m right, $10,000 invested in AMPW now, while you can still get it for around $1, would explode in value to $400,000!
The SEC-filed facts are that American Power Corp now owns the lease to a huge Montana coal field:
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I’ve done the math for you. That $34 billion works out to about $400 worth of in-the-ground energy for each share of American Power Corp stock (AMPW) Warren Buffett needs this good Montana coal to keep his railroad profitable.
How much will Rio Tinto end up paying for that 438 million tons of coal?
Well, I don’t have any inside information, but I’m thinking Rio Tinto would be getting one heck of a bargain if it could buy in-the-ground coal at a discount of 95% off its market price! Sound reasonable? I mean do you think an international mining giant with a market cap of $129.64 billion will balk at paying 10-cents for a each dollar’s worth of coal?
Well, I think not! And what that means is, at 5-cents for each dollar’s worth of coal, AMPW stock would go for $20 a share. At that price, Rio Tinto would be getting $400 worth of in-the-ground coal for each share of stock! I think that number may even be a bit low, $40 a share may be more realistic.
And that means, at $40 a share, $10,000 invested now at around $1, would explode in value to $400,000!
How likely is all of that to happen? Am I nuts? And if I’m right, how come AMPW is still trading around a ridiculously low $1?
Here's a hint: Wall Street hasn't yet grasped the fact that American Power's coal...
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And almost no one on Wall Street paid any attention to American Power’s recent announcement that it had declined to persue takeover talks with Peabody energy.
Unlike typical energy start-ups that can take years to reach production (if ever) it looks to me as if American Power Corp's easily-mined, near-surface resources could be producing as much as 92,000 tons of coal per month within the first two years of business.
That would total $4.2 million a month in revenue! That could mean $50.4 million a year revenue or earnings of $0.59 per share, unheard of for a virtually new start-up! Heck, at a conservative ten times earnings, that puts this around $1 stock at $5.90 a share.
The stock of Peabody Energy, (NYSE:BTU) America’s biggest coal company, trades at 21 times earnings!
At that PE, AMPW stock could hit $11.80 within its first two years of operations.
And that’s without a take-over! Even in the unlikely event that Rio tinto or one of the other coal giants doesn’t buy it – this around $1 stock (AMPW) is headed for $40 a share because. . .
With energy leases worth an estimated
$35.04 billion. . .. . .each around $1 share of American
Power Corp (AMPW) is backed by
$40 worth of energy!
Power Corp (AMPW) is backed by
$40 worth of energy!
Buy AMPW now while you can still get it for around $1
and you could see $40 or higher in the near future!
and you could see $40 or higher in the near future!
Right now, as you’re reading, engineers at American Power’s Pace Coal Project are pushing feverishly to bring some of that $35 billion worth of coal to market. They know that the closer they are to positive cash flow, the higher the price they can negotiate in a takeover. BUT. . .right now, the company is playing it as close to its vest as it can while still complying with SEC disclosure requirements. I mean, just look at its press release from 08/23/10–
“Kick start?”
Read between the lines! What American Power is talking about is an all-out push to get its Judith Basin coal project into production!
According to Al Valencia, CEO of American Power Corp.:
Believe me. . .“as soon as possible”. . .is corporate-speak” for we’re busting our chops to bring coal to market!
Typically, it takes 3 to 5 years or more to bring a new coal lease into production. But AMPW is in a unique position to see SUBSTANTIAL revenue in far less time, I think possibly within two years or less. According to a recent company press release:
In fact, as of now, the drilling program is about to begin.
Here’s why positive cash flow is within sight:
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As I said before, it looks to me as if American Power Corp's easily-mined, near-surface resources could be producing as much as 92,000 tons of coal per month within the first two years of business.Coal Rio Tinto is desperate to buy!
That would total $4.2 million a month in revenue! That could mean $50.4 million a year revenue or earnings of $0.59 per share, unheard of for a virtually new start-up!
Buffett is betting big-time on coal. Shouldn’t you?
While Congress debates the merits and risks of deep-water drilling and pledges more billions to speed the development of electric vehicles, the construction of wind farms, and the new technology to lower the cost of solar-generated electricity, I believe the most important legacy of the Gulf oil spill will be the timely public acceptance that clean coal is still the best and only realistic, ready-now solution to America’s electrical needs!Reality Check: If not coal , then what?
Nothing can change the fact that, for at least the next 50 years, America’s electrical needs are going to be met primarily through the combustion of coal and natural gas.
According to the U.S. Department of Energy:
It’s a fact, without coal, half of America's electrical grid would shut down. And despite popular calls for alternatives, nothing will replace coal in any meaningful way for the production of electricity.
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The EIA’s Annual Energy Outlook 2010 not only predicts that by 2035 increased coal use will require an increase in domestic production from 1,172 million short tons in 2008 to 1,285 million tons in 2035. It’s also interesting to note that the same EIA report predicts production from mines west of the Mississippi (where American Power has coal leases worth an estimated $35.04 billion) will trend upward over the period, from 50% of domestic production in 2008 to 60% by 2035.
At the same time, electricity generated from natural gas will likewise continue to grow. According to the EIA, even given the expected use of renewable energy sources such as wind and solar, by 2035 coal and natural gas will still dominate as the leading fuels used to generate electricity.
Okay. . .hopefully I’ve convinced you that coal is still king and that beyond the clatter and gloom of the environmentalists is a maligned and ignored energy sector that has a long and profitable future.
But why is American Power such an extraordinary standout in a field of rock-solid coal companies?
Well, for starters, as I said at the start, the bottom line is that this still-undiscovered, coal company, American Power owns coal leases worth an estimated. . .
$35.04 billion!
PACE COAL PROJECT:
American Power owns the coal rights on 29,000 acres in Judith Basin in Central Montana.   Thirty core holes were drilled in 1979 by Mobile Oil (now Exxon) and based on these core samples, the resources in-place were estimated in five different and independent reports to contain up to 288 million tons of high volatile Bituminous B coal with an average BTU of 12,924.Within American Power's 29,000 acres is another still-undrilled tract estimated to contain a minimum of 150 million additional tons of coal. With average prices for Bituminous coal of around $80/ton. . . |
. . .the value of the Pace Coal Project is
approximately $35.04 billion
approximately $35.04 billion
Now, let’s be clear, this is not some speculative coal site. The Pace Coal Project was a wholly-owned subsidiary of the Great Northern Railroad and between 1915 and 1921 produced over 1.3 million tons of coal. It was closed in 1921, not for lack of coal but because of the economic depression. A report by Montana Tech in 2005, concluded that based on the geology and surface topography this coal deposit can be mined without significant problems.
The project is located 60 miles east of Great Falls in a coalfield long recognized by the Montana Bureau of Mines and Geology as having substantial quantities of Bituminous coal. It has the added advantage of an existing infrastructure, including a major railroad, highway, power lines and pipelines running through the property.
The Best Way I Know to Catch the Coal Rebound:
Think of buying American Power now as buying into Standard Oil when it was just getting started. How rich would you be today if you’d put $1,000 into Mr. Rockefeller’s fledging start up and held on as Exxon grew into a $278.45 billion corporation?
My point being, you can’t possibly quadruple your money in the next 12 to 18 months with any of the already giant coal companies like Peabody Energy (market cap, $11.49 billion). . .Arch Coal (market cap, $3.36 billion). . .Alpha Natural Resources (market cap, $4.42 billion). . . or Massey energy (market cap $3.11 billion). But American Power is a startup with astonishing potential.
The big boys offer zero chance of growing your money 400% or 500% anytime soon, let alone the kind of 500%... 1,000%... even 1,233% gain in just the next 12 to 18 months that I’m looking for!
I think you already know that the best way to make a fortune is to find a great, still-undiscovered junior resource company.
When I first discovered American Power Corp. (AMPW), I ran to my email and “screamed” to my readers to, "Buy this stock now!"This is one of those very rare recently-public energy companies that should have debuted for five times what it's selling for today... and that's before it takes off on what could be a rapid run to as much as $50!
Buy AMPW now and you could see a $5,000 investment quickly turn into $200,000.00!
Long term, the sky is the limit because, remember, right now, as you’re reading this, the company has valid, certified estimates of coal and gas resources in place that total $35.04 billion. That works out to an incredible $400 per share!
Buy American Power Corp. (AMPW) now while you can still get it around $1 and hang on when it takes off. Just $10,000 invested now could turn into $400,000 if Rio Tinto decides to buy all that coal for just pennies on the dollar!
Don’t get left behind.
This stock won’t stay around $1 for long!
This stock won’t stay around $1 for long!
As I mentioned earlier, my name is John Myers, and I believe one of the most valuable assets I can offer you is seasoned judgment and expertise. In a market where many fund managers are under 30 years old, I bring 25 years of market experience to the table. Even before I could drive, my father taught me the difficult lessons of building wealth — the ones many Wall Street analysts seem yet to have learned.As the small-cap market has begun to reactivate after the crash of 2008, investors like you are being deluged with buying advice that's paid for by some Wall Street wheeler dealer. So, I urge you to beware. Pay attention to who it is that's recommending a particular stock!
Some of my subscribers have told me I have a sixth sense for separating opportunities that sound great, but are headed for the dumpster, from highly-profitable future winners. I don’t know if that is true. What I can tell you is I put in a lot of work and use my experience to separate Derby winners from dogs.
I live in Calgary, Alberta, just minutes away from the headquarters of some of the biggest players in today's mining and energy markets and not far away from the resurgent mining industry in the Western United States.
Over 25 years, I’ve cultivated a network of relationships with mining professionals in Nevada, Idaho, Oregon and Washington State. And one thing about geologists and mining people...they love to share what's going on. It is those over-a-drink conversations that often lead me to a great stock recommendation for my readers.
| 5 REASONS WHY YOU SHOULD BUY AMPW RIGHT NOW: |
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