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The Republican midterm victory signals a SURPRISE windfall profit opportunity for investors. One particular group of stocks is set to soar when President Obama finally approves – with House and Senate pressure – this unexpected deal. Curious? Go here.
| | | 11/19/2014 By David Dittman 
It's one of the biggest questions to come out of the Republicans' stunning election victory.
"Will President Obama finally approve the Keystone XL pipeline?"
The short answer: Yes, he will. And it will hand you a rare opportunity to pocket some serious profits. But you must act fast.
How can I be so sure? Simple economics. And politics.
Time magazine calls Canadian oil "the greatest buried energy treasure."
There's no doubt global markets are thirsting for it. But so far, environmentalists have successfully blocked the pipeline that would liberate our northern neighbor's massive reserves.
All of that changes with the new Republican-dominated House and Senate.
I know what you're thinking: It can't be that simple, right?
After all, Obama has been a vocal opponent of the project, citing the path it will take through environmentally sensitive parts of Nebraska. He's also voiced concerns about what opening Canada's reserves would unleash in terms of carbon dioxide emissions.
Environmental groups have gobbled it up—and shoveled money Obama's way. But here's what the green lobby doesn't know: Obama is playing them.
Obama's Keystone Shuffle Explained
To really understand what's going on, you have to go back to 2012, Obama's re-election year. Back then, he surveyed the scene and decided his job was more important than the tens of thousands of American jobs the pipeline would create.
But things look much different today. Obama has a second term in his pocket, but the economy is still in shambles. Facing severe pressure from newly elected Republicans—and realizing the economic jolt the pipeline will deliver—the president's position will miraculously "evolve."
And the environmental lobby? The fact is, Obama's now a "lame-duck" president. Donors won't matter so much. The economy will.
There are signs the Obama "switch" is already in the works.
Witness how the president quietly approved construction of Keystone's 487-mile southern leg, which connects Oklahoma's Cushing hub with Gulf Coast refineries.
Oil is already flowing through it. That move strongly signals that Obama has known all along that he would eventually have to approve the entire project.
The bottom line: Obama will approve Keystone—and investors like you and I have a brief window of opportunity to act.
"A Clear-Cut Buying Opportunity"
The thumbs-up from the White House will trigger a tidal wave of investment in Canada's oil fields. Companies involved in everything from well drilling to building roads and schools will collect an enormous windfall.
Make no mistake: this opportunity is like being among the first to invest in the Bakken. Early investors who grasped that boom's potential reaped profits as high as 3,300%!
And your timing couldn't be better. Quality energy stocks are now bargain-priced—falling more than they did in the 2008 crash. This is a clear-cut buying opportunity. The last time energy stocks bottomed like this, they bounced back 56% in less than 24 months.
As I write, I've found no fewer than 19 energy companies in commanding positions to jump virtually minutes after Keystone wins approval. I'll show you how to get everything you need to know about each of them in just a moment.
But first, I want to make sure you have the complete story on this unexpected profit bonanza.
Why Keystone XL Changes the Game for Investors
At this point you may be wondering, is Keystone really that big of a deal?
My answer: Yes!
To grasp the pipeline's full significance, you first need to know that Canada has the world's second-biggest oil reserves, trailing only Saudi Arabia.
To put it in perspective, the Bakken possesses an impressive 7.4 billion barrels of proven reserves. But Canada owns a massive 54,900-square-mile oil field (40 times larger than the Bakken), boasting a jaw-dropping 300 billion barrels.
The U.S. already depends on Canadian oil. Our northern neighbor is the biggest exporter of oil to America, providing nearly a quarter of what we use.
But we're not alone in our need for Canadian energy. In the last year and a half, Chinese companies have invested $15 billion in Canadian oil development. Right behind China come Australia, Japan, Thailand and South Korea.
Others will follow. The big money will keep pouring into Canada's oil fields. Count on it.
The reasons are compelling.
One of the most powerful is simply this: developing nations want the same standard of living the West has enjoyed for decades, with all the consumer goods, gadgets and comforts we take for granted. Access to plenty of oil is the proven way to achieve that better life.
What's more, for oil-hungry nations, Canada represents a deep energy supply that neither props up nor enriches a dictatorial regime, nor exposes them to economic and political blackmail.
All they need is full access to this torrent of oil—and Obama is getting ready to hand it to them.
That's where the 19 companies I mentioned earlier come in.
How to Grab Your Share of the Keystone Windfall
As I said, all of these stocks are positioned to surge after the White House approves Keystone. And I'll give you all the profitable details on each one in a free special report I've just released.
It's called "Keystone XL Windfall Bonanza: Stocks Set to Soar From Canada's Black Gold Rush." It's yours free with a 90-day risk-free "road test" of my Canadian Edge advisory—the only service that covers Canadian stocks for U.S. investors.
All of these fast-breaking picks have terrific profit upsides, and all are superb buys right now while they're way, way down.
Don't miss your chance to wring the most profits from this amazing opportunity.
Click here to get your free special report now.
Editor's Note: Most investors will be surprised when Obama approves Keystone, but thanks to this new free report, you won't be one of them. Instead, you'll be ready to profit from the windfall opportunities David reveals in its pages.
But the time to act is now—while you can still pick up these top-quality companies at a bargain.
Don't delay.
Go here to get your copy now. | | |
Here's the big investor takeaway from the midterm elections: Keystone XL legislation will arrive on Obama's desk. A coalition of Republicans and Democrat moderates will see that it does – and soon.
The president will have a choice – sign it or veto it. I predict he'll sign it. Approval will release 300 billion barrels of oil to an energy-hungry world… and deliver major windfall rewards to investors who act fast. Make no mistake, this opportunity to get in now, before the rush, is like being among the first to invest in the Bakken. Early investors who grasped the potential in the Bakken reaped profits as high as 3,300%.
Your timing couldn't be better. Quality energy stocks are bargain-priced. This is a clear-cut buying opportunity… but only if you act before the big announcement is made. Go straight here.
| | | 11/19/2014 By Chad Fraser 
With another November comes another quarterly disclosure of the holdings of institutional money managers with assets of at least $100 million. The Securities & Exchange Commission (SEC) requires these managers to report their stock holdings via Schedule 13F within 45 days of the end of each quarter.
In August, when these investors last updated their holdings (as of the end of the second quarter of 2014), we highlighted four picks from each of four different investment gurus---Seth Klarman, David Einhorn, Daniel Loeb and Warren Buffett---to see what they could tell us about which stocks may be moving up---or down.
In our August article, we discussed Daniel Loeb's new position in cloud computing firm Rackspace Hosting (NYSE: RAX). Since we published that piece, Rackspace has soared from $33.09 to $42.70. That's a 29.0% gain in just three months!
These updates also let us stack these investment pros up against one another and see how their picks compare.
In the last three months, six of the 16 stocks highlighted (37.5%) in our August article made a profit (a sold stock is considered profitable if it went down in price). Making a profit is different from outperforming a stock index, however. Of the 11 stocks our gurus bought, just three (27.3%) have beaten the S&P 500's 3.3% gain in the past three months.
Of the five stocks sold, three (60.0%) underperformed the S&P 500, so the gurus were better bears than bulls. That's a continuation of what we saw in the second quarter, when our gurus reversed a long-standing trend of being stronger bulls than bears.
In addition to Rackspace, other "buy" winners included Warren Buffett's Verizon Communications Inc. (NYSE: VZ) (+4.9%) and Seth Klarman's eBay Inc. (NasdaqGS: EBAY) (+3.7%).
Einhorn had the quarter's worst trade, paring his stake in Apple Inc. (NasdaqGS: AAPL), which rose 14.8%. Other losing moves included Buffett's increased position in Canadian oil sands giant Suncor (NYSE: SU), which fell 12.8% amid the recent plunge in oil prices. Seth Klarman also took a new position in Kosmos Energy (NYSE: KOS), which suffered a 6.1% decline.
None of our four gurus deserve special recognition this time around because only two---Seth Klarman and Daniel Loeb---turned in two winning trades out of four, while Einhorn and Buffett trailed with one each (winning trades being buys that outperformed the S&P 500 or sells that went on to be outpaced by the benchmark index). Just goes to show you how important it is to do your own research and not merely piggyback on anybody else's picks.
Moreover, it's important to keep in mind that these 13F filings are usually out of date by the time they're released and likely don't paint an up-to-the-minute picture of each investor's holdings.
Nevertheless, they remain a gold mine of information on what the smartest investors are buying and selling. A timely review of them can make you money. With that in mind, here are some highlights from the just-released 13F filings of Klarman, Einhorn, Loeb and new addition David Tepper.
(Warren Buffett didn't do much trading in this quarter, so I'm replacing him with Tepper, who recently made headlines by recommending that investors short the euro.)
Note that the following is not a full account of these gurus' transactions, just a few that stand out. So if you're keen to see what the cream of the investment crop are buying and selling these days---and who isn't?---read on!
1. Seth Klarman, Baupost Group | Company | Action | % Change in Holding | Average Price Per Share | Comments | | Antero Resources Corp. (NYSE: AR) | Buy | NEW | $59.89 | Antero recently completed its IPO of 46 million units of Antero Midstream Partners LP (NYSE: AP), which owns the company's midstream and compression assets. Antero collected $1.1 billion of net proceeds from the sale; it still owns 69.7% of the partnership. | | Veritiv Corp. (NYSE: VRTV) | Buy | NEW | $43.78 | Veritiv is one of three recent IPOs our gurus zeroed in on this quarter (Citizens Financial and Alibaba---see below---being the other two). The company delivers packaging, printing and other supplies to North American businesses. Shares are up 30% since they started trading on July 2. | | eBay Inc. (NasdaqGS: EBAY) | Buy | +37.4% | $53.41 | Klarman adds to his eBay stake, which he initiated in Q2. He's not the only one with his eye on the e-commerce icon: fellow hedge fund honcho Carl Icahn also picked up 15 million shares in Q3. eBay will spin off its PayPal subsidiary in 2015, after Icahn pushed it to do just that. | | Boyd Gaming Corp. (NYSE: BYD) | Sell | -65.0% | $11.19 | Klarman sharply reduces his stake in the casino operator---which has 22 properties in eight states---after initiating it in Q2. |
2. David Einhorn, Greenlight Capital
| Company | Action | % Change in Holding | Average Price Per Share | Comments | | Tempur Sealy International Inc. (NYSE: TPX) | Sell | -100% | $57.94 | The bedding maker's stock has been volatile in the past few months, including a 10% drop on October 31 after it missed Q3 earnings expectations and cut its full-year forecast. | | Citizens Financial Group Inc. (NYSE: CFG) | Buy | NEW | $22.51 | The U.S regional bank, recently spun off from Royal Bank of Scotland, has risen 10% since it started trading on September 24, helped by a positive Q3 earnings report. RBS still owns a majority stake, but it plans to exit its holding by the end of 2016. | | Micron Technology Inc. (NasdaqGS: MU) | Sell | -24.5% | $33.75 | Einhorn pares his stake in the memory-chip maker, which has risen sharply since he took his initial position in Q2 2013. Even after the sale, Micron remains Greenlight's largest holding. | | CONSOL Energy Inc. (NYSE: CNX) | Buy | NEW | $42.08 | Consol is considering spinning off its thermal coal assets as a master limited partnership. The MLP would include the Bailey Mine Complex in Pennsylvania, which can produce up to 28 million tons of coal a year. |
3. David Tepper: Appaloosa Management
| Company | Action | % Change in Holding | Average Price Per Share | Comments | | NXP Semiconductors NV (NasdaqGS: NXPI) | Buy | NEW | $67.64 | NXP is the co-inventor of near-field communication, which lets mobile devices transmit small amounts of data at close range. Apple is using NXP's chips in the new iPhone 6 and iPhone 6 plus, according to a teardown of the devices by iFixit. | | Walt Disney Co. (NYSE: DIS) | Sell | -88.5% | $87.42 | Tepper cuts his stake in the entertainment colossus after it posts a 29% gain in the past 12 months, more than double the S&P 500's rise. | | Comcast Corp. (NasdaqGS: CMCSA) | Sell | -100% | $53.82 | Cable and satellite TV providers recently ranked last in a YouGov survey of customer satisfaction, well behind banks, insurance companies and wireless providers. Comcast is currently awaiting regulatory approval for its proposed $45-billion acquisition of Time Warner Cable. | | Whirlpool Corp. (NYSE: WHR) | Buy | +97.7% | $37.58 | The appliance maker closed key acquisitions in China and Italy in Q3. |
4. Daniel Loeb: Third Point, LLC
| Company | Action | % Change in Holding | Average Price Per Share | Comments | | Alibaba Group Holding Ltd. (NYSE: BABA) | Buy | NEW | $90.78 | Loeb is one of a number of fund managers who invested in the Chinese e-commerce giant, which held its IPO---the biggest ever---in September. Others include George Soros, Julian Robertson, David Tepper (above) and Jana Partners. | | Bed Bath & Beyond Inc. (NasdaqGS: BBBY) | Buy | NEW | $61.69 | The retailer announced a new $2 billion share buyback program in July, before borrowing $1.5 billion to repurchase a further $1.1 billion of stock by the end of 2014. | | Hertz Global Holdings Inc. (NYSE: HTZ) | Sell | -100% | $26.82 | Accounting problems continue to bedevil the car rental giant, which now says it will restate financial results for 2011, 2012 and 2013. CEO Mark Frissora resigned in September. | | Amgen Inc.
(NasdaqGS: AMGN) | Buy | +194.4% | $129.93 | Shares of the world's largest biotech firm have jumped 21% in the past month on a strong Q3 earnings report and raised 2014 forecasts. Loeb recently suggested that Amgen should break itself into two separate companies. | | | |
There were two winners in the 2014 midterm election – the GOP and the Keystone XL Pipeline. As soon as they take office, Republican senators, joined by Democrats, will drop Keystone on Obama's desk. Obama, I predict, will sign it. Keystone approval will unlock over 300 billion barrels of Canadian oil, triggering a huge capital inflow to over a dozen strategically positioned companies, many of which do not drill for oil. Seize the moment now – before the big announcement – and you'll be rewarded with the profit bonanza of the decade. Complete details here.
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