Three Bakken Stocks Below $10
to Buy Right Now
to Buy Right Now
One of the stocks will see a 492% increase in net profit this year...
Warren Buffett paid $26.5 billion to participate in America's fastest-growing oil play...
Billionaire Bill Ackman, founder of the Pershing Square hedge fund, followed Buffett with a multi-billion-dollar investment of his own...
Other billion-dollar hedge funds like Citadel Investment Group and Moore Global Investments are increasing their investments as fast as they can...
And this is one time when individual investors can profit right alongside some of America's savviest investors.
Hello, my name is Keith Kohl. I’m the editor of the oil and gas investment newsletter Energy Investor.
Five years ago, I alerted my readers to two small oil stocks that were drilling in North Dakota's Bakken Oil Field.
At the time, these stocks traded for less than $6 and $8 a share...
Back then, nobody had heard of the Bakken — and they definitely hadn't heard of the two stocks I recommended.
They were Brigham Exploration and Northern Oil & Gas.
In October 2011, Brigham announced it was being acquired for over $36 a share by Norway's state-run oil company, Statoil.
Many of my readers who purchased Brigham back in 2008 have sold for +600% gains in just three years...
And Northern Oil & Gas has been as high as $32.55.
I’m happy to say these two stocks have changed the lives of many of the readers who followed my advice...
Like member Mike Leonard, who wrote in to say:
Or Kim, who told me...
And Mr. Smith had this to share:
Here’s my favorite, from long-time subscriber Cheryl Burton:
Martin L. nearly tripled his investment...
George made some quick cash:
And Henry made over 1,200% on Brigham:
These days, with a struggling economy and high unemployment, letters like these are what make me get up in the morning and go to work.
I spend endless hours poring over companies’ field production reports, lease acquisitions, landholdings, SEC filings, and CEO interviews...
I’ve been to the Bakken and Fort McMurray to get a firsthand look at the operations of some of my favorite oil and gas stocks...
And all this hard work is about to pay off for you again.
I have three more unknown stocks in the Bakken that I believe will give you EVEN BIGGER returns than Brigham or Northern Oil & Gas.
One stock trades for just $8 a share.
This company controls over 157,000 acres in the Bakken and they just announced a monster second quarter...
Their reported net income will skyrocket 492% this year — and double again in 2013!
It gets better: They just completed 10 new wells, and I think sales and net profit will rise in the coming quarters.
This stock is poised to take off to the races (assuming it doesn’t get acquired first at a huge premium).
My second Bakken stock trades for less than $1.50 a share!
This stock is cheap. It has $54 million in cash in the bank and zero debt. It’ll control over 90,000 acres in the Bakken.
This baby could easily double in a year.
My third and final Bakken stock might be the biggest blockbuster yet.
It trades for about $5 a share... has a total of 74,000 acres in the Bakken... and the company’s insiders have been buying its stock like crazy in the open market.
In fact, in the last 12 months, insiders have purchased 1,700,000 shares — with no selling whatsoever.
I love this company.
You see, even though it’s a small-cap oil company (it has a current market valuation of just $235 million), it has $79 million in cash (plus a $300 million line of credit) and zero debt!
And it gets even better... because next year, earnings are expected to grow an amazing 1,100%!
I'm sure you know that kind of growth can send a stock price soaring higher.
In just a minute, I’ll show you how to make your fortune on these Bakken stocks.
But first, you need to know why the Bakken itself is a game changer for America...
After all, there's a very good reason that some of America's wealthiest investors — including Warren Buffett himself — are invested in these plays...
Profit Secrets of the Bakken
"The Largest Continuous Oil Formation It Has Ever Assessed" — U.S. Geological Survey
The greatest investments in history always have one thing in common...
They have important catalysts that the majority of investors don 't know about — or don't understand.
Most investors had never heard of the Bakken when I started recommending Bakken stocks.
Lucky for you, the Bakken still has a few profit secrets up its sleeve...
In 2008, the U.S. Geological Survey (USGS) completed its estimate of recoverable light, sweet crude reserves in North Dakota's Bakken formation, located in the Williston Basin.
That USGS estimate — 4.3 billion barrels — ignited the Bakken oil stocks and led to a flurry of gains for my readers...
I’m not kidding when I say billions of dollars were made on the heels of that USGS Survey.
And the profits aren’t done rolling in — not by a long shot.
Most recently, in 2010, a new oil reserve was identified that actually lies beneath what’s known as the Bakken.
This area, called the Three Forks or Sanish Formation, holds an additional 1.9 billion barrels of recoverable oil — maybe more...
Literally overnight, recoverable reserves jumped 50%.
We're now looking at a whopping 6.2 billion barrels of recoverable oil.
It’s true: North America's fastest-growing oil play keeps getting bigger.
And Bakken oil is light, sweet crude oil — every bit as good as Saudi Arabian oil. It's the most desirable quality because it's the cheapest and easiest to refine.
But here’s where things get really interesting — and more profitable — for you...
You see, the current 6.2 billion barrel “official”estimate for the Bakken/Three Forks is much lower than top insiders believe.
Insiders believe the true amount of recoverable light, sweet crude oil is much, much higher.
And this Bakken Profit Secret means that the gains on your Bakken investments should be even bigger than what I’m currently estimating!
Bakken Billions: 3 Bakken Stocks
Under $10 for Triple-Digit Gains
Under $10 for Triple-Digit Gains
Harold Hamm is the billionaire founder and CEO of Continental Resources (NYSE: CLR).
Hamm made a fortune by positioning his company in new and upcoming oil discoveries. Continental was among the first companies to enter the Anadarko, the Rocky Mountains, and the Bakken...
In fact, Continental drilled the first commercially successful Bakken oil well back in 2004.
Now, Harold Hamm knows as much about the Bakken as anyone...
And he's betting his company’s future on Bakken oil.
Hamm's amassed the biggest Bakken land position — 900,000 acres. Continental’s proven Bakken reserves stand at around 220 million barrels of oil. But that’s just the start...
Because Hamm is convinced there are 24 billion barrels of recoverable oil in the Bakken.
Yes, you read that right...
The most influential Bakken insider says there is four times more oil than the USGS reported in 2008.
This is incredibly profitable news for Bakken investors... because it means you can basically take every price target for Bakken oil companies — and double them.
"If [oil] prices increase or technology improves, the total amount of oil taken from the Bakken will go up... and that much oil means a century of steady oil production."
— Lynn Helms, Director, North Dakota Dept. of Mineral Resources
— Lynn Helms, Director, North Dakota Dept. of Mineral Resources
That means the $8 Bakken stock I’ve been telling you about — the one with 133% gains coming — is likely to make much more money for you.
The stock could easily trade at $24 a share... or higher.
And you can start amassing a fortune-building position in this stock (and a couple others I’ll tell you about) while the U.S. Geological Survey (USGS) re-examines its Bakken estimates.
That’s right: The next Bakken Profit Secret to be revealed is a brand-new USGS estimate of Bakken oil reserves.
I can confidently tell you reserves will go up when the USGS releases it latest findings — maybe even higher than Harold Hamm’s 24 billion barrel estimate.
We'll start hearing “whisper” numbers in the next few months...
You'll want to own these Bakken stocks before that happens.
Now is the time to start buying — when stock prices are low and most investors are focused on U.S. economic growth and the debt situation in Europe.
And I’ll get you started building your Bakken fortune with my latest Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains."
In this report, you’ll get my detailed analysis of exactly how this $8 will inevitably rise 133% (at least).
This company is virtually unknown outside of oil circles, but insiders know that its 157,000 acres are among the very best Bakken land concentrated in the areas where the most productive wells have been drilled.
"Bakken is almost twice as big as the oil reserve in Prudhoe Bay, Alaska. "
— Harold Hamm, founder & CEO, Continental Resources
That’s why institutional oil investors are flooding in... to the tune of 36,726,000 shares in just the last 12 months. That’s around $216 million worth of stock.
These guys know what’s going to happen to this stock... They’re going to make their money — a lot of it.
And you have the opportunity to profit right along with some of the most savvy oil insiders in the world today.
But that’s not all...
When you get your copy of "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains," you’ll also get the details on two other small Bakken players with HUGE profit potential.
(I’ve got a $5 stock that could easily make it to $22.80 a share in 18 months that you’ll definitely want to hear about.)
I’ll even show you how you can get your hands on "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains" absolutely FREE...
Bakken Oil Wells: World’s Most Profitable Oil Investment
Right now, a Bakken oil well is one of the world's most profitable investments — for individual investors and oil companies alike.
So let's dig into some numbers, because I want to show you exactly why this $8 stock is about to jump 133%...
North Dakota oil drillers produced a record 152.9 million barrels of crude in 2011, up more than 35% and nearly 40 million more barrels than the previous record set a year earlier.
More than 95% of the state's oil productioncomes from the Bakken and Three Forks.
Almost 200 rigs are drilling in the Bakken; state and industry officials say 99% of them hit oil.
A typical Bakken oil well costs between $8 and $10 million. That includes leases, royalties, and initial operating expenses.
The average Bakken well will produce about 540,000 barrels of oil during its 29-year lifespan.
At current prices between $85 and $100 per barrel, we’re talking about a sweet $45 million in revenue for each Bakken oil well.
"We can look at each well as a driver for the economy...
It's also a good investment."
It's also a good investment."
— Alison Ritter, Department of Mineral Resources
Now, let’s put that in perspective:
- The $8 Bakken stock I want you to buy has 157,000 acres of prime Bakken land.
- It's got 7 rigs drilling 24 hours a day.
- By the end of 2012, this fast-acting company will have drilled 42 wells in just 12 months...
- Right now, it is pumping nearly 18,000 barrels every single day.
At $90 a barrel, that's over $590 million in annual revenues.
Not bad. But this company is drilling for a lot more in revenues than that...
Conservative estimates are that this company's revenues — and earnings — will jump 492% in 2012... and nearly double again in 2013.
Revenues and profits are exploding to the upside.
There's simply nowhere else you can find this kind of fast, predictable growth...
And again, you can get it for just $8 a share.
Even more incredible: This stock is an amazing bargain. The forward price-to-earnings ratio for 2012 is just over 8!
There's simply no way this stock can stay at $8 a share for much longer...
That's why I urge you to get your copy of my latest Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains," as soon as possible.
Because you'll be kicking yourself if you miss the run from $8 to $18.
And remember, with "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains," you'll also get TWO MORE undiscovered Bakken oil stocks that could do even better than the $8 company I've told you about...
Build Your Own Bakken Oil Bank Account — for Just $8 a Share!
These days, oil in the ground is like money in the bank.
I mean, is there any doubt that oil prices will be higher in the future?
It's why Norway’s Statoil (NYSE: STO) bought top Bakken producer Brigham Exploration for $4.4 billion
why Warren Buffett bought the Burlington Northern Santa Fe railroad
(it transports millions of barrels of Bakken oil and has already made
Buffett $3 billion richer in the last year)...
why billionaire hedge-fund manager Bill Ackman bought into Canadian
Pacific railway, the only other rail company serving the Bakken...
It's why billion-dollar hedge funds like Citadel Investment Group and Moore Global Investments recently doubled their stakes in the $8 stock I've been telling you about...
And it’s why individual investors should start building their own Bakken oil bank accounts as soon as possible.
Oil production from current fields all around the world is in decline.
And that makes new discoveries — like North Dakota’s Bakken Oil Field, with a confirmed 6.2 billion barrels (and as much as 24 billion barrels) of recoverable oil — pure gold for individual investors.
But the Bakken is unique, and its profit secrets virtually guarantee investors will make out like bandits — very wealthy bandits.
You see, the Bakken oil play is not new. In fact, geologists have known about it since the 1950s...
Shell Oil even tried drilling there in the 1970s, but the company wasn’t able to get enough of the high-grade light, sweet crude out of the ground to make the venture worthwhile.
The earliest estimates were that the layered shale of the Bakken Formation held a whopping 500 billion barrels of oil. But as Shell proved, getting that oil was a whole different story.
That’s because traditional drilling methods don’t work on shale.
To fully understand all of the fortune-building secrets of the Bakken — and to completely grasp why the $8 stock I’m recommending may be the easiest, most predictable triple-digit gainer in history — allow me to introduce you to Dick Findley...
How a Starving Geologist Found
the Largest Oil Field in Modern History
the Largest Oil Field in Modern History
A few years ago, a Billings petroleum geologist by the name of Dick Findley was working out of his basement, searching for oil in an area that had been barren for over 20 years.
Things were rough, and he was struggling to get by. He even flirted with the idea of getting a second job as a restaurant cook... and on a diet of nothing but Ramen Noodles and hard-boiled eggs, who could blame the guy?
But one thing kept Dick going: a conviction that this area — the Bakken Oil Field — held billions of barrels of recoverable light, sweet crude.
And through sheer luck, he and his partner stumbled upon a porous layer of dolomite 9,000 feet below the ground of a ranch just outside Sidney, Montana.
The oil field he'd found — and the technology that he helped develop to extract the oil — has recently made millionaires out of ordinary North Dakotans and Montanans.
Findley soon took his discovery to energy giant Halliburton, which backed him financially and provided the support to help him develop the necessary drilling technology to efficiently take advantage of this huge oil discovery.
It's true that the oil industry has known about the Bakken formation for over 20 years, but the problem always was that no one knew how to get at the oil.
The technology just wasn't there — until now.
Bakken Profit Secret #3
"The Bakken is so prolific... one of the top onshore fields found in the past half-century."
— Financial Post
— Financial Post
It was Findley's idea to drill a well sideways — a technique called "horizontal directional drilling" — in which wildcatters drill down to the oil and then kick out their well thousands of feet to the left or right, sort of like an underground sprinkler.
But horizontal drilling alone isn't enough to get the oil out of the ground...
Findley had to work with Halliburton engineers to figure out a way to both drill sideways and fracture the rock (fracking) to release the oil.
Horizontal drilling and fracturing had been done before — but never together.
This was Findley's revolutionary idea.
And these combined technologies are one key that can unlock 133% in Bakken profits for you...
Because even today, horizontal drilling and “fracking” are not exact sciences. The process is equal parts art and science. And the fact is, some companies are better at horizontal drilling than others.
The third Bakken Profit Secret is that some companies can get more oil out of a well than others...
The $8 Bakken stock I’ve been telling you about is one such company.
"It's too early in the play to be sharing information."
— Bill Walker, a Denver-based geologist with Headington Co.
This $8 company consistently shows better production rates than most other Bakken drillers.
Even the biggest companies, like Hess (NYSE: HES) or Continental (NYSE: CLR), aren’t as good at drilling as this little $8 beauty...
Here’s a look at its average initial production (IP) rates after 30 and 60 days:
30 day IP of 1170 Boe/d
60 day IP of 1073 Boe/d
That’s far better that bigger players like Whiting Petroleum (NYSE: WLL):
30 day IP of 689 Boe/d
60 day IP of 652 Boe/d
These number show that it will pump more oil than its peers... it will make more money... and its stock prices will perform better.
My price target for this stock is $18.75, a solid 133% gain from current prices.
But like I said earlier, I won't be surprised to see this stock trade as high as $24...
Get In on the Ground Floor of
One of the Largest American Oil Booms in History
One of the Largest American Oil Booms in History
As I mentioned earlier, my name is Keith Kohl. I'm the energy analyst and investment strategist of the Energy Investor investment advisory service.
I’ve built a very successful career at the forefront of new oil and natural gas discoveries.
And my cutting-edge investment research has helped thousands of individual investors make life-changing wealth from the best stocks in the energy sector.
In fact, Energy Investor members have made money on every significant oil and gas field — including Eagle Ford and Haynesville in Texas, the Marcellus Shale in Pennsylvania, the Oil Sands of Alberta, Nova Scotia’s Maritimes, and of course, North Dakota’s Bakken Shale Oil Field.
Like I said, my readers and I practically discovered the Bakken as an investment.
And we racked up a string of gargantuan triple-digit winners...
But we’re nowhere near done, because oil is the only investment asset the world simply can’t do without.
Whether it’s a small exploration company with a new discovery, or an established major that’s undervalued, you’ll know about it — and profit from it — thanks to Angel's Energy Investor...
"A new black gold rush is under way... enough to meet all U.S. oil needs for decades."
"The highest-producing onshore field found in the lower 48 states in the past 56 years."
— Wall Street Journal
I’ve been leading investors to the very best-performing energy stocks since 2007. That was the year the International Energy Agency (IEA) dropped a bombshell on investors when it stated:
"Some $20 trillion of investment in supply infrastructure is needed to meet projected global demand."
Now, I don’t always trust the IEA... They're in the pocket of global government, and one of their main goals is to gloss over the simple fact that the world has already run out of cheap oil. They do this to keep people from panicking.
But this time — saying $20 trillion is needed for oil production — the IEA was right on target.
Twenty trillion dollars — that’s the size of the opportunity we’re investing for.
And with Energy Investor on your side, you can be sure you’ll get your share in the form of investment profits...
And that's why I'm writing to you today.
The energy crisis of the 21st century is, without a doubt, one of those investments by which you can achieve a lifetime of wealth.
It's a sector that could make you a legendary fortune in just a short period of time.
When you sign up for Energy Investor, you'll immediately get access to the blockbuster Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains."
With the latest North Dakota oil study shining a new spotlight on the Three Forks Formation, many of those Bakken drillers are ready to explode.
Taking the first step, however, is up to you...
The World's BEST Energy Research — for Just Pennies a Day!
When I started the Energy Investor, I set out to give investors the very best research and investment recommendations from the energy sector...
With gains like 574%, 478%, 286%, 118%, and 114%, I have no problem saying, "Mission: Accomplished."
My readers are making more than top hedge funds, mutual funds, and even the savviest individual investors.
The proven ability to uncover life-changing wealth in the stock market is a valuable skill. That said, there's no doubt I could name my price for a membership to Angel Publishing's Energy Investor...
Is $2,000 too much to ask for 574%, 478%, 286%, 118%, and 114% profits?
How about $1,500?
The fact is top energy hedge funds will charge thousands a year in fees — and they'll take part of your profits, too.
But you won't pay anywhere near that much for the Energy Investor...
If you act now, you can receive Energy Investor for an entire year for the ultra-low price of just $49.
That's $49 for 12 months of profitable research and Special Reports.
That’s just $4 and change a month to discover consistent market-beating profits from the best energy investments in the world...
Mere pennies a day for the high-level research that can double or triple your money!
Why so cheap?
Simple: The Bakken is a major American oil field. It's bigger than Alaska's Prudhoe Bay.
I want Americans to have the opportunity to profit from it.
So I make my research and investment advice as cheap as possible.
(Don't worry, I'm very well compensated for my work.)
And the truth is if I didn't believe in the research my team and I are doing, we wouldn't spend weeks traveling to the Barnett Shale, Fort McMurray, Alberta, Kiev, Ukraine, Wyoming, North Dakota, or Montana...
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And the Special Reports — including "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains" — are yours to keep FREE OF CHARGE, no matter what.
But you need to act fast if you want to secure your share of Bakken oil profits.
These stocks are on investors' radar now — and some big moves are coming soon...
I urge you to start building your Bakken oil fortune today by clicking here.
Investment Director, Energy Investor
Investment Director, Energy Investor
P.S. It's not official yet, but I hear takeover rumors are swirling for one of the stocks you’ll discover in the "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains" Special Report. After Statoil’s blockbuster purchase of Brigham Exploration, I’m sure this little $2 stock would fetch a 50% premium — at least! After all, with a P/E ratio of 4.5, it’s extremely undervalued... Don't delay another minute.
Ending America's Dependence on Middle East Oil
A briefing by Gal Luft
October 27, 2004
October 27, 2004
Gal Luft is executive director of the Institute for the Analysis of Global Security in Washington, D.C. He is a specialist on strategic issues and energy policy with a PhD in strategic studies from Johns Hopkins University. A former lieutenant colonel in the Israel Defense Forces, his writings have appeared in Commentary, Foreign Affairs, the Los Angeles Times, Middle East Review of International Affairs, the Washington Post and Wall Street Journal. Mr. Luft addressed the Middle East Forum in Philadelphia on October 27, 2004.
In both World War Two and the Cold War, the side best deploying scientific innovation and technological advancement achieved superiority. The turning point in the war on militant Islam will similarly arrive in the form of innovation that deprives the enemy of its current advantages.
Today, however, the U.S. finds itself in the position of financially supporting both itself and its enemies in the "War on Terror." This is a consequence of the U.S.'s growing dependence on oil, particularly as a transportation fuel. Currently, the United States consumes 25% of the world's oil while possessing only 3% of world oil reserves. The Muslim world, in contrast, depends on oil far less while possessing 75% of the world's oil reserves. As the U.S. continues to invest in the oil economies of the Middle East and the Muslim world, these economies continue to use their oil revenues to spread radical Islam, promote anti-Semitic and anti-American ideas, and in some cases, develop unconventional weapons. Every time an American goes to a gas station, he is sending money to America's enemies.
To complicate the matter, America is not the only country with a growing demand for foreign oil. China and India, hosting two of the largest and fastest growing economies, are also experiencing a steep rise in their demand for transportation fuel. China, for example, will likely enter into Middle Eastern politics in order to meet this demand. It will need to enhance its diplomatic relations in the region and possibly increase its weapons sales to the Muslim world's oil moguls. Foreshadowing this potential development is the Pakistani nuclear bomb, which was built by the Chinese and financed by the Saudis.
Steep rise in oil prices
The steeply rising demand for oil today means that the disruption of petroleum production causes oil prices to rise. America's Islamist foes are aware of this reality and view it as America's Achilles' heel. According to an al-Qaeda spokesman, the October 2002 attack on a French oil tanker off the coast of Yemen was a victory against the "Crusader nations." After the terrorist attack against oil employees in Khobar, Saudi Arabia, al-Qaeda leaders bragged that the consequent rise in oil prices caused Americans to suffer. (The website www.iags.org documents terrorist attacks on oil facilities around the world).
Some people believe that an American invasion of Saudi Arabia, home to the world's largest oil reserves, will resolve the oil problem. These people fail to look at the situation in Iraq, home to the world's second largest oil reserve. Due to the instability caused by the invasion, the U.S. is not receiving any Iraqi oil and will not obtain any Iraqi oil in the near future. Results from an invasion of Saudi Arabia would be similar.
The U.S. needs to get serious about gradually reducing the demand for foreign oil and bringing about the turning point in the current war. To do so, it must promote scientific and technological advancement by tapping into homegrown fuel sources that can be used for transportation purposes. These include: electricity, coal, and biomass (agricultural waste). Currently, the U.S. has 25% of the world's coal and billions of tons of biomass. In fact, nearly 60% of the garbage Americans throw away can be used as transportation fuel.
Alternative sources of transportation fuel
Electricity can power vehicles. On an electric battery, a vehicle may drive between 20 and 40 miles before the battery needs to recharge, which can be done easily overnight. New hybrid vehicles will carry both an electric battery and a normal engine. The engine will run on gasoline only after a driver exceeds the mile capacity of the electric battery. This will make possible trips longer than 40 miles. These hybrids will empower electricity companies and end the transportation fuel monopoly held by the oil companies.
Alcohol fuels such as ethanol, made from corn or biomass and methanol, made from coal, can also power a vehicle. Flexible fuel vehicles can run on any combination of gasoline and alcohol, thus reducing the overall amount of oil used. There are three million cars on the road today that are built to use the alcohol-gasoline mixture. Ford Taurus, Dodge Caravan, and Mercedes C-320 are all flexible fuel cars. In addition to decreasing U.S. need for foreign oil, flexible fuel will also aid the economy because it will bring new jobs to the American farmers and the American coal miners.
These alternate fuel vehicles can move the U.S. into an energy era free of dependence on OPEC and other oil exporters. Equally significant, the Europeans, Chinese, Japanese, and others will look to the U.S. as the world leader in this new energy era.
Unfortunately, current U.S. energy policy is looking elsewhere, towards seeking oil reserves outside the Middle East. This is at best a short-term and ultimately shortsighted solution. If we deplete the oil reserves outside the Middle East before we deplete the reserves in the Middle East, we will become in time more dependent on Middle Eastern oil than ever before.
To avoid these outcomes, there needs to be a "Set America Free Plan" that will utilize alternate energy sources. In order to effectively implement its principles, leaders of this initiative must use the conservative political movement in America as its avenue to the American public.
Usually, environmental political groups endorse energy initiatives of this nature as part of environmental preservation or anti-global warming campaigns. These campaigns, however, fail to resonate with the American public because of a general apathy toward the environment and distrust of anti-capitalists causes. Contrarily, if the initiative is presented by the conservatives and linked to the national security agenda, it will gain the necessary public support for implementation. Consequently, liberal political groups will also look to endorse the new energy campaign, further bolstering its appeal. Essentially, America will not be able to win its "War on Terror" if energy security is not at the top of its agenda.
This summary account was written by Ari J. Goldman, a research assistant at the Middle East Forum.
FORTUNE Ranks America's 100
Fastest-Growing Companies -
Technology, Oil Drilling
Companies Dominate Annual List -http://www.prnewswire.com/news-releases/fortune-ranks-americas-100-fastest-growing-
NEW YORK, Sept. 8 /PRNewswire/ --
Technology and energy companies dominate
FORTUNE's annual list of America's Fastest-Growing Companies,
with Houston- based Noble Drilling taking the top spot with
earnings-per-share growth averaging 394% annually over the
past three years. By category, there were 26 technology
companies on the list, followed by energy (22); industrial (20); retail (10); health care (8); and other (14, including
financial services). The range of fastest-growing companies
is a reminder, FORTUNE says, of the U.S. economy's diversity
and depth. (See attached for complete list of Fastest-Growing
FORTUNE notes the improbability of so many energy companies
achieving the kind of growth necessary to make the list, with
oil prices at a ten-year low and many oil stocks in the tank.
But as FORTUNE writer Bethany McLean points out in "Investing
Wisely in America's Fastest-Growing Companies," the list is based on three-year earnings growth, and three years ago
energy company earnings were near a cyclical low. Then oil
demand took off and was still high less than a year ago, with
oil at more than $20 a barrel last fall.
The price is now down around $13, but it took a while for
the price drop to hit earnings -- so these companies still
look good on three-year earnings growth. Their future is far less sunny, McLean warns; Global Marine (#1
on FORTUNE's Fastest-Growing list last year), warned in August
that it would miss earnings. The stock, which sold at a 52-week high of almost $37, recently
traded at $12. The stock prices of the energy companies on this year's list
have fallen 42% on average over the past 12 months, to an average
P/E of just 11 times earnings. On the positive side, FORTUNE
also notes that oil prices are likely to come back eventually,
which is why a handful of investors are quietly buying oil service
company stocks that have dived recently. The strength of the technology sector is a bit easier to
explain, although the number of tech companies on the list has
dropped steadily since the peak of 38 in 1996 (down to 35 in 1997).
The tech sector of the list may be shrinking, FORTUNE's Edward
Robinson writes, but it's hardly on the skids. For example, the list boasts chipmakers, information technology
consultants, an Internet switch maker, and a wireless company.
And in terms of stock performance, the leader on the list is --
no surprise -- Dell Computer (No. 43), with a 177% one-year price
change; it stands a strong chance of becoming the best-performing
equity in the S&P 500 in the 1990s.
FORTUNE also explores the necessity of managing growth wisely
by analyzing the styles of three companies on the list: Noble
Drilling, one of the largest offshore drillers in the world (No. 1);
Funco, the nation's largest retailer of used videogames (No. 2);
and circuitboard maker Jabil Circuit (No. 6). At Noble, the challenge was to make the offshore operations
more uniformly efficient and trouble-free, which involved "cutting
egos down to size" and instituting a standardized system of hiring
and promotion under the guidance of CEO Jim Day and Roy Rhodes,
Vice President of Organizational Development. At Funco, company growth depended in part on the CEO improving
his own management style; as the veteran of two failed business
startups, David Pomije had learned a lesson from trusting only
himself to make every important decision. "My philosophy was:
'I'm the boss, you work for me,' " Pomije, 41, says. Today, his
management style is totally different: self-importance is out, and hiring experienced people to share the load with is in. Jabil Circuit faced another challenge: the belief that the
company as a whole could pull off anything it tried, a belief that,
for a while at least, was well founded. After an ultimately
unsuccessful attempt to actually design, build, and manufacture
an entire computer, instead of just the parts, CEO Bill Morean and
his team started a process to evaluate future projects. There would be no more assuming that Jabil could accomplish
anything it attempted; projects would be assessed from a standpoint
of the company's capabilities and weaknesses. FORTUNE's list was compiled by Zacks Investment Research
by looking at earnings-per-share growth over three years, using
a moving four-quarter sum. No company could make the list if it had a loss over the past
four quarters or annual growth revenue of less than 30%. Rounding out the top ten of the Fastest Growing Companies are: -- Marine Drilling, No. 3: building on the best yearly
earnings in company history, this shallow-water driller
has beefed up its presence in the Gulf of Mexico; -- Vitesse Semiconductor, No. 4: its name is the French word
for "speed," it makes chips out of fast-acting gallium
arsenide, and it can't make them fast enough; -- Central Garden and Pet, No.5: on an acquisition binge, this lawn-and-pet-products distributor bought Four Paws, a top
distributor of pet products, in 1997; -- Cliff's Drilling, No. 7: a third of its oil goes to
Corpoven, a state-owned Venezuelan oil company. It's
selling its 34 rigs to industry giant R&B Falcon; -- PairGain Technologies, No. 8: still waiting for that
fiber-optic cable? PairGain's systems have turned old-fashioned copper
wires into a fast, wide-band medium; -- RMI Titanium, No. 9: more than 75% of sales are to
the aerospace industry, but new long-term contracts should
help counter its cyclicality. RMI is also developing new
uses for titanium; -- Sanmina, No. 10: this contract manufacturer to the
electronics industry holds the hand of fast-growing
customers from the design stage all the way through
production. The September 28 issue of FORTUNE is on newsstands beginning
September 14. FORTUNE RANKS AMERICA'S 100 FASTEST-GROWING COMPANIES September 28, 1998 Earnings Per Share RANK COMPANY Annual Growth LOCATION Rate (%) 1 NOBLE DRILLING 394 Houston, TX 2 FUNCO 276 Eden Prairie, MN 3 MARINE DRILLING 268 Sugar Land, TX 4 VITESSE SEMICONDUCTOR 227 Camarillo, CA 5 CENTRAL GARDEN & PET 206 Lafayette, CA 6 JABIL CIRCUIT 200 St. Petersburg, FL 7 CLIFFS DRILLING 200 Houston, TX 8 PAIRGAIN TECHNOLOGIES 187 Tustin, CA 9 RMI TITANIUM 180 Niles, OH 10 SANMINA 179 San Jose, CA 11 UTI ENERGY 174 Houston, TX 12 VERITAS DGC 174 Houston, TX 13 FIDELITY NATIONAL FINANCIAL 167 Irvine, CA 14 WASTE MANAGEMENT 166 Houston, TX 15 TJX 161 Framingham, MA 16 K V PHARMACEUTICAL 157 St. Louis, MO 17 BIOGEN 156 Cambridge, MA 18 GLOBAL MARINE 151 Houston, TX 19 SALTON/MAXIM HOUSEWARES 143 Mount Prospect, IL 20 CKE RESTAURANTS 142 Anaheim, CA 21 SHAW GROUP 136 Baton Rouge, LA 22 DSP COMMUNICATIONS 127 Cupertino, CA 23 MODTECH 124 Perris, CA 24 NOBLE AFFILIATES 117 Ardmore, OK 25 CANDIE'S 116 Purchase, NY 26 RAINFOREST CAFE 113 Hopkins, MN 27 OMEGA HEALTH SYSTEMS 113 Memphis, TN 28 REXALL SUNDOWN 111 Boca Raton, FL 29 WET SEAL 108 Foothill Ranch, CA 30 ST. MARY LAND & EXPLORATION 104 Denver, CO 31 SEACOR SMIT 104 Houston, TX 32 PRESSTEK 103 Hudson, NH 33 CADE INDUSTRIES 103 Okemos, MI 34 IMPERIAL CREDIT INDUSTRIES 100 Torrance, CA 35 ENSCO INTERNATIONAL 98 Dallas, TX 36 BJ SERVICES 98 Houston, TX 37 PACIFIC SUNWEAR OF CALIFORNIA 98 Anaheim, CA 38 ALLIED RESEARCH 97 Vienna, VA 39 TECHNOLOGY SOLUTIONS 91 Chicago, IL 40 VWR SCIENTIFIC PRODUCTS 91 West Chester, PA 41 NBTY 90 Bohemia, NY 42 PARKER DRILLING 90 Tulsa, OK 43 DELL COMPUTER 90 Round Rock, TX 44 PETROLEUM DEVELOPMENT 90 Bridgeport, WV 45 CHART INDUSTRIES 88 Mayfield Heights, OH 46 INDUSTRIAL HOLDINGS 88 Houston, TX 47 ACTRADE INTERNATIONAL 86 New York, NY 48 CORRECTIONS CORP. OF AMERICA 84 Nashville, TN 49 YORK RESEARCH 83 New York, NY 50 U.S. OFFICE PRODUCTS 82 Washington, DC Earnings Per Share RANK COMPANY Annual Growth LOCATION Rate (%) 51 ASCEND COMMUNICATIONS 81 Alameda, CA 52 ACCESS HEALTH 80 Broomfield, CO 53 PLAINS RE SOURCES 80 Houston, TX 54 REMEDY 78 Mountain View, CA 55 ZOLTEK 78 St. Louis, MO 56 RENT-WAY 76 Erie, PA 57 PRIDE INTERNATIONAL 75 Houston, TX 58 CHRONIMED 75 Minnetonka, MN 59 CHS ELECTRONICS 74 Miami, FL 60 HOLOGIC 74 Waltham, MA 61 PEOPLESOFT 73 Pleasanton, CA 62 NABORS INDUSTRIES 71 Houston, TX 63 TRANSACTION SYSTEMS ARCHITECTS 71 Omaha, NE 64 SEROLOGICALS 70 Clarkston, GA 65 DEVON ENERGY 70 Oklahoma City, OK 66 VARCO INTERNATIONAL 70 Orange, CA 67 NATIONAL RV HOLDINGS 70 Perris, CA 68 ABR INFORMATION SERVICES 70 Palm Harbor, FL 69 DAVOX 69 Westford, MA 70 DYCOM INDUSTRIES 68 Palm Beach Gardens, FL 71 STEWART INFORMATION SERVICES 68 Houston, TX 72 GENCOR INDUSTRIES 68 Orlando, FL 73 TECHNITROL 68 Trevose, PA 74 QUALCOMM 67 San Diego, CA 75 ACTION PERFORMANCE 67 Phoenix, AZ 76 SEMTECH 66 Newbury Park, CA 77 INTERSTATE BAKERIES 66 Kansas City, MO 78 BELLWETHER EXPLORATION 66 Houston, TX 79 ASYST TECHNOLOGIES 64 Fremont, CA 80 CIBER 63 Englewood, CO 81 AIRTOUCH COMMUNICATIONS 61 San Francisco, CA 82 COLUMBIA BANKING SYSTEM 61 Tacoma, WA 83 DATUM 61 Irvine, CA 84 MASTEC 61 Miami, FL 85 INNOVEX 61 Hopkins, MN 86 AMERICAN ONCOLOGY RE SOURCES 60 Houston, TX 87 CONSOLIDATED GRAPHICS 60 Houston, TX 88 TRANSOCEAN OFFSHORE 60 Houston, TX 89 TSR 60 Hauppauge, NY 90 ACCUSTAFF 59 Jacksonville, FL 91 SLI 59 Canton, MA 92 REPUBLIC INDUSTRIES 59 Ft. Lauderdale, FL 93 DOLLAR TREE STORES 58 Chesapeake, VA 94 DUCOMMUN 57 Long Beach, CA 95 SWIFT ENERGY 57 Houston, TX 96 COMPUWARE 57 Farmington Hills, MI 97 CDW COMPUTER CENTERS 56 Vernon Hills, IL 98 ALTERA 55 San Jose, CA 99 BIO-TECHNOLOGY GENERAL 55 Iselin, NJ 100 PRE-PAID LEGAL SERVICES 55 Ada, OK SOURCE FORTUNE