Over the past few weeks our editors have been spending their time working on a special project - one that will benefit you.
You see, we realize that finding worthy investments in this time of economic turmoil has been difficult. Investors tend to pump money into mutual funds when the market advances, and when the market goes down they take their money out. In fact just about $12.1 billion has been withdrawn from mutual funds in the past week.
Here's the thing. Not all stocks are bad. In fact there are many stocks that are selling at bargain-basement prices. I'm talking about stocks that are worthy investments and strong enough to withstand any market downturn.
But finding those stocks may be as hard as looking for a needle in a haystack. Well, to most people anyway. But here at the Taipan Publishing Group, finding moneymaking opportunities that could put you on the path to financial freedom... even secure a comfortable retirement... is our number one goal.
So we decided to do the work for you. That's the project I mentioned earlier. Our editors have put together a series of special reports titled "Five Stocks To Grow Rich On."
And just as the title says, these are stocks you can grow rich on. What's more, they are each under $10 a share... and are in perfect position to skyrocket when the market rebounds.
But here's the best news: The reports are yours, free of charge. Yes, that's right, free of charge. Although we could easily value the entire series at $299... we're giving you the entire series free. No strings attached... no hidden fees... no catch.
Why would we give you a series of reports worth $299 free? It's our gift to you for being a loyal member of the Taipan Publishing Group. It's the best way I know to show our appreciation for you choosing Taipan as your source for investment ideas.
The first report is below. Justice Litle, editor of Safe Haven Investor and Taipan Daily, found an energy company that has produced 15% compounded growth for the past four years. Because of market conditions, this company is undervalued. In fact it trades for three to five times earnings! It's a steal.
I hope you enjoy your free report. You can look forward to receiving the 2nd report in the series next week.
Until then, here's to a world of opportunities,
Sandy Franks
Executive Publisher
Taipan Daily
A Deep Well of Profits
by Justice Litle, Editorial Director, Safe Haven Investor
Key Energy Services (KEG:NYSE) is the largest rig-based well service company in the world.
You could say the main job for a company like Key is to "keep the oil & gas flowing." Once a well is drilled, that well has to be maintained and serviced throughout its life. This is what Key does.
It's a great business because you always have clients and you always get paid. The world is not going to give up its oil and gas addiction any time soon... and as long as we need fossil fuels, we'll need companies like Key.
Being the largest well service company in the world, Key also has one of the most attractive client rosters in the world. The company's client list is populated with blue-chip names like BP, ExxonMobil, ConocoPhillips, and others.
Key's operations are primarily in the U.S., but the company is also expanding in energy-rich places like Russia and Mexico. The rising trend of NOCs - nationalized oil and gas companies - is good news for a player like Key.
While oil rich governments are happy to take over the means of production and shut out the oil majors, it's often the case that the host country is short on technology and expertise. So they invite in savvy outsiders like Key to come service the wells (and to provide other high-margin services on the side while they're at it, like equipment rental).
An Undisputed Market Leader
It's also important to note that Key Energy Services is the undisputed market leader in its field. In a challenging oil and gas environment like the one we're now in, being the market leader carries a number of advantages. For example:
Key has a higher class of customer due to its focus on top-notch service, training and equipment (and its willingness to invest in all three areas). Because Key's customer base runs more to the "big boys" - supermajors, large independents and so on - Key is less likely than smaller competitors to take a revenue hit from reduced customer spending.
Key is able to charge a premium for its services because of its position as a market leader (and reputation for quality levels above and beyond the competition).
Key's balance sheet is secure; the company's long-term debt doesn't mature until 2012, and cash levels and credit lines are healthy. This is a BIG edge in comparison to Key's smaller competitors, many of whom are seeing their liquidity dry up.
Key Energy Services has a little bit of leverage on its balance sheet - long-term debt closes in on $600 million - but that's forgivable because the debt has years to maturity, and as a well service company, Key's cash flow comes in like clockwork.
Key's Powerful Growth Rate
One of the truly unbelievable things about Key right now is the valuation. As of this writing, Key trades for 3.73 times earnings.
This is amazing because of the powerful growth rate Key has booked in recent years. The slide below is from a recent Key presentation at the 2008 Bank of America Energy Conference.
As the chart shows, Key has kept up a better than 15% compound annual growth rate (CAGR) for the past four to five years. If that pace continues, revenues will double in the next five years. And even if Key's growth rate were to fall by half, revenues would still double in a decade. Higher revenues mean fatter profit margins for a well service company like Key, by way of cost efficiencies and greater operating leverage.
And yet, in spite of all that, Key now trades for three to five times earnings due to the panic. Three to five times earnings!
That means somebody with a big enough chunk of cash (or the right financing) could hypothetically buy this healthy, vital, steadily growing, blue-chip-plated business for a song... and have the earnings stream pay for their whole purchase in three to five years!
For a rock-solid business with steady cash flow and blue-chip customers, that kind of value is unheard of.
The only reason we are seeing opportunities like this is because small investors are panicked and the big institutions are tapped out. All the asset managers who would normally be backing up the truck for companies like Key have instead been forced into a defensive crouch.
These types of bargains won't last forever. When sanity returns to markets and oil resumes its long-term rising uptrend (as it certainly will do), Key could again become a $20 stock. That would be a more than 300% gain from today's levels.
Action to take: Buy Key Energy Services (KEG:NYSE) up to $6 per share.
This is just one way to profit from today's economic turmoil. Thanks to a federal law, there's another new opportunity I'd like to tell you about. It's a program I call the "13F Distribution Plan" and it allows you to legally skim money from the cutthroat Wall Street firms who've gotten obscenely rich at the expense of ordinary folks like you.
By following the detailed instructions outlined in this new report, you'll learn how to add $4,570 to $11,450 to your bank account every month, courtesy of the U.S. Government.
Download your copy of this Exclusive Report now.
