Big Bucks From A Broken Chart...

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Where Can You Turn $300 Into $1.3 Million Right Now?

Our own small-company specialist, Robert Morris, has found a way to 'sniff out' tiny penny stocks on the verge of a major breakout.  And the timing for this has never been better.

You see, the system takes advantage of an obscure SEC regulation that sends penny stock prices through the roof.

We've seen some stocks gain 852%... 5,450%... even 17,496% in no time flat.

Click here for the details...
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For example, take a look at this chart.


You can imagine my surprise when I looked at a chart and noticed something strange was happening… I thought the chart was broken!

I double checked my data.  I reran the numbers.  Sure enough, the chart was right…

Notice how closely these two graphs matched each other?  This is a pair meant to go together… like peanut butter & jelly.  But recently they’ve started splitting apart.

What’s going on here?

I dug a little deeper… and I found the answer.

The graph, as you’ve probably figured out, charts the price of oil and Diamond Offshore (DO).  Diamond is an offshore drilling contractor.  They have 47 offshore rigs to drill oil and gas wells.  One of their largest customers is Petrobras, the giant Brazilian oil company.

Customers hire Diamond to drill oil and natural gas wells… so it stands to reason as oil prices move higher, the demand for drilling services increases.  This of course causes the stock price to move higher.

It’s amazing… like clockwork, as oil prices went up, Diamond’s stock went up.  And as oil prices fell, the stock fell too.

So why the recent divergence?  Why did the prices start coming apart just a few months ago?

The answer is simple… and I can explain it in a word (or more appropriately two letters), “BP”.  If you look at the chart, the separation started right around the BP oil spill in the Gulf of Mexico.  Clearly the talk of moratoriums and limitations on offshore drilling put a damper on the stock.

Despite the upward movement of oil prices, Diamond’s stock is stuck.

But I don’t expect it to last long.

First off, it looks like BP has plugged the well… thank goodness.  The cleanup is underway.  And the media blitz out of BP about their efforts can’t hurt either.  Once this spill is in our rearview mirror, I’m expecting Diamond’s stock to start moving higher.

But that’s not the only reason.

Don’t forget, Diamond drills wells all over the world.  If the Gulf region was declared “off limits” permanently (highly unlikely in my mind), they’d simply move their drilling equipment elsewhere.  They can move down to Brazil or off the coast of England.  The Middle East is another option and so is Indonesia.  There’s no lack of places to drill for oil and gas.

Long term the actions of the US government, while painful, are far from devastating.

Let me make one more point.

Oil prices are going to increase.  It’s a simple fact.  Just look at the demand for energy coming out of China and other emerging markets.  Don’t ignore calls of $150 or $200 barrels of oil… it’s going to happen and it’s probably not far off.

Take another look at the “broken” chart.  Before long, investors will realize Diamond’s stock has been unfairly punished.  Sooner rather than later, we’ll see it moving higher, right along with the price of oil.

***Editor’s Note***  It’s no secret that the role of energy is going to expand exponentially in the world’s affairs over the next few years.  With everything that’s happening in the Middle East, with offshore drilling and the race to find alternative fuels, it stands to reason that the energy sector could be THE place to invest over the foreseeable future.  And to help you capitalize on this movement, we’re going to be launching a new investment service that focuses specifically on this dynamic sector.  Keep an eye on your inbox for a series of FREE reports we’re writing about this timely opportunity…

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