This part of the energy sector is somewhat out-of-favor now but
IMO 2020 will cause it to skyrocket next year, and one undervalued
stock in particular is poised to make investors big profits.
Dear Cabot Wealth Network Member,
Let me tell you why I am SO excited to recommend this stock.
It starts with sulfur emissions.
Sulfur emissions, specifically sulfur dioxide, isn’t good for humans. It causes a number of serious health problems. And, sulfur also damages the environment.
While forest fires and volcanoes are major natural contributors to environmental sulfur, burning fossil fuels—coal and diesel fuel in particular—is the largest source of sulfur dioxide from human activities.
According to the Earth System Science Education Alliance, once in the atmosphere, sulfur dioxide easily forms sulfate ions, which are negatively charged particles made up of sulfur and oxygen atoms. Because of their negative charge, sulfate ions readily combine with water vapor in the atmosphere to form small droplets of sulfuric acid, what we call “acid rain.”
So, there are a number of initiatives to reduce sulfur emissions. And those initiatives target the industries that are responsible for producing the most sulfur.
One of the greatest contributors to sulfur emissions is maritime transportation.
If you’re like me, this may surprise you. It surprised me when I first heard it. But then it pretty quickly began to make sense.
Over 90% of global trade happens on the oceans.
There are 38,900 oil tankers and cargo ships constantly traversing the globe. And emitting all kinds of sulfur oxides (SOx) into the atmosphere.
38,900. That’s a big number, but not enormous given that we’re talking about the whole world, right? I mean, go to a football game and you’ll find parking lots that hold that many cars at just one stadium.
Well, it turns out these tankers and ships produce more sulfur emissions than cars. A lot more.
In fact, the 15 largest ships in the world produce more sulfur emissions than ALL the world’s cars combined. That’s more than 1 billion cars.
Let that sink in for just a moment.
Just 15 ships produce more sulfur than 1 billion+ cars!
Granted those are the 15 largest ships in the world, but still. And don’t forget there are 38,885 more ships, and they’re not much better.
So, if you’re going to get serious about reducing sulfur emissions, you need to address sulfur emissions from ships.
And that is what’s happening.
If you’re familiar with the maritime industry at all you know there is a global group called the International Maritime Organization or IMO.
The IMO works with industry, regulators, coast guards and other government players around the world to create and enforce rules that affect ships and shipping. Whether it’s insurance, training requirements, safety, hull designs, piracy, liability for accidents and other maritime law, or whatever else, the IMO has committees, programs and rules to address it.
Not surprisingly, when it became clear that the maritime industry was a major source of sulfur emissions, the IMO engaged with government officials, scientists, economists, and leaders of both the shipping and oil industries to develop a plan.
The result is IMO 2020, the plan with an effective date of January 1, 2020.
IMO 2020 is a relatively simple but far-reaching plan by which tankers and ships will substantially reduce their sulfur emissions.
There are two ways to accomplish that goal.
The first is to install scrubbers that remove sulfur from exhaust gas and release it into the ocean.
Some ship owners will likely install scrubbers but they’re expensive, require ongoing maintenance, and may be difficult or impossible to retrofit so they won’t work on existing ships.
The second approach is to burn low-sulfur diesel fuel.
While low-sulfur diesel fuel is more expensive, that added cost is paid over time, rather than a big upfront cost. And there’s no additional equipment or maintenance costs required.
The bottom line is using low-sulfur diesel fuel is a simple solution and experts expect most of the shipping industry will go that route.
How low-sulfur fuel drives high profits
As demand for low-sulfur diesel fuel rises, so will prices, and profit margins.
That’s good news for oil refiners who will see rising earnings per share.
In fact, the EPS of the 6 top public U.S. oil refining companies are expected to dramatically increase—by 85.4%—in 2020.
Now let’s focus again on this superstar stock recommendation …
Like the rest of the sector, it is expected to grow EPS dramatically in 2020 as the IMO 2020 takes effect and drive up oil company profits.
And looking at 2020, this large cap stock is trading at a P/E multiple of less than 9, well below the rest of the sector. That’s what flags it as an undervalued stock.
To make it even more lucrative, there are discussions of splitting up the company. That will be a win-win for shareholders.
If it’s successful, the combined value will almost certainly rise.
If it’s not successful, there will be a brief dip in the stock price, making it a great time to buy even more shares. When it recovers you will own even more of a stock that will be seeing skyrocketing earnings and price growth.
Either way, it’s a superstar.
That’s why I’ve made this stock a strong buy recommendation to subscribers to my monthly advisory service, Cabot Undervalued Stocks Advisor.
As I’m sure you can understand, the identify of this stock, like all of my specific buy recommendations, is only available to my subscribers.
But, you can get immediate access to this, and all of my current recommendations for less than the cost of a cup of coffee.
I’ll tell you how in a moment.
First, let me tell you about how I am able to identify these undervalued stocks with the big profit potential.
Virtually every investor has heard the age-old wisdom of “buy low, sell high,” but most don’t have a system for doing that.
As a result they end up doing just the opposite in many cases.
A stock gets hot so they jump on the bandwagon—buying high.
And when a correction or downturn comes along, they panic and dump the stock—selling low.
A proven, disciplined system will help you turn that around, and make a lot more money.
Several years ago I developed a system that does just that. It’s called the MarketWise system.
In October 2015, I created three MarketWise portfolios of undervalued stocks that have had an average annual return of 21.98%.
These are stocks that, for a variety of reasons, aren’t trading at what I know they can be worth. Buying undervalued stocks and selling when they are up is literally the classic “buy low, sell high” strategy in action—and a great way to make money.
And that’s what we’ve done ever since. Bought low. Sold high. Made money. Moving into stocks that were lower than they should be and riding them up to profits.
Every step of the way, I’ve shared my detailed trading recommendations with subscribers to Cabot Undervalued Stocks Advisor.
3 exclusive undervalued stocks portfolios
Subscribers to Cabot Undervalued Stocks Advisor have three exclusive portfolios to follow. We typically have 6-10 stocks in each portfolio, depending on the opportunities we find.
A manageable number for you, especially since we’re sending you detailed alerts and updates on a regular basis telling you exactly when to buy, hold or sell.
The secret ingredient in all three of these portfolios is my proprietary stock analysis methodology called the MarketWise System that focuses on eliminating some of the risks associated with stock investing.
I review over 1,100 stocks on a regular basis, searching for just the right combination of earnings growth, P/E and debt ratio. Once I’ve identified prospects, I don’t buy them until their price charts indicate a readiness to rise.
Here are the primary filters in the MarketWise System:
The MarketWise System enables me to identify many great investment opportunities. Stocks like …
And there are plenty more big winners. Winning trades, like …
- • Vertex Pharmaceuticals (VRTX) – 74.14% profit in 17.9 months
- • WellCare Health Plans (WCG) – 59.4% profit in 13.7 months
- • Adobe Systems (ADBE) – 58.45% profit in 20.2 months
- • XL Group (XL) – 58.23% profit in 15 months
- • Goldman Sachs (GS) – 55.76% profit in 16.3 months
- • PBF Energy (PBF) – 54.35% profit in 2.8 months
- • PulteGroup (PHM) – 51.29% profit in 9 months
- • Vulcan Materials (VMC) – 41.61% profit in 27.1 months
- • Applied Materials (AMAT) – 37.88% profit in 6.4 months
and there are many others!
As much as I’d love to say 100% of our trades make money, that’ s just not real life. But, in fact, 81.25% of all the stocks I’ve recommended have had gains. That’s a success percentage I can confidently put against any other analyst in the business.
Advice from a Trusted Source
Cabot Undervalued Stocks Advisor is published by Cabot Wealth Network which was founded in 1970 by Carlton Lutts, a disciplined investor with an engineering mind who developed a proprietary stock picking system using technical and fundamental analyses.
Since then Cabot Wealth Network has grown to become one of the largest and most-trusted independent investment advisory publishers in the country, serving hundreds of thousands of investors
Try Cabot Undervalued Stocks Advisor for just 81 cents a day
- ✓ Immediate access to the undervalued superstar I mentioned above so you can start making money today.
- ✓ Monthly issues of Cabot Undervalued Stocks Advisor with our latest featured stocks, recommendations and updates on all the stocks in all three portfolios, including buy, hold, and sell.
- ✓ Weekly updates and alerts featuring the latest news and opinions on our current investment recommendations as well as general market conditions.
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- ✓ Direct access to me for answers to your questions. You’ll have my personal email address so you can get answers and guidance when you need them.
Even if your investment portfolio is as little as $10,000, just one recommendation from Cabot Undervalued Stocks Advisor could bring you a profit of many times the annual cost of your subscription.
And, you get at least 3 new recommendations in every issue.
You do the math.
I think you’ll find subscribing to Cabot Undervalued Stocks Adviser is an amazing (you could even say undervalued) bargain.
I don’t want to hurry you, but keep in mind, the key to making money with undervalued stocks is buying and selling at the right time. Every minute you wait is a potential gain you didn’t make.
Remember, all of this is yours for only 81 cents a day, if you respond by midnight. Please try Cabot Undervalued Stocks Advisor now.
Yours for serious wealth building,
Chief Analyst, Cabot Undervalued Stocks Advisor
P.S. Warren Buffett once said, “I make no attempt to forecast the market—my efforts are devoted to finding undervalued securities.” As the pre-eminent investor or our time, Warren knows what he’s talking about. I’ll help you be more like Warren Buffett and guide you to great, undervalued stocks.
Let me and the MarketWise System guide you to the best undervalued stocks on the market today.