For the past few months, I’ve forecasted a sharp rebound in global oil prices. During March and April, investors were paralyzed as they watched WTI crude blow under $70 per barrel. But we’ve seen a proper rebound, with prices above $80 today.
That’s been incredible news for investors at Tactical Wealth Investor. We have a slew of different energy plays. None is bigger than one of my favorites in the world.
And I’ll give you the name… right now.
Six Stocks to Buy
In January, I released a report called “6 Foundational Stocks to Buy.” The list included several inexpensive energy, banking and mining names that I expect will rebound by large amounts in 24 months. Six months in, we’re on fire.
And nothing is hotter right now than Black Stone Minerals LP (NYSE: BSM).
The company engages in acquiring, exploring and developing U.S. oil and gas properties. It maintains a diverse portfolio of oil and gas assets in several states, including Louisiana, Texas and Wyoming.
BSM’s acreage is heavily centered around natural gas production, which continues to experience a boom from rising global demand and the Eurozone’s energy shortages. This one stands out of all the energy names we could pick as a value play.
Shares are up 12% so far this year (with plenty of upside remaining). But that’s not the best part… As a limited partnership, it is also paying a dividend north of 10%.
Like all my favorite energy names, BSM’s management has run a very tight balance sheet through these tumultuous past eight months. The company has an F score of 7 (out of 9), signaling an improving commitment to enhancing shareholder value.
In addition, the company has NO debt and colossal margins. It still trades at a reasonable price-to-earnings (PE) ratio under 7. Those strong numbers are directly tied to record free cash flow and strong discipline among its executives.
Even better, the company is now entering a multi-state mineral rights deal with Longroad Energy to develop alternative energy projects on the company’s acres, while they maintain the subsurface rights. This can serve as a tool to lower additional costs, improve operational efficiency, and give it a roadmap to developing even larger projects that align with the increasing shift toward lower-emissions energy.
This Week’s Pick Will Be Even Better
Now, BSM is an incredible long-term value and income play. But this week, I have something even more special.
I’ll unveil my latest income play, and I’m looking at a name trading at a 25% discount to its net asset value, and a mouth-watering 13.5% distribution. Investors can count on monthly checks and big potential upside alongside some of the world’s top institutional investors.
But you have to sign up at Tactical Wealth Investor — and join me by Tuesday evening for our special price.
The pick will arrive later this week.
To your wealth,
Garrett Baldwin
P.S. Please let me know if you have any feedback, questions about today’s issue, or anything else by emailing us at [email protected].
*This is for informational and educational purposes only. Trading has an inherent risk, so trade at your own risk.
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Market Momentum is Green
Momentum is green, but we are looking at a possible sell-off with names like Apple Inc. (Nasdaq: AAPL) and Amazon.com Inc. (Nasdaq: AMZN) set to report earnings later this week.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
