Update - August 23, 2022
Energy’s Best Kept Secret
Greetings from Ghent, Belgium… Europe’s best kept secret.
The view from the nearby port tells us much about the world.
Piles and piles of cars sit waiting to hitch a ride to their new homes. Containers are piled up sky-high on the docks. And, in a hint at the reason I’m here, windmills stretch across the horizon, nearly blocking the view of the distant oil rigs.
Quite interesting…
Ships with loads of liquified natural gas zigzag in front of the entrance to the port. Locals are adamant that Russian gas isn’t headed here… only North Sea gas. All the Russian gas, they promise, is headed to other countries.
It’s a cornucopia of energy… and none of it is going to the right places. And certainly none of it is selling at a cheap price.
While on this cruise of the Baltic and North seas, I stood before a crowd of some of your fellow subscribers and shared my thoughts on the world’s energy situation.
What an opportunity it presents us.
I started my presentation with a few lines that I recently shared with you…
From Rockefeller to Musk, many of the world’s billionaires made their money from great changes on the fringes of the energy market.
We’re certainly in the midst of a great change today.
A big section of my speech focused on the recently passed Inflation Reduction Act (IRA).
While the huge spending bill has very little to do with reducing inflation and will in fact almost certainly add to it, it contains a lot of heavy-handed pushing for the energy sector.
It allocates billions of dollars for everything from rooftop solar credits to studying hydrogen as a power source. And, of course, it focuses tightly on the nation’s energy infrastructure.
It’s creating a tremendous opportunity for our latest well-timed play… Quanta Services (PWR).
The stock has climbed since I recommended it earlier this month. It saw a healthy bounce last week as the IRA became law.
What’s most notable is that Quanta was barely affected by yesterday’s big sell-off.
That’s the immense value you get from owning a company like this in a highly volatile market. It will remain stable no matter the overall market sentiment.
As long as Washington is looking to spend hundreds of billions on the nation’s energy sector… Quanta will continue to do well.
I’ll have more details on what I shared aboard the cruise soon. For now, I strongly recommend you read the latest monthly issue and grab shares of Quanta.
Finally, we hit our trailing stop on our shares of Lucid Group (LCID) during yesterday’s sell-off. For folks who bought shares when I added Lucid to our Modern Asset Portfolio, it’s time to cash in.
But as you may know, I remain a big fan of Lucid and have been telling all members (new and old) to continue to buy shares. That means some subscribers have been holding for many months, while others just recently read our reports on the company and entered the play.
If you’re in the latter group, continue to hold. I will continue to track this very important company and keep you updated on it.
Action to Take: If you bought shares of Lucid Group (Nasdaq: LCID) when I recommended them in the June issue of Manward Letter, sell them today.
I’ll be back in the office later this week. I am eager to share my thoughts.
Be well,
Andy
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The Wall Street Journal says it will be a “once-in-a-generation opportunity”… and I want YOU to be among the first to have the chance to lock onto it. Click here to find out what it’s all about (and to get your free pick).