Contents
I-Introduction
In Europe, given the current energy crisis, many financial analyses recommend investing in the energy sector, particularly in energy commodities.
However, we're going to show that there are far more lucrative investment opportunities.
"Invest in companies with very high dividend yields".
Thanks to their performance, these companies tend to outperform the market and protect shareholders against downturns with their generous dividends.
The following statement, which emphasizes the need for oil and gas to maintain civilization, was not uttered by an oil tycoon or a gas oligarch, but by Elon Musk, an automotive industry visionary.
"We need to use oil and gas, because otherwise, civilization will crumble.
"We need to use oil and gas, because otherwise, civilization will crumble. "
As founder and CEO of Tesla, he is renowned for his innovative ideas and bold vision of sustainable mobility.
Elon Musk is often considered a pragmatist when it comes to energy transition.
While it strongly supports the electrification of transport and the use of renewable energy sources, it also recognizes that doing without fossil fuels altogether represents a complex challenge, difficult to achieve in the short term.
He adds:
"...so in order for civilization to continue to function, WE DO NEED OIL AND GAS. I think any reasonable person would conclude that."
"...so in order for civilization to continue to function, WE DO NEED OIL AND GAS. I think any reasonable person would conclude that."
Discussions about fossil fuels are often charged with emotion and sensitivity.
In the context of climate change and the energy transition, the issue of fossil fuels has become highly politicized and is the subject of passionate debate.
Since Greta Thunberg's memorable speech at the United Nations, fossil fuels have often been portrayed as the ultimate evil.
It is important to note, however, that fossil fuels have played a decisive role in economic and technological growth, improving the quality of life for many people and lifting hundreds of millions out of poverty.
The transition to cleaner, renewable energy sources is a laudable and indispensable objective in the fight against the effects of climate change and the preservation of our planet.
However, it is equally essential to recognize that this transition cannot be achieved overnight, and requires a gradual and realistic process.
Solar, wind and other renewable energy sources have made significant advances over the years, but they are not yet capable of fully replacing fossil fuels in terms of energy production and infrastructure.
The energy transition involves complex challenges relating to technology, costs, infrastructure, energy storage and managing fluctuations in demand.
To achieve this transition, it is imperative to develop and invest in renewable energy technologies, while exploring energy efficiency and emissions reduction solutions in all sectors of the economy.
In addition, it is crucial to put in place policies and incentives to encourage companies and individuals to adopt sustainable practices and choose clean energy.
Research, innovation and international cooperation are key to accelerating this transition to a more sustainable energy future.
While the ideal is to achieve a world powered exclusively by renewable energies, it's just as important to be realistic and pragmatic in the face of today's challenges.
The energy transition is a complex process that requires the commitment of all players, including governments, businesses and individuals, to achieve a cleaner, more sustainable energy future, as Elon Musk and the experts recognize.
Fossil fuels remain at the heart of media debates because of their impact on the environment and climate change.
This media attention can influence investors' decisions, prompting them to shy away from fossil fuel companies because of environmental and social concerns.
However, it is essential to recognize that fossil fuels still play a vital role in the global economy and the daily lives of millions of people. Oil, gas and coal power transport, heat homes and provide electricity in many countries.
Some countries remain heavily dependent on coal for power generation, and while the transition to cleaner energy sources is desirable, it cannot be achieved overnight. The challenges of energy transition are complex and require long-term solutions.
Companies in the fossil fuel sector play a major role in the economy and offer attractive returns to investors, notably in the form of generous dividends of up to 45%.
Despite debates about the environmental impact of their activities, these companies continue to generate substantial revenues and profits.
Ultimately, the choice of whether to invest in fossil fuels or renewables depends on the preferences, values and objectives of each investor.
Some people may feel more in tune with companies adopting sustainable practices and contributing to the energy transition, while others may see opportunities in companies in the fossil fuel sector.
II-Analysis of 8 undervalued stocks offering dividends of up to 45%!
Due to the current energy crisis in Europe, many financial publications are currently recommending investments in the energy sector, particularly in energy commodities.
However, it's important to note that there are more lucrative investment opportunities than these.
Let's take a close look at the current situation:
While we recognize the potentially lucrative appeal of investing in energy, it's essential to highlight the timing of investments.
Indeed, the energy sector is characterized by high volatility, and inopportune investments in the wrong stocks can lead to considerable losses.
Take the price of oil, for example. Despite recent media concerns about the risk of power and diesel shortages in Europe, oil prices are currently on a downward trend (mid-2023).
Against this backdrop, buying oil stocks seems to present a high level of risk.
Why are we witnessing this drop in oil prices, when the general anxiety is linked to energy shortages?
III-Our hypothesis is based on two fundamental reasons
The first reason is that the energy crisis panic is confined to Europe. The energy shortage here is not due to global shortages, but rather to a problem of energy supply to Europe. This European energy crisis is, in fact, an artificial situation deliberately created by European leaders, who have imposed sanctions on major energy suppliers. As a result, the rest of the world does not fear an energy shortage, and energy prices are unlikely to rise significantly outside Europe.
Secondly, lower energy prices around the world are due to the fact that markets are already looking to the future, in anticipation of the post-European energy crisis. Yes, towards the future. As we shall demonstrate, all indicators point to an imminent period of recession. One reliable indicator is the yield curve, which compares the 10-year interest rate on US federal government debt with the 3-month rate, i.e. long-term rates (10 years) versus short-term rates (3 months).
This curve is one of the most reliable indicators of a recession.
Historically, whenever this curve has moved into negative territory, a recession has followed within 2 years.
This situation occurs when short-term rates exceed long-term rates, a process known as "inversion of the yield curve".
This inversion is so named because long-term rates should normally be higher than short-term rates.
Indeed, when you lend for the long term, the risk is higher than for short-term loans, which justifies a higher interest rate.
Historically, this type of situation arises when the US central bank raises rates faster than the market expects.
As a result, the market is forecasting a recession ahead.
While this may be seen as bad news for the economy, we will demonstrate later in this special report that a recession offers unprecedented investment opportunities.
IV-Overview of energy raw materials
1-Oil :
In the chart below, the orange curve represents the difference between long-term and short-term rates, as mentioned earlier.
The red bars indicate the start of the inversion of the yield curve in relation to the price of oil. It is notable that each inversion is followed by a significant fall in oil prices in the months that follow.
In 2001, although the drop may not seem considerable at first sight, it nevertheless represented a 35% drop, from over 30 to 20.
In 2008, despite an initial rise in oil prices after the inversion, a sharp fall was subsequently recorded.
It could be argued that the current situation is unique because of the crisis in Ukraine, but it's important to remember that in 2008, a similar narrative claimed that we had reached peak oil and that oil would become increasingly scarce.
Despite this story, oil suffered a major collapse in 2008 and lost considerable value.
Consequently, investing in oil today seems a risky choice, especially as it has already started to fall.
2-Natural gas :
Natural gas generally undergoes a more or less sharp correction shortly after the inversion of the yield curve.
Sometimes these corrections are followed by a rapid recovery, while other times we have to wait a little longer.
Gas corrects to a greater or lesser extent shortly after the inversion of the yield curve.
Sometimes these bounces are followed by a quick rebound, sometimes you have to wait a little longer.
3-Uranium :
Uranium fell sharply during the 2008 crisis, and only rebounded in 2021.
Although we have a favorable medium-term outlook on uranium, we are not proposing any uranium mining companies, as we have not found any with a satisfactory level of risk and dividends.
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4-And finally, the worst fossil fuel, coal:
Finally, coal, often considered the worst fossil fuel, is listed by zone.
On average, prices fell sharply in 2009, then again in 2015, at a time when a recession seemed imminent, and finally again in 2020.
However, looking at the chart of the Global Renewable Energies ETF, the world's leading fund composed of companies operating in renewable energies, we notice a striking similarity with that of oil.
Faced with these sharp corrections, the idea might be to protect oneself by investing in renewable energies, a fast-growing sector.
It should be noted that the fall was particularly severe in 2009, exceeding that of fossil fuels.
In addition, there is a significant correlation between renewable energies and fossil fuels, although the amplitudes of increase and decrease differ.
We are currently in a two-year consolidation phase.
It will be interesting to see whether we emerge from this phase on a high or a low.
We probably anticipate a bottom exit initially due to the recession, but a rebound could be an attractive investment opportunity.
This pattern bears striking similarities to that of oil. It is conceivable that, in the face of these major corrections, renewable energies could act as a hedge, given that they are a fast-growing sector.
Remarkably, the fall in 2009 was far more pronounced for renewable energies than for fossil fuels.
What's more, there is a significant correlation between renewable energies and fossil fuels, with amplitude variations being the main difference.
We are currently going through a period of stagnation, a sort of congestion phase that has lasted two years.
It will be fascinating to see whether we emerge from this phase on a high or a low.
Our outlook leads us to believe that we may initially exit at the bottom due to the recession, but that a potential rebound could be very attractive to exploit.
That's why, despite lower dividends than fossil fuel companies, we'd like to introduce you to a particularly promising renewable energy company.
V-High short-term risk
At a time when the general preoccupation is with the energy crisis, we are witnessing a noticeable desynchronization between oil prices and the share values of oil companies.
In the chart below, the price of oil is shown in blue, while the price of the ETF composed of US energy companies is in orange:
Since July 2022, there has been a marked divergence, with a significant correction in oil prices on the one hand, and a strong rebound in oil company prices on the other. It seems highly likely that one of these curves will eventually merge with the other.
However, for the orange curve to continue rising, the price of oil would have to rise above its peak levels again.
This prospect seems unlikely, especially in light of steadily deteriorating economic indicators.
In our view, the most likely scenario is for energy company share prices to fall over the coming months.
This reinforces our belief that this is not the ideal time to invest in energy companies, at least not just any companies.
Given this situation, we believe there is a high risk of a short-term correction in the energy sector. As we have seen in previous charts, corrections tend to affect all energy sources generally, so there seems to be no safe haven in energy.
What's more, these corrections are generally substantial, sometimes exceeding 50%.
VI- After correction?
As illustrated in the chart, the end of a recession often sees a significant rebound in energy stocks, particularly oil. It's this rebound that has caught our attention.
Before considering investments in energy companies, it makes sense to examine whether certain energy sources, particularly fossil fuels, still have a future, including the possibility of a rebound.
Analysis of global oil and coal consumption in 2017:
As the graph shows, a complete shift away from fossil fuels is unlikely in the near future.
What's more, replacing fossil fuels with renewable energies requires a considerable amount of energy, much of which currently comes from fossil fuels.
As a result, we are not particularly concerned about the medium-term future of fossil fuels.
Let's take a look at the composition of global demand for oil and coal to identify the world's main consumers.
Oil consumption by country to 2017 (source: US Department of Energy):
We note that developed countries such as Europe and the United States have reduced their oil consumption since 2008.
However, the rest of the world is not following this trend, suggesting that the Western will to combat climate change is not universally shared.
Coal consumption shows a similar pattern:
After a slight decline between 2012 and 2020, coal consumption has risen again to reach record levels in 2021 and 2022, mainly due to growth in India and China, countries less sensitive to environmental concerns than Western countries.
In addition, due to energy supply difficulties in Europe, some coal-fired power plants have been reactivated to meet winter needs.
Let's take a look at gas prices in Europe:
While the graph may give the impression that the situation is normalizing, a longer-term analysis reveals that gas prices remain high and continue to trend upwards.
What's more, the recent fall in prices is partly explained by the fact that gas pipelines to import gas from Russia were still operational, enabling European countries to maximize their gas reserves.
However, with the closure of Nord Stream due to sabotage, incoming gas flows will drop considerably, whereas 40% of the gas consumed in Europe used to come from Russia.
Replacing these flows poses a challenge, as there is currently no infrastructure capable of providing an equivalent supply.
What's more, the recent fall in gas prices is largely explained by the fact that when the pipelines allowing gas imports from Russia were still in service, European countries maximized their gas storage.
However, the problem now lies in the fact that incoming gas flows will drop considerably, as Russian pipelines are no longer operational due to the sabotage of Nord Stream.
It is important to note that 40% of the gas consumed in Europe came from Russia. These Russian flows will therefore have to be replaced, but there are no other pipelines capable of supplying a volume comparable to that from Russia.
As a result, Europe will have to turn to Liquefied Natural Gas (LNG), which requires major infrastructure for liquefaction and regasification.
Europe does not yet have the infrastructure needed to replace Russian gas.
This means that the current fall in gas prices is probably temporary.
Investing in companies likely to benefit from higher gas prices, or with the skills and resources to import gas, therefore seems an attractive option.
VII-Will you miss out on the opportunity of these very high-yield shares, with yields of up to 45%?
Together with our experts, we have selected 8 high-dividend stocks for you, with dividends of up to 45%.
Returns you've never had.
A report of more than 20 pages, which will be given to you, explains the sound reasons for this choice.
Share no. 1 T: 45% dividend
The company's business consists of extracting oil in several concessions.
Its very particular interest is that it has almost 1 billion euros on its balance sheet that it doesn't need, and it has no debt.
Why doesn't it need them? Because this company only exploits an oil deposit, it doesn't look for new wells, which would require major investment.
Action n°2 G: 32% dividend
This company produces coal. Coal is dirty, it pollutes, but it makes a lot of money!
As you know, renewable energies need fossil fuels. Economically and socially speaking, it's impossible to do without coal and oil...
It's up to each individual to decide whether or not to invest in this type of company, depending on his or her personal convictions.
However, as nobody wants to get their hands into coal, this sector offers companies at a very low price.
Share no. 3 G: 40% dividend)
This oil company operates in Iraqi Kurdistan, a high-risk geopolitical region.
As the Americans regularly carry out military operations in Iraqi Kurdistan, it seems that they are securing the region so that oil can be exported.
In addition, Turkey has a pipeline for exporting this black gold.
Consequently, the situation is tense on the ground, but also appears to be in a kind of status quo, as in practice little is changing. This status quo is attractive to investors, since we need stability to invest.
What's more, the company is very profitable.
As you can imagine, to launch this project, it took many weeks to put together the content so that you have a complete package that meets all your needs.
These actions have been selected for you.
The public price of this strict selection of 8 high-dividend shares is CHF 1,000, in line with the work done and the yield prospects.
This may seem high, but remember the opportunity to earn 45% per year with a single share and understand that this publication is the result of:
-More than 30 years of experience learning how to detect the best projects.
-Thousands of hours of research spent to develop the most effective strategy for you.
Be aware that this 8 share pack purchase is a great opportunity for you to generate recurring income of up to 45% per year.
If you invest CHF 2,000 in each share, you'll receive an average dividend of almost 20%.
This CHF 10,000 will give you almost CHF 2,000 a year.
In other words, a possibility of obtaining almost :
CHF 10,000 over 5 years
-CHF 20,000 over 10 years
The 45%-dividend nugget weighs in at USD 700,000 and has almost 1 billion in cash, so in the event of bankruptcy, you'll be reimbursed - it's as simple as that.
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