BEEI Chart Showing Signs of Bullish Breakout
Let’s start by saying that we feel that oil prices are headed higher soon. After an unprecedented run for crude oil in 2008, we have just witnessed a decline like never before. The market is trying to sort out supply/demand, global economics, and implications of the stimulus package.
Don’t get too caught up in all those discussions. Just realize that oil is a precious commodity and the World has a huge thirst for it. While we stand firmly behind the belief that renewable energies are definitely the future, we also recognize that we are nowhere near the point of independence from oil yet. In the meantime… oil is headed higher.
Some oil stocks have been completely discarded by investors, but there comes a point when we have to step back and look at the REAL VALUE out there for some of these forgotten companies.
So, while America’s dependence on foreign oil may have fallen slightly it clearly has not disappeared. Neither has the call for increased domestic exploration and production to increase our independence—which is why our latest stock idea Bald Eagle Energy (BEEI) is committed to exploring the vast energy resources found in Alaska.
According to LAPP Resources, Inc. Geological Report, “the (North Slope) basin is highly productive, and (Bald Eagle) leases are very close to the largest oilfield in North America, the Prudhoe Bay field. This indicates that the area is very prospective for further conventional oil and gas discoveries.”
And Arctic Power D.C. Coordinator Roger Herrera adds that “Alaskan oil wells are so productive that it takes 150-200 wells in the Lower 48 states to match the output of one North Slope well.”
BEEI’s business model is simple…
* Reduce capital expenditures through a minimized team of experienced management,
* Retain the consulting services of industry experts only when needed
* Utilize third party drilling companies to limit equipment and operating expenses.
In addition, BEEI’s overall strategy is to:
* Fully exploit existing production and infrastructure assets by maintaining a balance between lower risk/moderate return and higher risk/high return opportunities;
* Identify and acquire superior product assets that will generate revenue streams to invest in future growth opportunities;
* Focus on historical areas to increase the chance of discovery and to enhance the speed of development discoveries;
* Achieve operational, technical, commercial and environmental excellence in its activities;
* Partner with proven oil and gas operators who employ cutting edge technologies and demonstrate competitive advantage;
* Manage risk in high equity exploration and production permits and increase economic viability;
And what a great looking chart. Having bottomed at $0.10 just a few days ago, the stock is already showing signs of breaking out to the upside. In addition, look at the recent stock chart and consider these points:
* Daily trading volume is expanding
* Resistance level breached and new support holding
* Trading above 50-day moving average for the first time in months
* Stochastics are trending higher, but not overbought
So while volatility is definitely picking up in shares of BEEI, we think this breakout is just the beginning of a very bullish trend reversal. Based on where the stock has traded just a few short months ago in the $.60 - $.80 range, we probably still have a lot of room to run higher before major resistance comes in.
Is BEEI set to make a full-blown recovery? Who knows? It sure looks like we could be in the early stages and now might be a good time to play this trade for a huge gain.
So get this one on your trading radar right away and make sure you read our exclusive report soon which will highlight financials, recent developments and why we feel this stock is so undervalued right now.
As always, do your own in depth homework this weekend. Then get ready for what we hope is some serious trading action on Monday.
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