NXT Energy Solutions Inc. (NSFDF)

[investor15]

Why Chen Lin Is Buying Fracking Stocks And Selling Gold Holdings

Nov. 1, 2013
TheEnergyReport

Chen Lin, author of What is Chen Buying? What Is Chen Selling?, goes wherever he sees returns. In the summer, he bought mining stocks when the yellow metal hit $1,200 per ounce. Now, he's trading in his gold names and moving into the fracking space after a three-year hiatus. In this interview with The Energy Report, Lin names the companies he's buying to play a likely energy sector bottom and tells investors to actively manage their portfolios in the coming stock-picker's market.

Section of article:

CL: Recently I found a very interesting stock I've been accumulating. The company name is NXT Energy Solutions (OTC:NSFDF) [SFD:TSX.V]. It can fly airplanes over a field and detect if oil is present or not. It recently did a very large survey with PEMEX [Petróleos Mexicanos], the Mexican oil company. PEMEX already has seismic data on a certain field, they knew where it has oil deposits and where it doesn't. PEMEX asked NXT to fly over, and the results were shockingly good. NXT found every large field for PEMEX! The report is on the website. PEMEX is the co-author.

If NXT can continue like this, it can change the oil industry as we know it. You probably need seismic later on to pinpoint where the oil is, but you can fly a plane over a very broad space and then detect where the oil is. That will be a revolution in the oil industry. It's a very interesting company. It has a strong balance sheet. Recently it has started to go to the oil exploration companies and negotiate payment through royalties in exchange for its services. That can be a very interesting move. It's an interesting company. I think if everything's successful it has a very bright future.

TER: What is your outlook on energy in general for the next year?

CL: Like I said, I'm cautious about the oil price in 2014. The production from the U.S. and Canada is just amazing. If you read the Eagleford reports and Bakken reports you can see how many new wells are drilled. The completion techniques are getting better and deliver more oil production during the life of a well. I'm a little bit afraid the oil will fall much below $100/bbl. It's possible.

On one hand, you have very high oil prices now. Most of my energy companies are making money. They're doing fantastically. Though I'm not very confident the high oil price is here to stay. I want to remind everyone that if oil drops to below $80/bbl, the party of fracking stocks may be over. I would be careful and take profits as they go up. I'm going to watch the market month by month and see if the situation changes. I also believe that 2014 will be a stock pickers' market. If you pick the right stock with the right catalyst, a stock can go up a lot just on its own. That's what I'm looking at for 2014.

TER: Chen, thank you very much. This has been a fascinating conversation.

CL: Thank you. I appreciate it.

This interview was conducted by Tom Armistead of The Energy Report.

Chen Lin writes the popular stock newsletter What Is Chen Buying? What Is Chen Selling?, published and distributed by Taylor Hard Money Advisors Inc. While a doctoral candidate in aeronautical engineering at Princeton, Chen found his investment strategies were so profitable that he put his Ph.D. on the back burner. He employs a value-oriented approach and often demonstrates excellent market timing due to his exceptional technical analysis.

DISCLOSURE:

1) Tom Armistead conducted this interview for The Energy Report and provides services to The Energy Report as an independent contractor. He or his family owns shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of The Energy Report: None. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.

3) Chen Lin: I or my family own shares of the following companies mentioned in this interview: Ithaca Energy Inc., Penn Virginia Corp., Harvest Natural Resources, BNK Petroleum, Rock Energy, RMP Energy and NXT Energy Inc. I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.

5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.

6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

http://seekingalpha.com/article/1797022-why-chen-lin-is-buying-fracking-stocks-and-selling-gold-holdings