NOTICE: Marc’s Historic Announcement… Just 47 Hours Away
Monday will be an historic day here at Wealthy Retirement.
Investment Director Marc Lichtenfeld will finally reveal what he calls “the most important event of the year for income investors.”
This $93 trillion “happening” will last just three minutes – but impact the markets for generations.
Marc has spent more than seven months and $100,000 researching this situation. And 47 hours from now, he’ll release his full presentation to Wealthy Retirement readers.
Marc will even detail his recommendations for turning this event into a quick double – followed by years of double-digit dividends.
Please watch your inbox Monday for more details.
~ Andrew Snyder
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This is Part Four of “How to Not Wake Up Broke in Your 80s.”
You’re probably sick of hearing this, but buy long-term trends in essential industries, at bargain prices, if possible.
One of the most obvious long-term plays… energy! The world isn’t going anywhere without it.
Since it settled its suit with the U.S. government over the Gulf oil spill disaster, Transocean (NYSE: RIG) has been attracting a lot of attention.
The offshore oil driller recently exceeded analysts’ earnings estimates and is likely about to shift to a master limited partnership (MLP) structure, which traditionally pay big distributions.
The Wall Street Journal says the shift to an MLP is not likely until 2014. But as the shift develops, there should be a pop in the stock price and a high payout percentage when it is complete.
Adding to the mix is billionaire activist investor Carl Icahn, whose recent buying in the stock puts him at owning about 3.5% of the company. He is the company’s third-largest stockholder, behind two mega-institutions.
Icahn has been pounding the table for a $4 dividend from the almost $6 billion in cash the company is sitting on.
This type of pressure normally causes a dip in the stock price, which we saw in late February. It has since been rebounding nicely, but is still a bargain at several levels.
It is priced well below its biggest rival, Schlumberger (NYSE: SLB), with a forward P/E of about nine, versus 13 for SLB. Earnings are estimated to jump from $4.62 to $5.84 between this year and next, and this is not a one-year trend. It boasts a 22% per year growth estimate for the next five years.
Oil drillers, offshore and otherwise, are a fact of life and are essential. The world demand for oil is trending up, and RIG will be a key figure in the explorations and development of reserves for many years.
RIG’s stock price prior to the Gulf disaster was as high as $160 per share. It is currently sitting around $53. This stock has lots of upside in both the short and long term, and when it converts to an MLP, it will be a big income play, as well.
RIG and energy… That is how to not wake up broke in your 80s.