UTS.TO

[snowcat]

If you follow Mike Schaeffer, or get his Wealth Daily Newsletter, he promotes some oil stocks that have been real winners.  He generally gives teasers to get you to subscribe to his $700 a year news letter (which I am sure is great).  But in his teaser ads, I am always able to figure out the stock: UTS.TO

http://finance.yahoo.com/q/bc?s=UTS.TO&t=1y

here is the teaser:

Dear Investor:

Ninety miles north of the legendary Fort McMurray oil sands region in Alberta sits an untapped oil well worth $180 billion.

The property contains 3 billion barrels of oil.

2.4 billion barrels are proven and ready to be pumped.

The tiny company you'll read about in this report owns 40% of that oil, or 960,000,000 barrels.

At today's spot price of $60 per barrel, the company's oil is worth $57.6 billion.

Here's the opportunity for you and me to make another fortune in the resource market:

The company's stock trades just shy of $3.00 a share.

But I think the stock is worth a lot more. And I think it'll be trading at a much higher price in the future.

How much more, I'm not sure. But I think it's a sure bet that $19 a share will be reached, easily.

Between May 23 and June 27, the value of this company's oil property increased in value $364.7 million every single day for 34 days straight!
You see, as the price of oil increases, so does that value of the company's property. And when the value of the company's property goes up, so does its stock.

Think about this for a minute, if the company were valued at $57.6 billion (the current asset value of its oil sands property), the company's stock would trade for $162 a share.

Oil Sands Fact #1:
There's so much oil in Canada's Alberta region, it would fill over 9 million Olympic-size swimming pools.  
Read that again, my friend: It would trade for $162 a share.

But it won't be valued at $162 because getting the oil out of the ground will cost a lot of money.

That's why I discount my price targets, dramatically.

Why?

Well, what if oil falls back to the magical $25 to $30 a barrel mark.

Even though I think oil will go in the opposite direction, I calculated the value of this stock based on oil trading between $25 and $30 a barrel.

And guess what I found out? Another fortune maker!

If oil fell back to $25 - $30 a barrel, the oil this company owns would still be worth about $28 billion. That would translate to a stock price around $19.

Get My New Report
"The New Oil Sands Giant"
That's a gain of 533%, nothing to sneeze at.

But it could be more.

Here's why this stock could gain as much as 1000 to 2000 percent in the next five years.


A Money Machine That Keeps On Churning
When oil increases in price, calculating the value of this stock is like watching the National Debt Clock. where America's debt increases billions of dollars every single day.

Here's what I mean.

On June 1, 2005, oil spiked up $2.67 per barrel. It was one of the largest, single-day price moves in oil ever.

And it did wonders for this company's real estate!

On that day, the value of the company's oil increased by $2.56 billion.

Oil Sands Fact #2:
Spanning an area of nearly 55,000 square miles in the Alberta region, Canada's oil sands have been called the "Eighth wonder of the world"  
That's an increase of $2.56 billion in a single day!

Let me take it one step further.

Since May 20, 2005, the price of oil has increased 27.6%.

During this period, the value of this company's oil increased $12.48 billion.

If oil goes to $71 in the short-term (as I've been predicting), the company's oil increases another $10.56 billion.

In fact, every time oil increases 10¢ a barrel, the company's oil valuation increases $96 million. When oil increases 50¢ a barrel, the company's valuation increases $480 million.

Yet even with these numbers staring Wall Street in the face, it still may be the most undervalued oil stock in the entire market.

Check this out:
For every $1 you invest in this stock right now, you get more than $80 worth of oil!
Every 20¢ invested gets you 5.6 gallons of regular unleaded gasoline!

So you can see why I'm recommending this stock to all of my energy investors.

And I think you should buy it too, especially while it's still trading for just $3.00 a share.

Here are 4 more reasons why you should buy this stock now, before it takes off:

The oil property the company owns is huge... twice the size of Miami, Florida
The property sits 90 miles north of the second largest oil reserves known to man
There's so much oil here, it's expected to pump 190,000 barrels every single day for 40 years straight!
Everybody wants the oil... including the Chinese, which have agreed to dump $2 billion to build a pipeline to transport the oil

Oil Sands Fact #3:
"While production in most other energy-producing areas, including Texas, is declining, Alberta's production is increasing. And there's no end in sight.

Production from Alberta's oilsands has the potential to close the US energy gap. Meaning the US would never have to buy more offshore oil than it does today."
-Alberta Premier Ralph Klein, March 27, 2005  
In a minute, I'll tell you more why I think this stock is headed to $19 a share... and how every $10,000 you invest into it could turn into $63,333.

But first I want to tell you about how the company acquired this "giant maker" for literally pennies on the dollar.

When I first read that this company purchased this oil property back in 2004, my immediate reaction was that it could go down as one of the greatest steals in Canadian oil history.

On July 9, 2004, the company - trading for $0.81 at the time, mind you - acquired the 3-billion-barrel property for just... $125 million.

And this is where the story gets real interesting.

The property is situated in Alberta's Athabasca oil sands region, an hour-and-a-half drive from the legendary Fort McMurray oil sand property.

If you don't already know it, the Fort McMurray region has turned once tiny oil companies into billion dollar behemoths.

I'm talking about companies like Suncor Energy... once worth $0.71 a share in the early 1990s... now up more than 5,714%!

And Imperial Oil, relatively unknown in 1994 at $4 a share... now trades for $85 a share.

NEWS FLASH:
June 29th, 2005 - "U.S. concern is rising over China muscling in on its traditional spheres of energy influence - such as Canada. Canada's Enbridge Inc. (ENB) and PetroChina International Co., a unit of PetroChina Co. Ltd. (PTR), have signed a memorandum of understanding to cooperate on Enbridge's proposed Gateway Pipeline to facilitate the supply of crude to China. In addition, there have been a spate of buy-ins to Canadian oil sands projects by Chinese companies."  
Fort McMurray and the surrounding oil sands were "company makers" for these companies. And made fortunes for investors who bought in these early stage stocks.

But the next round of oil sands giants are now entering the race.

You see, just a few years ago - in the late 1990s to be exact - Canada's oil sands were viewed as nothing more than a coversational topic at a cocktail party. Everybody thought there was plenty of oil in the Middle East, Russia, and the Gulf of Mexico.

Since oil sands cost more to produce than conventional oil, a company that ventured into the oil sands region to start development was taking a huge risk.

That was 6 years ago... when oil was trading for $12 a barrel.

Today, however, that's all changed

With oil trading above $60 a barrel... and likely to go much higher, Canada's oil sands are one of the most prized assets in the entire energy market.

And our tiny $3.00 company is sitting on a massive treasure.

At a minimum, 2.4 billion barrels are recoverable from this property.

With oil currently trading for $60 a barrel, the recoverable oil is worth $144 billion. And that's if oil stays at $60 a barrel, something that's highly unlikely. In fact, I think we'll see oil trading between $81 and $105 a barrel within 5 years.

So the potential future value of this property is even bigger, maybe north of $200 billion.

The tiny company I'm recommending should make early investors fortunes.

Readers of my Pure Energy Report have already been in the stock for a few months now. And we're sitting on a 38% gain as of this writing.

But like I said, that's nothing compared to the profits we'll enjoy in the coming years.

This stock is a giant. Pure and simple.

Here's why.

Forget About Filthy Rich Oil Sheiks... Filthy Rich Oil Canucks Now Control the Oil Market
Let me ask you a question: Where can you find oil reserves so big that...
There's already more oil in place than in all of Saudi Arabia...
There's more there to tap than in Iraq, Iran, and Libya combined...
It even dwarfs the oil in Nigeria, Russia, United Arab Emirates, Kuwait, and China all put together?

In some new oil field in the Middle East or Russia? Wrong! Get My New Report
"The New Oil Sands Giant"


In Alaska? Nope. How about the Gulf or Caspian Sea? Try again.

This great vast reserve is called the Athabasca oil sands, hidden in the wilderness in the province of Alberta. Now, if you know anything about the oil sands, I know what you're thinking...

That oil is too hard to get out. It's even frozen. So it's going to be too hard and expensive to get the oil, right?

A few years ago, I would have said you're right. But suddenly, that's changed. With oil trading at $60 a barrel, the whole oil sands region is prime for development.

And that's why a handful of investors quick enough to move on this tiny $3.00 stock are going to get very rich.

So, I want you to understand what I'm suggesting here.

You see, the oil revolution in Canada will be so profound in the coming years, that I actually purchased a home this year in British Columbia so I can be here at the heart of the Canadian oil boom.

"Keep up the wonderful work in finding great stocks. You should be nominated for a award for the good work that you are doing."
- A. Ahmed, June 11, 2005  
But I'm not the only one here watching the Canadian oil markets.

The Chinese are here too. And they want Canada's oil... and are willing to pay a lot for it.

And the competition between the US and China for Canada's prized oil is setting up the scenario for an absolute profit making frenzy.

Right now the world is witnessing a grand geopolitical chess match between many players, the main ones being US and China. The prize is control of the world economy. The way to achieve it is by controlling the world's oil supply.

The Chinese Century?
"The Chinese are on an aggressive quest to increase their supply of oil all around the world; whether Iran, Sudan or Venezuela, you name it, they are after it." -James Lilley, ambassador to China under President George H.W. Bush.

Frightening, but true.

China is the world's second-biggest oil consumer on the planet.

Currently the United States exceeds China's demand. But for how much longer?

China Going After the World's Oil!
"Russia pledged to increase its total oil deliveries to China by rail to 11 million tons this year, from 6 million tons in 2004. At the summit meeting in Moscow, state oil firm Rosneft signed cooperation deals with the Chinese oil firm Chinese National Petroleum Corporation and Asia's biggest refiner, Sinopec. Rosneft alone plans to increase annual deliveries to China to 9 million tons in 2006, from 4 million tons in 2005."
-Asia Times, July 6, 2005  
According to the US Energy Department, America devours 20 million bpd while China consumes a 7 million bpd.

Anne Korin, director of policy and strategic planning for the Institute for the Analysis of Global Security recently said:

The U.S. Energy Information Administration estimates that China's daily oil demand will increase to 8 million barrels of oil by the end of 2006.

"China's energy needs are going to be enormous in the future," according to Christopher Hill, the State Department's assistant secretary for East Asia and the Pacific.

China could top America's astounding 20 million bpd in 2030.

The Institute for Analysis of Global Security predicts that in only 20 years China will import as much oil as the US.

But I think it might be sooner than most think.

China's official state policy is the "growth imperative." To grow its economy at all costs, and especially before the 2008 Summer Olympics, which it will host in Beijing.

To do so, China has to guzzle crude oil to nourish its breakneck economy.

China is striking deals with oil exporting nations around the world to secure its supply that could leave other nations high and dry.

The US would be the most affected.

State-run Chinese companies have spent billions on oil assets overseas to boost supplies for the country. Chinese firms are currently striking long-term deals in Canada to tap North America's biggest oil reserves. "Demand for oil in China is growing at a blistering rate, about 30% to 40% a year. To meet that demand,there's going to have to be four to five Saudi Arabias out there. If not, there's going to be a huge crunch."  


Sen. Lisa Murkowski of Alaska, chairperson of the East Asian and Pacific Affairs subcommittee, said the United States faces growing competition from China in Canada. "China has brought the competition for natural resources to our backyard."

Until now, Canada sent almost all its exports to the US.

Canadian and Chinese firms are now cooperating to build a $2 billion pipeline to ship crude oil from Canada's vast oil sands in Alberta to the West Coast to be sent by tanker to China.

Again, this is huge.

See, you have 2 massive economies going after the same resource.

It's the simple law of supply and demand. The price of that resource (oil) is going up!  

And that's why there's a current gold rush by dozens of energy companies to get a stake in the region. Because they know for years to come, Canada might be the only profitable oil play of the 21st Century.

And that's why I'm so bullish on my tiny $3.00 oil sands stock.

My tiny oil sands company was able to purchase the entire property for just $125 million. All of it. all 46,000 acres of it. all 3 billion barrels in the ground.

Based on the purchase price of $125 million on 2.4 billion barrels of recoverable oil, the company is getting 19.2 barrels of oil for every dollar spent in the purchase price.

Pretty cheap, eh?

You bet.

But look, there's more to this story. It'll cost the company more than just $125 million to get the oil out of the ground.

NEWS FLASH:
PetroChina to import Canadian crude in 2009
"PetroChina executed a memorandum of understanding in Beijing with EnBridge, the 2nd largest pipeline operator in Canada. Both sides will work together on a project of building a new pipeline and transporting crude oil to inland China. Enbridge plans to build Gateway, an oil pipeline with a 30-inch diameter and 1,160 kilometers long. It will transport crude oil produced from Alberta's Calgary Oil Sand to docks on the west coast, and then the crude ill be carried by oil tankers to China."  
Consider $125 million as the cost for "the right" to extract the oil.

Converting bitumen (crude trapped in the sand) into oil is capital intensive. It costs a lot of money.

And that's why the company was able to get the oil sand property so dirt cheap, because it'll cost roughly 10X that just to get the oil flowing into the pipeline.

You see, the property is undeveloped. It'll take between 4 to five years to get the oil pumping. Once it does though, it's expected to produce 190,000 barrels every single day for 40 years straight.

Think about that for a minute.

Every single hour of every single day, $435,416 worth of crude will be pumped out of this property. By the end of the day, $10.4 million worth of crude will be pumped. By the end of the week, $73 million.

Heck, by the end of the month, the pipeline will have carried $292 million worth of oil out of this property.

And that's using a $60 a barrel price!

And this is where the story gets even better, because this isn't an "exploration" play. The asset is in the ground. Proven. Ready to be extracted.

All that is need is capital to build the infrastructure to get the oil out.

The New York Times writes:
"China's thirst for oil has brought it to the doorstep of the United States.

Chinese energy companies are on the verge of striking ambitious deals in Canada in efforts to win access to some of the most prized oil reserves in North America."  
And the company has that now too.

On June 27th, 2005, this company finalized a deal with one of the largest oil companies in Canada. A $13-billion Canadian oil giant that produces 451,000 barrels of oil a day. They'll supply $1 billion in cash to get the project started.

In return, they get 60% of the property.

So it's a win-win deal.

But it's an even better deal for early investors, one that could make you quite a bit of money.

That's why I've just finished a new report called The New Oil Sands GIANT that details this tiny $3.00 oil sands stock. And I want you to have it. for FREE!


How to Access your FREE Report Right Now
That's right, the report is yours FREE, when

[cumulina]

What a pity I can't trade canadian stock!

I read the whole letter you posted, and as I hold SU, it sounded like music to my ears though 

SU is moving up nicely, and I rely heavily on it.

Thanks for posting.

[ehos]

I've considered UTS many times before (I'm Canadian and live in Alberta!)

But the things that kept me away was..

1) 400+ Million float (jeeps)
2) 17 emplyees
3) MONSTER burn rate on the cash
4) Oil sand (bitumen) to oil extraction cost is very very high and getting higher.
5) They don't have a real plant buit yet.  It will take 3-5 years before they're pumping anything.
6) Having lived in Ft. Mac I can say there is a HUGE shortage of workers needed to build this plant.  UE 1 and UE 2 have major cost overruns (in the billions), and I forsee the same for UTS.

It's up big, ONLY on speculation right now.  I know they will go up huge and keep going up, but it's hard for me to justify a buy after a 300% ytd increase on mere oil price speculation.  If they were pumping right now, easy buy.  They are showing some revenue, but I think that's from capital re-investment.  It's a good thing that PetroCan is online with funding otherwise this would be one scary investment.

Also, PetroCan will own 60% of the profits that UTS makes when they do start pumping.  The safer play was to buy PetroCan (at 70'ish) it was had moved the least of the big 4-5 Canadian oil companies.

Just my take, trying to present the other side fo the situation.  SU is a VERY nice company to have stock in, so is PetroCan, Encana (heck, anything Canadian + oil) as the TSX is just TEARING it up

[stocky]

ehos applaud for brilliant insight. They should have clapping smiley

[snowcat]

Great analysis - I guess what makes the stock move is uninformed Americans drawn in by the hype.  "More oil than Saudi Arabia" - but there is oil there, they say, and with the price so high, I am sure exploration will escalate.

Other Canadian pix by Schaeffer are: BOB.v, ARS.v and SME.v - he also likes TREN.ob and SYNM.

Canadian stox that have pink sheet counterparts can be bought on Ameritrade - they will give you the Canadian shares - but the price difference is always confusing.

For instance, UTS.to can be bt as UEYCF.pk  The prices do not match due to the exchange rate which I am sure Ameritrade is scalping me on.

[ehos]

Technically there is more oil in Alberta than the WHOLE world put together.  (Seriously).

The problem is, it's in sand (bitumen), and to extract all that oil would be impossible.  The plants up there use more water than a small city right now to extract it.  If you want to see the busiest city in Canada, go see Ft. McMurrary.

The rent prices are almost double from the capital city (Edmonton), minimum wages are also double, and money flows like gold up there   House prices are insane.

There should be stocks for cities

[snowcat]

Ehos,
I have the impression that Saudi Arabia has a lot of sand too!

Is it frozen sand?

Are there wells up there or is everything a work in progress?

Ok. it may be a few weeks b4 we see $19 like Schaeffer predicts, however, with all that oil right next door in Canada, America's Attic,  I think the story of a new oil source can stimulate the stock price - just like the market occassionally falls in love with fuel cells (PLUG), photo voltaic cells (SPIR, DSTI), gas to liquid (RTK, SYNM, SSL) and other answers to $2.50/gal gasoline prices.

With winter approaching, I am sure the high heating oil prices will get the media in an uproar and bring up all the ideas of non-convential alternatives.

This is not MOT - no place for the kids college $, but a speculation built on a good story.

This won't replace ECA on Cramer's pump list yet.

[ehos]

SA has tons of sand, but the oil is in liquid form when you get deep enough.  It's basically, put in a line and it comes up (some wells you don't even need to pump in water!).

Bitumen is like tar.  It needs to be treated (big $$$) to get the 'oil' out of it.  The plants are huge, and the cost overruns are horrendous.  (SU is making a ton of cash, but you should see the money they've put into the plants).

UTS doesn't have a plant right now, it will be many years before they do.  Even then there is problems with worker shortage.  Literally, there is not enough welders, pipefitters, engineers to do the work.  If someone wants to make a TON of cash, move to Ft. Mac if you can do these things!

Can't say anything about stock prices because I have NO idea where this oil thing is going (UP for sure!)

[cumulina]

Thanks for your info, ehos.

Would it not be a thought that since US needs oil+Canada has it+oilprices are going up=Canadian oilsands are VERY interesting?

And isn't China also curting Canada for a "bite of the cake"?

Right now I'm more comfortable with holding shares in a well established compagny than pouring money into something that hasn't even started yet.

It also seems to me, that SU is very environmentally aware?

Cheers.

[snowcat]

So, my thinking is let Schaeffer do all the work (and I enjoy his free wealth daily newsletter)
pump this baby up and I'll go along for the ride.....He put his recomendation out when the stock was at 3c, dropped to 2.84c and now is $3.55c (I think that is about 6 cents US).

ARS.v, SME.v and TREN.ob all did great with his encouragement (ARS was originally picked at .18) .  He also liked BMD (they mine lime for the oil industry in the Ft. Mac area).

I am hoping that I can get a few bucks with this experiment.  I think it has more potential than some of the sub-penny stocks with no story mentioned on the boards.

[snowcat]

01/25/06
The # 1 Rule for Successful Investing...Don't believe anything you read on the Net

CHECK THIS OUT:

One thing I failed to mention was that the Canadian Oil Sands was featured on 60 Minutes last Sunday.  Nothing new, but it did enlighten some 10 million viewers on the oil potential of Canada.  Read the transcript, it is very interesting:

http://www.cbsnews.com/stories/2006/01/20/60minutes/main1225184.shtml


That is what got me excited about CWPC.ob.  It shot up the last two days, and fell down today on high volume.  But we will watch this because I really think there is potential here and on UTS.to.
http://finance.yahoo.com/q?s=uts.to

[ehos]

A 'few weeks' have passed.  Is UTS at $19?

[snowcat]

Not $19 yet, but $5.70 - a pretty nifty return from July when it was $3.

If there is enough money in it, they will figure a way to get the oil out of the "tar" mix.

Thirty years ago, if I said everyone will have a computer in their house that could access any information in the world, you would think I was crazy.  These "oil sands" are the sort of challenge that is going to make many people rich.

[setravis]

Yesterday's closing chart.......