Goooooood day to you everybody!  Hope you're all enjoying your labor day weekend.  Be good, and avoid doing ANY labor on labor day.  You know what, this is hard for someone like me who has a big ego and considers himself to be smart to admit...but I don't even know the meaning of Labor Day.  I mean...what is it?

 

Anyway...

As promised, I was quite a diligent little penny detective this weekend.  Getting the info, getting it ready for the group, for the TEAM!!!    Besides driving my new car around like Speed Racer after a few too many frapuccinos, its been work...work....WORK!

 

I feel compelled to give the group, the team, the folks...a little bit of personal advice.  A little wisdom from the tree.  For a few years I've dreamed of having one particular car.  I won't be tacky enough to tell you what it is, but it's very nice.  The penny profits finally allowed me to buy my dream car.  I personally think, if you follow my newsletter and you are making a lot of money, you should treat yourself.  If you have a dream car or some kind of dream item or vacation or whatever you want...and the penny money is pouring in and you can afford it, go for it!!  That's only IF you can really afford it.  Don't do anything stupid and take financial advice from a bonehead like me.  However...buying the dream car has been absolutely fantastic, it actually has been BETTER than I thought it would be. 

 

I worried about buyer's remorse...but not a trace.  So go for it!

 

Haha okayyy, really going off on a tangent there.  How embarrassing.  As Pauly D would say, it's time to get to da biznesssss....

What's "The Situation" with the new alert?

 

Without further adieu, my newest alert is TGMP - American Power Corporation.  That's a good name, AMERICAN POWER CORPORATION.  Patriotic, powerful...I like it.  Don't worry, I'm not sending out the alert just because I like the name of the company.

 

Here's the cut and paste about what they do:

 

American Power Corp. is a publicly traded, dynamic energy company based in Denver, Colorado. The Company was established with the focus of acquiring near-term, large-scale coal projects in close proximity to national transportation links. American Power envisions developing its large coal resources to support electricity generation.

American Power is a member of the Montana Mining Association, and holds approximately 29,000 acres in Judith Basin County, Montana. The estimated resources in place, based on exploration work conducted by Mobil Oil Co. (now ExxonMobil Corp.), and in several independent studies, range from 172 million up to 410+ million tons of high volatile bituminous B coal.

Based on 2008 production numbers, 3 of the top 25 producing mines anywhere in the US are located in Montana, where TGMP's PACE project is located.

 

The info I've found from my research on TGMP is pretty compelling.  They're sitting on resources that could make the value of their shares skyrocket.

 

 The numbers above may not mean much until they're broken down.  What the numbers say is TGMP has a potential value of  over $25 BILLION!  That's with average prices for bituminous coal 12,500 BTU being roughly $65 per ton.

Coal is also very very hot, no pun intended.

 

You guys probably don't know this stuff.  I know I didn't until I did some research this weekend.  Since 1970, the use of coal to generate electricity in the US has nearly tripled in response to growing demand for electricity.  Coal accounts for almost half the electricity used in the US.  Coal costs more than any other major fossil fuel source.  Using coal to generate electricity is LESS THAN ONE THIRD the cost of other fuels!

 

Now thanks to $90 billion invested in new technologies, the environmental damage caused by coal based electricity has been significantly reduced.  Fun fact, American born babies will need on average 542, 968 pounds of coal in their lifetime.  Okay, maybe it wasn't that fun...but it was a fact!

 

TGMP has a very big coal project going on called the PACE Coal Project.  It's a large scale exploration project with the goal of producing and transporting large quantities of coal.  It's based in Montana, thought by most to be one of the best coal states in the US.

 

Get this...America's largest railway network, the Burlington Northern Santa Fe railway line runs DIRECTLY though TGMP's land!  That means TGMP can readily supply coal to both national and international customers.  I believe this gives them a humongous advantage over their competitors.

 

Overall they seem to be positioned to become a very significant domestic energy provider.

 

Here is why I like TGMP immediately...

 

TGMP has been consistently making gains for the past few weeks.  They've just recently gone from 97 cents to a high of $1.25 on Friday very quickly and steadily.  Usually if prices rise quickly, it's not steadily...so when we see both of these qualities shown at once it's a powerful sign that it's a good company to trade.

 

Since TGMP dipped back down to $1.16, I think this could be a really good chance to pick up shares at a good price.  TGMP will probably gap up tomorrow morning, but it will probably gap up whenever I send out an alert...so a gap up from $1.16 is better than a gap up from a higher price.

 

TGMP has only been trading for a few weeks so it doesn't have much history, which is fantastic for companies that trade in the $1 range.  Sometimes if something priced around $1 keeps hitting resistance at $1.50 or $2 or so, it tends to really struggle to break above that range.  Since TGMP has only been trading for a few weeks and doesn't really have any kind of established resistance like that, there is no ceiling for us to break through at all.  TGMP is free to keep rising and rising.

 

I think it's likely to continue making higher highs and this is a great opportunity to play the momentum while avoiding buying immediately after a big gain.  TGMP closed down over 4% on Friday so this seems like good timing.

 

Even Mr. Jimbo Cramer says the best thing to buy is a company that's making a big move up, when it takes a little dip down.  At least, that's what he used to say at our old knitting class and our Alcoholic's Anonymous meetings on Tuesday nights.  Just joking, please don't sue me Cramer :-(

 

 

Not only that, but TGMP is just beginning their investor awareness.  I've seen TGMP covered in some small newsletters, but very few investors know about them.  I saw more newsletters cover TGMP yesterday as well, so between that and my coverage, we may see some fast paced trading action on TGMP tomorrow which could be very profitable for day traders.

 

I think this upward trend for TGMP may continue, and as more and more investors find out about the relatively undiscovered TGMP, I think we are likely to see TGMP's chart and share prices continuing to move up and up higher and higher.

 

Given the potential value of TGMP, it's hard to say how high it could go.  I'd say at least 3-4x the current price, IF things go very well for us.  I don't like to set goals that high though (and that gain is purely a guess), since it's always safer to cash in a smaller gain than to hold on for something too big.  The point is, there is a lot of upside on TGMP.

 

Now of course we should protect the downside in case the trade goes against us for any reason, but with TGMP's steady movement and high share price, it should be pretty easy for even beginners to trade this one. 
I think it's very easy to see where to put the stop loss.  I'll send out a trading strategy tomorrow pre-market, but sneak peek...I think about $1.09 or so is a good place to put the stop.

 

 

I think we could be in for a winner with TGMP so research it and be ready to move.  I'll send out some more details pre-market tomorrow. 

 

Happy Labor Day,

 

The Trader

 

 

Don't invest based on what I say, do your own research and consult with a licensed professional before investing, only invest what you are prepared to lose.