Submitted by Marin Katusa – Casey Research
What is Casey’s Club?
Let me first share the evolution of Casey Research and why I think if you’re a serious speculator, you need to be part of Casey’s Club.
A little over a decade ago, I was a Casey subscriber. At the time, there was only the International Speculator, and the firm was made up of only Doug Casey and David Galland.
But as I got to know the power players in the industry, I learned that the savvy speculators made their millions investing via private placements (PPs) and clip and collect warrants.
Out of the gates, investors in PPs have an advantage over investors who buy in the open market. First off, you pay no buying commission to your broker when you buy via a private placement. More important, by buying into a PP, the investor gets exposure to warrants.
A warrant is essentially the right to buy a stock for a predetermined period of time at a fixed cost.
In the Casey Energy Confidential, we recommend both buying in the open market and private placements.
In an energy market where investors are getting slaughtered, we made money in 2014. How? Warrants. And we don’t even include the warrants in our portfolio performance until the warrant position is sold and gains are realized.
In 2014, I sent out 59 alerts to Casey Energy Confidential subscribers.
Let’s use an example of a stock we made great money on in 2014.
On October 29, 2013, I sent out an alert for subscribers to buy Blackbird Energy (BBI.V) in the open market under C$0.06 or in the private placement.
The PP units were priced at C$0.09 with a full, five-year transferable warrant priced at C$0.15.