I’ve been seeing a relatively new ad from Keith Kohl of Angel Publishing pitched lately that’s focused on his “fab four” energy-related stock picks.
According to Kohl, these four companies are his “top picks for double-digit dividends and triple-digit net gains in today’s bear market.”
The only way to find out what his four picks are, however, is to join his Energy Investor service for $99. But he did share some (pretty vague) clues about them, and while I wasn’t able to uncover all four companies, I think I know what ONE of them might be.
So with that said, let’s dig in…
Unpacking Kohl’s “Fab Four” Pitch
It’s unclear exactly when this presentation was released because Angel Publishing never seems to date stamp their pitches, but based on what Kohl talked about, it seems fairly recent. And it’s focused on his energy, particularly oil and gas, thesis.
Kohl started out with a rather somber message about how he believes there will be a “lot of pain ahead of us” in the market and how “buying the dip” is a bad idea.
“… as ugly as things are right now, this bear market is just getting started.
“We’ve got a lot of pain ahead of us.”
“Some people — and I’m here today to STOP YOU from joining them — are about to make some very, very dumb decisions.
“Well, when faced with a crisis — any crisis — most people double down on what they know.
“And what ‘everybody knows that everybody knows’ right now, based on recent history, is that you need to buy the dip.
“Please don’t do it.”Source: https://secure2.angelpub.com/o/web/452131
As for why, Kohl talked about how cheap credit, loose fiscal policies, and low-interest rates (all of which helped propel tech stocks higher) are “done.” And he believes that, while tech stocks may have been a good idea over the past decade, now the trend has reversed.
“The cheap credit, loose fiscal policies, and low interest rates that made the tech-led bull run of 2008–2021 possible are DONE.”
“For the last decade — heck, right up until the beginning of this year — if you wanted to grow your nest egg and potential retirement income, you needed to put your money in tech stocks.
“Now? That trend is NOT your friend.”
Long story short, Kohl appears to be very bullish on the energy sector right now.
In particular, oil and gas-related companies.
Kohl shared numerous reasons why he’s bullish on this industry in the presentation, but when you boil it all down, his thesis revolves around a structural supply shortage.
Here’s how Keith Kohl explains his overall thesis:
“Energy producers are trying to keep up.
“You’ve got plants coming back online, pumps going 24/7, and old projects that had been shuttered being revived.
“But it’s not enough… and it won’t be enough for years.”
“Demand everywhere is outpacing supply — and that means people will pay whatever it takes to get what they want.
“So we have international bidding wars going on for liquid natural gas, kilowatt-hours, and crude oil. Manufacturers, consumer goods companies, and governments are willing to pay whatever it takes to get whatever they can.”
Not only does Kohl (more or less) suggest that oil and gas prices could be headed higher, but he made the point that there’s “plenty of cash” for energy companies to fund their operations and share with shareholders (in the form of dividends).
“And as energy companies around the globe take those highest-bidder contracts all the way to the bank, there’s plenty of cash to fund operations AND share with stockholders.”
This is something numerous stock teasers I’ve come across have discussed lately, too; how some oil and gas companies are throwing off large dividends in this environment.
For example, one presentation by Stansberry’s Brett Eversole and (in particular) one by Whitney Tilson not only talked about how some oil and gas companies have “plenty of cash” (as Kohl put it) but went into more detail as to why they’re increasing dividends.
In short, the above two presentations talk about how, despite increased oil and gas prices, companies in this space are not as incentivized to increase production as they could be (for a variety of reasons). And they point out how this, in turn, is making the supply situation worse, adding more potential upward pressure on prices.
Furthermore, instead of oil and gas companies investing the bulk of their increased profits back into exploration and drilling (as you’d expect in an environment of higher prices), the above presentations argue that some of them are instead ramping up dividend distributions and share buybacks.
Here’s how Eversole put it (in a nutshell):
“It’s a one two punch. Slow supply to drive prices higher. Then skip reinvestment so that record sales turn into record profits for investors.”– Brett Eversole
Now here’s what Tilson said:
“Instead of financing drilling anywhere and everywhere, oil companies are limiting their investments to only their most profitable projects, and instead allocating excess cash to boosting their dividends and buying back shares.”– Whitney Tilson
Anyways, I won’t go any further on that since this write-up isn’t about Eversole or Tilson. But I did find their takes super interesting and relevant to what Kohl talked about in this pitch, so I thought that was worth highlighting.
So with that said, what did Keith Kohl say about his “fab four” picks?
Not much, really.
But he did share some clues that led me to figure out what at least one of them might be. So in the next section, I’ll break down the clues he dropped and share my guess.
Keith Kohl’s “Fab Four” Stock Picks
Here’s a breakdown of what Keith Kohl said about his four picks:
“Meet the ‘Fab Four’ of the energy world… my top picks for double-digit dividends and triple-digit net gains in today’s bear market.”
“No. 1 in the Fab Four: The Caribbean Cash Flow King
“When I say this firm is the cash flow king, I’m talking about YOUR cash flow. Thanks to its unique status as a low-drama Caribbean oil producer, this company has directly benefited from Russian oil going offline. Even better? This is a firm that likes to put money in your pocket. It offers some of the highest dividend yields you’ll find anywhere — up to 37.79%! Plus, as high as the payouts have been in the past, I believe they’re poised to get even higher.
“No. 2 in the Fab Four: The Floating Pipeline Player
“Offshore oil always needs somewhere to go and some way to get there. This unusual niche player specializes in charter ships and other transport systems that create the equivalent of a sea-to-shore pipeline for its drilling partners. Plus, with Russian competitors sidelined, it’s getting flooded with cash and project offers. The company’s already healthy double-digit dividend — currently 12.46% — is an inflation-beating winner that could easily skyrocket even higher.
“No. 3 in the Fab Four: The All-American Storage Play
“Energy storage is sexy — you heard it here first. As American oil fields and refineries work overtime to try to refill the nation’s depleted gas reserves, effective storage will become an even hotter commodity. Domestically, this company is the leader of the pack. But what you should care about is that this company just raised its raised profit guidance for the year ahead — and signaled that it will be earmarking a total of $1.09 billion in 2022 in “extra” cash to distribute to shareholders as a result. Windfall, anyone?
“No. 4 in the Fab Four: Your Southwest Sweetheart Deal
“It’s not just Texas that’s loaded with natural resources. This company recently completed a major acquisition in New Mexico that will boost its earnings per share by 27.7%. A one-off move? Nope! This firm has used acquisitions and smart investments to raise dividends for 37 straight quarters. No wonder the biggest shareholders of this under-the-radar company are income funds!”
I came up with several potential ideas based on those clues, but the only hints tangible enough to lead to a match were the ones he shared about the fourth company.
Kohl’s so-called “Southwest Sweetheart Deal” pick.
In short, the clue he shared about this company raising its dividends “for 37 straight quarters” led me to a July 2022 article on Motley Fool discussing Delek Logistics Partners LP (DKL), which is a master limited partnership (MLP) in the oil and gas space formed by Delek US Holdings.
And according to the above article, Delek Logistics Partners has increased its distribution to investors “every single quarter” since it was formed in late 2012, which the article says pushed its streak to “37 straight quarters” of raising dividends.
What’s more, this company recently acquired 3Bear Delaware Holding – NM, LLC, and the deal included part of the company’s New Mexico-based operations.
I’m not sure how much that acquisition increased Delek Logistics Partners’ earnings per share, so that part of Kohl’s clue is unclear. Not to mention, the above two clues aren’t enough for me to be 100% confident about this one.
However, based on the clues we just looked at that do appear to match, I think that this could potentially be Keith Kohl’s fourth “Fab Four” pick.
I know, I know… one out of four.
But I have looked into other Keith Kohl pitches involving oil companies. So if you want a glimpse into other companies he has teased, check that post out.
Either way, Kohl reveals all of his fab four recommendations in a report called “The Fab Four of the Energy Sector: Gains and Income for Today’s Bear Market.”
So that’s the report to see if you want all the details.
The only catch is that you’d need to fork out $99 to join his service.
And the gist of the service is that, by signing up, you get access to the above report, other reports Kohl has created, and his ongoing energy-related stock picks.
I’m not a member of that service myself, but if I ever do decide to check it out, I will review it and update this post with a link to my review.
Recommended: Go here to see my #1 rated stock advisory of 2023
There’s a lot of speculation in the stock-picking space about whether or not the price of oil will go up soon and, if so, how much. Some in the space are predicting massive oil price increases, while others are still focused on pitching tech stocks!
If there’s one thing I’ve learned by looking into these pitches, it’s that everyone has a different opinion, and no matter compelling they might seem – nobody knows for sure exactly how things will play out.
So, while Mr. Kohl could be right, I wouldn’t expect that any trend is a “sure thing” or that anyone’s stock picks will make you rich, whatever they might be.
And with that said, thanks for stopping by.
I hope you found this post helpful in some way, and wish you the best!