Buffett's $44 billion bet!

Myers Energy & Gold Report - September 2010   Here's the Short Version of Why: Warren Buffett just invested $44 billion to own Burlington Northern Santa Fe railroad. Half that railroad's business is shipping Montana coal, so Buffett is betting coal will continue as America's #1 source of electric power for decades to come. To be profitable, Buffett has to keep his coal cars filled and moving. Where's he going to get all that coal? This near-production, junior coal company, American Power Corp (TGMP.OB) just closed on coal leases for 29,000 acres that straddle Warren Buffett's railroad. In all, TGMP's leases hold an estimated $35.04 billion worth of low-sulfur coal! If Buffett buys all that coal for 5-cents on the dollar, as I think he might, this under $1.50 stock (TGMP) will explode to $20! Fellow Investor: Hype. . .or fact? When it comes to investing in the world of mining and energy I've got the kind of first-hand, mine-shaft experience that separates my recommendations from those of Wall Street. My name is John Myers, and I grew up in the world of mining and energy investing - it's in my blood. My father was the famous C.V. Myers, one of the original "gold bugs" and an expert in natural resources. I was buying mining stocks at an age when most kids are still collecting baseball cards. Over the years, I've helped subscribers to my newsletter services, John Myers' Resource Trader Alert, Outstanding Investments, Myers' Finance & Energy and Myers' Secret Stocks, stash away profits like these: DRDGOLD Metallica Resources Coeur d' Alene Mines Glamis/Franciso Gold Wheaton River Minerals Intrepid Minerals PetroChina Southern Copper Corp +937% in 25 months +668% in 11 months +344% in 26 months +332% in 18 months +162% in 17 months +162% in 17 months +142% in 22 months +90% in 7 months I tell you this not to inflate my ego, but to give you confidence that I know what I'm doing. I'm not suggesting you should put your entire nest egg in American Power Corp. (TGMP.OB) but I do think that if you act before Warren Buffett makes his move, this under $1.50 stock could easily fetch $20 a share in a takeover! That works out to a gain of 1,233%! It means, if I'm right, $10,000 invested in TGMP now, while you can still get it for under $1.50, would explode in value to $133,000! The SEC-filed facts are that American Power Corp now owns the leases to two Montana coalfields: Its 29,000 acre Judith Basin lease has been independently verified (certified geological reports based upon core hole drilling conducted by Mobil Oil; as well as five additional independent reports) to contain an estimated 288 million tons of high volatile Bituminous B coal   The company's second, 15,000 acre lease represents a minimum of 150 million tons of additional coal in-place.     With the average price of around $80/ton, the scope of the two Coal Projects are potentially around $34.05 billion! I've done the math for you. That $34 billion works out to about $400 worth of in-the-ground energy for each share of American Power Corp stock (TGMP.OB) Warren Buffett needs this good Montana coal to keep his railroad profitable. How much would he be willing to pay for that 438 million tons to guarantee his coal cars would be full for a good long time? Well, I don't have any inside information, but I'm thinking Mr. Buffett would be getting one heck of a bargain if he could buy in-the-ground coal at a discount of 95% off its market price! Sound reasonable? I mean do you think Buffett will balk at paying 5-cents for a each dollar's worth of coal? Well, I think not! And what that means is, at 5-cents for each dollar's worth of coal, TGMP stock would go for $20 a share. At that price, Buffett would be getting $400 worth of in-the-ground coal for each share of stock! And that means $10,000 invested now would explode in value to $133,000.00! How likely is all of that to happen? Am I nuts? And if I'm right, how come TGMP is still trading at less than $1.50 a share? Here's a hint: Wall Street hasn't yet grasped the fact that American Power's coal can be economically and quickly surfaced mined, that it already has Environmental approval, and that it can be up and productive in a matter of months! Unlike typical energy start-ups that can take years to reach production (if ever) it looks to me as if American Power Corp's easily-mined, near-surface resources could be producing as much as 92,000 tons of coal per month within the first two years of business. That would total $4.2 million a month in revenue! That could mean $50.4 million a year revenue or earnings of $0.59 per share, unheard of for a virtually new start-up! Heck, at a conservative ten times earnings, that puts this under $1.50 stock at $5.90 a share. The stock of Peabody Energy, (NYSE:BTU) the world's biggest coal company, trades at 21 times earnings! At that PE, TGMP stock could hit $11.80 within its first two years of operations. And that's without a Buffett take-over! For the complete story on American Power, why coal will continue as America's primary source of electric power for many decades to come, and why – even if Warren Buffett doesn't buy it out – this under $1.50 stock (TGMP.OB) is headed for $20 a share. . .   DISCLAIMER: In order to be in full compliance with the U.S. Securities Act of 1933, Section 17(b), you are hereby advised that John Myers is receiving a fee of $25,000 in USD, from Midway Media Group Inc. as compensation for the production of this advertisement. John Myers has not independently confirmed the accuracy, correctness, or truthfulness of the statements and opinions that the advertiser has expressed above. Midway Media Group Inc. paid two hundred fifty thousand dollars to marketing vendors to pay for all the costs of creating and distributing this report online. The purpose of this advertisement, like any advertising, is to provide coverage and publicity for the advertising company, its products or services. 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