News Analysis date published New: 
Tuesday, March 6, 2012 - 11:30
New Date created: 
Tuesday, March 6, 2012 - 11:38
New Date last updated: 
Tuesday, March 6, 2012 - 11:30

My Most Shocking Investment Prediction for the Next 12 Months

Tuesday, March 6, 2012 - 11:30am

When you're looking for explosive gains in stocks, getting in on the ground floor is everything...

That's why, as the chief investment strategist behind Game Changing Stocks, it's my job to predict "the next big thing" BEFORE it happens.

Over the years, my research team and I have made a number of such predictions. Though they haven't all played out the way I expected, many of them proved to be quite accurate.

For instance, in 2009 we predicted there would be a big move in nanotechnology. In the months that followed, our nanotech pick shot up 293%.

Then in 2010, we predicted the "best sci-fi speculation of the year" would be a powerful technology called RFID... and that three stocks could skyrocket because of it. Our picks were up 42%... 89%... and 310% a year after we forecast our projections.

And the list goes on...

So today, I want to share another one of my predictions with you -- a prediction so shocking that you might be a bit skeptical at first. But don't worry. What I'm about to tell you is very real, and very likely possibility for the coming year.

What is it? Brace yourself. I'm predicting that in the next 12 months, chickens will become a major source of jet fuel.

I know it sounds crazy, but hear me out... This is a very real process and early investors stand the chance to make some serious gains.

Here's the story...

Five years ago, Tyson Foods (NYSE: TSN) was throwing away one-third of 2.2 billion chickens every year. So it did something remarkable for a food company.

It created a renewable energy division.

On June 22, 2007, a small biofuel company called Syntroleum (Nasdaq: SYNM) and Tyson formed a joint venture called Dynamic Fuels. Its aim was to build refineries around the country -- just as Tyson has various production facilities located around the country -- that use Syntroleum's "Bio-Synfining" technology. The first refinery began commercial operations in November 2010.

The technology is complex, but the gist is that this little company takes the triglycerides in fat and oil, adds heat, hydrogen and some proprietary catalytic agents and -- voila -- gets diesel or jet fuel.

This could be big, simply because of the scale of Tyson's business. It is the largest meat processor in the world and can process 46 million chickens per week.

That gives its little partner a nearly infinite source of raw materials. Overall, 3.4 billion pounds of inedible tallow and 1.4 billion pounds of poultry fat were produced in the United States in 2009, according to the Census Bureau.

Clearly there are a lot of other fats available, from pork, fish oil, and so forth. In addition, 2.8 billion pounds of grease were produced during the same period. Syntroleum can put all of this to use.

Its diesel meets and, indeed, exceeds, industry standards. The fuel has higher energy levels, while at the same time producing almost no sulfur. During idle speed in an aircraft, its jet fuel produces 90% less soot than traditional fuel, and 74% less while cruising. And while its footprint is cleaner, its energy profile is richer: This stuff gives more bang for the buck than conventional diesel or jet fuel.

Unblended, this diesel can be used in existing infrastructure (pipelines and pumps) and, most important, in unmodified engines. This biodiesel is so good that it can be blended with petroleum-based diesel to improve its overall environmental profile and performance characteristics.

Right now the company is losing money and revenues have been lumpy -- as you would expect with any company delivering a new technology that has yet to take hold.

Action to Take --> But with the shares trading near their lows, it could be an attractive time to take a small position, which could soar if the company becomes consistently profitable.

[Note: Syntroleum's emergence as a player in the jet fuel industry is only one of the investing trends I'm predicting to catch on in the coming year. I've made 10 more predictions, each of which I feel offers investors a good chance to profit over the next 12 months. To see my full list of 11 predictions, follow this link here.]

Andy Obermueller does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC does not hold positions in any securities mentioned in this article.

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