Stocks Revealed: Porter Stansberry’s “Big AI Die Up” Teaser

Porter Stansberry is back with a new stock teaser.

This one is a warning against AI stocks and instead recommends energy stocks.

He's claiming "the big AI die-up is coming" and recommends reading his "Dirty Energy Fortress" special report to prepare.

Like always, Porter wants you to give him money to get his stock recommendations, but I have good news!

He left enough clues in the presentation to figure out the stocks.

I reveal them below and give you information on the stocks so you can determine if they're worth investing in or not.

Let's get started!

Breaking Down The Teaser

Before AI exploded earlier this year, the big focus of the market and stock pickers was natural gas.

The idea was that the Russian-Ukraine war would create a higher need for natural gas production in America.

This is the essence of the teaser from Porter.

He wants you to avoid the fool's gold that is AI and stick to something that's going to perform well for years, which is energy and natural gas (Porter does recommend a coal company as well).

There are many reasons why natural gas is expected to grow:

Natural gas is a fossil fuel that is composed of methane. It is the cleanest-burning fossil fuel, and it is a versatile resource that can be used for a variety of purposes, including:

• Electricity generation: Natural gas is the most common fuel used to generate electricity in the United States. It is a reliable and efficient fuel source, and it can be used to quickly ramp up and down electricity generation to meet changes in demand.
• Heating and cooling: Natural gas is also a popular fuel for heating and cooling homes and businesses. It is a clean and efficient way to heat and cool buildings, and it is often more affordable than other heating and cooling methods.
• Transportation: Natural gas can be used to produce compressed natural gas (CNG) and liquefied natural gas (LNG), which can be used to fuel vehicles. CNG and LNG are clean and efficient fuels that can help to reduce greenhouse gas emissions and improve air quality.
• Industrial processes: Natural gas is used in a variety of industrial processes, such as manufacturing fertilizers, plastics, and other products. It is also used to produce hydrogen, which is a clean fuel that can be used in a variety of applications.

Here are some of the specific benefits of natural gas:

• Cleaner burning: Natural gas is the cleanest-burning fossil fuel, producing about half the carbon dioxide emissions as coal when burned for electricity generation.
• Abundant: Natural gas is an abundant resource, with the United States having enough natural gas reserves to supply the country for hundreds of years.
• Versatile: Natural gas can be used for a variety of purposes, including electricity generation, heating and cooling, transportation, and industrial processes.
• Affordable: Natural gas is often more affordable than other energy sources, such as oil and coal.

Overall, natural gas is a clean, abundant, versatile, and affordable energy resource that can play an important role in the transition to a clean energy future.

Let's take a look at the stocks porter is teasing now.

Stock #1: Peabody Energy

Peabody Energy is a leading global pure-play coal company and a member of the Fortune 500, serving power and steel customers in more than 25 countries on six continents. The company was founded in 1883 and is headquartered in St. Louis, Missouri, United States.

Peabody Energy produces coal from surface and underground mines located in the United States, Australia, and Colombia. The company's coal is used to generate electricity and produce steel. Peabody Energy also provides a range of coal-related services, including transportation, logistics, and marketing.

Peabody Energy is a major player in the global coal industry. In 2022, the company produced over 200 million tons of coal. Peabody Energy's coal is used by some of the world's largest utilities and steelmakers.

Peabody Energy is committed to sustainable mining practices. The company has a number of initiatives in place to reduce its environmental impact, including investing in renewable energy and energy efficiency measures. Peabody Energy is also working to develop new technologies to reduce greenhouse gas emissions from coal-fired power plants.

Peabody Energy is a significant contributor to the global economy. The company employs over 10,000 people and generates billions of dollars in revenue each year. Peabody Energy also supports thousands of jobs in the coal supply chain.

Pros Of Investing In Peadbody:

There are a number of potential pros to investing in Peabody Energy:

• Strong financial performance: Peabody Energy has been performing well financially in recent years, with rising revenue and earnings. The company is also generating strong cash flow.
• Asset quality: Peabody Energy has a high-quality asset base, with low-cost mines and long-term contracts with customers.
• Favorable market conditions: Coal prices have been rising in recent months, due to strong demand from Asia and Europe. This is good news for Peabody Energy, as it will boost the company's profits.
• Dividend payments: Peabody Energy pays a dividend to its shareholders. This provides investors with a steady stream of income.

It is also important to note that Peabody Energy is a cyclical stock, meaning that its performance is closely tied to the economic cycle. When the economy is growing, coal demand tends to increase, which benefits Peabody Energy.

However, when the economy is slowing down, coal demand tends to decrease, which can hurt Peabody Energy's earnings.

Cons Of Investing In Peabody:

Peabody Energy has a history of financial problems. The company filed for bankruptcy in 2016, and it is still carrying a significant amount of debt. This debt could limit the company's ability to invest in its business and grow.

Here are some of the specific cons of investing in Peabody Energy:

• Financial risk: Peabody Energy has a significant amount of debt, which could limit its ability to invest in its business and grow. In addition, the company's earnings are volatile and can be affected by factors such as coal prices and economic conditions.
• Regulatory risk: Peabody Energy is subject to a variety of environmental regulations, which could increase its costs or limit its operations. For example, the company could be required to invest in new pollution control technologies or pay higher taxes on its emissions.
• Litigation risk: Peabody Energy faces a number of lawsuits related to its environmental impact. These lawsuits could result in significant damages and could also damage the company's reputation.

Investors should carefully consider these risks before investing in Peabody Energy.

Overall, Peabody Energy is a risky investment with a number of potential drawbacks. Investors should carefully consider their risk tolerance and investment goals before investing in this company.

Stock #2: Viper Energy

Viper Energy Partners LP (VNOM) is a publicly traded partnership that owns mineral and royalty interests in oil and natural gas properties in the Permian Basin in West Texas. Viper's assets are leased to working interest owners who bear the costs of operation and development.

Viper Energy is a subsidiary of Diamondback Energy (FANG), one of the largest oil producers in the Permian Basin. Viper benefits from Diamondback's expertise in developing and operating Permian assets, as well as its strong financial position.

Viper Energy's business model is to provide unitholders with an attractive return by focusing on business results, maximizing distributions, and pursuing accretive growth opportunities. Viper's distributions are variable and are dependent on the performance of its underlying assets.

Viper Energy is a good investment for investors who are looking for exposure to the Permian Basin oil and gas sector. The Permian Basin is one of the most productive oil and gas regions in the world, and Viper has a strong track record of generating cash flow and returning it to unitholders.

Pros Of Investing In Viper Energy: 

Here are some of the pros of investing in Viper Energy:

• Exposure to the Permian Basin: The Permian Basin is one of the most productive oil and gas regions in the world, and Viper Energy has significant exposure to this region. This gives Viper the potential to benefit from rising oil and gas prices.
• Experienced management team: Viper Energy's management team has a long track record of success in the oil and gas industry. This gives investors confidence that the company is well-positioned to execute its business plan.
• Attractive valuation: Viper Energy's stock is trading at a relatively attractive valuation, making it potentially a good value for investors.
• High dividend yield: Viper Energy pays a quarterly dividend to its shareholders. The company's dividend yield is currently around 7%, which is significantly higher than the average dividend yield of the S&P 500 index.

Cons Of Investing In Viper Energy: 

Here are some of the cons of investing in Viper Energy:

• Commodity price risk: Viper Energy's revenue and cash flow are directly tied to oil and gas prices. If oil and gas prices decline, Viper's revenue and cash flow will also decline.
• Leverage: Viper Energy uses leverage to finance its operations. This can amplify the company's earnings if oil and gas prices rise, but it can also amplify the company's losses if oil and gas prices decline.
• Environmental, social, and governance (ESG) risks: The oil and gas industry is under increasing scrutiny from ESG investors. Viper Energy is exposed to ESG risks, such as climate change and water pollution.
• Limited operating history: Viper Energy is a relatively new company, and it has a limited operating history. This makes it difficult to assess the company's long-term prospects.

Stock #3: Black Stone Minerals

Black Stone Minerals, L.P. (BSM) is a Houston, Texas-based oil and natural gas mineral and royalty company. It owns and operates mineral and royalty interests in over 40 states and 60 productive basins in the United States, with a focus on onshore oil and natural gas assets. Black Stone Minerals' mineral and royalty interests are primarily concentrated in the Permian Basin, Haynesville Shale, Eagle Ford Shale, and Marcellus Shale.

The company was founded in 1980 and went public in 2007. It is a master limited partnership (MLP), which means that it is a publicly traded partnership that passes through most of its income to its investors. Black Stone Minerals is one of the largest mineral and royalty companies in the United States.

Black Stone Minerals' business model is to acquire and manage mineral and royalty interests. The company generates revenue from royalties on oil and natural gas production from its properties. Black Stone Minerals also generates revenue from lease bonuses and other payments from oil and gas companies that lease its properties.

Black Stone Minerals is a leading provider of mineral and royalty interests to the oil and gas industry. The company's asset base is well-diversified across geographic regions and geologic formations. Black Stone Minerals is also well-positioned to benefit from the continued growth of the oil and gas industry in the United States.

Pros Of Investing In Black Stone Minerals

Here are some of the pros of investing in Black Stone Minerals:

• High dividend yield: Black Stone Minerals currently has a dividend yield of over 11%, which is significantly higher than the average dividend yield of the S&P 500.
• Strong track record of dividend growth: Black Stone Minerals has increased its dividend every year for the past 12 years.
• Large and diversified asset base: Black Stone Minerals owns mineral and royalty interests in over 40 states and 60 productive basins in the United States. This diversification helps to reduce the company's risk exposure to any one region or asset class.
• Experienced management team: Black Stone Minerals is led by a team of experienced executives with a deep understanding of the oil and gas industry.
• Strong financial position: Black Stone Minerals has a strong balance sheet with low debt levels and positive free cash flow.

Additionally, Black Stone Minerals is well-positioned to benefit from the continued growth of the oil and gas industry in the United States. The company's mineral and royalty interests are concentrated in some of the most productive oil and gas basins in the country.

Overall, Black Stone Minerals is a well-managed company with a strong track record of financial performance and dividend growth. The company is also well-positioned to benefit from the continued growth of the oil and gas industry in the United States.

Cons Of Investing In Black Stone Minerals

Here are some of the cons of investing in Black Stone Minerals:

• Commodity price risk: Black Stone Minerals' revenue is directly tied to the prices of oil and natural gas. If oil and gas prices decline, the company's revenue and earnings will also decline.
• Operating costs: Black Stone Minerals incurs operating costs, such as land lease payments, taxes, and insurance premiums. These costs can reduce the company's profitability.
• Environmental risks: The oil and gas industry is subject to a variety of environmental risks, such as oil spills and pipeline leaks. These risks could lead to regulatory fines and other liabilities for Black Stone Minerals.
• Competition: Black Stone Minerals competes with other mineral and royalty companies for the acquisition of new assets and the leasing of its properties to oil and gas companies. This competition could limit the company's growth opportunities.
• Master limited partnership structure: Black Stone Minerals is a master limited partnership (MLP), which means that it is a publicly traded partnership that passes through most of its income to its investors. This structure can result in complex tax reporting requirements for investors.

Additionally, some investors may be concerned about Black Stone Minerals' exposure to the oil and gas industry, which is a cyclical industry. The oil and gas industry is also subject to a variety of environmental risks.

Overall, Black Stone Minerals is a well-managed company with a strong track record of financial performance and dividend growth. However, investors should be aware of the risks associated with investing in the company, including commodity price risk, operating costs, environmental risks, competition, and the complex tax reporting requirements associated with the MLP structure.

Stock #4: Tellurian

Tellurian Inc. is a natural gas company that is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure. Its flagship project is the Driftwood LNG liquefaction and export facility in Louisiana, which is expected to have a capacity of 27.6 million metric tons per annum (mtpa) when completed. Tellurian is also developing the Driftwood Pipeline, which will transport natural gas from the Haynesville Shale basin to the Driftwood LNG facility.

Tellurian was founded in 2016 by Charif Souki and Martin Houston, two industry veterans with experience in LNG development and marketing. The company's management team also includes several other experienced executives from the oil and gas industry.

Tellurian is a publicly traded company with its stock listed on the NYSE American under the symbol "TELL". The company's headquarters is located in Houston, Texas.

Tellurian's projects are still in the development stage, and the company has not yet generated any revenue. However, the company has secured a number of long-term LNG supply contracts with customers in Europe and Asia. Tellurian is also seeking financing to complete its projects.

Tellurian's goal is to become a leading global LNG producer and exporter. The company believes that its low-cost natural gas resources and its experienced management team give it a competitive advantage.

Pros Of Investing In Tellurian

Here are some of the pros of investing in Tellurian:

• Potential for significant growth: Tellurian is a development-stage company with a number of large-scale projects in the pipeline. If the company is able to successfully execute on its projects, it could become a major player in the global LNG market.
• Strong management team: Tellurian's management team is led by Charif Souki and Martin Houston, two industry veterans with a proven track record.
• Low-cost natural gas resources: Tellurian has access to low-cost natural gas resources in the Haynesville Shale basin. This gives the company a competitive advantage over other LNG producers.
• Long-term LNG supply contracts: Tellurian has secured a number of long-term LNG supply contracts with customers in Europe and Asia. This provides the company with a steady stream of revenue.

Cons Of Investing In Tellurian

Here are some of the cons of investing in Tellurian:

• Development risk: Tellurian's projects are still in the development stage, and there is no guarantee that they will be completed on time or on budget. This means that there is a risk that the company will not be able to generate revenue as quickly as expected, or that its costs will be higher than anticipated.
• Financing risk: Tellurian needs to secure financing to complete its projects. If the company is unable to do so, it could delay or even cancel its projects. This could have a significant negative impact on the company's stock price.
• Commodity price risk: The price of LNG is a commodity that can fluctuate significantly. If LNG prices fall, Tellurian's profitability will be impacted. This is because the company's revenue is directly tied to the price of LNG.
• Management team concerns: Some investors have raised concerns about Tellurian's management team. Specifically, some investors have criticized the company's CEO, Charif Souki, for his past compensation and for his involvement in a controversial deal at his previous company.
• Corporate governance concerns: Tellurian has also been criticized for its corporate governance practices. Specifically, some investors have raised concerns about the company's board of directors and about the company's executive compensation practices.

Overall, Tellurian is a high-risk investment. The company has the potential to generate significant returns for investors, but there are also a number of risks to consider before investing

Wrapping Things Up

So that's the end of my post covering Porter Stansberry newest teaser.

So what do you think?

Are you going to avoid AI stocks and stick to natural energy?

Or are you not convinced AI is a bubble?

Let me know in the comments what you think!