Hang in on FAZ!

You shall be rewarded, set your sell at 18. I was early on the entry but you will be rewarded just as you were with WRES.

Buy the FAZ right NOW!

For a short term trade, buy the Faz, the Faz is 3x ultra financial short, it is NOT a long term hold, you should buy between $13 and $14 now and sell at no less than $18.30. Thats atleast a 30% gain. Buy it now! Risk Capital Only!

UPDATE on WRES! BUY in the .77 to .86 cent RANGE for BIG PROFITS!

So I recently recommended WRES and if you followed you made a substantial gain.

So here's the play now, if you have not, take profits.

Now we saw a move from .40 cent to a $1.13. We should now see a 38% retrace to .86 cents. And we may see a 50% retrace to .77 cents.

My recommendation is buy in the range of .77 to .86.

Then you should plan to hold to $5.50 to $6.50 by July 4th.

The catalysts for this move include the end of the loan redetermination, rising oil prices, a rising stock market and positive technicals on the stock.

You might say this move is impossible. We'll see.

WARREN RESOURCES (WRES) is extemely UNDERVALUED!

Berry got $7.33 per BOE in this environment!

Valuing Wres the same way and using the Q4 BOE, 21.55 million BOE.21.55 x 7.33 values WRES at 157.96 Million.Remove the debt of 108 and you get 49.96 million plus the 30 million cash equals 79.96 million divide that by shares outstanding 58.19 you get a value of $1.37 per share.

But wait, it gets better in my mind. You still have 37.83 million BOE that we all know is there only it can't be pulled without $50/bl oil. So even if you place a very conservative $2.5 on that you get 94.75 million divided by the shares, you get $1.63/ps and that is very conservative so a very conservative estimate on this company is $3 per share.


I believe you can now see why you had the heavy insider buying at $3 a couple of months ago, the company knows in a sale they would get a MINIMUM $3 per share.I believe in a more normal environment with oil above $50, this company would easily fetch $10/boe x the 59.33 million you would get 593.3 million less the dbt of 108 values the company at 485 million or roughly $8 a share.


Based on Berry and even with the environment you can see just how badly undervalued this company is and I am using very conservative numbers to come up with the $3 per share number.

LESSON ONE - Retirement Accounts like the IRA and 401K!

Some people will disagree and say you should focus on paying down debt first. But the best way to build ridiculous wealth is by continuously saving money via Ira's and other retirement vehicles such as 401K.

The reason I say you should first fund these type of accounts is because you can NEVER retroactively make a deposit. In other words, if you did not make a contribution in 2005, you can never go back and make a contribution for that year. It will forever be an opportunity LOST.

An IRA allows you pre tax to save up to $5,000.00 per year in a tax deferred account. A ROTH IRA allows you post tax to save the same $5,000.00, the advantage to the ROTH is it allows the funds to grow tax free forever.

A 401K is an employer offered retirement savings account that deducts a set percentage of your salary pre tax up to a maximum of $15,500.00 per year.

Now, let me show you just how much small contributions accumulate over the years. Say in 2008, you save $1,ooo.oo, in thirty years, assuming 8% returns per year, that $1,000.00 will have grown to $9,317.00. Over 40 years, $20,115.00.

So you can see the value of getting started early. Now obviously if you do this year after year, at retirment you will be quite wealthy. Now just imagine if you do the full $5,000.0o or idealy the full $20,500.00 by doing both the ira and the 401K.

$5,000.00 a year is not even $100 per week.

So you have decided to start, begin by opening an account with ETRADE or another online broker, www.etrade.com, www.troweprice.com, are great place to start. Until you have accumulated $2,500.oo the best thing to do is open a money market within the IRA until you accumulate enough to purchase your first fund. My recommendation is if you are under 40, begin by accumulating your a SMALL CAP FUND. These funds on average return over 12% a year over long periods of time. You can then add a fund that tracks the S&P 500, International Fund and a Bond Fund. I believe this mix until you reach five years of retirement should be 50% small cap, 20% s&p, 20% international, and 10% bond. This will give you an adequate mix.

In general, I am not in favor of holding individual stocks within your retirement accounts unless you have already saved a substantial amount of money. Individual stocks offer too much risk relative to a fund which holds a basket of stocks.

The goal here is not to hope you become a millionaire through obscene risk but rather to slowly over time build wealth.

Good luck as you begin the road to WEALTH.