Dear Zacks.com User,

I hope you’ll pay immediate attention to a pattern that’s alarming many investors, but also promises to make a few very rich.

Oil prices spike, set a record, then spike again. Gasoline costs are trending upward while the U.S. Dollar is sinking downward. In April, 2006, oil cracked $70/barrel. By October, 2007, it reached $80 and then $90/barrel.

Although you and I may hate the idea of paying $3 or $4 for every gallon at the gas pumps, today’s high oil prices foreshadow one of the most significant U.S. profit opportunities we’ve seen at Zacks during the past 29 years.

And two things in this world we can be sure about are: (1) oil prices might subside on any given day, but they aren’t falling back to $50/barrel, and (2) a handful of investors will make a lot of money because of that fact.

These well-counseled few are the ones who will buy shares of certain hand-picked energy companies that benefit the most from high oil prices.  

Let me emphasize that we’re not talking about just any U.S. energy stocks. There are hundreds out there, each scrambling to supply oil and alternative fuels to markets that are starving for them.

But only a few are exceptionally well managed. Only a tiny percentage of them are brilliantly positioned to increase their profit margins with the right flow of product at the right time.

According to Zacks analysts, this sector holds a very limited number of U.S-only “powerhouses,? and I invite you to consider them right now.

The next big profit window is swinging wide open.

This is the time for such companies to surge. Oil prices are expected to remain high, perhaps even spiking higher in the months ahead.

Lord Oxburgh, former head of Shell UK, said prices could climb to $150 per barrel as supplies fail to keep pace with soaring demand. But even if they “settle? at $90-$100, it’s a far cry from 2007’s average of just $68.22 per barrel through October 30.

Why is this happening?  How can we profit from it?

High oil prices are caused by tightening supply and insatiable demand. Oil production is down in Russia, Mexico, and OPEC. Iraq is engulfed in turmoil. Iran’s nuclear threat is looming. The entire Middle East is a potential tinderbox.

At the same time, OPEC predicts that next year demand will increase by 1.34 million barrels per day. The International Energy Agency sees the jump at 2.2 million.

More than 1.3 billion people in China and 1.1 billion in India thirst for a Western lifestyle. That’s eight times the population of the U.S. The world simply can’t produce enough oil to satisfy them.

A WORD OF CAUTION TO INVESTORS:  All energy companies won’t reap this windfall. A few will profit far more than the others because they have better products or services, stronger management, savvier marketing, and can increase their profit margins. These stocks have the fundamentals to do well no matter what happens to the economy.

That’s right. Only a precious few energy providers have the essentials to move sharply upward even if the price of oil goes down. But if prices continue to trend high with higher spikes as we expect, these stocks figure to blast “through the roof.?

From the 4,400 stocks covered at Zacks, we focused on 492 U.S. energy companies. Of these, only 52 were awarded a Zacks Recommendation of “Buy.?

Then, we dug much deeper. We eliminated 90% of the choice U.S. energy stocks and homed in on the ones with prospects that are absolutely extraordinary.

Five recommendations, not six or four . . .

At first, we hoped to end up with the six best energy stocks because “six? is a good, manageable number for exploiting this sector. However, after an exhaustive search, exactly five companies emerged far and away above all the others . . .

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Stock #1: Oilfield services goliath.  Already, this company is generating 20% of their revenue from products that are less than three years old. Continued oilfield demand is helping the company institute price increases, which is expected to make their margins even greater.

Stock #2: Breakthrough alternative energy small cap.  They develop fuel cell technology and are blasting into a high growth period. Their recently signed contract, valued at up to $678 million over the next ten years, is just a bonus.

Stock #3: Oil and natural gas driller about to hit pay dirt.  They had been “stopped up? waiting for regulatory approval to develop their major ocean bed. Recently, the government gave them the go. Their stock price had been lagging behind our other powerhouses, but now we believe it’s primed to “blow.?

Stock #4: Big oil value company.  They’ve gobbled up smaller players and formed partnerships with others. A surprise buyback announcement suddenly made them even more attractive to our analysts.

Stock #5: Gushing offshore driller. A recent merger gives them a broader customer base, greater growth prospects, and unparalleled earnings potential in their sector. They also won a new drilling contract that could net them $1.16 billion in the years to come.

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These picks come from the same Zacks analyst team that has multiplied the S&P 500’s performance time and again. Using Zacks Recommendations and several other factors, they’re looking at a profit explosion for each of these stocks to happen in as little as a few days – and to peak in six to 12 months.

New Zacks Special Report rides high oil prices to high gains.

Of course, no one can say for sure. But, as oil prices continue to climb, these companies figure to do exceptionally well. For example, last January, violence in Nigeria and threats from Iran caused oil prices to head northward. So did our five special stocks. In just one month . . .

• Stock #1 popped 27.4% (a gain that annualizes at 328.8%) 
• Stock #2 rose 37.4% (for an annualized 448.8%)
• Stock #3 was up 11.8% (141.6%)
• Stock #4 was up 10.7% (128.4%) 
• Stock #5 was up 16.4% (196.8%)

More recently it happened again. From April through September, 2007, oil moved from $64.59 to $81.64. During this six-month period, four of these stocks scored huge gains. While the S&P 500 edged up 7.2%, these energy powerhouses averaged a gain of 32.8%.  That more than quadrupled the S&P 500.

Opportunity knocks again.

If predictions hold true, we are looking at a year-long, high-oil-price trend with more spikes and more profits.

That’s why, right now, I’m prepared to send you our new Special Report, POWERHOUSE ENERGY STOCKS: Five Ways to Fuel Big Profits as Oil Prices Soar.  It names the five stocks and gives you the facts you need for taking swift and decisive action.  

No reason to hesitate – we actually GUARANTEE your satisfaction.

The five picks are so powerful and the facts behind them so compelling, that we’re convinced you’ll be delighted with this Special Report. In fact, we’re guaranteeing your satisfaction for 30 days. During that time, if not 100% satisfied, just let us know and we’ll refund the cost. Every dollar. It’s as simple as that.

Even though you could profit from the picks and then ask for your money back, we trust you and want you to feel the same way about us. Now there’s no need to wait even one day.

I hope you’ll take full advantage of proven Zacks research now and galvanize your portfolio with these important picks. Don’t miss this opportunity to claim POWERHOUSE ENERGY STOCKS: Five Ways to Fuel Big Profits as Oil Prices Soar.

Please call 1.800.767.3771, EXT. 9339. (Outside the U.S., 312.265.9339.) Or simply click here right now.

Sincerely,

Charles Rotblut, CFA
Zacks Investment Research

P.S. In the first five weeks, POWERHOUSE ENERGY STOCKS have already outgained the S&P 500 +17.1% to +2.3%.  That’s more than 7 times faster growth, and our analysts believe that the surge for these companies has only just begun. Please don’t wait to get aboard.