Exactly one year ago, I predicted that three companies were about to blast higher as the global energy boom picked up steam.

I hope you listened…

Each company has trounced the market by a wide margin in that timeframe.

Schlumberger (SLB) has jumped from $74 to $104 – a 40% move. This year, revenue is going to reach more than $45 billion.

[ad#Google Adsense 336×280-IA]Baker Hughes (BHI) is up by 48%, charging from $47 to $70.

It’s expected to pull in more than $22 billion in sales this year.

Then there’s Halliburton (HAL), which has rocketed 54%, from $42 to $65.

And revenue will clock in at around $29 billion in 2014.

I expect more gains to come, too, as all three companies are set for continued growth.

Especially considering this new revenue stream that has yet to be priced into shares…

Billions in New Revenue About to Hit
The three companies above are all about to receive a ton of additional business from some unlikely new sources.

I’m talking about foreign governments.

Countries like Brazil, Venezuela, Iraq and many locations in North Africa are looking to extract as much profit from their natural resources as possible.

To do this, they’re looking to modernize equipment, make their operations more efficient and, of course, drill for more oil and gas.

And they’ll need pick-and-shovel companies like HAL, BHI and SLB to meet their goals.

These firms won’t just be signing million-dollar contracts, either. Once these countries start ramping up operations, we’ll see billions hit the marketplace over the next decade.

Once this news starts pouring in, I expect share prices to ramp up accordingly.

No End in Sight
It should come as no surprise that these companies are outperforming both the general market and most of their competitors in the oil and gas sector.

Natural gas and shale oil discoveries are increasing, production is off the charts, and both onshore and offshore activity is at levels not seen before.

During times like these, pick-and-shovel companies claim the biggest rewards. Simple as that.

No sector is more immune to new competition, either. The barrier to entry in the oil services business is huge, since capital expenses (for drilling and transportation equipment, maritime logistics and information technology) are in the billions.

So when it comes to “safe” exposure to the biggest energy boom that the world has ever seen, nothing beats this killer trio.

Now, while these companies are reasonably priced right now, they’re not exactly cheap. Heck, even when oil and gas prices were lower, their businesses were thriving, since their services are used in the daily management of various assets.

The only way these energy stocks are going to get cheap is if the market corrects. Fortunately, the market has a habit of doing just that.

Be prepared to take action when the time comes. Rest assured, I’ll continue to keep my eye on these three stocks moving forward.

And “the chase” continues,

Karim Rahemtulla


Source: Wall Street Daily