As the big dominos of $125 oil, $4 copper, $6 corn, and $1,000 gold fall onto the market, raw-material producers enjoy record cash flows. The next domino is all the cash finding its way to companies that supply equipment, services, and infrastructure to those producers.

If you’ve listened to our commentary on oil services, you’ve probably made a lot of money. But don’t forget companies like John Deere… Don’t forget the “ag services.”

John Deere is America’s largest farm-equipment maker. Think tractors, hay balers, plows, mowers, planters, and combines. Deere expects the booming farm economy to push up ag equipment sales by 35% in 2008. Shares are in a smooth uptrend. Like oil-service stocks, expect ag services to keep rising in response to high corn and bean prices.

Source: The Other Way to Make a Fortune in ‘Services’

The idea here is that while spending stocks like RV builders, boat retailers, and automakers struggle, companies involved in the basics will continue to do well… These companies sell things folks “have to have” rather than “want to have.”

The new highs in coal, natural gas, oil services, and agriculture companies show this trend at work. These are all basic industries that help produce food, fuel, and electricity. All are soaring right now. Also soaring is Wal-Mart – the ultimate destination for buying things we “have to have.”

Wal-Mart doesn’t sell $25,000 motorcycles or mega motor homes. Just the cheapest, most basic stuff in America. Sales are robust, and shares have gained 30% this year. As today’s chart shows, it’s a bull market in the basics.

Source: Another New High for the Ultimate Basics Stock

In the industry that sells transport, drilling, and pumping services to Big Oil, the rising tide is more of a 130-foot wave crashing onto shore. In other words, you could close your eyes, buy almost any oil-service stock right now, and come out ahead this year.

One of Market Notes‘ frequent guests, Transocean, is up 53% in the past year. It’s the world’s largest drill-ship operator. You find similar gains in CHC Helicopter (transport), Cameron (valves), Tenaris (drill steel), FMC (wells and transport systems), Nabors (drilling), National Oilwell Varco (drill rigs), Weatherford (drilling systems), and… well… we’ve run out of space.

No doubt this market is frothy… but for those speculating in 2008, keep this in mind: Skyrocketing oil prices are filling the pockets of Russia, Saudi Arabia, Canada, Norway, and Brazil right now. They’ll have to spend that cash to find more oil… and that 130-foot wave will continue pushing money into oil services.

Source: A Giant Wave Of Money Is Headed Toward This Industry

Today, we look at another sector the market is high on: Canadian tar sands. Our chart shows the past five years in Suncor Energy, one of the largest miners operating in Athabasca. When oil is trading for $60 a barrel, mining the tar sands is a good business. When oil is trading for $80, it’s a great business. And when oil is trading for $120, it’s a money machine.

As one of the institutional investors’ favorite ways to take a position in Canada’s tar sands, Suncor’s stock reflects all of the environmental, political, and economic concerns of Athabasca.

Suncor’s first-quarter cash flow increased 40% from one year ago. Shares have appreciated 480% in the past five years. The bull market in the world’s safest large deposit of crude oil is on!

Source: As Go the Oil Services, So Go the Tar Sands

Investment writers and stock pickers, like everybody else, have to build a reputation. They have to grab your attention, make you sit up and think. And they do this buy giving out free stock market recommendations — often the best recommendations they have.

Here at ContrarianProfits.com, you’ll find a wealth of recommendations and investment ideas that cost you nothing except the time it takes you to read them. Here are some examples…

In our ETF section 12% Letter editor Tom Dyson, recommends cashing in on rising grain and livestock prices with two livestock ETFs that track the Dow Jones AIG sub-indexes for live cattle and hogs: CATL.L and HOGS.L.

In our International section Martin Hutchinson in Money Morning recommends two ways to profit form Japan and China’s recently forged trading alliance: Chinese automotive manufacturer Brilliance China Automotive Holdings (ADR: BCAHY). Brian says, “Brilliance China trades at a pricey 48 times earnings, as it has only recently returned to profitability in the highly competitive Chinese automotive market, but its long term prospects appear excellent.”

In Oil & Energy Brian Hunt of DailyWealth explains why investing in the oil services sector is a no-brainer. According to Brian: “When oil sells for $125 a barrel, it creates a two-pronged situation in the oil industry: 1) It encourages producers to turn on the pumps at full blast. This depletes fields faster… 2) It creates unbelievably large cash flows for the ‘biggies’ like Chevron, Gazprom, and ExxonMobil. And they can direct those cash flows toward finding more oil… It adds up to huge demand for pumps, drill steel, offshore platforms, pipelines, and valves.”

In Real Estate International Living’s Floyd Brown tells readers how to buy dollar bills for 67 cents, a piece that created huge buzz on the web. Brian recommends a hot REIT HRPT Properties Trust (NYSE: HRP). It traded as high as $13.40 in 2007. The huge drop in its share price since then does not change HRPT’s assets. Today you can own it for $7.34.

And in our US Stocks section you’ll find a tonne of free stock market recommendations, including what Ann Sosnowski of Taipan Daily calls “a perfect example of a ‘free money’ opportunity“: Hawaiian Airlines (HE:NYSE). Ann says, “At $50 per share, it’s a strong buy [...] Its debt is one-third of its assets, and it has very good leverage. Not to mention an annual dividend yield of 4.6%!”

For more free recommendations and ways to beat the market, feel free to explore our site. Who said there’s no such thing as a free lunch?

When oil sells for $125 a barrel, it creates a two-pronged situation in the oil industry: 1) It encourages producers to turn on the pumps at full blast. This depletes fields faster… 2) It creates unbelievably large cash flows for the “biggies” like Chevron, Gazprom, and ExxonMobil. And they can direct those cash flows toward finding more oil… It adds up to huge demand for pumps, drill steel, offshore platforms, pipelines, and valves.

Those fundamentals sound great… but what is the market saying about it?

The market says, “I like it… Let’s send Tenaris, the world’s top maker of drilling pipe, to a new all-time high. Don’t forget new highs for Flowserve, the big maker of pipe valves, and Gulf Island Fabrication, the rig builder. New highs for everyone who operates land drills as well. And heck, let’s include the infamous Halliburton. After all, it’s a bull market in oil services!”

Source: The Market Likes the Bull Case for Oil Services