Matt Badiali with an AK-47 in Iraq...

Matt Badiali with an AK-47 in Iraq... Why Kurdistan oil production is about to soar... How to join us in Singapore... Facebook's crazy day...

 S&A Resource Report editor Matt Badiali is back on U.S. soil.

Matt recently returned from a trip to Kurdistan – a region that includes northern Iraq, Syria, eastern Turkey, and Iran – to investigate what he considers some of the most promising oil companies in the world.

As you can imagine, it's not the safest place to visit today... Matt's friends thought he had lost his mind. He had to be accompanied by multiple armed security guards at all times. His bags were scanned at an outside facility before he was even able to check into his hotel.

 I spoke with Matt on the phone today. He's home safe... And he saw lots of potential investment opportunities while he was out there. More on that in a moment...

 While Matt was traveling, he e-mailed daily updates to a select group of people. I've excerpted one of our favorite pieces for today's Digest...

 Matt is currently preparing a presentation outlining five companies operating in Kurdistan that he believes are about to make huge discoveries.

He's bullish on the region because by the end of this year, a pipeline will be completed and operating that sends Iraqi Kurdistan oil to Turkey. It will transport 300,000 barrels a day. By 2014, Matt says this pipeline will deliver 1 million barrels of Kurdistan oil to Turkey... And by 2019, there will be a second pipeline – together, they'll transport 2 million barrels of oil daily.

 To put those numbers in perspective, Oklahoma produces 300,000 barrels daily. By 2015, Kurdistan's oil exports will be equal to the oil production of Alaska, California, and Nevada combined. By 2019, its exports will be equal to 27% of U.S. daily production.

 Kurdistan isn't a big place. It's just 74,000 square miles. It would be the 18th-largest state in the U.S., roughly the size of Washington or South Dakota.

But this region is still surprising everyone with its potential. The $25 billion oil producer Marathon Oil just announced a new discovery named Mirawa about 40 miles north of Erbil. The first well flowed 11,000 barrels of oil per day, 1,700 barrels of condensate per day, and 72 million cubic feet of natural gas.

It's a huge discovery.

 Matt believes we'll see oil giants like ExxonMobil, Chevron, and China's state-run Sinopec buying Kurdistan's junior exploration companies in the next 12-24 months.

Once the first takeover is complete, Matt says we'll see an avalanche of activity. That's why it's important to act on this information quickly.

He will release the names of his five favorite companies operating in Kurdistan at our S&A Alliance meeting next month. This is the annual meeting we hold for our very best subscribers. (The S&A Alliance is our highest-tiered subscription. It grants subscribers access to everything we publish – minus Phase 1 Investor – for life.)

 This year's meeting is taking place on November 18 in Singapore. Each year, we ask our top analysts to present new, never-before-published ideas at the meeting. We also invite esteemed outside speakers to share their top ideas and opportunities.

If you're an Alliance member and you'd like to attend, you must act quickly. Registration closes Friday, November 1 at midnight. You can learn more by clicking here.

 If you'd like to become an Alliance member, and join us in Singapore, you can call our sales team at (888) 863-9356. They will happily process your order and hold a spot for you at the conference.

I hope to see you next month in Singapore.

 And if you'd like to read more from Matt's travels in Kurdistan, our free news aggregator website The Daily Crux has been posting Matt's notes. You can access them for free right here.

 New 52-week highs (as of 10/30/12): American Financial Group (AFG), BP (BP), Energy Transfer Partners (ETP), Integrated Device Technology (IDTI), Longleaf Partners Fund (LLPFX), and RPM International (RPM).

 You can't please everyone all the time... Send your thoughts to feedback@stansberryresearch.com.

 "Not commenting on the most unusual action of Facebook yesterday left me very unfulfilled with your non-comments. All that on AAPL and not a word on FB." – Anonymous

Goldsmith comment: I'm not sure what's unusual about a company announcing solid earnings and the stock moving higher...

Revenue rose 60% from a year ago to pass $2 billion for the first time. The company has also been successful in mobile advertising, which was responsible for 49% of its advertising revenue.

Facebook earned $425 million for the quarter, up from a loss of $59 million in the year ago period.

The stock was up 15% in after-market hours. But it has moved all over the place today, down as much as 5% and up as much as 6%.

Shares initially sold off after Chief Financial Officer David Ebersman said the company doesn't expect much more growth in mobile advertising.

There's your important summary of the daily movement of a security. Remember, in the short term, the market is a "voting machine," gauging how investors feel about a stock. In the long term, it's a "weighing machine," revealing its true value.

Regards,

The next leg higher on our favorite European trade is taking shape…

In July, we told you about a great way to make money off a recovery in Europe... Since then, the trade is showing a 30% profit.

In today's Digest Premium, we explain that this trade could soon explode higher...

To subscribe to Digest Premium and receive a free hardback copy of Jim Rogers' latest book, click here.

The next leg higher on our favorite European trade is taking shape…

 In the July 9 Digest Premium, I (Porter) shared my favorite way to profit from the European crisis...

I recommended going long Greece and shorting France...

 Since then, GREK is up more than 48%. The EWQ is up 18%. So if you followed my advice, you've made 30% in a little more than three months.

 And sentiment is improving in Greece. JPMorgan analyst Francesco Conte, who manages the investment bank's $2.8 billion European Small-Cap Fund, told Bloomberg...

 Yield on 10-year Greek debt is down to 8.31% from a peak of 33.7% in March 2012.

And from the beginning of the year through October 28, flows into Greek equity funds increased 129% (compared with 15% growth for Europe as a whole). In total, investors have poured $179 million into Greek stocks this year.

 In tomorrow's Digest Premium, we'll tell you about a major change coming for Greek equities that will attract a whole new class of investor...

– Porter Stansberry with Sean Goldsmith

The next leg higher on our favorite European trade is taking shape…

In July, we told you about a great way to make money off a recovery in Europe... Since then, the trade is showing a 30% profit.

In today's Digest Premium, we explain that this trade could soon explode higher...

To continue reading, scroll down or click here.

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