Through a combination of capital gains and dividend yield, the goal of The 25% Cash Machine is to generate 25% annual returns from a combination. Editor Bryan Perry is now building a new position for this portfolio: Cheniere Energy Partners (NYSE: CQP), a play on liquefied natural gas (LNG).

The advisor explains, "LNG is natural gas -- the same clean, safe energy source used to fuel our homes and industries -- that's been reduced to 1/600th its volume through a sophisticated refrigeration process. In liquid form, natural gas can be shipped long distances safely and economically in specially designed ships with insulated storage tanks.

"World demand for liquefied natural gas is expected to double by 2010. The reason demand for LNG is growing is that it is viewed as safe, flexible, reliable, and economical. One other big (perhaps the biggest) plus in the current (and growing) green climate is that LNG is environmentally acceptable.

"Roughly 30% of Cheniere's stock is held by institutions and another 6% is owned by mutual funds, including many of the 'big boys' of the investing universe. Its top institutional holders include JP Morgan, Goldman Sachs, Deutsche Bank, Bear Stearns, UBS, and Morgan Stanley.

"The Master Limited Partnership (MLP) debuted as an IPO on March 7, 2007, at $21 per share amid strong demand. It carries a $3 billion market capitalization, and any earnings are going to be due to interest income on the $1 billion in cash and cash equivalents it's sitting on.

"We are jumping on this trend in its earliest stage, since at present Cheniere Energy has no revenues. Its Sabine Pass LNG terminal is expected to go into commercial operation in June 2008. As planned, the dividends are currently being paid out of IPO funds. At current prices, the dividend yield is right at 9%."

"But once CQP activates its massive LNG terminal, I think the stock is going to trade strongly higher on rising optimism. LNG is a relatively new form of commercial energy, but it's a 'ChangeWave' in the making and I want to be in early -- to start collecting our yield and get the benefit of the full growth ride in the coming months and years.

"According to an August 20, 2007, SEC filing, the Cheniere Energy CEO and chairman bought 107,600 shares of common stock. I always like it when the heavyweight in a company invests in his or her own undertaking. We want to increase our exposure to the very promising LNG story that is really just beginning to take off. Cheniere is just simply a wonderful compliment to our energy holdings."

Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.