Archives — November 2013 back to current month (34)
Emerging from the Junior-Gold Rabbit Hole (11/29/2013)
"The juniors have seen so much carnage lately that investors have completely disregarded their sector. And this disregard has sent them down a proverbial rabbit hole, into a world that is bizarre and illogical to say the least. Though these stocks certainly don't have much support with gold prices so weak lately, popular consensus that the sector is dead is pure fantasy."
As the price of gold rose upward, junior miners chased ounces at all costs. This was a huge mistake, says Eric Coffin, because it resulted in unexciting projects, low margins and a depressed market. In this interview with The Gold Report, the publisher of Hard Rock Analyst explains that new discoveries with high margins are the essence of the junior, and he considers eight explorers with blue-sky potential and one producer with excellent prospects for expansion.
"Key when looking at the junior sector is, as Rick Rule commented in his San Francisco presentation, that investors need to seek junior companies that have three factors in common: have a management team that owns a lot of stock in the company; make sure the company has a good property; and last, but not least, does that company have working capital?"
Independent oil and gas companies with technical skills, local know-how and bottom-up knowledge are playing a larger role in Latin American oil and gas, according to Xavier Grunauer, analyst with Edison Investment Research. Rather than looking to national oil companies and global oil majors, the "fallen stars" operating in the region, Grunauer tells The Energy Report that investors would be wise to get up to speed now on some of the smaller independent oil and gas companies that are poised to unlock value in Colombia, Argentina and Brazil.
Investors are attracted to small- and micro-cap biotech stocks because their life cycles are filled with share-moving milestones. Michael Hay and Jocelyn August of Sagient Research handicap those milestones and calculate the probabilities that drugs in development will be approved and successful in the marketplace. In this interview with The Life Sciences Report, Hay and August set a table investors can be thankful for, naming companies with upcoming catalysts and real potential for upside.
Jay Taylor: Cashing In on Deflationary Forces (11/25/2013)
It's been a pretty rotten year for gold equities, and most investors can't wait for a fresh start in 2014. There's plenty to look forward to, according to Jay Taylor, publisher and editor of Gold, Energy & Tech Stocks and host of the radio show "Turning Hard Times into Good Times." Taylor, who is speaking at the Metals & Mining Conference in San Francisco, is forecasting a staggering rise in the real gold price, and profits for small-cap gold companies in the new year. In this interview with The Gold Report, Taylor identifies the best and brightest in his portfolio as he positions for a gold run.
"The diseases are chronic, brutal and life-threatening. The drugs that treat them are the priciest you can buy. Five approved by the FDA this year cost $150,000 per person and three cost more than $300,000, according to Forbes."
The era of gene regulation has begun in earnest. Craig Mello and Andrew Fire won the Nobel Prize in Physiology or Medicine in 2006 for discovering RNA interference, which can stop genes in their tracks. Drug therapy traditionally has been about finding a molecule that would bind to a protein and short-circuit the reaction pathway that led to disease. Thanks to Mello and Fire, it is now possible to prevent synthesis of the protein itself. In this interview with The Life Sciences Report, Craig Mello, professor at the University of Massachusetts Medical School and investigator with the Howard Hughes Medical Institute, discusses the stunningly disruptive potential of technologies that can silence genes. He also mentions some interesting companies in the field.
You may not think "oil" when you hear "Albania," but the once war-torn nation is home to the largest onshore oil field in Europe, says MGI Securities Analyst Amin Haque. Furthermore, the underexplored jurisdiction is likely hosting large undiscovered oil reserves. In this interview with The Energy Report, Haque explains the political and fiscal environment in this transitioning country and profiles some promising companies making headway there. He also brings us up to speed on some plays in Nigeria that could return big bucks for patient investors.
The fundamentals tell Stefan Ioannou, mining analyst with Haywood Securities, that the outlook is good for copper and zinc in the midterm, while for nickel, stronger-for-longer is the watchword. In this interview with The Gold Report, he warns that nickel's price is unlikely to cycle up before 2017. For all three metals, producers are the safest bet, but some splashy exploration plays could have the biggest payoff.
Sometimes the worst of times brings out the best in people. Such is the case in Australia's mining sector, according to Richard Karn, managing editor of The Emerging Trends Report. While some companies are floundering or failing altogether, Karn has noticed a few shining exceptions. These are companies with innovative management teams that have approached project funding in this challenging environment as though it were a high-stakes chess game—and their maneuvers are astonishing. In this interview with The Mining Report, Karn takes a look at three mining companies that are defying the odds and may emerge victorious.
Uranium: The Metal of Tomorrow (11/19/2013)
Nuclear power is a clean energy source that will be used well into the future to help meet the world’s growing energy requirements. In this infographic, Visual Capitalist highlights uranium’s history, properties and fundamentals moving forward.
"In its Platinum 2013 Interim Review, Johnson Matthey said the platinum market this year is moving toward a supply and demand deficit of 605,000 ounces—the largest deficit since 1999. That's up from a 340,000-ounce shortfall in 2012."
Demand for gold bars, coins and jewelry increased to multiyear highs in the first half of 2013, but was offset by outflows from exchange-traded funds, according to the World Gold Council, which produces a quarterly Gold Demand Trends report and recently released the first-ever Direct Economic Impact of Gold report. Sprott Securities founder Eric Sprott questioned those statistics in a callout on his website. He figures that the demand for gold is actually 3,000 tons more than the annual supply, and therefore the gold price will soon be much higher. What is the true demand for gold? How much is really available in any given year? Does supply and demand really determine the price of gold anymore? The Gold Report called Sprott and John Gravelle, global and Canadian mining leader for PwC, which produced the report for the World Gold Council, to find out.
Dressed to the Nines with Gold (11/18/2013)
"What's interesting about gold demand today is that more and more investors around the world are buying higher-end, more expensive gold. Specifically in China, 24-karat gold jewelry and 'four nines' gold gained market share in the third quarter, says the World Gold Council."
"Over the last five years, statin prescriptions in the United States have grown nearly 20% to 264M a year. Total global sales of cholesterol-treating medicines, including statins, were $35B last year, according to IMS Health. Statin sales amounted to $29B worldwide and $10B in the United States."
Karim Rahemtulla, investment director of Oil and Energy Daily and emcee at the upcoming Liberty Forum, believes the day is near when you will be able to fill up your tank with natural gas in stations from coast to coast. Why? The same large oil companies with gas stations all over the country now have a considerable stake in the success of natural gas. For producers, the trend toward greater adoption could buoy prices for the energy source, increasing margins. In this interview with The Energy Report, Rahemtulla discusses benefactors of the trend—and throws in some good news on gold.
Phase 1 and phase 2 biotech companies offer great upside for investors who understand the risks and the critical need for diversification. ROTH Capital Partners Senior Research Analyst Joseph Pantginis has staked out a basket of small-cap oncology biotech names with cutting-edge technology platforms that have realistic opportunities for success. In this interview with The Life Sciences Report, Pantginis makes meticulous arguments for seven names that offer huge upside.
With gold and silver equities markets as volatile as ever and assets of many miners valued at pennies on the dollar, Eric Muschinski, editor of the Gold Investment Letter, believes it is critical to be on the right side of the emotional curve when investing. He pays as much attention to investor psychology as he does to market fundamentals. In this interview with The Gold Report, Muschinski explains how investors can use knowledge of market cycles to their advantage and profiles undervalued companies flying under the radar.
Steve Palmer's AlphaNorth Partners Fund didn't make a 130% return by adhering to a strict natural resource weighting. In this interview with The Mining Report, Steve Palmer describes how his fund uses "bottom-up analysis" to find profit opportunities in metals, energy, life sciences and tech stocks. Small-cap equities may not be leading the pack now, but they are still the best-performing asset class in the long term, says Palmer, and he names some companies that are already outperforming.
It may be hard to find someone as enthusiastic about precious metals mining as Sean Brodrick. A natural resource strategist with the Baltimore-based Oxford Club, an independent financial organization, Brodrick isn't only filling his own portfolio with gold miners, he's launching two new newsletters to research and vet resource stocks. While Brodrick might be putting his money where his mouth is, it's not without solid reasoning and deep research. In this interview with The Gold Report, Brodrick discusses the projects he's visited, the management he's met and the companies that are getting his attention.
What Global Copper Reserve Estimates Don't Reveal (11/11/2013)
"World copper reserves are currently placed at around 630 million tons. When considered as just a single consolidated global num¬ber, copper reserves seem large and adequate for several decades of production at 2012 levels. Unfortunately most people do not take into consideration that these reserves are made up of many separate deposits, each of which has to be considered as a standalone and on its own merits."
Why Gold Prices Are Down Right Now (11/08/2013)
"The reasons for gold's continued fall, in spite of the apparent decay of the world, just might surprise you. . ."
Shhh! The market is sleeping. Meanwhile, international juniors are stealing into old oil and gas basins with the same equipment and technical expertise that forever changed the oil and gas landscape in North America. In this interview with The Energy Report, Canaccord Genuity Research Director Christopher Brown and Research Associate Kimberly Thompson name some promising junior companies that are poised to tempt majors back into these basins or simply clean up on premium international pricing. For investors, it's a case of massive potential upside for practically nothing—at least until the market wakes up.
Two years ago, medtech was thought to be waning. Investors were deserting companies perceived to be short on margins and sure to be demolished by the Affordable Care Act. Today the landscape is transformed: Medtech companies are embracing international markets, preparing for increased volumes of procedures and enjoying new, rich valuations. Do they have what it takes to woo investors back? In this interview with The Life Sciences Report, Bryan Brokmeier of the Maxim Group picks a small group of names that have performed brilliantly over the past year and that he expects will treat investors very well.
The specialty pharmaceuticals universe encompasses a variety of technologies, among them innovative drug delivery systems and unique pain management and orphan disease treatments. In this interview with The Life Sciences Report, Scott Henry of ROTH Capital Markets touts the value of "sound business models" in the specialty pharma space, and names six companies with interesting prospects and/or stock-moving catalysts on the horizon.
"We may well see both gold and dollar rise in tandem in the future, but for now they are tending to move in opposite directions."
Continued fiscal stimulus, high debt levels and loss of confidence in governments will lead to the return of big inflation and a consequent big run-up in precious and other metals, says Leonard Melman, author of The Melman Report. In this interview with The Gold Report, Melman examines six companies he believes are well positioned to generate stock-price multiples when the bull market returns.
Commodities are and always will be a cyclical market, asserts Chris Berry of House Mountain Partners. That's why he's not sweating disappointing stock performance and flat pricing environments. But the self-described long-term bull on energy materials has big plans on how to play growth in the developing world, and he insists that now is the time for investors to position themselves ahead of an upswing. Find out about companies that have the cash, the assets and the strategy to create long-term shareholder value in this interview with The Mining Report.
"While a lot of uncertainties remain within the healthcare system, the innovation coming out of the pharmaceutical sector continues to drive financial results and equity valuations higher."
With more than 1,700 precious metals mining companies listed on the Toronto exchanges, separating the wheat from the chaff is no easy task. Visual Capitalist has developed Tickerscores, an empirical approach to scoring gold explorers, developers and producers. In this interview with The Gold Report, Jeff Desjardins, president of Visual Capitalist, and Rob Fuhrman, lead analyst, walk readers through their methodology and reveal which companies in Canada, Mexico and the U.S. measure up as high-potential investments.
Gold Versus Wall Street's Program Traders (11/04/2013)
"As long as gold and the gold ETFs remain below the 150-day moving average the bears can claim control over the intermediate-term trend. A close above the 150-day moving average, however, would set up a retest of the late August high and would be an inviting target for the bulls to complete a bottoming pattern that was begun four months ago."
Don't Miss This Golden Cross in Energy Resources (11/04/2013)
"We believe great value in today's energy market lies in selectively choosing companies that own high-quality assets in the core basin areas of Eagle Ford, Permian, Marcellus and Bakken. What's important to our process is finding oil and gas companies that are growing their reserves, production and cash flows on a per share basis."
3 Promising Biotech Stocks with Upcoming Catalysts (11/04/2013)
"Biotechnology stocks are some of the most volatile investments around. They are hard to analyze because, unlike almost all other stocks, the fundamentals aren't typically as important as the potential. And the potential is usually based on upcoming catalysts that the company will face."
|"PGLC's Relief Canyon is primed for production and we expect it will be one of the next projects to enter production in Nevada."|
|"EFR's eye-popping copper grades could allow the company to improve the economics significantly at Canyon."|
|"GSV is among the most promising explorers out there."|
|"Drilling at ML's Pastos Grandes continued to encounter brine-bearing structures at depth; we're really looking forward to seeing the assay results."|
|"AKG reported Q4/16 production of 57 Koz, which compares favorably with our estimate."|