Archives — December 2013 back to current month (38)
We may be headed into a new year, but Chris Thompson, mining analyst with Raymond James, expects more of the same in the precious metals prices: volatility. In this Mining Report interview, he advises investors to play that volatility. He details why—despite its higher royalty tax—Mexico remains a silver powerhouse, and which companies will feel the royalty pinch most.
"In the developmental biopharma segment of the market that we follow daily at stockmatusow, stock prices sometimes experience volatile moves, especially as a near-term catalyst event approaches."
Miners Must Mind Their Margins: Rob Cohen (12/30/2013)
Mining success is not measured in ounces and dollars but instead by healthy margins, argues Robert Cohen, lead portfolio manager with Dynamic Funds. In this interview with The Gold Report, Cohen declares that investors should seek out projects that will earn profits of 20–35%, regardless of size, and takes us on an around-the-world tour of companies that hit this sweet spot.
It's no surprise that Stephan Bogner, analyst with Rockstone Research Ltd. and CEO of Elementum International—a precious metals trading and storage firm—advises investors to hold physical metals outside the banking system, but he also advocates mining companies keeping gold on their balance sheets and forming a cartel. In this interview with The Gold Report, Bogner discusses which exploration and development companies will be ready to produce when metals prices rise and shares his interest in the diamond, potash and uranium space.
Knowledge is money in resource investing. That is why The Gold Report reaches out to the top experts in the sector all year long to bring you their best investing ideas. For this special year-end feature, we asked some of your favorite thought leaders about the tools they use to spot trends and make those important buy-sell decisions. What are the early indicators that gold will rise, plummet or coast sideways? Is it Federal Reserve bond buying? China's growth rate? Lipstick sales? You may be surprised by the answers.
Strong Fundamentals Portend a Rebound for Silver (12/27/2013)
"When gold comes back, so will silver. And silver's gains ought to dramatically outpace gold's, like they usually do."
Without innovation and risk-taking, modern medicine would be missing staples of the physician's armamentarium: antibiotics, radiation therapies, vaccines. The idea of taking a tonic to cure what ails you is thousands of years old, but the science behind that tonic may be revolutionary. Enter stem cell technologies. Given the promise backing the science—and the sector's position on the cusp of breaking out—companies with cell therapies got plenty of attention from investment analysts and experts in 2013. Read what those experts, including George Zavoico of MLV & Co., Steve Brozak of WBB Securities, Jason Kolbert of the Maxim Group, and Kevin DeGeeter of Ladenberg Thalmann & Co., had to say about prospects for stem cell companies in this special retrospective article from The Life Sciences Report.
A more profitable outcome often requires a new way of doing things. The Energy Report profiled some of the most innovative stories in the energy space in 2013. Our experts talked about everything from developments in hydraulic fracturing techniques to new ways of finding and processing natural resources. As we look forward to exciting new opportunities in 2014, let's revisit some stories our experts shared last year.
Forget about the gold price. Forget about the copper, zinc and nickel price. Start searching out companies that can weather another few years of recovery, because it's unlikely mining companies will get any price relief soon. Shane Nagle, a metals and mining analyst with National Bank Financial, talks with The Mining Report about some names he's found that have strong balance sheets that can carry them through another few years of pricing pressures to smooth sailing on the other side.
"Blackstone's interest in Las Bambas likely means the firm smells an opportunity in both mining and copper, simultaneously."
Quality will win out, says Levi Spry, senior resources analyst at GMP Securities Australia. In this interview with The Gold Report, Spry contends that funding project capital expenditures is a problem only when the underlying economics are marginal. In other words, high grades plus low costs ensure victory, and he suggests a handful of Australian companies, in gold, lithium, copper and nickel, that boast the quality needed to earn high margins.
The Taper, China and Gold—Where Is this Leading Us? (12/20/2013)
"The announcement the U.S. Fed would start tapering in January knocked the gold price back sharply, but will China step up gold purchases as a result? If so, what impact will that have on price?"
Combine the complexity of genomic testing with the high risk inherent in micro-cap stocks, and you have investment opportunities that require exceptional diligence. The reward for understanding the value proposition of budding companies? The payoff can be enormous. In this interview with The Life Sciences Report, Senior Medical Device Analyst Brian Marckx of Zacks Investment Research has selected eight micro-cap names that could return triples, quads and more for investors willing to do their homework.
Looking into 2014, Chad Mabry, an analyst at MLV & Co., is more focused than ever on company-specific fundamentals and relative performance indicators, which help him identify the outperformers. In this interview with The Energy Report, Mabry also talks about some companies with exposure to up-and-coming plays that could offer major upside.
The best time to buy gold is when the market hates it, especially when it comes to junior explorers with market caps under $1 billion, asserts Ralph Aldis, senior mining analyst with U.S. Global Investors. In this interview with The Gold Report, Aldis shares his main modeling themes and companies that fit the bill. He also explains the win-win-win advantages of flow-through stock issuance, a technique allowed by some noteworthy Canadian provinces.
Two Lessons for Gold from 2013 (12/18/2013)
"With gold set for its worst year since 1981, Adrian Ash looks back at some takeaways from 2013."
Private equity firm Sprott Resource Corp. recently sold off nearly $76 million in gold bullion, but don't count the firm out of precious metals yet. What is the firm shopping for with its new-found cash? In this interview with The Mining Report, new Sprott Resource Corp. President and CEO Steve Yuzpe discusses where the company will focus its capital, and Sprott Asset Management Associate Portfolio Manager Maria Smirnova shares her outlook for resource markets.
The cell therapy industry has been mired in phase 1 and 2 studies for what seems like a lifetime. But 2014 is shaping up to be a banner year for share-moving phase 2 data and pivotal phase 3 activity. Jason Kolbert, managing director for biotechnology research at Maxim Group, leverages his deep understanding of the stem cell space to uncover viable therapies that double as excellent business models. In this interview with The Life Sciences Report, Kolbert guides investors to regenerative medicine companies that have evolved beyond great science projects into businesses capable of generating huge margins and disrupting the paradigm of medical practice.
"Only a few years ago, we were contemplating the supply constraints facing the petroleum industry, as many major oil fields around the world were facing a decline in production."
Analysts Split over Fed's 2014 Impact on Gold (12/16/2013)
"Last week's high of $1,268 per ounce reached Tuesday came as speculative traders in U.S. gold futures and options raised their bullish bets and trimmed their bearish positions, new data from regulators showed Friday."
What is holding down the gold price? Fear of the end of quantitative easing? Manipulation by a few big players? Central banks leasing inventories? CPM Group Managing Partner Jeffrey M. Christian says forget about all of that. The bottom line is that demand is down as investors big and small wait to see where the price will settle before they start buying again. In this interview with The Gold Report, he explains the impact of new gold investors buying—and selling—ETFs, hedge funds, algo traders and central banks—all factors that could lead to an upward trend in gold equities in 2014 and reinforce the long-term case for owning gold.
"Both research and production look poised for a revolution as 3-D printing applies its high-tech charms to the business of creating chemical compounds and turns the production of medicine into a DIY project."
Shopping for Biotech Growth Names: Reni Benjamin (12/12/2013)
Get ready for a bonanza of biotech names. Managing Director and Equity Research Analyst Reni "Ren" Benjamin is a new arrival at H.C. Wainwright & Co., and he's busy doing diligence on a lot of stocks. Along with three Buy-rated biotechs he's already initiated coverage on, Benjamin brought The Life Sciences Report a bonus package of names that could fatten investors' portfolios. Backed by Benjamin's extensive industry knowledge, this long shopping list includes companies poised to make drug development history.
The Shale Age is the age of the nimble junior, and exploration has revealed oil and gas resources that could forever alter the global production profile. Peter Dupont, oil and gas analyst for Edison Investment Research, tells The Energy Report how companies in North and South America, Australia, Africa and the U.K. are upending the oil and gas order and creating a whole new energy investment landscape.
James West: Falling Back in Love with Gold (12/11/2013)
There's a saying that old love never rusts. James West, publisher and editor of The Midas Letter, might have broken it off with the gold space for a while, but he always knew he'd be back when the time was right. In this interview with The Gold Report, West talks about what has convinced him to start shopping for gold stocks again and the unconventional indicators he's using to signal a buy.
Predictions for Cleantech in 2014 (12/11/2013)
"We're more optimistic about the year ahead in cleantech than in our last two years of predictions."
It may seem like a confusing time to be a mining investor, but Jeb Handwerger, of Gold Stock Trades, insists it doesn't take a rocket scientist. "Stick to the fundamentals," he says. "The technicals will eventually reflect the fundamentals." In this interview with The Mining Report, Handwerger talks about what companies have the right foundation to shine after the market dusts itself off and starts to climb.
Noting that the resource sector is poised to come back "big time," Dudley Baker, editor and founder of CommonStockWarrants.com, makes the case for adding warrants to resource investment portfolios. In this interview with The Gold Report, he offers a tutorial on this underused investment vehicle, disabuses myths about warrants and shares the names of some warrants that warrant investors' attention.
"Society will need to pay more attention to the acquisition and maintenance of metals than has been the case in the past, a new study by Yale University suggests."
How to Pick Biotech Stocks (12/09/2013)
"Intellectual property is one of the most important and valuable assets a company has. IP essentially gives someone a monopoly for producing a product against certain indications for up to 20 years. Finding companies with great ideas that follow through with investing in patent protection creates a potential short list of investments, as a successful product could have exclusivity in the marketplace."
An old investment principle says the equity upside of diagnostics and tools companies can't hold a candle to that of small biotech drug developers. Raghuram "Ram" Selvaraju, managing director and head of equity healthcare research at Aegis Capital, begs to differ. His research has uncovered small- and micro-cap companies developing sophisticated platforms in the molecular diagnostics space that are destined for significant revenue growth and profits. In his first of three interviews with The Life Sciences Report, Selvaraju lays out a handful of names with powerful technologies on the cusp of investor acceptance as huge growth plays.
Producers that Can Pump at $60/bbl Oil: Evan Smith (12/05/2013)
As impressive as shale gas and oil production has been in North America, Evan Smith, co-portfolio manager of U.S. Global Investors' Global Resources Fund, expects 2014 to break records as producers move to a pure manufacturing process and drill multiple horizontal wells from a single pad. In this interview with The Energy Report, Smith tells us why a few of the companies in his fund had a stellar 2013, and why they could go even higher in 2014.
Mining stocks may have moved from a bear market to a place where they are becoming contrarian plays, says Mike Niehuser, founder of Beacon Rock Research, opening opportunities for value investing. With the concept of "too big to fail" unknown in the mining world, the field of companies is shrinking, making room for potential winners. In this interview with The Gold Report, Niehuser warns that companies need more than good projects and cash to outperform their peers and details a dozen miners that should be on investors' radar screens.
"A 'seismic shift' in the mining industry is calling for radical change, says the latest Deloitte mining trends report."
Not all energy options are equally good, says Thomas Drolet, principal of Drolet & Associates Energy Services Inc. Using an "Energy Return on Energy Invested (EROEI)" calculation to decide which energy sources yield the most for the least energy investment, Drolet sees hydroelectricity, natural gas, uranium and coal at the top of the list. Drolet adds that the need for reliable power will keep baseload power fueled by uranium and coal at the center of the world's electricity systems for many years, but he tips The Mining Report to some technologies looking for investment that can help make coal a more environment-friendly fuel.
The end of the year is in sight, and many investors will soon be forced to take painful losses. David H. Smith, senior analyst at The Morgan Report, says that smart investors will take care to cull the weakest mining stocks from their portfolios and reinvest the proceeds in truly undervalued companies. In this interview with The Gold Report, Smith contends that once the market has worked through this process, a rejuvenated bull market in precious metals will eventually lead to a vertical rise in equities, with platinum group metals leading the way.
Robert Friedland's presentation at MineAfrica in London avows that the supercycle is not dead, and he sees huge value ahead for his Ivanhoe company's new platinum, copper and zinc projects in South Africa and the Democratic Republic of Congo.
Printing the Human Body: Infographic (12/01/2013)
The future of bioprinting will allow for full organs and other human parts to be printed on demand for patients.
|"GSV is among the most promising explorers out there."|
|"EFR's eye-popping copper grades could allow the company to improve the economics significantly at Canyon."|
|"Ramp-up is going extremely well at TV's Caribou: the operation is already cash-flow positive, after only one quarter of commercial production."|
|"R will have lots of exploration results coming, which could help boost share prices even if gold trades sideways."|
|"I am very pleased to see POE is making good progress at East Jabung; individual investors seldom get into this kind of world-class asset."|