Archives — March 2013 back to current month (62)
Christos Doulis travels the world for Stonecap Securities looking for mining companies that can contain costs; companies that can't contain costs because of rising labor and energy bills are not profiting from higher gold prices. From Mexico to Europe and Canada, he has singled out four companies that could actually make money for shareholders—and one that probably won't. And for those not ready to pick one company, Doulis, in this Gold Report interview, names his first small royalty company selection that could profit from the current challenging financing environment.
Ignore Banks' Bearish Statements on Gold (03/29/2013)
"Goldman Sachs has lowered its gold price projections and says the metal is headed to $1,200/oz. Credit Suisse and UBS are bearish. Citigroup says the gold bull market is over. So I guess it's time to pack it in, right?"
7 Big Growth Stories in Biotech: Keith Markey (03/28/2013)
As a former biotechnology researcher and 25-year Wall Street veteran, Griffin Securities Inc. Analyst and Scientific Director Keith Markey understands how novel, cutting-edge technology can produce extraordinary new products that bring in revenues with double-digit growth potential. Markey reveals his best ideas in this Life Sciences Report interview, providing his growth thesis for every name and describing why each has potential for at least a double.
As the demand for oil and gas grows worldwide, investors have to look beyond their geographic comfort zones and seek out opportunities in places less familiar than just North America. In this interview with The Energy Report, Amin Haque, energy analyst at Stonecap Securities, reviews his current thinking on some of the risks associated with energy production on an international basis and points out some of his favorite situations, which he believes will provide investors with above-average returns in the current market environment.
"Can the uptrends continue?"
Three Outside-the-Box Biotechs (03/28/2013)
I had a really nice chat with Griffin Securities analyst and scientific director Keith Markey about a wide-ranging group of topics. My goal is to always talk about individual biotech and sometimes medtech stocks, but we got started on another subject right away. Although he's been an analyst for 25 years now, Markey started his career as a molecular biologist doing wet lab bench research. So, I thought my first and most natural question would be about how the biotech industry has changed from the drug discovery perspective. He says it hasn't, at least in one sense. "It's still about the biochemical pathways," he says. "They still pave the way to new therapeutic approaches. It was basic research that led Genentech and Amgen to pursue their initial drugs, a tissue plasminogen activator (tPA) and erythropoietin," he says.
Peter Krauth, resource specialist for Money Map Press, considers the precious metals space an overarching requirement for investors. He sees value in every sector, although he admits it takes a contrarian mindset to see the opportunity among stocks that have been trending down for as long as 18 months. In this Gold Report interview, Krauth shares names from majors to mid caps to royalty companies, including those in the platinum group metals space, where supply-and-demand tensions will move the price of palladium up.
Can Gold Miners Increase Profits Through Spin Offs? (03/27/2013)
"Depending upon what is included in spin offs and how they're priced, they could be very attractive short-term investments, so keep a close eye on them."
"Now that cancer vaccines have entered phase 3 clinical trials, the possibility that we might one day be able to get our cancer shot together with our flu shot seems much more plausible."
Postcards from the Rare Earth Front (03/27/2013)
"Scientists in Tokyo last week announced they have identified new deposits of so-called rare-earth metals some six kilometers below the ocean surface. "
Self-help manuals tell us that what we focus on, we manifest. This is certainly true for rare earth elements enthusiast Chris Berry. Where some see a spiraling global economy and stagnation, Berry sees an emerging world with four billion people hungry for new technologies in which graphite and rare earth elements play a big part. In this interview with The Metals Report, Berry describes what he calls the changing complexion of the commodity super cycle and names a few companies to start focusing on. Get Berry's energy-metals outlook in his recent Energy Report interview.
For Jeb Handwerger of Gold Stock Trades, it's not a matter of if the uranium sector will rebound, but when. He's already pounced on the three-year low that hit the spot price in 2011, but as Handwerger tells The Energy Report, investors can still benefit from an equity uptick in the uranium, potash and coal sectors.
LNG on the March, Shale Oil Reserves Expand (03/26/2013)
"More and more LNG expansion is progressing across North America."
"The Strategic Mineral Advisory Council is encouraging the U.S. Department of Defense to nurture a U.S.-based REE supply chain."
Jordan Roy-Byrne, editor and publisher of TheDailyGold Premium, was able to achieve some marked success in last year's choppy market by buying growth-oriented producers. After the broader market tops out, Roy-Byrne is watching for the same stocks to outperform again. In this Gold Report interview, Roy-Byrne talks about how a decoupling in the market between stocks and gold is an indication he's right about buying stocks with relative strength, and growing cash flow and production.
Don Mosher, a business consultant with B&D Capital in Vancouver, is sounding the alarm. The TSX Venture Exchange, a once-thriving exchange for junior mining companies, is struggling. Its strife is a symptom of the overregulation that is slowly killing a whole sector of the Canadian economy, forcing mining companies and their servicers out of business or to move overseas. But the death knell hasn't sounded yet, Mosher tells The Gold Report. He believes the Venture Exchange and mining in Canada can be saved, and he outlines his plan here.
Gold Could Test Lows After Cyprus Deal (03/25/2013)
"We expect gold to move sideways this week with, however, a tendency for lower prices."
Gold Stocks Are the Market's Single-Best Value Today (03/22/2013)
Gold stocks aren't just ridiculously cheap relative to the S&P 500. . .they're also cheap relative to gold.
While Jamie Mackie, senior vice president and investment adviser with Macquarie Private Wealth, thinks the mining sector could sink further, he also believes now is the time to buy, carefully. In his first Gold Report interview, he discusses strategies to mitigate junior mining risk, including royalty and streaming companies, large and small.
Gold Stocks Are the Market's Single Best Value Today (03/22/2013)
"Gold stocks aren't just ridiculously cheap relative to the S&P 500. . .They're also cheap relative to gold. And they're cheap relative to any measure of 'normal' price action."
Big pharma knows how to market products. But has it lost a step on the drug development side? Is there a better way to incentivize drug development and make money at it? Mark Kessel, co-founder and partner at private equity firm Symphony Capital LLC, has developed an investment technique that funds promising biotech companies without exposure to all the losses built into a startup model. In this interview with The Life Sciences Report, Kessel talks about his method and how it has worked with specific biotech companies.
Tough markets have the average investor crying uncle, but now is not the time to lament losses—it's time to bargain shop, suggests Marin Katusa, senior editor of Casey's Energy Opportunities. China is snatching up energy prospects around the world in anticipation of ever-tightening oil markets. Meanwhile, there is already money to be made in international markets where consumers are paying double the price for U.S. natural gas. In his interview with The Energy Report, Katusa says bold investors who target the right companies could "get a Rolex for the price of a Timex."
"Discover which companies have big tax pools that will keep the taxman away."
The Guerrero Gold Belt, a sexy, new, developing mining district in the state of Guerrero, Mexico, has attracted some exciting explorers that have unearthed key discoveries. While several companies have gone on land-grabbing sprees, there's still good news: the Guerrero is growing. Merrill McHenry, metals and mining analyst with Industrial Alliance Securities in Toronto and an expert on the area, believes the Guerrero could be more than twice as large as it's currently defined—potentially becoming one of the largest gold districts in the world. McHenry tells The Gold Report which companies are strategically positioned to grow and develop within the Guerrero Gold Belt. He also discusses the impact of the evolving Cyprus financial crisis on gold.
The Cyprus Crisis, Banking and Gold (03/20/2013)
"The gold price in Euros jumped 2.3% at the start of Asian trade Monday morning, and has since jumped again as the chaos in Cyprus's rescue gets worse."
20 Million—Why Is this Number Critical for Copper? (03/19/2013)
For resource expert Joachim Berlenbach, fund adviser with Switzerland's Earth Resource Investment Group, copper is shining brighter than gold—he even does some back-of-the-envelope calculations to show how global development could create a serious supply bottleneck. In his first Metals Report interview, Berlenbach calls on investors to up their risk appetites and fund mine development, providing some straightforward metrics to weigh the odds.
Juniors in the oligopoly-dominated energy-metals space must break into the ranks of producers or become acquired to survive and reward shareholders, says Chris Berry, editor of Morning Notes. Strategies for success include good geographic location, sales contracts, ample cash and experienced management, but as Berry says in his interview with The Energy Report, macroeconomic conditions can turn the ambitious junior into acquisition bait.
"A biotech, you see, is no different than any other kind of high-tech firm: If it has enough patents, it can use them as a cash-generating machine."
Robert Cohen, lead portfolio manager with Dynamic Funds, has been kicking up dust at conferences and in board rooms with his "revolutionary and simple" idea that gold mining companies should hold gold on their balance sheets and use gold-based loans. But the idea is gaining traction and he suggests in this Gold Report interview from the Prospectors & Developers Association of Canada conference that management teams and investors alike would do well to question their use of U.S. dollars as a functional currency.
"This uncertainty could provide a brand new support for gold for days or even weeks."
Everything You Need to Know About Graphene (03/18/2013)
"We simply cannot get to the next level in a tech-oriented world without having the new materials to help us do so."
Eric Lemieux: There Will Be Winners in Quebec (03/15/2013)
It's been years since Quebec had a big discovery. Eric Lemieux, a mining analyst with Laurentian Bank Securities in Montreal, believes the province is overdue. Mining-friendly infrastructure policies like Plan Nord could give Quebec the push it needs, but the return to power of the Parti Quebecois has affected some projects and general market sentiment. Lemieux tells The Gold Report about which companies he believes are positioned to prosper if the Parti Quebecois swings back to mining-positive policies as he cautiously predicts.
Biotech Sector Analysis: March Madness (03/15/2013)
"Sound sector and company fundamentals are intact, and improving in some cases. The industry gatekeeper—the U.S. Food and Drug Administration (FDA)—continues to be cooperative. The bullish stock market also bodes well—as cash flows into healthcare funds remain abundant—driving many stocks to what appear to be extended levels."
No single solution will emerge from the growing realm of stem cell technology and regenerative medicine. Instead, multiple innovations will succeed in a field that promises to forever change the practice of medicine—innovations generated by the recognition that living cells are capable of performing a platform of functions that present-day drugs simply cannot. In this Life Sciences Report interview, Jason Kolbert, senior vice president and biotechnology analyst with Maxim Group, provides a detailed analysis of the industry and names companies that investors should be aware of now, while valuations are remarkably low.
What will it take for alternative energy to deliver the returns investors have dreamed of? Continued global economic recovery, unsubsidized demand and prices that give customers a green incentive without added costs. Some stocks—notably in Europe and Asia—are already benefiting from favorable conditions, but the stars have yet to align on a broader scale. Portfolio Managers Edward Guinness and Ian Mortimer of London-based Guinness Atkinson Funds tell The Energy Report why they're maintaining holdings in quality solar, wind and lithium stocks and when they expect a bounce.
How to Play Energy Markets Like Rockefeller (03/14/2013)
"Being patient—letting the market come to us rather than chase it ourselves—will give us the best bang for our buck."
These Gold Stocks Are Poised to Rebound in 2013 (03/14/2013)
"With gold prices rising year after year for much of the past decade, you might think all gold stocks have increased, too."
Will We See a Silver Breakout in 2013? (03/13/2013)
Silver has been trading sideways so far in 2013, but what will the rest of the year bring? Will 2013 be the year silver prices break out or crash and burn? What is a sustainable silver price for mining companies and where will the metal come from to supply the next generation of industrial and investment demand? Most important, how can investors make money off this volatile sector? These were the burning questions The Gold Report took to analysts, money managers and heads of silver mining companies. The answers may surprise you.
Gold Prices: Don't Ignore This Bullish Trend (03/13/2013)
"The central banks of South Korea, Russia and Kazakhstan have all reported additions to their gold reserves this year, continuing the trend of central bank gold buying."
As a former analyst with a strong background in geology, Malcolm Shaw uses his technical and market experience to dig through piles of news and company data to uncover resource investment situations that often go unnoticed by mainstream analysts. In this interview with The Energy Report, Shaw discusses the disconnects he sometimes finds between a company's fundamentals and its stock price, and why uranium is his favorite unloved sector right now.
The biggest new source for platinum group metals just might be what Jack Lifton calls "the rubber tire mine." Noting that removing the catalytic converter from a car's emission system produces a rate of return that rivals the production rates of the South African platinum giants, Byron King agrees that recycling is the wave of the future for platinum, palladium and rhodium. Welcome to the 21st century—find out how to play it in this Metals Report interview.
In Oil, Bigger Isn’t Always Better (03/12/2013)
"There is a growing recognition that how big a company is no longer automatically determines profitability."
This Healthcare Fund Is Up 70%: Why I'm Not Selling (03/12/2013)
"Have your exit plan in place, but don't sell. As I've explained many times, this market has the potential to run much higher."
In an environment of rising capital expenses, gold producers big and small are left with little or no free cash flow. Instead of investing in exploration to maintain production, too many companies are cutting costs and high-grading their current resources. Joachim Berlenbach, fund adviser with Switzerland's Earth Resource Investment Group, believes this kind of short-term thinking will lead to decreased production and a higher gold price. In this Gold Report interview, Berlenbach shares his ideas on how to succeed in this stock-picker's market.
Mining Bill Brings Iron Ore Back to Wisconsin (03/11/2013)
"Wisconsin Gov. Scott Walker said Thursday he will sign Senate Bill One, which sets the wheels in motion to bring back iron ore mining to the Badger State."
A Focus on Gold Costs at PDAC (03/10/2013)
"The most important shift to take place within the gold sector over the last two years," says IAMGOLD CEO Stephen Letwin, "has been the recognition on the part of gold miners that sustaining capital must form part of the equation; that all-in costs are not just operating costs."
Royalty plays may have once been strictly the domain of larger companies, but smaller names are shifting gears to enter the space. Can the smaller players make the numbers work for their shareholders? Kwong-Mun Achong Low, an analyst with Jennings Capital, believes they can. Achong Low tells The Gold Report about which juniors are making the leap into royalties.
"The death of President Hugo Chávez could eventually usher in a new era of foreign mining investment in Venezuela, only if the opposition wins an uphill battle for the presidency."
10 Biotech Stocks Poised to Run: George Zavoico (03/07/2013)
For the first time in ages, conditions for biotech investment are just right. The capital markets have loosened up, and institutional investors are ready to bid up share prices on stories that have both merit and looming catalysts. Sure, there's risk. . .but without it, there's no upside. In this Life Sciences Report interview, Senior Analyst and Managing Director George Zavoico of MLV & Co. identifies a group of biotech companies with market-moving events on their calendars. Sharpen your pencils: From cancer to coronary artery disease to vaccine technology, Zavoico names potential winners.
Five Oil and Gas Companies Analyst Joel Musante Digs (03/07/2013)
Many observers believe that the best days of domestic oil and gas production are long gone—and they may be right. But that doesn't mean there isn't a lot more petroleum product to be found right here in North America, even in fields that have been previously worked. In this interview with The Energy Report, Joel Musante, a senior research analyst at C. K. Cooper, profiles several companies that are still coming up with some impressive numbers.
Leonard Melman: Are You Prepared for Hyperinflation? (03/06/2013)
As looming inflation, currency wars and a possible run on gold threaten to derail markets, Leonard Melman, author of The Melman Report, is setting his sights on the midtier and near-term producers that he wants to scoop up when the blood is in the streets. In this interview with The Gold Report, Melman explains why gold, silver and the companies bringing them out of the ground could do very well in the second half of 2013.
"If you've ever suspected gold prices are being manipulated, you're not alone--and you're right, they are."
Stock picking can be an exercise in compromise, and investors who wait for a perfect zinc mining project could be sitting on the sidelines—and missing out on profits. Advanced zinc projects close to infrastructure are limited, and with zinc supply contracting in 2013, new operations are emerging both within and outside of established districts. Matthew O'Keefe, mining analyst with Mackie Research, talks with The Metals Report about his criteria for choosing investments in the zinc small-cap space and explains why he's sometimes willing to make concessions.
The big bullish story on lithium holds that once consumers make the switch from fuel-burning cars to electric vehicles, the resulting demand for high-quality lithium batteries could make millionaires of investors exposed to lithium miners. Consumers aren't making the switch overnight, but Dundee Analyst Mansur Khan sees a tipping point on its way, along with blue sky potential. Khan has the skinny on mining companies with the goods to supply an ever-hungrier auto market and the skill to thrive in tight market conditions. Learn which names offer maximum upside in this The Energy Report interview.
Eric Sprott: Central Bankers Are Gaming Gold (03/04/2013)
Some people may look at the stock market and see economic recovery. Eric Sprott of Sprott Asset Management and Sprott Money looks at myriad other economic indicators and sees an economy still in decline. Despite his suspicions that central banks are keeping gold prices artificially low, he tells The Gold Report that he favors gold, platinum, palladium and especially silver, over the near and long term.
When it comes to bullion enthusiasts, you're unlikely to find more ardent fans than those in the Sprott Group of Companies. Three of its leading experts, Eric Sprott, John Embry and Rick Rule, joined the Sprott Precious Metals Round Table webcast and conference call on February 12, with John Budden serving as host. The Gold Report summarized this treasure trove of knowledge for readers. Bottom line: While their bullishness on gold and silver has been common knowledge for years, the addition of the platinum group metals (PGMs) to the Sprott fold of precious metals trusts brings an intriguing new dimension to the bullion mix.
Why Copper Prices Will Rebound in 2013 (03/04/2013)
"If you're considering investing in copper, you need to know what's happening in China right now."
Canada's Shale Boom: Unlocking Alberta's Oil and Gas (03/04/2013)
"If you want to profit from North America's shale boom, all you have to do is follow the drill rigs."
Emotions, especially irrational ones, can drive markets. Investors who are spooked by risks like nationalization and political upheaval are pulling dollars out of promising mining projects in some African and South American jurisdictions. But many of these companies are only guilty by association, Alka Singh, founder of Mine2Capital in Toronto, tells The Gold Report. It's time for investors to look beyond the headlines and the fear to find bargains that aren't as risky as they seem at first glance.
"This coming decline in production can mean only one thing: higher gold prices."
The catalyst theory of investing in biotech stocks is all about the events that move shares in the public markets. Nobody wants dead money sitting in an account, but that's what you might be the case if you don't have a clear view of upcoming events that could make a stock jump in value.
"The second model is an equity-based or investment-based model and involves an actual investment in an entity that is pursuing a project. Members of the "crowd" that provide funding receive an ownership interest in the entity."
|"I would keep my eyes peeled on RP and Shiseido in the coming months for indications as to when the male pattern baldness therapy will become available in Japan."|
|"PVG is at the point of making final efforts to begin active mining."|
|"NXE has the best uranium discovery in the world in many many years."|
|"We foresee a development capex cost advantage for ML at Pastos Grandes given its more compact basin and property position."|
|"RXII is substantially undervalued; its total value should be $75-100M."|