Archives — April 2013 back to current month (66)
Rare earth elements are a crucial component of our everyday lives, but many of the companies unearthing them are still learning to navigate the supply chain. Those that can master the dance of metallurgy and end-user relationships will find success, says Luisa Moreno, a senior research analyst with Euro Pacific in Toronto. In this interview with The Metals Report, Moreno updates us on which miners are making the most progress.
What the "tree huggers" don't realize, says 321energy.com founder Bob Moriarty, is that "the BMWs they drive to anti-Keystone protests need fuel." But the pipeline supporters who expect that fuel to come from American sources are just as delusional, Moriarty asserts in his scathing interview with The Energy Report. That's why he's looking beyond North America for lucrative oil plays. Find out which international producers may be ideally positioned to supply an energy-hungry U.S., and why Moriarty believes oil should be taxed "to the limit."
China's Secret Energy Investments (04/30/2013)
"There have been 1,673 undocumented Chinese development projects in 50 African countries over the past decade."
Market volatility sets the stage for price upswings as well as dips, according to Michael Gray, equities analyst of Macquarie Capital Markets, and the recent gold price drop should be seen as a "pause" in the bull market. Management teams are pausing as well, to focus on earnings and shareholder return rather than growth. In this interview with The Gold Report, Gray says this is the time to buy the best companies you can while they are discounted to fire sale prices, and he offers several names in jurisdictions from South and North America in the junior explorer space.
Breaking Down Gold's Comeback (04/29/2013)
"It's only been two weeks since the big crash. But that hasn't stopped the yellow metal from staging a comeback. For the first time in five weeks, gold ended trading Friday night with a weekly gain under its belt."
"Last year virtually all of the major brine and mineral-based lithium producers increased their prices, which in turn has spurred prospecting."
What is up—the Dow Jones Industrial Average and Standard & Poor's 500—will come down and what is down—gold equities—will go up fast, predicts the ultimate contrarian investor, Bob Moriarty. In this interview with The Gold Report, the president of 321 Gold proclaims that while all gold stocks are cheap right now, he has some favorites that he expects to jump when the junior market turns. Those who turn their back on the market over the summer just might lose their best chance to get in at historic lows.
Dick Huebner knows what he wants. He's looking for biotech companies that can make it very big from a near zero-base valuation. We're talking low-end micro caps that bring a lot of risk to the table, along with the opportunity for major gains. In this interview with The Life Sciences Report, GVC Capital's senior managing partner profiles three publicly traded life sciences stories that could produce generous windfalls for investors, and a private firm about to go public that promises to do the same.
Unconventional: Jim Letourneau's Investment Taste (04/25/2013)
Whether the topic is peak oil, climate change or commodity bull markets, Jim Letourneau tends to take the contrarian position. He's an unapologetic advocate of oil sands development and a shrewd analyst of the companies large and small that are active both in the Alberta oil sands and in the U.S. oil patch. In this interview with The Energy Report, he shares his insights into one of Alberta's largest oil sands players and one of its newest and smallest, as well as a well-positioned startup in the Texas Midland basin and northwestern Montana's Williston basin.
5 Factors that Will Push Silver to $250 an Ounce (04/25/2013)
"Because the global silver market is relatively small, silver prices tend to be more volatile; the pounding selloff we witnessed in silver this past month is a testament to that fact. But volatility works both ways, so when silver rises, its price can explode higher."
After the extreme volatility of gold in the last few weeks, OCM Gold Fund Manager Greg Orrell is more convinced than ever of the necessity of owning gold assets. In this interview with The Gold Report, Orrell lays out the rationale for buying these cheap gold stocks from around the world, including California of all places.
Back the Dollar with Energy, Not Gold (04/24/2013)
"Backing money with energy, not gold or debt, will cause people to gather energy."
Anorthosite: What It Is and Why You Should Care (04/23/2013)
Copper and nickel are two metals modern society cannot get enough of, but there is not enough to go around, says Rick Mills, publisher of Ahead of the Herd. Add in mounting production costs and you have a supply-and-demand disaster in the making. But when it comes to making fiberglass and aluminum, Mills says in this interview with The Metals Report that he sees a revolution in the making, and its name is anorthosite.
Here's the story on potash according to Salman Partners Analyst Andrea Rubakovic: The major players are planning for long-term demand by developing brownfield projects, but they're running into hurdles. Meanwhile, juniors are having trouble financing greenfield projects. Does this mean we're in for a global supply pinch? If so, who could be positioned to profit? Read what Rubakovic has to say in her interview with The Energy Report.
"The former hedge-fund manager and best-selling author believes this is a badly needed—even healthy—price correction."
"In its latest annual industry report, Ernst & Young see an implementation gap in how executives judge drug value versus corporate efficiency."
"Advances like these are going to make the energy balance an interesting and profitable story to follow."
Killian Charles, an analyst with Industrial Alliance in Montreal, isn't too concerned if the gold price hits $1,300 an ounce or even $1,000. He's more concerned with the gold breaking point. How low can the gold price go without breaking a project? Investors will be surprised to know that a wealth of junior miners are lean and mean enough to survive a pint-sized gold price. Charles talks with The Gold Report about which companies have resized and redesigned their projects to make it in this unforgiving market.
The Alchemy of Gold Investment (04/22/2013)
"Amara Mining Chairman John McGloin discusses the key things investors should be looking for in a mining company."
"Declining production capabilities, coupled with the volatility of oil prices, can lead some exporters down a road to financial collapse."
The recent fall in precious metals prices has investors on edge. Many precious metals equities were hurting even before the latest precious metals drop. In this interview with The Gold Report, Peter Rose, head of mining research with Fox-Davies Capital Ltd. in London, provides a European perspective on mining and advises looking at under-appreciated jurisdictions (think Europe) and neglected metals like tin, lead and zinc.
Why Gold Really Crashed and What You Can Do About It (04/19/2013)
"Japan caused the biggest single one-day gold sell off in 30 years."
"MLPs allow owners to move tax liability directly to their personal returns, bypassing the need to pay corporate taxes."
Atticus Lowe was among those who saw more smoke than fire in the fevered puffery of the shale industry's promoters. With an established track record now, the industry has proved its potential for him, and he is bullish on gas over the long term. He shares his assessment of some of the promising oil and gas players in this interview with The Energy Report.
How One Slip Can Create a Copper Supply Emergency (04/18/2013)
"The landslide in Utah is just one example of how quickly and unexpectedly the supply and demand factors facing the red metal can shift."
Three trends will light a fire under natural resource prices and equities in the coming years, according Greg Dorsey, editor of Leeb's Real World Investing. Buying small- to mid-cap equities now and holding them as a long-term option against the metal price is a winning strategy, whether you are talking about gold, silver, copper, platinum or palladium. In this interview with The Gold Report, Dorsey shares the names of favorite companies that could profit from the expected surge.
Gold's Tumble: Panic or Conspiracy? What's Next? (04/17/2013)
Since 2001, gold has risen more than seven times in value to an all-time nominal high in 2011 of $1,920/oz. As we all know, the price suddenly fell nearly 15% in two days, and is still bouncing around $1,375/oz. What caused the sharpest fall in the gold price since 1983? Depends on who you talk to. Reasons range from Wall Street downgrades by Goldman Sachs to fears over planned gold sales by highly indebted European countries. Other theories involve a hedge fund in trouble (a gold whale?) and conspiracies involving the Fed and others. Read on to learn experts' opinions on the cause of the fall and the opportunities the downturn presents for investors.
"After gold lost $84/oz last Friday and silver lost $1.81, we can conclude the beneficiaries were not gold or silver investors who panicked and sold, but rather those who are fighting to preserve the reputation of the U.S. dollar and the fiat currency model that underpins the global economy."
Location, processing and capital can make the tungsten market a tough place to be, but dwindling supply and insubstantial production indicate a coming price swing. In this interview with The Metals Report, Ken Chernin, equity research analyst with Jennings Capital, talks about why investors have ignored tungsten in the past and which companies could be a "tungsten global force."
Sideways oil and gas markets don't mean that investors can't find good upside opportunities and get paid while they wait for more exciting times. Michael Peterson, managing director and senior equity analyst at MLV & Co., tells The Energy Report why upstream MLPs offer stability and continued growth and which names stand out from the crowd.
Naysayers may harp on the low market valuations of stem cell companies, but Geoff MacKay has an insider's perspective. The Alliance for Regenerative Medicine chairman and Organogenesis Inc. president and CEO asserts that though the regenerative medicine and cell technology industry is still largely in phase 1/2, phase 3 and commercial success are imminent. In this interview with The Life Sciences Report, MacKay explains the promise of cell therapies for both patient health and investors' portfolios.
"If the U.S. Supreme Court reached any consensus on the patenting of human genes, it was not evident from yesterday’s oral arguments, in which the justices posed questions using analogies of plants from the Amazon and chocolate chip cookies, while plaintiff Myriad Genetics invoked its own metaphor of a baseball bat."
Dividends Galore: A 1970's Solution for Cheap Crude (04/16/2013)
"In those days, oil was a weapon."
The Good, the Bad, and the Unhealthy (04/16/2013)
"Today what we’re looking at is an almost impossible hurdle rate of over $1B per drug to come to market. It means that very few medicines make the hurdle rate. Occasionally, you do see one, but these are rarer and rarer."
Don't Panic, Buy Silver: Rick Mills (04/15/2013)
It looks bad for precious metals. Gold prices have fallen hard. Explorers are hurting for money. Slim treasuries mean fewer drill programs. Scarce discovery news could lead to fewer listings on the Toronto Stock Exchange. But all is not lost. In this interview with The Gold Report, Rick Mills, owner and host of Ahead of the Herd, points to the fundamentals of silver and the opportunities for stock pickers willing to invest in small bites and wait out the inevitable market ups and downs.
"See how much money you've got at risk, and remind yourself why you got into precious metals in the first place."
Resource Sector Paradigm Shift (04/15/2013)
"I still think discoveries are the best path to salvation for individual companies and perhaps the broader sector. Maybe gold gets a big bounce in the next few weeks but with the drubbing everyone has taken I don't see traders heavily on the bid unless higher gold prices are already in the rear view mirror."
A dearth of financing is culling the junior mining herd. Who will be left? Philip Ker, a mining analyst with PI Financial in Toronto, believes cash-flow generators in safe jurisdictions will continue to perform in this market. In this interview with The Gold Report, Ker talks about a few favorite companies that fit the bill.
Markets are not efficient—at least not in the short term. WBB Securities President Stephen Brozak admits to frustration when he sees small-cap companies with valuations that are disengaged from market realities. But Brozak's experience as a biotech investor, banker and analyst has taught him to be patient with these disconnection syndromes, and he now delights in prospects offered by select bargain-basement opportunities. In this interview with The Life Sciences Report, Brozak touches on 10 names that have been flying far below the radars of most investors.
A short-term investor's trash is a long-term investor's ticket to returns, and with resource stocks hitting all-time lows during a time of robust commodity prices, now is the time to snap up promising energy companies, Steve Palmer asserts. As a founder of AlphaNorth Asset Management, one of Canada's market-leading investment firms, Palmer has a practiced eye for spotting winners in a troubled market. He shares his picks in this interview with The Energy Report.
The Bright Lights of Big Oil (04/11/2013)
"We believe these economic bright lights have created significant opportunities for natural resources investors."
What Could Ignite the Precious Metals Market? (04/11/2013)
"The value of a position in the precious metals sector would have increased for those living in the UK or Japan, but for investors living in the United States the strength of the dollar has eroded the value of their holdings in the gold and silver space."
Jennings Capital Analyst Dan Hrushewsky sees investors' understanding of risk as directly related to the unknown. West Africa is unknown to many investors but it has a long history of mining, good infrastructure, favorable geography, many active producers and huge potential. In this interview with The Gold Report, Hrushewsky details three gold mining business models and specific companies active in West Africa that provide investors with asymmetric possibilities of limited downside and strong upside in a world-class mining jurisdiction.
Biopharmas Shift Q1 Fundraising into Overdrive (04/10/2013)
"Biotech companies generated $5B in the first quarter of 2013. . .The heavy lifting for the period was carried out by public companies, which were responsible for 65% of the total."
Every Gold Coin Has Two Sides (04/10/2013)
"Although the gold price has fallen with the strengthening U.S. dollar, the yellow metal is appreciating in Japanese yen."
Life is difficult for junior resource companies. Not only are stocks and commodity prices moving sideways, but tax changes in Canada may signal less friendly treatment for exploration investment. But not all is grim, according to Arie Papernick, the head of equity capital markets at Secutor Capital Management Corp. in Toronto. In this interview with The Metals Report, Papernick says investors can still make money if they focus on companies that are producing or near production with an attractive capital structure and strong balance sheets. Royalty plays are another favorite. He reveals that the next big opportunity may be coming in the energy metals space.
What is the best way to juice up your portfolio for a rich retirement? Natural gas and uranium are here to stay, says Stansberry Research's resident medical doctor and retirement investment guru, David Eifrig. In his interview with The Energy Report, Eifrig shares tips to maintain your financial health—but get plenty of rest and exercise so you can enjoy those golden years.
Too many investors fall in love with a project and forget that mining is a business, says Matt Badiali, editor of the S&A Resource Report. And business is tough these days. Still, a lot of companies' share prices have been unfairly cut down as investors who need to liquidate are selling good stocks on good news in an attempt to get a slightly higher price. These top 25% firms represent great bargains right now if you pick using the rules that Badiali sets out in this Gold Report interview.
"Expansionary monetary policies are not easing but accelerating worldwide, thus destroying the value of money leaving gold as the prime store of wealth in the medium to long term."
U.S. Crude Exports May Be Coming (04/08/2013)
"Price gyrations are prompting another round of concerns over supply and production."
Natural resource investors have experienced a tough year. The price of gold bullion has fallen from its 2011 highs and the prices of good junior companies have been slashed to as little as half their former valuations. All the more reason to start returning broker phone calls according to David Galland, Casey Research managing director, speaking on the Friday eve of the webinar he is moderating that features some of the biggest names in the industry.
The webinar, "Downturn Millionaires: How to Make a Fortune in Beaten-Down Markets," features Casey Research Founder Doug Casey, Sprott Global Resource Investments Founder Rick Rule, International Speculator Editor Louis James, "Endgame" Author John Mauldin and Diary of a Rogue Economist Editor Bill Bonner. In this interview with The Gold Report, Galland shares the motivation behind assembling this all-star cast for a golden wake-up call.
Adrian Day, founder of Adrian Day Asset Management, finds royalty plays some of the cleanest, least risky ways to invest in precious metals. Royalties also offer high margins and the benefit of exposure to exploration. In this interview with The Gold Report, he explains why royalty companies are so hot right now and shares the names of a handful of favorite companies both large and small with royalties around the world.
6 Biotechs with Staggering Potential: Grant Zeng (04/04/2013)
When it comes to picking biotech stocks, does a buyside perspective matter more than a sellside? Not according to Zacks Investment Research Analyst Grant Zeng, who has straddled the divide. What really matters is research of uncompromised quality. In this interview with The Life Sciences Report, Zeng offers a primer on what he looks for in a biotech investment, and names companies with the potential for big returns.
Low natural gas prices and volatile oil prices should not hinder investors in the oil and gas sector. In fact, low prices carry their own benefits. Casimir Capital Analyst Ryan Galloway describes a number of oil and gas juniors with savvy management, impressive development strategies and strong prospects of success that have earned a "Strong Buy" from him. Read more in this Energy Report interview.
What's Next for Coal? (04/04/2013)
"Coal is by far the least expensive and most abundant fossil fuel in the country, though the emergence of large shale natural gas reserves is expected to pose tough competition going forward."
Haywood Securities Managing Director Kevin Campbell is concerned by all the negative talk about the state of junior mining. In this reaction to an interview in The Gold Report with B&D Capital consultant Don Mosher, Campbell outlines the fundamental demand for commodities behind his conviction that this is a temporary, albeit vicious, downturn and that the TSX Venture Exchange, the industry and the experienced web of service providers that have built up around it are here to stay.
David Stockman: Welcome to Irrational Exuberance 2.0 (04/03/2013)
In his new book, "The Great Deformation: The Corruption of Capitalism in America," David Stockman, former Republican U.S. Congressman, former director of the Office of Management and Budget and founding partner of Heartland Industrial Partners, levies blame for the dire straits of the global financial system on central bankers, economists and politicians of both parties. In this interview with The Gold Report, he also offers some draconian solutions, including the need for a "constitutional fiscal chastity belt" in the form of a balanced budget amendment.
How to Double Your Money by Investing in Copper (04/03/2013)
"With copper, peak inventory levels are usually hit before a price rebound¬—sometimes with prices doubling in less than six months."
Why Rick Rule Bought $280M of Platinum and Palladium (04/02/2013)
When Rick Rule pairs lower grades, labor strife and inefficient mines with the relentless demand for platinum and palladium, his result is an investment thesis that could pay off for bullion and equity investors. In his Metals Report interview, the founder and chairman of Sprott Global Resource Investments Ltd. compares the current platinum and palladium space to the uranium sector 10 years ago, and predicts handsome returns for investors willing to shoulder the risk.
The downturn beginning in 2008 triggered a macroeconomic meltdown that would disrupt all markets, domestic and global. Demand for petroleum diminished just as new technologies were beginning to gush out oil and gas in never-before-seen volumes, creating a perfect storm that would depress prices. Now that oil prices have rebounded, is the worst behind us? In this interview with The Energy Report, Director of Energy Research Marshall Adkins of Raymond James & Associates discusses the events of the last five years and the near-term prospects for energy-related investments.
The New Frontier of Energy–The Old World (04/02/2013)
"We firmly believe that we are in the middle of an European energy renaissance."
Coming Soon: The Next Breakout For Gold (04/02/2013)
"History shows the Fed excels at creating bubbles, yet is completely inept at controlling conditions when bubbles pop."
In Biotech, Bad Management Trumps Good Science (04/02/2013)
"Honesty and reliability, including full and accurate disclosure of corporate results, achievements and expectations, is a fundamental condition of good management, which investors must be able to rely upon as a condition of investing."
Investors unsure of which way to turn in this market need only watch the "smart money," says Jeb Handwerger, the editor and publisher of GoldStockTrades.com. Billionaires like John Paulson and Carlos Slim are plucking up mining investments on the cheap. In this interview with The Gold Report, Handwerger shares his favorite discount buys.
The Basics of Investing in Junior Mining Companies (04/01/2013)
"A junior gold producer is a publicly traded company that mines gold at an annual rate of up to about 150 Koz."
The DoD's 'About Face' on REEs (04/01/2013)
"In a 189-page report, the DoD recommends investing $130M to establish near-term strategic stockpiles of seven rare earth elements."
|"GRG's Chinchillas is one of the largest silver development stories in the world."|
|"We view ICG's Lamaque South PEA update positively for its confirmation of increased mine life, higher production rates and lower unit costs."|
|"GUY's Q4/16 cash flow per share came in in line with our expectation."|
|"PGLC has secured all the permits to restart and expand Relief Canyon."|
|"NXE offers good odds of a 50% gain in the next 12 months."|