Archives — March 2015 back to current month (36)
The fundamental difference between mining companies and investors is that they have very different realities in which they make investment decisions, says BMO Capital Markets Commodities Analyst Jessica Fung. She joined BMO Managing Director and Co-Head of Global Mining Research Tony Robson in a candid discussion with The Mining Report about the near- and medium-term prognosis for mining markets, as well as the outlook for copper, nickel and iron. While both Fung and Robson recommend waiting for the inevitable upturn in the commodities cycle, Robson says that in the meantime investors would do well to park their cash with some of the large, dividend-paying diversified miners until commodity prices recover, and he discusses three large caps and a couple of smaller names.
Chen Lin's Secret to Finding the Next Goldcorp (03/30/2015)
Chen Lin, author of the popular stock newsletter What Is Chen Buying? What Is Chen Selling?, knows the smart time to look for the next big gold company is when everyone else has left the sector. With China making moves to invest trillions in commodity-hungry infrastructure, Lin is traveling the world looking for the companies with the right projects in the right places making all the right moves. In this interview with The Gold Report, he shares some of the insights from his recent travels and discusses three companies with potential to be the next Goldcorp.
Canaccord Genuity energy analyst Johan Hedstrom is tasked with scouring the Australian oil patch looking for good deals even as prices slip and slide. In an interview with The Energy Report, Hedstrom minces no words: Pricing and rig costs are obstacles to taking large profits. But there is a silver lining to the energy price cloud—Australian gas exports.
Buyside analysts don't publish ratings and target prices for the public: Nearly all their notes, analyses and projections are top secret. However, in this interview with The Life Sciences Report, Wasatch Advisors' Jill Wahleithner breaks that tacit rule. Wahleithner, a former big pharma scientist, identifies three unusual biotechs with advanced therapeutic technology platforms that could turn the tide against conditions that have plagued humankind for eons, and the potential returns on investment matches the potential to completely and radically change the practice of medicine forever.
Everyone loves good management, but Ralph Aldis, portfolio manager with U.S. Global Investors, argues that few in the mining industry understand that the proper allocation of capital and the valuation of assets are the two criteria that separate the winners from the losers. In this interview with The Gold Report, Aldis highlights a dozen gold miners that get it and are likely to flourish even with continued low gold prices.
Following the lead of Tesla Motors, LG Chem, Foxconn and others are racing to build megafactories to build batteries for electric cars. Yet even now the world supply of graphite, lithium and cobalt needed to supply these factories is insufficient. In this interview with The Mining Report, Simon Moores, managing director of Benchmark Mineral Intelligence, explains that we can soon expect healthy prices for all three metals, but the juniors that will succeed in the market must first and foremost learn to meet the needs of the end users.
Why Your Last Investment Blew Up (03/24/2015)
"There are tightly designed, highly predictive Phase 2 studies, and then there are Hail Mary studies aimed at moving into pivotal trials, fingers crossed, as quickly as possible. You can't tell where a given program may lie on the spectrum based on headlines. . ."
When the bears are attacking and "stuckholders" are looking for shelter, that is the time to call on the experts who have found a way to make money in up and down years. In this excerpt from the Casey Research "Going Vertical" webinar, The Gold Report shares inside secrets from Pierre Lassonde, Rick Rule, Jeff Clark, Doug Casey, Frank Holmes and Louis James as they call out their favorite picks of yesterday and today. (Click here to watch it now.)
Gold Prices Still Cheap vs Falling Dollar (03/23/2015)
"'For an investor who would like to build a position, it's a lot cheaper than it was a few years ago.'"
More people are eating better, and demanding food with no gluten, more fiber, less fat and more protein. According to John Chu of AltaCorp Capital Inc., this trend equals tremendous growth potential for companies specializing in high-margin foodstuffs. In this interview with The Energy Report, Chu highlights one such specialty food stock, examines the effects of low oil and natural gas prices on the fertilizer space, and explains why he prefers the prospects of nitrogen-based fertilizers over potash.
Stem cell, gene therapy and genetically modified cell therapy companies have begun to attract serious capital from investors who understand biotechnology and have the wherewithal to move products into the clinic and into the market. But battles still loom on the political and reimbursement front. Edward Lanphier, founder and CEO of Sangamo BioSciences Inc. and current chairman of the Alliance for Regenerative Medicine, sees near-term milestones on the horizon, as well as additional inflows of validating capital from prominent investors. In this interview with The Life Sciences Report, Lanphier describes upcoming milestones and share-moving catalysts, some of which will be revealed at ARM's Regen Med Investor Day.
Quebec Is Back, Ready for Renaissance: Eric Lemieux (03/18/2015)
During the period when Parti Québécois controlled Québec, the province's attractiveness as a mining jurisdiction fell from #1 to #21 in the Frasier Institute's Annual Survey of Mining Companies. But when Philippe Couillard's Liberal government won a majority in April 2014, the market got the message. Eric Lemieux, consulting technical adviser to Toronto-based Peartree Securities, says that the Osisko Mining bidding war showed that companies were willing to pay a premium for Québec-based assets. Since then other takeovers have happened. In this interview with The Gold Report, Lemieux discusses some promising projects in Québec and other stable jurisdictions.
It makes no sense to look at stem cell companies differently from drug or biologics companies. The technology may be different, but the diseases they seek to treat are the same. In fact, cell therapies may ultimately be more useful and more curative than drugs, and hence more valuable. That's the way Alain Vertès of NxR Biotechnologies sees it. In this interview with The Life Sciences Report, Vertès talks about some of the stem cell names he knows well, and draws comparisons investors can bank on.
Goldman Sachs delivered a dire commodities outlook earlier this year, but RAB Capital Founder Philip Richards still sees compelling buying opportunities. In this interview with The Mining Report, Richards discusses his outlook for oil, gold, vanadium, zinc and nickel, and profiles companies with projects that will see the light of day even in harsh price environments. A few of these names have doubled in stock value in recent months, and still others look poised to deliver multiple returns on investment.
Pharma Stock Outlook: Let's Make a Deal (03/17/2015)
"AbbVie's $21B acquisition agreement with Pharmacyclics is one of the biggest deals to be announced in recent times. The deal goes to show that lofty valuations will not deter large companies from pursuing acquisitions to boost their pipelines and product portfolios."
Chris Ecclestone, principal and mining strategist at London-based Hallgarten & Co., finds optimism in the most unlikely places. He says that the key reason to be cheerful in 2015 is that the mining sector remains largely ignored. Ecclestone posits that the eventual rotation of broad market money into the sector will float many boats and lead to further M&A, which could start this year. In this interview with The Gold Report, he recommends being long mining stocks and shares some long positions and possible M&A targets.
"The new price setting mechanism will be launched on the March 20—this coming Friday."
Gold investors have been through a nuclear winter, but the future looks bright as mining companies bask in the glow of lower costs, better exchange rates and a flurry of mergers and acquisitions. In this interview with The Gold Report, Tocqueville Asset Management fund managers Doug Groh and John Hathaway share the names of mid-cap companies that could emerge successfully and one truly contrarian play that could be a tenbagger if their forecasts are correct.
Operating in difficult conditions—whether political, logistical or technical—comes with the oil and gas territory, but the collapse in oil and gas prices has added further complexity and risk to the space. Though many companies have lost half or more of their share price in the debacle, Stephane Foucaud of FirstEnergy Capital tells The Energy Report how to find value in small-cap exploration and production names, and provides several examples of companies poised to rebound on the upturn.
For Keith Markey of Griffin Securities, the science is paramount. Without understanding the underlying basis for activity, safety and efficacy, there's just no betting on a biotech stock. Over the last 25 years Markey has seen nearly every type of biotech success and failure, and it has made him take a hard, discerning look at every new name that comes his way. In this interview with The Life Sciences Report, Markey brings investors five technologically advanced biotech stocks, each with the potential to double, triple or do even better.
Everything You Need to Know About Copper Porphyries (03/11/2015)
This infographic covers everything you should know about copper porphyries, a deposit type responsible for about 60% of copper, 95% of molybdenum, and 20% of gold produced today.
After 30 years of investing in natural resources, financier and founder of Clarion Finanz Carlo Civelli has declared 2015 to be one of the worst natural resource investing markets he has ever seen. But he is still finding opportunities by funding some of his favorite management teams in neighborhoods where he sees an opportunity to prove resources and attract buyers. In this interview with The Mining Report, he shares his secret for finding companies that can create value despite challenging market conditions, and he reveals where he is putting his money today.
Who's Who of Gold Investing (03/10/2015)
"Gold's value, after all, is not dependent on the credit guarantee of any world government and is universally accepted as a form of payment."
With six mining deals in 16 months, mining takeovers in African nations are happening with increasing frequency, and Nana Sangmuah, managing director of research with Toronto-based Clarus Securities, says more African M&A is on the way. But he cautions investors about companies high-grading reserves to generate cash flow. When the music stops, Sangmuah says, those companies will crash. In this interview with The Gold Report, Sangmuah tells investors how to avoid the party crashers and seek names that can hit the high notes with long-life production assets that can generate significant cash flow to retire debt, grow the business and return some profits to shareholders.
Red Lake: The High-Grade Gold Capital of the World (03/06/2015)
Every major gold-producing country has an iconic gold-producing trend that is synonymous with prosperity. South Africa has the Witwatersrand Basin and the United States has the Carlin Trend in Nevada. While Canada has had many prolific gold-producing regions over the years, including many famous gold rushes, lately the gold capital of Canada rests in Red Lake, Ontario.
Building a small-cap energy portfolio that maintains balance in turbulence requires the ability to spot junior firms with solid backbones. Steve Palmer of AlphaNorth Asset Management has made a career of spotting companies loaded with value, and he tells The Energy Report not only what he looks for, but also where he has found it.
What moves biotech stocks the most? Is what moves them different in the U.S. than it is in Europe? According to the Small-Cap Biotech Watchlist, which The Life Sciences Report unveils at the Biotech Showcase each year, catalysts move stock prices. . .and some catalysts move stocks more than others. That is why, to create the Watchlist, we called on experts to look into their coverage universes for companies with expected announcements, and pick out the names with the most to gain. And everyone can follow along, all year, using the real-time Portfolio Tracker.
Profit Play from Massive Pharma M&A (03/05/2015)
Before today's AbbVie/Pharmacyclics deal, more than $35B had been spent on global healthcare mergers and acquisitions in 2015. That was up 124% from last year. Today's deal pushes that total over $57B.
Biotechnology can be daunting to comprehend, but understanding is critical to successful investment. BioWatch News Founder Alan Leong has a nose for growth names, and his goal is to make their technology platforms clear to investors who might not be able to make sense of peer-reviewed scientific literature but want the big upside that science promises. In this interview with The Life Sciences Report, Leong brings seven micro-cap names with massive potential to investors' attention.
The world needs gold, says AlphaStox's Etienne Moshevich, and while it has been out of favor for the last few years, a series of macro factors point to its uptrend. In this interview with The Gold Report, Moshevich discusses 11 gold, manganese and graphite companies with management teams that have the skills to ride the wave to create shareholder value.
Juniors Do It Better than Seniors (03/04/2015)
"Research suggests juniors hold their own in discovery."
"The Securities and Exchange Commission sees a few places where you might get yourselves into sticky situations. But there's an easy way to avoid trouble, and that's to beef up compliance and disclosure."
The era of rare earth elements export quotas and tariffs in China will soon be over and that could ultimately mean a new era of higher prices for REEs inside China, says Gareth Hatch, founding principal of Technology Metals Research and president of Innovation Metals Corp. Chinese REE producers are now subject to much higher environmental standards, which could further level the playing field for non-Chinese REE producers. In this interview with The Mining Report, Hatch discusses some of the latest REE processing technologies, companies with promising REE projects and other companies looking to produce battery-grade graphite.
Cash flow. Cash Flow. Cash flow. That's where investors should focus in 2015, says Philip Ker, mining analyst with PI Financial. Ker says that Canadian and Mexican gold producers are generating greater cash flow owing to a stronger U.S. greenback and more finely tuned mine plans. In this interview with The Gold Report, he shares his top stock pick for 2015 and some equity stories that could unlock further shareholder value with the drill bit.
A Fickle Exploration Ranking (03/02/2015)
"If we're getting a perspective on exploration potential in a more perfect world without major obstacles to prospecting (like war and drug runners), it's one polluted by erratic confidences."
PDAC Kicks off with Bold Predictions (03/02/2015)
The annual conference of the Prospectors and Developers Association of Canada (PDAC) is under way in Toronto and the mood on the floor and in the Investors Exchange is, as one might expect, cautiously hopeful, even if about a dozen booth spaces are unoccupied.
|"VIT's Eagle gold project is shovel-ready, with all permits in hand and an agreement with the local First Nations."|
|"As one of our long-time primary silver stories, GPL continues to be a smart play for those looking to leverage rising silver prices."|
|"Our thesis is that GUY provides a rare combination of a high margin, long life asset, gold price optionality and M&A potential."|
|"GSV is among the most promising explorers out there."|
|"R will have lots of exploration results coming, which could help boost share prices even if gold trades sideways."|