Streetwise Reports' Article Archives — January 2014 back to current month (27)
Adrian Day: Ditch the Risk and Embrace the Upside (01/31/2014)
Adrian Day likes to think long term, and historical trends persuade him that the bull market in gold should continue for years to come. In this interview with The Gold Report, the founder of Adrian Day Asset Management explains why he expects a significant gold price recovery in the near future. In the short term, he counsels investors to choose companies that minimize risk through royalty agreements, joint ventures and robust balance sheets. In other words, companies with the means to seize profit-making opportunities, and Day shares the names of a handful that fit the bill.
Are you cashing in on America's free energy source? Porter Stansberry of Stansberry & Associates is more bullish than ever on what he calls America's "free energy," natural gas. He's stocked the model portfolio of his newsletter, Stansberry's Investment Advisory, with natural gas companies as well as the companies packaging it and moving it. His energy position was by far the highest-producing segment of his model portfolio over the past two years, some of those holdings even having doubled. In this interview with The Energy Report, Stansberry discusses the macroeconomic climate facing North American investors and how to take advantage of a building natural gas trend.
"The newly formed Glencore Xstrata is looking to shed its $5.9 billion stake in the Tampakan copper project in the Philippines, proving that the company prefers investing in mines that are in operation or close to production."
Geologist, engineer, Midas-touch investor and financial newsletter publisher Lawrence Roulston has little patience for investors without the nerves to hold onto a good thing during tough times. Gold has been the main embodiment of value for thousands of years, Roulston points out, so why should tomorrow be different? In this interview with The Gold Report, Roulston has some tips on how to double down on gold investments and wipe away the tears.
Which Gold Miners Hold the Most Supply? (01/29/2014)
Major and midtier gold miners currently hold 54.3% of all gold resources and reserves worldwide. Junior companies and governments hold the rest.
There are two ways to visualize the critical metals and industrial minerals sector. Some see a hostile climate, where junior mining companies compete for scarce financing dollars. But there's a sunnier side to this story: more than ever, companies, government and academia are forming partnerships to solve a global problem—the ongoing need for scarce critical materials. In this Mining Report interview, Luisa Moreno, industrial minerals analyst with Euro Pacific Capital, discusses the challenges and the prospects for players in a sector she insists is here to stay.
When the bulls are running for the doors, that is a sign that we have hit bottom and wise investors should hold on to their portfolios for the ride up, says Silver-Investor.com Editor David Morgan in this interview with The Gold Report . It may take a couple of resource war-addled years for gold and silver prices to move back to profitable levels, but the right companies—and he points to five from the members-only Morgan Report files—could make money all the way up.
How Long Can Gold Prices Be Held Down? (01/27/2014)
What is the condition of future supplies?
"In early January, the S&P/TSX Venture Composite Index rose above the 200-day moving average for the first time in three years."
The Rare Earth Commodities that Just Won't Go Away (01/23/2014)
"The Chinese still hold the trump card when to comes to rare earth production—they still produce over 95% of the world's supply."
Eric Lemieux: What Does 2014 Hold for Metals? (01/22/2014)
Eric Lemieux, a mining analyst with Laurentian Bank Securities in Québec, is a realist, which makes his optimistic outlook for miners in 2014 that much more compelling. Lemieux believes that with the wheat separated from the chaff over the past tumultuous year, the truly strong companies have emerged. But you may be surprised by the jurisdictions he predicts will come to life in 2014. Lemieux makes some startling, but happy forecasts in this interview with The Gold Report.
A Little Patience Required with Gold (01/22/2014)
"Gold could give a major buy signal in the next two to three weeks."
Amanda Van Dyke of Palisade Capital is confident that China's reforms will ensure that the commodity supercycle will continue for some time to come. In this interview with The Mining Report, Van Dyke argues that investors should worry less about the right balance of specific commodities and more about the right mix of early-stage, development-stage and producing companies. She expands on a dozen she believes have the right stuff to succeed.
The Longwave Winter of Ian Gordon's Discontent (01/20/2014)
As the Fed runs low on ammunition to further suppress the gold price, Ian Gordon, founder and chairman of the Longwave Group, is extremely bullish on gold. In this interview with The Gold Report, he recounts his history of the manipulation of the gold price and its implications for the global economy. He also expands on research showing that juniors are more effective and cost efficient at making discoveries.
Harry Dent: How to Prosper in the Coming Downturn (01/17/2014)
There's little happy talk in Harry Dent's new book, "The Demographic Cliff: How to Survive and Prosper During the Great Deflation of 2014–2019," yet the author sees incredible opportunities for the investors and businesses that see this crisis coming. The founder of Dent Research relies strongly on demographic statistics and trends to predict a crash starting in early 2014 and lasting into 2015 or 2016, which will make 2008 look like a mere tumble. In this interview with The Gold Report, he delves into the economic implications of Baby Boomers aging around the world, and discusses strategies for investors to protect themselves.
How to Avoid Pawnshop Lending: Heiko Ihle (01/15/2014)
Heiko Ihle, senior research analyst at Euro Pacific Capital, wants to warn investors and companies about the perils of "pawnshop lending"—predatory lending scenarios that many junior miners find themselves in as a result of the current commodity price climate, the overall financing climate, lack of interest from the buy side and incremental deals. In this interview with The Gold Report, Ihle outlines some alternative financing options and describes the three things he looks for in junior miners at the start of 2014.
China's recent halting of flake graphite production in Pingdu, Shandong, made headlines, and has many investors wondering how supply may shift. Simon Moores, manager of Industrial Minerals Data, tells The Mining Report that he sees an interesting dynamic unfolding in the graphite space over the next five years. As buyers for steel and battery markets compete for limited graphite supplies, the winners will be companies that can deliver the best, tailor-made products. In the meantime, offtake agreements are signaling a new confidence in the sector.
How Long Can Gold Prices be Held Down? (01/14/2014)
"If the gold price soars to new record levels and above, in dollar and other currency terms, it will become a reserve asset itself and for those holding it."
For over a decade, mining companies have relied on a rising gold price to reward their decisions, regardless of whether they were good decisions. Those days are over, and Chen Lin, author of the What is Chen Buying? What is Chen Selling? newsletter, says that investors must embrace companies that can grow their balance sheets even with gold as low as $1,000/ounce. Companies that can generate cash flow and acquire assets at fire sale prices today will likely be the winners in the next wave. In this interview with The Gold Report, Lin identifies a handful of producers that meet this threshold and one explorer well positioned to join their ranks.
"Fundamental trends have been set in motion over the past few years that follow upon the previous decade-long bull market and that point to an improving investment climate for the junior miners."
"Scotiabank analysts make noise on the uranium drum, drawing a what-if supply/price picture if Japan restarts reactors."
Deflation, inflation and reinflation all play into scenarios for the gold price and precious metals equity markets, as outlined by Paolo Lostritto, former director of mining equity research at National Bank Financial. How to play good defense in this unusual market? Companies with free cash flow top his list, but high-leverage, midtier producers with great management teams can satisfy investors with more appetite for risk, says Lostritto in this interview with The Gold Report.
Zinc or Swim: Do Base Metals Have a Future? (01/07/2014)
Joseph Gallucci of Dundee Capital Markets sees a rosy future for zinc investors. As the large zinc mines shut down, the juniors are stepping forward to meet growing demand for the industrial staple. In this interview with The Mining Report, Gallucci delivers smart tips for base metals investors on where to find opportunity when zinc prices start to climb.
Gold Stocks: What to Expect in the New Year (01/07/2014)
"Ditching this sector may not be the best action to take this year because miners are approaching the historical limits of multiyear declines."
Paul Harris sees a lot of untapped value in Colombia, a land that hasn't seen the arrival of modern mining due to a government sluggish to implement speedy approval processes. But Harris, editor of the Colombia Gold Letter, believes there are still some opportunities out there, pummeled by the market but poised to be buoyed by a more accommodating political climate and rising gold prices. He talks about the leading Colombia plays in this interview with The Gold Report.
Bullish or Bearish: Mining Sector Prospects for 2014 (01/05/2014)
"The mining sector is not dead. . .not by a long shot. Sure, many metals are relying on an inflationary rally, which may or may not happen in 2014, but others are simply poised to move higher in value based on a supply crunch that has been building for several years. You can't ignore fundamentals."
Silver Poised for Massive Recovery in 2014 (01/03/2014)
"Silver is poised for a massive recovery upleg in 2014, a mean reversion from last year’s dismal action. The main driver of silver’s initial strength will be American futures speculators covering shorts."
|"We expect PVG, a value-oriented gold name, to outperform."|
|"We are raising our target price on SEA 17%."|
|"MMG has been building toward a breakout for a long, long time."|
|"We see GSV as well positioned to be acquired."|
|"MAG could see a significant increase in market valuation in 2020."|