Yearly Archives: 2013

Take Profits In These High Flying Sectors and Consider The Historically Undervalued Miners

Take Profits In These High Flying Sectors and Consider The Historically Undervalued Miners
U.S. stocks are rallying on hopes on some sort of deal coming out of Washington.  Just like we have witnessed over the past several years, lawmakers will come to some sort of last minute deal to kick the debt can down the road.  Over the next week look for some sort of move to avert a default. The markets could rally short term on such a deal, but over the longer term the equity and housing markets appear to be ready for a major correction after rallying for two years.  We are witnessing bubbles in certain areas of the market which I encourage investors to steer clear from especially banks, housing, social media and biotech as these are very crowded trades filled with promoters, snake oil salesman, charlatans and day traders. Overbought bubbles end up in devastating losses.  Stay away from these high flying sectors and instead focus on the historic discounts in the mining sector.
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Will The Uranium Price Make a Fourth Quarter Comeback?

Will The Uranium Price Make a Fourth Quarter Comeback?
For many months I reminded my readers to ignore the low uranium spot price and the hysteria in the media over nuclear power. Instead I encourage all investors to focus on the increased M&A in the uranium mining sector where junior miners who are extremely early stage and do not even have a NI43-101 resource are being bought out for $185 million. Despite the uranium spot price hitting generational lows, we are witnessing ongoing consolidation and increased M&A in the uranium mining sector. This may mean the smart money is anticipating a major rebound in demand and prices. If we are seeing this much M&A activity in the uranium mining sector when the spot price is hitting eight year lows, imagine what could happen in this small sector when uranium starts moving higher.
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Look For Rebound In Undervalued Producing Coal Miners

Look For Rebound In Undervalued Producing Coal Miners
For many months, I have alerted you that capital will flow from bonds/equities/fiat currencies into precious metals, commodities and junior mining stocks as we begin to enter the inflationary cycle which historically follows deflations.  Central Banks are fighting economic contractions with quantitative easing which they are reluctant to end.  Our metal and mining sectors have been leading the markets over the past three months. Currencies are declining rapidly most notably in India, Turkey and Brazil.  Hyper-inflation may start rearing its ugly head like I predicted many months ago.  The U.S. dollar is also looking like it is on the brink of a major decline to break 2012 lows as it breaks down from a bearish rising wedge.
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Leaders in Graphite Mining Sector Poised For Bullish Reversal

Leaders in Graphite Mining Sector Poised For Bullish Reversal
For more than a year and a half I have been investing and following the graphite sector, as I believe there is incredible growth in this material over the longer term as it's use in our latest technologies has risen exponentially in the past decade.  Graphite's use is growing in high tech materials used in smartphones, jets, high efficiency lighting and steelmaking. Take a look at Graftech (GTI), which is one of the world's largest manufacturers and providers of high quality natural and synthetic-graphite products.  The chart appears like it may be on the verge of reversing higher.  This could be due to the steelmakers increasing output as demand is rising for automobiles and construction materials.
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Could We Be Witnessing The Bottom In Potash Stocks?

Could We Be Witnessing The Bottom In Potash Stocks?
The major potash miners such as Potash Corp (POT) and Mosaic (MOS) were sold off as investors believed this could impact profits and margins with a major gap lower. Many of the junior miners were hit incredibly hard as panic selling and capitulation hit the sector. However, smart money may be adding to their positions and the gap may begin to be closed to the upside. To sell based on Uralkali may be exactly the wrong time to panic and may actually signal a bottom as investors rush to the exit. Analysts across the board cut their ratings on the potash sector and one bank went as far as expecting a major exit by investors. However, we may see just the opposite, major buying could come back into this sector.
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Pullbacks In Gold and Silver May Be Buying Opportunities as Trends Turn Bullish

Pullbacks In Gold and Silver May Be Buying Opportunities as Trends Turn Bullish
When no one was buying and in fact shorting precious metals and energy, I was one of the only writers who said at the time, "This instability in the Middle East and around the world means investors should look for assets that maintain value during chaotic times. Precious metals and energy could be one of the safest areas to hedge against rising Middle East turmoil." Now 8 weeks later gold has rallied $200, silver has gone up more than $6 and oil is about to break through multi-year highs and could move to $150 a barrel. All over the headlines investors are scrambling for safe havens as the U.S. prepares to invade Syria.
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Ringing The Opening Bell At The NYSE and Giving Thanks To The Al-Mighty

Ringing The Opening Bell At The NYSE and Giving Thanks To The Al-Mighty
There was a rare and striking sight as Comstock Mining Inc. (NYSE: LODE) executives rang the day's opening bell at the New York Stock Exchange on August 13, 2013. The bell ringing was seen by over a 100 million people. Then, most striking of all, the group took off, not for a round of self-congratulatory drinks or business meetings but for a business meeting of a much higher order: a trip to Queens to visit the Ohel gravesite of the Lubavitcher Rebbe.
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Once In A Lifetime Opportunity In The Uranium Mining Sector

Once In A Lifetime Opportunity In The Uranium Mining Sector
If the long term demand picture looks price positive, why is that not reflected in the spot price? Uranium Investing News asked uranium bull and stock guru Jeb Handwerger, editor of GoldStockTrades.com to give us his insight into what the spot price really tells investors and why he’s still excited enough about this sector to stay invested in uranium mining stocks.
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Uranium Miners Are The Hottest Spot In The Resource Sector

Uranium Miners Are The Hottest Spot In The Resource Sector
For over two years now the uranium price and the uranium miners have been in a correction as the market factored in an oversupply of uranium from Japan and Germany moving away from nuclear power following the Fukushima Disaster. Long term investors realize this may provide a discounted buying opportunity as Japan and Germany now face the consequences of those knee-jerk political moves, slowing economies and rising electricity costs. The anti-nuclear Party in Japan has been relegated to a powerless minority. Could Germany make a similar move to oust Merkel this September as electricity costs and air pollution skyrocket from burning oil and dirty coal? Japan is about to turn on twelve nuclear reactors that have been idling since Fukushima. Don’t be surprised to see Germany do something similar this fall. Uranium is trading at seven year lows. Recall what Joseph told Pharoah thousands of years ago, that there would be seven fat years followed by seven lean years.
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