Category Archives: Energy

Insider Buying May Indicate A Comeback For Coal Stocks

Insider Buying May Indicate A Comeback For Coal Stocks
I have recently written about a potential rebound in coal. It is a hated sector by fellow analysts and the investment community as the consensus believes that coal is dead. Hardly anyone covers this sector right now, which provides astute investors with discounted situations. Incidentally, a Barron's article highlighted the insider buying in the coal sector at a time of extreme negative pessimism. This could indicate a bottom for the coal sector.
Read more

Look For Bullish Reversal In Uranium Miners As Electricity and Air Pollution Rates Soar

Look For Bullish Reversal In Uranium Miners As Electricity and Air Pollution Rates Soar
The uranium price is down 40% percent since the Fukushima disaster in March of 2011 as Japan and Germany made a political, knee-jerk reaction to shut down reactors and rely heavily on natural gas. Many investors continue to look backwards, contrarians like us take a look forward. Natural gas is above $4.25 and rising. It has doubled over the past year. The Fukushima reaction may have been a boom to natural gas in the short term, but utilities are passing on the high costs to consumers. Japan and Germany who have relied on importing natural gas now have some of the highest electricity costs in the world and this is causing a major backlash from domestic industries. Consumers are being crippled by these high rates. Voters have elected in a pro-nuclear government in Japan and may oust Germany's Merkel as the economy is on the brink of recession.
Read more

Natural Gas Breaks $4 Barrier, Comeback For Coal Miners?

Natural Gas Breaks $4 Barrier, Comeback For Coal Miners?
In theater a farce is a comedy that uses disguises, costumes and ruses to make believe unlikely scenarios. Over the past couple of years, we may have witnessed this bizarre script play out in the energy sector. For awhile, one common belief among investors has been that fracking is the panacea that would solve the world's energy problems. Many investors ignored the coal and nuclear sector as a viable alternative. However, for many months I warned my readers to be careful of what you read. Natural gas is historically volatile and that coal and nuclear is crucial for modern industrial nations to utilize in their energy mix. Natural gas is now breaking the $4 barrier and appears to be headed higher as supplies are tight due to increased demand and limited production. There is also increasing public opposition to fracking from the public, especially with regards to groundwater contamination. Natural Gas has doubled since the peak of the fracking bubble. For over two years the coal and nuclear stocks have been ignored by this fracking farce that natural gas would be the sole source of our energy future. Now coal and nuclear may once again be seen as a competitive alternative.
Read more

Ignore Declining Prices and Stay Focussed On Improving Fundamentals

Ignore Declining Prices and Stay Focussed On Improving Fundamentals
For Jeb Handwerger of Gold Stock Trades, it's not a matter of if the uranium, potash and coal 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. You have to buy when there's blood in the streets and real value. That's when you have to step in and pick up the bargains. One should fight the crowd when you see value and learn to wait. To paraphrase Jesse Livermore, money is not made in the buying or selling, but in the waiting.
Read more

New Uptrend In The Uranium Miners?

New Uptrend In The Uranium Miners?
Jeb Handwerger said a look at the technical chart for the price of uranium is already “showing that the two-year downtrend is breaking to the upside after bouncing off of three-year lows. “Uranium is one of the few commodities still heavily discounted compared to other commodities. The mispricing of the sector can largely be attributed to a lack of understanding — on the part of many investors — of the overall global fundamentals that are involved in the uranium sector,” said Handwerger. He believes governments, utilities and big-money investors are beginning to come around to the reality that nuclear power will be a part of the modern, global, industry-based economy, especially in Asia.
Read more

Uranium Miners: The Brightest Spot Right Now In The Resource Sector

Uranium Miners: The Brightest Spot Right Now In The Resource Sector
For many months, I highlighted the CB&I deal with the Shaw Group, the Chinese-Cameco connection, The Russians and Uranium One and the coming acquisition of junior explorers in the Athabasca Basin. Witness the acquisition of Fission Energy, which borders the famous Hathor Deposit which was taken over by Rio Tinto in 2011. Finally, after two years the sentiment has changed and is turning positive. This sector is extremely active with investment interest and confirms my belief that the death of nuclear that was called by so many analysts over the past two years was premature. Large companies such as Cameco, BHP and Rio Tinto are delaying large capital expansions and may be looking for undervalued juniors in mining friendly jurisdictions with easier capital requirements. The uranium sector was extremely active at PDAC as investors expect more deals at these bargain valuations. Already the two year downtrend in the uranium prices is being broken to the upside after bouncing off three year lows.
Read more

Uranium Price May Spike On Geopolitical Tensions In Africa

Uranium Price May Spike On Geopolitical Tensions In Africa
France is sending in Special Forces into Niger to protect their uranium sources controlled by state owned Areva. France is concerned that the fight in neighboring Mali may threaten neighboring Niger which has been a huge producer of uranium for 50 years. France is dependent on this uranium as nuclear provides over 75% of their electricity. The threat of Al Qaeda in the region is rising and uranium production is being threatened from terrorist groups.
Read more

Will 2013 Be The Year For Uranium Miners?

Will 2013 Be The Year For Uranium Miners?
This week we hear that Uranium One will be bought by ARMZ its controlling shareholder for $1.3 billion in a friendly deal. This means the Russians will have an increasing presence in the Powder River Basin. Putin is pushing nuclear power not only for Russia but to export technologies to emerging atomic nations. A few months ago we predicted a growing Chinese and Russian role in developing domestic U.S. assets.
Read more

Will Japanese Election Spark A Rebound In Uranium?

Will Japanese Election Spark A Rebound In Uranium?
One sector where we see a great amount of value is the uranium miners (URA) as The Chinese are going full speed ahead in building next generation nuclear reactors. The uranium spot price is just over $40, which is near the bottom of its three year range. Uranium may represent a bottoming situation. Look for a reversal in the near term and break above the recent downtrend due to the following reasons.
Read more

Supply Demand Fundamentals Point To Powerful Rebound In Uranium Mining Stocks

Supply Demand Fundamentals Point To Powerful Rebound In Uranium Mining Stocks
Over the next 12–18 months, the uranium sector is going to have a very powerful rebound based on supply-demand fundamentals. So it's very important to watch what the smart money is doing when prices are down and the uranium miners are trading at 52-week lows. Consider the recent deals that have been occurring, including a utility signing an offtake agreement with Paladin Energy Ltd. (PDN:TSX; PDN:ASX) and Chicago Bridge & Iron Co. (CBI:NYSE) buying The Shaw Group Inc. (SHAW:NYSE) for its nuclear building capabilities.
Read more