Streetwise Reports' Article Archives — February 2015 back to current month (11)
Brian Bagnell of Macquarie Capital Markets has two caveats for investors in junior oil and gas companies: Expect extreme volatility, and don't expect oil prices above $70/barrel anytime soon. He tells the The Energy Report that the winners in this sector will demonstrate maximal efficiency and minimal costs, and that even in this time of crisis there are bargains to be had.
John White has initiated coverage on several small-cap exploration and production companies in the Permian Basin, the latest of the major basins to turn in a big way from vertical oil and gas wells to horizontal fractured wells. In this interview with The Energy Report, the ROTH Capital Partners senior research analyst names five Permian players on his list of favorites.
The implosion of oil and gas prices will flush out oil and gas exploration juniors with weak balance sheets and too much debt, says Etienne Moshevich, editor of Alphastox.com. The small-cap companies left standing, however, are poised to soar once the market begins to accelerate. In this interview with The Energy Report, Moshevich touts the benefits of motivated management teams and solid balance sheets for all companies in the energy sector, and singles out seven oil and gas juniors, plus a pair of uranium picks, with outstanding prospects come the turnaround.
"In a zero interest rate policy environment, Wall Street debt syndicates will set the oil price, not the Saudis or the U.S. producers."
Gold stocks have been trading at huge discounts for years, but even rock-bottom prices couldn't entice takeover bids until the market hit bottom. The bottom is now here, says Jeb Handwerger, founder of GoldStockTrades.com, and M&As are off to a roaring start this year. In this interview with The Mining Report, Handwerger predicts a new record gold price within 18 months, and presents a host of gold and other metal equities poised to take off in 2015.
International anxiety may be good for gold prices, as gold continues to have a place as a store of value in uncertain times, says Mike Niehuser of Scarsdale Securities. Lower energy prices and a stronger dollar may provide relief for precious metal miners, especially explorers and miners working outside the United States. Management teams that have been forced to adapt to survive should do well in an upturn, and in this interview with The Gold Report, Niehuser discusses a handful of companies that fit the bill, including one in renewable energy.
This is a wonderful time to have cash and be in the oil business, according to Bob Moriarty of 321energy.com. That's because savvy juniors can go shopping for assets being sold as "uneconomic" when oil is $40–50/barrel. But the low price won't last, he tells The Energy Report, predicting much higher oil within the year. And while that increase will cause oil stocks to rise in tandem, Moriarty reminds investors that it still pays to be selective.
Lithium is for long-term investors, says Daniela Desormeaux, founder of signumBOX. Its future will be driven by soaring demand for batteries for electric vehicles and electronics. In this interview with The Mining Report, Desormeaux notes that lithium is less dependent on short-term economic cycles than commodities like oil and copper, and says demand for lithium will grow faster than the global economy. The entry of new players to the market is making what was an oligopoly more diverse and competitive, and she highlights some of the exciting projects being developed.
Uranium spot prices have shown more life recently, says David Sadowski, mining equity research analyst at Raymond James, and he expects upward pressure to continue as utilities resume buying to meet future needs. In this interview, he tells The Energy Report the time is ripe to invest in uranium company stocks. In addition to his four top picks in the space, Sadowski identifies other companies whose takeout potential will be enhanced by the rising value of their properties, including one he thinks the market has undervalued.
Copper is off to a rough start in 2015 and while other base metals have also shown price weakness, zinc could finish 2015 strong, says Stefan Ioannou, mining analyst with Haywood Securities. He estimates that over the previous two years about 12% of global zinc production ceased and more will end soon, ultimately leading to a run in the zinc price in late 2015 and into 2016. In this interview with The Mining Report, Ioannou discusses his top zinc pick and some high-grade, low-cost copper producers with zinc production profiles.
Sowing the Wind in the Oil Markets (02/02/2015)
"Will U.S. consumers spend this unexpected and new income or save it?"
|"POE was drilling water but found a good oil zone!"|
|"AZZ showed recoveries of 87–92% for copper, 82–88% for silver."|
|"DEFN's high-grade rare earths deposit is rich in 'magnet' materials."|