TOP PICK
(A Top Pick Apr 11/07. Up 505.5%.) Metallurgical silicon for solar cells. World’s 2nd largest solar manufacturer just signed a long-term agreement. Expect to be fully running with 3 lines by the end of the 1st quarter giving $.40/45 earnings, $1.50 in 09 and $2.50 in 2010.
PAST TOP PICK
(A Top Pick Apr 11/07. Down 3.4%.) Huge gold discovery in Ecuador. 15 to 18 million high-grade ounces. Will get acquired at some point. Still likes.
TOP PICK
A sector that has been a disaster for a while. Stocks are starting to trade at NAV or below. You get a little over $5 in cash flow in 08. Rough weather could help natural gas.
TOP PICK
Recommends 25% cash. The subprime issue in the US is still happening. There will be more write-downs. China is trying to contain growth a little.
PAST TOP PICK
(A Top Pick Apr 11/07. Down 75.4%.) As uranium started to come off, hedge funds dropped out. Sold at a loss of 30%. Wait until there is some directional movement in uranium prices, which could be 2009/2010.
SELL
Copper prices have dropped precipitously. This is a very small company and very speculative. Doesn't think there will be near-term production and financing will be next to impossible to acquire.
BUY
Manufactures solar cells. A sleepy name that will do well and will participate in the sector. Will possibly earn $.25 a share in 2 years.
HOLD
Going through a period of contraction due to the subprime issues in the US and lower consumption growth. Commodity cycle is not over and expects commodity prices will improve in the 2nd half of 2008.
BUY
Stock has always been about 2008. Most stocks in oil/gas and the metals area have lost a lot of speculative money. Likes their land position around the inner oil/gas discoveries in New Guinea. With LNG facilities being built, their 8 million hectare property is a very good asset. Also have assets in Australia.
COMMENT
Solar panel construction. Sector had a growth rate over the last few years of 50% per annum and this will continue. Prefers being in metallurgical silicon manufacturing.
COMMENT
Likes the uranium sector, but longer term. 2009/2010 will be the timeframe when uranium prices will start to uptick again. Speculative money has come out of uranium so stock prices have dropped. This company is completely unhedged and in the next 2/3 years it should do quite well.
BUY ON WEAKNESS
Much more demand for solar panels than there is supply. The stock has run a little bit since September so would hold off buying. This is one of those names that will split several times over the next several years.
COMMENT
This has been a horrific year for natural gas. He has seen several statements where companies have cut back on capital expenditures on natural gas. A lot of stocks are trading below NAV. winter has now come to the east coast and consumption on a year-over-year basis will be stronger. It may be a good time to look at these beaten up stocks.
WAIT
A play on the mining sector. Probably feeling the reverberations from the subprime issues in the US. Believes this is only a short-term issue. This one could trade sideways for 6 months.
COMMENT
Down for 2 reasons. 1) Has been caught up in the commodities correction. 2) Has had some cost overruns and they have had to push off some projects. Good quality company that is just facing a tough environment that should amend itself in the 2nd half of 08.