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COMMENT
TSX. Feels market is pretty range bound and volatility will continue. 11,000 on the downside and 13,000 on the upside and we are smack dab in the middle. Earnings growth is slowing so one of the tailwinds is now dissipating. Second question is interest rates and have they hit bottom at 1.75%-2% 10 year level in the US. He is now looking for a bit of direction.
COMMENT
Does the proposed Bank of Canada interest rate hike hurt or help the banks? Interest rates have been set artificially low and are now returning. The question is, why are rates going to go up. Going up because the economy has some life to it, which is the best news for the world, let alone banking stocks because we are returning to growth and an environment that will be replacing fear with a little bit of optimism.
COMMENT
Gold itself has not been in the investors’ wheelhouse as the economy looks a little bit better. Gold has been going down because it's not the safe haven need that people have in their portfolios. In this case, the Taseus mine has been delayed, which was the big surprise. What happened recently in Ecuador is a secondary factor. Great growth potential going forward but the difficulty is that when people lose confidence, it will take time for the stock to go up.
precious metals
COMMENT
In a little bit of a potential cash bind. In 2012, they have issues with 1) growth capital spending, 2) regular capital spending and a 3) dividend. They are seeing some impairment with their cash flow. It is possible the 7% dividend could be cut. If they didt cut it, they would still have a healthy dividend.
electrical
electronic
COMMENT
This is the bellwether in the uranium industry. Uranium prices have bottomed and seemed to be percolating up. This company probably won't get the full benefit as they still have to sell stuff that they hadn't sold previously. There is starting to be a building trend with regards to earnings. With natural gas at $2, it is dislocating a lot of things. Nuclear power may be displaced if natural gas prices stay low.
integrated mines
BUY
One of the great investment stories that will be talked about 10 years from now is “who bought natural gas stocks in 2011-2012”. Doesn't feel gas is going to stay down at $2 for a long time but analysts have been cutting their estimates on this company. Generating cash from their assets and he believes the dividend is safe. Generating good cash flow. If you have a time horizon longer than 2 years, not a bad time and you get paid while you wait.
oil
gas
