You think the subprime was bad enough?
Listen to the research these pro's have done and what it shows for our future!
Monday, July 20, 2009
Canada's Oil Reserves + Commodity Currency
Canadian Oil has long been underestimated as people believe that the US imports the majority of its crude oil from Saudi Arabia and other middle eastern countries. However, quite the opposite is true; the United States, the "oil addict", brings the majority of its oil in from Canada every year, and the numbers keep growing. What most people don't know is that Canadian Oil Reserves could be the largest in the world, as there havn't been any significant discoveries in the middle east in quite some time, and the royal family will not allow an audit of its reserves (whose numbers havn't changed since almost 2006). So as you can tell the Arabic Oil on which the US "depends" is actually in question. Are there really as many barrels in the ground as they say? As a massive emerging economy, China's oil addiction is growing every year as well, and they will need an oil rich nation to depend on in the coming years. Canada's vast reserves of oil make its currency, the Canadian Dollar, what we call a commodity currency. This means that as the dependence on Canadian Oil increases and like wise the profits, the currency will follow suit, so you win on two levels. That is what makes Canada an A+ oil play, especially if the Saudi's are not being truthful about their reserves. This is an excellent investment for the coming years; as the rate of inflation within the US is set to rise the Canadian Dollar will be a good hedge against a devaluing currency. Companies like
Husky Energy(HSE:TSX) will see nice gains through their future and they will also provide you with quarterly dividends in Canadian Currency. The idea behind this investing technique is that when you purchase stocks on a foreign exchange like the Toronto Exchange (TSX) your US Dollars are converted into Canadian Dollars, and likewise down the road when you cash out, your money will be converted back. So you actually profit on 3 levels, first the stock itself will increase in price, second the currency will increase in price (or at least act as a hedge against a sliding US Dollar), and third the dividends are like a sign on bonus that you receive either quarterly or annually based on the company.
Use your head, Invest wisely and the profits will follow beind...
Husky Energy(HSE:TSX) will see nice gains through their future and they will also provide you with quarterly dividends in Canadian Currency. The idea behind this investing technique is that when you purchase stocks on a foreign exchange like the Toronto Exchange (TSX) your US Dollars are converted into Canadian Dollars, and likewise down the road when you cash out, your money will be converted back. So you actually profit on 3 levels, first the stock itself will increase in price, second the currency will increase in price (or at least act as a hedge against a sliding US Dollar), and third the dividends are like a sign on bonus that you receive either quarterly or annually based on the company.
Use your head, Invest wisely and the profits will follow beind...
How to Profit from the Natural Gas Rebound
If your a logical thinker, as I like to believe I am. You'd be questioning the current prices of natural gas. Now I dont believe that the price should be any higher given the current surplus we have, Supply and Demand should always rule the market. However, I do think that in the near future the surplus will begin to dwindle, and there may be a lag between having to much natural gas and having to little, thats how things usually work, from one extreme to the other. Right now the Companies involved with the exploration and production have slowed their pace to a fraction of what it was a year ago, in an effort to cut as many costs as possible. Its only a natural reaction to a sharp price drop; I think that any business owner would try to get as lean as possible, maybe shut down some projects that are currently unneccessary, postpone some explorations that were in the mix, etc.
So as the winter months roll around and the world begins to flip on the heat I would guess that the current surplus would begin to diminish, and as the forcast is for a 2010 economic recovery, the demand for gas (and oil) will increase. So when the demand increases and the surplus fades its going to take time for these companies to get back into their normal production modes, thus producing a lag between supply and demand. There are a few ways to play this rebound in Natural Gas prices, and I believe that one of the most profitable buys right now is the United States Natual Gas Fund (UNG:NYSE). The price on this Fund has been beaten down so severly that just a rebound to normative price levels would mean nearly a 200% gain. Another great buy is Chesapeake Energy (CHK:NYSE), here you would be looking at a 100% gain if prices rebound back to their early 2008 levels. Can we expect a full recovery? no one knows for sure, but right now there is a serious offset if supply and demand which is affectin the price, and once these imbalances begin to correct we will see some sort of price gain.
Good Luck and Safe Investing
So as the winter months roll around and the world begins to flip on the heat I would guess that the current surplus would begin to diminish, and as the forcast is for a 2010 economic recovery, the demand for gas (and oil) will increase. So when the demand increases and the surplus fades its going to take time for these companies to get back into their normal production modes, thus producing a lag between supply and demand. There are a few ways to play this rebound in Natural Gas prices, and I believe that one of the most profitable buys right now is the United States Natual Gas Fund (UNG:NYSE). The price on this Fund has been beaten down so severly that just a rebound to normative price levels would mean nearly a 200% gain. Another great buy is Chesapeake Energy (CHK:NYSE), here you would be looking at a 100% gain if prices rebound back to their early 2008 levels. Can we expect a full recovery? no one knows for sure, but right now there is a serious offset if supply and demand which is affectin the price, and once these imbalances begin to correct we will see some sort of price gain.
Good Luck and Safe Investing
Saturday, July 11, 2009
Wind Energy, Green Energy, Energy of the Future
Its no surprise that our dependence on fossil fuels is a dangerous one. With the worlds demand for energy growing at an unprecidented rate it is time to look elsewhere for our future energy sources. Renewable energy is no longer a back-burner idea. Its something that investors are pumping billions into, as its being put into action around the world. China's plans are to increase their wind power to service 30% of there energy requirements by year 2020. Thats nearly 100GW or 100,000MW.
The USA isnt far behind with projections of nearly 20% of its energy being generated through wind power by 2020. Fossil fuels are going to become more and more expensive as the world reserves diminish each year by approximately 4.5%.
There hasn't been any large fossil fuel discoveries in years now, and alot of the major wells are begining to dry up. The Saudi's claim to have some 250 Billion barrels of oil reserves remaining but they refuse to allow an audit to provide proof of these estimates.
The Chinese have taken the lead as the largest wind turbine manufacturers with two of their companies pushing aggresive distribution plans. GoldWind and Sinovel are the two largest chinese companies that have really stepped up and taken over the turbine market, however there are some American companies that will be a large part of the show also. Vestas has a 20% market share in the alternative energy sector and there are others that fall into the same category. I believe that the best places to pull profit from this huge new energy sector are going to be the small cap companies that get into the action on the ground floor.
One of these companies is A-Power Energy Generation(APWR). Currently trading at about $8.36, this company has a huge position. Its partnered with GE, and has alot of major alliances and a nice contract with chinese Shenyang Power Alliance. This company could easily be trading at $20/ share at this time next year.
The USA isnt far behind with projections of nearly 20% of its energy being generated through wind power by 2020. Fossil fuels are going to become more and more expensive as the world reserves diminish each year by approximately 4.5%.
There hasn't been any large fossil fuel discoveries in years now, and alot of the major wells are begining to dry up. The Saudi's claim to have some 250 Billion barrels of oil reserves remaining but they refuse to allow an audit to provide proof of these estimates.
The Chinese have taken the lead as the largest wind turbine manufacturers with two of their companies pushing aggresive distribution plans. GoldWind and Sinovel are the two largest chinese companies that have really stepped up and taken over the turbine market, however there are some American companies that will be a large part of the show also. Vestas has a 20% market share in the alternative energy sector and there are others that fall into the same category. I believe that the best places to pull profit from this huge new energy sector are going to be the small cap companies that get into the action on the ground floor.
One of these companies is A-Power Energy Generation(APWR). Currently trading at about $8.36, this company has a huge position. Its partnered with GE, and has alot of major alliances and a nice contract with chinese Shenyang Power Alliance. This company could easily be trading at $20/ share at this time next year.
Thursday, July 9, 2009
What the Price of Gold is Telling Us...
By: Ron Paul
This speech was given by Congressman Ron Paul on April 25, 2006 before the House of Representatives. It reveals a level of economic understanding that I believe very few politicians have today. Within his lengthy speech Congressman Paul covers every detail of our current economic situation. He explains the history behind his belief in a "commodity" currency (gold standard or an equivalent thereof)and the resulting economic stability. He explains the negative effects and instability that result from an alternative "fiat" currency, which is the precise position we are currently entangled in. And he explains the necessary changes that need to be made to correct the problems. He uses a very painful, yet truthful, analogy to convey his point.
"The best analogy to our affinity for government spending, borrowing, and inflating is that of a drug addict who knows if he doesn’t quit he’ll die; yet he can’t quit because of the heavy price required to overcome the dependency. The right choice is very difficult, but remaining addicted to drugs guarantees the death of the patient, while our addiction to deficit spending, debt, and inflation guarantees the collapse of our economy."
I believe that Congressman Paul is a wise and honest man, he understands where we are headed and where we should be headed. He should be a very strong candidate for future presidential runnings.
This speech was given by Congressman Ron Paul on April 25, 2006 before the House of Representatives. It reveals a level of economic understanding that I believe very few politicians have today. Within his lengthy speech Congressman Paul covers every detail of our current economic situation. He explains the history behind his belief in a "commodity" currency (gold standard or an equivalent thereof)and the resulting economic stability. He explains the negative effects and instability that result from an alternative "fiat" currency, which is the precise position we are currently entangled in. And he explains the necessary changes that need to be made to correct the problems. He uses a very painful, yet truthful, analogy to convey his point.
"The best analogy to our affinity for government spending, borrowing, and inflating is that of a drug addict who knows if he doesn’t quit he’ll die; yet he can’t quit because of the heavy price required to overcome the dependency. The right choice is very difficult, but remaining addicted to drugs guarantees the death of the patient, while our addiction to deficit spending, debt, and inflation guarantees the collapse of our economy."
I believe that Congressman Paul is a wise and honest man, he understands where we are headed and where we should be headed. He should be a very strong candidate for future presidential runnings.
Friday, July 3, 2009
Canadian Oil Sands
Though the Alberta Oil Sands have rightfully inherited the title as the "worlds dirtiest oil", they do contain almost 97% of Canada's crude oil supply. Before the collapse in oil prices and the start of our current economic crisis the oil sands produced nearly 3/4 of a million barrels of synthetic crude oil each day, with a forecast of doubling the output by 2015. There is alot of work involved in tapping these unusual resources and until fairly recently the price of oil did not allow for such expensive projects. For each barrel of oil that is pulled from the sands the forest above must first be cut down, then approximately 2 tons of peat moss must be removed and finally about 2 more tons of sand must be removed from which to extract the oil; a very time consuming task. However, the majority of the oil contained within the Alberta Sands was until very recently unretrievable. It was so far below the surface and so frozen that it was impossible to extract. But with the new "in-situ" extraction methods such as SAGD (steam assisted gravity drainage) it becomes possible to retreive the oil in a cost effective manor.
The USA has been searching for a way to cut its dependency on OPEC oil for years now, and it seems like in the future the Alberta Oil Sands may be just the relief we've been waiting for.
My theory is that the economic crisis will continue to stunt the growth and development of the Oil Sands for the coming years. However, once things begin to level and the demand for oil starts to rise, the USA will continue its search for an OPEC competitor, and this is when activity in the Sands will resume its course with a vengence. There are also alot of environmental issues that are currently associated with the Alberta Sands but I believe the new "in-situ" extraction methods like the SAGD system will allow for a much cleaner and more affordable extraction of the crude oil contained there in the future. I believe that the sands will be an excellent investment home for the years to come, especially since so many of the worlds major reserves are on their way out.
To get the most bang for your buck here i think you should look for smaller companies that own rights to currently under-developed pieces of the Alberta Sands, as they will be serious candidates for future growth or buyouts.
Thursday, July 2, 2009
Emerging Markets for Investment
The term Emerging Markets is used to describe a countries social or business activity in the process of rapid growth and industrialization.
The complete list of Emerging Markets is as follows:
Argentina, Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morrocco, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, and Turkey
Some of the Big Emerging Market(BEM) Economies are:
Brazil, China, Egypt, India, Indonesia, Mexico, Philippines, Poland, Russia, South Africa, South Korea, and Turkey.
The Largest Emerging Markets can be described with some new terms like BRIMC:
Brazil, Russia, India, Mexico, and China
The two largest Emerging Markets are India and China
The complete list of Emerging Markets is as follows:
Argentina, Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morrocco, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, and Turkey
Some of the Big Emerging Market(BEM) Economies are:
Brazil, China, Egypt, India, Indonesia, Mexico, Philippines, Poland, Russia, South Africa, South Korea, and Turkey.
The Largest Emerging Markets can be described with some new terms like BRIMC:
Brazil, Russia, India, Mexico, and China
The two largest Emerging Markets are India and China
Wednesday, July 1, 2009
Wednesday, June 24, 2009
Currency Crisis, The Fall of the US Dollar
6 WAYS TO PROFIT, WHILE OTHERS LOSE EVERYTHING...
There is a major currency crisis around the corner here, and lately I've been answering a lot of questions about what people can do to keep their money safe.
Well here are my thoughts all laid out.
What is a Currency Crisis?
currency crisis is a fancy way of saying that there will be serious volatility within the currency markets. Different currencies will drop drastically and others will rise. A long time ago different currencies were based off of gold, mostly because gold is a physical asset that cannot be misrepresented. How much does 1 ounce of gold cost in each countries currency? that was how the values of each different currency were defined.
Over the past 30-35 years things have shifted and the currency standard switched from being based on gold to being based off the US Dollar. Most likely because we were the most profitable and powerful nation. Well throughout that time the United States has dug itself into a serious hole. We've totally strayed from our origins, we no longer are a production country, we no longer are a profitable country, and we no longer are a saving country. In fact we've amassed the largest amount of debt that the world has ever known. and within the same time period we've also managed to start consuming more than we produce (spending more than we make). So as I'm sure your well aware of, this activity is not acceptable and can only last for so long before there is no one that will lend you more money.
So now our country has worked itself into a position where we've borrowed every cent that we can, and we are unable to produce enough exports to even come close to paying off our debts.
What happens when someone borrows money and then has no means to pay it back?
Thats right. they file for bankruptcy!
No one will lend us money, and we can't make enough to pay off the trillions that we've already borrowed. And we've made commitments for healthcare and tarp bailout plans that amount to trillions more. We are in a serious pickle....
WHAT WILL HAPPEN?
during this currency crisis, the US Dollar, maybe along with other currencies, will fall to almost complete worthlessness(for each dollar we have, we owe more than a dollar), and a new currency standard will be created. Most likely something that is not a paper money. Something tangible and physical. While the Dollar collapses, the people of the US will suffer from a hyperinflation period, and essentially we will see a Great Depression 2.0. Commercial realestate will most likely fall apart as businesses can no longer afford to own their properties, etc.
6 WAYS TO PROFIT FROM THE FALL OF THE USA!
1. Take your cash out of the bank
In the 1930's when the great depression hit, banks began to go under. There were lines of people outside trying to get their cash, but it was to late for many of them. When the government goes bankrupt FDIC and DIF no longer protect your money.
2. Exchange your US Dollars for Another currency
If you have $10,000 I'm really happy for you, but when the dollar collapses its still not going to be worth much. So my advice is to conver at least a good portion of your cash into a different currency, like Canadian, that way it will not lose as much value, or it may even grow in value.
3. Gold and Silver
BUY- physical gold and silver in coins or bar forms
Gold and Silver move inversely from the Dollar, so when the major currency crisis starts to unfold, gold and silver will begin to move north very quickly. And seeing that this will most likely be the largest Currency collapse the world has ever seen, Gold and Silver will produce gains that likewise the world has never seen.
PS. Silver prices are far below those of gold because silver is a secondary currency standard and there is only about 1/10th the amount of silver as there is gold. However when the world is in turmoil and investors and seeking a safe haven, silver has the tendency to move north much quicker than gold as the demand increases quickly and the supply is still very short.
4. Gold and Silver
BUY- stocks in gold and silver mining companies, outside the US
If you hand your US stock broker US Dollars, no matter how much of a return you make, you will get back US Dollars, which may be completely worthless. my advice to to go outside the USA and buy stocks in gold and silver mining companies so that when you go to get your payout, it is not in US Dollars.
5. Commodities
BUY- stocks in commodities, outside the US
They are fairly low right now and will most likely see a nice jump in price or the next months.
6. Natural Gas & Oil
BUY- stocks in natural gas & oil companies, outside the US
Natural gas & Oil are undervalued right now, and when things go south they should see some gains. especially when people realize that there isn't as much oil as they are led to believe.
There is a major currency crisis around the corner here, and lately I've been answering a lot of questions about what people can do to keep their money safe.
Well here are my thoughts all laid out.
What is a Currency Crisis?
currency crisis is a fancy way of saying that there will be serious volatility within the currency markets. Different currencies will drop drastically and others will rise. A long time ago different currencies were based off of gold, mostly because gold is a physical asset that cannot be misrepresented. How much does 1 ounce of gold cost in each countries currency? that was how the values of each different currency were defined.
Over the past 30-35 years things have shifted and the currency standard switched from being based on gold to being based off the US Dollar. Most likely because we were the most profitable and powerful nation. Well throughout that time the United States has dug itself into a serious hole. We've totally strayed from our origins, we no longer are a production country, we no longer are a profitable country, and we no longer are a saving country. In fact we've amassed the largest amount of debt that the world has ever known. and within the same time period we've also managed to start consuming more than we produce (spending more than we make). So as I'm sure your well aware of, this activity is not acceptable and can only last for so long before there is no one that will lend you more money.
So now our country has worked itself into a position where we've borrowed every cent that we can, and we are unable to produce enough exports to even come close to paying off our debts.
What happens when someone borrows money and then has no means to pay it back?
Thats right. they file for bankruptcy!
No one will lend us money, and we can't make enough to pay off the trillions that we've already borrowed. And we've made commitments for healthcare and tarp bailout plans that amount to trillions more. We are in a serious pickle....
WHAT WILL HAPPEN?
during this currency crisis, the US Dollar, maybe along with other currencies, will fall to almost complete worthlessness(for each dollar we have, we owe more than a dollar), and a new currency standard will be created. Most likely something that is not a paper money. Something tangible and physical. While the Dollar collapses, the people of the US will suffer from a hyperinflation period, and essentially we will see a Great Depression 2.0. Commercial realestate will most likely fall apart as businesses can no longer afford to own their properties, etc.
6 WAYS TO PROFIT FROM THE FALL OF THE USA!
1. Take your cash out of the bank
In the 1930's when the great depression hit, banks began to go under. There were lines of people outside trying to get their cash, but it was to late for many of them. When the government goes bankrupt FDIC and DIF no longer protect your money.
2. Exchange your US Dollars for Another currency
If you have $10,000 I'm really happy for you, but when the dollar collapses its still not going to be worth much. So my advice is to conver at least a good portion of your cash into a different currency, like Canadian, that way it will not lose as much value, or it may even grow in value.
3. Gold and Silver
BUY- physical gold and silver in coins or bar forms
Gold and Silver move inversely from the Dollar, so when the major currency crisis starts to unfold, gold and silver will begin to move north very quickly. And seeing that this will most likely be the largest Currency collapse the world has ever seen, Gold and Silver will produce gains that likewise the world has never seen.
PS. Silver prices are far below those of gold because silver is a secondary currency standard and there is only about 1/10th the amount of silver as there is gold. However when the world is in turmoil and investors and seeking a safe haven, silver has the tendency to move north much quicker than gold as the demand increases quickly and the supply is still very short.
4. Gold and Silver
BUY- stocks in gold and silver mining companies, outside the US
If you hand your US stock broker US Dollars, no matter how much of a return you make, you will get back US Dollars, which may be completely worthless. my advice to to go outside the USA and buy stocks in gold and silver mining companies so that when you go to get your payout, it is not in US Dollars.
5. Commodities
BUY- stocks in commodities, outside the US
They are fairly low right now and will most likely see a nice jump in price or the next months.
6. Natural Gas & Oil
BUY- stocks in natural gas & oil companies, outside the US
Natural gas & Oil are undervalued right now, and when things go south they should see some gains. especially when people realize that there isn't as much oil as they are led to believe.
Friday, June 12, 2009
U.S. GeoThermal Inc (HTM)
$1.85
US GeoThermal Inc. is engaged in the acquisition, development and utilization of geothermal resources in the Western Region of the United States of America. As of March 31, 2008, the Company operated two power plants, Raft River Unit I in Idaho, through its joint venture with Raft River I Holdings, LLC, a subsidiary of Goldman Sachs, and a plant located in the San Emidio Desert in Nevada. GTH also has several other properties under development or exploration. Raft River Unit I commenced commercial operations in January 2008. As of March 3, 2008, Raft River Unit I sold between 9.6 and 11.7 megawatts of power to Idaho Power Company under a net 13 megawatt power purchase agreement (PPA) which expires in 2032. On May 1, 2008, the Company acquired the geothermal assets, including a 3.6 net megawatt nameplate generating capacity power plant, from Empire Geothermal Power LLC and Michael B. Stewart, located in Washoe County, Nevada.
These GeoThermal Stocks have seen some really nice climbs in the past week or so, but they should continue to climb over the next months. Although its not a true penny stock, all Alternative energy companies should have a very promising future as the globe begins to turn increasingly environmentally friendly. Which can mean gains of up 100% in the coming year or so.
US GeoThermal Inc. is engaged in the acquisition, development and utilization of geothermal resources in the Western Region of the United States of America. As of March 31, 2008, the Company operated two power plants, Raft River Unit I in Idaho, through its joint venture with Raft River I Holdings, LLC, a subsidiary of Goldman Sachs, and a plant located in the San Emidio Desert in Nevada. GTH also has several other properties under development or exploration. Raft River Unit I commenced commercial operations in January 2008. As of March 3, 2008, Raft River Unit I sold between 9.6 and 11.7 megawatts of power to Idaho Power Company under a net 13 megawatt power purchase agreement (PPA) which expires in 2032. On May 1, 2008, the Company acquired the geothermal assets, including a 3.6 net megawatt nameplate generating capacity power plant, from Empire Geothermal Power LLC and Michael B. Stewart, located in Washoe County, Nevada.
These GeoThermal Stocks have seen some really nice climbs in the past week or so, but they should continue to climb over the next months. Although its not a true penny stock, all Alternative energy companies should have a very promising future as the globe begins to turn increasingly environmentally friendly. Which can mean gains of up 100% in the coming year or so.
US GeoThermal Inc. dropped from over a $4 high in late 2007 all the way to about $0.80 in the beginning of this year, and now it has begun moving upward again. I bought in about 50% of my position at the current price, and then I'm going to wait and see if there are any dips for me to get some cheap shares with my other 50%.
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