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Tag: CDE (Page 1 of 2)

Gold Investing? Is it time to get back in?

Gold is an interesting product.  You cannot use it for any material purposes other than jewelry but it also is a product that cannot be artificially created.  There also is a limited supply of gold.  Warren Buffet said it best that you could make a big square cube of gold that would be around 20 football fields tall, wide, and length.  That would be a huge cube and that would contain all the gold in the world!

Ben Bernanke has been known to continue to print money.  With his latest QE3, he is printing $40 billion a month to keep interest rates low.  We are artificially having low interest rates because of the money printing.  It will definitely lead to inflation in the future, but we don’t know when.  That being the case, gold and silver has continued to rise in price.  He has been helping gold and silver continually increase since he took office.  I suggest you visit Bullion Vault and you can see today’s current value for gold and silver.

I would recommend looking at a few gold and silver stocks that can have a nice push up if inflation does indeed occur.  A favorite of mine, Coeur d’Alene Mines Corporation, is a silver miner stock that is very volatile.  It has jumped from $16 to $32 in a matter of months.  It also dropped from $32 to $25 in a couple days after the election.  If you need more diversification, you should look at Market Vectors Gold Miners ETF (GDX).  This ETF holds lots of gold and silver stocks and it should take away lots of that volatility you normally see in the commodity stock market.

 

Gold Looks Good for the Future

Coure D’Alene, CDE, is a commodity stock play on the gold and silver market. Their past couple years of results have not been too lucrative as they have been holding lots of gold and silver as reserves and the prices went down the roof, but the future looks might brighter with the recent gains in commodity prices. They are currently stockpiling their reserves until they find a good time to sell. They do not hedge their commodities.

Earlier this year they significantly expanded the production at Palmerjo and started operations at the Kensington mine. If you know commodities, the average gold to silver ratio is 16:1 which would mean silver would have to multiply to at least 3x the current price. It has been stated that gold will move up to $5,000 over the next decade. Their new mining operations have break-even point at $900 gold and silver at $8.50 an ounce. These break-even prices are very conservative. If gold and silver never rise, they would still be profiting at the current mining costs.

Technically, the stock price is undervalued. It just broke out of support at $17.50. Other than the downturn in 2009, the last time was 2003 when it was in the $18 level. The volume continues to look good – It doesn’t look like it will be stopping anytime soon.

Currencies are looking negative. The world is running on debt. Greece needs money to prevent a default. California continues to be desperate to raise cash. PIGS is next in line to require a bailout. United States continues to print billions of dollars to make up for the mortgage crisis.

There is a bunch of problems right now but there is always a way to profit. Institutional investors like gold mining stocks. This includes George Soros and Jim Rogers. Invest like the big guys that make money and buy CDE.

Disclosure: I own CDE (of course!).

Stock Market Still Dropping

The stock market has been dropping for the past week.  Gold stocks have taken quite a hit.  We are starting to see real bargains in the precious metals.  Stocks like PAL and CDE are reaching lows not seen since 2009.  I think the technicals say there is still much chance for the stocks to drop more.  The stoichastics show the weekly and daily are at lows, but we have been rising for quite some time.

For those that like to play it safe, it might be a good time to get in some conservative long-term holds.  Pfizer, PFE, and AT&T, T, offer nice dividends for those that do not need money right away and are willing to wait for the stock market and the economy to improve.  I would not be in the boat to be shorting stocks right now unless you’ve known of stocks that have risen too high as of late.

Looking at the SPY, we’ve only hit the monthly low of the stoichastics about once every two years.  It looks like the SPY might drop down to the 102 or 103, but from there on, it should be time to start buying and looking into long-term stock plays.  The market will improve.  The government has put too much cash in it for it to drop to march 2009 lows.

Prosperous Times are Ahead for 2010

We have just went through one of the worse periods ever in the United States.  The second great depression has finally past.  It’s time to rebuild.  We, as a nation, will continue to have a flourishing economy.  Better times are ahead, and with that, we will have continued stock growth.
Commodities will continue to become a key player.  The billions of dollars being produced will bring us out of one of the worse catostrophies in US history.  It will bring on an offset of inflation that will beset to become another problem the government will have to control.  We can use this to our advantage.  Oil, gold, platinum, palladium, silver, all these commodities will become more valuable.  We’ve already hit $1200 gold.  We still haven’t seen this record growth in the ‘useful’ metals.  I’m talking the commodities that are used to build things.  As the global economy continues to grow, we will see another surge of industry booms.  This means more demand for oil, more tools to be built with silver, and platinum and palladium being used to build more cars.  Don’t listen to the naysayers.  The dollar might be strengthening now but long-term commodities will become more valuable.
As we continue to get away from fossil fuels we will become more dependent our clean resources.  Natural gas will continue to get more popular.  We have stockpiles of natural gas.  Fractural drilling has brought on one of the largest stock piles of natural gas in the US.  We saw the prices hit rock-bottom in 2009.  Watch the natural gas stocks start moving up like oil has for the past 30 years.
Alternative energy will continue to prosper.  We are in no period to which we can reverse.  It’s not the 1980s where we will hit rock-bottom oil prices.
China is growing at a record pace.  It will need more oil.  Same as other growth counties.  As we use up the last stockpiles of oil we will need to adjust our demand for fossil fuels and move into alternative energies.  Look for wind power, solar power, geothermal energy, and nuclear energy to grow.  We are still figuring out the potential of each.  With Obama money you will see continued growth in all these alternative energies.  Climate change will furthur strengthen the cause for alternative energies.  Diversify.  Put money into good companies and watch your stocks grow as the economy improves.
Healthcare will again become a growing industry.  We have a bunch of boomers that have reached retirement age.  They will need healthcare, retirement centers, and bring another influx of necessary services to help the seniors.  We also have a new government funded health plan that will bring insurance to all the people.  Demand for generics will increase.  Look for major healthcare companies to find ways to make money in these areas.
As people begin working again look for retail to increase.  Look for major stores that will produce affordable goods.  Look to supermarket stocks such as Kroger to grow.  They produce affordable perfumes and other items that people would normally go to malls to buy.  They have diversified their inventory base to produce for affordability and the frugal consumer.  They are producing for the future where we will become a saver nation. Watch for major department stores such as Wal-Mart to continue to be key leaders in their industry.
The banking industry will continue to grow once again.  Banks have finally paid off their TARP money.  Small and medium size banks will consolidate to the bigger Wells-Fargo, Citigroup, JP Morgan, and Bank of America.  Major banks will become the defining financial companies to run our country.  Agree to disagree.  The government will make sure these financial companies stay in business to keep us running.
Prospering times are ahead.  We will have our normal corrections, but let it be known, we have reached the bottom of the economic cycle.  It might take a while to start moving up, but it’s time to position your investments for the future.  Now, let’s make some money!

Coure de houre err.. Coeur d’Alene Mines looking cheap

I got in CDE this morning at $20.60.  However, I changed up my strategy.  I know silver will be a big money maker but I don’t know short-term where it’s headed.  So I bought puts, that’s right, naked $20 puts at 55 cents.  Once it expires on Dec 19, I make some easy dough.  If that backfires, I end up owning the stock for $20 which is a discount of 60 cents.  It ended the day at $20.80 so it looks like my naked put is already doing well.

Last week the US dollar got weak with the economic reports of better unemployment rates and job growth.  I expect even with the better economy we will have to have a weaker dollar.  You can’t justify a strong dollar when the FED is producing billions of dollars to stimulate the economy.  Once of the gold guys stated that gold could up to $8,000.  I don’t expect that to happen but you never know.  This is the first president to break the deficit within three months.  It usually takes a president at one-term (4 years) to break the deficit.

CDE, Coeur d’Alene, released the third quarter earnings earlier this november.  The numbers were not what analysts expected and the stock plummeted to below $19.  Of course, gold and silver kept rising so the stock just had a temporary dip before breaking $23.  If you read the third quarter transcript, the CEO Dennis Wheeler stated they invested the company for $900 gold.  Gold is now over $1,100.  You can bet that their next quarter will be a smashing hit.  They have more mines coming into production than any other junior mining company.  They also are highly invested into silver which will rise with gold and bring up their revenues.

Long-term great trade!

Commodities Just Keep On Dropping

Will the hurting ever stop?  Silver stocks are falling, oil stocks are dropping, and all of the energy stocks are going down.  Its funny to see the financials actually moving up in this turmoil.  I do believe the commodities are due for an up-turn.  If you take a look at the silver, the prices have dropped below $13 an ounce.  This year it hit an high over $20 an ounce.  I’m hoping it starts moving up earlier than later.  Make my CDE move up, not down 🙂

No matter what happens in the presidential election there will be a place for uranium.  Nuclear energy will be the next strong point to fixing our energy problems.  Nuclear energy is clean and has many more safty measures than in the past to keep things safe.  Look for stocks like USU to go up.

Another material to start watching is steel.  These stocks have dropped over 20% within the week.  Termium (TX) has a forward PE of 3.5.  It’s the lowest I’ve seen for such a big company.  One thing that kept it dropping was the nationalization of the Sidor mine in Venezuela.  It dropped more when the sale negotiations with the president did not work out.  You can bet that this stock is close to its low and its time for it to start moving up again.

How Long Can It Go?

North American Palladium (PAL) is again hitting it’s low set 6 months ago and the same low in 2005 which is around $3.50.  Both times it stood in that ground for a month or two, then it sky-rocketted up to $9!  Tomorrow, if it is still around $3.50, I might go ahead and make my move and buy some more.   I’m running both on technical and fundamental research.  Technical in that the stock is again reaching its bottom, so its time to move up.  Fundamentally, this is a material that should be moving up with the inflationary concerns.  I do not think it can stay low for so long.

Couer d’Alene Mines (CDE) is also moving downward.  Silver is continuing its move down with gold.  Bleh, I will continue to hold onto my shares but if it goes down more I might justify it to get some more.  Commodity stocks move up and down quickly but if you are willing to play the same there is money to be made quickly also.  I do hope its bottoming out.  All the other silver stocks continue to move up.  I hope dilution does not continue to stop this stock!  What is management doing to this company!

Hot Deals when you least expect it!

You know the american car companies, ford and general motors, with their continuing debt and their gas guzzler cars making less and less sales.  Ford even sold their Land Rover and Jaguar line of cars to raise cash.  Who bought these two lines of cars?  TTM, Tata Motors, a fast growing company in India that manufactures small to medium-sized cars for the regular folks on the street.  I found out about the stock today, and it was at one of the lowest prices it has even been $9.03.  With the need for more MPGs and cheaper car lines, I see their car brand spreading across to europe and possibly america.  They are the number one selling brand in India and especially with oil they will hit a strong mark in the future.

I am so confident in this stock that I bought 550 shares at $9.03 for a total of $4966.50.  So here is my updated portfolio:

—— SUPER STOCK BLOG PORTFOLIO TRANSACTIONS ——

$4966.50 – Buy TTM for $9.03 for a total shares of 550

—————————————————————————–

———— SUPER STOCK BLOG PORTFOLIO ————-

TTM – 550 at $9.03 per share

CDE – 3,067 at $3.26 per share

PAL – 1,000 at $5.13 per share

—————————————————————————–

So far, my portfolio is in the negative, but I can wait these short-term bumps to make major bucks!

Pre-July 4th Stock Market Movement

What an odd day for the stock market.  There was a posted 72 point gain on the DOW, but from the looks up the stocks, it looked like a down day.  The commodities were all down in a day to which we saw continued job losses for a 6th month.  Oil continues to break record highs and there is the commodities that are supposed to be a hedge, but instead are going down some more.  Uranium stocks decreased, silver stocks decreased, and this happens before a national holiday.  I expect a big gain on monday for the commodities.  I feel there is still tons of shorting occurring in the market, and the hedge funds are making the most of their liquidity.  CDE continued to move lower to almost $2.50, but I think the long-term view is still the same and the more it drops, the better to start dollar cost averaging and making money in the long term.

Stocks to look at…

So, inflation has been increasing, silver prices have been increasing, silver stocks have been increasing, but CDE is still going down.  What gives? Shorts are still selling the stock and keeping it low.  CDE is still very undervalued.  It was undervalue at $5, so at the current price of $2.90, it is considered a bargain.  As long as your time-frame is for at least one year, you will see a sizable gain in this stock.

Another mineral that might be worth investing in is aluminum.  It’s cheaper to produce than steel and it has many of the qualities that are needed in the material.  As steel prices rise,  you will see more and more companies find substitutes for steel and aluminum will be the first choice to come to hand.  To play this stock, you can go with the biggest aluminum producer, Alcoa (AA) or play with a new aluminum company from china, ACH.  Both are undervalued and will go up as inflation continues to increase and the price of resources move up.

If you have been looking at James River Coal Company (JRCC), you would notice that the stock has gone from $3 to $60 within the year!  That’s more than a twenty-fold increase within six months.  I’d wish I knew there would be such a rush for coal.  It’s odd because coal is very plentiful in the world.  I would need to do more research to find out why the price has increased so much, but other than the price of oil dragging up the prices to transport coal, it’s not a resource that is hard to get.  Silver, palladium, and platinum have a finite amount in this world and there price is justified to the supply.

Aluminum appears to be the next ‘coal stock’.  I see it being the next super stock that will increase like coal to ridiculous levels.  Although plentiful, it has the same supplies that can make it have that crazy increase.  Here is a link on aluminum from Seeking Alpha: Aluminum Prices Are Expected to Soar 30%.

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