About two months ago, I showed you this chart: It showed front-month oil future rebounding in a solid uptrend, but heading for a ceiling. I warned that oil producers could see a short-term pop, but that it would be temporary. I also said that higher oil prices would positively affect quarterly earnings reports. I was mostly right… Take a look. This first snapshot is of Exxon Mobil’s (NYSE: XOM) quarterly income: This second snapshot is of ConocoPhillips’ (NYSE: COP) income: Both showed substantial growth in gross profits quarter over quarter. Year over year, XOM’s… Read More

About two months ago, I showed you this chart: It showed front-month oil future rebounding in a solid uptrend, but heading for a ceiling. I warned that oil producers could see a short-term pop, but that it would be temporary. I also said that higher oil prices would positively affect quarterly earnings reports. I was mostly right… Take a look. This first snapshot is of Exxon Mobil’s (NYSE: XOM) quarterly income: This second snapshot is of ConocoPhillips’ (NYSE: COP) income: Both showed substantial growth in gross profits quarter over quarter. Year over year, XOM’s revenues grew 18.45% in the quarter ending June 30, while COP revenues grew 11.17%. COP released earnings on July 28 and XOM released earnings three days later. Since the earnings release, stock prices have climbed about 4.6% and 2.3% respectively, with some volatility. But I wasn’t entirely right in my article… You see, oil prices did some tricky dance moves since early June. This chart shows the same trendlines from the ones I included in my chart back in early June. I’ve marked when my article hit the airwaves with a blue circle. In that article,… Read More

Johnson Controls, Inc. (NYSE: JCI) is headquartered in my backyard: Milwaukee, Wisconsin. #-ad_banner-#It’s a company focused heavily on efficiency, and it’s got its finger on the pulse of what the corporate world wants. And it turns out, the corporate world wants what JCI is selling. In its latest Energy Efficiency Indicator survey, JCI found that 72% of the 1,243 participants said their companies are anticipating increasing their investment in energy efficiency and renewable energy in the next twelve months. That’s a massive number, and it’s also a massive increase compared to just four years ago. In 2013, JCI’s Energy Efficiency… Read More

Johnson Controls, Inc. (NYSE: JCI) is headquartered in my backyard: Milwaukee, Wisconsin. #-ad_banner-#It’s a company focused heavily on efficiency, and it’s got its finger on the pulse of what the corporate world wants. And it turns out, the corporate world wants what JCI is selling. In its latest Energy Efficiency Indicator survey, JCI found that 72% of the 1,243 participants said their companies are anticipating increasing their investment in energy efficiency and renewable energy in the next twelve months. That’s a massive number, and it’s also a massive increase compared to just four years ago. In 2013, JCI’s Energy Efficiency Indicator survey found that only 42% of those surveyed had planned to increase investment. And take a look at this map: Emerging markets are going to be investing heavily in efficiency and renewable energy, but developed economies aren’t sitting on the sidelines, either. I think the efficiency sectors is going to be an interesting area over the next couple of years, and there are several different areas that could be of note to investors. According to the survey, heating, ventilation and air conditioning (HVAC) improvements were the most popular improvement over the past 12 months, followed by energy-focused… Read More

In today’s market, the energy sector is an enigma. On the one hand, oil and gas prices have rallied mightily since hitting historic lows in January — a strong data point for those who believe the multi-year energy cycle has turned northward. On the other hand, energy prices are down more than 10% since early June, providing fodder for those who argue that energy will remain in the doldrums a while longer.  #-ad_banner-#The ambiguity derives in part from the economic backdrop. In the United States, the world’s largest consumer of oil and gas, the economy is growing steadily though slowly,… Read More

In today’s market, the energy sector is an enigma. On the one hand, oil and gas prices have rallied mightily since hitting historic lows in January — a strong data point for those who believe the multi-year energy cycle has turned northward. On the other hand, energy prices are down more than 10% since early June, providing fodder for those who argue that energy will remain in the doldrums a while longer.  #-ad_banner-#The ambiguity derives in part from the economic backdrop. In the United States, the world’s largest consumer of oil and gas, the economy is growing steadily though slowly, with employment rising and personal incomes starting to inch up. That’s a bullish sign for consumption of oil and gas. But around the world, economic indicators are flashing yellow, not green. China, Brazil, Japan, Europe? Don’t look for strong demand growth there. And the UK’s shocking exit from the European Union has only made analysts more jittery. But economic factors explain only part of what drives energy prices — and the related, but not identical, earnings of energy companies. As with any commodity, energy prices tend to move in cycles that are driven not only by demand but by supply. Read More

It’s been an exciting couple of weeks.  As recently discussed, the resources world turned topsy-turvy in the wake of the “leave” vote in the U.K. Brexit referendum. Gold soared (and gold stocks too), and almost everything else tanked.  #-ad_banner-# And since then, the situation has grown all the more interesting.  All indications are that the initial panic over the Brexit vote was largely overdone. The Dow Jones Industrial Average has recovered about 80% of the losses it suffered in the two-day panic following the Brexit news.  That rebound has extended to most of the commodities sector. This is a development… Read More

It’s been an exciting couple of weeks.  As recently discussed, the resources world turned topsy-turvy in the wake of the “leave” vote in the U.K. Brexit referendum. Gold soared (and gold stocks too), and almost everything else tanked.  #-ad_banner-# And since then, the situation has grown all the more interesting.  All indications are that the initial panic over the Brexit vote was largely overdone. The Dow Jones Industrial Average has recovered about 80% of the losses it suffered in the two-day panic following the Brexit news.  That rebound has extended to most of the commodities sector. This is a development I thought we’d see. Investments like oil and copper have overcome investor fears and are staging a strong bounce off post-Brexit lows.  Copper, for example, had plunged as low as $2.07 per pound on the morning of June 24. But the metal has stormed back more than 7% since then, currently trading at $2.22 per pound as I write.  Copper is now trading at its highest level in nearly two months That’s a strong sign that fears about lost demand in the face of the Brexit vote were overdone. And it makes sense, given that the actual process of the… Read More

The news out of the United Kingdom rocked global markets. In an historic referendum vote, citizens of the U.K. narrowly voted for a “Brexit” — a British exit from the European Union. Since joining the European Union in 1973, a fair number of Britons have been skeptical of the governing body. British attitudes toward European unity have been… complicated, to say the least. Winston Churchill advocated for “a kind of United States of Europe” during a speech in Zurich in 1946, while simultaneously setting the precedent for an arm’s length relationship with the continent throughout his career. Read More

The news out of the United Kingdom rocked global markets. In an historic referendum vote, citizens of the U.K. narrowly voted for a “Brexit” — a British exit from the European Union. Since joining the European Union in 1973, a fair number of Britons have been skeptical of the governing body. British attitudes toward European unity have been… complicated, to say the least. Winston Churchill advocated for “a kind of United States of Europe” during a speech in Zurich in 1946, while simultaneously setting the precedent for an arm’s length relationship with the continent throughout his career. #-ad_banner-#Now that the votes are cast, questions remain about what this will mean for trade, immigration, travel and a host of other issues. What is certain right now, however, is that the market is treating this development in a negative light. On Friday, the FTSE 100 (the main British stock index) closed down about 3.15%, while its currency (the pound) fell to levels not seen since 1985. Meanwhile, European exchanges fared even worse. The German DAX was down 6.8%, the French CAC 40 was down 8%… Even the Japanese Nikkei Index was down nearly… Read More

In my day job as a geologist, I’ve been fortunate to be involved with a number of resource ventures over the years. I spend a lot of time in the wilderness looking for big mineral deposits and oil and gas fields. The thing is, most geologists are wildly optimistic — almost romantically so. They’re dreamers, and the idea of a big find keeps them going. But as an analyst, I know that in order to make truly outsized gains in this sector, you need to be selective. #-ad_banner-#The junior resource business holds some of the greatest potential… Read More

In my day job as a geologist, I’ve been fortunate to be involved with a number of resource ventures over the years. I spend a lot of time in the wilderness looking for big mineral deposits and oil and gas fields. The thing is, most geologists are wildly optimistic — almost romantically so. They’re dreamers, and the idea of a big find keeps them going. But as an analyst, I know that in order to make truly outsized gains in this sector, you need to be selective. #-ad_banner-#The junior resource business holds some of the greatest potential for wealth creation in any industry on the planet. Shareholders of small firms can easily reap hundreds or even thousands of percent returns in the event of a successful discovery by these companies. For example, October 2014 was an historic month for the natural resources sector. We witnessed an incredible event that underscored just how powerful wealth creation can be when it comes to finding, developing and producing commodities. I’m talking about the birth of a new mine. The operation in question is the Eleonore gold mine in… Read More

West Texas Intermediate (WTI) crude oil closed above $50 a barrel for the first time in seven months on June 7. Price movements have created a deep “V” shape over the past year. WTI’s price per barrel fell almost 39.5% between November 2015 and lows in January 2016. #-ad_banner-#But since then, oil prices have won nearly every cent back. That means oil prices have climbed more than 59.3% since mid-January. This swift rise may have a positive impact over the coming quarter for oil companies, and now might be a good time to capture some short-term gains. Let… Read More

West Texas Intermediate (WTI) crude oil closed above $50 a barrel for the first time in seven months on June 7. Price movements have created a deep “V” shape over the past year. WTI’s price per barrel fell almost 39.5% between November 2015 and lows in January 2016. #-ad_banner-#But since then, oil prices have won nearly every cent back. That means oil prices have climbed more than 59.3% since mid-January. This swift rise may have a positive impact over the coming quarter for oil companies, and now might be a good time to capture some short-term gains. Let me explain. Back in April, Exxon Mobil (NYSE: XOM) reported its smallest profit since 1999, with only $1.8 billion in profits for the first quarter of 2016. That’s no surprise looking at the chart above. After falling by more than a third, oil prices started swinging madly in the first quarter of 2016, ending even by the end of March. Business Insider reported at the time: On Tuesday, Standard & Poor’s downgraded Exxon’s rating to “AA+” from “AAA,” stripping the company of its top rating for the first time since the Great Depression. S&P was concerned that Exxon’s debt, acquired… Read More

Earlier this week, news hit the wires that billionaire fund manager Georg Soros unloaded 37% of his stock investments in favor of gold… #-ad_banner-#And not just one gold investment, but two major shifts into gold. Bloomberg reports: Soros also bought bullish options contracts on 1.05 million shares in the SPDR Gold Trust, which tracks the price of bullion. What’s more, the fund took a stake in the world’s biggest producer of the metal, Barrick Gold Corp., worth $264 million at the end of March, the filing showed. Soros acquired 1.7 percent of Barrick, making it the fund’s biggest U.S.-listed holding. Read More

Earlier this week, news hit the wires that billionaire fund manager Georg Soros unloaded 37% of his stock investments in favor of gold… #-ad_banner-#And not just one gold investment, but two major shifts into gold. Bloomberg reports: Soros also bought bullish options contracts on 1.05 million shares in the SPDR Gold Trust, which tracks the price of bullion. What’s more, the fund took a stake in the world’s biggest producer of the metal, Barrick Gold Corp., worth $264 million at the end of March, the filing showed. Soros acquired 1.7 percent of Barrick, making it the fund’s biggest U.S.-listed holding. Well, first things first. This news comes from a mandatory filing of form 13F. Money managers that oversee more than $100 million have to file the form within 45 days of each quarter’s end. That means this news could be more than four months old. So let’s go back in in time a bit and see what was happening four months ago. This is a six-month chart of the S&P 500, the SPDR Gold Trust (NYSE: GLD) and Barrick Gold (NYSE: ABX). Almost four months ago exactly, ABX shares started climbing in value. On January 19,… Read More

We got some major news in the metals space last recently. Mining giant Rio Tinto (NYSE: RIO) just gave the OK for one of the first large-scale mining investments in years: a $5.3 billion development project on its existing Oyu Tolgoi mine in Mongolia. According to The Wall Street Journal, Rio’s project will take current open-pit operations at the mine (which primarily produces copper) underground. This should more than double production to 500,000 metric tons a year by 2027.       Oyu Tolgoi’s underground ore offers a good grade. And… Read More

We got some major news in the metals space last recently. Mining giant Rio Tinto (NYSE: RIO) just gave the OK for one of the first large-scale mining investments in years: a $5.3 billion development project on its existing Oyu Tolgoi mine in Mongolia. According to The Wall Street Journal, Rio’s project will take current open-pit operations at the mine (which primarily produces copper) underground. This should more than double production to 500,000 metric tons a year by 2027.       Oyu Tolgoi’s underground ore offers a good grade. And the mine’s costs are already phenomenally low: Turquoise Hill reported first-quarter costs of 2 cents per pound of copper, helped by the gold produced as a byproduct at the mine. Including maintenance investment, the all-in costs were $0.62 per pound, compared with a spot price of about $2.20. #-ad_banner-#This is significant. After taking it on the chin after the commodity “super cycle” ended, many major mining firms ceased investing in big new projects. Now that prices for everything from copper to iron ore are picking up, it could be a sign that miners feel confident the rally will… Read More

The Dow Jones Industrial Average traded above 18,000 last week. The S&P 500, meanwhile, is up more than 200% since the financial crisis. Both broad indices are trading above their historical valuations. Many experts believe the upside in markets is limited at this point. So what’s left to buy that you can reasonably call “cheap”? Where is there still room to run? #-ad_banner-#There’s a simple answer: commodities and natural resource stocks. In yesterday’s StreetAuthority article, we featured the first part of an exclusive interview between myself and commodities expert Dave Forest,… Read More

The Dow Jones Industrial Average traded above 18,000 last week. The S&P 500, meanwhile, is up more than 200% since the financial crisis. Both broad indices are trading above their historical valuations. Many experts believe the upside in markets is limited at this point. So what’s left to buy that you can reasonably call “cheap”? Where is there still room to run? #-ad_banner-#There’s a simple answer: commodities and natural resource stocks. In yesterday’s StreetAuthority article, we featured the first part of an exclusive interview between myself and commodities expert Dave Forest, who serves as Chief Investment Strategist of Scarcity & Real Wealth, StreetAuthority’s premium advisory devoted to the best resource investments the world has to offer. In the first part of our interview, Dave talked about his background in geology, shared some anecdotes on his world travels, and talked about why now may be the time for investors to dip their toe into commodities. Here is the second part of our interview, which goes into more detail with his thoughts on the commodities markets… Brad: After a down year in 2015, the… Read More