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  • Catalytic Events Move Energy Stocks: Jocelyn August
    Catalytic Events Move Energy Stocks: Jocelyn August

    Source: George S. Mack of The Energy Report (5/3/12)

    http://www.theenergyreport.com/pub/na/13269

    While high-volume stocks often seem to move on market momentum alone, small- and midcaps usually rise and fall in tandem with their own newsflow. Jocelyn August of Sagient Research Systems has found this to be true in the drug and medical device fields, on which the firm has long been focused, but it's just as applicable to the natural resources industries, including oil and gas. In this exclusive interview with The Energy Report, August discusses which looming catalysts may send a select group of energy stocks higher-or lower.

    The Energy Report: Jocelyn, you are following catalysts that affect resource stocks. What should energy resource investors be watching for?

    Jocelyn August: We have done an impact study for the natural resource sector and have identified many large-impact events in the energy sector. Similar to drug and device development, you can follow a timeline for the development of an energy resource project from the planning stages to exploration. The catalysts are very similar across these sectors. Companies in both spaces must test their products (energy companies conduct preliminary economic assessments and feasibility studies), report completions (of drilling programs, for example) and announce results. Those types of events significantly impact share prices for these companies. We recently completed a Q2/12 Outlook Report for natural resources, in which we discussed three upcoming energy catalysts for the second quarter.

    TER: Are development timelines for oil and gas wells shorter than those for drugs?

    JA: It depends. Location and permitting can create delays. But in many cases, an energy company can develop a well pretty quickly, within a couple of years, and then move on to different wells. Identifying different locations to tap before initiating the first drilling campaign in an area can speed the process along.

    TER: What are some companies with major news on the horizon?

    JA: In the energy sector, one company we think is particularly interesting is McMoRan Exploration Co. (MMR:NYSE). This company has been in the news a lot because of its Davy Jones No. 1 well. Last week, it announced another development milestone for that well. The Davy Jones well has produced several large moves for McMoRan over the course of its development, particularly because it is a smaller-cap company. But it's also because Davy Jones is one of the first ultra-deep gas wells in the Gulf of Mexico. Therefore, this project is an example for other companies doing similar development, and it's been particularly interesting to watch. On April 9, McMoRan reported an update on the well. It had reached technical completion, and the well engineering had been completed for the start of commercial production, which it had been predicting for Q212.

    TER: McMoRan's stock went down 9% after the announcement. Why?

    JA: The announcement included negative news, which the company elaborated on in a subsequent conference call. In March, McMoRan announced a blockage in the well that prevented it from obtaining a measurable flow rate. The April 9 announcement reported that the company was unable to clear this blockage. Then, in their April 17 Q1 earnings call, the company said it has decided to workover the well in order to increase the size of the hole, instead of just trying to clear the blockage. McMoRan did get a permit for this workover, so once that is completed, it should have a measurable flow rate. But it's still hard for the company to predict how much the well is going to be producing and what the timeline will be for commercial production. We think commercial production is probably not going to happen in Q2/12. If it is, it will be late in Q2/12 or maybe early Q3/12. It's been a particularly interesting company to watch because it has had so many market-moving events over the last couple of years with regard to this well.

    TER: What other companies are catching your interest?

    JA: We are particularly interested in longer-term catalysts. ATP Oil and Gas Corp. (ATPG:NASDAQ) is going to begin exploratory drilling on the Shimshon license area in offshore Israel. It's an interesting company because it has been focusing more on the Gulf of Mexico, but after all of the upheaval in 2010 following the BP Plc (BP:NYSE; BP:LSE) spill, I think ATP was looking to diversify into some other areas. So it acquired this Shimshon license. It will be very interesting to see what it finds in terms of its exploration because the license is located within the Levantine, which is turning out to be a very rich hydrocarbon area. Noble Energy Inc. (NBL:NYSE) also has a couple of different prospects in that area that may achieve production this year, with pretty large potential.

    TER: Any other hot spots on your radar?

    JA: Ivanhoe Energy Inc. (IE:TSX; IVAN:NASDAQ) expects to complete a well and release some test results for an exploration program in the Nyalga Basin in Mongolia. The first exploration program the company drilled and tested didn't encounter enough oil, so it moved it to a different location in Mongolia to test another well. We'll see what it finds in that area.

    TER: Thank you very much.

    JA: Thank you for having me.

    Jocelyn August is currently the senior analyst and product manager for CatalystTracker, a proprietary research product focused on identifying and analyzing the events that will materially impact publicly traded companies. In her five years at Sagient, she has developed expertise in the highly event-driven medical device and diagnostic sector. In addition, she spearheaded the development of a new Natural Resource Industry product within the CatalystTracker product line with the publication of the Catalyst Impact Study: Natural Resources Sector. Outside of Sagient, August was named the director of communications for the San Diego Professional Chapter of MBA Women International. Jocelyn received a Masters in Business Administration from the Rady School of Management at University of California, San Diego, and graduated cum laude from the University of California, San Diego, with a Bachelor of Arts in Sociology.

    Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

    DISCLOSURE:

    1) George S. Mack of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.

    2) The following companies mentioned in the interview are sponsors of The Energy Report: None. Streetwise Reports does not accept stock in exchange for services.

    3) Jocelyn August: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this story.

    Streetwise - The Energy Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

    From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110

    Petaluma, CA 94952

    Tel.: (707) 981-8204

    Fax: (707) 981-8998

    Email: jluther@streetwisereports.com

    May 07 6:48 PM | Link | Comment!
  • An Oil And Gas Play-by-Play: Chen Lin
    An Oil and Gas Play-by-Play: Chen Lin

    Source: The Energy Report Staff (5/3/12)

    http://www.theenergyreport.com/pub/na/13268

    Chen Lin isn't one for doom-and-gloom prophecies, nor is he particularly interested in energy-related political squabbles. As the title suggests, the publisher of What Is Chen Buying/Selling? is first and foremost a trader, and he's booked the profits to prove it. In this exclusive interview with The Energy Report, the ever practical Lin discusses where to look, when to buy and which names will have him coming back for more later this year.

    The Energy Report: Chen, we last spoke in February. What's new in energy markets since then?

    Chen Lin: The oil price has mildly declined since then, despite the war between Sudan and newly independent South Sudan that interrupted the oil supplies. In general, oil prices tend to go up during the spring and summer. This year, however, the price is telling a different story. A lot of traders are trying to front-run the trend, and recent problems from the E.U. are creating volatility. Personally, I believe $70-80/barrel (bbl) oil is fair. At this price, most producers are very profitable and gasoline prices would be acceptable to most consumers. The high volatility of the oil price created a lot of booms and busts in the industry. As a trader, however, this created excellent opportunities to buy low and sell high.

    TER: What about natural gas?

    CL: Natural gas in North America took a big dive; it dropped below $2/thousand cubic feet (Mcf). Many North American natural gas producers are leveraged plays, and that can create some unfortunate situations. At the current price, they may have trouble paying back bank loans. Banks may even start to pull credit lines. This could create chaos in the next 6-12 months. As an investor, I am waiting for market forces to take out some weaker players. That could create good buying opportunities down the road.

    TER: In other words, a market that punishes companies can reward traders. What is your investment style in this landscape?

    CL: I focus on different sectors and I'll overweight an undervalued sector at a given time. For example, in Q4/11 I saw that the energy sector was greatly undervalued, and I was buying energy stocks aggressively when we last spoke. Since then, I have been busy booking profits in energy. Now I'm starting to look into the precious metal space, which has been hit very hard in the past few months. I sold New Zealand Energy Corp. (NZ:TSX.V; NZERF:OTCQX), TransGlobe Energy Corp. (TGL:TSX; TGA:NASDAQ) and Ithaca Energy Inc. (IAE:TSX) and I reduced my position in PetroBakken Energy Ltd. (PBN:TSX) and sold my shares in its sister company, Petrobank Energy & Resources Ltd. (PBG:TSX), for nice profits.

    TER: What energy positions are you still holding? Who is the mainstay?

    CL: My personal largest position is still Mart Resources Inc. (MMT:TSX.V). I just went to the HiAlpha conference, where its CEO, Wade Cherwayko, was presenting. He told investors that Mart has over $60 million ($60M) in the bank and each month it is generating $15M in after-tax income (about CA$50/share in annual income). The company is about to pay dividends and is discussing dividend vs. share buyback. In the meantime, it is very close to announcing a deal with Royal Dutch Shell Plc (RDS.A:NYSE; RDS.B:NYSE) to build a pipeline and triple its current production in a year. The investors I met at the conference were very excited about Mart's future, both near term and long term.

    Mart just filed its annual report. It earned $71.8M for 2011, or CA$21.4/share. Its cashflow was $144.1M for 2011, or CA$42.9/share. Field was pumping at about 7 thousand barrels per day (7 Mbpd); Mart got 71% or 4,941 bpd because of cost recovery. This year, Brent was over $120/bbl for most of the time, and Mart is getting a premium to Brent, at least $125/bbl. It's pumping at about 15 Mbpd, according to its recent presentation. Using these factors, it is easy to see that Mart is earning about CA$50/share on an annual basis, with cashflow at about CA$1/share. Next year, when Mart increases production to 30 Mbbl, 45 Mbbl and even higher, you can expect the earnings to double and triple again. Mart's market valuation will be higher than the current stock price.

    TER: What are some other long-haul names?

    CL: My next largest position is still Pan Orient Energy Corp. (POE:TSX.V). The stock was hit hard recently on the mixed test results from its L53D well. Most analyst reports mentioned both positives and negatives in the announcement, but investors tend to sell first and ask questions later. This tells us how nervous investors were. Also, most funds exited the company at the end of last year and investors are generally not very risk-tolerant. Last year, I was telling everyone to load up on the stock. The company made a nice discovery, but the stock didn't show much appreciation. The company is drilling very high-impact wells in Indonesia after four or five years of preparations, but the market is completely ignoring it. It has no debt and trades at less than two times its cashflow, with blue sky opportunities in Indonesia. Currently, the stock offers a very good entry point for those who are willing to take limited risks.

    I am still holding Porto Energy Corp. (PEC:TSX.V). It is about to start drilling the high-impact presalt well around the mid year. Considering the stock is trading at a huge discount in light of its recently announced deals, I like the risk-reward ratio here.

    I am also holding Prophecy Coal Corp. (PCY:TSX; PRPCF:OTCQX; 1P2:FSE) and Prophecy Platinum Corp. (NKL:TSX.V; PNIKD:OTCPK; P94P:FSE). Both stocks have been down sharply lately, like most junior mining stocks. Insiders participated in the recent private placement at much higher rates than the current stock price. I believe both stocks offer good values.

    TER: Thanks for the company rundown. What's your reading on current market movements, and how should investors play it?

    CL: In general, we have recently seen sharp pullbacks in resource stocks. The market is suffering greatly from lack of liquidity. That offers good opportunities for long-term, value-oriented investors. I am mostly holding companies with good balance sheets and cashflow. I intend to buy stocks on the cheap later this year.

    TER: Thanks for catching up with us today, Chen.

    CL: My pleasure.

    Chen Lin writes the popular stock newsletter What Is Chen Buying? What Is Chen Selling?, published and distributed by Taylor Hard Money Advisors, Inc. Lin is a value investor who focuses on deeply undervalued stocks or sectors that are ignored by the market. He also demonstrates excellent market timing due to his technical analysis.

    Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

    DISCLOSURE:

    1) The following companies mentioned in the interview are sponsors of The Energy Report: Mart Resources Inc., New Zealand Energy Corp., Pan Orient Energy Corp., Prophecy Coal Corp., Prophecy Platinum Corp., Royal Dutch Shell Plc and Transglobe Energy Corp. Streetwise Reports does not accept stock in exchange for services.

    2) Chen Lin: I personally and/or my family own shares of the following companies mentioned in this interview: All. I personally and/or my family am paid by the following companies mentioned in this interview: None, with the exception of Porto Energy, from which Chen Lin received shares to introduce it to hedge funds in 2010. The company was not publicly traded at that time. I was not paid by Streetwise Reports for participating in this story.

    Streetwise - The Energy Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

    From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110

    Petaluma, CA 94952

    Tel.: (707) 981-8204

    Fax: (707) 981-8998

    Email: jluther@streetwisereports.com

    May 07 6:46 PM | Link | Comment!
  • Potash Stocks Offer Profits Ahead Of Summer Doldrums: Corey Dias
    Potash Stocks Offer Profits Ahead of Summer Doldrums: Corey Dias

    Source: Zig Lambo of The Energy Report (5/1/12)

    http://www.theenergyreport.com/pub/na/13235

    China and India have returned to the potash markets, stabilizing current prices as long-term demand continues to grow. In this exclusive interview with The Energy Report, Corey Dias, who covers the industry for MGI Securities, brings us up to date on industry developments and shares why Brazil-based companies offer huge potential for prudent investors.

    The Energy Report: Have there been any significant developments in the potash industry since you last spoke with us in January?

    Corey Dias: The biggest change has been that China has actually come back to the market and is buying potash. Earlier this year, neither China nor India were buying, hoping to see a price decline. China has since agreed to purchase about 550,000 tons (t) at $470/t from Israeli potash company ICL Fertilizers (ICL:TASE). Canpotex Ltd. (private) signed a similar-sized agreement with China's Sinofert Holdings Ltd. (297:SEHK) for Q2/12 delivery priced at $470/t. Finally, the Belarusian Potash Company (BPC), the other major potash consortium in the business, signed an agreement with Sinochem International Ltd. (600500:SSE) and CNAMPGC Shanghai Corp. (private) for a price of $470/t. Those buys are underpinning the price as it stands today, slightly below the $500/t spot. It seemed China wanted to hold out for better pricing, but it was inevitable that it would have to come back to the market. India will likely have to do the same soon.

    TER: Have your views of the industry's potential changed as a result?

    CD: No, nothing has fundamentally changed. This just reinforces my view that fertilizers remain essential to the global agriculture market in order to facilitate growth, improve yields and provide food for burgeoning middle classes throughout the world.

    TER: Do you see anything on the horizon that might have a major effect on the market or the prices, either positively or negatively?

    CD: I expect some short-term impacts. Both the U.S. and Europe are obviously still facing economic headwinds, which can impact the fertilizer-buying patterns of those regions. That said, I am still bullish on the industry's longer-term prospects. At the end of the day, populations will continue to grow, as will the middle class. Diets will continue to change, and therefore increased fertilizer use is inevitable. I expect the market opportunity for fertilizers such as potash to remain attractive going forward. There still seems to be a lot of positive sentiment out there.

    TER: Do you expect any major changes in the number of companies entering into the business in the next 5-10 years?

    CD: There will probably be a number of new entrants into the marketplace, especially given how topical potash is at the moment. However, as these projects attempt to advance towards production, many will fall by the wayside due to the difficulty of securing financing for these multibillion-dollar projects. I would assume that the first step of financing a major potash project would involve signing a long-term offtake agreement with a third party looking to secure supply in exchange for an upfront equity investment in a project. This offtake agreement, in turn, could be used as a form of collateral for project debt. Furthermore, not all of the output from these potash projects is going to be necessary from a demand point of view. A number of potash producers have new Brownfield projects that could help meet a significant portion of the expected increased demand for potash. That may not leave a lot of room for new entrants.

    TER: Do you expect bigger companies to take over smaller projects that can't finance themselves?

    CD: I would think so, assuming that the smaller projects provide some kind of strategic value to the acquirer. That said, many large producers already have an inventory of deposits or projects they can use to expand production without seeking other acquisitions.

    TER: Is location the primary factor in determining which projects are "strategic?"

    CD: Yes. If one is operating a potash mine in Brazil, one has an internal market that could absorb one's entire potash output. A company that wants to enter the potash market in a cost-effective manner would certainly aim to buy an asset in Brazil in order to benefit from the significant transportation price advantage expected to be enjoyed by the local potash producers. Moreover, Brazil imports over 90% of its current potash needs and, therefore, the Brazilian government is encouraging local projects to be built in order for the country to reach fertilizer independence by 2020.

    TER: How have the major players performed during the first quarter of this year?

    CD: Mosaic reported significantly lower sales numbers year over year, as did Potash Corp. This is unsurprising, given that China and India were not participating. Unsurprisingly, both Potash Corp. (POT:TSX; POT:NYSE) and The Mosaic Company (MOS:NYSE) have reduced production twice recently. In Eastern Europe, Uralkali (URKA:RTS; URKA:MCX; URKA:LSE) also reduced its production forecast. These companies are likely reducing production to preserve the current $500/t spot price and will probably continue to do so in order to avoid another price collapse similar to what took place a few years ago. Remember that Potash Corp., Uralkali and Mosaic are each tied to regional consortiums-Canpotex and BPC-and probably represent between 60% and 70% of the supply side of the market, so their actions are quite influential with regard to the rest of the market.

    TER: What's been going on with the smaller companies you cover in the last three months?

    CD: The only junior potash company I was covering when we first spoke was Passport Potash Inc. (PPI:TSX.V; PPRTF:OTCQX). Since then I've added five other names. Passport released an NI 43-101 resource estimate for its Holbrook Basin potash deposit, which officially confirmed the existence of potash on its property. While the deposit is relatively low-grade when compared to Saskatchewan deposits, it is also quite shallow, which lends itself to conventional mining methods. This is the first of many milestones that will move the Passport story forward. I expect more and more positive news to come from the company in the next few months, including the release of a Preliminary Economic Assessment (PEA) by the end of 2012 that should provide a boost to the stock price.

    Karnalyte Resources Inc. (KRN:TSX) had to provide clarification to the Alberta Securities Commission over a filing it made related to its updated technical report before Christmas. There was supposed to be an equity financing around the time of the report release, which subsequently didn't take place due to delays related to the technical report. In the absence of clear information with regard to the delay, the market assumed the worst, so the stock price started to slide. Fortunately, the updated technical report was finally released at the end of March and, in fact, some of the numbers were an improvement over the previous technical report.

    We still really like Karnalyte. The fact that it is planning to go into production in 2014 - ahead of a number of its peers - puts it in a great position to attract strategic investors interested in an offtake agreement which, in turn, could facilitate debt financing for plant construction.

    CD: I also cover Western Potash Corp. (WPX:TSX.V). Western has one of the largest recoverable potash resources in the junior potash developer universe, and three other companies with deposits of similar size in Saskatchewan have been bought by larger entities such as BHP Billiton and K+S Aktiengesellschaft. This could make Western an acquisition target. The Company is currently in discussions with overseas potash buyers with regard to securing an offtake agreement. If Western is successful, the effect on the stock price would be extremely positive.

    TER: How about Rio Verde Minerals Development Corp. (RVD:TSX)?

    CD: I visited the Company's assets in Brazil a couple of weeks ago. It's a very interesting company aiming to produce both phosphate and potash. In the short term, the Company's first phosphate project is expected to commence production in Q113, thereby providing some cash flow to somewhat mitigate share dilution as it moves its first potash project forward. The important thing about Rio Verde is that it's operating in a market that has significant potash demand with very little domestic supply. The only potash mine currently operating in Brazil is run by Vale S.A. (VALE:NYSE) and produces less than one million tons a year (Mt/y). Demand for potash in Brazil in 2011 was over 7 Mt/y. So there's a significant gap that needs to be filled. In addition, shipping from North America to the Brazilian fertilizer markets adds another $150-200/t in costs. A domestic producer could clearly save buyers a lot of money and improve its own the bottom line.

    TER: Could Brazil be the next China or India in terms of potash demand?

    CD: Brazil is already bigger than India when it comes to potash demand, and not far behind China. Its combination of fertilizer-intensive crops, low fertilizer application rates and little domestic potash supply makes it an ideal market for potash suppliers. Moreover, Brazil probably has the highest amount of available arable land in the world and the water necessary to irrigate it, which means that it has an opportunity to become an even greater agricultural powerhouse.

    TER: What about Encanto Potash Corp. (EPO:TSX.V)?

    CD: Encanto is another appealing company. It's an interesting potash play because it involves a First Nations group called the Muskowekwan. Encanto has increased the size of its land package by more than threefold recently, which resulted in an increased potash resource estimate announced in an updated report released in March. The Company has two memorandums of understanding (MOUs) signed with other First Nations groups within Saskatchewan, which means that it could potentially replicate its Muskowekwan junior venture (JV) with these other two groups. That could make the company significantly larger than it is today. Encanto's PEA states that it is aiming to produce 2.5 Mt/y and has alluded to the potential of doubling that output, based solely on its Muskowekwan JV. Output could be significantly higher should either or both of Encanto's MOUs be successful.

    TER: Looking at the projected price-to-earnings ratios on smaller companies that are planning to be in production in the next two to five years, it seems the markets are not giving them enough credit at this point. Are investors just waiting to see whether things turn out as expected?

    CD: As we discussed earlier, not all of these potash projects will reach the production stage. So the market is taking a wait-and-see approach until project financing is secured and construction and production actually starts. Right now the companies basically trade based on the milestones that they've reached. A company will start with an NI 43-101 resource estimate and then it will perform an economic analysis on the project in order to determine the project's viability, whether it's a PEA or a prefeasibility study (NYSE:PFS). Even when an economic assessment is completed, the project will still have to be constructed. At that point, the ability to finance the cost of building a production plant becomes a big question.

    TER: You just initiated coverage on March 2nd on Verde Potash (NPK:TSX.V). What's going on with that one?

    CD: Verde is another junior potash developer with assets in Brazil. The company plans to produce conventional potash using glauconite, which is a green rock that could be found starting at surface on Verde's property. The company is planning to use a method called the Cambridge process, which was developed as a collaboration between Verde and a professor at the University of Cambridge in the U.K. The company recently released a positive PEA and expects to begin production in 2015, which is still ahead of many other junior developers. Obviously, that should provide Verde with an early-mover advantage in a country that is a major producer of fertilizer-intensive crops and that has very little domestic potash production. Verde looks to have a great opportunity to become one of the major players in the potash space.

    TER: Do you expect Verde to have little difficulty financing its project?

    CD: I think that would be the case, because the Brazilian government is very interested in becoming fertilizer-independent by 2020. This goal is even more poignant given that, in 2011, Brazil imported 92% of its potash requirements. To this end, the government has lined up lenders or partners who would be willing to help fund the production of these projects.

    TER: What kind of market performance do you expect from these stocks as we head into the summer doldrums?

    CD: A lot of the junior and small-cap stocks have been negatively affected in the current market environment and the stocks in the junior potash developer sector are no exception. Those are the ones that investors usually abandon first whenever market sentiment turns negative. It might take until the fall for these stocks to start rebounding. However, falling prices present opportunities for accumulation before the summer doldrums really do kick in and volumes completely dry up. I expect to see an uptick, certainly towards the end of the summer and into the early fall.

    TER: We appreciate your updates and insights.

    CD: You're very welcome.

    Corey Dias has worked in the capital markets industry since 2003 and has spent eight years in institutional equity research and institutional equity sales. In addition, he has worked for a U.S. hedge fund, where he shared responsibility for the running of a $400M portfolio and sought out assets for private equity investment on behalf of the fund. Mr. Dias holds a Master of Business Administration from the Richard Ivey School of Business at the University of Western Ontario.

    Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

    DISCLOSURE:

    1) Zig Lambo of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.

    2) The following companies mentioned in the interview are sponsors of The Energy Report: Karnalyte Resources Inc., Passport Potash Inc. and Verde Potash. Streetwise Reports does not accept stock in exchange for services.

    3) Corey Dias: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this story.

    Streetwise - The Energy Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

    From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110

    Petaluma, CA 94952

    Tel.: (707) 981-8204

    Fax: (707) 981-8998

    Email: jluther@streetwisereports.com

    May 03 6:25 PM | Link | Comment!
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