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Gumby
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Yeah, it is free enterprise!! Can we go way too far on this ? Is Earth dying before our own eyes ? Does quality of life really matter? Do we understand it or what? What is God all about ? Do smokers really have the right to blow smoke into our faces on streets? Should we put them back indoors so... More
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  • Oil & Gas Industry Is Actually In A Real Dilemma!

    We planted a clean energy seed in the ground and it is slowly taking root deep and deeper. Skeptics had been ridiculing clean energy as a non competitive entity largely footed by our government with tax breaks. While this is true, what you readers may forget is that the real costs of producing a clean watt has come down if not in a crashing manner!

    This means that the vaunted pricing clout long enjoyed by our oil & gas industry despite our constant efforts to improve efficiencies , etc, is fast slipping away. What we are witnessing now is a total U-turn with rampant new hydrocarbon developments that propels United States as the world's leading producer of oil and gas . What we still ignore is the unknown environmental damage that is occurring during the meanwhile. While I don't have the facts on the environmental damage, it is blatantly obvious to me that the damage is multiplied many times over every barrel equivalent in oil or gas is produced than merely a couple decades ago.

    Recently , I took a brief glimpse at news about banks diversifying away from the petrol investments, but what remains to be mentioned is whether they are going to move toward clean energy investments away from the former. This remains to be known.

    Oil and gas investments has been historically very cozy places to park capital since it had been so long the dominant player in the energy fields. It may still be for a long time to come but what really matter the most is that it will become less and less dominant as time passes. There will be fewer and fewer chairs to seize while the music lingers on.

    I am not suggesting that clean energy investments is a sure fire place to bet on, but it is struggling smartly . It is gaining in sophistication and reliability which should count for now. The pow-wows of the utilities are slowly washing hands off the dirty energy that they had long so accustomed to making business with.

    They are learning the ropes now and they will be more confident as time passes . However, the technology may take a turn and render the present technology obsolete overnight. Nobody will ever know whether photovoltaic technology will be surpassed by another new technology in the future with much higher efficiency. This is where investors should pay close attention to. As of lately, we are achieving just over 20% capture of sunlight on any area with present photovoltaic. There is some interesting ideas swimming around that promise to boost toward 25%.

    Actually even with 100% efficiency as you can have with plain mirrors which nobody wants to use yet, somehow for some reason unexplained, there is only so much sunlight we can capture in all suitable locations . Will it be enough to bring clean energy providers some dominant role in energy ? Probably not, costs may prove to be advantageous to them over the oil and gas as time passes.

    Mother Earth can only take as much abuse as we can get away with. One day, we will get the natural ultimatum and we will find ourselves on a crash course to change ways we produce energy.

    Can we afford to ignore or what? The only way we can is if we start abandoning the masses to financial damnation and start saving our own for ourselves... It can happen here in America. Who knows?

    Aug 26 1:40 PM | Link | Comment!
  • Wide Moat Stocks??

    Warren Buffet is well known for choosing stocks that enjoy so called "wide moat" against competition. Everyone knows what stocks he picked, but I know that any competitor can build a Brooklyn bridge across it if he cares to. It is just that nobody is trying as if everybody is going out of his way to please Warren. Warren is not alone , of course. It is just that too many stocks is enjoying "make pretend" moat that stakeholders are so happy to hold.

    It makes me wonder about the real value of today's stock market as I can easily see so many undervalued ones as well as overvalued ones on an ongoing basis. You may ask why I never got rich, well, I can honestly tell you that I believe that there is delay tactics nearly everywhere but a few chosen ones. Here is a simple fact, money cannot chase every stock at same time so they rotate them but somewhat maintain so called the Darling 50 in a secular way.

    This is not really honest because the favored ones are feeding off the many other good ones . it is just money changing..

    Disclosure: The author is long AA.

    Additional disclosure: AA is a true wide moat stock but is being suppressed by Wall Street through global overproduction of aluminium and depressed prices.

    Tags: AA, aluminium
    Jul 10 3:35 PM | Link | Comment!
  • Aluminium At 90 Cents A Pound? HA HA HA HA HA HA ...NOT!

    A Why is it that aluminum prices continue to be pigeonholed at 90 cents for as long as memory can either serve or fail me? We are brainwashed into thinking that it will stay that way for-eeeeever! How we wish that same thing can be applied to gasoline or beef or corn as a commodity!!?? Of course, we wish, too.!

    Granted, a vast majority of you readers probably had no clue how much higher other metals like copper, molybdenum (used to be mixed with steel for high tensile strength like tools), nickel ( there is such a metal called nickel in case you don't know... ), silver, gold, you name it .. had gone up in prices in recent years or past decade? Yes they went up 300-1000% and stayed there..

    Aluminum somehow stayed stuck at same price for past... ( let me remember how long, oh yes, something like 40 years!!) it has been that Looooooooooooooooooong!! since !!!

    Of course, aerospace is one of the first things that probably come to your mind when you hear aluminum being mentioned or is it still your creaking patio furniture still lying around since the 1960's. Why they made it sooo thin that it collapsed if you sort of fell on it.. It is so ridiculous! Or is it the skin of those so called tin homes known as trailers?

    Anyway, there is zillions of new uses for aluminum since the days of patio furniture of the 1960's. Lets take heat sinks that you often see in the guts of your desktop computer cases. We also ride in aluminum framed bicycles now. Even aluminum windows are making another comeback as wood/aluminum clad designs with the wooden side facing inside and the aluminum side facing outside to enhance the durability of wooden windows favored by the upper class clientele.

    As matter of factly, aluminum consumption is fast growing in popularity . Prices are supposed to be "elevated" as demand grows, but it is never the case for aluminum . Somehow, China decided to flood the world with aluminum that it doesn't know what to do with except to please anybody except aluminum stakeholders.

    Now, we are drowning in millions of tons of excess aluminum being placed in sprawling warehouses that dot around the globe. yes, we believe in aluminum as the miracle metal as long as we can get it for dirt cheap! Is this what it is all about?

    Is aluminum prices being manipulated by wanton overproduction with no regards toward the horrible environmental damage through heavy electricity consumption that is required to overproduce it. Where were the environmentalists when we needed them? Carbon dioxide has just passed 4% in our atmospheric peck order , still a long way behind oxygen (possibly falling from normal 21%- it must be around 19% by now , isn't it? )

    Aluminum speculators are still happy to hoard those millions of tons in the warehouses with full conviction that prices for them are a foiled up joke for so long!

    Disclosure: The author is long AA.

    Additional disclosure: it is against my better judgment about this disclosure as I am presently under influence of the Wall Street voodoo therapy.

    Jul 08 5:36 PM | Link | Comment!
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