resourceman

17 Comments

    • ON: Wed Sep 17th 17:18 PM
      Commented on:
      Why Buy MLPs? Part II
      Avi, I went back and read your first bit on MLP,s and make the following comments: in the list of MLP,s you have Linn Energy LLC UTS posted. This is not a MLP--it is an Oil & Gas Royalty Trust which has a still different tax treatment--unit holders receive a 1099-Royalty & can deduct depletion allowance & taxes. If you,re including Royalty Trusts in your analysis , there are much better ones out there. Linn Energy did particularly poor on their 2Q earnings--they lost $773,400,000 on their O / G commodity hedges--I,ve stayed away from them also because they,re royalty assets are in states that tax royalty income. Two Trusts I recommend are BPT ( B P Prudhoe Bay Roy Tr. ) & PBT ( Permian Basin Roy Tr. ) . PBT has all of it,s royalty interests in the state of Texas which has no income tax & does not tax royalty trust income. I,ve got some royalty interests in New Mexico & they,re killing me with Taxes ~8% off the top. When investing in O/G Roy Trusts one must consider which states the royalty interest is in. Whereas pipeline & terminal type MLP.s are basically toll-takers & their distributions are more stable , the drawback with Roy Trusts is their payments do track the price of the commodity . But on average , Roy Trusts today pay about twice the yield that MLP,s do. Could say you,re being compensated for the added risk of commodity price changes.
      View article »
    • ON: Sun Aug 24th 17:46 PM
      Commented on:
      Ten Shining Arizona Stocks
      Your article brings to mind my latest investment speculation--Enhanced Oil Resources,Inc. They are the company holding the Helium & CO2 reserves you mention . A small Canadian co trading on the Venture ex. under the symbol : EOR.V ( using the Yahoo quote ) . They have leased & control most of the St. Johns Helium/Carbon Dioxide Field in Apache Co. Az. & Catron Co. NM. The co has completed 15 wells of 36 drilled & has tested flow rates as high as 6.5 million cubic feet per day. Latest reserve calculations suggest a recoverable 8 trillion CF of CO2 + 33 billion CF of Helium with field life of 40 years.Now here,s the interesting part--they plan to pipeline ( yet to be built ) the CO2 east into the Permian Basin of SE NM & W Tex. where it will be sold for enhanced oil recovery in mature oil fields. There is a HUGE demand for such CO2. Third parties will build the pipeline & I believe they have already signed a deal with the Federal Gov,t to buy all their Helium ( since the Gov,t is the only buyer ). The co is well capitalized by equity offerings & several private placements. Now the real payoff --they have started buying smaller, mature oil fields in NM which will be subjected to CO2 injection for ehanced recovery of remaining oil. Their staff of Geologists& Pet. Engineers are constantly looking for potential mature oil fields to purchase. To date they have purchased 2 oil fields : Milnesand & Chaveroo and are reworking the wells to maximize current oil production. There,s a big oil company that,s doing this same thing; Denbury Resources Inc., only they don,t own their CO2--they have to buy it. This co , EOR.V, could grow into something huge. I,m in on the ground floor . Long EOR.V.
      View article »
    • ON: Fri Aug 22nd 12:59 PM
      Commented on:
      2 New Wind Energy ETFs: A Comparison
      Nice analysis ! I,ve been wanting to compare these 2 ETF,s & have held off investing--now I have something to consider.Thanks.
      View article »
    • ON: Fri Aug 22nd 12:48 PM
      Commented on:
      Commodities: Brief Correction or Bursting Bubble?
      Nice article Andrew--I definetly agree. This is a fine time to begin nibbling on the energy & resource sectors. Wasn.t yesterday,s action an eye-opener for the nay-sayers--it was for me.
      View article »
    • ON: Tue Aug 19th 13:08 PM
      Commented on:
      Four Brazilian Profit Plays
      pdd , re. GGB , this co. should have been included in this nice review. I,ve owned it as a long term investor for many years. The stock is on sale today @ $17.35-in fact I bot more yesterday @ $ 16.66. Their 2QNet was up 85% w/ Rev. up 47% . Their forward P/E is 7.32 w/ a PEG of 0.81. Their U.S. sub--Gerdau Ameristeel did even better : 2QNet up 88% & Rev up 92%. I urge you to jump on it NOW !
      View article »
    • ON: Mon Aug 18th 18:43 PM
      Commented on:
      Rentech: Homegrown Synthetic Fuel On the Near Horizon
      Righton captainccs. I don,t believe the CTL & GTL technologies will be lacking gov,t subsidies for long inasmuch as the U S Dept. of Defence is intent on securing a reliable , domestic source of jet fuel that doesn,t depend on imported fossil fuel . The Generals will win this one ! Long RTK , SSL , & SYNM
      View article »
    • ON: Mon Jul 14th 16:00 PM
      Commented on:
      Pennsylvania's Marcellus Shale: Welcome to America's Next Great Energy Boom
      Nobody has mentioned the Dev/Miss Woodford Shale of SE New Mexico & W. Tex. I know it is being explored in the Anadarko Basin , but why not N.M. ?
      View article »
    • ON: Thu Jul 10th 15:57 PM
      Commented on:
      Canaccord Adams Bullish on Fertilizer Companies
      Nice coverage of Potash. Glad to finally see a mention of MagIndustries (MAAFF.PK , MAA.V ) a Canadian company. This is the only Potash holding I have, with a nice low entry price of C$ 2.36. They have a 2,265 km2 , 25 year permit in the Republic of The Congo which overlies a massive salt deposit containing carnallite ( magnesium-potassium-ch... ). Proven reserves are 17.9 million tonnes of KCL , with total inferred resources of 1.07 billion tonnes ( 185.9 million tonnes KCL ). The resource is open in all directions and later core-drilling will likely increase it substantially. They plan to solution-mine the carnallite and process it into potash fertilizer in their Potash Plant which starts construction in 3Q08. Initial produstion is planned for 600,000 tonnes/yr , ramping to 1,200,00 tonnes. The plant is only 16 km from West Africa,s best deep-water port , Pointe-Noire , ROC. MagIndustries has already chosen a leading global marketer of Potash and other fertilizer products , Ameropa AG , based in Switzerland , to market all their exports. MAA.V is also planning to construct another plant to harvest Magnesium metal from the same salt brines. They additionally have another Division named MagForestry , also in Rebublic of The Congo, which harvests fast-growing eucalyptus trees for pulpwood log export. They are in the process of converting to wood-chip exports with their new chipmill. Trees are grown on their 68,000 hectare, 50 year permit , with 25,000 hectares still unplanted. If that,a not enough , they have a third Division , MagEnergy , which is in hydro-power and revamping an extensive power network in the ROC which also sells power to the copper mines in Zambia & The Democratic Republic ofThe Congo. This is obviously a buy, wait , & hope investment ,but everything I read about Potash says strong demand for many years.
      View article »
    • ON: Wed Jun 11th 14:33 PM
      Commented on:
      Is the Ship Coming in for American Superconductor?
      Yes indeed ! This has been a Hope company for many years--a stock that requires much patience . Their purchase of WindTec company was well timed and is now paying-off . Made my first stock purchase in late 2003 , and continued buying on dips . Basis ~ $8.80 . Checking the charts you,ll see that AMSC always sells off after a spurt. My advise is put in a lowball offer , good-til-cancelled, and wait. Some morning you,ll be surprised to see that AMSC opened-up below your price and you filled even below your lowball price. Happens all the time. Time to get on this train !!
      View article »
    • ON: Thu Jun 5th 22:34 PM
      Commented on:
      Five Oil and Gas Trust Picks
      I used to own some NAL Oil & Gas Tr. but last time I checked their distributions are not considered as Qualified Dividends for tax purposes. My belief is that there are so many senior Canadians who rely on these CONRYS for their income that the 2011 tax increase will be forgotten , or there,ll be a revolt. Maybe they,ll have a new Gov,t by then, who knows !!
      View article »
    • ON: Fri May 30th 19:19 PM
      Commented on:
      Coal is the Next Fertilizer
      Nice piece Trader Mark. I agree that COAL is a 2009 story, and on and on ! Our government is in complete denial on coal & yes, the next admin. will probably also have their head in the sand. Plentiful coal , I believe, could be the bridging commodity we will use for power generation until we finally accept that nuclear power in the best energy source-- who would have believed that those crazy frenchmen could figure this out long ago--now they,re off the fossil fuel habbit. There are viable technologies currently available to clean-up coal for power generation. I live near Tucson Az. where our largest power company , AEP , uses coal. I,ll bet most of my fellow Arizonans don,t even no that. You can see these huge unit trains of 90 cars full of coal arriving regularly--and we don,t really have a pollution problem here. Liked your comments on THE ANALYSTS. They generally missed this move in coal stocks. What really gals me is they,re habit of setting a price target on a company,s stock , and when it reaches that price they brand it " overpriced " and downgrade it on valuation--What Nerve ! The thought that it could rise above MY PREDICTION is inconseivable. I too own ANR , ICO , WTN.TO & CBM.L ( which owns 45.7% of Wtn.To.) for the long term.
      View article »
    • ON: Thu May 22nd 11:40 AM
      Commented on:
      Uranium: Red Hot Yellow Cake
      Yes, we are witnessing a nice turn-around in the U3O8 mining/exploring sector . My portfolio of > 30 issues has risen ~ 15% off the bottom. Big joy now is HAT.V with it,s mega-discovery. You need to be in that stock. They,re doing everything right--ie., after the first core showed >5% U3O8 they leased all available. contiguous acreage. Then they beat-off an encroachment claim by their neighbor FIS.V, who BTW, has benifitted nicely from the discovery. Now they,re continuing to core and reporting values even above 40% U3O8. This will make HAT.V into a large company someday down the line. Their 10% partner, TAS.V is also another way to play this Bonanza! Best of luck to all you U3O8 longs--our day will come !!
      View article »
    • ON: Wed May 14th 14:57 PM
      Commented on:
      Under The Radar News - Wednesday
      That AMSC gossip kinda worries me. Have a nice position in it with ~244% paper profit--most was bot in 05 with some bot in 03. I,ve been patiently waiting for them to get into the black. They,re definitely in the right sectors: elec. infrastructure & wind generation. My reason for hanging-in is I believe they will be bot my GE, or some such mega-company. AMSC has even co-op,d with GE on several international projects I believe. It,s a natural fit baby! What say you fellow bloggers--HOLD or SELL or Partial SELL ??
      View article »
    • ON: Tue May 13th 16:12 PM
      Commented on:
      Oilsands Quest: What's in a Name?
      This is good news for BQI longs that Sprott Asset Mangt. has taken a ~10% position, despite the potential dilution. This means that BQI has passed the litmus test as a viable oilsands endeavor.
      View article »
    • ON: Tue May 13th 00:53 AM
      Commented on:
      Coal Investors Partying Like It's 1999
      ANR is an excellent LT investment in the coal sector. It,s the largest U.S. supplier of met coal & shipped to 17 different countries last quarter. They report that they have 21 million tonnes of met coal that is either unpriced or uncommitted for 2009 & 2010. For those investors/speculators who want a low priced idea in the sector, I suggest Western Canadian Coal Corp. symbol: WTN.TO, which trades on the Toronto Exchange at about $6.00. The interesting aspect of this company is that they announced on May 7 that they negotiated a majority of their 2008 hard coking coal contracts at an aver. price above $300 per tonne ( 365% above prior prices ) and a majority of their 2008 low-vol PCI ( pulverized coal injection coal ) at approx. $248 per tonne ( 350% above prior prices ). CEO John Hogg says " company should be producing significant cash flow shortly "--well I guess so !! WTN is 45.73% owned by Cambrian Mining PLC , which trades on the LSE under the symbol CBM.L at a price of 194.00 GBP. WTN plans to increase their capacity for high quality met coal which now stands at 3.7 million tonnes per an. They recently added 15.7 million tonnes , or 18% , to their coal reserves. These 2 stocks could be real winners over the next several years--or until supply of met coal exceeds demand. I have positions in all 3 companies mentioned.
      View article »
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»