Saturday, November 04, 2006

Jim Dines and Uranium Picks

Jim Dines was on PBS last night, the Nightly Business Report, touting his favorite uranium stocks. Since Dines went public with four picks, its clearly ok to finally name names here. Better yet, I'll let Dines do it; here is a link to his appearance last night:

Jim Dines on Nightly Business Report, Nov. 3, 2006

The stocks Dines identified are:

Fronteer Development FRG
Laramide Resources LAM.TO
Mega Uranium MGA.TO
Pinetree Capital PNP.TO

Only FRG is traded on a domestic exchange, so that is the easiest selection to trade. The others are International Equities, require phone calls to brokers and are a bit more cumbersome to follow on a daily basis. Accordingly, so far I only own FRG, but I own a bunch of it and from much lower prices. But according to Dines (his latest newsletter hit last night) this bull market in Uranium and Uranium Stocks is still early and fortunes will be made in this sector in the years ahead.



curt504 said...

Thanks Allan for the heads up and info on some Uranium picks. I own FRG too.

Did Dines or your other sources give any preference to the Toronto listed plays?

You also tipped this AU play: SUMMIT RES FPO (SMM.AX) as a highly speculative play that would blow big based on some ifs. I believe from my DD that the main if is whether the AU gov passes a low allowing U mining again. I don't know the issues but it seems like an if that is hard to know "when".

Thanks, curt

Konrad said...

A -

CCJ has retraced due to their flooding issues. Dines is out. Do you think this could be a buying opportunity?


Allan said...

curt: Dines is a firm believer in spreading your bets out to as many as ten companies in any one sector;

Konrad; Dines writes in his newsletter that CCJ could be headed for bankruptcy due to the flooding and their inability to deliver on uranium contracts.


curt504 said...

Thanks Allan on the buy a basket tip.

BTW do you or anyone have hold/dump thoughts on PTSC? I've been gritting my teeth waiting for the intel/amd shoe to drop. Also waiting for the management to roll out a business model that shows recuring revinue vs the one shot payments from licensees todate. I think PPS is languishing because no one can figure an earnings per share model.


tnx curt

Allan said...

From on FRG:

FRG Fronteer Development -- Momentum Profile (8.07 +0.39)

In April, we profiled FRG at $5.09. With it up 59% since then and trading at a new 52-wk high, we thought we'd revisit the story. Fronteer Development is a discovery stage mineral exploration company with properties in Turkey, Canada and Mexico. The co is advancing some large gold deposits. However, it's the co's 47.4% equity interest in Aurora Energy Resources (Toronto: AXU) that piques our interest. Aurora operates one of the largest undeveloped uranium deposits in Canada. Nuclear power has been out of favor and there has not been a new nuclear power plant commissioned in the US since Three Mile Island suffered the partial meltdown of a reactor core in 1979. However, that appears to be changing. As oil prices remain high, nuclear energy is increasingly being considered as an alternative. For example, NRG Energy (NRG) recently said that it would build two nuclear reactors in Texas as part of a $16 bln investment. China is planning to power its growth with the development of dozens of new nuclear power stations, according to an AP report. A recent Washington Post article quoted an energy analyst saying that 60 fresh nuclear reactors will be built in the US.... They key is to the FRG story is the Aurora unit. It has a current mkt cap of C$777.4 mln, which converts to about US$690 mln. FRG owns 47.4% of Aurora which computes to $328 mln. Since FRG's total mkt cap is $470 mln, its other projects are being valued at just $142 mln. As you can see by the chart, Aurora has been a hot stock in Canada which is helping spur the move in FRG... Note: We caution that the stock has risen 26% in the last 3 days, so waiting for a pullback makes sense but we wanted to provide some color on the recent move. (PROFX)

konrad said...

A- what happened to the Apollo basket: AGT, AOOR, APLL. I know AOOR was a spec play. Are you still following any of these?

Allan said...

konrad, I pretty much adhere to a 50% stop on these spec what seemed like a good idea at the time hasn't worked out so well. I probably spend more time writing about these cute little penny stocks then is merited by the small place they take up in my portfolios, but they're more fun to write about then the Apple Computers and Qualcomms. And, if one of them hits, all the pain is soon forgotten. At least the i-buys seem to be coming to life.


Konrad said...

A - thanks for the answers today.

Anonymous said...

what do you think about URZ?

Allan said...

URZ - Don't know much about the company other then what is contained on their web site:

Uranerz Energy Corporation is the only pure uranium company listed on the American Stock Exchange (symbol URZ). Uranerz's corporate goal is to create shareholder wealth through the discovery or acquisition of quality uranium deposits, and developing those deposits into profitable producing mines using low cost mining methods such as in-situ and heap leach technologies.

That said, on Friday it broke out on a three-day new high, continuing up today (Monday). The candlesticks are on a Buy signal. So technically, it's in BUY MODE and the fact that they are in the uranium sector is frosting on the cake, radioactive frosting, but frosting nonetheless.


Anonymous said...

So you are saying uranium stocks are "hot"?

Get it?

JK in DC

Anonymous said...

Allan, Are you still in SMM summit resources, australian market?

Their website lists a bunch of fund holders and recent good news and U mania looks to be a long term buy.



Allan said...

Re: Summit Resources - curt, I dumped it a while back as I was having a hard time following it on a daily basis....if a stock can't be traded electronically, I am very relunctant get in or to stay with it, just a personal quirk I guess. In other words, my exit had nothing to do with the outlook for the stock.


Greg Reiman said...

Anyone know what company this is? How about the other company with the China mine?



Would You Like to Own $30
of Gold for Less Than $4?

By Matt Badiali

Dear Reader,

For the past 6 months, I’ve scouted the world for the best gold investment opportunities, but have only just recently come across the safest and most undervalued stock that I will probably ever find.

In fact, if metal prices fell by 30% right now, this company’s metal reserves would still be worth five times more than its actual share price.

Located in the heart of Victoria, British Columbia, which during the 19th century produced more than 5 million ounces of gold, this savvy mining company has found the “host rocks” which was the source of some of this gold.

The company now has so much gold and copper reserve in the ground that one of its shares is equivalent to owning $30 of metal, yet the stock closed yesterday at just $3.13 (as of Nov. 2006)…

A Golden Future
This company’s stock is currently trading at a price-to-earnings ratio of 5.8x, which compared to its peers, is selling at a HUGE discount.

For example, if the company’s reserves were valued at the same rate as Cambior, one of the world’s largest gold producers, it would be worth 20% more than its current price.

The company has three primary deposits, which during the third quarter of 2006 has boosted the company’s net earnings by 70% when compared to the corresponding quarter of 2005.

One of the company’s deposits has become one of the most efficient open pit mines in the world, producing record earnings of $33 million with a record cash flow of almost $66 million.

This deposit has produced an average of 75,000 ounces of gold and 20 million pounds of copper every quarter so far this year. And thanks to the company’s management, now operates at one of the lowest costs per ounce in the industry.

The company has put $8 million into drilling and expanding its second deposit, which has resulted in an 800% expansion of the deposits’ known resources, which its previous owners had never knew existed. The deposit contains 4.1 million ounces of gold and 1.5 billion tons of copper in proven and probable reserves.

Last year, the company acquired 100% of its third deposit, which contains two ore bodies, one of which is being drilled right now.

This deposit currently has 1.4 million ounces of gold, but based on upcoming drilling reports, could nearly double to 2 million ounces and drastically bump up the company’s share price as a result.

The company purchased this deposit last year for just $11 per ounce of resource. Even if they can prove only 10% of this resource, they essentially bought gold for $110 per ounce. According to the company’s CEO, this deposit has the potential to produce 150,000 ounces of gold per year for the next decade.

Based on its outstanding track record of delivering on its promises, this company is now widely recognized as one of the finest operators in the global mining business.

Its gold production for the most recent quarter was 28% greater than last year’s corresponding quarterly results.

The company’s revenue has also increased by 65% when compared to last years’ results.

A Joint Venture with Huge Potential
The company’s latest joint venture project has me particularly excited as well…

It has partnered with a mineral corporation to explore a 149-square kilometer property. Right now, the company has a 51% interest in the property and if it funds another $5 million in exploration, will have a 60% interest in the project.

If this project turns out to be a winner, this company’s share price could skyrocket a full 100%.

In short, this is the safest, most undervalued mining company I’ve ever seen and it offers up a primary opportunity to buy a super cheap asset.

Here’s what to do now
My name is Matt Badiali. I’m a geologist. I hold a master’s degree in geology and I’m finishing up my Ph.D. in the same field. I’ve spent the last 15 years studying, teaching, and working in this industry.

I know how and where to locate rare and valuable resources… precious commodities like oil, diamonds, copper, and, of course, gold...and I’ve trained with major oil companies.

Along the way, I’ve worked as a field geologist for a variety of firms... supervised drilling teams... explored the mountains of Colorado... and even combed Nevada’s gold-rich Carlin Trend...

Last June, I left academia to take a job as a geologic analyst with Stansberry & Associates Investment Research.

I began a monthly investment advisory showing readers how to capitalize on the booming oil business. And this research service has been nothing short of an astounding success. I’ve already helped more than 33,000 readers learn how to cash in and make money in the oil and gold industries. In the last twelve months, I’ve shown subscribers some lightning quick gains

In fact, four months ago, I recommended a mineral exploration company and my readers have since pocketed 23% gains (as of Nov. 2006).

Two months ago, I recommended a zinc and lead producer and my readers have since pocketed a 54% return on their investment (as of Nov. 2006).

I can’t give you the names of these firms here because all of them are still buys… and poised to go even higher.

For years I’ve wanted to take my expertise in precious minerals and help people understand the business… and make some good money at the same time.

Now I spend the majority of my time researching and analyzing every inch of the precious metals and natural-resources industry… utilizing inside contacts… experience in deep underground mines… and a thorough understanding of geological exploration… to report my best investment ideas for a new financial research service called The S&A Gold Report.

And I’ll be the first to admit…

The S&A Gold Report is not for the average reader.

How do you know if it’s right for you? Here’s how to decide…

The New Bull Market Is Here

If you’ve been paying attention to the price of gold lately – and I’ll bet you have – you’ve noticed quite a run-up in price since 2001.

It’s up 143%.

And if you’ve been eyeing the prices of other precious metals and raw materials, the story is exactly the same...

Silver – up 206%
Platinum – up 185%
Copper – up 458%
Aluminum – up 122%
Oil – up 156%
Zinc – up 500%
Nickel – up 610%
Lead – up 250%
Amazingly, these prices are only just beginning to rise.

You see I firmly believe these are the dawning days of a 20-year bull market in commodities and precious metals. That’s because the markets for these resources – like everything else – run in periodic and predictable cycles.

Let me show you what I mean...

Looking back, there were 3 commodities bull markets during the 1900s:

1906 – 1922
1933 – 1953
1968 – 1982
The shortest of these bull markets lasted 14 years and the longest lasted 23 years.
The one we’re in now began in 2000. Historically speaking, we have

at least until 2014 before this bull market expires.

In my professional opinion, I think it’ll last until 2020.

How do I know?

Take the price of gold for example...

As I mentioned, gold prices have soared again. Since 2001, they’ve already gone from $256 an ounce to as high as $622. But compared to the bull market of the late ’70s, this is only the beginning... This may be the biggest gold bull market in history!

Check out the chart below. That’s the price of gold adjusted for inflation – in the value of today’s dollars as measured by the Consumer Price Index.

See the last part of the chart from Jan-01 until today? That last little part is the current gold bull market. Though gold has been climbing nonstop since 2001, it still has a long way to go before it reaches its all time highs.

According to some experts, this gold bull market will be unlike any we’ve seen before.

Bill Murphy, chairman of GATA, the international watchdog organization monitoring gold markets, wrote, “Gold should top $1,000 within two years on its way between $3,000 and $5,000.”
France’s largest bank’s equity brokerage, Cheuvreux says, “We could see the gold price spike up much further, possibly to $2,000 an ounce or even higher.”
“Rising inflation and continued negative real interest rates make a good environment for precious metals,” Barron’s reports.
No matter which new plateau gold reaches, it seems clear that gold is headed in only one direction – up. But gold isn’t the only precious metal getting ready to take off (prices adjusted for inflation)...

Silver is still about 74% below its all-time high
Aluminum is still about 122% below its all-time high
Zinc is more than 162% below it’s all-time high
Copper is also 61% below its all-time high
All this adds up to what will probably be the biggest precious metals bull market the world has ever seen.

In other words, the best place to have your money over the next two decades will be in precious metals and raw materials.

That’s where I think our newest research service

The S&A Gold Report can help you.

Every month in The S&A Gold Report I’ll show you 1-2 recommendations that are likely to benefit from this trend.

While the company I’ve told you about today owns some small gold assets in its properties, it is not a true gold play.

But what you’ll soon find out is that The S&A Gold Report is set up to include a few non-gold, mineral resource plays in its portfolio.

And being that the company I told you about today has such strong potential, I felt it should be one such equity in my portfolio.

Let me give you a few examples of some more ideas I have coming down the pipe:

A company that owns the world’s largest undeveloped gold and copper deposits... totaling 23 million ounces of measured and indicated gold reserves… and 6 billion pounds of copper.

A gold and diamond explorer that’s growing at twice the rate of the price of gold. In the past, companies like this have exploded 2,400% to 4,300%… and more.

A natural resource that’s already grown faster than gold, silver, or oil… its price has exploded 1,300% in just four years… yet most investors have heard nothing about it.
In fact, since introducing

The S&A Gold Report only 6 months ago, my readers have already made significant gains…40% on a Canadian gold and diamond mining company… and 51% on a gold exploration company…(as of Nov. 2006) and that’s only to name a few of my double-digit gains.

As I said, this brand-new advisory service is not for everyone. The companies I look for are small, and not widely followed by the mainstream investment community. If you’re the kind of person that enjoys the comfort of following what the investing mainstream is doing,

The S&A Gold Report may not be for you. Instead, a gold or silver ETF may be a better fit for your style.

The S&A Gold Report is suited for those who may be willing to stake a small portion of their portfolio and speculate in tiny, often unheard of precious metals companies – where investments have the potential to grow 500%… 1,000%, or more. These are the kinds of investments that can literally change your life – where an investment may turn into a new beachfront condo… or even pay for your dream vacation.

The way I see it, if you want to learn ways in which to make some serious money, there’s no better way to do it.

If this research service sounds like it’s for you, here’s what I suggest you do…

Become a Subscriber to The S&A Gold Report

To my knowledge, there’s nothing else like this research service available anywhere… offering due diligence and insight into the precious metals industry from a seasoned geologist’s point of view.

If you are interested, here’s what I recommend you do:

1) Sign up right now for a trial subscription to The S&A Gold Report. You will have immediate access to my latest issue entitled British Columbia’s New Gold Rush…a $30 Gold Stock for $3 a Share, in which I will give you the full details of a Canadian gold and copper mining company whose stock is poised to take off at the end of November.

As an S&A Gold Report subscriber, you will get 12 monthly issues of my newsletter. On the last Thursday of every month, I’ll send you the latest edition of The S&A Gold Report via e-mail. Plus, I’ll send you regular e-mail updates on the companies I follow and new opportunities as soon as they come up.

2) When you give The S&A Gold Report a try, you will have the next three months to decide if this research service is right for you. It certainly is not for everyone. Three months should give you plenty of time to see how my recommendations perform. You can see for yourself if the research I do is as in-depth and sophisticated as I say it is.

If you decide my service is not for you, simply let us know within your first three months, and you’ll receive a full refund.
So how much does

The S&A Gold Report cost?

Coming up with a price for a brand-new research service like this is always a hard task.

I’m not going to lie, the level of research I do is very time consuming and labor intensive.

A one-year subscription to The S&A Gold Report costs $1,000. It’s not cheap, I know. However, this research service is designed for a very small group of people who are serious about making money. And you can be sure you are getting high-quality, in-depth research in the process.

If you like the idea of taking a small portion of your portfolio and speculating in tiny precious metals companies that may have the chance to go up by 500%… 1,000%… or greater,

The S&A Gold Report may be perfect for you.

Like I said, if you are unsure about the price, you can try it for the next 3 months and if you don’t like it, I’ll refund every penny you paid in full.

Subscribe now to get started.


Matt Badiali
Editor, The S&A Gold Report

P.S. For the past 7 months, I’ve been working on something very unique… my biggest project to date – researching a tiny firm constructing the largest gold mine in Asia.

I’ve just finished compiling a special report that details the situation in full. It’s calledChina’s Secret Gold Mine.

This comprehensive report reveals everything there is to know about the company building Asia’s biggest gold mine. For example it covers:

China’s biggest and most modern gold mining project.

The first and only foreign company to receive gold mining permits in China – the tiny company that’s constructing this massive gold mine.

Why this company is about to become the largest gold producer in China.

The other big and potentially profitable gold mines it owns in China.

The exploration projects this company has lined up in China’s uncharted gold regions (remember, more than half the country has yet to be fully explored for gold!) Another big discovery could very well be on the way.
This report is yours as soon as you sign up for The S&A Gold Report.

Anonymous said...

The first one is northgate minerals.

Greg Reiman said...

Thanks anonymous


Anonymous said...

you are welcome greg
does anyone have a good play for coal to liquid stock? rentech or perhaps syntroleum?
It seems that their technology could really benefit our fuel hungry nation or better yet our planet.

konrad said...

Anonymous said...

Can anyone tell me whom Jim dines with? Those dinner conversations seem invaluable.

JK in DC

Anonymous said...

Who is the second chinese gold recommendation?