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Uranium Is Knocking At The Door

Posted by rantaboutit on February 12, 2007

Countries that rely only on oil as a source for their energy, will be in big trouble in few years time. The sooner these countries realise this and take action the better it is. The answer is alternative energy, be it Ethanol, Solar, Wind, Liquid Coal, Hydroelectricity, Geothermal or Ocean thermal energy.

More about Alternative Energy
Alternative energy is still a big question mark in U.S. President Bush supports increase in ethanol usage. Unfortunately corn-based ethanol has its own problems. Corn-based ethanol could lead to shortage of corn food and high corn prices due to high demand. Hydroelectricity contributes a large percentage to the world energy. However environment concerns block new dam construction. Solar cells can presently convert 20% of the sunlight to electrical energy. If built out as solar collectors, 1 % of the land today used for crops and pasture could supply the world’s total energy consumption. However solar energy has not gained widespread support for reasons like it cannot be used at night-time or cloud cover. Additionally converting incoming radiations to high grade electricity has not been well defined. Wind power is one of the most cost-competitive alternative today. Wild power can generate 5 times the current global energy consumption. However global climate impacts and global warming could worsen if large scale energy is extracted from wind power. Wind is also not always available when needed. Geothermal power has a very large potential if considering all the heat existing inside Earth, although the heat flow from the interior to the surface is only 1/20,000 as great as the energy received from the Sun or about 2-3 times that from tidal power. (Source: Wikipedia)

Uranium as Alternative Energy
How about Uranium ? Can Uranium be the answer we are looking for ?
Uranium can be used as a substitute for clean energy initiatives. Uranium is also abundant and the best deposits are unevenly distributed. World mine production is about 50,000 tonnes of uranium oxide concentrate/year. Practically all of it is used for electricity. Uranium does not produce smoke or carbon dioxide. It is reliable and produces only small amount of waste. The main use of uranium is in the civilian sector to fuel nuclear power plant. 1 kg of uranium can produce as much electricity as 1500 tonnes of coal and the cost of both is the same. This is in the form of enriched uranium which has been processed to have higher-than-natural levels of uranium-235 and can be used for a variety of purposes relating to nuclear fission. U.S., Canada, Australia, Russia and China trade alot in uranium due to its obvious advantage.

Why look down under
Australian uranium companies are the most lucrative of all. Listed are few important facts. (Source: UIC Nuclear Issue)

  • Uranium is part of Australia’s mining heritage.
  • Australia’s uranium reserves are the world’s largest, with 24% of the total.
  • Production and exports exceed 11,000 tonnes of uranium oxide/year.
  • Australia’s uranium is used solely for electricity.
  • Australia exported 46,600 tonnes of uranium oxide concentrate with a value of over A$2.1 billion.

Conclusion: Uranium can be answer we are looking for. As discussed, benefits of uranium out-weighs some of its alternatives which could make uranium companies highly profitable.

Recommendation: Uranium stocks won’t take off for a couple of years until the reality of depleting oil resources kicks in. Once uranium gains more support from the world as source of alternative energy, Uranium stocks will see amazing growth. The Australian stocks will benefit the most.

Two Aussie companies to keep an eye on are

  1. BHP Billiton BHP – Owner of world largest uranium owner with a market capital of $128 billion.
  2. Rio Tinto plc RTP – Mining company with market capital of $68 billion.

Also few other interesting companies i recommend with market capital in billions.

  1. Cameco Corp CCJ
  2. UrAsia Energy Ltd UUU
  3. SXR Uranium Onc Inc SXR

Also check out the list of all Uranium companies trading in U.S.

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Posted in Alternative Energy, Stock Picks, Uranium | Leave a Comment »

Beware: Outrageously high numbers…

Posted by rantaboutit on February 6, 2007

I had previously written about high dividend stocks. I would like to extend this post to include few more stocks that give outrageous yields. (As high as 45.80%). But wait….there is a catch…..!!!

  1. Royce Focus Trust, Inc. FUND operates as a diversified, closed-end investment company. The trust invests in the stocks and bonds in various sectors. They claim to pay dividend of $4.80/share and yield of outrageously high 45.80%. Is this kind of yield justified ? As per my research the last payment was made for $1.20/share, which multipled by 4 will give you 4.80$ which is right on track. Caution: Last four payments added up to only $1.57 which yields to only 14.5%. Do your own research to ensure that they will continue to pay $1.20/share every quarter and this is not a sham.

  2. Cal-Bay International, Inc. CBAY.OB invests in real-estate market. The company had interests in Utah, Nevada, Florida and California. They claim to pay dividend of $0.01/share and yield of outrageously high 41.70%. Caution: The company has made one dividend payment in the month of April 2006. The stock trades at 0.028$/share causing the yield to be so high.Since the company has only paid one dividend, you can’t rely on it in the future.

  3. Polyair Inter Pack, Inc. PPK engages in the manufacture and distribution of protective packaging products and swimming pool products. They claim to pay dividend of $0.81/share and yield of outrageously high 37.00%. Caution: They are only one-time dividend payer.

  4. Latin American Discovery Fund, Inc. LDF operates as a closed-end management investment company. The fund invests primarily in Latin American equity securities. They claim to pay dividend of $9.00/share and yield of outrageously high 33.80%. They pay dividend every six months. The mid-year dividend is small and the year-end is large. Caution: The year-end dividend relies on capital gains as opposed to dividend distributions from the stocks in the portfolio. Can you rely on such a stock for high dividend.

  5. Nicholas-Applegate Intl & Premium Strategy Fund NAI operates as a diversified, closed-end management investment company. The fund intends to invest in international markets. They claim to pay dividend of $9.28/share and yield of outrageously high 31.00%. Caution: The fund pays only at year end which includes capital gains which makes it unreliable.

  6. Templeton Emerging Markets Fund EMF operates as a closed-end investment company. It primarily invests in equity securities. They claim to pay dividend of $5.25/share and yield of outrageously high 30.50%. Caution: The fund pays only at year end which includes capital gains which makes it unreliable.

Conclusion: Some stocks look to be yielding outrageous numbers. They are attention grabbers. But are they genuine ? Maybe, maybe not. Not all high yielding stocks are bad. Again i urge my readers to read read and read…do you own research before jumping into any such high yield stock.

As a rule of thumb, always always check the number of payments made out by these high yield stocks. Ensure the dividend payment is consistent. Also make sure that the payment doesnt rely on capital gains. And finally make sure that the yield is calculated correctly from whichever source you use to monitor such stocks.

Posted in High Dividend, Investment, Investor, Stock Picks, Traders | Leave a Comment »

How Did They Perform !!

Posted by rantaboutit on January 19, 2007

Burnt burnt burnt…!! Isnt it weird that even after you have a strong feeling about the direction of the market you go ahead a make some real silly trades ? How many times have you got sucked into buying a stock thinking its reached its bottom and the prices will rise from here, but it never does. Instead it keeps falling till the sharks eat every innocent investor up for grabs. What surprises me is that i made 3 important points last night and all of them turned out true.
  1. Tech sector might be a risky bet considering the current trend.
  2. Metal prices will see some positive number.
  3. IM and MU are value stocks and will see better numbers in the longer run.

Stocks traded lower as the market took a hit from another sell-off in Technology sector. Oil prices again took a drop at point slipping below $50 and the Feds showed no sign of reducing interest rates. Disappointing Q2 guidance from Apple and drop in sale and profits from Intel brought the Technology and Computer Hardware tumbling down. Neither did Fed Chairman Bernanke help the market after he warned of a possible fiscal crisis and potential chances of a weakened economy. On a positive note, unexpected increases in monthly housing starts and building permits provided further evidence that the housing market has bottomed out, removing the worst of recession fears.

So how did the stocks i picked yesterday perform. Real bad, it broke my heart. Against investor sentiments no logic can apply.

COGT -0.25 (-2.31%)
DIVX -1.23 (-5.64%)

FLEX -0.14 (-1.17%)
SMOD -0.92 (-7.11%)

ZQK -0.23 (-1.56%)

Net Loss of -17.79%

Posted in Stock Picks | 2 Comments »