Thursday, July 24, 2014

Marin Katusa: Why Uranium Prices Will Go Much Higher

This week, resource expert and fund manager Marin Katusa joins S&A Investor Radio and explains why Russia holds the key to much higher uranium prices.
During the interview, he shares his two favorite uranium plays and talks about the upcoming PDAC Convention.
You'll hear him talk about several important rules he follows for buying any resource company. Plus he reveals several junior mining stocks that he is buying right now.
We're sure most listeners have never heard of these companies before. However, Marin says most resource investors will be talking about these names inside of 18 months.
If you want to be a successful spectator in the resource sector, then you won't want to miss what he has to say.
Something that Marin is really excited about is what he calls the "European Energy Renaissance"... and you can get all the details here.
This is your chance to get insight from one of the most connected experts in the mining industry.
Plus... Are you making a huge investing mistake?
Find out which select stocks Frank says you should NEVER ever short.
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CBS Outdoor America CBSO

I really meant to post this update over the weekend so obviously it’s not going to have the impact as this stock spiked over 4% today, but I think there’s more upside in this one to be had. Technically it has a very clear channel forming and it should have no problem getting back to the upper trendline. Low float of 22 million will surely add to the volatility but I think there’s a much better chance of this going over $37 then revisiting $32. The RSI has been behaving bullishly as it oscillates between 80-40.  20% of the float is short so as this moves higher many of those shorts could be forced to cover which again could add to the upside move. Keep your eye on this for follow through after today’s move as this thing could just be getting started.
Annual EPS (BNRI)
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The Cheapest Stocks in Europe to Invest In.

It's a tough time to be an investor in Europe…

Portugal's banking crisis is in full swing. And it's dragging European stocks down with it. Europe's blue-chip index – the Euro Stoxx 50 – is down 8% in the past month. Portugal's stock market fell 14% over the same period.

This fall has made already cheap European stocks even cheaper. But one country in particular stands out as the absolute best value. And while today is a scary time to buy, it could lead to big gains.

Let me explain…

 If you'd invested in European blue chips in early 2012, you'd be sitting on 53% gains… more than the return on U.S. stocks over the same period.

European blue chips are still a great deal today… 16% cheaper than the U.S., based on forward earnings. But we can get even better value by putting our money in one of Europe's cheapest markets… Italy.

The table below shows exactly what I'm talking about. It compares Italy's stock market with Europe's other major stock markets. Take a look…

Next Year's Estimates
Price to
Price to
Price to
Cash Flow
Euro Stoxx 50
FTSE 100
CAC 40

Italy's major market Index – the MIB – is cheaper than the rest of Europe, nearly across the board…

When you look at price-to-book value, Italy is 29% cheaper than Europe's blue-chip index. And it's more than 30% cheaper using price-to-cash flow.

Based on book value, Italian stocks would need to rise 40% just to reach the valuation of the Euro Stoxx 50. And remember, the Euro Stoxx 50 is much cheaper than the U.S.! So getting into Italy is buying the cheapest of the cheap…

Simply put, Italy is THE value investment of Europe's major stock markets. And our upside potential is huge.

The problem, of course, is that Italy's stock market is falling with the rest of Europe. As you can see in the chart below, the iShares MSCI Italy Fund (NYSE: EWI) has fallen 10% since early June.

It's never a good idea to try to "catch a falling knife." It's usually safer to wait for it to hit the ground and move higher. And even though Italy is an incredible value today, we need to be patient.

If you're interested in Europe's best value – Italy – wait for shares of EWI to move above $17.50. If that happens, it'll likely mean we're past the "danger zone" Europe is in today… and that Italy's multiyear bull market is back.

Investors in Italy should be in for big gains… Don't miss out.
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High-Yield Bonds “Extremely Overvalued” For Longest Period Ever / by Tyler Durden on 07/23/2014 15:23
The high-yield bond market has been “extremely overvalued” for a record nine consecutive months, according to Martin Fridson, a money manager at Lehmann, Livian, Fridson Advisors LLC. As Bloomberg Brief’s Matt Robinson notes, the streak breaks the previous record of eight months set in October 2006 to May 2007.
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Are Coal Stocks Ready for a Breakout? : KOL

Whenever I bring up coal stocks to my smart friends, they laugh at me and tell me to order another drink. I kid you not. I’m lucky that I live in New York City and get to hang out with some of the smartest minds in the business. I’ll never take that for granted. But anecdotally, it allows me to throw out feelers on some of my ideas and get feedback on what I’m thinking. It’s funny, no one I know agrees that coal stocks look interesting here.
So we can start there. It’s not data driven evidence of hatred, but through my experiences I can’t say it’s not a good starting point. The reason I’m bringing it up today is because of the incredibly tight consolidation taking place since March. Almost five months ago I put up a note suggesting it was time to own Coal stocks for a variety of reasons. Since then, the $KOL exchange traded fund is only up 2-3%, but it’s the consolidation that’s taken place since then that really gets me excited.
Look at this weekly chart of $KOL. It’s rare to find a tight range like this for such a prolonged period of time. We’re going on almost 4 months of this action:
7-23-14 kol
The best way to execute, in my opinion, is to wait for the breakout. Eventually, there will be a resolution. In my opinion it’s going to be to the upside, which could present a monster rally that would return 40-50% in a very short period of time. I would consider a confirmed breakout to be a weekly close above any of these others 19-19.15ish. It really all depends. I would love to see a gap higher out of this range. Some might call it a, “gap and go”. It’s hard to predict at this point. But this consolidation can’t be ignored. Epic moves have been born out of this type of pattern. So I’m waiting patiently.
I thought it would be prudent to bring up this recent development. It has nothing to do with who our president is or who he isn’t, it has nothing to do with alternative energies and even less to do with any geopolitical turmoil. This is strictly based on supply and demand dynamics. And looking at this chart, if demand can exceed supply just enough to break this out of it’s range, look out!
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