Copper

  • 03 Nov
    This Stock Could See A Fivefold Increase In Price, But The Risks Are Huge

    This Stock Could See A Fivefold Increase In Price, But The Risks Are Huge

    Being a value growth investor, I’d recommend a stock that has a strong margin of safety—thus little chance of permanent capital loss—while also having huge upside coming from market recognized or unrecognized catalysts.

    There are some investments out there where the potential loss is total while the potential upside is extremely high. I wouldn’t call these investments, and only would recommend one as it’s more like a bet.

    To keep things interesting, today I want to share with you such a bet by discussing a non-linear stock with out of the box thinking management, McEwen Mining (NYSE: MUX). MUX will give you a clue as to how I research potential investments and analyze their risk reward ratios.



    McEwen Mining

    MUX is a producing, developing, and exploring gold/coper miner. Currently, it produces only gold, so the market puts it into the gold miners basket. Nevertheless, it has 3 producing mines in Ontario, Mexico, and Argentina, two gold mines in development, and various exploration targets. More →

  • 23 Oct
    This Is How You Get Returns Over 1,000%

    This Is How You Get Returns Over 1,000%

    • There are many examples of simple investments that returned more than 1,000%, some even 10,000%, over the last few decades.
    • In order to take advantage of such investments, you have to look at the extremes of what could happen in the next few years that aren’t included in the current economic models that use statistical averages.
    • Statistical averages are what you have to look for to protect you from negative surprises and open your portfolio to extremely positive surprises.



    Introduction

    A friend of mine just sold his home in Central London for 2.4 million pounds which is an average price in London. However, what’s interesting is that he bought the property in 1996 for just 160,000 pounds. In just 20 years, the value of his London property increased 15 times.

    Another example I have is from a recent WSJ article where a Park Avenue penthouse is selling for about $18 million. The funny thing is that the property was empty for 27 years as it was owned by the Former Republic of Yugoslavia which also allows us to know what the purchase price was in 1975. The purchase price was $100,000. In 40 years, the value of this property in New York increased 180 times. More →

  • 05 Oct
    The Electric Vehicle Trend Will Be Explosive – Here’s How To Profit On It

    The Electric Vehicle Trend Will Be Explosive – Here’s How To Profit On It



    • The latest news surrounding the electric vehicle market is extremely positive.
    • However, not every related investment will do well. We’ll discuss car manufacturers, graphite, cobalt, nickel, copper, and lithium.
    • There’s one way to profit from the growing trend that carries little risk, is already profitable, and definitely offers high upside in the next decade.

    Introduction

    We all know transportation will be electric in the future. However, this doesn’t mean that every investment in the sector is a smart investment.

    A great example of how investments in hot trends can work out is Amazon (NASDAQ: AMZN), and this example is the best-case scenario out there. More →

  • 31 Aug
    How Things Have Quickly Changed On The Outlook For Copper

    How Things Have Quickly Changed On The Outlook For Copper

    • Everyone was negative on copper just a year ago. Today, most are positive.
    • There are two factors that help determine whether there will be a future turnaround or not for a commodity.
    • The nice thing is that all the data is easily accessible with a bit of research and a long term view.

    Introduction

    I’ve been writing about the imminent supply gap in copper for about a year and a half now. However, when I first came out with this thesis, the copper environment was extremely negative.

    The following headlines are an example of just some of the negativity surrounding copper in the last three years. More →

  • 06 Jul
    The Only Way To Invest In The Automotive Sector Today

    The Only Way To Invest In The Automotive Sector Today

    • Automotive stocks are best bought in a recession. I’ll explain how patience pays off.
    • There are no indications of a recession, but car sales have already reached their ceiling.
    • However, a new trend is booming and you may want to expose your portfolio to it.

    Introduction

    The automotive industry is a perfect example of sector cyclicality. What’s important for us investors is that cyclicality offers great investment opportunities. However, a lot of patience is necessary as such opportunities usually only arise once in a decade and only when there is a recession.

    If we take a look at Ford’s (NYSE: F) stock price over the last 30 years, we can see how stock price dips coincide with economic recessions. The stock was the cheapest in 1991, 2002, 2008, and 2012 when there was a recession in Europe. More →

  • 22 Jun
    Why I’m Getting More And More Excited About Copper

    Why I’m Getting More And More Excited About Copper

    • Forecasts on electric vehicle market penetration are getting more bullish.
    • At the same time, copper is already in a supply deficit.
    • Every copper miner is different, so be careful out there.

    Introduction

    I’m a value investor looking for low risk investments that will lead to high returns. Therefore, when I hear Elon Musk talk, I don’t get excited as an investor because the risk is too high for any potential return as there is a probability that TSLA goes bankrupt when a recession comes along or that it doesn’t turn a profit in the next decade as margins will probably get competed away. More →

  • 24 Apr
    Global Growth Is Finally Getting Some Traction, Be Sure Your Money Follows

    Global Growth Is Finally Getting Some Traction, Be Sure Your Money Follows

    • Macroeconomic trends are extremely important for your investing or trading returns.
    • The IMF’s World Economic Outlook is a great starting point for understanding where the risks and opportunities lie.
    • Long term trends show emerging markets and commodities are the place to be.

    Introduction

    Investing is both difficult and easy. It’s difficult if you try to guess what the market’s sentiment will be next week or next month, while it’s easy if you simply look at slow moving structural macroeconomic trends. These trends are like little forces that shape the market, similar to the gravitational forces among planets in our solar system. More →

  • 19 Feb
    Sunday Edition: Copper May Be The Strongest New Bull Market Over The Coming Decade

    Sunday Edition: Copper May Be The Strongest New Bull Market Over The Coming Decade

    The Escondida mine problems are only the tip of the iceberg for Copper, which appears to be in a bit of a panic since workers of BHP Billiton Ltd.’s Escondida copper mine in Chile started an indefinite strike on February 9, forcing a force majeure declaration on its shipments.

    Adding more fuel to the fire is a one-month delay to exports at Indonesia’s Grasberg mine when Freeport-McMoRan suspended copper concentrate output while in negotiations with the government over the terms of its mining permit which has expired. More →

  • 17 Feb
    Sven Is Still Bullish On Copper And You Should Be Too

    Sven Is Still Bullish On Copper And You Should Be Too

    • Copper bottomed in 2016 and the outlook remains bullish in the long term.
    • The short term could also offer positives due to strikes and political issues.
    • The long term balance for copper should be above $3.5 per pound and that price will be increasing due to lower copper ore grades and higher mining costs.

    Introduction

    The last time I wrote exclusively on copper was in April 2016. The bullish article is available here. Since then, copper prices have increased 22%, from $2.22 per pound to the current $2.73. As the dollar has also strengthened by 7% since then, we should add 7% to the current copper price to show the real appreciation in copper. Thus, copper would be at $2.92 in real terms. More →

  • 30 Jan
    There’s Buzz Around Cobalt But Don’t Buy Yet

    There’s Buzz Around Cobalt But Don’t Buy Yet

    • The cobalt hype reminds me of the 2008 uranium and 2011 rare earth element spikes. Both ended badly for investors.
    • The bull case is tempting, but you should always investigate mining costs of junior miners because the cheapest way to get to cobalt is as a by-product, and there are big copper mines that can supply it.
    • Be careful of dilutive capital raises, liquidity issues, and stock liquidity and all other issues that penny stocks have, no matter how attractive the cobalt pitch might seem.

    Introduction

    Many of you might be wondering what’s going on with cobalt as its price has gone up lately which has created an interesting buzz in the financial world.

    On top of it, many mention cobalt alongside sexy names like Tesla (NASDAQ: TSLA) which further increases the buzz.

    Today I’ll shed some light on cobalt in order to see if there is a long term profitable trend forming in its supply and demand, or if it’s just a fad like rare earths, graphite, or uranium were back in their days. More →

1 2