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Monday
Nov292010

Uranium Resources Incorporated Up 8.81% Today

URRE Chart 30 Nov 2010.JPG


As the chart shows Uranium Resources Incorporated (URRE) has increased seven fold since August. The yawning gap between the stock price and the 200mda which is way out of kilter gives us cause for concern. However, if uranium prices keep making progress then investors will be enticed to take a position in this sector. The market capitalisation of URRE is around $320 million with 92 million shares outstanding, so it doesnt take much to push the price either way. The RSI is standing at 81.57 and rubbing up against the ceiling in terms of being overbought, along with the MACD and the STO, however, uranium prices are slowly but steadily heading north as the chart below indicates. It looks like a csae of the fundamentals ruling the day over the technical analysis, at least for now.

Uranium Chart 30 Nov 2010.JPG

Uranium Resources, Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas, where the Company has ISR mining projects that are currently being restored at its Kingsville Dome, Rosita and Vasquez projects.

URI's intrinsic value lies in the 183,000 acres and 101.4 million pounds of in-place mineralized uranium holdings in New Mexico. The Company acquired these properties over the past 20 years along with an extensive information database. URI's strategy is to capitalize on the prospects for long-term strong global demand for uranium by fully exploiting its resource base in Texas and New Mexico, acquiring new assets and through joint ventures or partnerships.


In conclusion we are of the opinion that now is a good time to pick up a few of your favourite uranium stocks, go gently and adopt a 'layering in' approach to your acquisitions programme. Also be prepared for a lot of volatility in future, try and stick with the big picture and ignore the white noise.







We have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move, if you would like to comment on this idea, then please click here.

Over in the options trading pit the team have are updating the progress chart to include closed trades, now 53 winners and out of 55 trades, having been stopped out of a trade with a profit of 41.84% made in just 8 days.

sk chart 19 Nov 2010.JPG



The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.


Thursday
Nov252010

Denison Mines Corporation up 17.13% Yesterday

DNN Chart 26 Nov 2010.JPG




Just a quick note for the supporters of Denison Mines Corporation (DNN) which has popped up yesterday on a heavy volume, DNN has pushed higher with a gain of 17.13% or $0.43, to close at $2.94, possibly due to the rumour that uranium has hit $60/lb. The technical indicators are positive and have room to move higher so hopefully we just might see a little more progress over the coming days.

We purchased Denison Mines back in January 2009 for $1.66 so we now have a paper profit of about 75%, so at least its a step in the right direction. We may pick up a few more on dips in the future, but we have yet to make that decision. We will of course keep you posted if we do decide to commence buying in earnest.

Denison Mines Corporation trades on the AMEX under the symbol of DNN and on the Toronto Stock Exchange as DML. (In Toronto today DML gained another 8% or so)

Market capitalization is $998.78 million, average volume ranging from 2 -6 million shares traded, 52 week high $3.09, 52 week low $1.08, closed yesterday at $2.94.


Other uranium stocks doing well yesterday are as follows:

MGA Up 11.76%
CCJ Up 5.60%
UEX Up 6.10%
UUU Up 8,65%
URE Up 2.50%

If you have your eye on a few uranium stocks now might be a good time to start a 'layering in' approach to acquiring them gently over time.

Meanwhile back at the ranch during our knockabout sessions we have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move, if you would like to comment on this idea, then please click here.

Over in the options trading pit the team have are updating the progress chart to include closed trades, now 53 winners and out of 55 trades, having been stopped out of a trade with a profit of 41.84% made in just 8 days.


SK Chart 25 Nov 2010.JPG


The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

Uranium Spot Price Chart 26 Nov 2010.JPG
Wednesday
Nov242010

Crosshair Exploration and Mining Corporation Quadrupled since July 2010

CXX Chart 25 Nov 2010.JPG



We kick off with a quick look at todays chart for Crosshair Exploration and Mining Corporation (CXX) which is another uranium stock that has done well recently and has quadrupled since July, gaining 25% today on heavy volume when 2.4 million shares changed hands. The RSI is standing at 80.72, which puts us well into the overbought zone so there might be a breather on the cards. The MACD and the STO are also up there bouncing on the ceiling which may entice chartist to take profits, however, this sector is on the move and could attract more investment over the short term.

Having purchased this uranium stock at $0.25 on 6th January 2009 with the view to participating in its recovery we are pleased to see it close at $0.45 today, to show a paper profit of around 80%.



On the news front Crosshair has closed a brokered private placement with BayFront Capital Partners Ltd. (the "Agent") to accredited investors of subscription receipts of Crosshair ("Subscription Receipts") for gross proceeds of $7 million. Upon satisfaction of the escrow release conditions set out below, the Subscription Receipts will be automatically converted (for no additional consideration) into units of Crosshair (the "Units") at an effective price of $0.70 per Unit, with each whole Unit being comprised of one post-consolidation common share of Crosshair ("Common Share") and one Common Share purchase warrant of Crosshair (a "Warrant").Each Warrant will be exercisable for one Common Share at an exercise price of $1.00 per Common Share until November 23, 2012.

To read this news release in full please click here.

Crosshair currently trades on the Toronto Stock Exchange as CXX and the NYSE Amex as CXZ.

Crosshair’s market capitalisation is $59.16 million with 131.48 million shares outstanding, the 52-week high is $0.47 and the 52-week low is $0.10 and is trading at $0.45 as we write.


During our knockabout sessions we have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move, if you would like to comment on this idea, then please click here.

Over in the options trading pit the team have are updating the progress chart to include closed trades, now 52 winners and out of 54 trades, having been stopped out of a trade with a profit of 41.84% made in just 9 days.

sk chart 19 Nov 2010.JPG



The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

Tuesday
Nov232010

Mawson Resources Limited: Up 100% in a week

MAW Chart 24 Nov 2010.JPG


As various uranium stocks begin to 'pop' Mawson Resources Limited (MAW) joined in the move as its stock price increased 100% in a week. Taking a quick look at the chart we can see that a sudden increase in the volume accompanied the stock price hitting the roof, doubling in a week. The technical indicators suggest that this stock is extremely overbought so go gently if and when you do decide to acquire it. For disclosure purposes we do not own it, however, on a day like this we wish we did own it.

The Company is exploring at Rompas in Finland, a new discovery with BONANZA GOLD where samples up to 12,800 g/t (373 oz/ton) gold and 43.6% uranium have been identified. In addition, the Company is exploring for gold and copper in the highly prospective Cordillera of Peru, with a focus on a new high grade gold discovery at Alto Quemado.

Mawson is a leading Scandinavian uranium exploration company, with advanced projects in Sweden and Finland. As the European Union moves to reduce its reliance on carbon-based energy sources and continues to debate energy security, Mawson is well positioned to provide Europe with the option to fuel its future. Areva NC of France holds 11% of the Company and provides Mawson with an active technical partner.

With a strong cash position and a multi-jurisdiction European and South American portfolio, Mawson is ideally positioned to enhance its status as a leader in the uranium and gold industries.


In its latest news release the company announced the first channel sample results from the Company's 100% owned Rompas gold-uranium project in northern Finland.

Highlights from 39 surface channel samples include 0.3m @ 1,866 g/t Au and 8.0 % U, and 0.26m @ 1,510 g/t Au and 3.95 % U (Table 1, Figures 1 and 2). The diamond saw-cut channel samples are considered the first representative samples collected at Rompas.

Included in this batch were 10 mineralized grab samples that averaged 672 g/t Au and 2.06 % U and ranged from 0.2 g/t to 3,230 g/t Au and 14.6 ppm to >15% U. Grab samples are selective by nature and are unlikely to represent average grades on the property.

All samples reported come from Rompas South. The channels were taken over a strike distance of 75 metres and grab samples over an area of 65m by 125m (Figure 1). To date, hundreds of gold and uranium showings have been discovered at Rompas over a surface area exceeding 6.5km in strike and 200m average width. A total of 984 rock chip samples (including 111 highly radioactive samples) remain to be reported by the laboratory from the field program conducted this summer at Rompas.

These are excellent results so far and as a two pronged attack on both gold and uranium this stock is shaping up very well indeed.

Its also a favourite of Micky Fulp who discussed it on BNN earlier today, he also give Strathmore Minerals (STM) a mention too, which was up 6.6% today.




Mawson Resources Limited can be found on the Toronto Stock Exchange under the symbol of MAW, Frankfurt as MRY, and on pink sheets as MESNF


The company has a market capitalization of $97.07 million, shares outstanding: 49,747,253, Cash position is around C$14 million.



Over in the options trading pit the team have updated the progress chart to include closed trades, now 51 winners and out of 53 trades.

sk chart 19 Nov 2010.JPG



The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

BNN Uranium spot price 24 Nov 2010.JPG
Friday
Nov192010

Neal Dingmann: The Play’s the Thing

Source: Brian Sylvester of The Energy Report 11/18/10
http://www.theenergyreport.com/pub/na/7908

Neal Dingmann.JPG

He may not be a theater critic, but SunTrust Robinson-Humphrey Analyst Neal Dingmann is amply qualified to critique the best plays in the energy sector—onshore and offshore, natural gas and oil and even his list of the top-five shale plays. His exclusive interview with The Energy Report also touches on recent and potential mergers and the power of politics.

The Energy Report: Neal, last week Chevron Corporation (NYSE:CVX) offered US$3.2 billion in cash and shares for Atlas Energy, Inc. (NASDAQ:ATLS) and agreed to assume Atlas' debt. Thus, for about US$4.2 billion Chevron gets a significant foothold in the Marcellus Shale, where most of Atlas' trillion cubic feet (tcf) of natural gas reserves are located. What messages does that deal send?

Neal Dingmann: I think there are probably two messages. First, it's pretty clear that a deal like this shows that the majors, in this case Chevron, have a long-term positive view on natural gas. Obviously, there's a lot of near-term cautiousness to outright bearishness on natural gas in the market right now. However, I don't know if you want to call it an extreme bullish view; but, clearly, Chevron is at least somewhat bullish to pay this kind of number for these assets. Secondly, I think it says that Chevron believes in the newer type of technology that will bring gas out of these shale plays. They're telling us that gas prices should be sufficient as long as the technology will work to deliver that gas.

TER: Isn't it also about companies taking the view that mergers are a better way to develop these assets than financing by diluting equity or taking out loans? For example, we've seen Exxon Mobil Corp. (NYSE:XOM) take out XTO Energy Inc. This is a similar but much smaller-scale merger.

ND: This is Chevron, along with the other large companies, telling us that in order for it to keep its recent growth profiles, it's running out of other options. Would the company rather go with some sort of domestic oil play if it could? I think absolutely. Offshore drilling is very difficult; international is becoming even more difficult. So, choices are becoming fewer and farther between.

You also have to look at the seller side of the equation. Two to three years ago, conventional wells were relatively cheap. The plays in these unconventional shale wells are still very expensive. You need good-sized capital or a bankroll to develop them. It might make sense to have economy of scale here.

TER: Did the Chevron merger catch you off guard?

ND: Not really. I think last year's Exxon/XTO deal is the one I think caught everybody off guard because gas prices were still heading down. The Chevron merger was, I believe, 10 times the size. But ever since the Exxon/XTO merger happened, I would say probably nothing is going to catch us completely off guard.

TER: In the June interview you did with Bloomberg, you said that onshore producers would outperform offshore producers for months after BP's Macondo accident. Time has passed. Is there still a performance gap?

ND: There hasn't been as much of a performance gap as expected. In the case of Energy XXI (NASDAQ:EXXI) and some other offshore stocks, the market initially hit the stocks rather hard. However, up to the moratorium being lifted, you saw a nice rebound. Then, when there was talk about issuing permits and some offshore companies actually received permits, you saw an even larger rebound.

What still makes me a bit cautious is that we haven't yet heard much from the government about the final rules and regulations about infrastructure, procurement or even about the well-liability cap. So, I'm still relatively cautious on the offshore group versus the onshore.

TER: What estimates are the regulators talking about for the liability cap?

ND: I've heard everything from a billion on up to several billion to unlimited liability. The problem with those types of numbers is that they would essentially put some of the smaller independents out of business. As someone at one small, independent public company said, 'With that kind of liability you would have to self-insure.' You're essentially putting your company at risk for each well you drill. You just couldn't afford to do that. Well-cap liability is going to be a big issue when Congress returns.

TER: Could we see some mergers on that side?

ND: I think most definitely. Having a Republican House, you might think things won't get worse. If I had to bet, I wouldn't think the well-cap liability would get too onerous. But if it did, I think it could force some acquisitions.

TER: Sticking with offshore producers, are there some you think are poised to rebound in 2011?

ND: There are a couple. Obviously, Energy XXI comes to a lot of people's minds. What makes that one interesting is its nice oil base production of around 28,000 barrels per day (bpd). It also has a pretty nice working interest—call it between 15% to 20% interest—of some McMoRan Exploration Co. (NYSE:MMR) wells, the Davy Jones and Blackbeard prospects. They are shallow water but very deep gas wells that have big potential. In addition to those big prospects, Energy XXI has some great baseline support and the kind of diversification one looks for.

Another one that's been on a run and looks interesting is W&T Offshore Inc. (NYSE:WTI). It just bought a big deepwater piece from Royal Dutch Shell Plc (NYSE:RDS.A). I believe it was for about US$450 million. Founder and CEO Tracy Krohn generally seems to develop newly acquired properties very well. The first year or so after he acquires a property, we've, historically, seen a pretty good ramp-up. This could be the case with these new properties.

TER: Looking through some of your recent research, you have quite a number of companies with buy ratings. Since the research was published, some have exceeded your targets. Let's go through some of those companies, starting with TransAtlantic Petroleum Ltd. (TSX:TNP, NYSE:TAT). It's trading at about US$3.45. You had a target of $5. What supports that?

ND: This is a company with extremely good management. It's managed by Malone Mitchell, who previously operated Riata Energy. He has several million acres in Turkey, but the real key is that he runs all his own service equipment. The company is now producing about 2,500 bpd. Next year, the potential is there to exit more than 15,000 bpd and two years later, to exit more than 25,000 bpd. TransAtlantic could see production ramp-up tenfold within a couple of years for two reasons: 1) He has the acreage to support it; and 2) He's got all the oil field services to make sure that is done correctly—that the wells are drilled properly. I like that combination.

TER: At a slightly higher price, Venoco, Inc. (NYSE:VQ) is trading at $17. Your prior price target was US$25. Why the revision?

ND: Venoco's pretty interesting. In a sense, you are really betting on its core gas position in the Sacramento Basin. It provides nice baseline cash flow because it's gas and is well hedged for the next couple of years. One would say, 'well that's not very exciting.' But the really attractive upside is Venoco's Monterey Shale play. Venoco has a couple of thousand acres there, and it's just Venoco and Occidental Petroleum Corp. (NYSE:OXY) in this play.

This Monterey Shale is a very interesting oil play on the coast of California. Estimates say there could be more than 100 million barrels in place, though the estimates could be extremely high. This play is almost like an offshore. You have a lot of upside, but you've got a lot of risk because we just don't know about the timing. The company's only going to drill four or five horizontal Monterey Shale wells this year and probably 15–20 next year; so, you're not going to see a ton of results. But as those results unfold, I think you're going to have a lot of people very excited.

TER: Northern Oil & Gas Inc. (NYSE:NOG) has already exceeded your prior target of US$20. Is there room for more, or do you have a hold on it now?

ND: I need to revisit this one, following its last conference call. In the past, I was hesitant to put a buy rating on it and I've become very positive about a non-operated strategy. But Northern has done a very good job. It kept costs down to a fraction of what the operators pay, and it has great relationships out in the Bakken. Then to cap all that off, last quarter the company's guidance was that it would ramp-up somewhere around 30%–35% on a sequential, quarterly growth basis. It actually increased by about 40%. I'm not necessarily going to automatically bump it up, but I can tell you it's sure hard to bet against these guys given their reports the last few quarters.

TER: So, you're not willing to speculate on what your revised target might be?

ND: No. I haven't had a chance to catch up with management. The part that makes me a little bit nervous is that winter is coming. Up in the Bakken, you have a little bit of an activity slowdown in the winter. But I'm still telling clients to look at the stock, and if they are going to buy to buy it on a full 2011 calendar year. Everything that I'm seeing still checks out quite positively.

TER: When you value these companies, you do a multiple of cash flow, correct?

ND: Generally, yes. For companies that are on a go-forward basis, I'll run a cash flow. With newer or brand-new companies that have little to no cash flow or don't have enough of a cash-flow history, I'll try to come up with a net asset value. I might not know how much cash flow it's going to kick off or what it might have to do behind the scenes in terms of seismic or exploration—things that are not going to boost cash flow overnight. But clearly a company's assets—that being its acreage, reserves and equipment it holds—any of that must have a value. So, a lot of times I'll look at assets.

TER: But how do you determine that multiple?

ND: I like to use a relative basis. Does Company A deserve a 20% or 30% premium to Company B if it operates in various regions? I'll break companies out by whether they are offshore or onshore. If they're onshore, where are they? Are they in Marcellus or Eagle Ford? What groups are trading at that level today? I also look from a historical basis. I think the answer is in the combination of the relative and historical. You might have a stock that deserves a premium to its peers because it's growing production 40% a year, while its peers are at 10%. But comparing it on a historical basis helps make sure it's not too far out of line regarding what's it's historically traded at.

TER: Would you be willing to rank the shale plays right now? Maybe the top-five shale plays in terms of their premiums.

ND: Clearly, you can't get any better than the Bakken. The returns are there. Everything is there. That's going to be your number-one choice. I think that with the natural gas liquids (NGLs) it has, the Eagle Ford has to be, not a close number two, but still strong nonetheless. The number three and four positions are going to be interesting because they're a little bit newer, still unfolding. I would say it would be either the Marcellus or the Niobrara. Niobrara is likely going to be much oilier and have much more liquids. But in terms of pure acreage, the pure size of the Marcellus makes it one you can't get away from. The Marcellus may be a little different because there could be dry gas. So, those two plays would be three and four.

At number five, I would put the Haynesville Shale. Haynesville is still a very good play. I would call it sort of a lower economic play because we know it's mostly going to be dry gas. The difference with the Bakken, Eagle Ford and Niobrara is that they are going to be oil or liquid, both of which clearly demand a very nice premium right now.

TER: I also want to ask you about Clayton Williams Energy Inc. (NASDAQ:CWEI). This company has the biggest market cap by far. It's trading at around US$73.07 and you had a target of US$85 on it. What's your read there?

ND: To me, Clayton is a very simple company; it's just blocking and tackling. Historically, Clayton was in the penalty box because it had a number of dry holes. That's changed in the last couple of years. It's been doing what I call 'just singles and doubles'—mostly just premium drilling and Austin Chalk drilling. These types of things have no exploration risk, in my mind.

If you look at where the stock is trading right now and go back to my old adage about a pure multiple, the stock would actually be closer to a US$80 target. The discount is there because Clayton Williams and his family own more than 60% of the shares and the stock is pretty illiquid. Without the illiquidity, I would clearly say the stock is worth more than US$85.

TER: What other companies are you following?

ND: One that I think is noteworthy is Gran Tierra Energy Inc. (NYSE:GTE; TSX:GTE). It has done a tremendous job of growing the company with virtually no debt. Right now, the company has well over US$3 million in cash and no debt. That's remarkable for a company of that size. But what's interesting is the company's core asset base, called Costayaco. Costayaco is generating +15,000 bpd. On top of that, the company's talked about two or three potential new discoveries. One is called the Moqueta, which is a new play wherein it's drilling the fourth well. Gran Tierra's also got the Taruka-1. The point is that besides the cash, lack of debt and stable base assets, Gran Tierra has some very exciting exploratory projects, which really give the stock some upside.

TER: Do you have some parting thoughts on what's going on in the oil and gas sector?

ND: Obviously, the premium of oil versus gas sticks out. The dichotomy is there when you look at oil versus gas stocks. You have oil at US$82 and gas is at US$4; that is a 42:1 multiple. That has to balance out a little. I don't mean to insinuate that we need to go back to a 6:1 multiple, but maybe we can go back to at least 15:1. Until that happens, the big premium is going to be on oil and the liquids. Albeit, you might have some periodic valuations when you have deals like the Chevron deal. Overall, as we see the next few months play out, the oil and the natural gas liquids companies will clearly get the premium value.

TER: Thank you for your time and your insights, Neal.

Neal Dingmann has more than 12 years of equity research experience, most recently at Wunderlich Securities where he covered over 30 companies in the exploration and production and oilfield services sectors. He previously held similar positions at Dahlman Rose, Pritchard Capital, RBC Capital Markets, and Banc of America Securities, where he worked on the number one-ranked Oilfield Services research team.

Neal was recognized last year by The Wall Street Journal as "Best on the Street," and as a "Home Run Hitter" by Institutional Investor magazine. He is a frequent guest on Bloomberg TV and has a large network of industry contacts. He received his Masters in business administration from the University of Minnesota and his Bachelor of Arts degree in business from the University of Arkansas.

Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Expert Insights page.

DISCLOSURE:
1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Energy Report: Atlas, Energy XXI, Shell and TransAtlantic.
3) Neal Dingmann: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None.

Streetwise - The Energy Report is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.
The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.
From time to time, Streetwise Reports LLC and its  directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.
Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.
Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.
Streetwise Reports LLC
P.O. Box 1099
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Tel.: (707) 282-5593
Fax: (707) 282-5592
Email: jmallin@streetwisereports.com


Over in the options trading pit the team have just updated the progress chart to includes yesterdays closed trades, now 51 winners and out of 53 trades, the latest two trades have been written up on gold-prices.

sk chart 19 Nov 2010.JPG



The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

Friday
Nov192010

Stuck for a Christmas present for someone dear to you?

You can make this purchase without even leaving your seat, its different, valuable, inexpensive and could prove to be beneficial to them for years to come.

Subscribe for 6 months - $499

 

Subscribe for 12 months - $799

 


Or you could battle through shops for hours and buy a cardigan, make sure that they like colour before you flash the plastic. Please check our trading record here.

Thursday
Nov182010

LAM Up 5.29%, MGA Up 5.19%, URE Up 8.81%, URZ Up 8.65%, UUU Up 6.24%, CCJ Up 2.94%, CXX Up 16.13%

LAM Chart 19 Nov 2010.JPG

Another cracking day for uranium stocks with most of them putting on excellent gains and in some cases they have doubled in three months which is terrific for those who are in a position to acquire some of these beaten down stocks.

The above chart shows Laramide Resources Limited (LAM) up from a $1.00 in August to $2.20 as we write and it now appears to be in a steady upward trend. The STO has just turned positive and from a low level which is nice to see, hopefully an indication of things to come.

The chart below depicts the spot price for uranium which we can see is also trending north and lets hope that it continues as many investors are under water with stocks acquired at much higher prices. This is the second week in a row that the price has moved higher, we could see some serious action if uranium can push on to the $65/lb level.

Uranium Spot chart 19 Nov 2010.JPG

A snippet from TradeTech as follows: November 12, 2010–The spot uranium price continued its climb upward for the second consecutive week, but failed to break through the $60.00 price barrier. Additionally, the pace slowed with TradeTech’s Uranium Spot Price Indicator moving higher by $1.75 to $59.25 per pound U3O8, as compared to the $5.50 and $4.00 per pound increases posted in recent weeks. A total of six transactions were concluded this week, with traders and financial entities purchasing the bulk of the material sold. China and its appetite for uranium supply continues to attract attention from market participants and the investment community, with the announcement today that China Guangdong Nuclear Power Group signed a contract with Kazakhstan’s Kazatomprom. Delivery timing continues to be a significant factor in the spot market. Near-term uranium supplies for delivery by year-end are extremely thin, and the emergence of significant mid- and long-term demand, combined with buyers competing to purchase material, continues to exert upward pressure on prices


Over in the options trading pit the team have just updated the progress chart to includes yesterdays closed trades, now 51 winners and out of 53 trades, the latest two trades will be written up on gold-prices later today.

sk chart 19 Nov 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

Wednesday
Nov172010

Crosshair Exploration and Mining Corporation Up 24% Today

CXX Chart 18 Nov 2010.JPG

We kick off with a quick look at todays chart for Crosshair Exploration and Mining Corporation (CXX) which is another uranium stock that has doubled since July, gaining 24% today on heavy volume when 2.4 million shares changed hands. The RSI is a touch high at the moment so we might get a breather might be on the cards. The MACD and the STO are also up there too which may entice chartist to take profits.


Having purchased this uranium stock at $0.25 on 6th January 2009 with the view to participating in its recovery we are pleased to see it close at $0.31 today, to show a paper profit of around 24%.



This is what the chart looked like back then:

CXX Chart 5 Jan 2010.JPG


A summary of their activity is as follows and can be found on their web site:



Crosshair is a dominant player in the exploration and development of gold, uranium and vanadium in the US and Canada. Crosshair continues to advance its gold projects in Newfoundland. The company recently completed 7,220 m of drilling and has a bulk sampling program that is set to commence Q3 2010. Stantec Consulting Ltd. has recently been contracted to prepare an Environmental Compliance Plan and design a method of removing the overburden for the trenching that is anticipated to begin September 2010.

The Bootheel Project is located in uranium mining friendly Wyoming and with its in-mining potential and initial NI 43-101 uranium resource estimate of 1.09 M lbs indicated and an additional 3.25 M lbs inferred, the project has exceeded the minimum mining threshold and is designed for near term production.

The CMB Uranium/Vanadium Project is located in Labrador, Canada and Crosshair has demonstrated the multi-deposit potential of the project by successfully developing four currently defined resources -- C Zone, Area 1, Armstrong and Two Time Zone. All four resources are open for expansion.

Vanadium, already irreplaceable in several industries including aerospace, aviation and construction due to its unrivaled ability to strengthen steel, has also become very important in the advancement of battery technology and its use for connecting large-scale power grids. Phase 1 of the Vanadium Resource Expansion Program is complete and Phase 2 is set to commence at the beginning of July 2010.

Crosshair currently trades on the Toronto Stock Exchange as CXX and the NYSE Amex as CXZ.

Crosshair's market capitalisation is $40.76 million with 131.48 million shares outstanding, the 52-week high is $0.32 and the 52-week low is $0.10 and is trading at $0.31 as we write.

Over in the options trading pit the team have just updated the progress chart to include last weeks closed trades as follows:

sk Chart 14 November 2010.JPG


The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

Tuesday
Nov162010

Josh Young Finds Value in Oil and Gas E&Ps


Source: Brian Sylvester of The Energy Report 11/16/10
http://www.theenergyreport.com/pub/na/7876

Josh Young.JPG

Josh Young, a portfolio manager with Los Angeles, California-based Young Capital Management, is a value investor on the hunt for undervalued companies in the oil and gas space. He launched his fund in September, has earned enticing returns so far, and in this exclusive interview with The Energy Report, discusses some of his hedge fund's equity holdings that are poised to get some love in the market.

The Energy Report: Josh, What makes your hedge fund different from others?

Josh Young: We're focused on oil and gas investments, and we make those investments generally through oil and gas (O&G) equities. We focus on companies that are generally under-followed and find companies which are trading at a big discount to their intrinsic value, with identifiable catalysts that are going to unlock that value.

On the short side, we find companies with some sort of fraudulent reporting or with very high valuations that are in fundamentally challenging situations that they are unlikely to work out.

TER: You're a true value investor.

JY: Yes, I am philosophically a value investor. I focus on the oil and gas space because there's a lot of volatility and there are lots of changes and catalysts. With the right approach to managing the commodity risk, there are regularly opportunities to generate significant returns and invest at the sort of discount to intrinsic value that can't be found in other sectors these days because there's so much investment competition.

TER: You mentioned that you buy companies that are trading at a large discount to their intrinsic value and that have identifiable catalysts for further growth. Do you have much trouble finding those companies in the energy space? And what are some catalysts you like to see?

JY: The opportunities are there, but it takes a rigorous investment process to exploit them. It's an incredibly labor-intensive process to identify those companies, research them and make sure they are, in fact, undervalued and that the market is missing something. The risk-adjusted returns from this space, and that I've generated running the strategy, justify the effort.

I identify catalysts as a part of my investment process. I look for companies that have already announced that they're going to sell assets or that they're going to do an equity raise that will help them finance substantial growth. Those are some examples of catalysts.

TER: What about drill results? Would you consider those catalysts?

JY: Yes, but those are generally harder to predict and so I don't focus on them as much. Sometimes it's possible to figure them out before the market does, and sometimes the market does not immediately price in meaningful drilling results. But I'm not generally looking to make investments in anticipation of wildcat exploration drilling prospects.

TER: Most of my experience is on the mining side. I noticed when I was combing through your research, a lot of the companies you follow have small share floats compared to mining companies at similar stages of development. Is there a certain range you look for in terms of the float size? For example, if a company has more than 50 million shares outstanding and isn't as far along the development path as a comparable company with 30 million shares, is that a red flag for you?

JY: I'm less concerned with the number of shares outstanding and more concerned with the percentage of shares outstanding that are in the free float versus percentage held by one or more major shareholders, especially when those major holders might have to liquidate some or all of their holdings. I definitely watch for that. But I honestly don't care if there's 1,000 shares or a billion shares outstanding. I care about the fundamentals of the investment and the liquidity of the stock.

TER: So, you don't like companies that are held largely by a handful of shareholders? Is that what you're saying?

JY: It depends on the situation. Let me explain. One of the companies I follow, Gastar Exploration Ltd. (NYSE:GST), had several large shareholders, and the share price suffered as those large shareholders exited their positions. In 2008, about 20%–25% of Gastar stock was held by a hedge fund that dissolved and the Gastar stock got dumped into the market as a part of the dissolution process. That substantially hurt its stock price. More recently, another investment fund that held more than 10% of Gastar also dissolved its energy fund. There were a number of other factors but that, essentially, led to Gastar's stock price falling from $6. to below $3. even though the company was doing better than before. That said, it's actually another catalyst in that when a major shareholder is no longer a shareholder it can create a really positive environment for the stock and allow it to start appreciating closer to its fair value.

TER: During a recent conference, Barclays VP of Commodities Biliana Pehlivanova said the equity markets like seeing gas production growth from companies because the markets consider it a measure of success. She added that the market rewards gas producers for the metric and, further, investors won't punish companies for low commodity prices because they figure it's beyond any one company's ability to correct the situation. Do you believe that's what's responsible for the growing disconnect between share prices and commodity price in the natural gas space?

JY: I think it's complicated. I'm not sure that's necessarily the answer. A few big things have been happening. First, companies have been drilling into a low gas price because they're hedged. They view their hedges as locking in high prices and, even though gas is selling at $3.50 or $4, they make another $2 or $3 on their hedge contract. They're basically producing gas at $7. Investors see the earnings and cash flow as if the company was actually achieving a $7 gas price.

In other cases, companies spent a significant amount of capital on leases in the Haynesville Shale or elsewhere and they're drilling to hold those leases and retain some of the value in relation to the high prices they paid for them. In those cases, companies are growing their gas production by default. I think a lot of the current oversupply in natural gas is actually coming from those first two factors.

The third factor is that the general market wants to be long on natural gas. Retail investors believe in natural gas. They believe in commodities. They're concerned about quantitative easing 2 (QE2), and the general growth of the money supply. People want to be long on natural gas but they've lost money on the natural gas ETF, UNG, so they've been buying natural gas companies. One of the only ways a retail investor can access natural gas is by buying these natural gas companies through either ETFs or directly owning shares. I think that's where some of the disconnect comes from. The people trading natural gas futures aren't necessarily the same people as the people buying the stocks.

TER: Do you think investors should just ignore the low gas price and invest in companies with good balance sheets and solid management, or are there better places for their capital right now?

JY: I'm not sure I should be telling investors what they should and shouldn't do. What I'm doing is finding companies that are trading at a discount to their intrinsic value at the current gas price and on the current forward curve. I intend to benefit both from the undervalued stock price of the company, as well as any uplift they might get from rising gas prices. So I'm not ignoring the gas price completely, but I'm not letting it drive my investment decisions. It's been a headwind and it will be a tailwind at some point going forward, driving additional return for some of my investments.

TER: Let's talk about some of your fund's equity holdings. One company in your hedge fund is Cabot Oil & Gas Corp. (NYSE:COG). It's trading at around $35, which already exceeded a target price set by Macquarie Equities Research. J.P. Morgan has a target of $50, but Oppenheimer has mixed opinions about Cabot. What do you see in the company, and how high do you think it could go?

JY: Cabot has traded down a lot over the past few months, after receiving a lot of negative press about its operating activities in Pennsylvania. My understanding is that the company's operations are not substantially different from other Pennsylvania operators. Cabot just happens to be in Susquehanna County, an area with a very high visibility, and the people there are concerned about the water supply. I think that negative news about Cabot has scared investors. Large investors are reducing their positions or not increasing their positions as much as they would have relative to Cabot's intrinsic value.

Cabot is really in the core of the dry gas window in the northeast. It's in an area of the Marcellus Shale where it and the operators around it have achieved some of the highest and most impressive initial production rates on their wells. Cabot is highly economic even at current gas prices. It has high-quality management, too. I think it's attractive just because it's been picked on so much. To be able to buy a low-cost natural gas producer in the U.S. at a discount to its intrinsic value is extremely rare.

TER: Are there some catalysts there that you're eyeing?

JY: There are a few things going on. First, there's industry consolidation. Atlas Energy, Inc. (NASDAQ:ATLS) recently got bought out by Chevron Corporation (NYSE:CVX), and EXCO Resources Inc. (NYSE:EXCO) is in the midst of a take-private transaction that may not close but is priced much higher than Cabot's current market valuation. There have been a number of deals in the Marcellus, joint ventures (JVs) and acquisitions over the last few years at generally increasing prices. Cabot hasn't done a JV yet in the Marcellus, but it may at some point. The company may even get bought out—it's in the core of the Marcellus. If I were a big multinational oil company and I wanted a large position in the core of the Marcellus, I would buy Cabot or go to the company and make a really attractive JV offer. That's a harder to predict catalyst from a timing perspective; it's something I think may happen over the next couple of years.

Nearer term, it looks as though Cabot is going to monetize a portion or all of its Haynesville acreage. Based on other transactions happening there, I think that would be very positive and provide the company with additional liquidity.

Cabot's acreage is in great locations in the Eagle Ford Shale, and it looks like the company should expect some high return wells there. They are also in the Heath Shale in Montana and the things I'm seeing in the Heath Shale are positive so far. But I don't attribute a lot of value to Cabot's Heath positions right now. Like I said, I don't really invest based on exploration prospects; but it's always nice to have the upside. It's possible that the company could pull in a few good wells in the Heath and that would significantly differentiate it and possibly lead to positive movement in the stock.

TER: You mentioned Gastar earlier. That's an exploration and production (E&P) company with a market cap of about $200 million. A recent Canaccord Adams research report said, "Gastar is an attractively priced Marcellus producer given its relative growth potential." Canaccord has a buy rating of $4.50 on it. Meanwhile, Rodman & Renshaw has a target of $5.50 on Gastar. What are some of the catalysts there?

JY: Well, Gastar just did an acquisition but the stock doesn't seem to have priced in the value creation from that acquisition. The company hasn't announced the metrics on the transaction; but, based on the understanding of some of the research analysts that I've spoken with and some back-of-the-envelope math, Gastar just bought north of 50,000 acres at $1,000 an acre or less in the Marcellus. They bought it in the dry gas area, but in a very good area of West Virginia. That's tremendously positive for the company. There are some big questions, though. What is the exact price Gastar paid? How will they finance the acreage acquisition and development? And did their existing JV partner decide to participate with it in the acquisition, or will they seek an additional JV partner?

Gastar recently sold acreage to its joint venture partner at more than $4,000 an acre, and here it is buying similarly high-quality acreage at $1,000 an acre or even less. That's huge, especially for a company as small as Gastar. Gastar is now likely the most levered company in the Marcellus by enterprise value, at least among those that are publicly traded.

Gastar has really transformed itself to a certain extent into a Marcellus acreage play, and an extremely attractively priced one at that. This catalyst has already played out and it's just a question of the price the company is paying. I think the market will be further surprised by other additional upcoming catalysts, such as the results from their oily Eagle Ford and Glen Rose wells in East Texas—you could see upside to the $5.50 price target that Rodman & Renshaw put out, and I really respect the analysts at both Rodman and Canaccord. Rodman recently upgraded RAME and raised their price target, and I suspect that could happen for Gastar as these catalysts play out.

TER: You mentioned earlier that Chevron took out Atlas. The deal hasn't closed yet, but it's all but done. Atlas has a huge position in the Marcellus. Is that transaction affecting companies like Gastar? Are people adding a little extra value to such companies given the transaction?

JY: I think they should. I think it has affected companies like Cabot and Range Resources Corporation (NYSE:RRC), but I don't think it's affected companies like Gastar yet. I think it's important, even if I don't expect Chevron to buy Gastar or any major oil company to come in and buy a company like Gastar. It is important because Chevron's Atlas takeover is a validation of the play. I think it will give private equity firms and domestic and international oil companies more confidence in doing JVs in the area and buying companies to access their assets. I think it helps highlight Gastar's intrinsic value in the asset market even if it hasn't yet translated into a higher share price.

TER: Another company in your fund is GMX Resources Inc. (NYSE:GMXR). GMX increased proven reserves by about a quarter in fiscal year 2010 (FY10). And it recently subleased a number of drills to cut back on drilling in the Haynesville in order to reduce its capital costs. C.K. Cooper & Company has a hold rating on GMX, whereas both MKM Partners LLC and Stifel Nicolaus have buy ratings with a $6. target. Tell us about your outlook for GMX.

JY: GMX is interesting to me because it has a tremendous amount of proven natural gas reserves on its books and is in the process of reducing the cost of adding additional reserves. Relative to the company's enterprise value, you pay less than $1. per 1,000 cubic feet of proven natural gas reserves. A large portion of those proven reserves are developed and producing. The company is profitable right now—primarily because of its hedges—but it is profitable.

GMX has done a couple of things that have substantially increased the company's value and the value of its assets. First, it has significantly increased the amount of reserves it accesses per Haynesville well drilled. At some point couple of years ago, GMX was booking 3–4 billion cubic feet (bcf) of reserves per well. Now it's up to somewhere around 6–6.5 bcf per well in reserves, with associated higher production. Based on the type of improvements the company is achieving, it could get reserves as high as 7–8 bcf per well, comparable to some other places in the Haynesville historically considered more "core" than GMX's area. These are $9 million wells, so GMX's finding costs are pretty low. It's not the lowest-cost producer, but the company has definitely improved its cost structure. That's one really big positive.

Another big positive is that it did a deal with Kinder Morgan Energy Partners, L.P. (NYSE:KMP), one of the big pipeline companies. GMX sold a minority interest in its gathering system in East Texas for more than $40 million. I think it was a 40% stake or somewhere in that range. GMX still has the majority ownership in that system. Valuations on mainstream and gathering assets have gone up a lot in since that transaction. So GMX has what's probably a $60–$70 million asset that no one seems to be giving them credit for. The company's valuation is very low because people are worried it will outspend its cash flow. Yet, it has this asset that it will be able to sell to fund its development, increasing expected future reserves and cash flow. When GMX sells that gathering asset, it's really going to unlock value there. It will highlight how discounted the stock is relative to its fundamental value. And this is the kind of discount I look for and the kind of misunderstanding I take advantage of for my fund.

TER: What are some of your other holdings that you'd like to talk about, Josh?

JY: One of my largest positions that has done fairly well recently, but still has a lot of upside potential, is RAM Energy Resources (NASDAQ:RAME). RAME has a number of more mature oil assets, primarily in Texas and Oklahoma. They also have an oil field that they recently did some exploration work on and achieved some really positive results. Their stock is attractive because it is trading at a large discount to its proven reserve value, at a low cash flow multiple, while benefiting substantially from the above $80 price of oil. RAME's enterprise value/BOE is effectively ~$11/BOE, or $11 per barrel equivalent of energy in its proved reserves, which is substantially lower than the going rate for other oil stocks and in the asset market.

On the surface, RAM appears to be overleveraged, but it recently did an asset sale for more than $40 million. The asset they sold appears to have been one of the company's weakest assets. It was a high-percentage natural gas field that was providing a relatively small amount of cash flow to its value. Even though RAM announced positive exploration results on a trend where SandRidge Energy, Inc. (NYSE:SD) and Chesapeake Energy Corp. (NYSE:CHK) have been very successful a couple of counties west in Oklahoma, RAM's stock has not received much credit for the substantially improved liquidity position nor the recent exploration success. And given that the majority of RAM's reserves are in oil, the company continues to trade at a substantial discount to its proven reserve value, which was calculated at a lower oil price. So, there's even more value there that should be recognized in the market at some point.

TER: Any others?

JY: One more is Lucas Energy, Inc. (NYSE.A:LEI), a micro-cap company. It's a small position for me, partly because it is not the most liquid stock and is a small company, but it's definitely one of the more interesting oil and gas companies. The company is entirely in the Austin Chalk formation and the Eagle Ford Shale. Lucas did a JV with Hilcorp Energy Company, a private company, whereby Hilcorp is going to drill a number of Eagle Ford oil shale wells. Lucas is getting carried on the first couple of wells, and they are going to maintain a 15% interest.

Lucas is currently producing 120 barrels of oil per day (bpd), so it's a very small amount of production. These Eagle Ford oil wells are coming on at anywhere from 500–1,000 bpd, so the company should have one well in production before the end of the year; and it should have a couple additional wells in the first quarter of next year. Lucas could more than double its oil production just from these first wells that Hilcorp is bringing on. And it has a number of other locations that Hilcorp will be drilling over the next several years, and has recently acquired additional Eagle Ford acreage at prices that were likely compelling. At oil prices north of $80, Lucas' oily Austin Chalk wells should be highly economic. You could expect the company to accelerate drilling there and increase production at very attractive margins in a play that was less attractive at that lower oil prices. Even though it's still very small, it's still an interesting company.

As you can see, my investment process entails finding value and taking advantage misunderstood opportunities, and there are a number of attractive opportunities that I've found recently in the oil and gas space. It takes a lot of research and involves developing an understanding of the companies, but it is worthwhile in terms of the opportunities it generates for attractive risk-adjusted return investments like some of the ones I've mentioned.

TER: Thank you, Josh for your time today.

Joshua Young is the founder and portfolio manager of Young Capital Management, LLC, which launched Young Capital Partners, LP in September 2010. He previously served as an analyst at a multibillion-dollar single-family office in Los Angeles, which was nominated for single-family office of the year by Institutional Investor magazine in 2008. At the family office, he was involved in the sourcing, evaluation, purchase and sale of primarily public equity investments in a value-oriented long/short equity strategy. He also led the energy investment effort, evaluated third-party investment managers and assisted in the development of this relatively new, multibillion-dollar family office. Prior to that, he was an investment analyst at Triton Pacific Capital Partners in Los Angeles, a middle-market private equity firm. Prior to that, he was a corporate strategy consultant at Mercer Management Consulting and DiamondCluster in Chicago. He graduated with honors from the University of Chicago with a BA in economics. Josh can be reached at josh@youngcm.com.

Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Expert Insights page.

DISCLOSURE:
1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Energy Report: Atlas and Ram.
3) Josh Young: I personally and/or my family own shares of the following companies mentioned in this interview: Cabot, Gastar, RAM Energy, GMX Resources and Lucas. I personally and/or my family am paid by the following companies mentioned in this interview: None. I reserve the right to buy or sell any stocks I have mentioned here at any time.
Streetwise - The Energy Report is Copyright © 2010 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.
The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.
From time to time, Streetwise Reports LLC and its  directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.
Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.
Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.
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Over in the options trading pit the team have just updated the progress chart to include last weeks closed trades as follows:

sk Chart 14 November 2010.JPG


The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

Monday
Nov152010

Hyperion Power Key Member of New Nuclear Maritime Consortium

Hyperion Logo 20 Nov 09.JPG

Just in is this missive from Hyperion Power regarding the possibility of future commercial shipping being powered by small modular reactors:

Shipping and power experts join forces to explore the potential for nuclear power to propel future generations of commercial tankers

Members of new research consortium, which includes Lloyd's Register, Enterprises Shipping and Trading, Hyperion Power Generation and BMT, to examine the marine applications for small modular reactors (SMRs).

LONDON - November 15, 2010 - A consortium of British, American and Greek interests have agreed to investigate the practical maritime applications for small modular reactors as commercial tanker-owners search for new designs that could deliver safer, cleaner and commercially viable forms of propulsion for the global fleet.
 
The Strategic Research Group at Lloyd's Register, Hyperion Power Generation Inc, British designer BMT Nigel Gee and Greek ship operator Enterprises Shipping and Trading SA are to lead the research into nuclear propulsion, which they believe is technically feasible and has the potential to drastically reduce the CO2 emissions caused by commercial shipping.
 
"This a very exciting project," said Lloyd's Register CEO, Richard Sadler. "We believe that as society recognises the limited choices available in the low carbon, oil scarce economy and land based nuclear plants become common place we will see nuclear ships on specific trade routes sooner than many currently anticipate."
 
The agreement for the joint industry project was signed today at the offices of Enterprises Shipping and Trading in Athens, Greece. Enterprises' Victor Restis, commenting at the signing said, "Despite the fact that shipping is the industry that contributes much less in the World's atmospheric pollution compared to other shore based industries, we believe that no effort is enough towards safeguarding a better world for the future generations. We are extremely honored and proud to be part of this consortium at this historic event as we strongly believe that alternative power generation is the answer for the shipping transportation."
 
The consortium believes that SMRs, with a thermal power output of more than 68 megawatts, have the potential to be used as a plug-in nuclear 'battery'.
 
The research is intended to produce a concept tanker-ship design based on conventional and 'modular' concepts. Special attention will be paid to analysis of a vessel's lifecycle cost as well as to hull-form designs and structural layout, including grounding and collision protection.
 
"We are enthusiastic about participating in the historic opportunity presented by this truly groundbreaking consortium," said John R. 'Grizz' Deal, the CEO of Hyperion Power. "In addition to fitting the basic requirements as the model for studying the application of SMRs in commercial naval propulsion, the Hyperion Power Module [HPM] can also help to set new nuclear maritime standards. The HPM's design includes a non-pressurised vessel, and non-reactive coolant. These features, among others in the HPM, should encourage the industry to strive for even higher levels of inherent safety in their models."
 
International shipping has been identified as a significant global contributor to greenhouse gas emissions, and it is under mounting pressure to contribute to overall emission reductions. There is an ongoing debate about how much the sector will be able to reduce those emissions, while continuing to support the forecast expansion in world trade that it enables.
 
"Nuclear propulsion offers the opportunity for an emissions-free alternative to fossil fuel, whist delivering ancillary benefits and security to the maritime industry," said Dr Phil Thompson, Sector Director -- Transport, for the BMT Group. "We look forward to using our wide range of maritime skills and expertise to identify the through-life implications, risks and potential for developing and using SMRs in the civilian maritime environment and to provide a framework for its safe and reliable introduction and utilisation."

So there we have it, they do appear to be making excellent progress.

Over in the options trading pit the team have just updated the progress chart to include last weeks closed trades as follows:

sk Chart 14 November 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

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