It looks like the summer of 2013 could be a repeat of last summer with extreme volatility in crop prices thanks to more potential drought concerns. Little, if any snow cover or moisture to replenish the soil across much of the Midwest leaves the season ahead vulnerable to another price shock.  Major agricultural chemical producer DuPont (NYSE: DD) is currently sitting at the low end of its two-year trading range from $42 to $56. The chart pattern targets an $8 move from the breakdown point at $50 to new multi-year highs at $58. Only a close below the $40… Read More

It looks like the summer of 2013 could be a repeat of last summer with extreme volatility in crop prices thanks to more potential drought concerns. Little, if any snow cover or moisture to replenish the soil across much of the Midwest leaves the season ahead vulnerable to another price shock.  Major agricultural chemical producer DuPont (NYSE: DD) is currently sitting at the low end of its two-year trading range from $42 to $56. The chart pattern targets an $8 move from the breakdown point at $50 to new multi-year highs at $58. Only a close below the $40 support level on a weekly basis would negate the bullish trend. The $58 target is almost 30% higher than current prices, but traders who use a stock substitution strategy could make triple-digit returns on a move to that level.#-ad_banner-# One major advantage of using long call options rather than buying shares is putting up much less to control 100 shares — that’s the power of… Read More

Cameco Corporation (NYSE: CCJ) is involved in the exploration, development, mining, refining, conversion and fabrication of uranium for use in electricity generation in nuclear power reactors. The stock traded at a high near $45 in early 2011, just prior to the earthquake and tsunami that destroyed the Fukushima Daiichi nuclear power station in Japan. While this tragedy did slow the industry’s growth, it did not halt this efficient form of energy production, which provides about 11% of the world’s electricity. Shares of CCJ have been volatile for the past week after… Read More

Cameco Corporation (NYSE: CCJ) is involved in the exploration, development, mining, refining, conversion and fabrication of uranium for use in electricity generation in nuclear power reactors. The stock traded at a high near $45 in early 2011, just prior to the earthquake and tsunami that destroyed the Fukushima Daiichi nuclear power station in Japan. While this tragedy did slow the industry’s growth, it did not halt this efficient form of energy production, which provides about 11% of the world’s electricity. Shares of CCJ have been volatile for the past week after the company announced it would shut down production at its McArthur River mine and Key Lake mill due to a union strike. However, management said it doesn’t expect the strike to affect its uranium delivery commitments. Looking at the bigger picture, CCJ has consolidated from $18 to $26 for the past three years. A base has formed with the long-term prospects favoring the bulls at these levels. A conservative target is the $22 midpoint of the trading range that should act as the first resistance level. If CCJ can break out… Read More

Some experts argue that history never repeats itself exactly — there is always some twist to even familiar events that make them different from what occurred in the past. Take U.S. oil production, for instance. #-ad_banner-#As recently as the early 1970s, before OPEC rose to prominence and easy-to-tap domestic oil reserves were still abundant, American energy production was the envy of the world. It cost $0.36 a gallon to fill up a gas-guzzling full-size Buick in 1971, and oil patch buccaneers from Texas to California were exporting oceans of crude oil. America is unlikely to return to those… Read More

Some experts argue that history never repeats itself exactly — there is always some twist to even familiar events that make them different from what occurred in the past. Take U.S. oil production, for instance. #-ad_banner-#As recently as the early 1970s, before OPEC rose to prominence and easy-to-tap domestic oil reserves were still abundant, American energy production was the envy of the world. It cost $0.36 a gallon to fill up a gas-guzzling full-size Buick in 1971, and oil patch buccaneers from Texas to California were exporting oceans of crude oil. America is unlikely to return to those gas prices or gas-guzzling autos, but energy production and exports appear to be headed for a deja-vu renaissance. By now, most everyone has heard of the fracking revolution that is reviving the U.S. energy industry and returning the United States to its historic role as the world’s largest energy producer. That renewed volume of oil and gas is good for America. It will be especially good for those companies that transport, store and distribute the new energy wealth — more of the stuff will be moving to market than it… Read More

There is likely nothing that has done more to shape the modern world than energy – both for good and evil. It created gushers of oil riches for the likes of tycoons J.D. Rockefeller and J. Paul Getty, helped foster global conflicts the world over, transformed economies and standards of living nearly everywhere and arguably caused irreparable damage to the environment. #-ad_banner-#For decades, the world has been on a search for a new source of energy – most alternatives, critics argue, are too expensive to be considered a replacement for oil. Battery power is usually lumped in with other touchy-feely… Read More

There is likely nothing that has done more to shape the modern world than energy – both for good and evil. It created gushers of oil riches for the likes of tycoons J.D. Rockefeller and J. Paul Getty, helped foster global conflicts the world over, transformed economies and standards of living nearly everywhere and arguably caused irreparable damage to the environment. #-ad_banner-#For decades, the world has been on a search for a new source of energy – most alternatives, critics argue, are too expensive to be considered a replacement for oil. Battery power is usually lumped in with other touchy-feely alt-energy sources as unprofitable and unrealistic, but now there may be a breakthrough. Tesla (Nasdaq: TSLA) are you listening? There are two big problems with battery technology. First, it so expensive, batteries are hardly profitable. Second, its capabilities for energy storage are limited. Applied Materials, Inc. (Nasdaq: AMAT), a company that created fortunes around the time of the Dotcom meltdown in 2000, may have accomplished some strides that could make battery power firmly profitable. AMAT recently began shipping chip technology for innovative new solid-state batteries that could help double their energy storage. What’s more, the company says it… Read More

Amidst the of cacophony of Wall Street earnings, lesser-known companies can report stellar results that get muted in the headlines about more popular stock names. However, real profits can be found simply by ignoring what’s right in front of you and focusing on the company hidden in the corner.  #-ad_banner-#Oil and gas pipeline companies are great places to find diamonds in the rough. Natural gas inventories in the U.S. are high, keeping prices low and resulting in strong demand from utilities and other industries. The widespread use of natural gas means that a reliable network of pipelines must be available… Read More

Amidst the of cacophony of Wall Street earnings, lesser-known companies can report stellar results that get muted in the headlines about more popular stock names. However, real profits can be found simply by ignoring what’s right in front of you and focusing on the company hidden in the corner.  #-ad_banner-#Oil and gas pipeline companies are great places to find diamonds in the rough. Natural gas inventories in the U.S. are high, keeping prices low and resulting in strong demand from utilities and other industries. The widespread use of natural gas means that a reliable network of pipelines must be available to process and transport it.  Pipeline capacity is the largest concern for drillers. But it should be a recipe for success if you’re an oil and gas pipeline company, like Atlas Pipeline Partners, LP (NYSE: APL). Atlas is a Master Limited Partnership (MLP) – a company structured in such as way that passes taxable gains onto partners and shareholders and allows Atlas to pay a heftier dividend than most companies.      As a MLP, Atlas must pass at least 90% of its earnings to shareholders in the form of dividends. With the dividend increase to $2.52 per… Read More

In ten years, the most profitable oil sands development could very well be in the United States in the state of Utah. The fact that oil sands even exists in the United States may come as a surprise to some. Not only do they exist but these Utah oil sands companies are already promising to offer a competitive advantage against the Canadian version. For example, one of the primary challenges of the Canadian oil sands is its location in the remote northern part of Alberta. It is extremely expensive to get supplies, equipment and people this far north. Read More

In ten years, the most profitable oil sands development could very well be in the United States in the state of Utah. The fact that oil sands even exists in the United States may come as a surprise to some. Not only do they exist but these Utah oil sands companies are already promising to offer a competitive advantage against the Canadian version. For example, one of the primary challenges of the Canadian oil sands is its location in the remote northern part of Alberta. It is extremely expensive to get supplies, equipment and people this far north. Likewise, Canadian operators have to pay hefty tolls in order to ship the oil down to the Gulf Coast refiners. American Sands Energy (OTC: AMSE) is different. It is also an oil sand company, but it is located near Sunnyside Utah (150 miles southeast of Salt Lake City). They can simply load their oil production onto a train and ship it to one of six refineries that operate within the state. The second advantage that American Sands Energy and its Utah peers have over the Canadian oil sands is that… Read More

Trina Solar (NYSE: TSL) is staging an impressive turnaround. In 2013, the company posted a loss of $1.09 per share, its third consecutive year of losses as it struggled with excess capacity and plummeting prices for solar modules. While lower prices have been a tremendous boon for consumers and helped drive the adoption of solar power, they have made life difficult for solar manufacturers with heavy overhead expenses. Trina’s stock price suffered alongside the company’s challenging fundamental prospects, dropping from a high above $36 in 2007 to a low below $3 in just over a year. The stock has been… Read More

Trina Solar (NYSE: TSL) is staging an impressive turnaround. In 2013, the company posted a loss of $1.09 per share, its third consecutive year of losses as it struggled with excess capacity and plummeting prices for solar modules. While lower prices have been a tremendous boon for consumers and helped drive the adoption of solar power, they have made life difficult for solar manufacturers with heavy overhead expenses. Trina’s stock price suffered alongside the company’s challenging fundamental prospects, dropping from a high above $36 in 2007 to a low below $3 in just over a year. The stock has been extremely volatile since then as well, rallying back above $30 in early 2010, before once again falling into the low single digits in 2012. To be sure, the solar business is not for the faint of heart! On Monday, TSL broke out of a near-term consolidation following news that the company landed a new supply agreement in China’s Jiangsu Province. While pricing terms for the deal weren’t disclosed, the news is certainly bullish. As TSL brings its costs in line while growing its sales channels, analysts are now forecasting a profitable year… Read More

You simply don’t ever have to be contrarian. Many risk-averse investors make plenty of money. But those that take a leap of faith and swim upstream can benefit the most. That being said, I draw your attention to the country of Iraq and, in particular, the semi-autonomous northern region of Kurdistan. The Kurds control massive oilfields, which, for the bold investor, is a potentially lucrative investment opportunity. #-ad_banner-#​But before we get to that, let me explain the unique situation in Iraq and why this risky venture is meant only for a conservative portion of a brave investor’s portfolio. Read More

You simply don’t ever have to be contrarian. Many risk-averse investors make plenty of money. But those that take a leap of faith and swim upstream can benefit the most. That being said, I draw your attention to the country of Iraq and, in particular, the semi-autonomous northern region of Kurdistan. The Kurds control massive oilfields, which, for the bold investor, is a potentially lucrative investment opportunity. #-ad_banner-#​But before we get to that, let me explain the unique situation in Iraq and why this risky venture is meant only for a conservative portion of a brave investor’s portfolio. A radical Islamic group — known as ISIS — grew out of the Syrian civil war and began invading Iraq earlier this year with the goal of creating an Islamic state, or caliphate, across Syria and Iraq. The group has successfully captured and controls wide swaths of land in the northern regions of both countries. The Kurdish oil fields lie just north of ISIS-held territory in Iraq and remain a target for the radical group. Not surprisingly stock prices of independent companies operating exclusively in Kurdistan have been decimated. These companies control very large conventional oil fields that… Read More

You don’t have to be a contrarian to have investment success, but it certainly helps. #-ad_banner-#From 2005 through 2007 — when it was fashionable to invest in real estate — the reality was that real estate was the last place you should have been putting your money. Then after housing bubble popped in 2009 — when it was terrifying to invest in real estate — investors should have been betting their life savings on residential properties. You can’t expect to reach your full investment potential by merely following the majority. In fact, going against the crowd is often the best… Read More

You don’t have to be a contrarian to have investment success, but it certainly helps. #-ad_banner-#From 2005 through 2007 — when it was fashionable to invest in real estate — the reality was that real estate was the last place you should have been putting your money. Then after housing bubble popped in 2009 — when it was terrifying to invest in real estate — investors should have been betting their life savings on residential properties. You can’t expect to reach your full investment potential by merely following the majority. In fact, going against the crowd is often the best place to look for investment ideas. Today there isn’t much that is more out favor than Russian stocks. It’s well-known that Russia has a problem with corruption making it a frightening place to invest in already. Now with the developing Ukraine crisis and the U.S. imposed sanctions — many investors find it even more unnerving. But as Warren Buffett says “you pay a rich price for a cheery consensus.” In fact, the doom and gloom that surrounds Russian stocks makes them extraordinarily inexpensive. Now could be the perfect time for a contrarian move — here’s why. After several months of… Read More

There are big changes afoot in the high-yielding energy master-limited partnership (MLP) space. On Monday, we got news of the biggest energy sector merger since the mega Exxon Mobil (NYSE: XOM) deal that took place last century. This week’s deal is a bit more complex than we’ve seen in the past, but I suspect it also will be much more of a game changer for income investors and traders than any deal in recent memory.  Energy giant Kinder Morgan (NYSE: KMI) announced it will wholly… Read More

There are big changes afoot in the high-yielding energy master-limited partnership (MLP) space. On Monday, we got news of the biggest energy sector merger since the mega Exxon Mobil (NYSE: XOM) deal that took place last century. This week’s deal is a bit more complex than we’ve seen in the past, but I suspect it also will be much more of a game changer for income investors and traders than any deal in recent memory.  Energy giant Kinder Morgan (NYSE: KMI) announced it will wholly acquire its two MLP structured interests — Kinder Morgan Energy Partners LP (NYSE: KMP) and El Paso Pipeline Partners LP (NYSE: EPB). The company also will acquire the non-MLP structured Kinder Morgan Management (NYSE: KMR). This deal means the surrender of its MLP status, which ironically, is an asset class the energy partnership helped put on the investment map. Kinder was one of the first MLPs to become widely owned back in the 1990s.  The company, and the MLP… Read More