Gold price forecast, Sept. 10, 2014: In April 2010 I made a somewhat controversial prediction that gold would reach $5,000 an ounce. I still believe this to be a realistic price target - and now prominent gold mining experts are following suit.
Rob McEwen is more than qualified in the realm of gold mining - he's the founder and former chairman and chief executive officer of GoldCorp Inc. (NYSE: GG), a $20 billion Canadian gold miner and the world's largest by market cap.
And in an interview on CNBC's "Fast Money" in August, McEwen said "I'm a long-term believer in gold and I see it ultimately getting to $5,000 an ounce. Anything short of that, I wouldn't be hedging."
McEwen expects gold to hit his $5,000 target within the next three to four years.
And I agree.
A look at the metal's recent history shows how McEwen and I arrived at this gold price forecast...
Price History Shines a Spotlight on Gold's PotentialAfter a decade-long run up, gold's price peaked in September 2011 at $1,900. It's since off by about a third and has been languishing in the $1,300 range for nearly a year and a half.
Top 5 Growth Companies To Own For 2015: Mistras Group Inc (MG)
Mistras Group, Inc. provides technology-enabled asset protection solutions to evaluate the structural integrity and reliability of critical energy, industrial, and public infrastructure worldwide. It provides traditional non-destructive testing (NDT) services; advanced NDT services; and mechanical integrity services. The company also offers software solutions, including Plant Condition Monitoring Software and Systems, an enterprise software that allows its customers for the warehousing and analysis of data. In addition, it provides Advanced Data Analysis Pattern Recognition and Neural Networks software, which enables acoustic emission (AE) experts to develop automated remote monitoring systems; AE Software Platform, a windows based real time application software; Loose Parts Monitoring Software program for monitoring, detecting, and evaluating metallic loose parts in nuclear reactor coolant systems; and Automated UT and Imaging Analysis Software for analyzing ultrasonic in spection data, and visualizing and identifying the location and size of flaws. Further, the company�s technology packages include TANKPAC for tank inspections; POWERPAC for monitoring discharges in critical power grid transformers; and Acoustic Combustion Turbine Monitoring System, an on-line system to detect stator blade cracks in gas turbines. Additionally, it offers digital radiographic systems to solve specific industrial problems; AE sensors, instruments, and turn-key systems, as well as leak monitoring and detection systems; ultrasonic equipment; vibration sensing products; and on-line monitoring services. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.
Advisors' Opinion:- [By Monica Gerson]
Mistras Group (NYSE: MG) shares fell 7.71% to $20.47 after the company reported downbeat Q3 earnings and lowered its FY14 EBITDA forecast
WD-40 Company (NASDAQ: WDFC) slipped 5.58% to $73.48 after the company reported weaker-than-expected FQ2 earnings.
Top 10 Canadian Stocks For 2014: ConocoPhillips(COP)
ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.
Advisors' Opinion:- [By Ben Levisohn]
According to ConocoPhillips (COP), 80% of U.S. shale oil could be produced profitably at oil prices around $40-80 while the CEO of Occidental Petroleum (OXY) has stated that much of oil production in the U.S. is viable at $753. Some companies such as Anadarko Petroleum (APC) have emphasized that recent developments in the commodity markets were not going to have much impact on its exploration plans. Others such as Pioneer Natural Resources (PXD) have stated that the company could increase production by 16%- 21% through 2016 at oil prices in the range of $70-80 while EOG Resources (EOG) has maintained that it was going to post strong double-digit gains in oil production going forward despite the low price environment. Meanwhile, Chesapeake Energy (CHK) raised its production guidance for this year and noted that despite lower oil prices, declining production costs have enabled it to raise its production this year.
Top 10 Canadian Stocks For 2014: Brookfield Office Properties Inc. (BPO)
Brookfield Properties Corporation is a publicly owned real estate investment firm. The firm engages in the ownership, development, and management of premier commercial properties. It also provides ancillary real estate service businesses, such as tenant service and amenities. The firm invests in the real estate markets of the United States with a focus on North American cities, including New York, Boston, Washington, D.C., Toronto, Calgary, Denver, and Minneapolis. It primarily invests in properties and development sites predominantly office buildings. The firm operates as a subsidiary of Brookfield Asset Management Inc. It was formerly known as Carena-Bancorp Holdings, Inc. and changed its name to Le Holding Carena-Bancorp Inc. in 1978. The company further changed its name to Carena-Bancorp, Inc. in 1985; to Carena Developments Limited in 1989; and to Brookfield Properties Corporation in 1996. Brookfield Properties was founded in 1923 and is based in New York, New York wi th an additional office in Toronto, Canada
Advisors' Opinion:- [By gurujx]
Brookfield Office Properties Inc (BPO) Reached the 52-Week High of $20.52
Brookfield Office Properties Inc. was formed under the Canada Business Corporations Act on September 5, 1978 to continue the business of Canadian Arena Corporation which was incorporated in 1923 under the Quebec Companies Act, 1920. Brookfield Office Properties Inc has a market cap of $10.41 billion; its shares were traded at around $20.52 with a P/E ratio of 19.50 and P/S ratio of 4.56. The dividend yield of Brookfield Office Properties Inc stocks is 2.73%. Brookfield Office Properties Inc had an annual average earnings growth of 16.70% over the past 10 years.
Top 10 Canadian Stocks For 2014: Vanguard Natural Resources LLC(VNR)
Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. Its properties are located in the southern portion of the Appalachian Basin, primarily in southeast Kentucky and northeast Tennessee; the Permian Basin, primarily in west Texas and southeastern New Mexico; and south Texas. As of December 31, 2010, the company had estimated proved reserves of 69.3 million barrels of oil equivalent, as well as working interests in 2,270 net productive wells. Vanguard Natural Resources, LLC was founded in 2006 and is based in Houston, Texas.
Advisors' Opinion:- [By Matt DiLallo]
Among its peers in the MLP and LLC space, LINN by far hedges the most production. BreitBurn Energy Partners (NASDAQ: BBEP ) , for example, has hedged roughly 75% of its production through 2015, whereas LINN is 100% hedged through 2016. BreitBurn almost exclusively uses swaps as its hedge of choice. It's a similar story at Vanguard Natural Resources (NASDAQ: VNR ) , which also uses swaps to almost exclusively hedge natural gas while using three-way collars to hedge about a third of its oil production. While LINN could get more creative, one thing I'd be surprised to hear is that it's going to join these two peers and leave some of its production unhedged.
- [By Matthew DiLallo]
Oil and natural gas producer Vanguard Natural Resources (NASDAQ: VNR ) likes to go against the grain. While most of its peers have been focused on acquiring or developing oil-rich assets, Vanguard has been shopping in the clearance isle and stocking up on natural gas. It's a move that could pay off handsomely in a couple of years as the supply and demand balance for natural gas begins to shift.
- [By Robert Rapier]
During this past week�� joint monthly web chat for subscribers of The Energy Strategist�and MLP Profits, we received several questions about Vanguard Natural Resources (Nasdaq: VNR). So let�� get to know this energy income play a little better.
- [By Matt DiLallo]
The only other option to fund these capital needs is to form foreign joint ventures, which could jeopardize our dream of energy independence, or simply unload mature oil and gas assets. That last option has opened up a hidden opportunity for upstream oil and gas MLPs such as LINN Energy (NASDAQ: LINE ) and�Vanguard Natural Resources (NASDAQ: VNR ) to consolidate these mature producing properties.
Top 10 Canadian Stocks For 2014: Tsakos Energy Navigation Ltd(TNP)
Tsakos Energy Navigation Limited, together with its subsidiaries, provides seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services for national and independent oil companies and refiners under long, medium, and short-term charters. As of August 16, 2011, its fleet consisted of 50 vessels comprising 59 tankers, including 2 dynamic positioning 2 (DP2) shuttle tankers under construction, and 1 liquefied natural gas carrier. The company was formerly known as MIF Limited and changed its name to Tsakos Energy Navigation Limited in July 2001. Tsakos Energy Navigation Limited was founded in 1993 and is based in Athens, Greece.
Advisors' Opinion:- [By Travis Hoium]
What: Shares of energy transporter Tsakos Energy Navigation Limited (NYSE: TNP ) jumped 17% today after the company released earnings.
Top 10 Canadian Stocks For 2014: Crown Castle International Corporation (CCI)
Crown Castle International Corp., through its subsidiaries, owns, operates, and leases towers and other wireless infrastructure primarily in the United States and Australia. Its infrastructure includes distributed antenna system (DAS) networks, as well as rooftop installations. The company involves in the rental of antenna space of its towers to wireless communications companies. It also provides network services relating to its towers, which primarily include antenna installations and subsequent augmentations, as well as additional services, such as site acquisition, architectural and engineering, zoning and permitting, other construction, and other services related network development. As of December 31, 2010, it owned, leased, or managed approximately 23,900 towers, including 43 completed DAS networks. The company was founded in 1994 and is headquartered in Houston, Texas.
Advisors' Opinion:- [By Dimitra DeFotis]
Among stocks, cellular tower operator�American Tower (AMT), a real estate investment trust, is up nearly 5% after saying it will buy the parent of tower operator Global Tower Partners for $4.8 billion, according to Flyonthewall.com. �Crown Castle International (CCI) is up 3%. Press release here.
- [By Victor Selva] the benefits of being in the right place at the right time.
As a matter of fact, the company is the second largest independent operator of wireless tower communication sites in the U.S. and it is the leading tower owner, with roughly 40,000 sites domestically and over 1,700 in Australia.
The firm leases and licenses antenna spaces on its controlled towers to major wireless carriers such as AT&T Inc. (T), Sprint Nextel Corporation (S) and Verizon Communications Inc. (VZ). Moreover, it leases access to its distributed antenna systems for the transmission of wireless signals related to the transmission of voice, video and data.
Long Lasting Upsides with Low Risk
Crown Castle has many advantages running to its favor, which have carved the company a narrow economic moat. For one, it boasts great visibility stemming from the fact that its long term contracts have enabled the firm to have more than 97% of its coming year�� revenue projections already assured.
Secondly, high switching costs make it unlikely for carriers to switch towers, since the costs of such a move would by far exceed the savings from changing to another operator. In addition, zoning regulations hinder carriers to do so. Third, its economies of scale allow the company great cost advantages that result in massive operating leverage.
And lastly, there is the upside of the network effect. Since each tower covers a specific area, multiple carriers will be willing to have presence in the same towers, given this is directly connected to their ability to compete over market share in the areas covered by each site.
Creating Shareholder Value
In early January 2014, Crown Castle began operating as a real estate investment trust. Upon the announcement of this decision, chief executive Ben Moreland stated that this conversion should ��ower our weighed average cost of capital and provide additional opportunities for creating long-term shareholder value.��I
- [By Anders Bylund]
Moreover, American Tower faces two massive rivals in Crown Castle International (NYSE: CCI ) and SBA Communications (NASDAQ: SBAC ) , which operate 40,000 and 20,000 American radio towers, respectively. American Tower falls right between them, with more than 21,000 company-owned towers on American soil, and another 7,200 leased tower sites. This is a tight three-horse race, with several smaller competitors trailing far behind.
Top 10 Canadian Stocks For 2014: Encana Corporation(ECA)
Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids. The company owns interests in resource plays that primarily include the Greater Sierra, Cutbank Ridge, Bighorn, and Coalbed Methane resource plays located in British Columbia and Alberta, as well as the Deep Panuke natural gas project offshore Nova Scotia in Canada. It also holds interests in resource plays comprising the Jonah in southwest Wyoming, Piceance in northwest Colorado, Haynesville in Louisiana, and Texas resource play, including east Texas and north Texas. The company serves primarily local distribution companies, industrials, energy marketing companies, and other producers. Encana Corporation was founded in 1971 and is headquartered in Calgary, Canada.
Advisors' Opinion:- [By David Smith]
Far and wide
Fox's latest version ranges somewhat more widely than its predecessor. Oh sure, there's plenty of attention to environmental damage attributable to Cabot Oil & Gas' (NYSE: COG ) fracking operations in Dimock, Pa., the epicenter of the first film. But�the follow-up also spends considerable time in Pavillion, Wyo., where the Environmental Protection Agency has contended that hydraulic fracturing by Encana (NYSE: ECA ) has sullied the local aquifer. Only lately has the EPA turned over a second investigation into the matter to Wyoming state authorities. - [By ovenerio]
The company has a current ROE of 12.69% which is higher than the industry median and the ones exhibit by Encana (ECA), Crescent Point Energy (CPG), Concho Resources (CXO) and EQT (EQT). In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment. It is very important to understand this metric before investing and it is important to look at the trend in ROE over time.
- [By Bruce Kennedy]
The EIA examined annual reports from 42 oil and natural gas companies, from giants like Brazil's Petrobras (NYSE: PBR) and ExxonMobil (NYSE: XOM) to smaller firms like Talisman Energy (NYSE: TLM) and Encana (NYSE: ECA) ��companies that reportedly made up about 40 percent of non-OPEC production last year, and that had combined market capitalization of over $2.4 trillion.
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