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Top 20 advisors: Elliott Gue is fired up over coal

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Elliott Gue, editor of The Energy Strategist, chose Energy Metals Corporation (ASE: EMU) as his top pick for 2007. The stock has gained 100%; the company received a takeover bid from SXR Uranium One (OTC: SXRFF) on June 4, 2007.

For his new top pick, the advisor says, "One of my favorite sectors right now is coal. While coal isn't the most environmentally friendly of fuels, it accounts for more than 50% of all energy produced in the U.S. and has an even higher share in developing markets like China.

"I see little chance that coal will lose its pre-eminent status over the next decade. In addition, new uses for coal are emerging. In the U.S., the government is looking to promote the use of coal-derived liquid fuels with a series of subsidies and tax breaks; even the military is exploring the use of coal-derived fuels.

"My top play on the coal sector is Peabody Energy (NYSE: BTU), the largest coal miner in the U.S. The company is spinning off its high-cost mining operations in the eastern U.S. into a separate firm.

"Meanwhile, Peabody has the largest position in the prolific and rapidly growing coal-producing basin of the West, the Powder River Basin. Even better, the company recently acquired Australia's Excel Coal -- Excel is a major exporter of Australian coal to China. Chinese coal demand is growing rapidly, and Peabody is well placed to take advantage."

See all 20 stocks the advisors picked for the second half of 2007.

Cramer's Backdoor Uranium and Inflation Picks

On tonight's MAD MONEY on CNBC, Jim Cramer had a couple of interesting notes. To invest in a hedge against inflation: you buy Gold, Art, Collectibles. He says you can buy Sotheby's (NYSE: BID) because it is in a duopoly in the world now. Cramer did say that this is actually in a secular trend of permanency where the rich are getting richer and richer. He says this will help as more and more super-high-end items will sell. He says their margins are huge and any extra business they get from prices rising goes straight to the bottom line. He said he's been behind this one for a long time and it is up 100% since then.

Continue reading Cramer's Backdoor Uranium and Inflation Picks

Cramer's pick in uranium

On tonight's MAD MONEY on CNBC, Jim Cramer had a nuclear power play that may still have a negative bias if the Democrats come into power. Cramer actually has a nuclear power play in uranium despite this. China has 30 nuclear power plants being built, and everyone else wants nuclear power plants except for the U.S.

I noted these uranium 'safety net' hopes out of Merrill Lynch for investors back in December. Who knows how that research call is really going.

Cameco Corp. (NYSE:CCJ) already had a huge problem with a floor, but Energy Metals (NYSE:EMU) is his play. He says not to pay over $12.00 on it. EMU is a speculative one for Cramer since they don't really produce uranium yet. He thinks it could make 5 million pounds in 2012, but it could pay off big. Cramer thinks it could be acquired, too.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

Top Picks 2007: Elliott Gue mines for value in uranium

Each year, Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Stocks Report.

Energy Metals (NYSE: EMU) is the favorite speculative pick for 2007 from Elliott Gue. The editor of The Energy Strategist explains, "The supply/demand balance for uranium is tighter than for just about any other major commodity; supply of natural uranium from mines just isn't enough to cover even current demand. And with a global building boom for nuclear power plants underway, demand for uranium is only going to rise.

"In late October, uranium mining giant Cameco announced that it was experiencing uncontrollable water inflow into one of its key new mine projects, delaying the project from in early 2008 to, perhaps, mid-2009 for this mine.

"By around 2008, some utilities will be running low on uranium inventories to fuel their existing reactors. And there aren't many other sources of uranium out there to fill the void. For an aggressive play on this trend, consider Energy Metals. The stock, previously only listed in Toronto, recently listed its shares on the NYSE.

"While Energy Metals is headquartered in Canada, most of its projects are located in the U.S. Its Hobson facility in Texas is a licensed processing plant that is currently capable of processing 500,000 pounds of uranium oxide (yellowcake) annually from ISL liquids. This plant could produce as much as 1 million pounds of yellowcake annually once EMU completes upgrades to the facility.

Continue reading Top Picks 2007: Elliott Gue mines for value in uranium

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Last updated: November 12, 2009: 12:07 PM

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