A Portfolio For The Ages - Well At Least The Next 5-10 Years
The Fact That The Bric Countries are Industrializing along with some other countries in the very early stages of this process i.e Sri -Lanka (if i spelled that right), Ghana and the Congo, should indicate to investors enormous profits lie ahead in the resource arena. Not to Mentioned the debasment of currencies around the world most notably the Sterling & USD.
1) Even according to government agencies, peak oil is right now! I'm sure we have all learned by now, they are so full of it, it is about to pop out their eye balls. In any case total oil reserves will be on the decline as we move forward, thus shifting the supply curve down while the demand curve will shift up again as large amounts of oil are needed to industrialize these former 3-rd world Countries.
- believe it or not my favorite pick now that CNOOC has more than doubled is the Candian Oil Sands Trust. Yeh i am aware the margins are lower than ind avg, but at 150,200$ oil, it is insignifcant. It not even worth mentionining if you bring up the fact, their reserve base is significantly larger than industry avg (and continues to expand as a result of a 37% interest in the SYNACRUDE Project).
- CNOOC is high on my list mostly because the unproftibale refining business is a small part of their business. They also own a significant portion of the subsidiary CHINA-BLUE CHEM. -
-Pennwest and Penngrowth are two gems that have gone overlooked following the announcment that they will lose their tax status. But they are a buy soley on a valuation basis.
2) Agriculture - If you go and find data for the last deacde on basic Ag products, you will find a number of them where the production-consumption gap narrows year after year. I have found wheat, corn and cotton extremely compelling. Additionally Potash is not dead and will play an important role in the future due to the fact it enriches the harvest well, provides a high yield relative to other fertilizers. Better yet the only mines are in Canada and Russian.
Viterra - Soon to be ABB Viterra is a gem in the wheat market. the recent aquisition of ABB grain reduces weather risk in addition to providing an international reach. They are engaged in wheat pooling/handling/marketing thus profits are tied to the underlying commoditty.
Migao- My favorite Potash company,. It is growing in triple digits and capacity is expected to increase 75% in the next 14-16 months. It reminds me of Potash (POT) 4 or 5 years ago.
Potash - need I explain Precious metals- Even if you dont buy into the inflationary scenario, silver will be an important material in the future of batteries, solor panels and numerous electronics. Thats alone supports at 18-20$ Intrinsic value.
Silver Wheaton - Strictly a royalty comany, thus not subject to increasing input costs nor capital expenditures as this point.
Gold - The Inflationary hedge Most people with any sense of rationality realize a massive wave of inflation , the likes we have never seen before will soon be upon us. Gold Miners not only serve as a hedge but provide leverage to this hedge.
Yamana Gold - Growth and Valuation
Agnico-Eagle - Superior Growth amongst its peers plus multiple catalysts due to the quality of their mined
Jaguar Mining - Valuation Play
Royal Gold - like silver wheaton but gold as opposed to silver
Portfolio- COS.Un - Canadian Oil sands trust
CEO - China National Offshore Oilfields
PWE - Pennwest
PGH - Penn Growth
MGO.TO - MIgao
VT.TO - Viterra
SLW - Silver Wheaton
AUY - Yamana Gold
AEM - Agnico Eagle
RGLD - Royal Gold