Tuesday, July 15, 2008
There's Still No Recession
Even though its been feeling like a recession for 6 months, economics keep telling us that it isn't so. I guess they must be right!
Monday, July 14, 2008
Coal Companies Cleaning Up?
Today, the Financial stocks were in complete meltdown. Stocks like Washing Mutual(WM) were down 35% along with Freddie Mac (FRE) and Fannie Mae (FNM). The one sector that did pretty well today was Coal. And why wouldn't it?
According to newsletter editor Byron King, the future for coal is promising;
“The U.S. Air Force is putting together a program to develop a domestic synthetic jet fuel. Just as the Air Force does not employ many geologists, neither does it run refineries. So the USAF has proposed to lease acreage on its vast land holdings to private industry. The idea is that private investment will build U.S. plants to convert U.S. coal to liquid fuels.
“The U.S. Air Force wants to leverage private industry and capital to construct a synthetic jet fuel industry. And then the USAF will become the final buyer for the product.
“The USAF is among the world’s largest fuel users… it is behind about 10% of all the jet fuel that gets burned in the U.S. So just selling jet fuel to the USAF constitutes a major market.”
In other words, the government is looking to solve a big chunk of our oil dilemma with coal, a naturally abundant resource in the U.S.
Looks like those coal mining stocks should see a light at the end of the tunnel!
According to newsletter editor Byron King, the future for coal is promising;
“The U.S. Air Force is putting together a program to develop a domestic synthetic jet fuel. Just as the Air Force does not employ many geologists, neither does it run refineries. So the USAF has proposed to lease acreage on its vast land holdings to private industry. The idea is that private investment will build U.S. plants to convert U.S. coal to liquid fuels.
“The U.S. Air Force wants to leverage private industry and capital to construct a synthetic jet fuel industry. And then the USAF will become the final buyer for the product.
“The USAF is among the world’s largest fuel users… it is behind about 10% of all the jet fuel that gets burned in the U.S. So just selling jet fuel to the USAF constitutes a major market.”
In other words, the government is looking to solve a big chunk of our oil dilemma with coal, a naturally abundant resource in the U.S.
Looks like those coal mining stocks should see a light at the end of the tunnel!
Tuesday, July 01, 2008
Investing In Vanadium: What's That?
“Ultra high-strength and super-light steels are the plastics of the 21st century,” says Chris Mayer, editor of a popular investment newsletter. “There is high demand for these steels for use in everything from jet engines to rail components. In turn, there is a big push for the quirky metals so critical in making them. And in those quirky metals are good opportunities for investors.”
“Vanadium’s primary use: to strengthen steel. Combine it with titanium and you get the best strength-to-weight ratio of any engineered material. That makes it practically irreplaceable in aerospace and other industries. Companies also use vanadium to produce sulfuric acid, and in nuclear power plants. Vanadium also promises new advances in battery technology. Giant vanadium batteries power wind farms and solar power plants.
“The vanadium market also has some interesting quirks. For example, 98% of the world’s vanadium comes from only three countries -- China, Russia and South Africa.
“South Africa, we know, has power issues. China is becoming more a consumer than producer of vanadium. Last year, China ended its export credits for vanadium because it needed the metal more at home. This year, China went further and put an export tariff in place.
“In the great infrastructure boom, vanadium takes its place at the table of other rare and obscure metals that are growing much more important. The price of vanadium, as with many of these metals, is way up… and rising”
“Vanadium’s primary use: to strengthen steel. Combine it with titanium and you get the best strength-to-weight ratio of any engineered material. That makes it practically irreplaceable in aerospace and other industries. Companies also use vanadium to produce sulfuric acid, and in nuclear power plants. Vanadium also promises new advances in battery technology. Giant vanadium batteries power wind farms and solar power plants.
“The vanadium market also has some interesting quirks. For example, 98% of the world’s vanadium comes from only three countries -- China, Russia and South Africa.
“South Africa, we know, has power issues. China is becoming more a consumer than producer of vanadium. Last year, China ended its export credits for vanadium because it needed the metal more at home. This year, China went further and put an export tariff in place.
“In the great infrastructure boom, vanadium takes its place at the table of other rare and obscure metals that are growing much more important. The price of vanadium, as with many of these metals, is way up… and rising”
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