“The Secret Metal (Better than Gold) that Could Add a Zero to Your Net Worth”

Sniffing out the latest tease from The Crow's Nest

By Travis Johnson, Stock Gumshoe, December 12, 2013

This latest pitch coming through from the Wealth Daily folks, for Jimmy Mengel’s The Crow’s Nest advisory, has caught the attention of plenty of Gumshoe readers — it starts with a long spiel about tapping into the “secret” holdings of billionaires by using a SEC disclosure rule that these rich folks are all fighting tooth and nail, but then settles in to tease us about a few specific investments that they think will boom (and that they found, presumably, in the pages of these SEC disclosures).

The SEC data they talk about in the ad, by the way, are the 13F filings — generally these are due 45 days after the quarter end from all institutional investors and fund managers, which is why we know quite a bit about the holdings of Warren Buffett or Carl Icahn and most of the other celebrity investors and hedge fund managers, similar to the quarterly disclosures by mutual fundsd. They don’t have to disclose positions that aren’t traded in the US, and they can occasionally get permission to keep one of their investments secret for a bit longer (as Buffett does from time to time when he’s in the midst of trying to build a large position at quarter-end and doesn’t want to boost the price up, I think he last did that when he was buying IBM shares for Berkshire but my memory might be faulty), but other than the fact that this data comes with a time lag that is quite substantial for some investors it is genuinely valuable information.

Of course, everyone who wants it can get it for free from the SEC’s Edgar database so it’s not that valuable. It’s definitely interesting to see the changes in portfolios as big investors shuffle their deck chairs and buy or sell, but the most prominent ones are also widely reported on CNBC and in the investing pundit universe in general and there are a large number of websites and newsletters that track 13F filings to try to turn up exciting info. Surprising new additions or sales of existing positions can certainly move stocks on the day that these 13F filings come out, but that’s definitely the exception (and, of course, the portfolio that’s being disclosed is about six weeks old when these are released — so they could be impacting stocks that the original superstar investor doesn’t even own any more).

And many of these folks have truly massive, diversified portfolios of dozens or hundreds of stocks under their management so there’s plenty of room for smaller stocks or smaller transactions or less-well-known investors to fly under the radar to some degree.

Which seems to be the point of this teaser pitch — though of course, it has to be a “secret” or it wouldn’t be any fun! Here’s a bit of the spiel just to give you a taste:

“Why America’s rich elite will do anything to keep this document out of your hands…

“The story behind this little-known document might make you angry, especially if you’re tired of Wall Street’s rigged game.

“The good news is this document could have a huge impact on your wealth this year.

“The government has been publishing it since 1975 at a non-descript Federal office located at 100 F Street in Washington, D.C., just three miles from the White House.

“Even though it has been publishing it for the past 38 years, 99% of Americans don’t know it exists. And it’s not hard to see why…

“America’s richest investors have done everything they can to keep it off-limits from regular folks like you and me.

“They won’t talk about it. They won’t even acknowledge it. Most of them won’t even tell their own family members this document exists.

“But even with all their attempts to keep this information underground, a small circle of ordinary investors like you and me has managed to access one of THE closest-held investing secrets in history — making their own fortunes in the process.”

And what’s up with the “secret metal” bit? Here’s how they put it in the ad:

“Elite Investor #1: “The Secret Metal that Could Add a Zero to Your Net Worth”

“As you know, from 2002 to 2011, gold went up 600%.

“If you missed that big bull market in gold, don’t worry…

“Now you have a second chance to catch a bull market in another metal. Only this bull market has the potential to be much bigger than the gold bull market.

“One of the wealthiest people in the financial world considers this to be one of the most incredible opportunities he has EVER seen.

“This super-investor turned some $15 million into roughly $460 million for his customers from 1998 to 2006. Now he’s massively investing in this metal.”

The Mighty, Mighty Thinkolator can tell you that this “super-investor” is Rick Rule, who used to run his own shop as a small investment banker and advisor in natural resources, with that incredible run into the mid-2000s, and merged his company with Sprott, the big Canadian asset manager, a few years ago.

And what’s that “secret metal” he’s apparently hot on now? Here’s a bit more:

“I’m not talking about gold, silver, platinum, or palladium; this is an opportunity I doubt anyone reading this has ever considered before.

“It’s completely separate from the U.S. economy, which means no matter what happens to America over the next few years, you could still make five times your money on this single investment.

“In the 1970s, when this metal entered a bull market, it went up tenfold.

“And that was not the only time this metal made a lot of people rich.

“There was another bull market more recently, from 2000 to 2007…

“in the last bull market, this same super-investor was heavily investing in the producers of this metal. He says a lot of people who followed him back them ‘added a zero to their net worth as a consequence of that market.'”

So what’s the deal? What’s the secret metal that Rick Rule made millions from in the last bull market, and that he’s hot on again now?

Uranium.

Well-timed, since our longtime reader Myron Martin shared a piece on uranium just a week or so ago — but you probably knew that already, and we’ve seen a consistently rising level of chatter about uranium from many of the newsletter pitchers and free pundits we follow. It’s a nice story because it has lots of global intrigue and also has a strong catalyst that’s likely to shake up the market in the coming year — so it’s a really hard market to figure out, and not just because it’s not really an “open” market like we have with most commodities (there are no uranium futures, you can’t take delivery and store it in your basement unless you want to create an army of radioactive zombies, etc.).

The “shake up” to the nuclear fuel market is the end of the Megatons to Megawatts program that had Russia dismantling their nuclear warheads and selling the fuel to the US to be reprocessed for our power plants — Putin declined to extend that program into next year, so there will be more Russian fuel on the open market but also more demand from US power plants that will likely mean we need more mined supply from somewhere. Folks are still expanding the use of nuclear power for electricity generation and building new reactors, it’s just that they’re not doing much of that here in the US or in Western Europe or Japan, they’re doing it in China and, to a lesser degree, India. And even without new reactors, existing reactors are being kept alive longer and longer and need refueling.

The uranium market is certainly not super-predictable — uranium prices fell in the late 2000s financial crisis along with everything else, partly because the US was selling down some of its stockpile, then there was a boomlet into 2011 that started to wither just before the Fukushima disaster in Japan and then collapsed following that disaster … and despite the fact that absolutely everyone in the uranium business has been pretty focused on the end of “megatons to megawatts” for several years now, the price of uranium on the spot market (which is a small piece of the market, but as close as we get to real prices) has been falling pretty consistently over the past year.

Here’s a little more from the ad:

“This super-investor believes the stage is set for the next bull market… and he thinks it will be as big as the last one. That’s why he’s investing heavily in companies that produce this metal.

“In short, he thinks these stocks will, on average, quintuple in price in the next two to three years.

“Soon this will become one of the biggest topics in the investment world, as more and more people start hearing about it. I wouldn’t be surprised to see this story on the front pages of every major financial newspaper before the end of the year.”

Do we get any more clues about specific stocks they’re suggesting? Well, beyond the fact that they hint about Rick Rule and presumably they like the uranium stocks that he likes, we do get this:

“In this report, I also reveal the name of that company that rallied almost 18,000% in the last bull market. I wouldn’t be surprised to see this stock returning ten times your money in the coming bull market!”

Well, I don’t know for sure which one that was that rallied 18,000% — the huge winner I see mentioned most often from that last uranium bull is Paladin Energy (PDN in Canada or Australia, PALAY on the pink sheets), which went from a penny to ten dollars (it’s now back to 45 cents), but that’s not quite 18,000 percent, and a great many uranium stocks had spectacular runs and equally spectacular collapses in the past 10-15 years.

And though I don’t know that we’re going to end up seeing all the holdings associated with Rick Rule in SEC filings, he is part of Sprott now and Sprott reports its US holdings on 13Fs like other asset managers.

A quick scan of the 13F pulls up a relatively small position in Cameco (CCJ), the first pure play “Major” in uranium that would come to anyone’s mind, a larger position in Denison Mines (DNN), and no other uranium stocks. But I’m not sure whether he might have other assets that aren’t reported through Sprott and if they’re not holding these stocks in the US, they don’t have to report anyway — so they could easily be holding bunches of little Canadian or Australian uranium miners and not be disclosing them.

If you’re interested in specific stocks in the uranium field, you’re probably going to continue to hear about lots of them this winter — which will mean that lots of little stocks with no real hope of becoming producers get promoted as the attention on uranium grows (assuming, of course, that there isn’t another meltdown or financial crisis first). I’ve heard Rick Rule speak positively about Fission Uranium (FCU in Canada, FCUUF on the pink sheets) and Denison Mines (DNN) in the recent past, and they’re both in the highly appealing Athabasca area where most of the highest-grade uranium deposits (like Cameco’s) have been found. He has also suggested Uranium Participation Corp, which is as close as you get to a direct play on uranium prices (more on that in a moment).

I’ve also seen the recent pitches from other folks at Angel Publishing that appear to me to be teasing the tiny upstart Azincourt Uranium (AAZ in Canada, AZURF on the pink sheets), which is also near Patterson Lake up in the Athabasca area. If you’re looking just at uranium itself, then the easiest exposure is Uranium Participation Corp (U in Canada, URPTF on the pink sheets), which is managed by Denison and acts kind of like an exchange traded fund for uranium — it simply holds a portfolio of physical uranium in storage to profit from a rise in the price. And you can check out Myron’s article from a week or two ago for more ideas in the teensy weensy junior part of the market (the part that spooks me).

Do I own any of ’em? No, and I don’t have to file 13Fs either … but I expect uranium will have a good ten years. Doesn’t mean it couldn’t fall in half again, particularly if there’s another crisis, but I think we need nuclear power (preferably from newer, cleaner, safer plants — let’s keep shutting down the old, leaky ones) and eventually someone’s going to have to be willing to pay more for it or we’re going to stop looking for and mining more deposits. I’d personally probably stick with Cameco, Denison, Uranium Participation or the other relatively big companies — mining uranium is a big deal and it’s expensive, current producers are much more appealing to me than explorers.

So what do you think? Moved to follow Rick Rule into uranium? He’s been saying it’s a long-term no-brainer all year, but is also careful to say that even “no brainers” can take a far longer time than you think to play out. Have a favorite pick in the sector? Let us know with a comment below.

P.S. Yes, there were two other ideas teased in this pitch, too — more on those shortly.


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84 Comments on "“The Secret Metal (Better than Gold) that Could Add a Zero to Your Net Worth”"

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T.L.
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0

with more countries building reactors there should be a increase in demand for uranium. But no one knows how much production will go up as a result. If too high that might flood the market.

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takeprofits
Irregular
404

Flooding the market is highly unlikely, there are simply not enough domestic producers to take up the slack as the last Russian shipment is already in transit. Kazakhstan is also cutting back production, Cigar Lake is still not on-line ad infinitum.

Thomas Lepere
Guest
0
Myron, Uranium- based reactors and their proliferation is INSANE in view of their poor past SAFETY records at Fukushima, Japan; in Russia and at 3-mile island in Pennsylvania which all have definitely detracted from hazardous uranium usage. Safer now and being proliferated are MUCH more safer Thorium-based reactors! Hopefully, safer THORIUM-based reactors will quickly REPLACE obsolete URANIUM-based or fueled reactors and their hazardous waste materials over centuries of nuclear byproducts. Nuclear reactors that use uranium which proliferate toxic radioactive wastes as well long beneath mountains storage times of such hazardous waste in our world needs to go obsolete for the… Read more »
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takeprofits
Irregular
404
Accidents unfortunately are a part of life, and human beings make mistakes. It was certainly a mistake building a nuclear plant at Fukushima from several aspects. Your reaction, though not unusual, ignores alternatives that are currently available and better safety records can be established even with current reactors. The point is that far more people are killed by car accidents and even plane crashes than nuclear accidents, which are fortunately quite rare, but we don’t ban planes or cars in spite of the carnage on the hwys. We NEED energy, and more of it all the time, so the nuclear… Read more »
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flyinkel
Member
17

Sounds like you have been drinking the coolaid Mr Martin. I would think since we still don’t know how to safely dispose of the spent nuclear fuel rods, we might want to find other energy sources that don’t make you glow when their disposal unfortunately leaks. Because over time, they always do, and we keep kicking this can down the road for future generations to figure out. The only thing that they are figuring out though is the very expensive costs of nuclear clean-up from both a $$$ and environmental perspective.

James B.
Guest
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If you want to see what the future hold look at http://www.gen4energy.com/

takeprofits
Irregular
404

Thanks James, any contribution of newer safer technology is certainly welcome, the point remains that there is no “quick fix” to replace existing forms of energy needed to keep the lights on, which unfortunately for many people includes nuclear. From an investment standpoint not all proposed solutions are currently investable. I respect the fact that people like “flyinkel” above may have ethical considerations that would keep them from investing in uranium, but that is no reason to “shoot the messenger” I just report on investment trends from a pragmatic perspective.

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Joseph E Fasciani
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Hello, James B!
Yes, from what I read at the gen4 website, this approach can answer a LOT of presently unmet power requirements, and promises to do it in a cleaner, safer modality than earlier nuclear-powered electricity generation stations.
I admired their underground placement as well, which is at once both more safe and more secure than previous sites. I’d heard about this approach earlier, but this was the first time I’d seen diagrams representing how it would typically play out.

Thanks for the ‘heads up!’ on it,
Joseph E Fasciani
Victoria, BC

takeprofits
Irregular
404
Doubt that it will “happen quickly” Thomas no matter how desirable from an environmental point of you. Don’t hold me responsible for something I have no control over, I am simply reporting the facts in respect to uranium as an investment and if you choose not too to do so, that is certainly your right and prerogative given your obviously strongly held feelings. Reality is that even though much safer reactor designs are in the works, and hopefully safer nuclear waste disposal, for the immediate future we are stuck with what we have and unless we are prepared to reduce… Read more »
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Ponce
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People dwell on 3 nuclear plant accidents. But there are hundreds of otherPlants operating safely around the world. The new plants are constructed much safer. The leak at 3 mile was due to the use of regular steel in the tubings. There are no problems like that in Japan as they use only stainless steel. The Russian accident should not happened. That antique design won’t be allowed to operate in USA. CHARGE THAT TO RUSSIAN CARELESSNESS. THE Fukushima is not an issue of bad technology but rather a bad location. Japan being Tsunami prone should not locate any plant beside… Read more »
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Ponce
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0

Right now the production is not enough to supply existing plants. So the reserve is being used up. In addition to Russia not extending the sale to USA uranium salvaged from nuclear arms, Russia will squeeze further the western countries by them buying Uranium One… a major uranium producer. That was my “Ace in the hole” but it got bought out.

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Irving E. Brown
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What about IAALF IBC ADVANCED ALLOYS CORP new beryllium (BE) clad fuel that they have tested and patent , some % more effective & cooler in operation ?

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Paul
Guest
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One can only hope that someday the world will make the switch to Thorium powered reactors (Molten Salt Reactors)…now if anyone knows of a pure Thorium play – that might be interesting.

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Wilson Turner
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Thumbs-Up for Thorium! (that was a slogan we were spit-balling at work after one of us read about thorium reactors…) One of the problems with them being adopted, though, might be one of the “problems” with them never being developed the way they should have in the first place, which as I recall from the article was that the fissible material is very difficult to enrich to weapons-grade levels.

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takeprofits
Irregular
404

If you wait for thorium reactors to become reality you will miss out on the next positive cycle in uranium. Made a lot of money in uranium from 05-07 and the cycle is due for a repeat.

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Thomas
Irregular
50

LTBR

takeprofits
Irregular
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Monitoring the field and anything positive hits my radar, irregulars will be the first to know.
In any case, modern reactors being built to-day are much safer than the older reactors at Chernobyl, or even Fukishima, which was a poor choice to build a reactor in the first place.
Sometimes new technology has a learning curve before it is perfected. The world needs energy and nuclear when done properly can be as safe as any other technology and is cheaper and less polluting in total than coal, the old standby.

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ventureshadow
Member
0

The last “megatons to megawatts” shipment was made to the USA from Russia. I read that this is supposed to last for a couple of years. So, maybe the uranium hype is starting rather early.

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takeprofits
Irregular
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Not so sure it is as much “early” as it is overdone. That was certainly the case with the Nick Hodge “tease” in Angel Publishing promo. Incidentally, I was not trying to be negative about AAZ (Azincourt Uranium) as much as I was pointing out the incongruity of Nick’s use of this speculative explorer stock as a supposed solution to a “lights out” scenario he was predicting with the demise of the Russian contract. There are however 3-4 U.S. producers that have existing contracts for several years out at prices up to 62% higher than current spot. Details in to-days… Read more »
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takeprofits
Irregular
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Better a few months early than a day late when a major event takes place.

Anonymole
Guest
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Adding zeros to my net worth? I add them every day: 0 + 0 = …

Wilson Turner
Guest
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Well played…!

SAGE
Guest
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Thanks for the smile…. 🙂

takeprofits
Irregular
404

Been there, done that, how about becoming an irregular and changing course?

ectopicbrain
Irregular
37

Love it!

Alan Page
Guest
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With the Fukushima mess and the Pacific being contaminated with nucleaur waiste -I’m not sure I agree that the uranium will go up -Unless there is newer and safer powerplants that won’t wreck the planet -soil – water -fish -birds – air -that I don’t know

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John Harris
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Thorium reactors and Molten Salt reactors are both far safer ways to produce electricity. So safe, they literally can’t melt down. Molten salt used existing nuclear waste, and there is enough of that sloshing around in storage all over the world to provide almost unlimited fuel. And Thorium reactors, well use thorium, not uranium. So while demand for Uranium may go up for existing light water reactors that have inherent dangers of meltdown (must be constantly cooled) that is bound to eventually diminish as the world moves to safer reactors. I just wish the environmentalists would wake up to the… Read more »
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takeprofits
Irregular
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I understand your skepticism Alan, but in spite of the mess in Japan there are enough new reactors under construction that will be built to much higher safety standards than existing plants that will be kept on line because there is no “quick fix” solution to keeping the lights on otherwise. The world needs more energy and nuclear fits the bill for low cost electricity.

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Alan Page
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I understand that -sometimes I wish the whole grid would jsut blow up!

Nic from Switzerland
Guest
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This new way to safe nuclear energy is a real hope: http://www.transatomicpower.com

takeprofits
Irregular
404

Thanks for the post, unfortunately the website is not very specific about their technology. Maybe the website is still under construction.

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tardis
Irregular
2

Uranium One Inc (TSX:UUU) was a profitable holding for us, in and out as markets moved. Now it has been taken private by JSC Atomredmetzoloto, Russian Company, more here http://www.armz.ru/eng/company/about/ This happened by design, more likely a company this large see’s the future of Uranium in a more positive light…

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takeprofits
Irregular
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I made good money with Uranium One from 05-07, but you are right, the Russians now that their agreement for supply has run out are intent on capturing a bigger percent of the world market, which in itself should send prices for uranium higher now that they have the potential to get better prices for what they can supply.

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john hryma
Guest
0

There’s big rush in Northern Saskatchewan to find the next big Uranium discovery. Recently Alpha Minerals and Fission Energy made a big uranium discovery. Their shares appreciated after the find. Four mining Companies with big land holdings 246,643 Hectares have joined together to form Western Athabasca Syndicate. Combined they have 6 million in Cash to find the next big uranium discovery. These 4 companies have property very close to the Alpha Fission discovery. They are “Noka Resources, Lucky Strike Skyharbour and Athabaska Nuclear. Put these companies on your Watch List. GLTA.

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takeprofits
Irregular
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You must be an irregular, I profiled those in my last column with an update in to-days column on another attractive explorer in the Athabasca Basin. I own shares in all 4 for the record, but I think owning at least one would make sense for most investors as it exposes you to a discovery bump in all the players no matter whose property on which it is made.

sassykind
Member
28
Hi Travis & all, Back about 22/11/13, somewhere in Wall Street Daily – Insider, came across company called Transatomic Power (not listed on S/Exc.) . Apparently it specialises in Molten Salt Reactors using Thorium and nuclear reactor waste products and is able to use spent fuel rods and produce electricity. I’m not telling this very well!!! Check them up… it’s really amazing what they can do. Also the MSRs have a major safety benefit…… are ..considered “walkaway” safe i.e. if MSR loses power, It’s designed to coast to a gradual stop after a few days – even if area is… Read more »
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microbiobob
Irregular
4

I missed this discussion that included IBC, my apologies. But, I believe that the beryllium and carbide clad fuel is probably a lot closer to reality than Travis thinks due to the work being done by multiple collaborators. That’s a guess, I know, because no timeline is available.

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takeprofits
Irregular
404
Agree with you Robert, best to be positioned BEFORE the official announcement, you can miss out on major profits by being too sceptical. Once something is a “sure thing” most profits have already been made. The way to avoid unreasonable risk is not by staying away entirely, you just need to be conservative in your portfolio allocation to individual stocks and have a balanced portfolio spread over different sectors and size of companies. Every study I have seen confirms the statistics that smaller less known stocks return far bigger returns than supposedly Blue Chips that are deemed safe. Ask some… Read more »
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dennis
Guest
0

Uranium is here to stay. You will not outlive uranium. So,invest well and make a lot of money.Reactors + uranium=money. Happy Holidays!

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Joan in Houston
Guest
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I own some CCJ ((I love Canada)), which is depressed, and I intend to add to it just as soon as the shares begin to move upward more in value. It seems to me — I am NOT a CFA — that IF China wants to add to its power-generation capacity QUICKLY — they are going to need to turn to nuclear power, regardless of the misfortunes which sadly befell Japan.

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takeprofits
Irregular
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Yes indeed Dennis, hope lots of people do and there is lots of time before the end of the year for people to really study these stocks in detail and use stink bids to get the best possible prices on their choices to take advantage of market volatility.

SAGE
Guest
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Yes every-time I read a Nick Hodge pitch it is always sprinkled with past picks of high performance like ” Alternative energy holdings” who were going to build the next generation clean Nuclear plant in Idaho I think… and it returned 400 plus % Well today it can be snapped up at the bargain price of 0.001 So…. if your going to buy on the hype you best not hold for long.

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Ray
Guest
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Travis,

I believe a penny to $10 is 100,000% but who cares after you get that first 18,000%. A thousand dollars becomes a million dollars rather than a measly $180,000.

Ray

Slick Rick
Guest
0

With such an abundance of natural gas FCEL should do well in the coming year! Much better than risky nuclear energy for conversion into electric power. . .you can ask the Japanese about that!

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takeprofits
Irregular
404
Fuel Cell Energy FCEL $1.78 may well be an up and coming technology to be considered. Like Ballard Power Systems BLD-V I had an early interest in however, the stock has been essentially flat for years, but this past week FCEL did bump us almost 5%, so maybe it is finally ready to move. I have been tracking BLD for almost 5 years and it has had numerous false breakouts that ultimately went nowhere. but it likewise was up around 5% this past week, so maybe there is a revived interest in fuel cells. For the record, Ballard Power is… Read more »
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