Natural Gas – Can it get any Worse?

29-Mar-2012 | Reggie | Canadian Investing Commodities Oil & Gas

Today US natural gas futures hit a 10 year low at $2.16 per MMBTU (million british thermal units) and $1.59 here in Alberta.  This should not come as much of a surprise to anyone who has been following the market for the gas.  Production has remained at or around record highs as new technologies flourish and allow for extraction through unconventional means, along for the high demand and price for Natural Gas Liquids (of which Natural Gas is a byproduct).  Add to this, winter in North Americawas one of the most mild in years leaving demand for gas much lower than normal.

 

This leads to the question, how low can it go?  Some analysts think it might not be long until gas producers are paying consumers to take the product off their hands.  Storage tanks are completely full and there is no where to send the massive amounts of gas being produced.  This is definitely not the ideal situation as the economics of many of these gas wells allow for profits to be made even at these rock low prices, but with demand where it is, there is really no choice but for prices to continue to decline until exploration halts and wells are shut in.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Canadian Housing Outlook

21-Oct-2011 | Reggie | Canadian Investing Market Outlook

Just today, National Bank Financial released their outlook for the Canadian Housing market.  The report contained both good news and bad news.  The good news being that homes prices and sales should remain fairly stable throughout 2012 thanks to the consensus that the Bank of Canada will likely keep its policy rate very low as the economy struggles to improve.  The bad news is that in 2013 when rates are expected to increase, home sales are projected to decline by 9% along with prices.

 

The main crux of the reports argument is the weak global economic outlook.  As things strengthen up by 2013, interest rates will increase thereby reducing the purchasing power of buyers.  Consumer confidence levels are predicted to remain quite low as well which also won’t help the housing situation.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Benchmark Interest Rate to hold Steady

08-Sep-2011 | Reggie | Banks Canadian Investing

 

Today the Bank of Canada Governor Mark Carney announced that he will once again be leaving interest rates flat, as he has for the past 8 meetings.  This was not much of a surprise as the Canadian economy struggled to put forth positive growth data for the 2nd quarter.  In his announcement he made mention that he was not worried about the Canadian economy as it seems to be growing, but for the rest of the world which could have a deep impact on our exports as Europe and the United States continue to struggle with debt and employment issues.

 

The stock market reacted quite well to the announcement, jumping up by 200 points for the TSX, 75 for the NASDAQ, and 275, for the DJIA.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Pretium Resources – The next Silver Standard?

18-May-2011 | Reggie | Canadian Investing Commodities

With gold prices hovering close to $1500 per ounce, there have been quite a few new businesses looking to cash in on the hot commodity price.  In this scenario its hard to know which deserves to be the recipient of your savings especially when many of these mines have the same boasts about a very high grade and plentiful resource base.  One great way to distinguish the best possible investments is by looking at who is in charge.

If a company has the best proven and probably resource, with the highest grade ore, in a great location close to all infrastructure, but weak management it probably wont do that well.  If the business misses targets or runs up costs too high, investors will sell the stock to oblivion.  A great management team can make all the difference in the world by taking many variables out of the equation to give a stock the best possible chance of success.

Pretium Resources is in the process of getting a mine up and running in northwest British Columbia.  The project is being led by a guy named Robert Quartermain who happened to be the president of Silver Standard for 25 years.  During his time as president, Silver Standard went from being worth $0.70/share to $45/share and has become one of the largest silver mining companies in the world with a huge number of projects in the works.  Since beginning his careeer at Teck Resources back in the 80’s Quartermain has proven himself to be remarkably adept and running projects in a very efficient and productive fashion.

Quartermain’s track record combined with the excellent initial feasibility study, is reason enough for many investors to give Pretium a shot.  Since going public only a few months ago at $6, Pretium is sitting pretty comfortably just over $9 today.

 

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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TSX just can’t get a Grip

13-May-2011 | Reggie | Canadian Investing Commodities

For the third week in a row the TSX is again lower than it was before.  Most of the losses have been led by the energy sector which comprises over 1/3 of the index.  Since hitting an interim high at the end of April, crude oil is down $14, which in turn has driven down the price of a lot of stocks.  Contributing to the pain, the news has been full of headlines regarding a bailout for Greece, China raising their bank reserve rates, and general inflation concerns that include fears of high gasoline prices slowing down economic growth.  To sum things up there hasn’t been a lot to give investors much hope for the near term.

 

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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