Good afternoon
yet another positive day for equities…funny enough, bonds also stronger…as are base metals, with copper being the stand-out +2,2% in the moment.
Gold strong at 1764 US$ currently - poised to test 1800 soon?? I think the $ will lead the way….it has given up on the recent strength.
Retail Sales in the US very strong, labor market strong - Industrial Production was up, but by less than expected, while manufacturing activity continues to be strong. Not sure, why bonds are so strong…this is not fundamentally driven, but from the firm believe, that the FED will not be letting the market down for some time to come!
Very strong buying around for copper-names…Lundin, First Quantum, Antofagasta, BHP , RIO - you name them. I can only say, that I am feeling more comfortable with those names as compared to some tech-stocks, which are trading at 40x revenue!!!
Strike Energy - big, comprehensive presentation out today…concentrating on gas exploration- and production from Greater Erregulla/ urea ( fertlizer, “Harnstoff” in German ) production in Australia, based on gas and geothermal power from STX´s own resources / supply-demand equation for gas in Western Australia becoming increasingly more favourable for producers. The company is raiding 80 mill A$, most in a placement to institutional investors, and incl 5 mill$ to small investors ( up to 30.000$ per shareholder at 30ct ). The price is slightly disappointing, but in the overall scheme of things, 2-3ct don´t really make a difference. I think this will go like hot-cakes…STX have had a strong run over the last 12 month or so - but they have found a large gas desposit, which eventually, could well be 2- or 3 trillion cubic feet in size, That´s a big field by any standard, and could trigger the creation of entirely new industries in Western Australia. The exploration side has been substantially derisked now - large upside remains, though. And ths story is not just about gas here - it´s also on new industries, based on nearly carbon-free energy. It has been a long time and I would love to sell the stock to do something new - but I find it hard to find stocks, which offer a better risk-reward story! And last but not least at all - I am continuing to back an excellent management team! Stuart Nicholl´s saved the arse of longstanding shareholders like myself - he is now taking the company to new ventures…urea might not be Stuart Nicholl´s last idea! I have participated in the placement.
Have a nice evening
WS