Korean Job Discussion Forums

[the_beaver]

Related vaguely to this thread: this thread (really vaguely). What stocks are you hot on?

I'm a value investor and pretty much go for companies that expand without taking on debt, have good management, and I understand what they're selling. Lower risk stuff. But lately I've been looking at NTRZ.OB and I'm thinking that there's potential here. They have ultra-cheap raw material, patent-protected technology, can't keep up with demand and probably still won't be able to even if they quadruple output, signing contracts with big companies left and right, and finally in the black.

First, what do you think about Nutracea?

Second, what stocks are you hot on and why?

[4 months left]

Hot....well I said on this board about BLE (Toronto) a few months ago (see How did your stocks do in 2006) and it is up over 150% - maybe lucky but huge demand for molybdenum.

Now I say check out ARU Aurellion Resources, Gold company, one of the largest gold discoveries in DECADES. BUT it is in Ecuador, some think it is equal to Chavez and Venezeula so it gets a huge discount. New President is an Economist educated in the U.S. (I wrote about this in the "Do you want to make some money" thread) up 22% since that and have bought twice more including Tuesday of this week. I think it can at least double from here and will probably double.

Late and a little drunk, will look at NRTZ tomorrow, would like to know about other ideas as well. I am a little wary of the market, has been on such a huge run.

[4 months left]

Looks pretty good, beautiful chart, financials look good. I checked the message board on Yahoo and very positive response on the product. Anything to do with diabetes is bound to make money. Thanks for the tip!

I still like uranium, China will build 3 Nuke plants each year for the next 10 years and they are over 120 planned in the rest of the world for the next 5 or so years. Cameco has a huge mine that was flooded last year, and predict it will be ready to go by 2010 but some think that is very wishful thinking. The amount of uranium at that mine is equal to Saudi Arabia, Iran and Kuwait taken off the oil market. Uranium up over 800% the last 4 years, up 57% this year. I have Dennison DNN, SXR and Khan - KRI (toronto)

Cobalt - used in laptop, cell phone and hybrid car batteries, price is expected to rise 57% this year. Cobalt is essential for U.S. security because of battery power for the military. FCO (Toronto) has the only pure cobalt mine in the U.S. - Idaho, has the backing of local, state and federal gov't. Should be online in 2008, current price is CND$0.73 obviously not without risk but the reward could be huge. Also Geovic GMC (Vancouver) a cobalt mine in Cameroon. I own both.

[4 months left]

Beaver, did you buy NTRZ? I have been watching it and bought in at $3.09 on the recent dip.

Uranium keeps chugging along but the stocks haven't been doing much lately.

Uranium Auctions Drive Spot Price 11.5 Percent Higher

Two Auctions Down; Another on June 12th
�Could Reach Well Above US$140/Pound� by Monday

http://www.stockinterview.com/News/06022007/Uranium-Auctions-Higher-Price.html

[the_beaver]

[4 months left]

There are only a few producers and I think about 130-150 exploratory co's. Cameco is the biggest with Dennison, SXR and Paladin being 3 of the maybe 5?? other current producers. I own Dennison and SXR along with Khan KRI which is exploring an old Russian mine in Mongolia and should be in production in the next year or so.

If you go to bnn.ca they are a pretty good source of info on uranuim. Market Call and MC Tonight are phone in shows with analysts. There is one on the site (I think the others may be archived, but you would have to search on the site) if you look on the right side, go down next to where the currencies are and there is show with Brendan Kyne on Uranium stocks, a little old from April but he is pretty knowledgeable.

One of his top picks on that show is Aurellian Resources which has one of the biggest gold discoveries in decades but it is in Ecaudor. Last week there was a comment from a minister saying that the gov't would take 70-80% of mining profits. It was in an obscure paper and was later retracted as it was meant for the oil and gas industry but it sent the stock down, 20% and it eventually recovered to being down 5%. It has since drifted down some more, a great buying opportunity if you are willing to take the risk of being invested in Ecuador. If this stock was in a stable country it would be at least double.

[waltjocketty]

The price/earnings ratio on NPRZ is almost 200:1. That is outrageous. It's not a safe stock to be investing in right now.

[4 months left]

Oh??? Do tell us why.. and it's NTRZ. And just a little help, do you know the PE ratios of Wall Mart, Google and other co's were in their early stages? The PEG is only 1.33.

It was up 5.74%

[waltjocketty]

yes i do, but any smart investor will tell you that the best companies to invest in have a PE below 1. It's not a secret. Anything above that means it's overpriced and due to collapse. It happens to every company at some point. I didn't say you can't make some money while people are driving the price up. I just said it's not safe.

[4 months left]

[the_beaver]

[4 months left]

For a growth investor a large PE ratio doesn't matter. The PE ratio is a backwards looking indicator. Different companies are at different stages so the PE is relative. You have to compare it to the index, to other stocks, to the sector. The PE is one indicator but like I said it is looking in the rear view mirror. If you base your investing decision on the PE, you could be in trouble. It is only one tool among many to be used.

[waltjocketty]

when you invest, you're betting that a company will make money. If the PE is below 1, then the company is undervalued, and you will almost definitely make money. If the company's PE is near 200, then you are essentially betting that the company's earnings will increase by 20000%, which is a ridiculous bet to make. I don't judge solely based on the PE, but I never buy a company that is massively overvalued like this. It's just asking to lose lots of money. Also, as I'm sure you know, many analysts are warning about a general reduction in prices soon, so now is a particularly risky time to be doing such investing.

[4 months left]

Find me a company that has a PE below 1.

[4 months left]

In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story by itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects.

The P/E is sometimes referred to as the "multiple", because it shows how much investors are willing to pay per dollar of earnings. If a company were currently trading at a multiple (P/E) of 20, the interpretation is that an investor is willing to pay $20 for $1 of current earnings.

It is important that investors note an important problem that arises with the P/E measure, and to avoid basing a decision on this measure alone. The denominator (earnings) is based on an accounting measure of earnings that is susceptible to forms of manipulation, making the quality of the P/E only as good as the quality of the underlying earnings number.

http://www.investopedia.com/terms/p/price-earningsratio.asp