Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Thursday, July 05, 2007

News You Can Use for Thursday

The rest of this week is likely to be very light in volume, so as tempting as it is to buy, it's probably smarter to wait until next week. Until then, here is some news you can use, with my notes after selected stories …

China's Stocks Slide Most in a Month After New Share Sales; Sinopec Drops China's stocks fell the most in a month on concern $20 billion of planned share sales will overwhelm demand for equities as regulators seek to damp speculation in Asia's best-performing stock market.

Stocks Advance, Led by BHP Billiton, Rio Tinto on Higher Metals Prices Australian stocks rose, led by BHP Billiton Ltd. and Rio Tinto Group, after metals prices including copper and lead climbed.

XX Note – a certain small-cap nickel producer that Red-Hot Global Small-Caps subs recently added was one of those stocks that jumped today! We track double-digit open gains on this stock's shares on the ASX now (your gains may differ)

Crude Oil Rises to 10-Month High on Nigerian Supply Risks, U.S. Gasoline Crude oil rose to a 10-month high in New York on concern renewed violence in Nigeria and refinery breakdowns may curb U.S. fuel supplies.

Shanghai Starts Individual gold trade this month The beginning of gold trading by individual investors on the Shanghai Gold Exchange (SGE) later this month is expected to provide a welcome alternative at a time of high stock market volatility.

XX Note – 1.3 billion potential gold buyers … hmm ….

Meridian Gold rejects Yamana/Northern Orion 'bid' While Meridian Gold has yet to receive a formal offer from Yamana Gold and Northern Orion in their proposed three-way cash-and-stock bid for the Reno-based gold miner, Meridian's board Tuesday said it has decided Yamana's bid announcement does not "provide a basis to enter into discussions with Yamana."

XX NoteRed-Hot Canadian Small-Caps subs, you know that Yamana is in your portfolio. Meridian is playing coy, but don't sweat it too much. If the deal goes through, Yamana's stock should go up. If the deal doesn't go through, Yamana's stock should go up (the deal with Northern Orion is still on). The only thing related to this Meridian deal that has the potential to hurt Yamana's share price is if Yamana overpays for Meridian. Let's hope they're not that dumb (and they're not that dumb).

Silver price to remain high on investor interest The silver price is likely to remain in the $10-15/ounce range, despite the fact that the market remains in surplus. The Fortis/VM Group said in its debut Silver Book publication the silver price has recovered and is following an "upward trajectory" as the silver investor has returned.

Warning sirens blare as uranium melts down
Why the meltdown? Blame it on the price of uranium, which had soared as global demand for nuclear power surged, but fell last week for the first time in nearly four years.

XX Note – I enjoy hype as much as the next guy, but a $3 pullback in the spot price of uranium is NOT a meltdown. This pullback is something we've expected, it will likely be short-term, and it should be an extraordinary buying opportunity. Indeed …

Spot Uranium Price Declines – Finally "The long-term market is fine," Clark answered. "We still see considerable long-term activity, with no indication of softening prices there." TradeTech's long-term price indicator remained at US$95/pound.

West Texas reinventing itself with new energy projects Just last week, a University of Tennessee study projected that Texas would lead the nation in production of renewable energy by 2025, creating more than 173,000 jobs and adding about $22.8 billion annually to the state's economy.

Have a great Thursday!


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