10.27.15

Notes

1. Oil to remain sluggish, forecasts are for 60.00 a barrel by end of next year. OPEC says would be happy at 70. Natural gas to grow 2.2% globally by 2019.

2. China forecasts 6 to 7% growth rate for the next 3 to 5 years.

In the pipeline, chinese plan to build bullet train from Beijing to Moscow to Berlin.  8000 miles of high speed rail. Also connection to gwadar Pakistan. "The new silk road". Also a maritime silk road is planned to connect china to Pakistan, persian gulf and the Mediterranean. 

High speed rail line connecting Los Angeles to Las Vegas is soon to commence, with future connections to Salt Lake and Denver. China in partnership with ExpressWest will build it. So far it is all private.

The demand for raw materials, steel, copper, etc will be needed upon ramp up for the projects.

3.Freeport MacMoran. Trading at 12, announced over 3 billion dollar loss. Last month Carl Icahn , who owns 100 million shres, appointed 2 of his men to FCX board of directors to turn company around. FCX sold off oil and gas division wich resulted in the above losses to focus on core copper business.

This is a good opportunity, however I cant afford to take a sizeable position to make it worth while.

4. Siga.  Oral argument s heard oct. 8th. Waiting on ruling before end of year.

Expectations are for siga to hit 4.00 a share pretty rapidly will a one year price target of 11.00. All time high for the stock around 15, 20 would not be out of the question with a couple of new vaccines and FDA approvals.

With energy out of favor, now is a good time to pick up shares of ATLS and ARP.


10.27.15

SIGAQ .86
ATLS.  1.88
ARP.    2.38

SDR 2.89
SXC 4.72
SXCP 10.70
ORC 9.56
FCX 11.49

  

Cecil the Lion

Cecil the Lion was shot a few weeks ago and made global news. Since then, my 14 year old shetland sheepdog Jake has been in contact with Cecil via the Dionne Warwick psychic hotline. The two of them have come to a mutual consensus that you dont have to eat Nancy Pelosi to know what is in her.