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Sean Brodrick –Energy Sector Investing – Uranium, Lithium, Oil, Nat Gas, Solar, Wind, Utilities, Copper, and Rare Earths

Sean Brodrick, Editor of Wealth Megatrends and contributing analyst to Weiss Ratings Daily, joins me to review investing opportunities in the energy sector, and what kinds of companies he’s investing in and which ones he is avoiding in the uranium, lithium, oil, nat gas, solar, wind, utilities, copper, and rare earths stocks.

 

With regards to the uranium stocks, he is very encouraged the increased price action mid-week and wants to see how things play out for the balance of this week.  One of the big catalysts we discuss is how the changes to the taxes have increased in Kazakhstan, and how that may limit any big increases in production in the medium-term.  He remains more animated by the uranium companies in production, or that have a near-term pathway to production, and is less interested by the earlier-stage exploration companies, at this point in the cycle.  We also contrast the lithium markets and lithium stocks, and the bubble they had as more shorter-duration compared to the longer-duration fundamental drivers in the uranium sector.

 

Sean is still positioned in the oil stocks, but has pulled profits in some of the stocks and has been adding more nat gas stocks over the last couple months.   That larger companies that pay dividends seem fairly secure with these underlying oil and gas prices, and Sean expects them to have very positive Q2 financial reports. He also still likes some of the growth opportunities in the smaller to mid-tier companies, that are utilizing new technology, and that could also be compelling takeover candidates.

 

We then turned toward the changes in the energy transition themes, and got his take on why he’s avoided the solar and wind sectors, which have really struggled the last couple of years in a continued corrective pattern. In contrast, Sean has been much more focused on positioning in the utility companies, as they are able to capitalize on the lower costs for generating power via solar or wind or nat gas, in concert with higher electricity demands. We also weave into the discussion the continued need for copper, and why he is animated on the copper stocks, and the production and near-term productions companies.  Wrapping up we also check in on rare earths as a component to the energy sector, and why he is avoiding the stocks, in lieu of better opportunities in the sector.

 

 

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Discussion
9 Comments
    Jul 10, 2024 10:25 PM

    Forget anything other than silver, silver stocks are going to rocket WHY? because silver is so volatile and because the nations like China and India are buyers. Who can afford $2350 gold but a lot of the public especially in those two countries can buy silver. This time around the scrap silver market won’t cause the price to fall because people are hoarding scrap not to sell but to hold as an investment and believe you me, they know what has value because there is inflation everywhere. DT

    Reply
    Jul 10, 2024 10:41 PM

    SCZ- Santacruz jumped today just wait for their 2nd quarter financials. This is only a little bit of what will make investors salivate like when they are grocery shopping! LOL! DT

    Reply
      Jul 10, 2024 10:43 PM

      Indeed it was a nice pop today in Santacruz Silver and many of the silver stocks actually. For example, Gatos Silver ripped up 21% today as a big mover in my portfolio. Endeavour Silver up 15% today. Really nice to see some action in the Silvers…

      The uranium stocks also had a really nice pop today (with many stocks up 5%-10%), for those invested and diversified into more than just silver.

      Reply
        Jul 10, 2024 10:06 PM

        This also dispels the notion and fallacy in the resource sector that producers are
        already “fully valued” and that the only way you can get some torque is in the exploration stocks.

        That is simply not true, and a lot of times the silver producers can have some of the most blistering moves higher, but you at least know they have the margin of safety of ounces in the ground.

        There is nothing worse than being in a gold or silver bull market and being positioned in only early-stage drillplays that don’t even have any gold or silver in the ground yet to give optionality to the price moves higher.

        Reply
    Jul 10, 2024 10:37 PM

    Being patient often is rewarded. Took my first position in NFG.V. I’ve been waiting months for this chance.

    Reply
      Jul 10, 2024 10:57 PM

      Good luck on the new New Found Gold position Doc!

      Reply
      Jul 10, 2024 10:03 PM

      Hi Doc, you can’t go wrong with NFG. They finished their acquisition of Labrador Gold. I’m pretty sure they will acquire Maritime Resources. Maritime has two mills that are up and running and need feed. NFG has a property next door to The Pine Cove Mill where they can truck their supply ore from Queensway. It will be an area play second to none. DT

      Reply
    Jul 10, 2024 10:41 PM

    I am not sure where silver or any other metal is in the scheme of things except pretty close to absolute bottom. If most of Wall Street and bullion bank employees were indicted tomorrow and Citizens United replaced by totally contrary Statutes, the bull Run would be magnificent.
    Shortages are definitely an issue but Eco 101 “Supply and Demand” theory doesn’t hold much water when the algos of managed money only want to invest if they get irrational bargain basement pricing. It’s like a predetermined self fulfilling prophecy everyday. Those aren’t markets but a rigged casino of unregulated vultures. The metals sector is at a disgusting all-time low of intervention. Criminals only fail when they are stopped. Until then, the same smoke and mirrors will rule.
    However… the run can be started for some form of gains if The Fed drops interest rates. We will be the last to hear, and the first to experience a correction.
    The debt is unpayable and unexplainable without an admission of criminality … confessions don’t happen from career criminals. Failure is the end result. Caution is an understatement.

    Reply
    BDC
    Jul 11, 2024 11:46 AM

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