By Profit Confidential

At a time when the smartphone war is picking up, former Wall Street star BlackBerry Limited (NASDAQ/BBRY) is running for the exit as fast as it can. The company is expected to be sold in some form by November, as it tries to unload its issues on another company.

The stakes are high and extremely competitive. BlackBerry finally realized this. Hewlett-Packard Company (NYSE/HPQ) realized this early and vaulted from the tablet market; albeit, it’s still developing a higher-end tablet geared toward companies. Since its decision, Hewlett-Packard (HP) has doubled in price and fared much better than I previously thought it would.

Microsoft Corporation (NASDAQ/MSFT) is proposing to acquire the cell phone business of another former Wall Street darling, Nokia Corporation (NYSE/NOK), to take a run at market leaders Apple Inc. (NASDAQ/AAPL) and Samsung Electronics Co. Ltd. (Read “Why I Like Microsoft’s Proposed Acquisition of Nokia’s Cell Phone Business.”)

So, we now have a three-party battle for smartphone and tablet supremacy.

Apple dominates the U.S. market and continues to make the most attractive products that consumers will line up overnight to get their hands on. The next-generation “iPhone” will be launched tomorrow to great anticipation. (I’m actually looking forward to it, and may upgrade my old “iPhone 4.”)

Of course, Apple is also expected to launch a cheaper plastic “iPhone 5” version that will cater to those who can’t afford the hefty price tag not only in America, but in the emerging markets as well. If Apple, can get its smartphones sold in China (it’s already had talks), it could be a massive game-changer for the company and could really add some spark to a stock that has been looking for love.

Samsung dominates the emerging markets, but the field will likely get crowded with Nokia getting a push from Microsoft and the addition of a cheaper iPhone.

If Microsoft can close its acquisition of Nokia, it would jump to third place, but with tons of work to do. While it will not be easy, I wouldn’t be ruling out Microsoft, with its vault of cash ready to drive its mobility sector. The Nokia “Lumia” phone, which uses the “Windows” mobile platform, is not that bad; with some changes and tweaks, it could take a run at the market leaders. For Microsoft, Nokia is currently huge in the emerging markets due to the low cost of its devices, so this is a key advantage for the company—that is, unless Microsoft somehow screws it up and decides to jack up its prices.

As for BlackBerry, its time has come. The products are still very good, but it needs a new owner who can somehow turn things around and get the former leader back in the race.

Article by profitconfidential.com

Source: Peter Byrne of The Metals Report (9/10/13)

http://www.theaureport.com/pub/na/david-franklin-is-platinum-the-new-gold

The Goldrums of June are giving way to a new dawn for platinum group metals, says David Franklin, a market strategist at Sprott Asset Management. While white metal miners face a variety of challenges, there is an increasing demand for platinum and palladium from vehicle manufacturers in the U.S. and China. And supplies of the hard-to-find metal are vanishing day by day. Now is the time to buy into existing stockpiles of the precious metal, Franklin tells The Metals Report.

The Metals Report: David, can you give us your recap on gold’s recent performance?

David Franklin: During the first half of the year, gold companies booked large write-downs to assets, which they had purchased earlier in the cycle at inflated values. Then, Bernanke mentioned a potential reduction in stimulus from the Federal Reserve, which prompted U.S. hedge funds to sell large positions in gold. Soros, Paulson and Daniel Loeb each sold a large chunk of their holdings. There was just a huge amount of bad news in the whole precious metals sector and it was all priced in by the end of June.

TMR: Are precious metals in the midst of a true comeback?

DF: We have turned a corner and are now recovering as the market rebalances. The good news is that gold and silver are up more than 20% from their June bottoms. We still have huge demand for physical metal as evidenced by depleting inventories at the COMEX.

TMR: How are the junior gold miners doing?

DF: Look at the GDXJ, which is an index of junior miners: Gold stocks have recovered somewhere north of 30%. The GDX, which is an index of senior miners, has recovered in the neighborhood of 20%. Gold stocks have more than rebounded since the horrible June lows.

TMR: What qualities do you look for when assessing precious metal miners?

DF: First and foremost, I look at the company managers. I put a premium upon an executive’s previous success within the industry. That is more important to me than his or her ability as a geologist or as a mine builder. Secondly, I independently assess the merits of the company’s deposits, and whether a mine has a good chance of showing a profit. There are so many deposits out there that cannot become profitable. The third item I look at is the firm’s access to capital. Can it raise enough money to actually build a mine and bring it into production? Frankly, finding all of these qualities together in one company at the same time is a very rare combination.

TMR: How do platinum group metals fit into the overall precious metals market in terms of industrial demand and other uses?

DF: In dollar terms, PGMs are the smallest of the precious metal markets, and these metals are used differently than gold. For example, gold is a monetary metal and very little of it is used by industry. Most platinum and palladium is consumed by industrial processes, but it is still considered a precious metal.

TMR: What is the difference between platinum and palladium in terms of use?

DF: Both platinum and palladium are used in catalytic converters, which remove carbon dioxide and some of the smog producing gases from internal combustion engines. However, platinum has a higher melting point and can be used in hotter burning engines, like diesel cars. Engines with lower operating temperatures, such as gasoline cars, can use palladium in their converters. Right now, palladium is about half the price of platinum.

TMR: What is the global supply and demand outlook for platinum group metals?

DF: South Africa is a very significant player in gold mining, and an even more significant player in platinum mining. More than 70% of the world’s platinum comes out of South Africa. Right now, South Africa is entering its biannual labor negotiations and tensions are very high. The gold and platinum mining companies have offered their workers a 5% increase in wages. Depending on the particular union, the workers are demanding a doubling of wages or a 60% increase—and are threatening to strike. You can imagine how a strike could impact the price of gold, and to a lesser extent the price of platinum. Last year, the platinum price increased by 15% after striking miners were shot and killed in South Africa by government forces.

TMR: Will the new South African Mineral and Petroleum Resource Amendments make a positive or a negative impact on the current state of mining in South Africa?

DF: After the violence last year, the mining companies and the government are both trying to reach better terms with the unions. There are rumors that South Africa would consider nationalizing the mining assets. Some people in the government have been spouting this view for years now. It is remains a very volatile political environment, and any potential changes can be significant.

TMR: Why, geologically, is platinum concentrated in South Africa?

DF:. Vast quantities of molten rock from the earth’s mantle were brought to surface through long vertical cracks in the earth’s crust, huge intrusions created the geological intrusion known as the Bushveld Igneous Complex. Those metal veins are very thin. That makes it very difficult to do highly mechanized mining, which generates a lot of waste ore and a very small amount of platinum and palladium. Consequently, PGM miners do not rely upon mechanization, like trucks and other mining equipment. They dig the metal out by hand while lying on their backs in very cramped and hot conditions. It is impossible to get mechanized equipment into these narrow mine shafts. This method of mining is very expensive because of the amount of manual labor needed.

Consequently, at current platinum prices, about 60% of the mining industry in South Africa is not making a dollar producing platinum. The cost of producing platinum is about $1,800 per ounce ($1.8K/oz), but the market price is in the $1,400/oz range. Because the miners are losing money, they are not investing in their mines, which are increasingly in poor conditions. The bottom line is that investors should buy the metal itself.

TMR: What companies do you cover in the Bushveld region?

DF: Ivanhoe Mines Ltd. (IVN:TSX) [formerly Ivanplats (IVP:TSX)] has made an unbelievable discovery in a previously unexplored area of the Bushveld. Robert Friedland, a long-time Canadian miner, is the founder and executive chairman. The company has found a previously undiscovered deposit of platinum that can be mined mechanically! Ivanhoe will be able to mine platinum at a fraction of its current cost of production. This reformation is one of the best deposits of platinum in the world; it could have a huge impact on the platinum market.

TMR: What makes it unusual?

DF: The Platreef project includes a recently discovered underground deposit of thick, PGE-nickel-copper mineralization in the Northern Limb of the Bushveld Complex, approximately 280 kilometres northeast of Johannesburg. Many platinum mines chase deep underground veins that are very narrow. The platinum in Friedland’s reformation is highly concentrated, with thick veins of the metal close to the surface. It can be mined using the open-pit method, which is very cheap and unlike any other deposit in the complex.

TMR: Could Russia contribute significantly to global PGM supply?

DF: Russia does not have any labor issues, per se, but it has other problems that are impacting the palladium market. Norilsk Nickel (GMKN:RTS; NILSY:NASDAQ; MNOD:LSE) is one of the largest mining companies in Russia and it owns a nickel deposit with a palladium byproduct. Norilsk had been stockpiling the palladium from this deposit and regularly selling it on the world market. But last year, Norilsk confirmed that its palladium stores are almost depleted. That supply had been a huge overhang on the market.

TMR: What’s demand look like for palladium?

DF: The primary use of palladium is in catalytic converters for cars. North American automobile production is the highest its been since 2007. Chinese car production is hitting all-time highs, with 10%, 20%, and 30% increases year-over-year. As above-ground stores deplete, the price will walk higher. Interestingly, a company recently launched a platinum ETF in South Africa and demand exploded. So now there is the concern about the diminished Russian supply, and concern that there is not enough palladium being mined in South Africa to meet increasing investment demand from ETF investors.

It’s pretty close to a perfect storm in the palladium space.

TMR: Are there platinum miners outside of South Africa?

DF: At Sprott, we like Prophecy Platinum Corp. (NKL:TSX.V; PNIKF:OTCPK; P94P:FSE). It is located in Canada, which is a much safer jurisdiction than South Africa. It is exploring a deposit that had previously been mined by several other companies. The deposit contains very high concentrations of nickel, platinum and palladium. Prophecy has a shot at turning that project into a good mine.

TMR: Prophecy’s stock price hasn’t been doing that well in the last year. Is there an explanation for that?

DF: Prophecy published a preliminary economic assessment saying that it would cost $500–600 million to start building its mine. Everybody said, “Wow, that’s a lot of money.” We are living in a capital constrained world, right now. Frankly, the same thing has happened to Ivanplats. It has been a rough year for anyone who is not already producing.

TMR: Do you see that situation turning around during the next few years?

DF: We see an uptake in platinum and palladium prices. Price increases will mostly emanate from supply depletion. There are a number of other catalysts tied to this pricing trend, including some of these companies shutting down production. There is a clear increase in demand and there are very few substitutes for the platinum metals in industrial processes. Coming into the halfway point of this year, palladium was the top performing precious metal. Gold is catching up fast, but the fundamentals are very strong for investing in palladium and platinum ETFs.

TMR: Thanks for joining us today, David.

DF: Take it easy, Peter.

David Franklin joined Sprott Asset Management Inc. in 2008 as a research analyst focusing on equity research within the precious metals and materials sectors. In April 2009, Franklin became the co-author of the monthly “Markets at a Glance” articles with Eric Sprott and subsequently became “Market Strategist” in February 2010. He was named CEO of Sprott Private Wealth in March 2011 and oversaw the business unit of Sprott that provides wealth management services to high-net worth individuals, foundations and trusts. In January 2013, Franklin returned to Sprott Asset Management as market strategist.

Want to read more Metals Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Metals Report <href=”#interviews” target=”_blank”>homepage.

DISCLOSURE:

1) Peter Byrne conducted this interview for The Metals Report and provides services to The Metals Reportas an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of The Metals Report: Prophecy Platinum Corp. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.

3) David Franklin: I or my family own shares of all the companies mentioned in this interview. I personally am or my family is paid by the companies mentioned in this interview. My company has a financial relationship with the companies mentioned in this interview. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.

5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer.

6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

Streetwise – The Gold Report is Copyright © 2013 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.

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Source: Zig Lambo of The Energy Report (9/10/13)

http://www.theenergyreport.com/pub/na/uranium-price-headed-for-50-in-2014-taking-stocks-higher-rob-chang

The stubborn spot price of uranium has frustrated market watchers for the past year. But that’s not the whole story. As most long-term contracts have been made at higher prices, astute investors have been slowly moving into the stocks of uranium producers and explorers in anticipation of the delayed commodity price move expected in 2014. In this interview with The Energy Report, Cantor Fitzgerald Canada Metals and Mining Analyst Rob Chang explains what lies ahead and how the turnaround in the uranium market will benefit the companies he thinks investors should focus on for maximum profits.

The Energy Report: During your last interview in January, you, along with many analysts, were expecting that 2013 was going to be the turnaround year for the uranium market. With the current price hovering around $35 per pound ($35/lb), what’s it going to take to get this market moving?

Rob Chang: The uranium spot price has not moved as quickly as we were forecasting. However, uranium equities have shown some strength over the past year or so, as investors started buying ahead of the uranium spot price moving. Spot prices depend more on utilities and their short-term requirements, which translates into their activity in the spot market. However the spot market accounts for a small portion of the total market. Most transactions occur in the long-term prices, and the long-term contract price is at a healthier level in the $50/lb range. We believe the uranium spot price is currently below the marginal cost of production and therefore unsustainable, as half the producers around the world are losing money.

What’s really going to drive the price higher is utility demand. Most utilities will go back into the market at some point to buy more material. We expect that will happen later this year or early next year. For this year, we’re forecasting roughly flat to slightly higher prices if buying activity does heat up, and a much higher price next year, starting in Q1/14 or Q2/14, depending on how quickly utilities move. We are very bullish and forecasting an average 2014 uranium spot price of $49.50/lb. Investors primarily focus on spot prices, but they really should be looking at the long-term price instead.

TER: On August 21, the Russians made their final shipment of LEU (low enriched uranium) under the Megatons to Megawatts HEU Agreement. This was one of the milestones many were looking for as a positive market catalyst. Is this going to help the market?

RC: This eventuality has been baked in for four or five years now, but the generalist investors who don’t focus on resources may see this as an important milestone and start looking at uranium.

TER: What other market developments have you seen since we last spoke that give you hope for salvaging 2013 as a turnaround year for uranium? Or are we now looking forward to 2014?

RC: 2014 is really when we’ll start seeing some meaningful developments that would move the market, barring an earlier-than-expected announcement from the Japanese government. Since we last chatted, the Japanese government’s Nuclear Regulatory Agency (NRA) has been established and is evaluating applications for 10–12 reactors to be turned on, or at least being approved by this year. We would be surprised to see any this year and at most we think up to three might be turned on this year. We think the majority of the restarts are really going to happen next year. Our forecast is that of the 50 reactors in Japan, about two thirds, will be turned back on at some point over the next two or three years. That’s certainly going to be a positive catalyst.

I don’t see any other major catalysts on the horizon between now and then. The equity markets generally lead the fundamental supply and demand numbers, and we’ve seen some opportunistic investors start to pick away and show some interest in the space. So in the last few months of this year, we do expect the equities to start leading the way prior to the uranium spot price actually moving.

TER: How about the situation in China?

RC: China has the largest nuclear buildup program in progress right now. Russia also has very extensive plans to build more reactors. The United Arab Emirates (UAE) has plans for building nuclear reactors, which sends an important signal to the market. As one of the most oil-rich countries in the world, it could probably power itself with oil, yet is looking to diversify into nuclear. I think that’s a fantastic sign. So we certainly are looking forward to seeing developments.

TER: What do you see going on with specific companies that might create some activity in the stocks?

RC: Starting off at the top with the largest publicly traded company, Cameco Corp. (CCO:TSX; CCJ:NYSE)is putting Cigar Lake into production. Several years ago we were wondering whether Cigar Lake would even start, and now it’s in the early stages of going. Cigar Lake has a major impact on future supply. With the HEU Agreement coming off, one of the new projects that was supposed to make up the difference is Cigar Lake. How well Cameco can ramp up production will be a very key topic for us, but we are still very bullish on the company. We do cover the stock with a Buy recommendation and we use a conservative 14x forward cash flow multiple to arrive at our $26.50 target price. Historically, Cameco has traded at 15x cash flow. Once there is interest returning to the uranium space, we believe Cameco will probably trade at its historical multiple, pricing it closer to the $30 range.

Another investment that we are bullish on is Uranium Participation Corp. (U:TSX), which is more of an investment portfolio that holds physical U3O8 and UF6. This gives investors full exposure to the commodity without any of the possible operational or geopolitical risks associated with miners. So we are very positive on that and do note that it’s currently trading around par to its net asset value. Historically, it has traded at a slight premium, given that investors tend to buy the portfolio in advance of expected increases in the spot price.

Moving to the explorers, outside of Cameco and AREVA (AREVA:EPA), the next impressive land package in the Athabasca is held by Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT). Its high grade Phoenix discovery at its Wheeler River project is arguably the highest grade uranium project in the world, and has every indication of becoming a world class project. On top of that, it also either owns entirely, or has significant pieces of assets surrounding Rio Tinto Plc’s (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK)Roughrider project, for which it acquired Hathor Exploration Ltd. in a battle with Cameco.

If Rio Tinto is going to make a go of it in the Athabasca Basin, it probably needs to expand its footprint there because Roughrider’s 70+ million pounds (7+ Mlb) is not large enough to move the needle for a company of its size. Including the mineralization and resources surrounding Hathor, you’re probably in the 100–130 Mlb range with growth potential. If Rio Tinto is to be aggressive in this space, it would probably have to buy Denison to consolidate its position in the basin. It also has valuable mill access. Cameco is already the juggernaut in the region and could opt to consolidate its land position in the Athabasca and, if it wanted to make a strategic move, push Rio Tinto out. If Roughrider is not large enough to be economic, and if Cameco ties up everything around it, Rio Tinto could decide to pack up and leave.

TER: What about some of the smaller players?

RC: Ur-Energy Inc. (URE:TSX; URG:NYSE.MKT) is a company that just started production. We visited its Lost Creek mine and were very impressed with what we saw. It has a management team from large world-class producers, bringing the best of all worlds into one project. Reaching producer status should provide a valuation bump, especially since it’s a low cost, in situ recovery (ISR) operation in the U.S. Given that the U.S. requires about 50 Mlb of uranium and only produces 5 Mlb domestically, any incremental production in the U.S. should be valued at a premium in light of domestic security-of-supply considerations. Ur Energy is a very attractive company.

Another U.S. producer we’re following is Uranium Energy Corp. (UEC:NYSE.MKT). Although we do not cover it, we do note that it is a low-cost ISR producer in Texas and believe that it should deserve a premium pricing for the same reasons as Ur-Energy.

We also cover Energy Fuels Inc. (EFR:TSX; EFRFF:OTCQX), which is the second largest producer of uranium in the U.S. and probably has the best story leveraged to the uranium price. It currently produces only about 1 Mlb/year, by design, with several mines that can be turned on relatively quickly. We estimate that it could quickly turn on anywhere between 2–5 Mlb more in annual production once prices get to attractive levels. On top of that, it also has the White Mesa mill that it acquired from Denison, located in Blanding, Utah, which is the only conventional mill in the U.S. Having mill access is extremely important because you effectively cannot produce your final product without it. Energy Fuels has a monopoly position with a conventional mill and it can even make money by processing material on a toll basis for other producers. We believe that this is a very attractive company for those who believe that the uranium price will head higher.

Moving further down the chain, we like the 50/50 Fission Uranium Corp. (FCU:TSX.V) and Alpha Minerals Inc. (AMW:TSX.V) joint venture of Patterson Lake South in the southwest corner of the Athabasca Basin. This is probably the most exciting story in the uranium space right now, in terms of news flow and stock price movements. Even though it doesn’t have a resource yet and it’s less than a year old because the initial discovery was in November, the drill results that have been produced to date point to a potentially world-class project. There are currently four zones identified. Based on drilling results and our analysis of the assays to date, our back-of-the-envelope calculation estimates about 50 Mlb at that project already, with significant upside potential. So we’re very excited about seeing the development of this likely world-class project.

Recently, Fission Uranium and Alpha Minerals announced an LOI by which Fission will acquire Alpha for 5.725 shares of Fission for 1 share of Alpha ($7.67 per share of Alpha). We believe this is an excellent outcome for shareholders of both companies as it unlocks the potential for the acquisition of Patterson Lake South by either Cameco or Denison now that the ownership structure has been cleaned up. In addition, shareholders of each company will receive shares in spincos for the respective companies. This will unlock the value of the portfolio of assets Fission and Alpha are currently holding, which the market is assigning zero value to currently.

TER: What else are you looking at and liking?

RC: We like Kivalliq Energy Corp. (KIV:TSX.V), located in Nunavut. It has the highest grade deposit outside the Athabasca Basin and an impressive land package with several highly prospective conductors. We’ve visited the property twice now and have been impressed with the area potential, although Nunavut does present some infrastructure challenges. It will probably need a large resource to be economic; however, we do believe that it does have that potential. The management team has been very cost-effective in identifying resources, which is very impressive. We believe Kivalliq is a very good value play for someone looking a little longer term.

Another notable company is U3O8 Corp. (UWE:TSX; UWEFF:OTCQX), a consolidator of South American uranium assets. It has some interesting developments in Argentina and seems to be getting things in place with the potential for a low-cost, low-grade, open pit operation. Its flagship Berlin project is located in Colombia and has the potential to be of decent size with decent grades as well. Its other asset is in Guyana, giving it three decent assets that all have the potential of being developed, once prices get better. We continue to monitor the progress of U3O8 Corp.

Circling back to Patterson Lake South, one company that catches our attention, although it’s a little too early to say much about it other than we do like where it sits, is NexGen Energy Ltd. (NXE:TSX.V). NexGen sits northeast of the Fission/Alpha Patterson Lake South project, and we believe that it probably has the best prospects for hosting similar, if not the same mineralization, that Fission and Alpha are currently drilling.

Of all the plays in that area, we’re particularly interested in NexGen’s property as well Azincourt Uranium Inc. (AAZ:TSX.V), which is a little to the north of the Patterson Lake South project, as it may host a parallel structure. So both of those seem interesting to us, though a little more speculative.

TER: What strategy do you think investors should be using at this point to try to get maximum return in the uranium space?

RC: The first movers will always be the larger companies, so investments in Cameco, Uranium Participation Corp. and Denison will probably be the most obvious and first to move. Those who are looking for a little more upside torque with a little more volatility would certainly be interested in seeing the Fission/Alpha story given that it has excellent drill results. Those looking for something in between could look to Ur-Energy or Energy Fuels, given that they’re both producers. They have slightly higher costs and should see a meaningful increase in their share prices once uranium prices go higher.

TER: We appreciate your time and thoughts today, Rob.

RC: Thanks again.

Cantor Fitzgerald Canada Metals and Mining Analyst Rob Chang has covered the metals and mining space for over eight years for the sell-side and the buy-side. Prior to Cantor, Chang served on the equity research teams at Versant Partners, Octagon Capital and BMO Capital Markets. His buy-side experience includes managing $3 billion in assets as a director of research/portfolio manager at Middlefield Capital, where his primary resource portfolio outperformed its direct peer and benchmark by over 28% and 18%, respectively. He was also on a five-person multi-strategy hedge fund team, where he specialized in equity and derivative investments. He completed his Master of Business Administration from the University of Toronto’s Rotman School of Management.

Want to read more Energy Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

DISCLOSURE:

1) Zig Lambo conducted this interview for The Energy Report and provides services to The Energy Report as an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of The Energy Report: Energy Fuels Inc. and Fission Uranium Corp. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.

3) Rob Chang: I or my family own shares of the following companies mentioned in this interview: Fission Uranium Corp., Energy Fuels Inc., Denison Mines Corp. and Azincourt Uranium Inc. I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: Energy Fuels Inc. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.

5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer.

6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

Streetwise – The Energy Report is Copyright © 2013 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

101 Second St., Suite 110

Petaluma, CA 94952

Tel.: (707) 981-8204

Fax: (707) 981-8998

Email: [email protected]

Examples from Whole Foods Market and Reynolds American, Inc show you what to do (or not) to trade successfully with Elliott Wave

By Elliott Wave International

After 20 years of experience applying the Elliott Wave Principle, Senior Analyst Jeffrey Kennedy says that it remains the one tool that will tell him — down to the tick, to the pip, even to the penny – when his forecast is no longer viable.

That, according to Kennedy, is one of the two most important keys to successful trading:

“Know where you are wrong.”

In his May 8 Elliott Wave Junctures educational video, Kennedy shows subscribers how to acquire that knowledge when revisiting an earlier forecast that didn’t work out. This lesson was adapted from our EWJ service, and also explores the second of Kennedy’s Keys to Successful Trading:

“Don’t pick tops and bottoms.”

See the logic behind Kennedy’s wisdom by reviewing his analysis of Whole Foods Market, Inc. (WFM) and Reynolds American, Inc. (RAI).

My outlook for Whole Foods Market was right and my outlook for Reynolds American was wrong. While price evidence was compelling for both issues, the forecast in WFM was in the direction of the trend and RAI’s incorporated top picking. Here’s what happened:

On May 1, price evidence called for new highs in Whole Foods Market. We had a clearly defined uptrend, a three wave move in the direction opposite the primary trend, and the move to the downside was contained within parallel lines:

Additionally, we had a double closed-key reversal when the low was made, as well as some bullish divergence on the smaller timeframes. Price evidence was very strong that this market would continue to new all-time highs, so my outlook was bullish.

The bullish outlook in WFM required the April low of $81.39 to hold. The trend was clearly up from 2009 into 2013. From an Elliott Wave perspective we knew that this was a countertrend move with an A-B-C structure (a corrective wave pattern within a larger trending market). We had the wind at our back and were not “picking a top.” We simply looked at the price evidence in support of a further rally.

Conversely, the following example in Reynolds America, Inc. did not work out.

On March 22, I anticipated a move to the downside in Reynolds American, Inc. as we had a five-wave decline and a subsequent advance that was a three-wave move. I was looking for a tradable selloff to the downside in wave (C) or wave (3):

Unlike the successful WFA example, I was not trading with the trend. Instead, I was looking for a “top.”

Yet I was able to prevent a losing trade from becoming a devastating trade because I could use the Elliott Wave Principle to “know where I was wrong.”

This bearish wave pattern was viable only as long as prices held below the February high of $45.17.

Once prices exceeded this critical resistance, I knew not to look to the downside – that my outlook was no longer viable:

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By www.CentralBankNews.info     Mozambique’s central bank kept its benchmark standing facility rate (FPC) steady at 8.75 percent, saying inflation was stabilizing around the bank’s objectives for this year and next.
    The Bank of Mozambique (CPMO), which has cut rates in June and August by a total of 75 basis points, also said the new business confidence index had slowed down due to a deterioration in the prospects for demand and employment.
     Most business sectors showed a deterioration, while the construction sector was stable and transport and communications are expected to improve, the central bank said.
     In August Mozambique’s inflation rate eased to 4.34 percent, down from 4.58 percent in July and the third month of declining inflation after a 2013 high of 4.9 percent in May as extensive flooding at the beginning of the year pushed up food prices and then inflation.
    The central bank’s policy committee also decided to intervene in interbank markets to ensure the monetary base does not exceed 43.817 billion meticais by the end of September, unchanged from the bank’s August target.

     The central bank’s net international reserves rose by US$ 407 during August to $2.825 billion, with gross international reserves enough to cover 6.5 months of imports. End-August, the Mozambique metical was quoted at 29.85 to the U.S. dollar, a 4.04 percent depreciation year-on-year.
    “The stability of the nominal metical, in a context of low inflation, has allowed for a maintenance of the external competitiveness of the economy and this has been signaled by the real effective exchange rate,” the central bank said.

    www.CentralBankNews.info

By www.CentralBankNews.info  (Following article is written by Michael Lombardi of Profit Confidential for Central Bank News, which occasionally will carry articles by guest contributors if they are of interest to our readers.)

    By Michael Lombardi, for Profit Confidential

    And the buying continues. In the second quarter of this year, central banks bought more gold. They purchased 71 tonnes of the yellow metal. (Source: World Gold Council, August 15, 2013.)
    Why are these banks running towards gold bullion? It’s because they are getting out of U.S. dollars as their reserve currency. The chart below tells that story.

   This chart is something gold bears refuse to acknowledge. It shows the percentage change from a year ago in U.S. dollar reserves at central banks around the world. You can see how, since 2007, the U.S. dollar has become less of a reserve currency for these banks.

 

    Michael’s Personal Notes:
    The U.S. national debt has increased significantly over the last few years, especially after the credit crisis struck the U.S. economy.
   To stop the economy from totally collapsing, the U.S. government incurred several trillion-dollar budget deficits in a row as it spent to revive the economy. As yearly budget deficits piled on, the U.S. national debt rose. Today, the U.S. economy has the biggest debt in monetary terms than any other country in the global economy. In fact, if you add together the national debt of Greece, Spain, Portugal, and Japan, collectively, their debts are less than the national debt of the U.S. economy.
    What happens next?

    At present, the U.S. government is making payments on its old debt by simply borrowing more debt. Hands down, this is the biggest Ponzi scheme in play. But as I have written before in these pages, our national debt-to-gross domestic product (GDP) is only 105%. In Japan, the national debt-to-GDP is 205%. Hence, if we follow Japan’s example, our debt could double from here.
    The U.S. government should hit its debt limit in October. And Congress will increase that debt limit as it always does.
     Eventually, the only way to reduce the national debt, especially if interest rates rise, is to raise taxes.    
   But it is a double-edged sword. Raise taxes and you stifle the U.S. economy, as higher taxes negatively affect consumer spending. Don’t raise taxes and you still have a problem with a mounting national debt.
    Will the U.S. come out with some law that if a group of citizens or a corporation has a certain amount of cash, they will get a special tax assessment on capital? This action makes more sense than an across-the-board tax increase.
    It happened in Cyprus. Now we hear something similar is being done in Poland. To help its national debt situation, the Polish government has decided on reforms that move bond assets from private to state funds. Private pension funds are saying the move is unconstitutional. Crazy, but true; this is what is happening in Poland. (Source: Reuters, September 4, 2013.)
    In the case of the U.S., I don’t think we have to worry about special tax assessments right now. They will be a thing of the future, not today. If we follow Japan’s route—and it looks like we are—we can add another $15.0 trillion in debt before the government gets desperate (save and except sharply higher interest rates or a total collapse in the value of the U.S. dollar).

    What He Said:
    “I’ve been writing to my readers for the past two years claiming the decline in the U.S. property market would not be the soft landing most analysts were expecting, but rather a hard landing. My view remains unchanged. The U.S. housing bust will be cut deeper and harder than most can realize today.” Michael Lombardi in Profit Confidential, June 13, 2007. While the popular media was predicting a bottoming of the real estate market in 2007, Michael was preparing his readers for worse times ahead.

By www.CentralBankNews.info Here’s today’s Central Bank News’ link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don’t miss any important news.

The EURUSD – Сorrection or Uptrend Resumption?

The bulls on the EURUSD showed a complete lack of respect to the resistance around the 1.3176 level, breaking it, and lifted the pair to 1.3280, where the 100-day moving average is traversing. Thus, the pair is trying to be consolidated above the resistance around 1.3263, and if it succeeds, then we will get the final confirmation of the upward trend resumption with the return of the euro to the 34th figure. This scenario seems quite possible, but it should not be excluded the fact that now there is a correction after falling to 1.3104. In this case, the bears will try to regain control over the situation at the current levels. They will try to break through the support at 1.3176 again and in case of success they will also test the 31th figure.

The GBPUSD Approaching to 1.5766

Yesterday the GBPUSD broke through the resistance at 1.5656, then at 1.5713 and tested the marking of 1.5732. Here the bulls` enthusiasm disappeared and the pair retraced to the 1.5685 level which is serving as a support. The situation is still favorable for the bulls, but getting closer to the resistance 1.5766, the pair has to overcome the bears` offers, which can prevent them from going up. However, if the level has been broken, the upward momentum will be increased, and the pound will rise towards 1.6000. A drop below 1.5422 would cause tachycardia in the bears on the pair. Do not forget about the EURGBP , which is trying to recover from the support at 0.8400.

The USDCHF Fails to Develop Upward Momentum

The USDCHF failed to be consolidated above the support at the 0.9345 level and return to its current highs. Instead, the pair dropped below a specified level and tested support around the 93rd figure. Just below the 100-day moving average is traversing, so this support can be considered as a key to recover the dollar. If it survives, then the pair will try to get back to the highs, if not – a fall to 0.9220 should be expected. In general, the failure to hold above 0.9345 cause skeptical attitude towards the growth of the dollar.

The USDJPY Coming Back to the 100th

Yesterday the USDJPY gradually retreated from the day´s highs of 100.10 until it found the support around the 99.34 level, where it stayed the rest of the time. Today the bulls have gone on the offensive again. The pair`s currency rate has approached the 100th figure. Their persistence may lead to the level breakout and then increase to at least 100.68. And the bears still need to break through the support at 99.00 to help the yen get another chance to develop correction.

provided by IAFT

London Gold Market Report
from Adrian Ash
BullionVault
Tues 10 Sept 08:50 EST

BENCHMARK London prices for physical gold fell to $1363 lunchtime Tuesday, down 2.3% from Monday’s high as the Assad regime in Syria accepted a Russian-backed plan to give its chemical weapons to international control.

The Rupee meantime rose to a 2-session high after new Indian trade data showed gold imports falling and exports rising in August.

Premiums in Asian markets, over and above London’s benchmark gold price, eased further from the early summer’s record levels.

Gold futures volume on the US Comex was only half its recent average on Monday, according to Reuters data.

Sterling’s continued strength above $1.57 took the gold price for UK investors to its lowest level since Aug.22 beneath £870 per ounce.

With the Dollar gold price also nearing 3-week lows, “New headlines about Syria remain the focus,” says one dealing desk in a note.

“The decline in the oil price is adding additional short-term resistance to gold,” adds Standard Bank’s commodity team.

Russian foreign minister Sergei Lavrov yesterday used an off-the-cuff remark by US secretary of state John Kerry to begin talks over UN inspectors taking control of the Assad regime’s chemical arsenal.

Today France drafted a resolution for the United Nations security council, warning Syria of “serious consequences” if it then fails to comply.

European stock markets rose sharply Tuesday morning, while crude oil and major government bonds fell.

Silver extended Monday’s drop to stand at $23.15 per ounce, 3.1% below last week’s finish.

New data from China showed a jump in retail sales, industrial output and urban investment last month.

“We see the latest price action as a correction of the uptrend which began on June 28th,” said a technical note on gold from Scotia Mocatta after Monday’s $10 drop.

“Support is at 1352, which is the low from August 20th…Resistance is at the recent high at 1433.”

Looking ahead to next week’s US Federal Reserve announcement, “Tapering to the tune of $10bn-15bn has in our view been priced in,” says a note from Bank of America-Merrill Lynch analysts.

“But if the Fed is more dovish than that, [meaning it] tapers by less or delays tapering entirely, gold prices could rally in the short term.”

“Short covering,” says analysis from Japanese trading house Mitsui, “was a major factor in the rebound of [both silver and gold] and this may now be running out of momentum.”

Noting a slowdown in sales of gold from exchange-traded trust funds, “There are still optimists out there who see value in gold and silver,” says Mitsui analyst David Jollie.

“We are not expecting a short-term return to the heavy selling seen in the first part of the year.”

New York’s giant SPDR Gold Trust – the world’s largest exchange traded gold fund – shed 2 tonnes of bullion on Monday, but held 8 tonnes above the four-and-a-half year lows of last month.

“In the event of the Fed tapering its programme of QE,” says a note from London market maker Deutsche Bank, “we expect gold returns are vulnerable to higher US real yields and a stronger US Dollar.

“Given our outlook of a further rebound in global growth we view silver and PGMs as the likely out-performers.

Adrian Ash

BullionVault

Gold price chart, no delay | Buy gold online

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich or Singapore for just 0.5% commission.

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

By www.CentralBankNews.info     Serbia’s central bank held its key policy rate steady at 11.0 percent for the second month in a row, saying that the decision to maintain rates “was swayed by risk risks arising from the international environment” as inflationary pressures continue to subside.
    The National Bank of Serbia (NBS), which last cut its rate in June, confirmed that inflation is expected to return to the bank’s target range by October and remain within the band thereafter. This expectation includes the impact of higher administered prices the rest of the year.
    Serbia’s inflation rate eased to 8.6 percent in July from 9.8 percent in June, continuing a declining trend since October last year when when inflation hit 12.9 percent. In response to rising inflation in the second half of 2012, the NBS started raising rates but started cutting in May as inflation started to fall.
    In recent months, the central bank has said it expects inflation to return to its target range of 4.5 percent, plus/minus 1.5 percentage points in October.
    “The NBS executive board concluded that inflationary pressures have continued to subside on account of not only past monetary policy measures, but also largely due to reduced costs in food production as this year’s agricultural season is much more favourable both globally and at home,” the central bank said.

    Like many other emerging markets, Serbia has experienced an outflow of capital and currency depreciation since May and the central bank intervened several times in June to slow the decline.
    Since mid-June the Serbian dinar has continued to ease but the pace has been much more controlled. Since the beginning of the year, the dinar is down 2.7 percent against the euro, trading at 115.41 today.
    As last month, the central bank said the negative effects from international environment could largely be offset by consistent implementation of fiscal consolidation and structural reform by the government.
    “This would positively affect Serbia’s investor perception and contribute to the narrowing of internal and external imbalances, lower inflation and sustainable economic growth,” the bank said.
    Serbia’s economy continued to slowly improve in the second quarter of this year, with Gross Domestic Product rising 0.7 percent year-on-year, down from 2.1 percent annual growth in the first quarter, but still much better than the contraction throughout 2012.
    The central bank said its assessment of the recovery was still positive, but gave no further details.
    Last month the central bank said in its quarterly report that it would consider lowering its benchmark interest rates if external risks ease and the government cuts spending.
    The central bank expects growth this year of 2.0 percent, but cut its 2014 growth forecast to 2.5 percent from an earlier forecast of 3.0 percent.
   
     www.CentralBankNews.info