As a quick aside, don’t think that because the market is getting lit up system wide that all stocks are a bad buy. Even if you get in a little too early, there are plenty of operations right now that you should consider getting into, in small incremental steps to help get a good average pricing.
For instance: despite it being all the way back at the beginning of the year, I think my call on utilities is still valid. Plenty of these names are yielding 3-4%, and have very stable operations with extremely good cash levels. They are also non-negotiable services which will be the first to receive payment and the last to be stiffed.
AWK is still a good buy here, with a 3% dividend and diligent management of its assets. They’ve got $13 million in cash on the books plus over $100 million in client accounts receivables coming due. And they have been aiming to keep the dividend payout below net revenue per share. Pretty secure; I’m much more comfortable in my water utility company than MF Global is in its Italian 10 year bonds, you can bet on that.
There’re plenty of opportunities left in the utility sector, just waiting to be ferreted out by a determined individual. Take a look and let me know what you find.
Also, even though the uranium sector has yet to stage a rebound, and my unrealized losses are deep and painful looking, I’m absolutely optimistic about the space and specifically CCJ.
The numbers just don’t add up, and they still point to uranium fuel shortages. CCJ is the biggest and best situated to whether a prolonged winter in the uranium market, and when spring time comes again for the energy industry, CCJ will pop to $30 in a matter of days.
Plus, the uranium miners are heating up; CCJ has a friendly takeover offer in effect for a smaller miner. I’d guess some similar moves are coming soon to gobble up the smaller competition. If things get going you could see the hot money flood the market, global crisis not-withstanding.
It’s never too early to think about the next big things. I think we should trade lower and the dollar is definitely undervalued here, but over the years you’re nuts if you think I’m a dollar hoarder or eternal pessimist. I know I’ve sounded like that a lot lately, because there’s a lot in the immediate time frame to worry about.
But it’s also never too early to start edging into that next big trade. Don’t sacrifice tomorrow’s gains for today’s concerns. Just keep it small and manageable.
If you enjoy the content at iBankCoin, please follow us on Twitter
is DNN any good ???
DNN looks real ugly and they only seem to file with the SEC once a year. I don’t have great info on them.
However, as of December of 2010, they had almost $100 million in cash. So maybe they wait out the storm and $1.40 is a good price for them. But definitely don’t buy a lot up front, because they will get smacked around a ton between now and then.
I like CCJ a hell of a lot more than I like DNN.
uuu.to?
(laughter) you guys are finding the things I would expect to get bought out, not the survivors. It could go well, but only if they secure a bid or have enough cash to survive long enough to see the finish line.
I would not buy uuu.to except as a very small, hail mary allocation.
The whole sector is dying, there’s a lot bigger, better managed companies to buy into than running around gobbling up $1 stocks.
ccj was at around 55 in ’07… thats about a 250% increase. dnn and uuu have seen much higher increases, it’s just a risk/retard tolerance
TAC is at a good discount right now.
As much as I am pissed at the amount of money I left on the table on Friday, I still think the whole idea that we could be dragged into some financial meltdown and sink into recession due to Greece would be an absolute tragedy of human incompetence. China slowing I can deal with, but Greece?!?
What does intrigue me to no end is the idea of certain sectors getting absolutely decimated in the process and very well run companies, or whole sectors that will not just disappear, trading below their 2009 levels.
As much as I’m sure it would pain you to see, I say a little prayer each night to buy companies like CCJ below their 2009 lows.
I don’t know how much it would pain me; I have a high tolerance.
I’m not leaving CCJ unless something drastic changes. I would start selling off other positions just to free up funding to add to CCJ is their stock took another big leg lower.
To quote the late Fred Gwynn, somewhat paraphrasically:
Dese “Utes” are OVAH-valued, Mistah Thalah!
____________
I am heavily weighted to utilities but…before you bet the farm on the utes http://utesinthepaddock.com.au/
The underlying assets of a utilities can be a great hedge against inflation but one needs to consider the gearing and interest rate exposure, the maturity of the debt and the ability to roll over the debt at the current interest rates, the degree of government regulation and the potential for management to change the fundamentals. Then the issue of timing comes into play. The stock I purchased in a buoyant market was three times the unit price of the ones purchased in the depth of the last crash. So you should have enough cash available to average your cost down.