Last week was a storm on my desk; a flurry of papers demanding my attention, with no lapses in between.
This week is off to a similar start. But, I cannot leave my post unmanned for so long. Ergo, I have stolen a few minutes today to communicate with each of you.
The market is “correcting”, if that’s what you can call this. Weakness after the QE3-leak ramp is hardly something to fear. The Fed is sending another $600 billion directly into the market’s arm – they have simply gotten clever about how they phrase it. Chill.
BAS has had a rough few weeks. After two failed breakouts, it collapsed below my initiation. Yet, the company is still a buy, I feel. The cause of weakness is well known and anything less than the worst outcome will result in extreme “cheapness” being apparent; leading to gains.
This winter will be rough on natural gas – thus BAS may continue to falter. But BAS is a servicer, not a well owner. They have great cash and are best positioned to benefit from a continued natural gas expansion. This is a long term trend and it will continue to reveal itself, in time.
Multifamily and nuclear energy are getting hit by smear pieces, from all angles.
Multifamily is being accused of “weakness” as renting demand “diminishes.” Mind you, that this rental weakness seems to have left occupancies totally unharmed, at 95%+. But we shall see at the next string of earnings reports.
A stream of slanderous articles proclaiming nuclear “too hyped” have come out in the usual venues, and just before one of the major supplies of second source uranium is being set to be taken off the market, no less. Hmmm…
I can appreciate the point of the articles, which is to say “hey, reactor recovery from the ‘Fukushima jitters’ will not be V-shaped”. Fine; but it’s not like nuclear stocks have been just gallivanting higher. The equities themselves have been abhorrent – and now is the time to buy. You cannot look at the price of uranium by itself; the market is too thinly traded. You have to look at Cameco, cornering the fucking market, expanding their production by leaps and bounds, to see the whole picture.
Alright, I am needed. Have a good day.