# The next stock group to boom?



## nioka (3 May 2008)

After a particular stock has had it's boom period the chance for the best gains are over. Often buying a booming stock will lead to a capital loss. Take iron ore stocks, It is almost too late to get the best result. BRM was agreat buy 1 year ago but is it great now. Same goes for Coal seam gas. The benefits were there when AOE was 70c, even a few weeks ago I bought at $1.70. Originally buying in the 70c, sold out at $2.77 and bought back at $1.70. They are the flavour of the month at the moment and should rise further but the best returns are for those that got in early.

 I bought LYC at 37c. Sold out for $1.30. Once again got in early.
 I bought SMY from 32c to 72c , AGM from 33c to 75c. Again got in early.

 Then there were others I got into too early, got impatient, sold out and missed out, ORG is a good example, YMLO another as I sold them not wanting to take a risk as they were running out of time.

 I'm not talking spec stocks here such as some I'm in, like ADI, AUT, MHL, NSL,IRL,MOG,NWR,PRE,TEY. These are specs that may advance to investment stocks or just be traded. 

 I mean groups of stocks with proven potential but not yey getting recognition. Is it going to be alternative energy with stocks like EDE , a new mineral group mineral group with stocks like MGO or MOL ( molybdenum), or innovative stocks like ACE ( Natural gas engines), VCR ?(medical) etc.

 I like ACE as an investment at this stage. It has been a bit slow and testing my patience but now that natural gas is getting a move on then it follows that anything that helps use the gas should follow. ACE is making sales now from it's proven technology. 

 Will property stocks return?. Is it agricultural stocks?, with a world wide shortage of food it should be but then which section. In my experience a shortage of a food crop quickly leads to overproduction and price falls.

 Any ideas?


----------



## blablabla (3 May 2008)

*Re: The next stock group to boom*



nioka said:


> I mean groups of stocks with proven potential but not yet getting recognition. Is it going to be alternative energy with stocks like EDE, a new mineral group mineral group with stocks like MGO or MOL ( molybdenum), or innovative stocks like ACE ( Natural gas engines), VCR ?(medical) etc.




I agree that molybdenum has got under the radar so it seems as good a bet as any. An interesting molybdenum stock is QOL (Queensland Ores Ltd) which is just about to commence production of tungsten and molybdenum, both of which are experiencing good prices. Currently QOL is in a trading halt pending an announcement about funding.


----------



## farout (3 May 2008)

I've stated it many times already, however I believe any stock related to UCG (Underground Coal Gasification) will continue to be amongst the hot stocks in the coming months. Producing very cheap energy from south-east QLD's vast coal reserves is a no brainer.

LNC Energy has already had a major spike, I believe the lesser known MEE and CXY still offer great upside.


----------



## Markcoinoz (3 May 2008)

Hi farout,

Agree with what your saying.

I would add SXP to your list.

Cheers markcoinoz


----------



## Timmy (3 May 2008)

Hi All - good thread, I find it very enlightening learning about these various industries ... I take a technical analysis approach to what I do only, so to hear of the industry characteristics is great ...

Anyway - a question (and showing my tech analysis bias here), the task of picking the next boom industry and /or stocks - does anyone employ a relative performance approach - how an index or stock may be performing relative to the the AOrds or to other industries?  Some good examples of this in the WSA thread (I don't hold it and have no intention of trading it so not a ramp!)


----------



## agro (3 May 2008)

iron ore and coal stocks have a long time to run so i think its worth holding them for the time being,, not until china or india have an abundance or supply

U308 could b the next boom if it were allowed as an energy source in australia


----------



## JTLP (3 May 2008)

Hi Nioka!

A very interesting thread indeed. Do you believe the best gains are over for Iron Ore? Nobody has a crystal ball! Maybe Irag ceases war tomorrow and goes on a building/spending spree...back in motion :

An indicator I like to use to see if a sector is beginning to move is to look at the major players within the industry. If they are starting to rise then there is a nice chance that a smaller co. with exploration due, production/development nearing or resource expansion will experience the same rises.

I honestly haven't done this analysis in awhile as I'm planning my trip around the world and don't have time to research/money to put into companies .
(I wish I had though as because my watchlist for Coal and things related to it looks mighty healthy! )

JTLP


----------



## michael_selway (3 May 2008)

farout said:


> I've stated it many times already, however I believe any stock related to UCG (Underground Coal Gasification) will continue to be amongst the hot stocks in the coming months. Producing very cheap energy from south-east QLD's vast coal reserves is a no brainer.
> 
> LNC Energy has already had a major spike, I believe the lesser known MEE and CXY still offer great upside.




Hi do you know any other stocks in coal seam gas industry besides the below:

*LNC, AOE, SXP, MEE, CXY, ORG (coal seem gas)*

thx

MS


----------



## farout (3 May 2008)

I think you've pretty much listed them Michael. I certainly don't know of any newly listed UCG companies. Even if a newly listed UCG company was to emerge it would take them many years to match the development stage of the current pioneering UCG (soon to be) producers.


----------



## grace (3 May 2008)

michael_selway said:


> Hi do you know any other stocks in coal seam gas industry besides the below:
> 
> *LNC, AOE, SXP, MEE, CXY, ORG (coal seem gas)*
> 
> ...




PES, ESG, SHG, MPO, MEL, BUL 

I hold 
QGC, AOE, SXP, PES, ESG and LNC (gas to liquids).
Cheers Grace


----------



## TheAbyss (3 May 2008)

To say the CSG run is over is premature to say the least IMO. There is a long way to go yet.

The sector is still settling in and is currently undergoing some consolidation which is far from over. Once the consolidation period settles down we will then see a run of IPO's as companies decide to take a run at CSM.

This has a long way to go. Some of today's press articles paint the picture better than i.

There are already a lot of players however so where do you start?

The Gladstone LNG plant is getting a lot of focus at the moment with 4 players announcing their intentions. Once that is whittled down watch the winners start to target resources to ensure they can ensure sufficient feedstock.

This Qld CSM fields are huge. Take a read of this article for some insight. http://www.theaustralian.news.com.au/story/0,25197,23636640-5005200,00.html

The Qld CSM sector is going to continue running for quite a while yet, AOE, QGC, SHG and Santos are the higher profile players however there are others. Why did QGC buy 19% of VPE? Because of their CSM holdings in Qld and SA, What about PES? Largest land holding and yet to prove their resource.

What about, bul, enb, ggx, kar, sgl, mel, pgs?

Wait for the next tranche after these guys. What about the people who build the pipelines and facilities? What about infrastructure etc? There are a swag of eventualities that are yet to happen. The CSM sector is producing a small fraction of what they are going to be in the next 3-4 years. That would be why BG are here and buying up big. You don't spend billions without expecting to make even more.

Fancy CSM helping BNB  out of trouble? Read this. http://www.theaustralian.news.com.au/story/0,25197,23636641-5005200,00.html

 Watch this space.


----------



## AnDy62 (3 May 2008)

Molybdenum IMO - shortfalls expected soon and the demand is only going to increase I believe. Also retirement sector will come into the light more I think though I'm not sure it will "boom" but rather increase steadily.


----------



## trillionaire#1 (4 May 2008)

Once coal and iron ore have their time, will uranium stocks regain lost favour?
Many new nuclear power plants are planned I believe.

If you believe as another thread suggests, a new ice age beckons perhaps heating oil will be popular!


----------



## anindya_becit (4 May 2008)

It's a nice thread. just wondering if some1 wants to invest in Uranium shares, what are the possible options for that? Also is it a good idea to invest in Uranium shares at present?I am new to stock trading ... so just exploring different opportunities.


----------



## nioka (4 May 2008)

anindya_becit said:


> It's a nice thread. just wondering if some1 wants to invest in Uranium shares, what are the possible options for that? Also is it a good idea to invest in Uranium shares at present?I am new to stock trading ... so just exploring different opportunities.




 I can't make up my mind about uranium stocks. They had a boom a little while ago where any prospecting company even sniffing at uranium had fast rising SPs until the realisation that, even if uranium was found, they may not get permission to mine it.  

 Is it a good idea to invest in uranium stocks? the answer is probably yes in those with mining currently allowed but speculative in the rest. That is my opinion but then I'm often wrong.


----------



## anindya_becit (4 May 2008)

So which are the companies at the moment mining uranium and to be considered? 

Waiting for feedbacks from other investors too ...


----------



## agro (4 May 2008)

anindya_becit said:


> So which are the companies at the moment mining uranium and to be considered?
> 
> Waiting for feedbacks from other investors too ...




personally, i would be looking at junior miners if you are thinking of investing. again iron ore and coal - i cant emphasize this enough 

as far as uranium companies (i hold none) but in the past have had: PDN, DYL, BMN


----------



## anindya_becit (4 May 2008)

Ok thanks for that ... I am too watching PDN ... lemme see ...

BTW what are the hot ironore/coal stocks right now favoured by the investors?

Thanks


----------



## farout (4 May 2008)

Anindya, listen to Agro and check out my post up higher at #3. All the best!


----------



## nioka (4 May 2008)

anindya_becit said:


> So which are the companies at the moment mining uranium and to be considered?
> 
> Waiting for feedbacks from other investors too ...




 BHP ( olympic dam) and ERA (ranger) are the two biggest. Their SPs reflect the value and could be said to have allready boomed. There is a third one producing, Beverly I think it is called and I don't think it is listed on the ASX. There is another which has been approved but not producing yet as far as I know. Can't remember it's name.


----------



## Tukker (4 May 2008)

Ill throw something at this thread. I think mineral sands are next. After all the iron and steel has built the frames of developing china and india then comes the paint and tiles


----------



## Logique (4 May 2008)

Noone has mentioned the geothermal energy companies, 
TEY, which is my favourite, but also GDY and PTR, which are building away in the background, and should eventually be in a position to supply abundant, greenhouse friendly energy, and in huge almost limitless, supply.


----------



## nioka (4 May 2008)

Tukker said:


> Ill throw something at this thread. I think mineral sands are next. After all the iron and steel has built the frames of developing china and india then comes the paint and tiles




 I held BMX for almost 2 years waiting for that to happen. I agree that it should but when it will happen is the question. Will it be next?. When TTY started buying into mineral sands their SP dropped when it should have been rising because of it's iron ore produntion.


----------



## trillionaire#1 (4 May 2008)

rare earth miners look promising , im holding greenland minerals and energy stock.sp has risen 37% in last 2 weeks and now in a trading halt.

they have a licence to mine rare earth oxides in greenland but not yet a uranium mining go ahead ,however according to greenland officialdom,subject to application and approval uranium maybe extracted as a by-product of normal mining activities.

im also still keen on coal,chart a few of them and see how they impress.
china needs coal and of course there are many chinese!


----------



## mrgroundwork (4 May 2008)

i think it's reasonably easy to make modest gains in booming sectors well after the trend has established (ie iron ore & gas), but the key is not to get too greedy and lock in some profits before the herd moves elsewhere... if anyone was investing in the dot-com or uranium madness they will know this... 

i like this thread though... the only way investors will make REAL money is to be on something well before the boom starts... 

here are a couple of my thoughts:

Tin - used in all electronics so demand is constantly growing, supplies dwindling rapidly with mines benig shutdown everywhere, price is getting out of control... given the price rise and potential for it to rise further, the SP of most Tin companies hasnt improved as much as i would have thought... the market should wake up soon

Consolidation in heavily segmented household services - well ABC learning did it in childcare reaping impressive returns for investors who got in early and got out before eddy went mental... i think you will see similar business models employed in other sectors with success... Invocare in funeral services will continue to make a killing (pun)... The veterinary sector is another one that will see some major consolidation... Greencross is implementing this now with a great deal of success...


----------



## Go Nuke (9 May 2008)

> BHP ( olympic dam) and ERA (ranger) are the two biggest. Their SPs reflect the value and could be said to have allready boomed. There is a third one producing, Beverly I think it is called and I don't think it is listed on the ASX. There is another which has been approved but not producing yet as far as I know. Can't remember it's name.




The Beverly Uranium mine is owned and operated by Heathgate. They are also tied in with Alliance Resources through Quasar (an affiliate of Heathgate Resources).
Alliances JV partner Quasar just announced last week that that would be skipping the leach testing and applying straight for a mining lease of the Four Mile U prospects.

I hold both AGS and BMN, as well as ROY ( for iron ore and their U.S Uranium), PDN (though suffering badly since I came across with the Summit takeover) and even HLX has a sniff of uranium in their portfolio.
So i'm pretty bullish on uranium.
*BUT* given hindsight and my lack of experience, as its been stated on this thread, there are boom runs of resources and I should have locked in some profits before the butt fell out of uranium ...for the time being.



> Ill throw something at this thread. I think mineral sands are next. After all the iron and steel has built the frames of developing china and india then comes the paint and tiles




I recently also bought in to DRX which is focusing on mineral sands.
They are looking at tiles etc for the chinese and actually might have broken out after today.
I dont think it will run like gold,coal and ore though.

My pick is _Bio fuels_. We are all looking to take more care of the environment these days so perhaps a company like *NFL*will take off 1 day. {I dont hold any btw}


----------



## TheAbyss (13 May 2008)

Well the next boom isnt going to be potash if you can believe the press.

Interesting article which if nothing else evokes a sense of caution regarding buying into the more speculative plays.

Article also supports some of th eposters here who suggest the more exotic minerals such as molybdenum, tungsten, tantalum and niobium metals. Anyione heard of niobium?

Great thread and on the right track.

http://www.theaustralian.news.com.au/story/0,25197,23680699-5005200,00.html


----------



## DavidB1 (13 May 2008)

Deep Yellow Limited (DYL) is up about 30% this week 

i saw a order for 1,000,000  (DYL) in the market today


----------



## Pommiegranite (13 May 2008)

I'm not sure about the next boom.

However, I am convinced about an area which will boom in the next couple of years, as it way overdue - Intelligent Fastening (TZL) .


----------



## Schmuckie (19 May 2008)

TheAbyss said:


> Article also supports some of th eposters here who suggest the more exotic minerals such as molybdenum, tungsten, tantalum and niobium metals. Anyione heard of niobium?





Have a look at the Tantalum-Niobium International Study Centre's website:  http://www.tanb.org for more information.  The basics are there, and the membership list might prove useful.


----------



## Broadside (19 May 2008)

TheAbyss said:


> Well the next boom isnt going to be potash if you can believe the press.
> 
> Interesting article which if nothing else evokes a sense of caution regarding buying into the more speculative plays.
> 
> ...




I actually think the quality (read early to production) potash and phosphate plays will do very nicely over the next couple of years.  It's like iron ore, the resource is there in abundance but grade and proximity to infrastructure is the key.  BHP also seems to think potash has a way to run, given their Canadian acquisition last week...maybe Kloppers didn't read the article in the Australian? :

I hold MAK and RWD.

But most of my money is tied up in iron ore.


----------



## TheAbyss (19 May 2008)

The POO brigade look to have some legs however i am happy to be holding Iron Ore plays and speculating in the Coal Seam plays in QLD.

Would be nice to get into the next big thing early though. The Coal to liquid plays look interesting. Watching LNC (G2L and UCG - converting coal to fuel) with interest.

I have attached some additional press below re the Potash/ Phosphate question. Stick with the near to production plays as you have quite rightly indicated Broadside IMO. May not be a very big window of opportunity for the longer term prospects howver you never know what is aroiund the corner.

"Saudi Arabia's Maadan Phosphate Co will bring its new fertiliser plant into production in just over two years' time. It will use local phosphate and cheap natural gas. 

This first phase will add 2.9 million tonnes a year to the supply of diammonium phosphate (DAP) and will, by itself, tip the DAP global market into surplus, according to Barrie Bain, of the British-based fertiliser consultancy Fertecon. 

The second phase will bring production up to 6million tonnes a year, equivalent to half the DAP produced around the world in 2006, according to Middle East Business Intelligence. 

Morocco will remain the world's largest exporter of phosphate overall and another fertiliser, monoammonium phosphate. And last week the Moroccans signed a deal with PetroVietnam Fertiliser to build a new DAP plant in the North African country to supply Vietnam and surrounding countries with fertiliser from 2011. 

One of Europe's largest producers of phosphate-based chemicals, Nilefos Minerals, is reported to be investing $US535 million to develop a 230 million tonne phosphate deposit in Uganda."


----------



## Datsun Disguise (19 May 2008)

[/QUOTE]My pick is _Bio fuels_. We are all looking to take more care of the environment these days so perhaps a company like *NFL*will take off 1 day. {I dont hold any btw}[/QUOTE]

I'd hold steady on biofuels - the thing about growing crops to turn into fuel is that it takes a HUGE amount of crops to make a tiny amount of fuel. I'm dead against bio fuels for the following reason.

Growing crops for fuel pushes up the price of food, meaning more people starve so I can drive down to KFC. Sorry, doesn't sit well with me. While it is one of those expressions that rolls off the tongue easily (like 'clean coal' and 'carbon sequestration') when paying lip service to environmental ideals, the reality of it it is untenable and I think irresponsible.

Next boom? not biofuels - try horse breeding or stage coach building.


----------



## Go Nuke (19 May 2008)

My pick is _Bio fuels_. We are all looking to take more care of the environment these days so perhaps a company like *NFL*will take off 1 day. {I dont hold any btw}[/QUOTE]

I'd hold steady on biofuels - the thing about growing crops to turn into fuel is that it takes a HUGE amount of crops to make a tiny amount of fuel. I'm dead against bio fuels for the following reason.

Growing crops for fuel pushes up the price of food, meaning more people starve so I can drive down to KFC. Sorry, doesn't sit well with me. While it is one of those expressions that rolls off the tongue easily (like 'clean coal' and 'carbon sequestration') when paying lip service to environmental ideals, the reality of it it is untenable and I think irresponsible.

Next boom? not biofuels - try horse breeding or stage coach building. [/QUOTE]

Well as I said, i dont hold any Bio fuel stocks anyway. Though personaly I dont think the wealthy people in the world out there really care too much about people starving. they are just out to make their next buck.

Perhaps it wont be bio fuels. there are still plenty of alternatives coming online in the near future.....Electric cars, hydrogen oneday maybe? Hell maybe even nuclear powered cars (though im bias in saying that because I hold uranium stocks  hehe)

Bio fuel was just my suggestion.


> Have a look at the Tantalum-Niobium International Study Centre's website: http://www.tanb.org for more information. The basics are there, and the membership list might prove useful.




Hey this was quite interesting. Thanks for posting the link.
I dont think Niobium will be the next boom if you read this part..



> The world's largest deposit is located in AraxÃ¡, Brazil and is owned by Companhia Brasileira de Metalurgia e MineraÃ§Ã£o (CBMM). The reserves are enough to supply current world demand for about 500 years, about 460 million tons.


----------



## farout (19 May 2008)

Current market sentiment is great - I hope a few people here bought into the two UCG stocks I mentioned on the 3rd of May...

Just in the last 2 weeks;

MEE has risen approx 88%
CXY has risen approx 63%

Personally, I believe much more upside in these little gems, MEE in particular.


----------



## moses (19 May 2008)

Datsun Disguise said:


> Growing crops for fuel pushes up the price of food, meaning more people starve so I can drive down to KFC. Sorry, doesn't sit well with me. While it is one of those expressions that rolls off the tongue easily (like 'clean coal' and 'carbon sequestration') when paying lip service to environmental ideals, the reality of it it is untenable and I think irresponsible.
> 
> Next boom? not biofuels - try horse breeding or stage coach building.




Agreed. Bio-waste into fuel, yes, but growing crops for fuel will soon backfire in a big way.


----------



## Schmuckie (20 May 2008)

Datsun Disguise said:


> Next boom? not biofuels - try horse breeding or stage coach building.




Perhaps you might want to consider buggy whips.  So much more interesting on soooo many levels.  



> Hey this was quite interesting. Thanks for posting the link.
> I dont think Niobium will be the next boom if you read this part..
> 
> Quote:
> The world's largest deposit is located in AraxÃ¡, Brazil and is owned by Companhia Brasileira de Metalurgia e MineraÃ§Ã£o (CBMM). The reserves are enough to supply current world demand for about 500 years, about 460 million tons.




I caught that too.  Tantalum looks very interesting.  Found a Canadian company that deals with it a lot and pays a dividend, but it trades in New York and not Toronto.  I might do a bit more research on it.

Chemical companies such as Dupont and oil company Chevron are forming joint ventures to look at cellulosic biofuels (a more expensive process than food-stock biofuels).  Chevron's joint venture is with a forest products company, which may pay off using forest waste.  North America is also having problems with pine beetle infestations, so there's lots of unmarketable wood out there that can be used.  Switch grass and farm waste are also being used.

In extremely hot climates, such as Arizona, biofuel from algae is a big thing and there are high yields of biofuel.  The theory is that since most underground oil was merely algae a hundred million years ago, it's a logical next step.


----------



## Trop Beaucoup (20 May 2008)

For uranium  look to who is producing or like;y to get to production soon - PDN, AGS


----------



## sbop (20 May 2008)

Tantalum for me .... any former Sons of Gwalia shareholders have a comment ? ? ?


----------



## Datsun Disguise (20 May 2008)

I wonder if we even can conceive of what the next boom sector will be - what is going to be the next world altering event? The current resources boom is due to the simultaneous rise of the Indian and Chinese middle classes. I really think the next big event to push us to change dramatically will be when we fall off the back side of peak oil (I'd say we are sitting cose to the peak now - one side or the other). 

Lets say that we are smart enough to realise that we need to use oil for the really important stuff, whatever that turns out to be, as  our reserves dwindle. I'd say that would mean oil powered transportation for the masses gets a big red cross. 

Assuming that we need to find a different fuel to get around to the shops, work, picking up the kids etc - so electric cars? Sounds good, would suit most day to day needs so overnight charging can do it. What about planes? Hmmm problem here. Maybe hydrogen? Cost a mozza to generate the gas - crashes would be a whole lot more spectacular. Shipping? Have to be nuclear wouldn't it.

So - (Go Nuke,  you'll like my thinking here)- we should be able to get by with $500 a barrel oil prices if it is used for the right purposes - ie NOT transport. If the transportation solutions I've hinted at are close to the money then we are going to need a heap of electrical power to turn water into hydrogen, power our cars & lawn mowers etc. What's a clean way of getting a lot of power? Hydro!! except we don't have any water...... Hmmm, what's that yellow stuff we have in the ground round these parts?? Go Nuke??

So I reckon the next real boom will be uranium mining, hydrogen production, nuclear power stations  and  ships. Probably have to wait a few years for it to happen though.


----------



## Datsun Disguise (20 May 2008)

Schmuckie said:


> Perhaps you might want to consider buggy whips.  So much more interesting on soooo many levels..





Schmuckie!! You ARE a naughty little monkey.


----------



## i wanna b rich! (23 May 2008)

The next group or sector to boom IMP is the energy and mining and i do hold some shares in the "poo" brigade.

Look at world oil prices "Goldman Sachs says that it believes that oil prices will be at $200 US barrel by 2010. That's $70 US barrel or 35% higher than current prices." source yahoo finance, so I'm looking at some oil stocks for diversification.

Also green energy or geo energy (EDE) as someone mentioned . Bio fuels i don't think will take off any time soon, world food prices are high and doesn't look like going down any time soon.

And mining the sector is doing really well, for me i'm staying away from retail sector and banks or though they have being recovery nicely.


----------



## farout (23 May 2008)

I've posted a story elsewhere already, but this deserves a spot in the boom thread. CXY, MEE & LNC have all had massive gains, here is a fresh face to look at.

Another UCG company for those following this sector. Well, UCG combined with gas to liquids technology. It has been around for a while but only finally getting recognised. GLX is the ticker, posting 25% gains today and traded over 6 million shares, biggest day ever recorded.


----------



## Spineli (24 May 2008)

I also posted this under the Commodity Thread.

I think the UCG/CSG - Underground Coal Gasification / Coal Seam Gas sector has a lot of fire under its belt...check out the recent preformances of frontrunners LNC/MEE...

Reasoning:

A good starting point would be here...

http://en.wikipedia.org/wiki/Coal

Quote from the WorldEnergy Survery of Energy Resources:

"As this Survey shows, coal is plentiful, widely
distributed and likely to be in continuing, and
increasing, demand for the foreseeable future."

AND see below extract from Wikipedia

"World coal reserves

At the end of 2006 the recoverable coal reserves amounted around 800 or 900 gigatonnes. The United States Energy Information Administration gives world reserves as 998 billion short tons[27] (equal to 905 gigatonnes), approximately half of it being hard coal. At the current production rate, this would last 164 years.[28] At the current global total energy consumption of 15 terawatt,[29] there is enough coal to provide the entire planet with all of its energy for 57 years.[original research?]"

Then consider the following:

"Underground coal gasification allow access to more coal resources than economically recoverable by traditional technologies. By some estimates it will increase economically recoverable reserves by 600 million tonnes"
http://en.wikipedia.org/wiki/Undergr...l_Gasification

Another case of inaccurate information on a Wiki site!

THAT SHOULD CORRECTLY READ "600 BILLION TONNES"....check out the original source:
http://www.worldenergy.org/documents..._version_1.pdf
(2007) Survey of energy resources (PDF), 21, World Energy Council (WEC), 7. ISBN 0946121265


*** In other words, a 600bn increase (via UCG) to 990bn present coal reserves is a 60% increase in potential supply

*** Assuming there was no preference in use between either UCG or present coal reserves - then I believe there would be a correction in the price of coal

*** However, Linc Energy has shown that the cost of extracting energy from coal via UCG is much cheaper than with open mines + the added benefits of a much cleaner (greenhouse friendly) process.

*** In the future, I see a seismic shift towards UCG coal mining for this very reason, massive potential reserves out there + in terms of the carbon trading scheme - since you won't be polluting that much, you have an incentive to undertake UCG and therefore dont pay much for carbon credits

carbonneutral.com.au
"What is the cost to offset 1 tonne of CO2e? Price per tonne of CO2e for organisations offsetting more than 20 tonnes CO2 is $18 and for individuals it is $19."

That's an extra $20 / tonne incentive to CSG companies.

*CONCLUSION -*--> The coal sector is heading to cleaner energy. CSG has many price advantages + 'clean benefits' (with policy backing).

- Since the potential CSG reserves as estimated in the WorldEnergy Survey Report (length @ 600 pages ... if you have time) are 600Bn tonnes OR which would add ~ 60% to present World Coal Reserves...in terms of supply/demand, I would expect the coal price to ease off.

****So in other words, it might be a rush to find CSG deposits (which would ceteris paribus have higher NPV project values considering extraction costs / carbon credits*


----------



## avaramo (26 May 2008)

Does anyone know why WCL is not receiving any attention?  Given the current hype it seems strange.  Maybe I am missing something.


----------



## prana (27 May 2008)

I have no definitive answer but for myself it's clear, all this dilution globally of cash money against something that isn't easily divisible can only amount to one thing, inflation of raw organic food. That's where I am putting my hard earnt dough - right or wrong, me no care.


----------



## Kaizen (1 June 2008)

I see the next boom stocks as food and stocks that benefit from high inflation and high interest rates. Any ideas?


----------



## Lucky_Country (1 June 2008)

Biotechs seem to be turning the corner.
A few of mine have bottomed and seem to be heading towards profitability.
There future is secure and products gaining acceptance.


----------

