The next stock group to boom?

[Datsun Disguise]

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!]

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]

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]

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]

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

 

[prana]

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]

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

 

[Lucky_Country]

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.