Cameco Corp. (CCJ) shares took a major hit on Tuesday, falling more than 7% after Centerra Gold Inc. (CAGDF.PK), the mining company Cameco controls, was downgraded by RBC Capital Markets based on recent reports that the Kyrgyz government wants a bigger stake in the gold miner.

While shares in Cameco remained virtually unchanged on Tuesday, and rose less than 1% through mid-afternoon trading, UBS analyst Brian MacArthur was telling his clients that Cameco's share price depreciation offered a great buying opportunity. The analyst upgraded his rating from "neutral" to "buy" and left his price target unchanged at C$44.

Worth reading:

• International Assets Reports $6 Million Earnings for Second Quarter and Six Month EPS of $2.26 - Int’l Assets (IAAC) is a play on commodities and emerging markets.

Key quote: “Investors should note that the Company held commodities inventory at the end of the second quarter that was valued on the balance sheet at $16 million less than its fair market value.”

2008-06-12T06:14:51-04:00 Microcap Speculator

Microcap Speculator submits:

Worth reading:

• International Assets Reports $6 Million Earnings for Second Quarter and Six Month EPS of $2.26 - Int’l Assets (IAAC) is a play on commodities and emerging markets.

Key quote: “Investors should note that the Company held commodities inventory at the end of the second quarter that was valued on the balance sheet at $16 million less than its fair market value.”

Complete Story »

IAAC SNCR HRT GLD IAU Microcap Speculator

Dendreon's Provenge: Government Agencies Play Hide and Seek With Facts

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Editor's note: several of the links following are to PDF documents.

On June 2, 2008, the United States Court of Appeals for the Sixth Circuit, Cincinnati, Ohio, granted CareToLive oral argument in Appeal No. 07-4465, regarding the Southern District of Ohio Court’s decision (case # 07-729).  The case is scheduled to be heard on July 29, 2008, before a three-judge panel.  The granting of oral argument is just the next installment of a saga that began on May 8, 2007, with the FDA’s issuance of a Complete Response Letter (“Approvable Letter”) to Dendreon in the matter of its Provenge immunotherapy for end stage prostate cancer. 

2008-06-12T06:14:42-04:00 Theodore Cohen

Theodore Cohen submits:

Editor's note: several of the links following are to PDF documents.

On June 2, 2008, the United States Court of Appeals for the Sixth Circuit, Cincinnati, Ohio, granted CareToLive oral argument in Appeal No. 07-4465, regarding the Southern District of Ohio Court’s decision (case # 07-729).  The case is scheduled to be heard on July 29, 2008, before a three-judge panel.  The granting of oral argument is just the next installment of a saga that began on May 8, 2007, with the FDA’s issuance of a Complete Response Letter (“Approvable Letter”) to Dendreon in the matter of its Provenge immunotherapy for end stage prostate cancer. 

Complete Story »

DNDN Theodore Cohen

Oil and the ECB

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By Matthew Hougan

Oil going to $200/barrel and the euro going to $2 are not separate phenomena.

2008-06-12T06:09:53-04:00 Index Universe

IndexUniverse submits:

By Matthew Hougan

Oil going to $200/barrel and the euro going to $2 are not separate phenomena.

Complete Story »

OIL USO UUP UDN FXE DBO Index Universe

USEC Inc.: Uranium Play With A Bright Future Ahead

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Over the last year, USEC Inc. (USU) has fallen from a stock price of over $22 to just over $6. The stock has recently moved upward after falling as low as $3.15, but has since recovered somewhat. Since my call on fool.com, the stock is up 16.82%. Last year USU moved up quickly and was grossly overvalued, but the sell off was extreme and I believe this stock has higher to go in the upcoming months.

 USU has had many critics, and many reasons not to support nuclear energy. It seems inevitable that current energy pricing will not increase the need for more power through electricity. The biggest problem with current plans is with hybrid vehicle production. In the very near future, we will have hybrid vehicles that will be plugged in at home for the purpose of taking the pressure off oil inventories. This move of using electricity in conjunction with combustable engines seems to be part of the equation. Other methods are starting, such as the use of natural gas to propel government and other vehicles, as with Clean Energy Fuels Corp.(CLNE). There is also talk of a development stage use of hydrogen, but it is far enough off that we need something that will work in the interim.

When looking at USU, it is better to focus on the positives with respect to the company. Worries that USU would not be able to come up with financing for its new plant have recently been stifled by anticipation it will have a DOE guaranteed loan. This is by no means for sure, but prospects are good.

USU is the only uranium enrichment facility in the United States. It provides half the nuclear fuel to the US and a third to the rest of the world. It acts as the executive agent for the program to convert the US and Russian nuclear warheads into fuel. As of the end of last year, its order backlog was $6.5 billion. If we are to look long term at this company, its American centrifuge will dramatically cut costs, as its margins have been pressured by the increased cost of electricity.

Nuclear energy has many advantages. Its zero emissions and reliability are very important, as it can be used as base as it is not reliant on the weather such as wind or solar. Electricity production costs by nuclear are cheaper than any of the fossil fuels. It is currently, the third largest source of electricity in the United States and provides approximately 20%.

2008-06-12T06:09:28-04:00 Michael Filloon

Michael Filloon submits:

Over the last year, USEC Inc. (USU) has fallen from a stock price of over $22 to just over $6. The stock has recently moved upward after falling as low as $3.15, but has since recovered somewhat. Since my call on fool.com, the stock is up 16.82%. Last year USU moved up quickly and was grossly overvalued, but the sell off was extreme and I believe this stock has higher to go in the upcoming months.

 USU has had many critics, and many reasons not to support nuclear energy. It seems inevitable that current energy pricing will not increase the need for more power through electricity. The biggest problem with current plans is with hybrid vehicle production. In the very near future, we will have hybrid vehicles that will be plugged in at home for the purpose of taking the pressure off oil inventories. This move of using electricity in conjunction with combustable engines seems to be part of the equation. Other methods are starting, such as the use of natural gas to propel government and other vehicles, as with Clean Energy Fuels Corp.(CLNE). There is also talk of a development stage use of hydrogen, but it is far enough off that we need something that will work in the interim.

When looking at USU, it is better to focus on the positives with respect to the company. Worries that USU would not be able to come up with financing for its new plant have recently been stifled by anticipation it will have a DOE guaranteed loan. This is by no means for sure, but prospects are good.

USU is the only uranium enrichment facility in the United States. It provides half the nuclear fuel to the US and a third to the rest of the world. It acts as the executive agent for the program to convert the US and Russian nuclear warheads into fuel. As of the end of last year, its order backlog was $6.5 billion. If we are to look long term at this company, its American centrifuge will dramatically cut costs, as its margins have been pressured by the increased cost of electricity.

Nuclear energy has many advantages. Its zero emissions and reliability are very important, as it can be used as base as it is not reliant on the weather such as wind or solar. Electricity production costs by nuclear are cheaper than any of the fossil fuels. It is currently, the third largest source of electricity in the United States and provides approximately 20%.

Complete Story »

USU Michael Filloon

CIBC Analyst: Expect Strong 2Q Earnings from Transat

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Transat A.T. (TRZAF.PK), Canada’s largest charter tour operator, will deliver its second quarter earnings today, and Chris Murray, CIBC World Markets analyst, says he is expecting a stronger showing than last year - although he is not ruling out additional write-downs on the C$154.4-million it had tied up in the troubled asset-backed commercial paper market.

Mr. Murray said he expects earnings per share of C$1.24, excluding the potential for further write downs, up from C$1.21 last year, and well above the Street’s consensus of C$1.09.

2008-06-12T06:07:20-04:00 FP Trading Desk

FP Trading Desk submits:

Transat A.T. (TRZAF.PK), Canada’s largest charter tour operator, will deliver its second quarter earnings today, and Chris Murray, CIBC World Markets analyst, says he is expecting a stronger showing than last year - although he is not ruling out additional write-downs on the C$154.4-million it had tied up in the troubled asset-backed commercial paper market.

Mr. Murray said he expects earnings per share of C$1.24, excluding the potential for further write downs, up from C$1.21 last year, and well above the Street’s consensus of C$1.09.

Complete Story »

TRZAF.PK FP Trading Desk

ETF Update: Commodity, Agriculture, and Wind Energy ETFs

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Commodity ETFs Were a Bunch of Bull In May, and Remain So In June

Commodity ETFs were among the strongest performers for May, and if things keep going the way they are, June might be another decent month. In fact, it might be a good time for those of you who missed our special report on commodities to have a look, because this area doesn't seem like it's going to disappear from the headlines anytime soon.

Not halfway through the month, and new records are being reached daily for both gas and oil prices. Gas is at a record national average of $4.052 a gallon, and oil prices rocketed close to $137 a barrel after inventories fell, reports John Wilen for the Associated Press.

2008-06-12T06:04:31-04:00 Tom Lydon

Tom Lydon (ETF Trends) submits:

Commodity ETFs Were a Bunch of Bull In May, and Remain So In June

Commodity ETFs were among the strongest performers for May, and if things keep going the way they are, June might be another decent month. In fact, it might be a good time for those of you who missed our special report on commodities to have a look, because this area doesn't seem like it's going to disappear from the headlines anytime soon.

Not halfway through the month, and new records are being reached daily for both gas and oil prices. Gas is at a record national average of $4.052 a gallon, and oil prices rocketed close to $137 a barrel after inventories fell, reports John Wilen for the Associated Press.

Complete Story »

TAN QCLN PZD UAG RJA DBA UNG GAZ JJE USL DBE Tom Lydon

Blackmont Analyst: First Majestic's Expansion Should Double Production

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Blackmont raised its target price for First Majestic Silver Corp. (FRMSF.PK) from C$8.50 to C$8.75 as the miner received the final permit to build a large expansion at its La Encantada mine in Mexico, which should more than double its production capacity by 2010.

Construction of the new 3,500 tonne per day cyanidation circuit is expected to start immediately and be completed by February 2009. It will allow for the processing of both a mixture of ore and tailings, raising production to 4 million an ounce per year by 2010, from an estimated 1.65 million an ounce in 2008.

"This stock remains one of our top picks in the entire precious metals sector and we maintain our Buy recommendation," wrote Blackmont Capital analyst Richard Gray.

2008-06-12T06:02:14-04:00 FP Trading Desk

FP Trading Desk submits:

Blackmont raised its target price for First Majestic Silver Corp. (FRMSF.PK) from C$8.50 to C$8.75 as the miner received the final permit to build a large expansion at its La Encantada mine in Mexico, which should more than double its production capacity by 2010.

Construction of the new 3,500 tonne per day cyanidation circuit is expected to start immediately and be completed by February 2009. It will allow for the processing of both a mixture of ore and tailings, raising production to 4 million an ounce per year by 2010, from an estimated 1.65 million an ounce in 2008.

"This stock remains one of our top picks in the entire precious metals sector and we maintain our Buy recommendation," wrote Blackmont Capital analyst Richard Gray.

Complete Story »

FRMSF.PK FP Trading Desk

Bank of Canada Rate Decision A Watershed

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Yesterday’s decision by the Bank of Canada not to lower its discount rate as universally expected may have been a shock to economists but it also represents a watershed event of sorts in the conduct of monetary policy. It signals a welcome shift in focus from the core CPI rate to the All-items CPI rate as a guide for setting policy -- and an implicit acknowledgement that asset (commodity) prices need to be considered as part of the price-stability rule.

The Bank of Canada said it did not cut because the All-items CPI would breach 3% annual growth later in 2008 as a result of soaring oil prices. The core CPI rate was still within the inflation-target range, but its good behavior did not carry as much significance with the Bank. This change in emphasis is to be applauded, I believe, because the secular uptrend in energy prices is driving a persistent wedge between the core and All-items CPI – as discussed in my Dec. 20 post, Core inflation rate potentially misleading?

2008-06-12T05:59:08-04:00 Larry MacDonald

Larry MacDonald submits:

Yesterday’s decision by the Bank of Canada not to lower its discount rate as universally expected may have been a shock to economists but it also represents a watershed event of sorts in the conduct of monetary policy. It signals a welcome shift in focus from the core CPI rate to the All-items CPI rate as a guide for setting policy -- and an implicit acknowledgement that asset (commodity) prices need to be considered as part of the price-stability rule.

The Bank of Canada said it did not cut because the All-items CPI would breach 3% annual growth later in 2008 as a result of soaring oil prices. The core CPI rate was still within the inflation-target range, but its good behavior did not carry as much significance with the Bank. This change in emphasis is to be applauded, I believe, because the secular uptrend in energy prices is driving a persistent wedge between the core and All-items CPI – as discussed in my Dec. 20 post, Core inflation rate potentially misleading?

Complete Story »

Larry MacDonald

Blackmont Analyst: Bright Future Ahead for 5N Plus

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Blackmont Capital analyst Trevor Johnson initiated coverage on 5N Plus Inc. (FPLSF.PK), a Montreal-based producer of metal compounds used in the production of photovoltaic cells for the solar energy industry, with a "buy" rating and a target price of C$14.50.

5N produces high purity metals, typically above the 99.999% mark, used in specific segments of the electronic materials market, in particular tellurium, cadmium, selenium and their compounds.

2008-06-12T05:55:53-04:00 FP Trading Desk

FP Trading Desk submits:

Blackmont Capital analyst Trevor Johnson initiated coverage on 5N Plus Inc. (FPLSF.PK), a Montreal-based producer of metal compounds used in the production of photovoltaic cells for the solar energy industry, with a "buy" rating and a target price of C$14.50.

5N produces high purity metals, typically above the 99.999% mark, used in specific segments of the electronic materials market, in particular tellurium, cadmium, selenium and their compounds.

Complete Story »

FPLSF.PK FSLR FP Trading Desk

Small Homebuilders: A Bargain vs. Book Value

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In a previous post, we saw that homebuilders' market values track decently well with their book values. But those were the largest of homebuilders. Here, we look at Price to Book values for the smallest cap builders. All of these companies (Brookfield (BHS), Comstock (CHCI), Meritage (MTH), Orleans (OHB), California Coastal (CALC) and Tousa) have market caps under $500 million, so they may present opportunities that the large builders don't, as we've discussed here in our discussion about why smallcaps are better investments.

2008-06-12T05:55:19-04:00 Saj Karsan

Saj Karsan submits:

In a previous post, we saw that homebuilders' market values track decently well with their book values. But those were the largest of homebuilders. Here, we look at Price to Book values for the smallest cap builders. All of these companies (Brookfield (BHS), Comstock (CHCI), Meritage (MTH), Orleans (OHB), California Coastal (CALC) and Tousa) have market caps under $500 million, so they may present opportunities that the large builders don't, as we've discussed here in our discussion about why smallcaps are better investments.

Complete Story »

MTH CALC DHOM BHS CHCI OHB Saj Karsan

ELEMENTS Launches New Cyclical Commodity ETN

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By Heather Bell

The ELEMENTS platform has just seen another commodity-related exchange-traded note launch, but this one has a twist.

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