Christopher Welch: Searching for a Perfect 10

The Gold Report: Chris, the lifeblood of your business is financing. What's your read on the appetite for junior financings compared to earlier this year?

Christopher Welch: The appetite for high-quality projects in the mining space is basically the same as it was in early 2012. However, in the current environment, where share prices are a bit depressed, it's getting harder to match investors with companies at share prices that are acceptable to both parties.

Aureus Mining Inc. (AUE:TSX; AUE:LSE) is conducting a big fundraising for its New Liberty mine in Liberia, which is positive news demonstrating there are green shoots in the equity space for West African gold, which is encouraging. We're optimistic that there will be more deals done in the near term.

TGR: There's been some instability in Mali, which stemmed from instability in Libya in part, and now there's growing religious tension in Nigeria. Does West Africa remain as stable as you once believed it was? Continue reading "Christopher Welch: Searching for a Perfect 10"

How Dangerous Is Genetically Modified Food?

Last month, a group of Australian scientists published a warning to the citizens of the country and of the world who collectively gobble up some $34 billion annually of its agricultural exports. The warning concerned the safety of a new type of wheat.

As Australia's number-one export, a $6-billion annual industry, and the most-consumed grain locally, wheat is of the utmost importance to the country. A serious safety risk from wheat – a mad wheat disease of sorts – would have disastrous effects for the country and for its customers.

Which is why the alarm bells are being rung over a new variety of wheat being ushered toward production by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) of Australia. In a sense, the crop is little different than the wide variety of modern genetically modified foods. A sequence of the plant's genes has been turned off to change the wheat's natural behavior a bit, to make it more commercially viable (hardier, higher yielding, slower decaying, etc.). Continue reading "How Dangerous Is Genetically Modified Food?"

Gold Chart of the Week

Each week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report 11-12 through 11-16

We begin this week in a light volume trade as the United States recognizes Veterans Day across the country. While the Gold Futures trade inside Fridays range, the market appears poised for higher prices this week.

After collapsing on the first and second day in November, the market has shown strength on a day to day basis. Fundamentally, all markets had to deal with a heated Presidential Election in the United States. The expectation was that a win by Barack Obama would help underpin Gold prices, as his policies would continue to give Ben Bernanke freedom to devalue the US Dollar through Quantitative Easing. Surprisingly, the US Dollar and Gold rallied side by side last week, which caught many traders off guard, but was welcomed by market bulls. This decoupling is not something that we see every day, which probably explains Gold’s cautious rally throughout last week’s trade. One can only wonder how high the price could have gone if the Dollar was down last week! Continue reading "Gold Chart of the Week"

A Tasty Dividend For The Hungry Investor

Don’t let your mother or your wife see this latest stock tip. They might get jealous!

They might be great cooks, but seriously, you should take a good look at what’s cooking in the food industry. Especially if you’re a hungry investor.

Fatten Up On This

When it comes to my feature stock of the day, there’s more to it than a tasty dividend. But the dividend does provide a very healthy yield of 3.59%!

We’re also looking at a larder full of products and profits. Even if you think you don’t care for Chef Boyardee, Orville Redenbacher, Peter Pan, Marie Callender’s or Slim Jim, you have to like what ConAgra Foods is doing with its brands.

The company’s CEO, Gary Rodkin says ConAgra labels now appear in 97% of all American households. That’s an astonishing number!

But Rodkin isn’t done – far from it.
In the past, ConAgra’s strategy was to make giant acquisitions. Now he is still aiming at more acquisitions but he says he’s hunting for smaller targets that generate profits which appear almost immediately on the bottom line. Continue reading "A Tasty Dividend For The Hungry Investor"

Are You a High-Stakes Speculator?

I attended this year's New Orleans Investment Conference along with Doug Casey, Marin Katusa, and Casey Research's CEO, Olivier Garret. It was fun to see many old friends among the attendees and other speakers, but the most interesting thing was an experiment I conducted as part of my speech.

You see, there had been a talk earlier in the conference on picking "ten-baggers" (stocks that go up 1,000%). Now, there's nothing wrong with shooting for ten times your investment in a highly volatile stock. It's neither a crazy nor a hyped-up claim – we've had many ten-baggers in our portfolios, including Silver Wheaton (SLW) and First Majestic (AG). But it's not easy, and many of the nano-cap stocks that offer that sort of potential do the opposite and drop 90% – if not all the way to zero.

So I asked the audience to raise their hands if they wanted ten-baggers in their portfolios. About three-fourths of the audience put their hands up. I didn't take time to count the hands, but it was a lot of people – several hundred.

I then explained the realities involved: Continue reading "Are You a High-Stakes Speculator?"