Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
As soon as the cut is announce I expect energy to fly as this will confirm a floor in prices and therefore pretty much guarantee record earnings over the next 12-24 months. With the downside covered off Bulls will take control of the market and up we go.
I feel like this is about to make a big move soon. Momentum is heading up, RSI has reset, gap has been closed and the 50 day MA has recently crossed both the 100 and 200 day MA (golden cross). Oil and gas prices heading north as well.
Anyone know how much cash they have left? No chance of a bond raise in this market. If there is a prolonged recession will they be able to ride it out with availability liquidity or will the be expecting shareholders to bail them out and dilute existing holders?
That’s a tough question. IMO Interests rates are going to 4-5%. I’d be surprised if the go higher. The market is pricing in a 1.75% increase in November. I very much doubt the BOE will raise this much, more so if the US CPI print next week comes in lower. This will result in a run on sterling which I see at Parity this year and bottoming around 0.95 in 2023.
I believe the BOE will allow the currency to devalue to prevent a housing market crash and It has little reserves to defend sterling . House prices do and will drop to flush out the leverage but an all out crash has bigger implications for the economy and financial stability. 2023 will be a year of pain for many but by 2024 we should start seeing a recovery.
I’m long energy for the next few months as I believe markets have priced in aggressive fed rate hikes. Some decent CPI prints will boost markets. What they haven’t priced in however is the drop of earnings and valuation. I’ll be shorting with big positions as soo. As the next bear market rally looks overdone.
There is a market Rally coming next week. CPI will be down. Gilt market will continue to stabilise as the market know the BOE will do what’s required to stabilise the market. Torrie conference is a do or die moment for LT and KK so I’ll expect some concessions on the growth plan and expect a big cut from OPEC+ to take oil to 90+ bucks.
In addition any hit on sterling should only add to valuation of Uk energy companies. Q3 results from US energy companies will only confirm major profits, cash flow, dividends and buy backs which should give help give energy sector a boost in general with regards to SP appreciation.
After being 4% down this morning we have actually held up well. I think smart money is positioning in oil right now. Gas is going to stay elevated and opec will keep a bottom on oil at £80. No other sector is or will be throwing off vast amounts of cash and dividends even during a recession.