During my time in the UK, I love investing in oil exploration companies, especially the penny stocks. My favourite was a company listed on the Irish stock exchange called Tuskar Resources. Just before it announced exploration results, the share price will multiply and then, over the months ahead, it will fall back to earth. It was wonderful buying these when no one wanted and then waiting for news on its exploration results and selling the shares before the release of these results.
Yes, I am looking at some Australian mining and exploration stocks as I enjoy the adrenaline rush that comes with such investments. However, I will be taking my time as I will only buy when the market has collapsed.
Because of the expected large amount of shale oil coming out of the US in the near future, I am now more inclined towards gold mining companies rather than oil ones.... especially if gold falls below US$1,000 per ounce.
I think it is best to avoid all oil and gold related stocks including those that provide services to these firms. There will certainly be opportunities in the future as these are cyclical industries. Just that one has to be patient and pick the stocks up at their lows. Right now, it is a good time to do the research on such stocks and get ready.
The family of Jim Justice paid $5 million for several mining sites and processing plants in southern West Virginia previously owned by Russia’s OAO Mechel. The family sold Bluestone Coal Corp. in 2009 for a combination of cash and Mechel stock in a deal valued at $568 million, according to data compiled by Bloomberg.
Beating the dead horse that is coal ~ According to FRB Capital Markets, the EPA’s new Clean Power Plan will cut coal consumption in the power sector by 267 to 285 million tons until 2030.