INO.com Contributors Archives - Page 32 of 393

Which Is The Better Silver Mining Stock?

Posted on August 1, 2022July 29, 2022 by Taylor Dart

Following a violent correction in the Silver Miners Index (SIL) year-to-date, many investors are hunting for deals in the sector.

While the silver producers offer very nice leverage to the metal, given that their margins can increase rapidly as the price of silver increases, not all of them are created equal. This is why holding the best names when selecting which ones to purchase to complement one’s portfolio is essential.

In this update, we’ll look at SilverCrest Metals (SILV) and First Majestic (AG) and see which one is the better selection for one’s portfolio:

Size & Jurisdictions

Regarding size, First Majestic is a much larger producer, on track to produce more than 33MM silver-equivalent ounces this year, making it one of the largest silver producers sector-wide. The company also benefits from diversification, owning three mines (San Dimas, Santa Elena, and La Encantada) in Mexico and a gold mine in the #1 mining jurisdiction: Nevada.

This compares favorably to SilverCrest Metals (“SilverCrest”), which owns just one mine in Mexico that is ramping up towards commercial production, and will produce just 12.0MM silver-equivalent ounces in 2023. So, with a lack of diversification (1 mine vs. 4), a slightly less attractive jurisdictional profile (no production from Tier-1 ranked jurisdictions), and a smaller production profile, First Majestic Silver wins by a wide margin in this category.

First Majestic - 1 / SilverCrest - 0 Continue reading "Which Is The Better Silver Mining Stock?" →

Chart Spotlight: Tellurian Inc. (TELL)

Posted on July 31, 2022July 29, 2022 by Ian Cooper

Natural gas prices are exploding.

For one, Russia said it would cut natural gas shipments to Europe.

In fact, as noted by Barron’s, “Russian company Gazprom said on Monday that it will cut natural gas shipments from the key Nord Stream pipeline to Germany starting this week. The pipeline’s exports will be cut to 20% of capacity, down from 40%, because of a sanctions-related issue with turbines serving the pipeline.”

Two, there are drought conditions in the U.S., and a heat wave forcing millions to turn up their air conditioners to full blast.

Three, according to EQT CEO Toby Rice, as quoted by Barron’s, “In the United States, we’ve got the natural gas here, we’ll be fine. But you think about our allies in Europe, and the tremendous power and influence that Russia has on these countries. Clearly, we need to take away the gun, and provide the energy to our allies around the world.”

All could create a big opportunity for natural gas stocks, like Tellurian (TELL).

Tellurian – a $2.1 billion company – is “building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide.”

Better, the company could benefit from a substantial shortage of natural gas.

In fact, according to its latest investor deck, geopolitics and energy security providing a step change in global LNG demand. Tellurian notes there’s (1) underinvestment in energy and post-CV structural growth have collided with a geopolitical crisis; (2) A need to replace 20 Bcf/d of Russian gas to Europe, equivalent to ~35% of the world’s LNG market; (3) Natural gas shortage expected to lead to catastrophic consequences.

Technically, according to MarketClub, shares of TELL are slightly overbought. The MarketClub Smart Scan also gives the stock a score of +60, which tells us at the moment, the stock is struggling to move in a solid trend.

However, with natural gas prices showing no signs of cooling off, I’d like to see the stock run from a current price of $3.68 to $5, near-term.

The MarketClub Trade Triangles are also mostly green.

While it’s telling us that the longer-term trend has been down over the last month, the intermediate trend has been strong since mid-July. In addition, the short-term trend, according to Market Club, has been up since mid-July as well.

Source: MarketClub

Ian Cooper
INO.com Contributor

The above analysis of Tellurian Inc. (TELL) was provided by financial writer Ian Cooper. Ian Cooper is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Ian Cooper expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Fundamental Vs. Technical Analysis - What's Your Style?

Posted on July 30, 2022July 28, 2022 by Chris Vermeulen

In investing and trading, we often hear debates on the merits of fundamental vs. technical analysis. Both aim to improve our probability of a profit. Both methods have their usefulness when correctly applied.

They are not the same by any stretch, so it’s not a debate over one “apple” vs. another. It’s a comparison of two completely different approaches, and the comparison is more of the “apples vs. oranges” variety.

Trading vs. Investing

Before we get into the fundamental vs technical analysis, there are important distinctions to be made between investors and traders.

Investors are more long-term growth-oriented, while traders focus on immediate income or aggressive account growth. Market participants tend to be focused on one approach or the other. But many are a mix of both.

Investing and trading are different worlds, and it can be challenging to master either domain, much less both. The key is to know what style is best for your timeframe, to what extent, and why. Continue reading "Fundamental Vs. Technical Analysis - What's Your Style?" →

These 2 Retail Giants Are Trading at a Steal

Posted on July 29, 2022July 27, 2022 by Taylor Dart

Few sectors have been hit as hard as the Retail Sector (XRT) over the past nine months, with the ETF finding itself down 45% from its highs at its June lows.

This shellacking should not be a huge surprise, given that the group was coming up against impossible year-over-year comps in Q1/Q2 2022. This was related to the benefit of government stimulus on sales in the year-ago period, with margins also under pressure due to labor inflation and higher shipping costs.

The index is now finally lapping this unfavorable period, but it’s dealing with another issue: worries about a global recession.

While few sectors are hit harder than retail in a recessionary environment, all businesses are not created equal, and many can weather the storm much better than their peers.

This is especially true of the businesses that lean more towards staples than discretionary or those companies that benefit from a trade-down environment, with these being off-price retailers.

If the sector is destined for lower prices once a recession is confirmed (which looks like a high probability), it’s understandable that some investors aren’t in a hurry to invest. However, I believe two names stand out as cheap with high-quality businesses that should outperform the group.

Let’s take a closer look below: Continue reading "These 2 Retail Giants Are Trading at a Steal" →

Chart Spotlight: Marathon Digital Holdings (MARA)

Posted on July 28, 2022July 26, 2022 by Ian Cooper

Cryptocurrencies are showing big signs of life again.

Look at Bitcoin, for example. After crashing to a low of $19,097, BTC is now back up to $22,960. Not only is that great news for cryptocurrencies, it’s a strong catalyst for mining stocks, like Marathon Digital Holdings (NASDAQ: MARA).

After all, miners rise and fall with the price of Bitcoin.

Technically, MARA just broke above double top resistance dating back to late May 2022. Now, from a current price of $11.48, we could see a potential bearish gap refill around $16 a share. If Bitcoin can continue to recover, MARA could even retest $30 at some point.

Granted, there are some red flags...

Not only is MARA at its upper Bollinger Band, it’s also over-extended on Williams’ %R, Fast Stochastics, and on Relative Strength. So, there is some concern. However, if Bitcoin can continue to push higher, MARA is sure to follow.

Source: MarketClub

Helping, BTIG analyst Mark Palmer believes Bitcoin could quadruple from current prices to $95,000 by 2023, as noted by U Today.

Changpeng Zhao, the CEO of Binance believes Bitcoin could rally to $70,000 in “a few months or years,” he said, as quoted by The Guardian.

Even the CEO of MicroStrategy, Michael Saylor has been buying weakness in Bitcoin, too.

Fundamentally, there’s a lot to like about MARA, as well.

In the second quarter of 2022, the company produced 707 self-mined Bitcoin, an 8% increase year over year from 654 bitcoin mined in Q2 2021. Year-to-date Marathon Digital produced 1,966 Bitcoin, a 132% increase year over year. In addition, the total number of miners installed and awaiting energization at Texas facilities increased to 29,640 miners.

Marathon Digital also just secured a five-year deal with Applied Blockchain, which builds and operates data centers throughout America.

With that, Marathon “secured approximately 254 megawatts of new hosting arrangements for its Bitcoin mining operations, with an option to increase to 324 megawatts, from a variety of hosting providers. Marathon believes it has now secured ample hosting arrangements to support the Company’s previously stated goal of approximately 23.3 exahashes per second of computing power for Bitcoin mining,” as noted in a company press release.

That’s big news for MARA, and signals that the company will survive the rout.

From a current price of $11.48, I’d like to see the Marathon Digital Holdings stock test $16 a share, near-term. Longer-term, I’d like to see it test $30 again.