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2022 Oil & Gas Market Update: “The Outlook for Crude Oil Prices Remains Quite Bullish”

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Transcript Hello, this is Callum Turcan, Associate Director of Research at Valuentum Securities. WTI and Brent have pulled back moderately from recent highs, though near-term futures remain just above $100 per barrel which is well above levels seen last year. As of early July, both WTI and Brent are in backwardation, meaning spot prices are trading at a higher price than later dated future contracts. In other words, the trajectory of future crude oil prices is expected to have a downward slope. Please note that backwardation does not mean that things are going to rapidly deteriorate for the global energy complex, as this dynamic is due to global oil inventories steadily declining over the past two years or so. Backwardation … Read more

Small Capitalization Stocks Officially in Bubble

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Tulip mania was a period in the 17th century during which prices for tulip bulbs reached irrationally high levels and then collapsed almost overnight. The picture to the right is a tulip, known as “the Viceroy”, as displayed in a Dutch catalog of the time. The picture serves as a reminder to us of the potential madness of crowds, perhaps no better popularized by Charles Mackay’s 1841 book Extraordinary Popular Delusions and the Madness of Crowds, which outlined such behavior: Many individuals grew suddenly rich. A golden bait hung temptingly out before the people, and, one after the other, they rushed to the tulip marts, like flies around a honey-pot. Every one imagined that the passion for tulips would last … Read more

Surveying the Clean Energy Landscape for Ideas

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Image Source: American Electric Power Company Inc (AEP) – January 2021 IR Presentation By Callum Turcan There’s a lot of interest in clean energy these days! Though our favorite ideas within a portfolio context are always the ideas within the Best Ideas Newsletter portfolio, the Dividend Growth Newsletter portfolio, the High Yield Dividend Newsletter portfolio, and the Exclusive publication, we also highlight interesting ideas via our articles that we publish on our website. [For instance, we recently published work that covered the electric vehicle (‘EV’) industry; members can check out that article here.] In this article, let’s dig deep into the clean energy space. We’ll talk more about: 1) Ameresco (AMRC), one of the green energy ideas we highlighted in … Read more

Biofuel Producer Renewable Energy Group Is Worth a Look

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Image Shown: A geographical overview of Renewable Energy Group’s operational “biorefineries” in the US and Germany. Image Source: Renewable Energy Group Inc – October 2020 IR Presentation Executive Summary: Renewable Energy Group is an intriguing biofuel maker with operational “biorefineries” located across the US and in Europe (specifically Germany). The company’s operations are supported by an extensive distribution network that is primarily built upon supply agreements with third parties, though Renewable Energy Group opened its own branded fuel location in 2019 for the first time. Shares of REGI have been on an upward tear of late, likely due to growing investor optimism towards green energy firms, in our view, as the new Biden administration in the US has made it … Read more

Dividend Aristocrat Albemarle Bets Big on Lithium

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Image Source: Albemarle Corporation – May 2021 IR Presentation By Callum Turcan  Dividend Aristocrat Albemarle Corporation (ALB) is a specialty chemicals company with three core business operating segments; ‘Lithium’ (primarily used for battery storage solutions), ‘Catalysts’ (primarily used in the oil refining industry), and ‘Bromine Specialties’ (primarily used as flame retardants). The company is focused on aggressively growing its lithium derivatives operations going forward, Albemarle’s largest in terms of revenues and most profitable in terms of non-GAAP adjusted EBITDA performance. Let’s learn more about this fascinating company. Image Shown: An overview of Albemarle’s business profile. Image Source: Albemarle – May 2021 IR Presentation Lithium Prices Are on the Rise During the final quarter of 2020, Albemarle sold its economic stake … Read more