A Huge Opportunity for Retailers in 2016
Mobile Couponing is a Huge Opportunity for Retailers in 2016
– Momentum Public Relations –
Consumers love coupons. According to RetailMeNot, an astonishing 92{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of North American consumers use coupons on a regular basis. While most retailers are aware of the marketing and sales power of coupons, a significant percentage have yet to make the shift to digital coupons. Even though 90 million consumers will have used a digital coupon at least once by the end of 2016, this channel is still very underutilized by retailers of all sizes.
Since consumers have made it clear that their purchases are directly influenced by coupons and they’re quite comfortable with mobile coupons, here’s how retailers can make the most of mobile couponing in 2016 and beyond:
- Don’t Be Afraid of Coupon Consistency
Some retailers are afraid of using mobile coupons on a consistent basis. While this is an understandable concern, industry data shows that consistency actually increases the effectiveness of coupons. Retailers who commit to a consistent mobile coupon strategy are able to drive predictable redemption rates, while retailers that only deliver occasional coupons via mobile generally experience erratic results.
- Make Promotions Exclusive to Mobile
Although consumers love good deals, what they love even more is feeling like they’re getting a good deal that’s exclusive to them. Making a point of only sending certain promotions via mobile will create that exact type of feeling for customers. Letting people know that exclusive promotions are only available via mobile is also a great way to increase mobile signups.
- Find Opportunities to Surprise and Delight
Another reason that mobile coupons present such a compelling opportunity for retailers is they make it possible to deliver coupons in real-time. For example, if a customer is about to check out, an enticing coupon can be delivered directly to their phone that gives them a great deal on a relevant upsell. This type of approach is both beneficial to retailers’ bottom line and creates a great experience for customers.
- Review Data to Refine Mobile Strategy
Retailers have access to more customer data than ever before. When combined with an intelligent mobile couponing system, retailers can use all of this data to analyze different promotional efforts and pinpoint which ones drive the best results. Having the ability to analyze and refine coupons on an ongoing basis makes it possible for retailers to create a highly optimized mobile promotional strategy.
- Use the Right Tool to Manage Mobile Couponing
Retailers can drive significant results by committing to a consistent mobile coupon strategy, using promotions that are exclusive to mobile, finding opportunities to surprise & delight and utilizing data to refine their mobile strategy. The key to putting all those pieces of the mobile coupon puzzle into place is using the right tool.
Mobi724 Global Solutions (MOS:CSE) is the perfect solution for retailers who want to make the most of the opportunity presented by mobile couponing. By integrating the tech into an elegant platform, coupons can be linked to a consumer’s banking or credit card. Not only does that eliminate the friction associated with many other mobile coupon backends, but Mobi724’s cutting-edge technology provides retailers with everything they need for real-time mobile coupon delivery and data collection.
- Published in Blog, Mobi724 Global Solutions, Mobile Technology, Technology
Gold Jumps on Fed Interest Rate Announcement
The FOMC Interest Rate Increase was Short on Expectations – Gold Surges
– Momentum Public Relations –
The Federal Reserve’s biggest meeting of the year was held on March 15-16, capped off by a press conference from Federal Reserve Chair Janet Yellen. In the official press release, the Federal Open Market Committee (FOMC) stated:
“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen. However, global economic and financial developments continue to pose risks. Inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of declines in energy and import prices dissipate and the labor market strengthens further. The Committee continues to monitor inflation developments closely.
Against this backdrop, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.”
Yellen would not rule out the possibility of an April rate hike, striking a notably cautious tone throughout her press conference. She stressed that the committee’s projections were not to be viewed as promises and were subject to change as new data became available. However, the two projected interest rate hikes for 2016 are down from the four hikes experts expected back in December.
Although the FOMC announcement was notable for investors of all types, those interested in gold were particularly enthused by the news. After posting negative returns for the past three years, 2016 has brought plenty of good news for gold investors. Seeing a 13{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} plus hike in the early months of 2016, gold dropped briefly last week before spiking immediately after the FOMC announcement.
Gold began 2016 trading at $1,078.40 USD an ounce. As of March 17, it was trading at $1,262.70 USD an ounce. Reasons for gold’s continued gains include:
- The stock market has been off to sluggish start for 2016. This prompted the rise of gold as investors started losing faith in their stocks and seeking alternative investments. Gold is well regarded as good investment for those seeking protection from global insecurities.
- A weak dollar associated with low interest rates in the United States makes dollar denominated commodities such as gold more appealing. Historically, gold prices increase whenever the value of paper currency falls.
- The Feds appear to be leaning towards higher employment at the expense of higher inflation.
If you’re interested in diversifying your investments with gold, there are four primary options to consider:
- Physical Gold: Banks sell 24 carat gold for investors, but expect to pay a premium for the 99.99{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} purity. Jewelry is often a more affordable way to invest, but don’t forget to check for purity and factor in the cost of a secure facility for safe storage.
- Gold ETFs: Offered by fund houses, gold exchange traded funds are listed on the stock market. They can be purchased and sold just like shares of stock.
- Gold Mutual Funds: Allowing investors to invest through SIPs, gold mutual funds invest in multiple gold ETFs.
- Gold Bond Schemes: Gold-denominated bonds are issued by the Reserve Bank of India (RBI) with a fee linked to current gold prices. They have a maturity date of eight years and an exit option after five years.
Although now may seem to be the perfect time to invest in gold, please keep in mind that prices will inevitably continue to fluctuate. Wait for gold to drop to the lowest possible price before it soars to get the highest return on your investment.
A Giant is Brought Down
Pharma Giant Valeant has been Brought Down
– Momentum Public Relations –
Shareholders in Valeant Pharmaceuticals (VRX) have undoubtedly had a rough year. Unfortunately, the struggling drug maker shows no signs of improvement. After losing nearly half the stock’s value in the last week, the company’s downward spiral continues.
By the close of the day on March 14, Valeant was valued at $23.6 billion. This is a dramatic drop from its value of $89.6 billion during its peak trading price in mid-August. March 15 share prices closed at $40.20, the same level as March 15, 2011. Shares had been consistently above $50 since 2012, with a high of $263.70 in August 2015.
Valeant’s biggest shareholders are feeling the pain of the company’s struggles. Pershing Square is left with about $800 million in losses from this week alone. ValueAct is down roughly $390 million.
Several factors are affecting Valeant’s stock price.
• Excessive Debt: The company is heavily in debt due a lengthy acquisitions binge, carrying over $30 billion in net debt and levered with a debt-to-equity ratio of nearly 5-to-1. They’re also at risk of defaulting on certain debts, due to a failure to file their 10-K for 2015 within the 15-day extension window required by regulators.
• Weak Growth: Multiple analysts believe Valeant’s emphasis on serial acquisitions has been camouflaging week growth. Unaudited fourth-quarter earnings were well below expectations and several drugs in the company’s portfolio aren’t living up to the company’s promises to investors. For example, a drug that claims to boost a woman’s libido, Addyi, is unlikely to hit the sales of $100 million to $115 million that the company had previously stated. Lower growth across the board is expected in Valeant’s US dermatology, gastrointestinal, and women’s health portfolios.
• Legal Trouble: Valeant’s pricing strategies have been widely criticized, leading to investigations from the US Attorney’s Office for the District of Massachusetts, the US Attorney for the Southern District of New York, and the US House Oversight Committee. Valeant is under investigation by the SEC in regards to its previous relationship with drug distributor Philidor Rx Services LLC. The Federal Trade Commission is investigating the company’s growing control of the production of rigid gas permeable contact lenses following the acquisition of Paragon Vision Service and a series of unilateral price increases in 2015.
• Employee Retention: Valeant paid out employee bonuses last week, but insiders say employee retention is a concern. The company is an exceptionally challenging place to work for, but savvy investors know Valeant can’t recover without a team of capable leaders.
Also adding to the company’s troubles was the lengthy absence of CEO Mike Pearson, who was on medical leave from last December to the first of March due to a severe case of pneumonia. Howard B. Schiller served as Valeant’s interim chief executive officer, but having the company’s leader missing in action during a time of crisis shook investor confidence. Troubles were compounded when the company was less than forthcoming about the seriousness of Pearson’s condition.
There have been rumors circulating that Valeant’s board has considered firing Pearson, but decided to keep him on to avoid paying out a $200 million severance package. Pearson insists that’s not the case, stating he’d only be entitled to a modest payment for vested stock if the board decided to replace him.
Since his return, Pearson has pledged to focus on “improving Valeant’s reporting procedures, internal controls and transparency.” However, it remains to be seen if Pearson is a strong enough leader to save Valeant from the brink of destruction.
Based in Laval, Quebec, Valeant’s subsidiaries include Bausch & Lomb, Salix Pharmaceuticals, Medicis Pharmaceutical, Solta Medical, Dendreon, OraPharma, and Obagi. Before last year’s regulatory troubles began, the company was considered to be the poster-child for the lucrative model of high-profile takeovers in the pharmaceutical industry.
Update on the Oil Crisis in Canada and Abroad
Update on the Oil Crisis in Canada and Abroad
– Momentum Public Relations –
According to financial prognosticators the recession that recently hit Canada will continue to affect Canadians; particularly those who live in Calgary and Edmonton. For instance, according to the Conference Board of Canada, Edmonton’s economy will contract by an additional 1.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in 2016, while Calgary’s economy is expected to shrink by an additional 1.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year. The continual decline in the two cities economies can be attributed to the decline in the price of oil, and the impact of the steep drop has trickled into other sectors of the economy as well.
Furthermore, job loss numbers are also expected to increase in 2016, as Calgary will suffer from an additional 2.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} loss in employment growth, bringing the overall unemployment rate to 7.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year. Alarmingly, the 7.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} unemployment rate is actually higher than the national average, a figure that Calgary has not hit since 1987. Moreover, the sectors that are expected to get hit the hardest by the steep decline in oil prices are the trade and construction industries respectively.
Residents of Edmonton will also not fare that much better, as unemployment rates are expected to hit 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year; an almost 2 decade high. It should also be noted that the real estate market will also take a subsequent hit from the massive layoffs, as the excess of office space created by all the layoffs will discourage investments in non-residential construction as well as office buildings. De facto, pundits expect a 33{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop in housing starts in Edmonton in 2016, while Calgary can expect a housing start drop of 18{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year.
What’s more, on March 3rd, 2016, Canadian National Resources Ltd reported an 89{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop in quarterly profit ($131 million), due mainly to the steep decline in oil prices. Canadian National Resource Ltd is Canada’s second largest gas and oil producer, and the enterprise is currently projecting capital expenditures ranging from 3.5 to 3.9 billion dollars, in stark comparison to the 4.5 to 5 billion dollar range that they projected in 2015. Annual production values of oil are also expected to drop by 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year in comparison to last year, and the Calgary/Alberta based entity’s share prices dropped to 12 cents per share in Q4 2015, compared to $1.09 per share during the same period in 2014. In sum, Canadian National Resources Ltd reported that revenues fell by 36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to 2.79 billion dollars.
Moving beyond the dire economic situation currently facing Edmonton and Calgary, airplane manufacturing is also expected to take a severe hit from declining oil prices. For instance, airplane retirements for Boeing and Airbus fell to only 28 in Q1 of 2016, compared to 104 in Q1 of 2015. In other words, the decline in oil prices has led to a reduction in demand for more energy efficient aircrafts, because they are currently not seen as a priority from a cost perspective.
Globally, the latest numbers indicate that over one million barrels are being oversupplied every day. That is, the oversupply is being caused by the fact that there are insufficient storage areas to store oil. In fact, the situation has become so dire that some experts are suggesting that pumped oil be stored in swimming pools due to insufficient storage spaces. In addition, oil tankers are also being sent on longer voyages to help reduce tanker pile up debacles at junction ports, as 50 oil tankers are currently remaining stationary in the port of Rotterdam, which is the highest figure being reported since 2009. A similar situation is currently taking place in the United States’ largest oil hub, which is based in Cushing, Oklahoma.
The marked drop in crude oil prices has also forced ExxonMobil to cut its capital spending to only 23 billion this year; a 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} drop from the previous year. Russia has also been hit hard by the oil crisis, as the country is currently trying to recover from its own recession. In fact, automotive sales dropped by 36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} last year, and massive layoffs in plants like the Avtovaz plant in Tolyatti have forced many workers to leave their homes and move in with their parents to make ends meet.
Unfortunately, the global oil crisis is expected to get worse in the future, as many experts believe that the increase in the adoption rates of electric cars will further reduce the demand for gas guzzling vehicles. To learn more about how electric cars can exacerbate the oil crisis please visit here.
- Published in Blog, Business, Energy, Oil and Gas
Trudeau and Obama Strengthen Relationship
Prime Minister Trudeau and President Obama
– Momentum Public Relations –
In the first official visit for a Canadian Prime Minister in 19 years, Prime Minister Justin Trudeau visited US President Barack Obama last week as part of an effort to strengthen ties between the two countries. Environment Minister Catherine McKenna, Fisheries Minister Hunter Tootoo, Defence Minister Harjit Sajjan, Foreign Affairs Minister Stephane Dion, and International Trade Minister Chrystia Freeland, also traveled with Trudeau to meet their Washington counterparts.
When Trudeau arrived in the US, members of the press compared his progressive politics and themes of hope and change to Obama’s 2008 campaign. Obama himself said Trudeau’s time in office would bring “new energy and dynamism not only to Canada but to the relationship between our nations.”
Trudeau showed his appreciation for the First Family with a series of thoughtful gifts. Mr. Obama received an aboriginal statue, Mrs. Obama received a beaded cape, their daughters Sasha and Malia received scarves from an Ottawa designer, and their pet dogs Bo and Sunny received Canadian-made dog boots called “Muttluks.” He also expressed admiration for the President’s accomplishments, stressing that he hoped to learn valuable lessons from Obama’s two terms in office. “He’s somebody with a big heart, but also a big brain. And for me to be able to count on a friend who has lived through many of the things that I’m about to encounter on the political stage, on the international stage, it’s a great comfort to me,” Trudeau said.
Topics discussed during Trudeau’s visit highlighted many of the similarities between the counties.
- Canada is the United States’ largest trading partner and sends over $2 billion of goods and services across the border on a daily basis. As such, both countries have a vested interest in taking steps to liberalize trade and reduce bottlenecks at the border.
- Trudeau and Obama will make it easier to travel between Canada and the United States by setting up customs pre-clearance checkpoints in additional locations. The amount of time it currently takes to go between countries has long been a source of irritation for citizens of both the US and Canada.
- As neighboring Arctic nations, Canada and the United States have agreed to fight climate change by reducing methane emissions reductions by 40-45{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} from 2012 levels by 2025.
- Trudeau and Obama have agreed to fight terrorism and enhance security by sharing more information about each country’s no-fly list, while creating a working group to resolve identity errors on the lists.
Although the talks highlighted many areas of agreement between the two countries, there were some notable differences.
- When discussing the plight of Syrian refugees, Trudeau referred to the 25,000 refugees who had arrived in Canada in the past four months as a “source of strength” for the nation. In comparison, over half of governors in the US are opposed to welcoming refugees into their states.
- The decades old softwood lumber dispute, in which the US believes Canada unfairly subsidized its lumber industry, was promised to be resolved soon — despite both Trudeau and Obama stating that neither side would be likely to get everything they wanted in the final deal.
- The US opposition to the Keystone XL Pipeline on environmental grounds has long been a chilly spot in US-Canada relations, although both Obama and Trudeau expressed interested in working towards “environmental harmony” moving forward.
Trudeau’s visit to the US concluded with a formal State Dinner at the White House. The event was attended by about 200 guests, including Canadian stars such as actors Michael J. Fox, Mike Myers, and Ryan Reynolds. The menu for the black tie affair highlighted American culinary traditions but paid tribute to Canada’s most popular cuisine with poutine, Nanaimo bars, and white chocolate snowballs. Entertainment was provided by the American Youth Philharmonic Orchestra, the Washington Performing Arts Children of the Gospel Choir, and American singer Sara Bareilles.
At the conclusion of his visit, Trudeau told reporters that he’d invited Obama to address Canada’s Parliament later in the year. It’s possible that this visit could coincide with the North American Leaders Summit Canada will host this summer.
- Published in Blog
Target Price for Sirona Biochem (SBM:tsxv) 0.98$
Sirona Biochem (SBM:tsxv) Gets BUY Rating : Target Price CAD 0.98$
– Momentum Public Relations –
Yesterday, First Berlin Equity Research published a research update on Sirona Biochem Corp. (SBM:tsxv). Analyst Ellis Acklin reiterated his BUY rating and increased the price target from CAD 0.90 to CAD 0.98.
This is an abbreviated summary. The full text of this story (including disclosure) is included below.
Abstract:
Sirona Biochem Corp. (Sirona) published annual results for the year ended 31 October 2015. Results were largely in line with our forecasts. The company continues to communicate confidence in the signing of a new agreement for its promising skin lightening treatment TFC-1067. We see this as a potential watershed event for the company. Potential upfront, milestone and royalty payments harbour significant upside for Sirona once a deal is sealed. After recalibrating our forecasts and model, we raise our price target to C$0.98 (previously: C$0.90) and reiterate our Buy rating.
Financial Forecasts: |
2013 |
2014 |
2015 |
2016E |
2017E |
2018E |
Revenue (CADm) |
0.00 |
0.21 |
0.01 |
0.38 |
8.79 |
21.45 |
EBIT (CADm) |
-2.64 |
-3.48 |
-3.48 |
-3.20 |
5.13 |
17.69 |
EPS (diluted) (CAD) |
-0.03 |
-0.03 |
-0.03 |
-0.01 |
0.02 |
0.07 |
FCF (CADm) |
-2.62 |
-2.09 |
-3.18 |
-2.88 |
2.76 |
10.88 |
http://www.slideshare.net/MomentumPR/first-berlin-equity-research-sbmtsxv
- Published in Blog, Life Sciences, Sirona Biochem
A Big year for the Annual PDAC Convention in Toronto
A Big Year for the Annual PDAC Convention in Toronto
– Momentum Public Relations – Stephanie Boucher
Today marked the last day of the PDAC Convention 2016. The four-day international event is the world’s leading convention for people, companies and organizations in mineral exploration. Hosted yearly in Toronto, the convention brings together 1,000 exhibitors and over 23,000 attendees from around the world. In addition to the conference, attendees could also take part in an exciting lineup or programs, including short courses, technical sessions, corporate presentations, investor exchange, a trade show and social networking events.
Because of its size, the convention is the place where players in the mining industry come to do business, find jobs or investment opportunities. The internationally renown event attracts executives, government officials, prospectors, analysts, investors and brokers from all over the world, with attendees from the United States, Australia, Peru, Mexico, Argentina, Chile and South Africa, to name a few, which represents more countries in attendance than at the 2015 Toronto Pan Am Games and the 2010 Vancouver Olympics. “It is an iconic event for the city of Toronto that provides huge tourism opportunities and injects upwards of $60 million each year into the local economy,” said Rod Thomas, president of PDAC.
This represents such an important event for the city that the Toronto Stock Exchange and the TSX Venture Exchange opened and closed the markets from the floor of the PDAC Convention. Delegations from around the world were invited to open and close the market every day. Other notable highlights included a De Beers Canadian diamond display and the Royal Canadian Mint celebrating their 100-year anniversary by introducing new proprietary anti-counterfeiting technology. Visually stunning-minerals from the Kirwin Collection from the Royal Ontario Museum were also displayed at the convention’s trade show, open to the public.
The yearly event also serves as a meeting place for experts within the industry. “It’s a huge networking opportunity,” said Rod Thomas, president of PDAC. “It’s the one time of year when people in the industry can count on seeing all their colleagues from around the world, face to face, and a lot of deals get done as a result.”
This year, the convention had reasons to celebrate. Unlike in previous years, the metal market prices are no longer falling, and share values in many sectors have been climbing since January. Even the junior gold market is showing strength amid some market turmoil. After years of industry decline, there was a sense of optimism at the PDAC Convention, which moves in tandem with industry trends. “We’ve started to see a little light at the end of the tunnel. There’s optimism there, and I haven’t felt that for the past three years,” added Thomas.
About PDAC
Established in 1932 in response to proposed government regulation, the Prospectors and Developers Association of Canada (PDAC) represents the Canadian mineral exploration and development Industry. Today, the national organization has over 7,000 individual members and over 1,000 corporate members. The PDAC strives to promote a responsible, vibrant and sustainable Canadian mineral exploration and development sector. They encourage leading practices in technical, environmental, safety and social performance in Canada and internationally. During the convention, PDAC elected eight new members to its board of directors.
Kevin O’Leary says Canadian Stocks are a Good Buy
Kevin O’Leary Shows His Patriotism by Advocating Investment in Canadian Stocks
– Momentum Public Relations –
Kevin O’Leary, co-founder and chairman of O’Leary Funds, is one of Canada’s most respected investors and financial commentators. He came from humble middle class beginnings, but built a company which he sold for more than $4 billion dollars. O’Leary has long shunned the Toronto Stock Exchange in favor of the more diversified S&P 500, but it appears he has suddenly gotten in touch with his patriotic side.
O’Leary is the father of two children, Savannah, 22, and Trevor, 19. He’s always been open with his kids about money, offering regular advice on financial responsibility as well as sound investment tips. His most recent tip was for both his son and daughter to keep 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of their portfolios in Canadian stocks and 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in dividend paying S&P with 10 sectors of diversification. If you’re looking for the right mix of investments in your Tax Free Savings Account, O’Leary advises you to do the same.
In the February 12 episode of Ask O’Leary on BNN, O’Leary told a caller, “The TSX has been crushed because of the energy and energy service sector. I think we’re getting near the eighth or ninth inning of that decline. I’m very bullish should we get our acts together. In other words, hopefully there will be a pipeline announcement in the near future.”
Describing himself as an optimist, O’Leary called Canada a “good buy” for savvy investors at the moment. However, he advised the caller to wait a few weeks until the budget comes out. If the government issues a budget with a deficit of over $30 billion, O’Leary says he’ll withdraw with advice and personally exit Canada in terms of investments. Claiming an added budget deficit would be proof the government doesn’t know what it’s doing, O’Leary said he wanted to wait and see what lawmakers would do before speculating further.
This tidbit was only one of several interesting investment tips O’Leary has offered in the last month. Highlights from recent episodes of Ask O’Leary include:
- O’Leary publicly praised Canadian banks by saying Canada’s intense fiscal regulations made for tightly managed financial institutions, offering extra protection for investors. In fact, he went as far to call them the “best managed financial institutions on the globe” in today’s economy.
- When asked what advice he’d offer for investors debating the merits of Canadian banks versus American banks, O’Leary recommended callers stick to Canadian banks after pointing out the unfavorable nature of the currency conversion. The Canadian dollar closed at 71.77 cents on February 10, a substantial drop from its high of 105.95 in July 2011. Yet, O’Leary remains convinced the loonie is near the end of its struggle and will eventually bounce back stronger than ever.
- For those interested in investing in rental properties, O’Leary said the best investment is pay down the mortgage on the property as soon as possible. Using the income to reduce the debt guarantees increasing returns on the building as the debt gets paid off. Relaying a story about an immigrant couple who only ate pasta while struggling to pay off their first investment property mortgage, he told the caller, “Get rid of debt so you don’t have to eat beans.”
O’Leary has also been in the news due to his recent announcement that he is interested in running for the leadership of the Conservative Party of Canada. Stating that he had been inspired by Donald Trump’s campaign for President in the United States, O’Leary created further political controversy when he offered to invest $1 million in the economy of Alberta in exchange for Premier Rachel Notley’s resignation.
Is it Time to Buy Junior Gold?
Higher Gold Prices = Big Potential in Junior Gold Stocks
-Momentum Public Relations-
The recent surge in gold prices is being noticed by investors. So far this year, gold pricing has moved upwards by approximately 20 percent. This surge has resulted in a buying spree of gold exchange-traded-funds (ETF) and some upward movement in share prices for a variety of gold mining concerns.
BNN – Gold No Longer the Skunk at the Picnic Says Industry Veteran
The big question is; how will the recent surge in prices impact the prospects of junior gold mining companies?
MARKET CONDITIONS:
Current market realities are providing favorable conditions for gold prices to advance further. The external conditions are certainly favorable given many relatively weak major currencies, low oil prices, low returns on mainstream investments, and general sluggishness of the global economy. Historically, gold prices rise when currency falls and vice-versa. The balancing variable lies with prevailing interest rates. When interest rates rise investors are attracted to the yield and hesitate to hold, store and insure a commodity like gold.
Major stock indexes worldwide have declined, despite efforts by the various central banks to spur growth through lower interest rates. Back in 2011, stocks looked much more stable and appeared to be in full recovery from the declines of 2008 and 2009. In 2013, the Federal Reserve in the US signaled that the era of low-interest rates was ending, and investors moved away from gold.
GOLD – HISTORICAL PRICES:
Gold has experienced substantial price growth in the past 15 years, even when post-2011 declines are considered (see chart below). A few weeks ago, gold rose above its 200-day moving average of $1,130 per ounce and questions are being raised about the potential for further price growth that could mirror the rally that peaked at over USD$1,900 per ounce in 2011.
http://www.cnbc.com/2016/02/16/gold-snaps-losing-streak-rises-above-1200-as-stocks-steady.html
The fact that prices have moved up by 15 to 20 percent so far this year suggests that a sustainable price level of $1,300 to $1,400 per ounce is realistic within the next 12 months. It is entirely possible that the pace of the increases this year may leave the commodity vulnerable to profit-taking which could moderate overall gains. Most market observers believe that the perception of the safety of gold as an investment has returned and that investors who bought in 2012 or 2013 will stand to profit from the rising price of bullion.
IMPACT ON JUNIOR MINING SECTOR:
The current price of gold may cause some understandable optimism in the junior mining sector. However, it is important to underline that the usual business fundamentals still apply. Wise investors will continue to avoid being caught up in pricing euphoria and look at key metrics to assess the viability of each opportunity.
Mining companies with significant extraction operations will benefit in a big way from lower energy costs. However, energy cost savings is likely a temporary windfall. One important consideration is the fact that, if gold prices rise, or stabilize close to current levels, a mining operation with a fully loaded cost of extraction of USD$1,200 per ounce will become a cash-positive proposition in the short-term.
What factors could guide investors? We suggest consideration of two “rules”.
RULE #1: Assets & Grades
Investors still need to monitor the value of a gold producer’s assets project by project. There is no substitute for due diligence in examining the grade of the ore that is being produced and following company updates. Grades that are sufficiently high and can produce good margins at USD$800 to USD$1,000 pit shell will result in positive cashflows in the present market. By using the very conservative “pit shell method” to calculate returns, the scrutiny is on the mine’s engineering plan and not on statements by promoters.
RULE #2: PCM
The rule of PCM highlights three additional elements to consider when assessing the hundreds of junior gold plays as investment opportunities.. The three elements are people, cash, and margin.
Simply put, this means that there is no substitute for the careful assessment of the people who are involved in the venture and their experience, integrity, and expertise. Also, companies need to have enough available cash to sustain their CapEx in the face of short-term price volatility. If they do not have cash they can be put out of business quickly by a market correction or an unforeseen production challenge. Lastly, junior mining concerns that own some higher margin operations will have greater functional flexibility. When prices rise, higher cost operations can be developed while lower cost mines can provide a source of funds to balance the CapEx requirements for more speculative ventures.
- Published in Blog, Equitas Resources, Mining
More Exciting News from International Wastewater Systems!
More Exciting News from International Wastewater Systems!
– Momentum Public Relations –
“The future belongs to countries and businesses that become leaders of clean technologies, innovation, and sustainability. Canada is building the partnerships and making the investments necessary to take advantage of the growing opportunities in these markets,”
– Honourable Justin Trudeau, Prime Minister of Canada.
International Wastewater Systems (IWS:CSE) is leading the way in the area of reusing energy and lowering Co2 emissions with its proprietary technology that recaptures heat in waste water. The technology is so versatile that virtually any facility could make use of it. And, the exciting news is, the IWS solution is accessible, cost-effective, renewable and fully commercialized. It is an outstanding concept that is available today – not at some undefined point in the future.
The IWS team will exhibit and speak at this year’s GLOBE Conference & Innovation Expo March 2-4, 2016 in Vancouver, BC. IWS CEO, Lynn Mueller, will be present at the conference on Friday, March 4th at 10:20 AM.
The impressive list of speakers at the conference includes a “who’s who” of government federal, provincial and municipal politicians, business leaders from a variety of sectors and subject matter experts from industry and academia. It is quite significant that the Right Honourable Justin Trudeau, Prime Minister of Canada, will be delivering the conference’s keynote address.
Globe is North America’s largest and longest-running conference and exposition series dedicated to business innovation for the planet. It features opportunities to share ideas about world-leading sustainability and provides a forum for relationship building to fuel business development. Every two years, leaders attend the conference to devise winning strategies to conserve resources, ignite innovation, and develop ideas and partnerships that help them be more resilient, more efficient, and reduce risk.
The efforts of International Wastewater Systems are being recognized around the world. The company was honored in January 2016 when The Piranha was selected as the product of the year at the 2016 AHR Innovation Awards in the Green Building Category. The award was judged by a panel of third-party judges from ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) who evaluated all award entries based on innovative design, creativity, application value and market impact.
For more information on International Wastewater Systems, please click on the link to view the short video presentation:
There is an unparalleled international consensus of the need for strategies to reduce the carbon footprint in developed and developing nations. We all agree that the future of the planet is at stake. IWS has developed technology that addresses a hidden source of lost energy and turns it into a way to reduce the use of fossil fuels for heating and cooling. In many of our homes and buildings, large quantities of heat in water from showers and cleaning is discarded. Typically, water enters a building at 7-9 degrees Celsius and leaves, into the sewer system, at 20-25 degrees Celsius. The energy from this water is discarded as it dissipates.
The IWS solution captures the wastewater at its point of exit and removes solids. It then extracts the heat from the waste water in a closed system allowing the energy to be recycled. When captured, this energy is transferred to clean water with no risk of cross-contamination and then the energy is reused to heat or cool the building.
Capturing wasted heat is more cost efficient than installing new methods of energy generation. Depending on the scope of the installation, the payback from recycling wasted energy averages 3-5 years making it more attractive than new installations of solar or wind energy.
The future of our planet may depend upon the extent to which countries and large stakeholders collaborate in the effort to reduce Co2 emissions. Prime Ministers and business leaders are using a forum like the Globe conference to move the agenda forward in meaningful ways. The investment community is responding to this global opportunity. IWS provides savvy investors with proven, fully operational technologies that are becoming drivers of the emerging economy.
- Published in Blog, Green Technology, Technology