Market Alert – Rumblings Up, Down, and All Over Wall Street by RAY DIRKS Research in association with the International Web Sites – www.CorporateProfile.com and www.CPreports.com, where Fashion Meets Finance, and where Stocks Meet Blonds – this is Issue # XLVIII dated April 15, 2012.
“A Golden Opportunity” is the title of this week’s “Up & Down Wall Street” column in Barron’s, the Dow Jones Business and Financial Weekly. Our old friend Alan Abelson, the author of the column, is right about the Opportunity, but generally wrong about where it is – Alan writes that he’s not ready to ring the bell on the equity rally, where Ray Dirks and his team of Money Managers and Security Analysts think Our Readers should Place their money now – because we continue to be convinced that the Stock Market will Advance Sharply over the Next 6 to 12 Months.
Alan’s “Golden Opportunity” is in Gold Mining Shares, , but as he writes in Monday’s column, “All that’s gold doesn’t glisten. That melancholy assay applies in particular to the shares of companies that mine the precious stuff. While bullion has taken its lumps this year, it’s still up something like 18% over the past 12 months. In sorry contrast, the mining shares, which had a relatively brief upswing, have been marked down sharply, and investors’ seemingly only interest in the group is to sell whatever stray nuggets they still happen to possess.”
Alan goes on to quote “ a couple of savvy investment pros – Alan Newman…of the unfailingly valuable market commentary Crosscurrents, and Darren Pollock, a seasoned risk-conscious portfolio manager and principal of Cheviot Value Management, which calls Santa Monica, Calif., home.”. Both of them prefer gold over stocks, but prefer gold stocks over the bullion itself. Darren suggests that investors consider Market Vector Gold Miners (ticker: GDX), an ETF encompassing the major miners.
Well, we agree with Alan and his experts that Gold Stocks are a better buy than an investment in Pure Gold, but it’s our strong opinion that the Best Gold Play in the world right now is Arabian American Development (ARSD-nyse) at $10.32, which was listed this month on the New York Stock Exchange. ARSD overcame the BAD LUCK SYNDROME on Friday, April 13th by rising 77 cents, up 8 %. !!!!! Arabian American Development is a long-term favorite of RAY DIRKS Research – We have recommended it several times in previous issues of Rumblings on Wall Street.
What’s really exciting about Arabian American Development is that it’s the only big publicly-traded gold play in Saudi Arabia, and after several years of geological assays and testing, the drilling for gold, silver, copper, zinc, and molybdenum will begin within the next 60 days. RAY DIRKS Research thinks that the mine will be profitable before the end of this year. Furthermore, the Saudis own 30% of the shares in the mine – by agreement with ARSD – and under the laws of Saudi Arabia, when profitability is attained for a 2-year period, that entity must be traded on the Saudi stock exchange. In our opinion, the remaining 70% owned by ARSD will add $1.00 to $2.00 to the earnings per share of ARSD, which already has a very profitable and rapidly growing petrochemical facility in Texas. ! And don’t forget – this gold mine is the old King Solomon’s Mines of Biblical fame ! Moreover, the ARSD is exploring adjacent areas in Saudi Arabia for other, possibly related, gold plays. !
The poorest-performing sector in the Stock Market this year is the Mining and Metals sector, which has been affected by the decline in commodities prices. Yet one area stands out – if not today – probably tomorrow – and that’s Lithium. The Lithium Brine Industry offers investors an outstanding opportunity because of the rapid acceleration in the demand for this product worldwide as outlined in the RAY DIRKS Research report on Lithium Exploration Group (LEXG) dated March 23, 2012.
Since that LEXG report, there have been several important news items about successful developments on the company, which culminated on Thursday, April 12th when Lithium Exploration Group (LEXG) at 70 cents announced that it has begun the initial testing of its ultrasonic generator in Pennsylvania. The testing started on April 12th and will run for the course of 10 days. The goal of the 10-day test is to operate all of the components together, bringing the generator to optimal speed and pressure to harness the cavitation and produce steam, and identifying the optimal settings for all of the stages of the unit. At the end of the ten-day test the company will provide data on the testing program on their website and via social media channels and will provide a video showing the actual testing process and featuring interviews with key stakeholders about the generator.
The CEO of LEXG , whom we met recently, said, “This is an exciting step for our company and our shareholders. These initial tests will give us the validation that (a) this unit produces cavitation and (b) we can harness that energy to produce the required heat allowing us to separate suspended solids from water. We look forward to sharing the successes we achieve along the way in upcoming announcements.”
Lithium Exploration Group is a US – based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on its Western Canada and South American properties. LEXG is a fully-reporting company traded on the OTCBB . Website : www.lithiumexplorationgroup.com.
Readers should take advantage of the current short-term sell-off in the Stock Market to buy ARSD, LEXG, and other common stocks we have been recommending in recent Rumblings issues, such as Hartford Financial Services Group (HIG-nyse) at $20.15, AFLAC (AFL-nyse) at $42.88, Neuralstem (CUR-amex) at $1.08, Pluristem Therapeutics-nasdaq) at $2.19, Medgenics (MDGN-amex) at $4.85, Flamel Technologies (FLML-nasdaq) at $5.23, Implant Sciences (IMSC-pink sheets) at 91 cents, IntelliCell BioSciences (SVFC-pink sheets) at $1.10, Cover-All Technologies (COVR-amex) at $2.08, and Vringo (VRNG-amex) at $3.50.
So there – dear Readers – You have a Delicious Dozen of Stocks to buy now for Short Term and Long Term Capital Appreciation!
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