NOW TRENDING Recovery of Platinum Group Metals and Chrome picking up !

------------------------------------------------------ UPDATES : -              My specialist lists for September,see side bar   and summer...

About Me

Retired but always looking for new challenges.

Tuesday, December 1, 2009

News Update

  Anything to do with steel in any form and that includes chrome,manganese,iron ore and certain coal source should now benefit from the increasing DEMAND for coal, as we are not properly out of the recession yet and the ride is likely to be bumpy but mainly thanks to CHINA THE DEMAND IS INCREASING.CHINA HAS KEPT THE DEMAND STEADY OF LATE AS THEIR CONTRIBUTION TO RESTORING  FAITH IN THE MOST IMPORTANT COUNTRIES IN THE WORLD.A NOVEL APPROACH, probably better  than throwing money at the problem as the West has favoured,best to stick to the largest companies when buying shares in these sectors as the small companies had to borrow heavily and have a mountain of debt to pay off before they can start to show a profit again.


  I have just updated the INSTALLMENT CLUBS  news letter on our site  http://www.barryvision.webs.com/

4/Dec/2009
" Become a possibilitarian.No matter how dark things are,or seem to be,raise your sights and see the possibilities-always see them for they are always there" -Norman Vincent Peale

  Platinum has started to show a remarkable recovery in the price of all the platinum group metals (PGMs).
Although as the recovery from the recession is still in the  first stages ,the prices are moving steadily up.Taking platinum itself as an example .At its height early in 2008 the price was over US $2200 per ounce.
  It fell rapidly over a peiod of six months to around US$ 800 and has subsequently been picking up preceding demand and now stands around US $1400 and showing signs of going higher,
The platinum shares don't always respond  immediately to a change in the PGM prices,as the South African exchange rate to the US Dollar also plays a part.

  The main reason that capital gain is not truly reflected in the price, is that platinum shares always payed fat dividends and that was slashed by around 75% in many cases which sent a shock wave through the market ,as many relied on this type of dividend for their livleyhood.These kinds of investors will only return when they have forgotten their jittery nerves and good dividends are being payed again.

  At the moment the major share most benefitting is ANGLOPLAT, which is the top PGM in the world..It is coming up for its FINAL DIVIDEND AROUND  MARCH.A couple of months ago we all thought there would be no dividend,but in my opinion should think they would pay a dividend this time even if very modest.It has been suggested of late that Anglo American refinance Amplats to fast track its resumption of dividend paying.
  Other companies worth watching are IMPLATS  and LONMIN, GO TO MY WEBSITE TO SEE  A HOST OF SMALLER EXPLORATION AND OPERATIONAL COMPANIES MOSTLY STILL IN THE RAMP UP STAGES all needing more capital unfortunately.

  Platinum,s main uses are for catalytic convertors on motor vechicles and also very exciting fuel cell technology.When fuel cell tech, was first announced platinum prices took a knock,how ever soon picked up again when it was pointed out that the platinum producers payed for most of the research to date.

  SASOL has not done very well of late ,what with its clash with the European  competitions competitions tribunal over candles of all things a case which resulted in a hefty fine.Unfairly I think as their firms were equally guilty and most just got a slap on their wrists.Talk of favouring the home companies.Be that as it may the falling pretroleum prices and the recession also had its effect.
  Now the positive news,South Africans technology improved the original German method of producing oil from coal into the worlds leading producer of this kind of energy and of course all the range of products that flow there from,from plastics to chemicals.  I feel that SASOL is about to start the long road of recovery and that will increase its dividends probably reaching its former heights in a couple of years.
  In my opinion only, now running , AMS, AGL,BIL
 In my opinion  only, now about to run SOL,ACL