UK Stockmarket 2009 and beyond

Shatners_Bassoon

Rumour today regarding RRL and Marauder (TSX listed junior oil) who already own Puntland offshore licenses with huge reserves and prospects. If RRL can pull off a nice percentage for part of the farm-in the PL will play a blinder as he has with his recent investments in Morocco.

I think anytime now we can get a nice turnaround and change in sentiment towards some of these Junior Oils.

XTR moved 15% today so I would not leave it too late to get in ahead of this Chevron backed drill in the North Sea. Find oil there and if it's connected to LeadA as they say then very good things will happen to XTR.

ORE is definitely a high risk punt but there is a very big interest in them and the company (REO) who own the neighbouring copper mines.

See the following article for some info about how positive the story is.

web interview of Byron King (Energy and Scarcity and Outstanding Investments Editor) by the Gold Report (TGR)

TGR: Are there other precious metals names you could share with our readers?

BK: I just spent a week in Serbia, looking at a company I've followed for a year and a half now called Reservoir Capital Corp. (TSX.V:REO). Reservoir is several different things wrapped up in one company. It's an energy play in terms of hydropower development. But it also controls significant land position in the Balkans, next to what was once the largest copper mine in Europe. Reservoir is spinning off its mineral side into a group called Reservoir Minerals. Right now the way to play it is to buy Reservoir stock until they spin off Reservoir Minerals.

Reservoir has a 20-square-mile position over a known copper district adjacent to a place called Bor, an old mining town in Serbia. Nearby, it has a very strong land position in a historic gold mining district called Deli Jovan. This was the home of several historic gold mines from the early 1900s through the late 1930s. The old, Serbian gold mining company stopped gold mining not because it ran out of gold, but because it ran out of time when World War II came along. It sealed up the mines and the former Yugoslavian government never reopened them. It wasn't part of the five-year plan. Just last week I saw some of the operations. Reservoir and its subsidiary, Reservoir Minerals, have a strong copper and gold development future.

TGR: Are there any ownership security risk in Serbia?

BK: Serbia is a poorly understood place. But, it's working very hard to achieve EU membership and with that comes the legal obligations of having a property system and a title system that meets EU standards.

In terms of legal, claim and title security, the Reservoir people have a very strong relationship with the Serbian government. As an example, Reservoir arranged a meeting with the Serbian Prime Minister for me and a couple of other Reservoir investors. Management has a good relationship with the government.

TGR: Three visits in a year seems like a lot. What's behind that?

BK: The first visit was to see things. The second time I was invited by Serbia's Minister of Energy to speak at an energy conference in Belgrade. While I was there I went out to see other things that I hadn't seen or hadn't seen enough of the first time around. The third time I led a group of Energy and Scarcity Investor readers to show them what is going on and let them make up their own minds.

TGR: Will the gold assets be rolled into Reservoir Minerals or will they be in another company?

BK: Currently, they are part of Reservoir Minerals. How things will play out is still a bit of an open book. The copper is being developed in cooperation with Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Freeport has a huge drilling program going on right now; in fact, the drilling rigs were on site last week during our visit. Reservoir has another joint venture on the gold mining side, with a London-listed company called Orogen Gold Ltd. (LSE:ORE). It's a bunch of Irish guys who understand gold mining in this kind of geology.

TGR: Is it part of a greenstone belt?

BK: It's right at the edge of a mineralized Paleozoic gabbro complex. Geologically it's good, solid hard-rock mining. It's right up the alley of these Orogen guys.

TGR: It would probably be very amenable to high gold recoveries.

BK: There's a lot of very good data, so far. You know the old expression, "The best place to build a mine is next to another mine." Well, this place has historical gold production from about 1904 until World War II. In its day, the Deli Jovan gold mines made Serbia one of the wealthiest countries in Europe. By the 1910s, the Kingdom of Serbia was so rich that it made the Austro-Hungarian and the Turkish Empires jealous, which had a lot to do with the origins of World War I. Historically it's a very rich place. Some of the assays from the old historical data on the Deli Jovan mine are up to 200 g/t.

http://www.theaureport.com/pub/na/10219

JamesU

sabretoothtigger wrote: »

I see JamesU on the challenge site at #9

Not any more, position #9 taken today by: dah, dah.... Monkey With a Pin. _pale_

JamesU

sabretoothtigger

You went up two places, how is this possible. You got a winning strategy there, nice shorts balancing you out. I almost never think of any

I already said GKP I would have taken profits but not an option on this comp hence its difficulty. Zen is a never ending disaster, they will run out of cash in 2012 most likely but I still like them as a classic underdog too much commodities, should have shorted Barc I thought 215 was a sell but you never can tell

RRL could chime in with a gusher that'd help. I thought Punt would have yielded some news by now but typical that AIM stocks are infuriatingly slow to do anything

CSR looks interesting but Ive never heard of them, with a dividend also I see :beer:

worldtraveller

The London market's longest losing streak in nine years looked set to continue after fresh eurozone debt fears eroded confidence.

The FTSE 100 Index lost earlier gains to slip 31 points to 5109 after Portugal's credit rating was slashed to junk status and German chancellor Angela Merkel reiterated her opposition to eurobonds.

London's blue chip shares index is on course to close in negative territory for its ninth session in a row, which would equal its longest losing streak since January 2003.

PA

Ended down 12.21 (0.24%) at 5127.57

JamesU

worldtraveller wrote: »

The London market's longest losing streak in nine years looked set to continue after fresh eurozone debt fears eroded confidence.

Also useful to see other EU indices compared to FTSE 100 at present:



Impact of political procrastination on EU here:



And an interesting perspective from Georgie (Soros) on how Angie might help save the Eurozone here:

http://www.georgesoros.com/articles-essays/entry/my_seven_point_plan_to_save_the_eurozone/


JamesU

Ark_Welder

JamesU wrote: »

And an interesting perspective from Georgie (Soros) on how Angie might help save the Eurozone here:

JamesU

An alternative (psychic?) perspective from The Rolling Stones in 1973:

Angie, Angie, when will those clouds all disappear?
Angie, Angie, where will it lead us from here?
With no loving in our souls and no money in our coats
You can't say we're satisfied

(sorry...! )

JoeCrystal

Thanks for the chart. I thought Footsie was doing badly but not bad as compared to rest of the European stock exchanges!

Cheers

Joe

gadgetmind

JoeCrystal wrote: »

Thanks for the chart. I thought Footsie was doing badly but not bad as compared to rest of the European stock exchanges!

Hmmm.

I'm currently looking at the split for a new SIPP investment, and was going to overweight UK (lower currency risk and high global exposure anyway), pacific and EM.

Perhaps the old "buy low" principle suggests overweight in Europe? How has the US S&P performed alongside these other indexes?

JamesU

gadgetmind wrote: »

Hmmm. I'm currently looking at the split for a new SIPP investment, and was going to overweight UK (lower currency risk and high global exposure anyway), pacific and EM. Perhaps the old "buy low" principle suggests overweight in Europe? How has the US S&P performed alongside these other indexes?

Not sure about buy low principle, its all relative really. But using say an HSBC trackie approach, "rebalancing" an allocation between S+P 500 and EU and Pacific sounds logical.



But maybe chart and analyse over longer time frames also e.g note Japan over one year as opposed to six months.



JamesU

gadgetmind

I still can't think of any reason to over-weight US (tracks FTSE very closely) or Japan (exposure for me via Ruffer). Pacific and EM seem worth a conviction over-weight, and Europe ... dunno. It looks like value but feels like walking on eggs, albeit perfectly-sized and carefully-graded eggs bearing information on country of origin and date of laying.