Market Talk
So, there is a peace agreement on the table between the U.S. and Iran involving the Strait being opened (with no tolls) as more details are ironed out over the next sixty days.
Regardless of how anybody "feels" about it, the markets have no feelings. Stocks react to changing expectations and evolving projections.
Today, we see the market rallying as energy stocks fade somewhat on hopes of lower oil and gas prices ahead. If so, easing energy inflation could provide a tailwind for many sectors.
Will this optimism last? That remains to be seen.
Hostilities could resume if the Islamic Revolutionary Guard Corps (IRGC), Hezbollah, Israel, or others decide differently. For now, however, the market appears willing to take the peace discussions at face value and is responding as though the risk of broader conflict has eased.
Stock Talk
The Jones Report has followed a few miners since they traded in the single digits and have since doubled and more. Specifically, Kinross Gold (KGC) and Hecla Mining (HL).
It may be time to revisit the story.
When gold and silver prices fade a bit, mining shares often trade off as though the entire story has changed overnight. Yet recent earnings reports suggest the underlying businesses remain quite healthy.
KGC has reported strong earnings and briefly traded into the 40s before profit taking, sector rotation, and concerns surrounding the Iran conflict contributed to a correction in the mining sector. Today, shares appear to be bouncing from the mid-20s.
Meanwhile, Hecla Mining recently eliminated its long-term debt following the sale of an aging Canadian mine. Management has shifted its focus toward silver and gold projects near existing operations in the United States. Hecla remains the largest silver miner in America.
One factor that appears to have weighed on mining shares is concern over rising oil and gas prices. Mining is an energy-intensive business, and higher fuel costs can impact profits. Perhaps after their corrections, both KGC and HL are due for a bounce. We shall see.
Watching KGC and HL.
Keeping in mind the notion of watching developing stories, it may also be time to put another name on the radar.
Talon Metals (TLOFF).
The stock trades under $5 and, unlike KGC and HL, the story revolves around nickel and copper.
Recently, Talon acquired the Eagle Mine along with the Humboldt processing facility in Michigan.
That changes the story.
The company now has an operating U.S. nickel and copper mine, a processing facility, and recently turned the corner to positive earnings.
From power grids and data centers to industrial equipment, military systems, electronics, batteries and transportation, nickel and copper remain essential materials in the modern economy.
A profitable miner with strategic resources in the United States trading under $5 has caught the attention of some investors.
TLOFF is a developing story and an interesting stock to put on the radar.
As a closing note, strategic resources within the United States are increasingly being viewed as a cornerstone of national strength, a point that appears to be receiving renewed attention.
Stay tuned. Stay watchful.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
ALL in my humble opinion, scroll down and read more. This site does NOT make Buy / Sell recommendations.
