Posts Tagged ‘stocks’

Day Trading Stock Picks & Tips > 2009 Hot Stock List .. Daily Stocks to Watch

Saturday, January 10th, 2009

By.- http://www.MomentumStockPick.com

The stock market should present you with a wide variety of NEW hot stocks in 2009. Many of them are going to be new technology stocks that come from the nanotech, biotech, financial, energy, healthcare & communications sectors.

Most of them might seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That`s why it`s very important to know how to choose among the best especially if you want to day trade them.

When you know how to pick and approach the best hot stock trading opportunities, you are able to generate a consistent and respectable amount of money in a very short period of time.

Experienced day traders recognize that trading hot stocks on momentum can be the fastest way to make money in the stock market.

You don`t necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities for going long or for shorting them to make money when they are poised to fall down.

If You decide to day trade stocks just keep always in mind that for a trader to survive and be consistently profitable, its necessary to keep things as simple as possible. To much confusion and technical indicators will most of the time make you slow in your decisions and froze you up when a good opportunity is right in front of your screen.

In the end, stock market day trading is all about picking the best daily stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

Momentum Stock Pick helps day traders & investors choose stock trading opportunities in a practical way every day at http://www.MomentumStockPick.com

Should you Choose Stocks or Mutual Funds?

Tuesday, December 23rd, 2008

If you are a first time investor, all these financial and investing terms can be intimidating. If you don`t understand what they mean, you can`t understand what you are getting into. Maybe you`ve done a little research and reading and you`ve settled on two basic investment ideas, stocks and mutual funds. Which should you choose?

First of all, you must understand that mutual funds are separate securities like stocks and bonds. A mutual fund is a collection of stocks and/ or bonds or other securities. With stocks, you decide you want to buy a few shares and then you are a shareholder in that company. With mutual funds, you buy a few shares of a mutual fund and own stocks and bonds of many different companies.

If you are a complete beginner to investing and you are only looking to invest to earn more on your money, you are probably looking for something easy. Investing in stocks isn`t necessarily easy. It actually takes a lot of work. If you really want to make good money from investing in stocks, you have to put in the time. First, you have to learn about stock investing. This takes a lot of reading and studying to develop a strategy. You will also have to research companies well before buying their stock to ensure you are making a good investment.

If you have a passion for stocks, I say go for it. If you know what you are doing, you can make a lot of money. Just make sure you put in the time and effort. Do your research and you could possible earn more than the average. Also keep in mind that sometimes your stocks will go down. It is not because you`re bad at choosing stocks or because you didn`t research enough, it is because no stocks are predictable.

If you are a beginner, you don`t have a passion for stocks, and you just wanted to earn the highest consistent return you can, I suggest investing in mutual funds. All you have to do is find a fund that you like and let the money manager take care of the rest. Keep an eye on it and compare it to other funds often to make sure you made a good choice, but overall, this is the easiest way to go.

Whatever type of investment you choose, make sure you invest. It is an incredibly rewarding step to take. You might not be too excited now, but when you have wealth somewhere down the road, you will be happy you did.
If you want to know more about stock buyingand the basics of stock investing, go to StockInvestingMadeEasy.infofor more information.

Day Trading for Beginners > Time to Buy Cheap Stocks .. How to buy low SELL HIGH ?

Tuesday, December 23rd, 2008

By.- http://www.MomentumStockPick.com

A beginner usually feels very attracted to the stock market while for example discovering a stock that`s being reported in CNBC or the news program and watching it rise steady fast and make new highs from $10 to $70 in just 2 months.

While learning about this successful news story he`s saying to himself “Oh boy if I was one of those lucky guys who bought that stock back when it was priced at $10 I easily would have tripled my money by now… That means my 10 grand would transformed in to a whooping 70 K! hassle free … I would have been able to grab one of those big HUMMERs on the spot and probably pick up a nice Rolex by the way!”

The stock market news constantly reports of hot stocks that are breaking out and making tremendous gains on the same day or doubling in price in just a few hours. Back in the bull market of the late 90`s you could easily see a good number of hot stocks sprouting out every week.

Those years surely made it look like every body could easily take LONG SHOTS and make a shiny pile of gold every day in the stock market. But today`s market is a different story. A totally different animal.

Some say that the stock market has gotten more realistic. Fantasy land is over and GAMBLING YOUR WAY TO RICHES is not an option anymore. You might get lucky a few times, but your constant loses can wipe you out sooner or later.

The fact that the bull market period has ended for now doesn`t mean that you can`t make a great deal of money in today`s market. A lot folks from many walks of life keep making excellent profits on a daily basis, pocketing hundreds & thousands of dollars by trading stocks online.

Success in stock trading starts by applying a wiser and REALISTIC methodology for choosing hot stocks as well as for getting in and out of them with profits in mind.

You need to look at the stock market more realistically. You got to learn that you can benefit when stocks go up and also when they FALL down.

You got to WORK SMARTER and get more selective about the hot stock trading opportunities that you choose. You need to embrace the nature of day trading and be fully prepared to take advantage of stocks that are poised for a BIG RISE on the same day.

The bottom line is you have to PREPARE YOUR SELF to be successful, just like you would do it in other areas of your life in order to achieve success.

Momentum Stock Pick helps day traders & investors choose stock trading opportunities in a practical way every day at http://www.MomentumStockPick.com

Direct TV Stocks Hughes Receivers Exclusively

Friday, December 5th, 2008

One thing that you will find as you shop around for a satellite TV service provider, is that just about all of them will give you a free satellite TV system when you sign an extended programming service agreement with them. They do this for a number of reasons, but one big reason that they are able to do this and stay in business is because the cost of home electronics components in general has fallen dramatically in the last decade.

The service providers also acquire the systems that they give away in very large quantities and that also helps to keep the price that they pay for them down. Don`t get too excited though, because there are some things that you should consider before you allow the first satellite TV service provider that you contact to rush over and install their wonderful free satellite TV system in your home or business.

The quality of the system should be taken into consideration, because once you accept it, it is yours to fix or replace if it begins to malfunction. They will all come with some kind of warranty, but it is only for a year or so and if your receiver has a lot of functions then, it has a lot of things that can begin to stop working in two or three years.

If you aren`t careful, you could be stuck buying a whole new system when you thought you had a free system that was going to last forever. There are manufacturers overseas that can slap together home electronics components at amazingly low prices, but they tend to be of very low quality even if they do look good on the outside and some TV service providers have succumbed to temptation by stocking up on these cheap low quality units to unload on their hapless customers, who don`t know how to tell the difference between a high and low quality system.

At DirecTV you can always rest assured that the satellite system that you receive from them is of the highest quality available, because they stock Hughes Electronics satellite TV systems exclusively. The Hughes name is synonymous with quality and reliability and is recognized world wide as a top name in satellite TV components.

DirecTV has to pay more for Hughes equipment, but that is how the world works especially when it comes to home electronics components and this is why DirecTV doesn`t give away their high definition receivers free of any charge like their competitors do. High definition receivers are substantially more costly then standard definition receivers, because high definition programming is very data intensive broadcasting format.

If a service provider is going to give you a high definition receiver free of charge, then you can bet your favorite yo-yo that it a cheap sub standard unit and you shouldn`t bet the whole farm that it is going to last for a very long time.

DirecTV requires a nominal fee to offset the difference in cost between a standard and high definition Hughes receiver, because it is not by any means a cheap unit. Some of the higher technology that goes into Hughes high definition receivers is patented and is more expensive to include in them, but DirecTV and Hughes Electronics are working together to implement new technology into the manufacturing process, that should bring down the cost of Hughes high definition receivers in the near future. If the highest quality in a satellite TV system is what you would prefer, then look to DirecTV and Hughes Electronics.

Written by David Johnson. Find more information on satellite tv as well as direct tv special

The Practicality and Prestige of Ex Chainstore Clothing and Surplus Stocks

Monday, December 1st, 2008

For the high-fashion conscious, words like ex chainstore clothing and surplus stocks are undesirable words to be included in their vocabulary. These words frequently denote low quality and cheap price, things most avoided by persons of means. Unfortunately, not all of us are persons of means. Besides, they are mistaken in the belief that ex chainstore clothing and surplus stocks are of low quality by virtue of its low price. Indeed, with these types of clothing lines, quality is never compromised in favour of low price. Why is this so?

Well, ex chainstore clothing is simply the surplus stocks of clothing manufacturers. When we say surplus stocks we mean the quantity produced or supplied in excess of the required demand. Surplus stocks usually come from cancelled orders, over makes, and late deliveries to original buyers like UK’s high-end fashion stores. Clothing manufacturers must sell these surplus stocks in the name of good business; they must dispose of excess stocks to lessen inventory maintenance costs and to recoup its investments on the manufactured products. Since the investments are at a small fraction of the original price, clothing manufacturers can offer them to ex chainstore clothing wholesalers like Chainstore Clothing at reasonable discounts. When Chainstore Clothing then resells the ex chain store clothing to consumers, they can offer similarly low prices. And since Chainstore Clothing buys the surplus stocks in bulk directly from the clothing manufacturer, expensive middleman costs are also eliminated. This accounts for the low wholesale prices to consumers.

However, it is only the price that is the substantial difference between the originals and the ex chainstore clothing. The latter is still an original item in terms of quality and workmanship; ex chainstore clothing are identical twins to the original with a few exceptions. In all adult ex chainstore clothing, the original chainstore labels are either cut off, or permanently marked out, or removed. The only tags kept intact are the size, cloth content and care and washing instructions. However, all ex chainstore clothing for children like character clothing have their labels intact. This goes the same for branded ex chainstore clothing and sportswear. Again, original quality is preserved particularly as the surplus stocks are initially made to undergo quantity and quality inspection procedures before de-labeling; you are assured that any ex chainstore clothing you buy from Chainstore Clothing is of high quality.

Chainstore Clothing provides its buyers with practical choices in ex chainstore clothing for all seasons throughout the year, for all ages. They have ex chainstore T-shirts and blouses, pants and skirts, ladies’ and men’s underwear, jackets and sweaters, pyjamas and nightwear, and many other branded ex chainstore clothing and sportswear for kids and adults. Chainstore Clothing also provides for regular price reductions and clearance sales, so you are also assured of bargain prices the whole year round. Though these are practical in terms of price, you can be sure that they have the prestige of being branded especially as ex chainstore clothing has easily recognisable styles and colours. If you do not flaunt the labels of your ex chainstore clothing, people would not know the difference and yet you will be complimented on your style.

With all these advantages, truly ex chainstore clothing and surplus stocks at Chainstore Clothing will take on a whole new positive meaning.

Predicting Stocks And Other Things With Remote Viewing

Friday, November 28th, 2008

Remote viewing is the unexplained, but scientifically acknowledged ability to see something that is hidden from physical view, something that is usually separated by some distance. Known as PSI, it is classified as a paranormal ability and is sometimes thought of as ESP, clairvoyance, precognition, or telepathy.

Used extensively as an intelligence gathering tool, the US government funded PSI research for over twenty years from the end of world war two through to the 1970s and used it to train `psychic spies` during the Cold War. Known as part of the Star Gate project, the results were irrefutable: remote viewing is not only possible, but as an innate ability that everyone possesses, anyone can learn how to do it, and for those who become good at it, it is possible for them to achieve a positive result eighty percent of the time — eighty percent being the threshold replicated across multiple laboratories and cultures.

Up until recently remote viewing has largely been a tool used by the military, the CIA and other related branches of law enforcement. A common practice of the police, it has been used to solve crimes and find missing people. But having caught the imagination of the public, the application of remote viewing is gaining momentum in the mainstream, and is being used by some to predict all kinds of future events including the rise and fall of the stock market.

The idea that remote viewing can be used to successfully predict the outcome of the financial market eighty percent of the time might seem fanciful, if not a dream, but what about using it to see the future state of your health and well being. To use it in this way would in effect enable a person to change their future and maybe even postpone their death.

The ramifications of remote viewing for our daily lives are huge, but more than this, the fact that it is a proven phenomenon that requires our consciousness to transcend time and space, remote viewing is also a way of glimpsing the “universal mind” the “sea of consciousness” that all mystical experiences elude to — the all knowing that is everywhere, and that we can, through learning how to remote view, tap into whenever we want.

Surprisingly, learning how to remote view is not as difficult as one might imagine. In fact, it can be a deeply relaxing experience because it requires a temporary shift in brainwave frequencies from the beta range to the alpha range. The alpha brainwave frequency range is a dreamy relaxed, non judgemental, non analytical state and is the brainwave states most commonly associated with paranormal experiences. When one develops the ability to enter this state while remaining alert, they are in optimum state not only for remote viewing but for a whole host of experiences that transcend the barriers of the time space continuum.

For more information on brainwave states and their associated experiences please visit: Positive Mind States

For information on meditative recordings designed to induce remote viewing capabilities by inducing alpha brainwave frequencies please visit: Positive Mind States Remote Viewing Recordings

This article maybe reprinted with the author`s name and website address intact. Thank You.

The BSE Sensex and the Indian indices of the trading day, shares & Stocks

Thursday, November 27th, 2008

The first story is something on the BSE —
BSE sensitive index of large-scale domestic and international markets through print and electronic media has reported widely and Indian investors and traders in the middle of the day are recognized.
As the oldest index in the country, the 1979 in a relatively long period of time series data provides.
No wonder, the Sensex is at this year`s best-known brands in India are.
What is Sensex?
The Sensex, the Bombay Stock Exchange Sensex index is small as a share price -30, and the establishment of financially sound companies with a large sample is weighted index. The index is the oldest in India and investors a unique place in the collective consciousness.
Indian stock markets in the index`s performance, is designed to measure. Because they Stock Exchange, Mumbai on publicly trading shares of stock underlying the universe, are the Indian Sensex is the pulse of the market. Besides, the Indian stock market index as the oldest.
In the index and any other Indian stock exchanges and indices, often in the mood to describe the Sensex is used as a measure of stock market movements.
Some on the Bombay Stock Exchange down a list of Indian companies, you can trade:
Andhra Bank, Arvind mills, Aurobindo Pharma bass, BASF Bank of secrets, DigiGlobal, Dr. Reddy, Dr. Reddy, DSQ software, EIH, Glenmark Pharmaceutical, Hexaware Tech, Hero Honda, Tata, Telco
Sensex in the time frame you, it`s possible to make each day traders can trade, which they feel most comfortable in. trade deadline trade for their capabilities
Visit for more information on BSE tips.

Crush the Stock Market Without Trading Stocks

Friday, November 21st, 2008

Do you look at the stock market and wish you`d bought some Google stock back when it was first offered for $104? You`d have gained nearly 300% on that investment in the first year – that`s roughly 9.2% each month! That`s a Wall Street level of success!

Imagine if I could show you an investment opportunity that could easily give you over 14% monthly? What if 21.5% per month was within reach? These yearly returns of anywhere from 500% to 1000% are possible for anyone who has the initiative to go out and get them. That`s 2-4X MORE than GOOGLE, one of the fastest growing stocks IN HISTORY! We`re talking about an investment opportunity where your returns will crush even the top gainers of the stock market. Are you starting to get curious about how these numbers are attainable?

You can beat the stock game by playing a different game, the Foreign Exchange trading game. Also referred to as Forex, the Foreign Exchange market is where one country`s currency is traded for another`s. You can buy €1100 Euros for $1000 US Dollars while the exchange rate is at 1.1 Euros/Dollar. Then you can sell the Euros back to dollars for $1100 (and a nice $100 profit) if the exchange rate moves to 1 Euro/Dollar.

$100 may be nice, but that 1% return on the $1000 doesn`t sound like the path to your 500% returns, does it? Here`s how that 1% gets its power: Leverage. With Forex, if you have $300 in your account, you can control a $10,000 trade. That makes your money a lot more powerful than the $1-$1 control you get in the stock market! If you`re thinking that you can lose more money this way too, just read on, you`ll learn why that won`t happen.

Consider this: The Foreign Exchange market has a DAILY trading volume of around $1.5 trillion dollars. That`s 30 times larger than the combined volume of all U.S. equity markets (that includes the NASDAQ and NYSE). This is an untapped resource, and you`re about to learn five simple steps towards taking your share out of that market and into your pocket.

1. Get Educated!
As with all things, the more you know about trading, the more likely you are to success. A little effort spent learning up front can save you hundreds and thousands of dollars of mistakes later.

2. Have a Strategy!
A simple repeatable system can turn trading into a low-risk mechanical system. Know when you should trade, how often you should trade, how much money to spend per trade, when to cut your losses, and when to take your profits. Push the right buttons at the right times, and you`ll make money.

3. Practice Makes Perfect!
Most Forex brokers will allow you to sign up for a practice account, where you can trade imaginary money until you`ve solidified your winning strategy. Don`t risk your hard-earned cash until you`ve proven that you`ll succeed

4. Scrape Together $300
That`s 2 months of brown-bagging lunch instead of buying it; or a few months of cutting down on the daily coffee-shop visits. If you start now, by the time you`ve learned a strategy and perfected it on your practice account, you`ll be ready with your $300 to start earning real money. More money is always better, but $300 is the minimum you`ll need to get started.

5. Go Out and Succeed!
By the time you get to Step 5, you KNOW you will succeed, and you`ll spring out of bed every day ready to make your profit. Some days you`ll lose a little money, but you won`t worry. Your strategy allows you to lose a little money from time to time; you proved that losing money periodically wasn`t the end of the world when you practiced; you`ll get up tomorrow and make it back by following your proven strategy.

Starting with your $300, if you made “Google Gains”, you`d have $862 in a year. That`s not bad. With Forex gains, though, you could easily turn your $300 into $1500-$3000 in a year! Who need the stock market?!?

Saving the best for last, here`s the shocking truth: The 500-1000% yearly returns are possible, but with a smarter strategy you could turn your $300 into over $10,000 in less than a year without increasing your risks! Best of all, you can do all of this over the Internet without leaving home. That`s 3000% while wearing pajamas. With these kinds of returns, you could realistically quit your job and trade full-time!

If you could use more money if your life (and lets face it, we all can), you owe it to yourself to learn more about Foreign Exchange trading.

Jeff wants to share financial independence with everyone. Visit http://www.SimpleForexTrading.com to get a free e-Book that explains more about getting started with Forex trading. Learn more about this amazing opportunity today. http://www.SimpleForexTrading.com

Ten Common Investment Errors: Stocks, Bonds, & Management

Friday, November 21st, 2008

Investment mistakes happen for a multitude of reasons, including the fact that decisions are made under conditions of uncertainty that are irresponsibly downplayed by market gurus and institutional spokespersons. Losing money on an investment may not be the result of a mistake, and not all mistakes result in monetary losses. But errors occur when judgment is unduly influenced by emotions, when the basic principles of investing are misunderstood, and when misconceptions exist about how securities react to varying economic, political, and hysterical circumstances. Avoid these ten common errors to improve your performance:

1. Investment decisions should be made within a clearly defined Investment Plan. Investing is a goal-orientated activity that should include considerations of time, risk-tolerance, and future income… think about where you are going before you start moving in what may be the wrong direction. A well thought out plan will not need frequent adjustments. A well-managed plan will not be susceptible to the addition of trendy, speculations.

2. The distinction between Asset Allocation and Diversification is often clouded. Asset Allocation is the planned division of the portfolio between Equity and Income securities. Diversification is a risk minimization strategy used to assure that the size of individual portfolio positions does not become excessive in terms of various measurements. Neither are “hedges” against anything or Market Timing devices. Neither can be done with Mutual Funds or within a single Mutual Fund. Both are handled most easily using Cost Basis analysis as defined in the Working Capital Model.

3. Investors become bored with their Plan too quickly, change direction too frequently, and make drastic rather than gradual adjustments. Although investing is always referred to as “long term”, it is rarely dealt with as such by investors who would be hard pressed to explain simple peak-to-peak analysis. Short-term Market Value movements are routinely compared with various un-portfolio related indices and averages to evaluate performance. There is no index that compares with your portfolio, and calendar divisions have no relationship whatever to market or interest rate cycles.

4. Investors tend to fall in love with securities that rise in price and forget to take profits, particularly when the company was once their employer. It`s alarming how often accounting and other professionals refuse to fix these single-issue portfolios. Aside from the love issue, this becomes an unwilling-to-pay-the-taxes problem that often brings the unrealized gain to the Schedule D as a realized loss. Diversification rules, like Mother Nature, must not be messed with.

5. Investors often overdose on information, causing a constant state of “analysis paralysis”. Such investors are likely to be confused and tend to become hindsightful and indecisive. Neither portends well for the portfolio. Compounding this issue is the inability to distinguish between research and sales materials… quite often the same document. A somewhat narrow focus on information that supports a logical and well-documented investment strategy will be more productive in the long run. But do avoid future predictors.

6. Investors are constantly in search of a short cut or gimmick that will provide instant success with minimum effort. Consequently, they initiate a feeding frenzy for every new, product and service that the Institutions produce. Their portfolios become a hodgepodge of Mutual Funds, iShares, Index Funds, Partnerships, Penny Stocks, Hedge Funds, Funds of Funds, Commodities, Options, etc. This obsession with Product underlines how Wall Street has made it impossible for financial professionals to survive without them. Remember: Consumers buy products; Investors select securities.

7. Investors just don`t understand the nature of Interest Rate Sensitive Securities and can`t deal appropriately with changes in Market Value… in either direction. Operationally, the income portion of a portfolio must be looked at separately from the growth portion. A simple assessment of bottom line Market Value for structural and/or directional decision-making is one of the most far-reaching errors that investors make. Fixed Income must not connote Fixed Value and most investors rarely experience the full benefit of this portion of their portfolio.

8. Many investors either ignore or discount the cyclical nature of the investment markets and wind up buying the most popular securities/sectors/funds at their highest ever prices. Illogically, they interpret a current trend in such areas as a new dynamic and tend to overdo their involvement. At the same time, they quickly abandon whatever their previous hot spot happened to be, not realizing that they are creating a Buy High, Sell Low cycle all their own.

9. Many investment errors will involve some form of unrealistic time horizon, or Apples to Oranges form of performance comparison. Somehow, somewhere, the get rich slowly path to investment success has become overgrown and abandoned. Successful portfolio development is rarely a straight up arrow and comparisons with dissimilar products, commodities, or strategies simply produce detours that speed progress away from original portfolio goals.

10. The “cheaper is better” mentality weakens decision making capabilities and leads investors to dangerous assumptions and short cuts that only appear to be effective. Do discount brokers seek “best execution”? Can new issue preferred stocks be purchased without cost? Is a no load fund a freebie? Is a WRAP Account individually managed? When cheap is an investor`s primary concern, what he gets will generally be worth the price.

Compounding the problems that investors have managing their investment portfolios is the sideshowesque sensationalism that the media brings to the process. Investing has become a competitive event for service providers and investors alike. This development alone will lead many of you to the self-destructive decision making errors that are described above. Investing is a personal project where individual/family goals and objectives must dictate portfolio structure, management strategy, and performance evaluation techniques. Is it difficult to manage a portfolio in an environment that encourages instant gratification, supports all forms of “uncaveated” speculation, and that rewards short term and shortsighted reports, reactions, and achievements?

Yup, it sure is.

Steve Selengut
http://www.sancoservices.com
http://www.valuestockbuylistprogram.com
Professional Portfolio Management since 1979
Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire`s Secret Investment Strategy”

Investing In Copper Stocks – Exploration and Producers

Friday, November 21st, 2008

Copper`s continuous thrust into record high pricing is a result of a number of fundamental market situations that have evolved over the last decade. Few could foresee the dramatic impact China`s economic democratization would have on global metals demand. But will it last?

China is largest consumer of copper and is expected to use 3.5 million tonnes this year alone. Of that figure, 1.9 million tonnes will come from Chinese mines and smelters, leaving a 1.6 million tonne shortfall to be compensated for by global copper producers and scrap recycling. (Recycling generally accounts for 12% of global supply.)

Global demand is expected to exceed 20 million tonnes by 2010.

So where, and investor might ask, is the top? When do I get in, and most importantly, when do I get out?

Many analysts predicted coppers surging price on China`s demand would be short-lived because China would not be able to sustain the developmental place it had then established. These analysts were wrong, as Chinese infrastructure and housing has continued to increase.

In addition to copper consumers, investment speculators have waded into the fray to increase the upward pressure on copper prices into the future.

Analysts again are predicting a flattening of China`s demand going forward. Demand is difficult to predict, because it is predicated by forces whose intentions for the future are unknown. The Chinese government increased the cost of borrowing in an effort to slow down economic growth, but this measure was widely perceived as futile.

BMO Financial Group`s Commodity Price Report has this to say:

“With (copper) inventories at critically low levels, demand firming amid healthy global economic growth, and production gains likely limited, the resulting tight market balance should keep prices high, even if volatile, during the rest of the year.

Copper prices increased 8% in July for a monthly average of US$3.49/lb. The primary factor behind the advance was continued concern about supplies in an extremely tight market. Specifically, industrial disputes and production problems at major mines in Chile were key catalysts. Monthly copper prices have more than doubled (113%) over the past year. With inventories at very low levels, demand still strong, the threat of strikes still in the air, and production gains likely limited, prices should remain high and volatile during the next several
months.”

Ken Heebner of CGM Funds is also bullish:
“Copper goes into the infrastructure of all developing nations, of which India and China are the most publicized but not the only ones. Copper production hasn`t been able to grow fast enough to keep pace with demand. When you look around the world today, the earliest we can see incremental new production coming online is 2009 or 2010.”

Supply is much easier to predict, because before copper becomes rods, wires and cable, it must be located in deposits in the ground.

According to the Metals Economics Group, “Worldwide, significant copper discoveries between 1998–2004 have fallen well short of what is needed to replace the copper produced – a total of just 39.9 million mt of copper in reserves and resources has been discovered, while production totaled just about 93.6 mt – although the resources in these deposits have potential for further increases over time.”

The USA`s Copper Development Association (CDA) estimates that global copper resources are nearly 6 trillion pounds. The CDA also estimates that throughout history only 700 billion pounds of copper have been mined.

But just because there are that many pounds on earth doesn`t mean its mineable.

The fastest route to increased global production capacity is through the expansion of throughput at existing mines. This can be accomplished by the introduction of larger processing circuits and increased ore movement systems.

But major producers are constantly plagued by unforeseeable issues around labour.

Chile`s Escondida mine, the world`s largest, has seen its output halved as a result of a 4 –week old strike (as of the time of this writing). The introduction of replacement workers is not expected to return output to normal, but merely enable the mine to continue producing at 50% capacity. Escondida is owned by BHP Billiton and Rio Tinto the world`s two largest miners.

Copper output in Chile, the world`s biggest producer, fell 1.4 percent in March from a year earlier. Grupo Mexico SA, the world`s seventh-biggest copper producer, shut its La Caridad mine on June 8 because it couldn`t end a strike.

The best new source of copper inventory is the junior exploration company. In today`s environment, they have the ability both to raise sufficient capital to conduct thorough exploration programs, but they usually have a one or two project attention span that means their understanding of the economics and value of their deposits proceeds more rapidly.

Not only that, but when it comes to capital appreciation, juniors who make discoveries (and more importantly, their investors) are the beneficiaries of exponential share price appreciation.

A case in point would be Norsemont Mining (TSX.V:NOM), featured in Resource World Magazine and on Resourcex Investor in April of 2005 while trading at $0.80. When they started drilling their Constancia project, which they had in a joint venture with London-based Rio Tinto PLC, their share price soared to over $4, providing returns in some cases of over 1,000 %.

So the best way to participate in the copper market is through junior exploration companies. Our favorite at present is Acero-Martin Exploration, who at $0.90, (TSX.V: ASD) is in a similar situation as Norsemont. They will be releasing their 43-101 compliant resource calculation sometime in Q3 2006.

When evaluating junior mining companies in the copper sector, look for economics in their calculations that make them profitable even with copper at $1.20.

James West is the publisher of the Resourcex Family of Investing Websites.
His sites include:
http://www.resourcexinvestor.com
http://www.resourcexgold.com
http://www.resourcexcopper.com
http://www.resourcexuranium.com
http://www.resourcextungsten.com
http://www.resourcexplatinum.com
http://www.reosurcexnickel.com
http://www.resourcexmoly.com
http://www.resourcexdiamonds.com
http://www.reosurcexoilandgas.com
http://www.resourcexmetals.com
http://www.resourcexbiotech.com
http://www.resourcexenergy.com