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Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts

Friday, August 22, 2025

Every portfolio should be anchored! Cautious investors might consider a balanced approach in uncertain times!

 


Here’s a structured report on five “anchor” stocks across different market segments that a cautious investor might hold for upside in a bull market while seeking protection in a bear market.

Anchor Stocks for a Balanced Portfolio

1. Apple (AAPL) – Technology

  • Rationale: Apple is the world’s largest company by market cap and a core anchor in the tech sector. Its strong ecosystem (iPhone, iPad, Mac, Services) provides recurring revenue, and its balance sheet holds significant cash reserves.

  • Bull Market Upside: Innovation in AI, wearables, and services could expand margins and boost earnings.

  • Bear Market Protection: Strong brand loyalty, consistent cash flow, and a fortress balance sheet make Apple more resilient than most tech peers.

2. Johnson & Johnson (JNJ) – Healthcare

  • Rationale: J&J is a diversified healthcare giant with exposure to pharmaceuticals, medical devices, and consumer health products. Its products are largely non-cyclical.

  • Bull Market Upside: New drug approvals and med-tech expansion can drive growth.

  • Bear Market Protection: Healthcare demand is steady regardless of economic cycles, making JNJ a safe haven during downturns.

3. JPMorgan Chase (JPM) – Financials

  • Rationale: The largest U.S. bank, JPMorgan is well-capitalized and a leader in consumer, corporate, and investment banking.

  • Bull Market Upside: Rising deal activity, lending growth, and wealth management expansion provide earnings leverage.

  • Bear Market Protection: JPM’s diversified operations, strong liquidity, and regulatory oversight provide stability compared to smaller banks.

4. Procter & Gamble (PG) – Consumer Staples

  • Rationale: PG owns globally recognized brands like Tide, Pampers, and Gillette. Its products are essential, even in recessions.

  • Bull Market Upside: Brand pricing power and global scale allow PG to capture growth in emerging markets.

  • Bear Market Protection: Demand for household goods is steady, making PG a defensive anchor stock.

5. NextEra Energy (NEE) – Utilities / Renewable Energy

  • Rationale: NextEra is the largest U.S. utility and a global leader in renewable energy. Utilities are historically defensive, and NEE adds a growth component through clean energy investments.

  • Bull Market Upside: Expansion in renewables and infrastructure spending supports long-term growth.

  • Bear Market Protection: As a utility, demand for electricity is stable, cushioning against economic downturns.

Summary

These five anchor stocks provide a blend of:

  • Growth (Apple, JPMorgan, NextEra)

  • Stability (Johnson & Johnson, Procter & Gamble)

Together, they represent technology, healthcare, financials, consumer staples, and utilities—five distinct sectors. This diversification helps cautious investors ride the bull market while softening the blow of a bear market.

Here’s the expanded report with valuation metrics for each of the five anchor stocks, plus one ETF recommendation that complements them.

Anchor Stocks for a Balanced Portfolio

1. Apple (AAPL) – Technology

  • Market Cap: ~$3.2T

  • P/E Ratio: ~29

  • Dividend Yield: ~0.5%

  • Beta: ~1.2 (slightly more volatile than market)

  • Notes: Apple’s strong balance sheet ($160B+ cash) and recurring service revenue provide cushion in downturns, while AI and product refreshes fuel upside.

2. Johnson & Johnson (JNJ) – Healthcare

  • Market Cap: ~$370B

  • P/E Ratio: ~14

  • Dividend Yield: ~3.3%

  • Beta: ~0.5 (much less volatile than market)

  • Notes: One of only two U.S. companies with AAA credit rating. Its mix of pharma, medical devices, and consumer health adds resilience.

3. JPMorgan Chase (JPM) – Financials

  • Market Cap: ~$600B

  • P/E Ratio: ~11

  • Dividend Yield: ~2.3%

  • Beta: ~1.1 (close to market risk)

  • Notes: The strongest U.S. bank balance sheet, with global reach and consistent earnings power across economic cycles.

4. Procter & Gamble (PG) – Consumer Staples

  • Market Cap: ~$400B

  • P/E Ratio: ~23

  • Dividend Yield: ~2.4%

  • Beta: ~0.4 (very defensive)

  • Notes: Reliable dividend grower, 60+ years of increases. Essential products offer protection in recessions.

5. NextEra Energy (NEE) – Utilities / Renewables

  • Market Cap: ~$160B

  • P/E Ratio: ~19

  • Dividend Yield: ~2.6%

  • Beta: ~0.5 (defensive with steady cash flow)

  • Notes: Combines utility stability with renewable growth exposure, making it a rare “defensive growth” stock.

Complementary ETF: Vanguard Dividend Appreciation ETF (VIG)

  • Category: Large-cap U.S. dividend growth companies

  • Expense Ratio: 0.06% (very low)

  • Dividend Yield: ~2%

  • Volatility: Lower than S&P 500 (Beta ~0.9)

  • Why It Complements the Anchors:

    • Focuses on high-quality companies with at least 10 years of consecutive dividend growth.

    • Provides diversification across 300+ holdings, including Microsoft, J&J, PG, and PepsiCo.

    • Smooths returns in bear markets while offering upside in bull markets.

Summary

This Anchor Portfolio of five stocks (AAPL, JNJ, JPM, PG, NEE) gives exposure to tech, healthcare, financials, consumer staples, and utilities—a broad, defensive yet growth-ready mix. Adding VIG ETF layers in dividend-growth diversification, ensuring capital protection in downturns and steady upside in expansions.

Let’s add a Canadian-listed ETF that serves as a solid complement to the anchor stocks, while being easily accessible to Canadian investors.

Canadian Complementary ETF

iShares S&P/TSX 60 Index ETF (XIU.TO)

  • Category: Large-cap Canadian blue-chip stocks

  • Exchange: Toronto Stock Exchange (TSX)

  • Expense Ratio (MER): ~0.18%

  • Dividend Yield: ~3.0%

  • Beta: ~0.9 (slightly less volatile than the S&P 500)

Why XIU Works as a Complement

  • Diversification in Canadian Market: Covers Canada’s 60 largest companies (banks, energy, telecoms, consumer).

  • Bear Market Cushion: Heavy weighting in banks and utilities makes it defensive.

  • Bull Market Upside: Exposure to resource and energy companies provides growth if commodities surge.

  • Dividend Stability: Canadian banks and telecoms (RBC, TD, BCE, Telus) are strong dividend payers.

  • Liquidity: XIU is one of the oldest and most liquid ETFs in Canada.

Alternative Canadian Option (Dividend-Focused):

Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO)

  • MER: ~0.22%

  • Dividend Yield: ~4.3% (higher income focus)

  • Holdings: Primarily banks, pipelines (Enbridge, TC Energy), telecoms.

  • Best For: A cautious investor wanting more income stability while still participating in bull markets.

Summary Recommendation

  • For a core Canadian anchor ETF: XIU.TO (broad, stable, diversified).

  • For extra income/dividend protection: VDY.TO.

Together with the U.S. Anchor Stocks + VIG, these ETFs give you cross-border diversification, income in downturns, and strong upside in recoveries.

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Thursday, August 7, 2025

Kraken Robotics - NATO Navy supplier is moving up the ladder with massive, undersea battery facility!

 


Technology for: NATO Navies, Energy companies, pipeline inspections, undersea exploration

Recent Developments

1. Massive SeaPower™ Battery Orders & Nova Scotia Expansion

  • Kraken secured $34 million in SeaPower battery orders from three clients, including a $31 million order—its largest yet—from a UUV defense provider, plus $3 million from two commercial clients.finance.yahoo.com+15

  • The company signed a lease and committed $10 million to establish a 60,000 sq ft battery production facility in Nova Scotia by late 2025. Once operational, capacity could nearly triple—approaching $200 million in annual battery output—and create around 200 advanced manufacturing jobs.Kraken Robotics+2ept.ca+2


2. Q1 2025 Financial Results & Forward Guidance

  • Revenue dropped 23% YoY to C$16.1 million, driven by a 42% decline in product revenue offset by a 38% surge in service revenue thanks to strong demand for Sub-Bottom Imager™ and Acoustic Corer™ services.GlobeNewswire+5Kraken Robotics+5Ocean Science & Technology+5

  • Gross margin improved sharply—from 44.8% to 62.7%—though Adjusted EBITDA dipped 32% to C$2.8 million (17.3% margin).Kraken Robotics+1

  • Cash position soared to C$58.3 million, up from C$1.5 million a year earlier, with working capital rising to C$94.6 million—providing robust liquidity for growth.Ocean Science & Technology+3

  • Kraken reaffirmed its 2025 guidance: projecting C$120 million–C$135 million in revenue and C$26 million–C$34 million in Adjusted EBITDA, with most of the year's gains expected in H2.Kraken Robotics+1

  • Key achievements since year-end included ~$45 million in new subsea battery orders, 


     $3 million in SAS orders, launching its KATFISH SAS service for offshore energy markets, and completing its 3D at Depth acquisition

    (Texas, Colorado, UK)    .GlobeNewswire+8Kraken Robotics+8

3. $115 Million Bought-Deal Equity Financing

  • On July 7, 2025, Kraken closed a C$115 million bought-deal public offering, issuing 43.24 million shares at C$2.66 each (including over-allotment).Kraken Robotics+4

  • The raised capital is earmarked for accelerating strategic growth—such as funding acquisitions (especially in the US and Europe), bolstering the balance sheet for larger government and commercial contracts, and general corporate usage.Kraken Robotics+2

4. Board Strengthening with Defense Expertise

  • On June 4, 2025, Kraken appointed Kristin Robertson—a veteran with experience at RTX, Boeing, and defense strategy—as a new member of its Board of Directors, enhancing its governance and defense-industry insight.Ocean Science & Technology+3

5. LiDAR Subsidiary Reaches Milestone

  • Kraken’s recently acquired U.S, LiDAR firm, 3D at Depth, completed its 1,000th subsea metrology project for TotalEnergies, reflecting operational scale and service credentials.Kraken Robotics Science & Technology+6


6. Strong SAS Demand Continues

  • The company also reported over C$3 million in new Synthetic Aperture Sonar (SAS) orders. These systems are being integrated across small and medium UUVs in the Asia-Pacific, Europe, and North America, including a project with the University of Southern Mississippi’s Roger F. Wicker Center.GlobeNewswire+7


Strategic Summary

Focus AreaKey Insight
Financing & LiquidityC$115M raised, C$58M in cash, healthy working capital
Manufacturing ExpansionNova Scotia facility enhances battery output & logistics
Product & Service GrowthStrong SeaPower, SAS, LiDAR orders bolster pipeline
Corporate StrengtheningAdded board expertise and LiDAR operational scale
Forward PathwayWell-positioned for upcoming contract fulfillment in 2025+

Kraken Robotics continues to build strategic momentum—boosting its financial runway, expanding production, winning key orders, and deepening its defense-industry capabilities. It’s clearly accelerating toward becoming a global prime contractor in subsea defense and energy markets.

Ed Note:  We added to our position in PNG Today, August 7th, 2025




A shadow war is brewing under the worlds oceans. 

Release "The Kraken"!


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Sunday, February 16, 2025

Cameco Corp's Uranium is a crucial component of energy futures


Investment Report: Cameco Corporation and the Global Uranium Market

Executive Summary Cameco Corporation (NYSE: CCJ, TSX: CCO) stands as one of the world’s largest publicly traded uranium producers, playing a vital role in global nuclear energy supply. The company is headquartered in Saskatoon, Saskatchewan, and operates several of the highest-grade uranium mines in the world, primarily in Canada’s Athabasca Basin. While Kazakhstan’s Kazatomprom remains the largest uranium producer globally, Cameco is the dominant player in North America and a key supplier to nuclear utilities worldwide, particularly in the United States.

This report examines Cameco’s business model, financials, production capacity, market position, and strategic outlook, as well as the broader uranium market, including key competitors such as Kazatomprom, Denison Mines, NexGen Energy, and Uranium Energy Corp.

1. Cameco Corporation: Market Position & Operations

Cameco is the second-largest uranium producer in the world, trailing only Kazatomprom, which accounts for approximately 43% of global uranium production. As of 2024, Cameco is responsible for approximately 15% of total global uranium output, with production expected to increase significantly in the coming years due to growing demand for nuclear energy.

  • Key Mines & Production Capacity:

    • McArthur River/Key Lake (Canada): One of the largest and highest-grade uranium mines in the world, restarted in 2022 after being idled in 2018 due to low uranium prices.

    • Cigar Lake (Canada): The highest-grade uranium mine globally, producing over 13 million pounds of uranium in 2023.

    • Inkai (Kazakhstan, JV with Kazatomprom): Cameco has a joint venture stake in this high-producing mine.

    • U.S. & European Partnerships: Cameco has supply agreements with nuclear utilities in North America, Europe, and Asia.

  • Production Growth & Outlook:

    • In 2023, Cameco produced 17.6 million pounds of uranium, marking a 69% increase from 2022.

    • Plans to increase production to 23.1 million pounds in 2024.

    • Strategic agreements with the U.S. and European nuclear power sectors to expand exports amid geopolitical tensions affecting uranium supplies.

2. Financial Performance & Investment Outlook

Cameco has exhibited strong financial performance, benefitting from rising uranium prices driven by increased global demand for clean energy and nuclear power expansion.

  • Financial Highlights:

    • Revenue (2023): Approximately $1.93 billion USD.

    • Net Profit (2023): Exceeded $273 million USD.

    • Cash Reserves (2023): Estimated at $1.0 billion USD.

    • Debt-to-Equity Ratio: Relatively low, positioning Cameco for strategic acquisitions or expansions.

  • Stock Performance:

    • Cameco’s stock price on the NYSE stood at $47.19 as of February 15, 2025.

    • The company has consistently outperformed broader market indices, reflecting investor confidence in uranium as a key energy commodity.

    • Analysts predict further upside as nuclear power adoption grows globally.

3. Global Uranium Market Overview

  • Canada’s Market Share: Canada remains the second-largest uranium-producing nation, contributing approximately 23% of global uranium supply in 2024.

  • U.S. Imports: Canada supplies approximately 27% of the uranium used in U.S. nuclear reactors, with Cameco representing a significant portion of these imports.

  • Other Major Producers:

    • Kazatomprom (Kazakhstan): Largest global uranium producer, with a dominant position.

    • Denison Mines (Canada): Focused on exploration and development; key asset is the Wheeler River project.

    • NexGen Energy (Canada): Owns the high-grade Rook I project in the Athabasca Basin.

    • Uranium Energy Corp (U.S.): Expanding production in Texas and Wyoming.

    • Paladin Energy (Australia): Operates the Langer Heinrich mine in Namibia.

4. Strategic Outlook & Investment Considerations

  • Increasing Nuclear Power Demand:

    • Rising interest in nuclear energy as a clean alternative to fossil fuels.

    • Governments worldwide are investing in new nuclear power plants.

  • Supply Chain & Geopolitical Risks:

    • Ongoing geopolitical tensions affecting uranium exports from Russia and Kazakhstan.

    • Canada and the U.S. increasing domestic uranium supply chains for energy security.

  • Investment Risks & Opportunities:

    • Opportunities: Strong long-term uranium demand, high-grade assets, robust financials.

    • Risks: Price volatility, regulatory changes, mine operational risks.

Conclusion

Cameco Corporation is a dominant player in the uranium sector, benefitting from rising global demand for nuclear energy. With a strong financial position, high-grade mining assets, and an expanding production capacity, Cameco remains well-positioned for future growth. Investors looking to gain exposure to the uranium market should consider Cameco as a leading option, while keeping an eye on evolving market dynamics, regulatory developments, and geopolitical risks affecting uranium supply chains.

Ed Note: 

today we have no position in Cameco, however we are bullish and of the ten analyst following this stock, all ten say it is a buy. Subsequently, we will be buying the stock on Tuesday!

(Update: Feb 18th 2025, Bought Cameco shares)

Related Articles:

Commodities are often overlooked in a young investors portfolio. They should not be!


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Monday, February 3, 2025

In a heated and escalating trade war with Canada, how would an export tax levied by Canada on all it's natural resources entering the USA affect American business and society

 


Below is a high-level assessment of how a hypothetical 25% or 50% Canadian export tax on all Canadian natural resources—oil, gas, metals, minerals, lumber, agricultural commodities, and even fresh water or hydro power—could affect the U.S. economy. This scenario represents a highly escalated trade conflict that would likely be unprecedented given the integrated nature of North American supply chains and the long-standing Canada-U.S. trade relationship.

1. Immediate Price and Inflation Impacts

  1. Spiking Input Costs

    • U.S. companies reliant on Canadian resources (oil, gas, uranium, metals, potash, etc.) would face significantly higher costs.
    • These cost increases would ripple through numerous industries—energy, manufacturing, construction, and agriculture—ultimately raising consumer prices.

  2. Widespread Inflationary Pressure

    • The U.S. would see broad-based inflation if major raw materials become more expensive or scarce.
    • Higher costs for fuels (gasoline, diesel, jet fuel), metals (steel, aluminum, copper), and agricultural inputs (wheat, potash fertilizer) would feed into nearly every segment of the economy.

  3. Potential “Price Shocks”

    • Resources where Canada is a top supplier (e.g., potash for fertilizer, certain heavy crude oil grades, certain rare earths) could experience short-term shortages in the U.S., causing severe price spikes until alternative sources are found (if feasible).

2. Sector-by-Sector Effects

  1. Energy Sector


    • Oil and Gas:
      • Canada is a leading oil exporter to the U.S., especially heavy crude from Alberta. A 25% or 50% export tax would sharply raise import costs for U.S. refiners.
      • Many refineries, especially along the Gulf Coast and in the Midwest, are optimized for heavier Canadian crude—switching to lighter U.S. shale or other foreign supplies is not straightforward.
      • Natural Gas: Pipeline gas from Canada serves parts of the northern U.S.; higher import costs would raise heating and industrial process costs.
    • Hydroelectric Power:

      • Certain U.S. border states import Canadian hydro power. An export tax would raise electricity costs in those regions.

  2. Metals and Minerals

    Canada's natural resources

    • Canada is a major source of nickel, copper, zinc, aluminum, iron ore, gold, silver, and uranium for the U.S.
    • Canada is the worlds #2 producer of Uranium (nuclear energy) and, Canada has the world's largest deposits of high-grade uranium, with grades of up to 20%, which is 100 times greater than the world average.

    • A steep export tax could disrupt U.S. manufacturing (e.g., cars, aerospace, electronics) and defense (e.g., uranium for nuclear reactors, key metals for military equipment).
    • Prices of consumer products relying on these metals (from cars to electronics) would likely increase.
       



  3. Agriculture and Food

    • Wheat, Meat, Seafood, Maple Syrup, etc.:
      • If these exports faced a 25%–50% tax, U.S. wholesalers and consumers would likely pay significantly more for Canadian wheat, beef, pork, fish, and specialty items (e.g., maple syrup and Lobster).
      • Certain regional markets in the U.S. (e.g., northern states) rely heavily on cross-border supply for fresh or specialty goods (ie: Seafood).

  4. Fertilizer (Potash)

     


    • Canada is the world’s largest producer of potash, a key fertilizer ingredient. A hefty export tax could raise costs for U.S. farmers significantly, impacting crop yields and food prices.

  5. Lumber and Forestry Products


    • Canada is a major exporter of softwood lumber and other wood products.

      A steep export tax drives up construction costs in the U.S., affecting everything from homebuilding to renovation industries.

  6. Fresh Water Exports (in bulk) Canada has 9% of worlds fresh water supply


    • While large-scale bulk water exports are minimal or highly regulated, any new tax on water or hydro resources would raise utility costs in cross-border communities.(Also fracking, as in America's shale operations, requires massive amounts of fresh water)

3. Supply Chain Disruptions and Reconfiguration (USA)

  1. Search for Alternative Suppliers

    • U.S. companies would scramble to find replacement sources—domestically or overseas—for critical inputs (heavy crude, metals, potash, lumber).
    • This process can be time-consuming and may come with higher transportation/logistics costs.

  2. Retooling and Capital Investment

    • Refiners configured for heavy Canadian crude might face expensive refitting to process lighter oil or other blends from countries like Venezuela, Saudi Arabia, or Mexico (all with their own geopolitical or supply constraints).
    • Manufacturers dependent on Canadian metals (like nickel or aluminum) might shift supply chains to other countries, though quality, reliability, and shipping costs vary.

  3. Trade and Policy Uncertainty

    • The fear of future escalations or shifting tariffs can freeze investment decisions, delaying expansion or hiring in affected sectors.
    • Multinational companies operating on both sides of the border might re-evaluate where to locate production facilities.

4. Impact on U.S. Consumers and Businesses

  1. Immediate Cost Pass-Through

    • Companies facing a sudden 25%–50% cost increase on Canadian resources will pass as much of that cost as possible onto consumers—leading to higher prices for energy, groceries, goods, and services.

  2. Potential Job Losses

    • While some U.S. resource producers might enjoy a temporary competitive edge, many businesses reliant on Canadian inputs could see profit margins squeezed or lose competitiveness (especially if they export finished goods to other markets).
    • Supply chain disruptions often lead to factory slowdowns, reduced output, and in some cases layoffs.

  3. Inflationary Pressure and Reduced Purchasing Power


    • As prices rise, American households and businesses have less disposable income to spend on non-essential goods, possibly slowing overall economic growth.

5. Geopolitical and Long-Term Consequences

  1. Severe Strain on Bilateral Relations

    • A blanket 25%–50% export tax on all Canadian resources is an extreme measure that signals a deep breakdown in trade relations. The resulting tension could spill over into defense, security, and diplomatic realms.

  2. Undermining USMCA (Formerly NAFTA)


    • This move would eviscerate the spirit of the U.S.-Mexico-Canada Agreement and likely prompt complex legal battles.
    • Retaliation and counter-retaliation could spiral, damaging the integrated North American economy.

  3. Acceleration of Resource Self-Sufficiency or Alternate Sourcing

    • Over the long term, the U.S. might invest more heavily in domestic mining, energy production, or forging new trade deals with other countries.
    • Canada’s potential leverage is highest in the short to medium term, before U.S. producers scale up or alternative suppliers emerge.

Conclusion

A 25%–50% export tax on all Canadian natural resources would pose a significant economic shock to the United States:

  • Energy and industrial supply chains would face immediate cost inflation, especially for heavy crude, metals, potash, and lumber.
  • Consumers and businesses would encounter higher prices on everything from fuel and electricity to cars and groceries, fueling inflation.
  • Supply chain disruption would be severe, compelling U.S. companies to retool or seek alternative suppliers, processes that are costly and time-consuming.
  • The overall U.S. economy could face slower growth, job losses in industries reliant on Canadian inputs, and a potential inflationary spiral if retaliation escalates.

In short, while a few domestic resource producers in the U.S. might see short-term gains, the vast majority of the U.S. economy would feel pain from such a sweeping Canadian export tax—a drastic measure that signals a major breakdown in the traditionally cooperative Canada-U.S. trade relationship.

GOT GOLD?

Agnico Eagle Gold is a top 3 Gold miner on the world stage now, and, it's still growing!


GOT BOTS?

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