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Melina Brooks
5 years ago
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Apple Inc. (AAPL) $142.19-15.73 Gold $1295.90 +11.80 It was just a few weeks ago that Apple became the first company with a trillion d o l l a r m a r k e t cap.

It actually seems not that bad, the news that was announced last night as revenue expected from the company is suggested to come in at the $84 billion range this quarter, down from the hoped for

But this just seems to be adding about concerns around the market in general as the news has Apple plunging to the lowest level in a year and a half and taking the markets with it - in a huge way!

And the question is, is this just one more event in the market that has more than a few people concerned.

1 Apple Inc. (AAPL) $ Gold $ It was just a few weeks ago that Apple became the first company with a trillion d o l l a r m a r k e t cap...ah yes, that was in the good old days when the FAANG stocks were the place to be. Not anymore. It actually seems not that bad, the news that was announced last night as revenue expected from the company is suggested to come in at the $84 billion range this quarter, down from the hoped for $89 to $93 billion, which is a decrease and the bulk of that is expected to come from weaker iphone sales...mainly in China. But this just seems to be adding about concerns around the market in general as the news has Apple plunging to the lowest level in a year and a half and taking the markets with it - in a huge way! As you read all the different news headlines, "Bombshell" is one of the words being used to describe this event. And the question is, is this just one more event in the market that has more than a few people concerned. First of all, you have the trade wars going on and big concern about people leading countries like Donald Trump and Xi Jinping China (and of course Trudeau in Canada who has never had a job). You have debt of all levels from government to corporations to individuals at record levels and very much a level of uncertainty in general. With all this uncertainty in the markets in general, we continue to note one sector is slowing attracting ever-more attention...the long, ignored gold sector... Apple Inc. Gold dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 1

commodity-based areas of the markets. Yes, we were going to start to act our age.

2 Uranium Participation (U) $ One of our New Year's Resolutions had been that we were going to start investing like a "senior" instead of one of those greedy youngsters that keeps looking for a home run in the too-often risky commodity-based areas of the markets. Yes, we were going to start to act our age. Then all of a sudden on December 31st no less, we get John Zeckner on BNN talking about a commodity stock and you can feel the excitement already! First of all, you should visit the interview on BNN because you get a taste of what's happened in the last year as Zeckner's past stock picks have fared no better...and probably no worse than a whole bunch of other stocks that were in our portfolios. Simply reflecting the "Year from Hey" that we've had. But...all of a sudden, he is talking about uranium and suggesting as a stock pick Uranium Participation. His view is simply that currently, world-wide demand is for 130 million pounds Uranium Participation and production is currently only about half of that...the rest is coming from inventory. Mind you, some of that inventory could last a while and it has been hanging the uranium market for many years. What makes the story interesting is that on the very same day, the editorial board from Bloomberg, featured a major article "A Warming World Needs Nuclear Power". The article writes, "More than a third of America's nuclear plants could close in the next decade. While information and opinions expressed in this publication are believed to have been gathered from reliable sources, we accept no liability for actions that you might take in response to the material presented. Because the use of the information presented is relevant to the facts of your personal situation, you should seek the advice and services of a qualified professional who will take your personal situation into consideration in guiding your actions. dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 2

The Nature Conservancy, long silent on nuclear, is calling for capacity to be expanded enough to provide a third of the world s energy by 2050 (from a little more than a tenth today).

3 But when plants shut down, utilities often turn to harmful fossil Uranium fuels." In the article, they continue, "The UN Intergovernmental Panel on Climate Change is coming around to the view that nuclear power has a crucial role in climate protection. The Nature Conservancy, long silent on nuclear, is calling for capacity to be expanded enough to provide a third of the world s energy by 2050 (from a little more than a tenth today). Most striking of all, the Union of Concerned Scientists a leading watchdog for nuclear safety for decades is now pushing to prevent existing plants closing before their time. The article continues, "Nuclear accounts for almost 60 percent of emissions-free power in the U.S., and when plants shut down, utilities mostly turn to fossil fuels to fill the void. More than one-third of the country s plants, representing 22 percent of total nuclear capacity, are either scheduled to close or at risk of closure within the next five to 10 years, says a new UCS study. This could lead to a 4-6 percent increase in carbon emissions from the power sector by It should be pointed out that nuclear power is relatively expensive and it seems every time they do build a new plant in the United States, it gets ever-more so expensive, but it seems to be what is happening in China is what could make the difference as ever-more plants come on stream overseas. But, interesting to see a commodity (uranium) which has been in the dog house for many years, on the same day, attracting some interesting points. Cenovus Energy (CVE) $ Crude Oil $ We caught up with Keith Schaefer from the Oil and Gas Investments Bulletin and he did make one correct move in suggesting cash out of more than a few positions the last few months. When we ask him to look ahead for the next year he says he expects oil to be higher from here...but not a lot. He is suggesting an average of $55.00 for next year is what to look for, which means that given current prices, we could see $60.00 from time to time to hit that average. He also makes the point that when you see the major oil and gas companies trading at two to four times cash flow, why would you buy juniors? He also suggested that it is going to be much tougher for small caps to get capital in the coming year. When he checks out his crystal ball, he expects a decent run in oil over the next ten weeks, but again, $55.00 average for the coming year. And as far as one stock pick, he goes with heavy oil dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 3

producer Cenovus Energy, Cenovus Energy which has been very much battered in the last while and over the next year, he would not be surprised at all if it could run 50% to 80%.

Meanwhile, Andrew Walker writing in the Motley Fool on December 28th, suggested two stocks that could be takeover targets in 2019.

4 producer Cenovus Energy, Cenovus Energy which has been very much battered in the last while and over the next year, he would not be surprised at all if it could run 50% to 80%. It would be nice to see any oil and gas stock anywhere, do 50% to 80% after the last few months. Meanwhile, Andrew Walker writing in the Motley Fool on December 28th, suggested two stocks that could be takeover targets in One is Laurentian Bank (possibly by National Bank) and the other was Cenovus Energy. Walker writes, "Cenovus spent $17.7 billion to buy out its US partner ConocoPhillips in The deal gave Cenovus control of its vast oil sands resources and came with strategic assets in the Deep Basin plays. The market didn t like the deal, and pipeline constraints and weak oil prices have made things worse, sending the stock down below $9 per share. This puts the market capitalization at just under $11 billion. Suncor or Canadian Natural Resources are large enough to take a run at Cenovus, but it would be a big bet once you factor in the cost of covering the debt obligations. Imperial Oil, however, could be a more likely acquirer as it is majority controlled by U.S. energy giant ExxonMobil. Deb s Ditty: My age is very inappropriate for my behaviour. If you know anyone who would like to receive any of our four newsletters, please Debbie at debbie.lewis@plant4seeds.com dave.pescod@plant4seeds.com debbie.lewis@plant4seeds.com 4

5 OUR JUSTIN JOKE OF THE DAY: 5

Dow Jones Industrial 25, NASDAQ S&P/TSX Composite 15, WTI Oil $ WCS Oil $

Dow Jones Industrial 25, NASDAQ S&P/TSX Composite 15, WTI Oil $ WCS Oil $ Dow Jones Industrial 25,825.80 +287.36 NASDAQ 7441.51 +110.98 S&P/TSX Composite 15,274.98 +77.16 WTI Oil $53.19 +2.26 WCS Oil $29.95 +8.02 We love the BNN commentator who compared Donald Trump to an emperor.