Sean Brodrick –Energy Sector Investing – Uranium, Lithium, Oil, Nat Gas, Solar, Wind, Utilities, Copper, and Rare Earths

The KE Report

Sean Brodrick, Editor of Wealth Megatrends and contributing analyst to Weiss Ratings Daily, joins me to review investing opportunities in the energy sector, and what kinds of companies he’s investing in and which ones he is avoiding in the uranium, lithium, oil, nat gas, solar, wind, utilities, copper, and rare earths stocks.

With regards to the uranium stocks, he is very encouraged the increased price action mid-week and wants to see how things play out for the balance of this week. One of the big catalysts we discuss is how the changes to the taxes have increased in Kazakhstan, and how that may limit any big increases in production in the medium-term. He remains more animated by the uranium companies in production, or that have a near-term pathway to production, and is less interested by the earlier-stage exploration companies, at this point in the cycle. We also contrast the lithium markets and lithium stocks, and the bubble they had as more shorter-duration compared to the longer-duration fundamental drivers in the uranium sector.

Sean is still positioned in the oil stocks, but has pulled profits in some of the stocks and has been adding more nat gas stocks over the last couple months. That larger companies that pay dividends seem fairly secure with these underlying oil and gas prices, and Sean expects them to have very positive Q2 financial reports. He also still likes some of the growth opportunities in the smaller to mid-tier companies, that are utilizing new technology, and that could also be compelling takeover candidates.

We then turned toward the changes in the energy transition themes, and got his take on why he’s avoided the solar and wind sectors, which have really struggled the last couple of years in a continued corrective pattern. In contrast, Sean has been much more focused on positioning in the utility companies, as they are able to capitalize on the lower costs for generating power via solar or wind or nat gas, in concert with higher electricity demands. We also weave into the discussion the continued need for copper, and why he is animated on the copper stocks, and the production and near-term productions companies. Wrapping up we also check in on rare earths as a component to the energy sector, and why he is avoiding the stocks, in lieu of better opportunities in the sector.

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