A Tribute to Matthew R Simmons
Jim Discusses the Markets and Dividend-Paying Stocks with Roger Conrad
Roger Conrad, Editor of Utility Forecaster for 15 years and is also the editor of Canadian Edge and Utility & Income. In addition, he's associate editor of Personal Finance, where his regular beat is the Income Report. Mr. Conrad tracks a universe of more than 250 essential services securities, employing a rigorous five-stage methodology that includes a proprietary safety rating system and a value index that compares prospective total returns with a security's current price-to-earnings ratio. This week Roger and Jim Puplava discuss utilities and energy stocks, and Roger sees some ignored opportunities.
Excerpt/Summary from Financial Sense Newshour Discussion with Roger Conrad
As we come out of this recession, there is tremendous upside potential in dividend paying stocks like utilities. Over the next 10 years, over a trillion dollars are needed for our power infrastructure, which will require a fair amount of investment. Many of these companies are using the lowest corporate borrowing rates in 40 years to refinance their debt and reduce balance sheet risk, locking in long-term profitability. Sees potential in major oil producers and water utilities. Growth story for water is in aging infrastructure, privatization of municipalities. American Water Works bought out by German company in 2002 then pieced out after change of management and considers it more valuable now. Does not believe we'll see a repeat of 2008 but given zero to low interest rate environment finds high dividend-paying utilities a good place to generate income. Gives weekly comments at www.investingdaily.com.
A Tribute to Matt Simmons
Matthew R. Simmons was the Founder of the Ocean Energy Institute (OEI) based in Rockland, Maine. OEI's focus is the commercialization of various aspects of energy from our oceans and the acquisition of advanced technology companies that will broaden this effort. Simmons was also former chairman of Simmons & Company International, a specialized energy investment banking firm, which he founded in 1974 and retired from in 2010. Mr. Simmons passed away on August 8, 2010.
This week Jim Puplava offers a special tribute to Matt Simmons, including clips from a number of Matt's interviews on the Financial Sense Newshour. Jim explains how Matt opened his eyes regarding the global threat of Peak Oil, and how it changed the way he looked at a world hooked on cheap fossil fuels. Matt's explosive 2005 book, Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy, debunked Saudi Arabia's claims of vast untapped oil reserves. Matt Simmons' contributions will continue to live on and hopefully will help awaken a sleeping world.
Overview of the Tribute to Matt Simmons
(17:43) All clips that follow mark the beginning of a previous interview with Matt and the topic.
(25:26) How Matt's participation with the CIA in reviewing oil reserves worldwide eventually led to his discovery of peak oil.
(35:18) 2nd clip, Peaking of Saudi Arabian oil fields leading to a global peak.
(39:31) 3rd clip, Factors that have led us to this point.
(46:36) 4th clip, Ever-increasing average age of drilling equipment, especially off-shore, and the danger it presents upon an already thinly stretched energy infrastructure.
(52:25) 5th clip, Jim asks Matt what he would do if he were elected president.
(58:51) 6th clip, Controversial comments on second BP leak.
Matt Simmon's solution to peak oil: www.oceanenergy.org.
Note: Thanks to FSO Staff Member Cris Sheridan for his summaries of the Financial Sense Newshour content.