"Market Monitor"-James Dines of the "Dines Letter"
Friday, November 03, 2006PAUL KANGAS: My guest "market monitor" this week is James Dines, editor and publisher of the "Dines Letter" based in Bellvedere, California. Welcome back to NIGHTLY BUSINESS REPORT, Jim. Good to see you.
JAMES DINES, EDITOR, "THE DINES LETTER": Hi, Paul.
KANGAS: Wall Street's blue chip surged above the Dow 12,000 level to record highs just recently, but have fallen this week. Do you feel this market has topped out and could go through an extended correction? If so, why?
DINES: This market looks lower. Whether it's going to go into '07 we'll decide with our annual forecast issue coming up. But I think the reason is the real estate bubble has burst and I've been negative on real estate as you know for the recent years and I'm very bearish on it.
KANGAS: OK. As a market analyst, you have predicted major up trends for certain stock sectors and commodities. Gold prices and Internet stocks were two things you saw heading higher before they did and you were the gold bug, the original one. Now you're the uranium one. That's your new favorite. Why uranium?
DINES: I think that the whole world is going to have to move from burning things for energy, including ethanol, towards a mineral and that's nuclear. The whole world is going nuclear and that's what will keep us going for the next few centuries. And it could be cut off by geopolitical things or we could run out of it, but global warming is the big reason. We are going nuclear and that's the bottom line.
KANGAS: We have a chart of the Dines uranium average, which consists of about 30 stocks in understand and it's in a sharp up trend. Aren't you afraid that it's had too big a run?
DINES: No. It's the only uranium average that I know about in the world. And that's why most people have missed this uranium bull market. But it's in what a call a streaming uptrend and as long as that uptrend is intact, we're going to stay bullish.
KANGAS: Now on your last visit in October of last year, you recommended several stocks. Let's see how they've done since then. First we have up on the board, let's see, Cameco, the world's largest uranium miner, up a mere 42 percent. I know you got out higher than hat because of the flooding of a major line they own, Cigar Lake.
DINES: Yes, we sold that, luckily at the top and we took a profit of 553 percent out of it because we had that the last six years.
KANGAS: OK, Laramide Resources has done well, up over 30 percent and let's move right along in some of the others you recommended in October. Mega, that's only up about 200 percent. That's almost unbelievable. And Whole Foods Markets, the only one down here, but I understand you sold it long before today.
DINES: Yes, we got out at the top, fortunately.
KANGAS: OK and there was one other on the American Exchange that you liked, Apex Silver. It's up about 8 percent or so. Are you still with it?
DINES: It's a great deposit, but they'd elected a Leon Trotsky to run Bolivia, so I don't know. It's a political decision, not a stock market decision.
KANGAS: OK, do you have any new recommendations, Jim?
DINES: I do. I can't give you my whole list, obviously, but I'll share a few. I like Pine Tree very much. It's the only fund of uranium stocks. And it's a closed end venture fund. I think that's going to do very well. It's already been a tremendous winner for --.
KANGAS: We can see that by the chart up here, unbelievable.
DINES: Right.
KANGAS: OK, number two.
DINES: Number two, I like Mega Uranium.
KANGAS: Even now after that huge run-up?
DINES: I think you ain't seen nothing yet. They've been acquiring properties around the world, and that's going to be one of my biggest winners ever, I believe.
KANGAS: OK and then, we have time for about one or two more, Frontier Development.
DINES: Well, Frontier is another very good one. They're opening up new areas in Canada, particularly Labrador and the Yukon.
KANGAS: All of these are traded on the Toronto exchange except for frontier which is on the American exchange, correct?
DINES: All the uranium companies are basically Canada and Australia.
KANGAS: OK, Laramide is your fourth choice and you liked that before and it's still.
DINES: I like that again.
KANGAS: A little choppy. Do you own any of these securities, Jim?
DINES: Absolutely. I own all of them and have owned them all the way up, and so have my subscribers.
KANGAS: We have about 20 seconds for any parting thoughts for our viewers. Go right ahead.
DINES: If loneliness can be defined as two people alone with a roast turkey, then experience can be defined as something you really need just before you get it.
KANGAS: OK, our resident philosopher, Jim, thanks very much for sharing your time with us.
DINES: It's always my pleasure, Paul.
KANGAS: My guest, James Dines, editor of the "Dines Letter."
