That leads to me:

• wanting to follow this story as it unfolds, which I will do in these e-mails. I will be surprised if PetroChina doesn’t acquire the balance of Athabasca it does not own, thereby wedging Chinese interests more firmly into Canada’s Oil Sands opportunity. Is say this because I believe that irrespective of what environmentalists and others say and do to try to stop Oil Sands development, practicality and commercial reality will dictate that the Oil Sands will be further developed as time passes;

• wonder whether an Investment Canada Act review results where a non-Canadian purchases control of a non-Canadian company that owns a controlling interest in, or all of, a Canadian company. If such a transaction is not subject to Investment Canada Act review this could represent a back-door way for a foreign government or foreign company to gain control, and ultimate complete ownership of Canadian domiciled assets. I will follow up on this with one of my knowledgeable lawyer friends, and let you know the answer in a subsequent e-mail.

I believe the Canadian Oil Sands, housing about one-third of the world’s current known oil reserves, collectively is a world ‘strategic asset’. I have thought that since the early 1970′s, and continue to believe that. I expect China to be demonstrate more and more interest in Canada generally, and the Oil Sands in particular, and think that interest has a very strong likelihood of leading to conflict between the United States and China as time passes.

Some things to think about.

Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining,Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

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• Demand Slowdown – Rio Tinto, Cargill, Codelco?

An article in yesterday’s Financial Times reports ‘Rio Tinto warns of slowdown in demand’ – reading time 4 minutes.  Rio Tinto is the world’s second largest iron ore miner and a large producer of copper and other resource commodities.

The article quotes Rio Tinto’s Chief Executive as saying “In a few cases, customers are asking to reschedule deliveries.  This is consistent with customers being cautious about the current state of business’, in circumstances where “In the last two months most economists have been de-rating global economic forecasts.  You cannot ignore that”.

The article also reports that:

• Cargill, one of the world’s largest food commodity traders said last week that global growth was “weakening and weakening” and sees this as a ‘clear sign’ the current ‘financial turmoil’ is beginning to ‘hit the commodities sector’;

• Chilean state-owned Codelco, the world’s largest copper producer, also has said that some customers have asked for shipment delays, while at the same time other customers has increased their orders; and,

• Rio Tinto’s Chief Executive also said that while customers are somewhat more cautious, the slowdown he spoke of was not spreading to China, where he said Rio Tinto’s “largest customers are not showing any sign of slowdown”.

While I think this article, like many articles from many media sources, may have slightly ‘overstated its title’, the message it carries for me is loud and clear.

If you participate in the Resource Equities Markets, read as much as you can about what those who hold senior positions in large resource companies say. Listen to what they say about the current state of their respective sub-industries (i.e. gold, silver, copper, nickel, zinc, etc.) as important barometers on the prospective overall world and country specific economies, on general financial markets, and on resource specific equity markets.

I have always believed the objective opinion of a seasoned operating executive almost always trumps the objective opinion of a theoretical ‘expert’ without operating experience.  The trick is to separate out objective opinions from those in each of those quite different groups from ‘vested interest and biased’ opinions.

Over the next few months look for more of this type of ‘senior operating officer commentary’ in these e-mails.  I will work to comment on any such commentary that strikes me as objective, as I think that type of commentary to be particularly useful.

Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining, Oil and Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

Possibly Related Posts:

• Another Takeover Bid!
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• TSX Rule Change Survey – September 19
• A Transaction to Watch!
• Something to Watch

Yesterday we published a very short five question survey that deals with proposed Toronto Stock Exchange Rule Changes that deal with the manner in which Shareholders in TSX listed companies may in the future elect Directors to those companies.  We have received a comparatively large number of responses so far.

We see this an opportunity for you to indirectly make you views known on this important topic, as we plan to submit the results to the TSX in accord with its request for feedback by October 16.

Please complete the survey if you have not already done so.

Take the TSX Rule Change Survey

Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining, Oil and Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

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Listen to this commentary

As a subscriber to StockResearchPortal.com’s daily commentaries, I think it reasonable to assume you are interested in, and likely participate in, the small cap resources equity sectors.  This past Monday I commented on the influence of computerized trading on the world financial markets generally, and in the past few weeks in particular.  That afternoon I received an e-mail from a StockResearchPortal.com subscriber who had read that commentary.

By way of background, I have believed from the time I began developing StockResearchPortal.com that a Research Website focused solely on the Mining,  Oil & Gas Industries was, and would continue to be for the foreseeable future, positioned in the ‘best possible prospective economic and investment/trading sector’.  My reasoning had entirely to do with what I then saw (and continue to see) as very positive prospective long-term demand/supply curves for most minerals, and for oil and gas. The possible influence of computerized and professional trading on the prospective success of StockResearchPortal.com had not occurred to me prior to my receipt on Monday afternoon of the aforementioned e-mail.

That e-mail began by saying: “All the commentary about “computerized trading”, etc, applies to Wall St and the big-company side of Bay St. It does not apply to most of the companies followed by StockResearchPortal.com“.  The subscriber went on to say that a “whole new frame of reference” may be developing around “considering investment in the exploration sector”.

The e-mail then said that one avenue open to investors who want to control their own destinies in financial markets dominated by computerized and professional trading might prove to be a gravitation toward investment opportunities ‘where those large scale traders don’t trade, and likely won’t trade in the future’.  The e-mail concludes that small natural resource exploration companies may be one investment/speculation arena where those investors will be able to participate in markets unfettered and uninfluenced by those large scale traders.  The reasons for this are stated in the e-mail to be:

• it is unlikely there will be significant computerized trading in small capitalization natural resource exploration stocks that will ‘trash their markets’;

• in those markets there likely will be fewer hedge fund managers and pro traders to contend with; and,

• Therefore, in those markets there likely will be a greater opportunity for individuals to control their own destinies (investments or speculations).

The e-mail concludes by suggesting that in the past very little has been done to increase the universe of natural resource investors, but that investors prospectively may be driven to these sectors by a lack of viable alternatives.

Having had time to consider the foregoing, what this subscriber suggests makes conceptual sense to me, and I think is certainly something to reflect on and watch for going forward.  I would add that in addition to ‘lack of viable alternatives’ that future events, economic and otherwise, may result in the precious metals, oil & gas, and other natural resource stocks proving to be ‘investments of choice’ for reasons beyond those having to do with a proliferation of computerized and professional trading in larger market segments.

I would like to thank the subscriber who forwarded that e-mail to me very much for what I think is a very potentially insightful view that I hadn’t, and likely wouldn’t have, considered – but for him taking the time to send his thoughts to me.

If readers have follow-up comments or related thoughts I will be very interested in receiving them at icampbell@stockresearchportal.com.

Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining, Oil and Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

Possibly Related Posts:

• Three Types of Investors – and What About Traders?
• Dow Weekly Gains/Losses!
• What Value Do You Give To Your Time?
• Another Takeover Bid!
• Coming Derivatives Crisis?