Helium-"Total Helium" etc.

[RTaber1]

Oilprice.com has a major piece on TOTAL HELIUM which has a joint venture with LIN (one of oldest gas processors in USA) to develop helium reserves and production in the largest natural gas field in the US, the Hugoton in west Kansas-eastern
Colorado. Total Helium does not show any earnings, however. This is just a name to investigate. Apparently, Total Helium has developed proprietary technology to deal with the water disposal issue when producing from the Hugoton.

According to the article, Total Helium must sell the first fruits of production to LIN at a preferential price of $212/mcf before they can earn the current market price which is up to $500/mcf for helium. Still, selling at $212/mcf, they are
projected to be profitable. When? The article does not comment.

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Was fortunate to buy Laredo Petroleum Monday morning at $59 and watch it roll up today to $69. The comment from Dan about LPI being a trader's stock is an important point to note.

The financial media noted that Silverbow Resources was OVERSOLD at $22 last week and was likely to rebound. It's $24.50 so far today. It seems to be a strong value.

Gatos Silver is $11.25 per share, having IPOed at $7 in November, 2020 and then raced up to $24 earlier this year. RBC Capital calls GATO their "top silver pick" and projects Gatos production will grow 40% in 2022. Tech futurist George
Gilder in his November issue is pounding the table to buy silver for use in many new climate change technologies. You remember Mr. Gilder wrote the book "LIfe after TV" that imagined a device to link the cell phone with the internet 9
years before Apple invented the smart phone. Steve Jobs had bought Gilder's book and given it to all his engineers. GATOS, WE SHOULD NOTE, HAVE NO DEBT.

Dan has suggested, I believe, that Ero Copper may become a takeover stock by someone like Freeport McMoran. Ero is priced at only 7x trailing earnings now. Another possible buyer might be BYD, the Chinese EV maker which is
verticlly integrated and even makes their own microchips. Buying a copper source would be very logical for them. Warren Buffett has invested in BYD and Ford buys a portion of their batteries from BYD. Some project that by 2030
the line-up in order of sales will be Tesla, BYD, VW, and Ford. The Tesla Model 3 uses 180 pounds of copper, 123 pounds of nickel, and 22 pounds of lithium. Toyota has made a "turning point" decision to outsource their full Electric car to be manufactured by BYD and a Toyota namebadge attached to it. Here is a case where the older generation in charge got it wrong.

[dan_s]

Total Helium is "above my pay grade" to evaluate, but it does sound interesting. Helium is rare and very expensive.