Jim Rogers Take Initial Stake in Geo Energy Resources

Jim Rogers is a renowned international investor and his stocks picks are scrutinized by retail investors. He has authored many top seller books such as Street Smarts: Adventures on the Road and in the Market and Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market

It was reported in The Edge that International investor James Beeland Rogers Jr, better known as Jim Rogers, has started building his direct stake in Geo Energy Resources. On Aug 22, Rogers acquired 1.7 million shares in the coal mining and trading company at 35.5 cents each. The acquisition was Rogers’ first direct investment in Geo Energy, bringing his direct interest in it to 0.15%.

He is also deemed interested in another 0.17% of the company, owing to an agreement with executive chairman Charles Antonny Melati, granting Rogers a call option over two million of Geo Energy shares belonging to Melati. The call option’s exercise price is 35 cents a share, with an exercise period of 10 years, starting from Jan 1, 2015. Rogers was appointed a non-executive director of Geo Energy in December 2012.

For 2QFY2013, Geo Energy reported a 7% increase in earnings to US$5.1 million ($6.51 million) from a year ago on the back of a 25% increase in revenue to US$32.2 million. Group revenue rose from the increase in coal production and sales from its mining concessions in Kutai Barat in East Kalimantan, increase in equipment rental income, and additional revenue from mining services and coal trading, despite lower average selling prices of the coal it produced at its mining concession.

Gross profit margins fell 8 percentage points to 30% on the back of lower margins commanded by its coal trading and mining services business, compared to the coal sales from its cooperation contracts, which were terminated in September 2012, and its East Kalimantan mining concession.

Jakarta-headquartered Geo Energy, listed on the SGX Mainboard in October 2012, raised about US$63.7 million in net proceeds. It planned to use the proceeds for the acquisition of additional mining equipment and machinery, the construction of a jetty and barge loading facilities for the mining licences it has already obtained, potential M&A, and working capital. On the first day of trading, more than 323.2 million of its shares changed hands, and it closed at 43.5 cents, more than 33.8% above its offer price of 32.5 cents. The stock closed at 36.5 cents on Aug 28.

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Jim Rogers will buy Gold Aggressively at $1200 per Ounce

Jim Rogers on Malaysia

If you read Jim Rogers original book "Investment Biker" you will know that he has a knack for finding emerging countries ready to boom and investing before the rest of the world figures out what is going on.

Today Rogers is keen on Malaysia. Rogers likes this country because the country is rich in natural resources and also has a government that is trying to create a system that rewards the entrepreneurial and capitalist spirit.

Rogers hasn't always been interested in Malaysia, but today has investments in the country. Rogers has been involved with investments on and off in Malaysia dating back to 1985 so knows the country well.

He likes Malaysia's position in the ASEAN region near China.

To know Jim Rogers's view on Gold, read article here

Jim Rogers Will Buy Gold Aggressively at $1,200 Per Ounce

If you are contrarian by nature you might be looking at gold-related investments today.

Gold mining stocks in particular are out of favor.

Jim Rogers has been pretty sharp in making long term calls on commodity prices. The article below provides an update on Rogers thinking on gold and oil.

HardAssetsInvestor:A lot of investment banks have recently called an end to the commodities supercycle that began more than a decade ago. Do you think they’re wrong?

Jim Rogers: I'm delighted to hear that. Bull markets climb a wall of worry. I'm not quite sure where the supply is coming from that would cause the bull market to end. Maybe they know something I don’t. But when you look back at the stock bull market from 1982 to 2000, stocks collapsed in 1987, ’89, ’90, ’94, ’97, ’98. And every time, people said the bull market is over. But it wasn’t. This bull market in commodities will definitely come to an end someday. But someday is not here yet.

HAI: What signs do you look for to determine when the bull market is close to ending or has ended?

Rogers: Well, when there’s massive new supply coming on stream, then we’ll have the end of the bull market. But the world has consumed more agriculture products than it has produced for a decade now. But worse than that, we’re running out of farmers. The average age of farmers in America is 58; in Japan, it’s 66. Many of the industrial metals are now below the cost of production.

And nearly everybody has cut back dramatically on their expansion plans and investment plans. Oil reserves are declining pretty steadily around the world. We do have shale oil, which has caused a rise in supply. But that’s only in the U.S; the rest of the world has declined. Moreover, it remains to be seen how long the oil boom in the U.S. will continue.

HAI: All the talk recently has been about the recent plunge in gold. You’ve been saying, for a long time now— even when prices were hitting record highs—that you weren't going to buy until prices corrected to $1,200. Are you still planning on buying there?

Rogers: Yes, if it gets there. I bought more today [June 18], as a matter of fact. I bought a little bit, not much, over the last few days in case this was the bottom. I would not be surprised if there's another chance to buy lower later on, but I'm buying and I own it. I haven't sold any.

HAI: How do you determine whether gold is a good value or not? What has to happen for you to get completely out of gold and stay out?

Rogers: All these things will end in a bubble some day. Long bull markets always end in a bubble or mania before it’s over with. And when there's a bubble in gold, I hope I'm smart enough to get out. We haven't seen a bubble yet. Until recently, if you went around any U.S. city, you would see signs outside many jewelry stores saying “We buy gold.” And the American people line up to sell gold. Later there’ll be signs there saying, “We sell gold,” and people will be lining up to buy it in big ways. That hasn’t happened yet.

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