smm and the dines report

"Market Monitor" - James Dines, Editor & Publisher of the "Dines Letter"
Wednesday, October 05, 2005

PAUL KANGAS: My guest market monitor this week is James Dines, editor and publisher of the popular "Dines Letter" based in Belvedere, California. Jim, welcome back to NIGHTLY BUSINESS REPORT.

JAMES DINES, EDITOR, "THE DINES LETTER": Hey, Paul how you doing?

KANGAS: Just fine thanks. The stock market this week has defied logic in no small way with the Dow swinging up and down in the triple digits. What is going on here?

DINES: Well, I`ve got some good news for you. I`m looking forward to a very strong year-end rally. I don`t think it`s begun yet. As you know, you read my letter. We turned bearish this summer and the market has moved on very nicely. I`ve asked my followers to have some attack capital ready for it and I think sometime very soon, we`ll be flashing a new buy signal.

KANGAS: What signal will we get. What will trigger that?

DINES: The market`s getting very oversold and also we`re getting the level of pessimism we need.

KANGAS: OK, simple enough. With us -- when you were last with us in June of 2004, you had four buy recommendations for our viewers. Let`s see how they`ve done. Cameco, that`s the uranium stock. It`s up 175 percent. What`s going on there?

DINES: I guess more buyers then sellers, Paul.

KANGAS: I guess so.

DINES: That`s the world`s largest uranium company and I` very bullish on that stock.

KANGAS: And you`re very bullish on the uranium group. That`s the group that you feel is probably the same thing as the Internet was ten years ago.

DINES: That`s right. I sat here and you interviewed me in this very chair ten years ago at the dawn of the Internet age and I said to you that the Internet`s the biggest thing I`d ever seen and people got rich following me into them and I`m telling you that uranium is going to be bigger than the Internet, possibly by an order of magnitude.

KANGAS: OK, we`ll have some more on that in just a moment. Let`s look at some of these other recommendations. The silver stock Apex didn`t do too well, 9.1 percent and we`ll get into that I`m sure. We`ll have some more comments. Sirius Satellite radio rather nicely higher, 88 percent. Good call there. And Whole Foods market, one of your favorites is up 57.4 percent. Those were three out of four super choices and I compliment you on them Jim.

DINES: Thank you.

KANGAS: Now do you have some new recommendations. I know, let`s talk a little bit more about these uranium stocks.

DINES: Well, I`ve had -- there`s only one really large blue good chip in the uraniums and that`s the one the institutions are going to swarm all over and that`s Cameco. So I`m re-recommending that one but with my subscribers, I`ve picked up 11 small ones also that I call Chihuahuas and my favorite in that group right now is Laramide and the reason I like it is because they`ve purchased all of Homestake Mining`s uranium properties from Barak and second, they`ve got the Westmoreland property in Australia. I think - this one`s already up 71,400 percent and I think it`s going to go much higher.

KANGAS: So in other words, it was just pennies a while back. We couldn`t get a chart on it, but up about $5 now and you still like it here.

DINES: I do. That one and Megauranium are two of my favorites right now.

KANGAS: OK and so uranium is the replacement for the Internet.

DINES: Yes.

KANGAS: OK, simple enough. How about another new recommendation?

DINES: Well, I like Whole Foods. My letter was one of the pioneers. I`m re-recommending it. I recommended it on the show a number of times over the years. It`s gone from 5 to 130 and I think it`s going to go much higher and we cover health a lot in my newsletter and I think this organic foods are the wave of the future and I think this will lead the next market rally or be a leader in that. In fact photography is another one of my loves, along with organic food and we`ve just come out with a nice picture book, a photography book, photocyclops.com.

KANGAS: The picture of Whole Foods chart is very nice indeed. You have -- e have time for one more recommendation.

DINES: I like Apex Silver. They`ve got half a billion pounds - ounces of silver and they`ve got four billion pounds of lead and eight billion pounds of zinc. It`s a value play and I think that`s a great long-term holding.

KANGAS: Fair enough. Do you own all these stocks or any of them?

DINES: I do. My money`s where my mouth is.

KANGAS: OK, so three out of the four that you recommended when you were last with us you still like and Sirius I guess you`ve gotten out of.

DINES: Yes.

KANGAS: OK, we have 20 seconds lift. And final thoughts for our viewers?

DINES: Yes, two thoughts. Number one, we`ve got a parade of hurricanes warning of global warning and I think you should always remember that nature bats last. And second, life is short so always have dessert first.

KANGAS: OK. Thank you. Jim Dines, philosopher, super philosopher. Thanks very much. My guest James Dines of the "Dines Letter."


Dines pick is SMM