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Market Updates & Excellent Buys

Posted: 3/6/2012 7:47 AM

Market Updates & Excellent Buys 


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Now is the time to get into the gold/silver action. With prices down over 15% since last week, now is a prudent time to get involved. Silvercorp and KGC are both excellent buys as well as the phsical. You will not see silver and gold at these weak of prices for long. It has been sold off from the recent Bernanke speech (regardless if it was manipulation or not, it presents an excellent time to get in). This buying window will not last long and suggest picking up a couple hundred shares of each of the above companies as they are the most undervalued in the mining market. SVM (Silvercorp) carries no debt, no hedging, has around 65 million ounces of silver in Proven & Probable reserves, and has negative cost per silver ounce... i.e. meaning it doesn't cost them anything to mine silver. Silvercorp has dropped below the 7$ trading range and is a bargain at this level. It will be headed to around 6.50$ today as long as silver stays at this depressed of a level. If you can get shares at anything under 7.50$, I would initiate your first tranche.

 

KGC (Kinross) is in the same boat i.e. 62 million ounces of gold in Proven & Probable reserves, no debt, excellent management team, and is poised to become the biggest gold producer in the world in the next few years. Buy now to get ahead of the crowd as I am certain these are great buys. As with it's price action it is under 11$ and I consider anything under 13$ a buy for this company as they and SVM are being undervalued by the market.

 

Both of these companies are Canadian owned but are traded on both the TSX and NYSE. This is a bonus buy b/c they are Canadian and it diversifies your risk even more as you buy internationally. Canadian miners are historically the best PM miners in the world.

 

Disclaimer: I do own the above mentioned stocks and do not intend to sell within the next 72 hours. I will be buying more shares in the next 48 hours. I currently have 2100 shares of SVM and 500 shares of KGC.

State of Florida v. Globe communications Corp. 648 So. 2d 110 (Fla 1994) found the Florida Rape Shield Laws unconstitutional.
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Posted: 3/8/2012 12:43 PM

Re: Market Updates & Excellent Buys 


Well, with the risk on atmosphere in Europe concerning the Greek bond mess, it is looking more likely that there will be agreement with the PSI deal.

I still see a couple macroeconomic shocks concerning Spain, Portugal, and Ireland that will need more funding in the future... I put a 45% chance that Ireland will need further assistance and Spain/Portugal are at about 85% chance.

International:

In further market news, Japan has continued to contract with a -.5% GDP contraction in Q4 vs an expected -.3%. The Fukushima disaster continues to be a drag on the Japanese economy with soaring imports rising to record levels in the utility fields as the energy gap is still unresolved.

Further contaction in Australia and China have shown that the once dominant Chinese economy is no longer going to see 10% GDP growth for the rest of the decade as the mean target is 6-7% and a recently revised downward GDP estimate from 8% to 7.5% put a damper on trading activity throughout the beginning of this week.

US Federal Reserve:

It is looking more and more likely that we will see yet another reserve injection, sterilized or unsterilized. Whichever one it turns out will not change the long-term picture and will be intended to bring down long term mortgage rates as they have seen recent bips up. This injuection will most likely be around the magnitude of $750 Billion and will give equities a boost as more supply of money results in higher asset prices.

This injection will come at much quicker pace if war with Iran or Syria is to happen anytime soon (full scale war, as the US is already supplying smaller kinetic activity in the region).

International Central Banks:

In other central bank news. The ECB's balance sheet is now at an astounding $3 Trillion and matches the US Fed's balance sheet. The BOE has kept interest rates at an expected unchanged .5% as the ECB holds its interest rates at an expected unchanged 1.00%.

US Headlines:

US Challenger Job Cuts (Feb) Y/Y 51.7K vs. Prev. 53.5K
US planned job cuts in 2012 are concentrated in the consumer production and transportation sectors

Oil & Gas News:

Barclays have said the US is more likely than not to release oil from the Strategic Petroleum Reserve (SPR) as tension in the Middle East drives prices higher. 

Bank of America has said they see an upside to the UK’s winter natural gas prices. 
Royal Dutch Shell and US natural gas producers have said that low prices may slow an expansion in North American onshore shale production. 

The US Senate could vote as early as today on competing plans for the future of the Keystone XL crude oil pipeline as part of a highway funding bill, according to Majority Leader Reid.

State of Florida v. Globe communications Corp. 648 So. 2d 110 (Fla 1994) found the Florida Rape Shield Laws unconstitutional.
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Posted: 3/11/2012 9:25 PM

RE: Market Updates & Excellent Buys 


better off buying SCCO with a more attractive yield, or SWC which has some of the most efficient management in the business.
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