Daily Updates

Quotable

“But President Obama’s successful move to force BP to establish a $20 billion compensation fund that the company will have no voice in allocating — just a down payment, the president insisted — may have been the most vivid example of what he recently called his determination to step in and do ‘what individuals couldn’t do and corporations wouldn’t do.’ 

“With that display of raw arm-twisting, Mr. Obama reinvigorated a debate about the renewed reach of government power, or, alternatively, the power of government overreach.” – David Sanger, New York Times

“Government „help‟ to business is just as disastrous as government persecution… the only way a government can be of service to national prosperity is by keeping its hands off.”

“Potentially, a government is the most dangerous threat to man’s rights: it holds a legal monopoly on the use of physical force against legally disarmed victims.”

“The only power any government has is the power to crack down on criminals. Well, when there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.”

“The worst guilt is to accept an unearned guilt.” – Ayn Rand

FX Trading – Something may not wash?

Quiet so far today…but we keep thinking things still ain’t right out there; this isn’t your father’s usual “recovery” from recession.  Inflation, or the lack thereof, and the rising potential for outright deflation continue to nag at us.

….read more HERE

 

 

 

The 2010 Silver Buying Guide

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“There’s plenty we could talk about with silver, but our goal is to make money. So let’s focus on answering just two questions: Is today’s price expensive or cheap? And, what are the best silver coins, ETFs, and stocks to own?”

The 2010 Silver Buying Guide

Silver has been sizzling and causing lots of buzz in the industry. Investors are excited.

Part of the hubbub is due to its current run. Since its February 8 low, silver has roared ahead 22.4% (through June 21) and has doubled from its November 2008 low.

This excitement has spilled over into greater investment demand – especially so for coins. The U.S. Mint sold more Silver Eagles in the first quarter of this year – just over nine million – than any prior quarter in its history. The Royal Canadian Mint produced 9.7 million silver maple leafs in 2009, also a record.

Take a look at the jump in U.S. Mint coin sales since 2007, on the chart above.

Silver bullion ETFs are growing, too, experiencing a five-fold increase in metal holdings since 2006.

There’s plenty we could talk about with silver, but our goal is to make money. So let’s focus on answering just two questions: Is today’s price expensive or cheap? And, what are the best silver coins, ETFs, and stocks to own?

We have all the answers straight ahead, including lots of actionable info, so let’s jump right in…

Why Should I Buy Silver?

There are several reasons to own silver in addition to gold.

…..read much more and view charts HERE

 

Income – A 6.3% Dividend plus Growth Potential

I bought another 500 shares of Canadian Energy Services today at $15.25 after they announced an increase in their dividend from 6 cent to 8 cents a month, for a 6.3% yield.  US expansion is obviously going well (though not so well that they need that capital to handle the growth there).  Q2 is their weakest quarter because of Canadian spring break up so this tells me those numbers should be very good compared to prior years – again, due to US expansion which is not so seasonal.  And recent buyouts in the sector would translate into a $26/sh valuation for CEU-TSX.  However, the stock already has a lot of future growth priced in.  I like it because I see it as a strong defensive stock in a very volatile energy market.

I now own 2000 shares.

Weekly Chart included by Money Talks

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Hello, this is Keith Schaefer, editor and publisher of The Oil & Gas Investments Bulletin.  I started my subscription service in mid-2009 because I could see there was no place where retail investors could go to easily find which oil and gas companies were creating huge shareholder wealth by using exciting new technologies, such as horizontal drilling, fracing and 3D seismic.

These companies are increasing cash flows – and stock prices – by finding ways to get more oil and gas out of the ground.  And junior and intermediate producers – $2-$20 stocks – are leading the way.

I find the leaders in the new plays that are using these technologies.  My research is finding  higher and higher flow rates from new wells in old formations as management teams fine tune their use of these new technologies.

It’s amazing how technology is lowering operating costs – and increasing profits – for many publicly traded energy companies.

I find the ones who have the capital and the knowledge to be the fastest growing in their area – this usually means they have a large undeveloped land position in an area where either production costs are very low or production rates can be very high.  They are covered by several research analysts, so there is research support and institutional money flow behind them.

Canadian existing home sales tumbled 9.5% MoM in May (-4.3% YoY) — not really a huge surprise as an earlier report on large-city sales flagged a decline. The weakness was spread across the country with nearly 70% of cities reporting declines.

Average home prices rose 8.5% year-over-year, clearly rolling over from the double-digits gains recorded earlier in the year.  Across the country, the pricing picture is very divided — some cities in the east reporting declines while Ontario and Toronto are still seeing large increases.

The biggest thing on our worry list with respect to the Canadian housing market is the supply backdrop.  On a year-over-year basis, new listings are up over 20% and inventory of unsold homes is at 6.1 months’ supply, the highest since April 2009.  It is not just the existing housing market that has us worried. We estimate that in the new housing market, builders have been building inventories for the past 7-8 months.  On top of this, some demand has likely been pulled forward to this quarter ahead of the introduction of HST in B.C. and Ontario.

All told, this points to a much slower market in the second half of the year and in our view, it is very likely that home prices across the country will see outright declines.

 

Also in today’s issue of Breakfast with Dave – Summary HERE Full Article HERE

• While you were sleeping: A mixed performance in Asian equity markets, but the European bourses are rallying on strong economic data out of the U.K.; however, the pro-risk trade is not evident in the FX market

• Getting a grip on reality: double-dip recession risks in the U.S. have risen substantially in the past two months

• Bonds still having more fun: the general investing public is still focused on the fixed-income market — the latest mutual fund flow data shows that $4.7bln were invested in bond funds

• The outlook is one of deflation, corporate balance sheet strength and liquidity, intense volatility and ongoing sovereign credit concerns

• U.S. housing hangover: one of the first post-tax credit housing data was a huge disappointment

• Producer prices in the U.S. remains tame

• U.S. production improving but still loads of slack in the economy

• Bank of Canada’s Carney still dovish and in data-watching mode

Market Update – Stocks and Gold

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U.S. Stock Market -If I said it once I said it a thousand times, until the last line of defense was broken (two consecutive closes below 1,040 on the S & P 500) to the downside, I would continue to give the “Don’t Worry, Be Happy” crowd the benefit of the doubt that they could still stretch this bear market rally into late summer.

On June 1st, I posted the above chart and said that we could still see a right shoulder formation that would give us a bearish head and shoulders formation that could coincide with the cyclical top I’ve been forecasting for June/July 2010 since this time last year. A rally back to 10,800 – 11,000 would actually be a good thing if you’re like me and haven’t taken your bear suit off the hanger and slipped it over your self again.

The U.S. stock market guidelines I gave in my June 11th update remain.

Gold – The “Mother” of all secular bull markets continues. Remember you all owe a buck for the “Tokyo Rose Relief Fund” when we hit $1,300

Via Dennis Gartman: IS GOLD REALLY A  SEASONAL TRADE: We ran across this “seasonal” chart of gold yesterday, and  if it can be believed…and we see no reason why it shouldn’t be… then gold is making a seasonal low here in mid‐June. For a Trial Subscription go to The Gartman Letter

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Weekly Chart of Gold via Money Talks

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Back to Peter Grandich:

Note of Interest – A 50 million+ share offering of NSU comes free trading today (was done at $2.25 Cdn). It will be interesting to see it trade given that vague takeover rumors persist.

Daily Chart of NSU.TO via Money Talks

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Peter Grandich’s Things HERE

  • The most bullish pattern continues – Two steps up, one step back
  • Canada has moved so far left that if it went any further left, it would end up right
  • Is this any way to treat heroes?
  • Double standard
  • My favorite currency – From Russia with love
  • The next crisis
  • A big drag
  • Another stimulus attempt failure
  • Iran gives the world the finger – again

 

 

 

On Major Moves, Peter Grandich has been very right and not only saved many investors fortunes, but expanded them dramatically. On November 3, 2007 at the MoneyTalks Survival Conference, Peter Grandich of the Grandich Letter warned that “an unprecedented economic tsunami will hit American beginning in 2008”.   Peter advised publicly to short the US market two days from the top in October, 2007 and stayed short until the last week of October, 2008. He began to buy stocks in March 7th,  2009. He also bought oil and oil related investments near the lows after the dive from $147.
….go to visit Peter’s Website

To HERE Peter speak and others speak on Trading go HERE:
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