Hello Pezz, Today’s Report:
I went bullish, and completed the following actions by broker dutifully placing limit orders that were stepped on while I slept:
(i) Purchased Faircourt Gold finance.yahoo.com at CAD 9.00 (see rationale below)
(ii) Shorted UltraShort China finance.yahoo.com FXP Put March strike 80 @ US$ 11.80 to fund 2009 tuition for coconut (may add equivalent to physical gold, to assure affordability of education)
(iii) Shorted UltraShort Financial finance.yahoo.com SKF Put April strike 100 @ US$ 12.70 to prepare for 2009-2010 travels for coconut (may use proceeds to buy energy or Swiss money, to lock-in the travel pricing)
(iv) Shorted UltraShort Real Estate finance.yahoo.com Put April strike 105 @ US$ 12.60 to support 2008 - 2012 feeding of same coconut (may use proceeds to buy more ag commodities, to lock in the freshness)
Regarding item #1, I am told by one I respect greatly that, and I quote verbatim :
Fund Features:
• Exposure to leading Global Gold Companies
• Strong Fundamentals for Gold
• Reduced Volatility through Option Writing
• Initial Targeted Monthly Distribution 5%
Core Portfolio:
Agnico Eagle Mines Limited Anglogold Ashanti Ltd.
Barrick Gold Corporation Goldcorp
Gold Fields Limited Harmony Gold Mining Company Limited
Kinross Gold Corporation Newmont Mining Corporation
Yamana Gold Inc. Lihir Gold Limited
Options Strategy:
• Gold stocks maintain high relative volatility
• Distribution Target requires writing on low percentage of the portfolio
• Covered Writing reduces Volatility
• Premiums earned can be re-invested into NAV after distribution target achieved
ticker fgx.to
issued $10 w/5% yield in nov 07
nav jan 22 of $10.07
closed today $8.01, 25% discount to nav
6% yield
holds gold companies, kinross, newmont, barrick
this is the best yielding precious metal play I can find
faircourtassetmgt.com
Regarding items 2 – 4, I am bullish on China and America as they lead the world spiraling on the dance floor, in embrace, until decoupling, if decoupling.
Additionally, A side note on China
I wrote the following note to Maurice back in April of 2006
Message 22397856
and now, you do see that the gold mines are shutting down, at least in s.africa, due to high price of coal in china – I had always contended that investing in gold and in china is the same trade. Any how, now that mines are shutting down, my 9999 purity mine below ground in Money Rock Hong Kong is more comfortable, powered by coal-generated electricity which boosts demand for s.african coal, which ensures continued cost boost for s.african gold, which assures additional price support for my 9999 purity mine – a virtuous circle.
But I digress.
At that time, a pen pal e-mailed me this note:
Today i finally read the book that you have often talked about - Fiat Money Inflation in France ... It is horrifying. The future is going to be ugly and I am not prepared enough.
To which I replied,
what the fuk do you think i have been so worried about :0)
and so, the solution is clear
au, ag, pt, pd, u, all on the periodic table
oil away from windfall tax jurisdiction
oil sand in canada
and absolutely zero usd allocation
do not count on social security and forget about medicare/medicaid
the shit in that book happened, and happened often enough
argentina was the last wipeout
zimbabwe is twisting and turning
small fries
but, as soros guessed, it may happen at the center, epi-centered on nyc
good book though, very entertaining, and quite easy to read
i read it several times, like a good agatha christie whodunit
Yesterday I got a follow on to above discussion
Senor
was in your part of the world - Shanghai / beijing earlier this week - Met with a fair number of company CEOs and CFOs of public listed companies. Most guys were growth, china EM etc but felt a lot of fear from the property developers. I got a sense that the things have really slowed down for them and they are all caught too long and too leveraged in the residential/commercial property sector. Also shocking to me was their boast or confession that 50% of the property buyers from them were investors. While still less than Miami - it is disturbing.
Is my interpretation correct ? is the govt succeeding in slowing down this market that quickly - do you think it hits the overall economy as well?
Cheers
I responded
property developers are dead, only walking
government infrastructure programs calling on massive cement supplies, while government cooling measures shutting down illegal and small cement plants, even as government restricts credit
money lending by private outfits to developers going at 18% per annum, fully secured, and at times double and triple secured against other assets
many shenzhen-based manufacturers will supposed go belly up after chinese new years due to cost rise and price cap
buy fxp and then buy more
when things gets bad, go the other way, as government will inevitably loosen up something terrible
He wrote back,
So this is even worse than I thought. No wonder all those guys were so desperate.
One guy was crying that he has been approved by Shanghai for a few hundred mm usd project - but beijing would not let him bring the money in from HK and would not let any local bank lend him the money either.
All this is fun. Take care
I finished up
desperation is genuine, and regret is sincere
but as time progresses, still more genuine desperation and much more sincere regret will be squeezed out of those guys, bug the green ooze from bugs that had been stepped on
a few weeks back i had an officialdom who asked me whether i wanted to take over a shell company on the mainland with special approval for inward remittance quota of US$ 30 mil, which could then be used by the speculators trapped as a way to bring moolah from offshore
it required an immediate inward remittance to shell co a/c of 10 mil ... too much and way too dangerous to go in counter-alignment of the Force
I do not know of any market that fails to go down when its officialdom wants it to go down
also, in such an arena, the officialdom can raid and pillage the guys who are long on land and short on cement, cash, and ways out of mess
better than shooting fish in a barrel
easier
as the barrel is put on the hot stove directly and sauce and herbs added
as far as i am concerned there is no need to participate in the 18% lending business to desperados
there are other ways to cook the fish
there should be a lot of fancy cars and jazzy women and snazzy homes coming back on the market on chinese mainland but also in hong kong where some of those turkeys kept some goods and women and cars
i am an equal opportunity looter
time for country cousins to learn how it is really done in the grownup world ;0)
no time to learn, always time to die, and now is time to start screaming :0)
biblical justice time |
