Special Situation - Reivew of stocks - Thanks to George and John for America
At times, there are special situations which are interesting to me. This one was pointed out by Richard Russell of Dow Theory Letters. It is a Chinese company into batteries for cells, autos, etc. They are moving into autos from the latest reports. I have bought this one over time for from $4.20 to $5.35 per share. I like to buy in smaller increments as the price increases. Dollar averaging upward is much less risky than dollars averaging as the price moves down. The latter is more like trying to catch a falling knife. Not much fun, unless the stock turn around and moves up. Deadly, if it does not!
BULM, a minor with potential, is a speculative play. It is not for those who are fearful and would lose sleep over an investment of this type. It has the potential of great profit as gold increases in price over time. It is not solely dependent upon gold, but has other minerals, as well. I have taken a position in this and may buy more in small increments (2000 shares) as (and if) the price continues to rise. I will be ready to sell half of my holdings if it reaches a double. That will give me the seed dollars for other investments.
As we begin today, gold is at 948.30 on an up tick. It has been higher today, dropped a bit and seems to be climbing again. Here is the GLD graph which serves as an up to date proxy for gold.
GLD has been in a wide trading range (red trend lines) since about June 8. It has been very volatile. From a technical perspective, the graph shows very strong performance with the prices well above the 50 and 200 moving averages. The black trend lines reveal the formation of a wedge from which there should be a break out. Which way is the question, the answer for which we must wait as the wedge forms or breaks down.
In contrast to the strong graph on GLD, we see the example of a very poor graph for the US Dollar, below. The dollar is locked in a long term bear trend from which we see no end as the Federal Reserve and Federal Government continues to be on a path of destruction of the dollar to "save" the economy and grab more central control. The battle cry from Washington is "Damn the dollar, stimulate and spend full speed ahead!" The dollar is well below the 50 and 200 day moving averages. Worst than that, the 50 day moving average is far below the 200 day. Thus, there seems nothing more than little upward bursts of strength from time to time to keep investors interested in the dollar and lending to support our governmental spending binge.
Below is the graph of Silver Wheaton: a star performer. Here is an example of bull market stock which is tracking the upward trend of silver in a big way. Not only is SLW in a rather well defined upward trend (black lines), but there is a clearly defined "W" within the trend which indicates further upward move. Note that the bottom right "V" of the "W" bounced off the lower trend line rather strongly. I like that move and consider it very positive for SLW. I am pleased to have it as a core holding.
Both Harmony and DRD Gold are giving us a bit of heart burn presently. HMY, particularly, is below its 50 and 200 day moving averages and the 50 day is below the 200 day. That is not encouraging, at all. DROOY is in a similar situation. I am still holding both of these and look forward to higher gold prices for them to move higher.
Below, look at the graph of a healthy gold miner, IAMGold. This is a strongly positive graph. IAG is a solid miner and does well most of the time. The trend since early July (red lines) has been upward and the shorter trend in black lines has given us an even greater upward move. This is another of my core holdings.
China has slowed its purchases of US debt and is spending dollars from its vast reserve of dollar buying up resource companies all around the world. They have made many purchase in Africa, Central & South America, and Canada. Also, they are using some of these dollars to build more infrastructure.
Europe and China have become the largest exporters in the world. Europe joined in just this month. The recovery in Europe seems to be going better than ours. We are still not out of the depression with 20+% unemployment. The housing market bust has come to San Antonio as I see many more "For Sale" signs out than just last month. Other parts of America are still struggling with the popped bubble worse than here. Commercial real estate is suffering as well. The delinquent payments and foreclosures are relentlessly marching to higher numbers.
We must still remind ourselves that we must turn back to the Lord and His way in families and churches before He will remove His judgment upon our nation. We need leaders who will call the nation to repentance. Even the pagan nation of Nineveh was spared God's wrath when the king repented and called the people to repentance after Jonah presented God's message to them. The Sovereign God of all is the One through His providence gave us These United States of America. Our founding fathers were not all Christian, but the prevailing influence was definitely Christian based upon the comments of John Calvin in the Geneva Bible. George Washington is aptly called, "The Father of our nation," because the Lord called him and preserved him for this task. Perhaps, we should recognize John Calvin as the "Grandfather of our nation." Calvin's view of Scripture and the Civil Magistrate paved the way for a Godly revolution unlike the abomination of the French and later the Russian revolutions. Praise God daily for His provision. America can again become the light to the world if we will return to Him in stead of seeing the Federal Government as our messiah.
Best to each, Doug
BULM, a minor with potential, is a speculative play. It is not for those who are fearful and would lose sleep over an investment of this type. It has the potential of great profit as gold increases in price over time. It is not solely dependent upon gold, but has other minerals, as well. I have taken a position in this and may buy more in small increments (2000 shares) as (and if) the price continues to rise. I will be ready to sell half of my holdings if it reaches a double. That will give me the seed dollars for other investments.
As we begin today, gold is at 948.30 on an up tick. It has been higher today, dropped a bit and seems to be climbing again. Here is the GLD graph which serves as an up to date proxy for gold.
GLD has been in a wide trading range (red trend lines) since about June 8. It has been very volatile. From a technical perspective, the graph shows very strong performance with the prices well above the 50 and 200 moving averages. The black trend lines reveal the formation of a wedge from which there should be a break out. Which way is the question, the answer for which we must wait as the wedge forms or breaks down.
In contrast to the strong graph on GLD, we see the example of a very poor graph for the US Dollar, below. The dollar is locked in a long term bear trend from which we see no end as the Federal Reserve and Federal Government continues to be on a path of destruction of the dollar to "save" the economy and grab more central control. The battle cry from Washington is "Damn the dollar, stimulate and spend full speed ahead!" The dollar is well below the 50 and 200 day moving averages. Worst than that, the 50 day moving average is far below the 200 day. Thus, there seems nothing more than little upward bursts of strength from time to time to keep investors interested in the dollar and lending to support our governmental spending binge.
Below is the graph of Silver Wheaton: a star performer. Here is an example of bull market stock which is tracking the upward trend of silver in a big way. Not only is SLW in a rather well defined upward trend (black lines), but there is a clearly defined "W" within the trend which indicates further upward move. Note that the bottom right "V" of the "W" bounced off the lower trend line rather strongly. I like that move and consider it very positive for SLW. I am pleased to have it as a core holding.
Both Harmony and DRD Gold are giving us a bit of heart burn presently. HMY, particularly, is below its 50 and 200 day moving averages and the 50 day is below the 200 day. That is not encouraging, at all. DROOY is in a similar situation. I am still holding both of these and look forward to higher gold prices for them to move higher.
Below, look at the graph of a healthy gold miner, IAMGold. This is a strongly positive graph. IAG is a solid miner and does well most of the time. The trend since early July (red lines) has been upward and the shorter trend in black lines has given us an even greater upward move. This is another of my core holdings.
China has slowed its purchases of US debt and is spending dollars from its vast reserve of dollar buying up resource companies all around the world. They have made many purchase in Africa, Central & South America, and Canada. Also, they are using some of these dollars to build more infrastructure.Europe and China have become the largest exporters in the world. Europe joined in just this month. The recovery in Europe seems to be going better than ours. We are still not out of the depression with 20+% unemployment. The housing market bust has come to San Antonio as I see many more "For Sale" signs out than just last month. Other parts of America are still struggling with the popped bubble worse than here. Commercial real estate is suffering as well. The delinquent payments and foreclosures are relentlessly marching to higher numbers.
We must still remind ourselves that we must turn back to the Lord and His way in families and churches before He will remove His judgment upon our nation. We need leaders who will call the nation to repentance. Even the pagan nation of Nineveh was spared God's wrath when the king repented and called the people to repentance after Jonah presented God's message to them. The Sovereign God of all is the One through His providence gave us These United States of America. Our founding fathers were not all Christian, but the prevailing influence was definitely Christian based upon the comments of John Calvin in the Geneva Bible. George Washington is aptly called, "The Father of our nation," because the Lord called him and preserved him for this task. Perhaps, we should recognize John Calvin as the "Grandfather of our nation." Calvin's view of Scripture and the Civil Magistrate paved the way for a Godly revolution unlike the abomination of the French and later the Russian revolutions. Praise God daily for His provision. America can again become the light to the world if we will return to Him in stead of seeing the Federal Government as our messiah.
Best to each, Doug
posted by Doug @ 10:01 AM
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