Pump or bash is your call, the pm stocks are down so I am buying. I believe the way to win the game is buy low sell high. I am financing my PM related purchases with sky high S&P stocks that I am selling.
I do not believe the question Gregory asked had anything to do with going to the store to buy groceries, but rather which will store value, gold or cash dollars. With dollars, you are putting your faith in the federal reserve to control the number of dollars in circulation thus your wealth. The only way for dollars to hold value is for inflation to be zero as congress has mandated to the fed. The fed in their wisdom has decided that 2% inflation is stabile so you can count on your dollars losing 2% in value every year on average and if the fed gets it wrong, they are sure to err on the side of more inflation. Gold on the other hand has over time been a store of value.
Money is defined as a store of value and medium of exchange. Dollars do not store value and gold is not a medium of exchange at least for now, so technically neither is money. I keep cash obviously for paying the bills, but I certainly do not keep it for a store of value.
Just because you cannot buy groceries with gold does not mean you should not own some. You cannot buy groceries with your car or the fence around a persons home, but that does not mean they have no value and should not be owned.
Given the above, I do not believe the choice you claim is all that obvious.
Nearly 3000 Dec $5 calls traded today and 2700 Dec $5 puts traded today. As you say Parisclockman, somebody knows about the something in the works.
We are already doing this exact "proposal" by different name(s): welfare, free medicine, food stamps, housing assistance and the list goes on. It does not work and will not work just because the fed does it, why? Because it does not get to the root problems we have created and perpetuate. We are misallocating resources by not purging failing businesses and non performing debts; we are not addressing problems of the medical monopoly or better cartel; we are encouraging sloth by paying more in welfare than a person entering the work force earns; we do not pay a decent rent on savings, namely interest so we have capital to invest and retired people who saved for retirement to have an income to spend; and the list goes on. Basically these folks think we can solve our problems by redistributing money from the folks that earn it to those that do not, or by punishing the work ethic and rewarding sloth. That is more of the existing problem! Good for PM's and PM stocks though.
Short interest on NASDAQ site reported at 8,379,820 as of end of July for GG. Where do you get your numbers? I am thinking the stock goes up as well, but not so much from a short squeeze but more from product price appreciation. Bye the way, I have asked you many times for your information source on short positions and you have failed to give it or pulled the post. Maybe this time you will show a little credibility.
The great reflector of world economic health, Dr. Copper, has gone from $4.50 in first half 2011 steadily down to roughly $3.00 now. That is not an economic recovery, it is recession and if one considers the hidden inflation caused by the printing done by the major western central banks, it is depression. The piper will be paid, question is when.
I did not mean to imply anything with respect to the veracity of their upgrade, just that they are talking their book and it should be disclosed.
Owner Name Date Shared Held Change (Shares) Change (%) Value (in 1,000s) TD ASSET MANAGEMENT INC 03/31/2014 13,352,645 (354,800) (2.59) 16,157 Sorry the tabs did not come through but the info is taken from the NASDAQ web site.
As of March 31, TD Asset management was the largest LSG shareholder. Can you say talking your book or conflict of interest?
The more I think about this, the more I wonder if holding is a good idea. There is no more profit for the combined companies except for the accounting expense saved. There should be more flexibility to finance deals that may or may not be good in the long term, but almost always cause a hit on an acquiring stock short term, and the company loses the tax advantage for the portion that was within the MLP's.
I believe your assumption for 6% yield may be more representative of the tax advantaged MLP's while the regular companies is quite a bit lower, more like 4.5%. If that is true, based on your valuation of the company based on dividend yield, one could expect KMI to be more like $44 or $45 and increasing at 10% per year for a few years. I hold KMR and for now plan to keep it through the merger. At this point pre-market, KMR should be $105 and it is trading about $100.
Looking at NASDAQ site, institutional ownership at about 11% (most reports end of first quarter). LSG should get more notice in the media and with institutions as the value goes up and the buying could create a virtuous cycle for longs. Also, looking at level II quotes, it appears there is 15,000 plus share sell orders at $1.21 that may take a while to grind away. Still a very good day up 4 cents thus far.
When you said, "Not saying that it won't happen, but SLW doesn't appear to want to stay below $26"; that may have been the simplest and most wise statement on the board in some time. We got a bit below $26 and bingo, up she goes, about $26.50 as I type.
It probably has to do with LGCUF news reducing 2014 guidance thus SAND's royalty stream and the private placement of 19.5 million shares to SAND at a $1.02 or 11 cents over the current trade. Looks like a bailout to me, but I do not have all the facts.
Scott Wright at Safehaven punctuation commercial has a good article today on LSG, very much worth the read
Early part of last March, I was thinking the same thing essentially and then we got a bounce and I was feeling quite confident SLW was going to move higher. The EW TA folks were posting prediction for a downturn. They were right and I was wrong. Today, they are predicting a downturn and I am suggesting that the $25 to $26 support generated last February and early March may hold as it essentially has for the month of July and again today. As support for the EW TA folks, there is a gap between $23.65 and about $25.91 that has yet to be filled, and there is a very good possibility that it will be filled. Long term I am quite confident the trend has turn toward higher PM and PM stock prices so a mistake on the long side can be held for eventual profit. Not the case for a wrong call on the short side, so for me, when I do short, I do it with puts to define the downside exposure.
I think you have more guts than a government mule shorting here with seasonal trends working against you and at least some tech indicators suggesting $26 might hold. I actually hope you do well as I have some dry powder to burn. If SLW gets into the teens, I will be buying call options
If you have a squint at a six month candlestick chart with daily time division, the late February early March time frame developed a horizontal resistance support between $25 and $26. The S/R at $26 has been tested two or three times this month and pretty much held, so I would not be surprised to see it hold and and a new S/R line or channel if you prefer defined by the predominate narrow July trading range, roughly $26 to $27. While that is probably the most bullish look to be made for the short term, I am of the opinion that we have turned the corner on PM's. Even if the pessimistic case EW TA analysis would suggest $24.75 or lower, I believe that SLW will end next month at a higher price than it ended last month. In these times of uncertainty politically, and with the mismanagement of the fiscal policy and monetary policy in the US, news events are going to spring up that override TA price prediction, particularly to the downside. For these reasons, I have been very cautious with with any bearish options, preferring to wait for a perceived low and take a bullish position. Also, given the times we live in, I believe the potential for a large move up is much greater than a large move down, but certainly either is possible.
Kaz has contributed many original thoughts over time on this board, many of which have proved to be rather noteworthy. I find your name calling to be less than courteous and disrespectful of a dissenting point of view. A quick review of your past messages shows this is a character trait you posses and spread. I do not need mindless diatribe, thus it is ignore for you.