Tuesday, February 23, 2010

F-Armaggedon's "Hard Rocks And Hard Shocks"

I had the chance to read the latest strategy journal by Don Coxe last night. Here are some interesting quotes:
Wall Street’s words of repentance and its acceptance of meaningful reform are as impressive and reliable as the investment quality of the average sub-prime CDO...

Despite that the technicals of US regional banks are improving on relative basis vs S&P500. Click on chart to enlarge, courtesy of Coxe Advisors, BMO Capital Markets.

This is addressed to Greeks:
Athenian democracy disappeared 23 centuries ago, and only returned when Truman intervened after World War II to prevent the USSR from taking over. Greece’s democratic performance since then suggests that the genes of Pericles and Solon are extinct.

Intimated with gold bugs, that are also gamed by the psychology of scarcity :
Aaron Regent, Barrick’s market-savvy new CEO, comes from a base metals background at Falconbridge. He helped fuel the flames of desire (after he had shrewdly convinced Barrick to pull in its huge hedges) by touching and stroking a hitherto-undiscovered erogenous zone in gold bugs: peak gold— which could be the latest Big Thing since peak oil.
This on responsible mining:
Therefore, responsible mining means mining some lower-grade ore during periods of high metal prices to expand mine lives. This not only serves the community, it protects the value of the company’s biggest asset—the mine. This was illustrated a while back when Freeport McMoRan announced a slight reduction in its copper and gold output, which meant earnings came in modestly below the estimates of some Street analysts. Some of these responded with criticisms of management’s “failure to execute,” and argued that shareholders should reconsider their approach to the stock.
Equity vs Stuff:
...investors should overweight the gold mines and underweight the bullion if they are bullish on the metal, and reverse the strategy if they turn bearish on the metal.
More of trading type conclusions available at The Pragmatic Capitalist, but so far I have not seen the full report available freely on web ...

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