Friday, June 27, 2008

Minera Andes MAi.to (TNR Gold TNR.v) Exploration program increases the size of the Los Azules porphyry copper target

"SPOKANE, WA June 27 /PRNewswire-FirstCall/ - Minera Andes Inc. (TSX: MAI; US OTC: MNEAF) is pleased to report that the final results from core holes drilled during the 2007-2008 exploration field season at the Los Azules porphyry copper project confirm that the copper target is open to the north. Several positive indicators including hole AZ-08-37A drilled at the northern limit of this seasons drilling, geologic mapping, and historic drilling indicate that the copper target at Los Azules extends another 3 kilometers to the north of the drilling completed this field season (see URL for map: http://files.newswire.ca/530/ProyectLosAzules07-08.doc)."
Tnr Gold TNR.v new website design launched:

Thursday, June 19, 2008

Story of those who get caught. How many are out there?

Read the indictment: very good education about investing in modern terms:

http://www.alleyinsider.com/2008/5/bear_stear

Naked short sellers wanted!

From Jim Sinclair:

Dear Friends,
Today is proof that these people are running scared. Their target today is a message that their time has come to an end. Add to that the arrest of the Bear Stearns Hedge Fund managers for not correctly marking down their holdings and informing their investors. These events have to put these people that are committing bullying, illegal and unethical activities in the crosshairs of investors, management and the law.
Soon there will be no place to hide, no place to run and the name Anonymous has done them no good at all. The name Anonymous may well be their eventual undoing as illegal activities using such a means confirms their devious undertakings.
The major underestimation by these hedge fund operators is the nature of the old-line junior mineral management. When you push them hard they will push back harder and make it personal. They should study the history of past PDACs and how old timers can act when attacked.
Where I am concerned, today they made this personal.
There is a great deal of information available to the management of any company listed on an exchange.
The first step in determining what is happening in the short term is broker identification. Every transaction shows a broker on it with one curious twist on the TSX which allows trades to be noted as broker “Anonymous.”
That is not the stumbling block itself because you can see all the daily trades almost as they happen and the total volume of buys and sells on each trade for broker Anonymous, therein determining if this legal camouflage has been a seller on balance for that day.
This information can be obtained from www.tsx.com for companies on the Toronto Stock Exchange. Other exchanges have similar setups. It will have to be obtained by your company on www.tsx.com as info/short interest data is password protected.
When you are on the TSX homepage, click on “Market Activity” and select “Current Market.” There will be a 15-minute delay on information but you can see the broker’s activity and name including that famous broker, Anonymous.
This type of information can be obtained for all exchanges and the NASDAQ. Looking historically will be more informative as you can be assured that as the heat is turned up, procedures will change.
Knowing the broker who represents the greatest on balance selling daily or from period to period is quite easy as they will not use Anonymous often enough to camouflage that they are or have been the largest seller.
The next three documents companies need to obtain are:
The Participation List that shows all street name securities held and by whom. This document should be reviewed, as all documents should, from period to period.
The non-objecting shareholders list will show the changes in the positions of those investors. This is again reviewed from period to period. Even the major shareholders who object to their name being listed are available for the company from the same source to the shock of the hedge funds. These two items are key to knowing exactly what is occurring in your particular share.
The brokers who bought and sold list shows both percentage purchases and percentage sales.
By the comparison of all the above you are able to determine if the selling is long selling, legal short selling or unreported short selling.
It is an exercise that is common to forensic accounting, probably better done for many companies by their auditor rather than by non-accountant management such as geologists.
The next step is to retain a reputable Internet investigator as it is all out there in one form or another.
Anonymous is a nice cover name probably used by the naked short seller, but after the trade and into the statistics it loses its effective cover capacity.
We will keep that proprietary for the time being.
We live in an information world, complex of course, but not to those that specialize.
As this practice continues, your dedication to stopping the rape of shareholders must increase.
Complaining to exchanges, regulators and hiring attorneys at this point is a useless effort. Bringing the culprits out into the light is the most effective first step. Making their identity known is the goal.
The effort is to out those who are both pool raiding and those naked short selling your issue. One is conspiracy and the other is simply a crime. Identification is the first step. They will be identified and then they will be dealt with. We will come at them at every angle from rewards for information to cyber investigators and forensic accounting. Click here to read more about our efforts.
The incoming company interest in this is simply overwhelming. I would venture to say that the companies now interested in ousting these criminals represents at least 200,000 investors.
They can hide as all cowards do, but out they will come as many in the mineral industry have now dedicated their existence to this effort.
Remember, the threats you face you can overcome. The threats you run away from for any reason win.
To the management of the juniors: Never run, no matter what the message they try to communicate to you via your market is. Stockholders will support you because aggressive, dedicated and well-financed action is the only way to remove this vermin permanently. The more they speak via your market, the more you act. This is the only strategy that will protect shareholders from their reprehensible and illegal activities permanently.

Citi C has joined the club of "Financial News Makers"

"Costs linked to worsening consumer credit quality could have a meaningful impact on Citi's results for the rest of the year, Crittenden said." This is the key - what rate hike? Watch out BAC, FRE and AXP.
"UPDATE 1-Citigroup CFO sees big potential Q2 write-downs
NEW YORK, June 19 (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) could take substantial write-downs for subprime mortgages, leveraged buyout loans and other assets in the second quarter, the company's chief financial officer said on a call with investors.
In at least some of these areas, the write-downs are on track to be smaller than the first quarter, but could still be substantial, CFO Gary Crittenden said.
Costs linked to worsening consumer credit quality could have a meaningful impact on Citi's results for the rest of the year, Crittenden said.
The company is always willing to look at acquisitions, and will make them where it makes sense, but is focusing more on improving its performance, he said. (Reporting by Dan Wilchins; editing by John Wallace) "

Yamana Gold AUY Exploration Update - more goods in the ground

This is the game here: rising prices for Gold plus excellent exploration results: I do not mind to keep the goods in the vault for a while - option on gold price without time decay.
TORONTO, ONTARIO--(Marketwire - June 19, 2008) - YAMANA GOLD INC. (TSX:YRI)(NYSE:AUY)(LSE:YAU) today announced an exploration update for Gualcamayo, El Penon, Pilar de Goias and Mercedes.GUALCAMAYO, ARGENTINADrilling at Gualcamayo continued during the quarter with two underground and two surface diamond drills. The significant results show:- Potential for expanded size of QDD Lower West deposit- Improved grades compared to the original resource model- Added tonnage through increased width of the deposit

Wednesday, June 18, 2008

RBS issues global stock and credit crash alert, US Dollar is doomed.

What rates raise are they talking about?
What will happen to the dollar if FED will not raise?
Who is going intentionally to crash market in election year? Dollar is doomed, something has to give...
"The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks."


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/18/cnrbs118.xml

Sunday, June 15, 2008

Weekend reading and strategy update.

Some profit is taken on Puts positions, puts on LEH, BAC, MER, C and GM were on fire this week. All three major indexes are in a Bear flag formation as we read it. Calls were accumulated further on SLW, SSRI, AUY and LMC.
Juniors are trying to raise their head: among strongest in our stable are Suramina Resources SAX.to with new drill results, latest PP at 1.2CAD was taken by Lundin family; Nevsun Resources NSU.to "one year old rumour of Lundin interest", Roxmark Mines RMK.v has showed some life finally with new drill results.
With Congo contract negotiation process announced to start from mid July Lundin Mining LMC LUN.to is still a wild card. The guys in that African country with their contract review are treating time differently from our perception of always slipping away treasure. "Very soon and very fast" was introduced in Feb and now they will start half a year later. Lundin Mining has became trading situation now: we are watching closely formation of Double Bottom reversal and taking more Calls under 7.o USD. Protection from downside is in PUTs at 7.5USD strike. Investment positions are reduced. Lukas Lundin is coming back into spotlight with a little bit reduced ambitions for market capitalisation of Lundin Mining in a 4-5 billion range in two years time instead of 10 billion "goal" last summer. Russia as always showed its own game and apparently J/V partner there is not strong enough to protect from "consolidation in the industry" and strategic resources game announced with new legislation coming. It could be a good news if not for Lundin Mining itself then for other considerable Zinc projects. Disposition of Ozernoe with 150 mil tons with combined Zinc&Lead grade of over 5% from Lundin's book will free company's ambition in other parts of the world. Price paid for 49% of Ozernoe in Russia is putting Mantle Resources MTS.v in a very favorable position with its Akie deposit in BC Canada. Lundin Mining holds 10% in the company. Lundin also has announced that they are going to sort out their Junior mining plays and will be looking for some acquisitions again. We are closely monitoring developments in Sanu Resources SNU.v and Sunridge Gold SGC.v. Nevsun Resources NSU. v has shown some accumulating interest and could be still an acquisition play. Conerstone Capital Resources CGP.v has exited market with recent developments after fiasco in Ecuador.
Sterling Mining SRLM.ob SMQ.v has announced departure of Ray De Motte, stock was a pure disaster and is hitting new lows: more dilution is coming, but there could be still some potential so it is on our close watch by list.
TNR Gold TNR.v is continuing its careful strategy of building value from its option agreement with Xtrata Copper behind the scene of Minera Andes MAI.v recent announcement of extension of Los Azules mineralised zone. Rock bottom valuation of this company always makes us think about the most important question in investing "Are we gonna be embarrassingly rich in the future or we are already incredibly stupid?" As usual Gods will decide with our help.
Good technical observations as usual from Adam Hamilton:

http://www.gold-eagle.com/gold_digest_08/hamilton061308.html

We liked the adrenaline in the process of making money in investment banks' hang over and invested some time in a better understanding of the game:

The Accidental Investment Banker

It is good that it is a weekend: first emotion was to buy as much Puts on all these egomaniacs as you possible can, but we will proceed with usual care and cynical analyses of the future developments.

Our general observation for this week is that you can be very unhappy when prices of your beloved companies are going down only in two cases:

1. You are already fully invested at much higher levels.

2. You do not have a real understanding and/or true believe in your own judgement.

P.S. always ask yourself a question...

Thursday, June 12, 2008

Lehman Brothers LEH victim of global warming

Icebergs are melting, so investment banks and their valuations. You can not make banking business without Trust, it is gone and so will the firm...

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b4C56AD35-A0AA-485B-87D3-81171D8D5207%7d&siteid=yhoof2

Wednesday, June 11, 2008

Intel INTC, semiconductors SMH are under fire with consumers retreating to windowshoping

First signs of consumers retrenching for recession defence: demand for Tec products is cut, chips are to suffer.

"SIA lowers 2008 chip sales growth forecast
SIA lowers 2008 semiconductor sales growth forecast to 4.3 percent from 7.7 percent
SAN JOSE, Calif. (AP) -- The Semiconductor Industry Association cut its 2008 semiconductor sales growth forecast Wednesday, citing ongoing pricing pressure in memory chips, and in DRAM memory chips in particular."

Goldman GS rumor

That is why it is called Bear market: any rumor is sending stocks in further wave of selling. Biggest problem with investment banks is that you can not assign any value to them, you can not trust them any more. So when Bernanke is rising rates?
Financial shares wilt on Goldman rumor: investors

Tuesday, June 10, 2008

Citi C, Merrill MER, UBS UBS Face Monoline losses, more Hot potatoes on SALE

Bernanke is trying hard to talk the market into bull on USD, so far he has succeeded only with killing investment banks. Pour guys: they were hoping to make it without too much attention to the junk they are holding. Now they are facing the music and forced to "deleverage" or fire sell of of their assets. We will be all surprised with the real prices they are getting for all those AAA scam.
June 9 (Bloomberg) -- Citigroup Inc., Merrill Lynch & Co. and UBS AG may post losses of $10 billion on bond insurance after MBIA Inc. and Ambac Financial Group Inc. lost their top credit ratings, Oppenheimer & Co. analyst Meredith Whitney said.
MBIA and Ambac, the world's largest bond insurers, had their AAA ratings cut two levels by Standard & Poor's June 5, which trimmed ratings on more than $1 trillion of securities they guaranteed. The downgrades may limit the so-called monoline insurers' ability to write new policies, putting further pressure on earnings, she wrote today in a note to investors.
``The limited earnings potential of monolines poses a risk to the value of the insurance and hedges on the subprime-related securities provided to the banks and brokers,'' Whitney wrote. ``The collateral damage could be in excess of an additional $10 billion.''

Monday, June 09, 2008

JP MORGAN CHASE JPM is on fire today like an iceberg and melting

JP Morgan got some fever today, virus must be very contagious and spreading fast. Who would like to hold next hot potato? I will throw some ideas here: Merrill Lynch MER, Freddie Mac FRE, Bank of America BAC, Citigroup C and even best of the breed: Goldman Sachs GS - its immunity is really suspicious.
Do you know how the price for Bear was determined? How much Paulson will agree to throw to shareholders after initial screw up at 2.0 dollars. They have agreed at 10.0, but do you think anybody really knows how much does it worth? It is pure liability for JP Morgan with its toxic trading book and liabilities from SIVs to lawsuits for its hedge funds.
The value of Investment Bank its people and Brand what do you have in Bear case - Brand? Or bunch of guys created that mess.

Lehman Brothers LEH "positive" developments continued.

A lot of spin will be put to work in order to make it positive:

Lehman Loses $2.8 Billion, Plans to Raise $6 Billion

You will make your own decision, here is as always the Trust issue: is it the last write down, is it the last capital rising?

Could company survive if they had announced hypothetical "real write down" of double the announced figures, would capital be still available to them?

We can find some hint in action of more strictly regulated guys like UBS (Used to Be Smart according to some) which are writing down without any end in sight.

Royal Gold RGLD Early Warning Gold indicator

Stock is making higher highs and higher lows in recent consolidation state, chart looks to me like a good spring before break out. Fundamental considerations are good as well: rising CAPEX is no issue here and rising gold price is translating into high leverage of royalty revenue.

From the newly relaunced website:

"The Company’s royalty portfolio provides investors with a unique opportunity to capture value in the precious metals sector without incurring many of the risks associated with mine operations such as capital costs, operating costs, and environmental liabilities. The distinction between a royalty company and a mining company is very important in the current market environment where the costs to build and operate mines are rising significantly. "



Royal Gold Business Strategy



-->
"Royal Gold collaborates with mine operators, royalty owners and other business partners to acquire royalties and unlock their value. The key elements of our business strategy include:
Focus on Gold. Royal Gold will continue to be a precious metals investment vehicle focused on gold.
Royalty Business Model. Royal Gold’s lower risk business model is based on acquiring royalty interests in precious metals properties rather than engaging in costly and more complex mining operations.
Growth and Diversification. Royal Gold is determined to add to its broad base of precious metals royalties through accretive transactions, to further reduce risk and provide ample opportunity for organic growth within the portfolio.
Margin Enhancement. Royal Gold’s unique business model allows us to efficiently grow our royalty revenue without adding significant overhead costs.
Financial flexibility. Royal Gold’s position of liquidity allows us to compete for royalty acquisitions by means of a purchase, by providing financing, or by entering into a strategic exploration alliance in exchange for a royalty"

Sunday, June 08, 2008

Common Sense against naked short selling. CS

We are joining the fight for the investors' rights for fair play.

Definition http://en.wikipedia.org/wiki/Naked_short_selling

Good summary http://www.stockhouse.com/Community-News/2008/June/2/Naked-short-selling-gets-investors-motivated

Financial Sense http://www.financialsense.com/fsn/main.html Crime of the century.

Stockhouse http://www.stockhouse.com/Groups/GroupInfo.aspx?g=50176

Where it will count we will deploy our knowledge and resources to burn couple of dirty hands in the market.

Saturday, June 07, 2008

Who will go down faster: more shorted Lehman Brothers LEH, more leveraged Merrill Lynch MER or USD?

All banks are build on trust, what kind of trust can you get when system is rotten to the core? Have you ever seen banker or trader bringing his bonuses back? The system itself is build on fraud.
You will tell that it is fraud committed by trader when he builds his positions, hide losses in "off balance sheet entities", mark his winners to his own taste, get his bonus and walk away with it.
Why in the case with investment banks it is considered to be different? They made risky positions, creamed the market by taking swaps without capital needed for proper underwriting, offload trades into SIVs off balance sheets and now are sitting on FED life support even before taken them back.
In case with a trader he will go to prison, sometimes - if he get caught, but what to do with whole system build around this?
You are right: no one can afford whole system collapse. So message will be send when one more player will be taken down, its shareholders punished, trading positions undertaken by FED effectively and majority of losses unwind into this "bottomless" pocket. Market can not be ruined, how can you trade if you can not trust your counter party? All that AAA rated trash need to be sank in one fallen angel, system will get monetary pumping in the amount of at least that of normal banking multiplicator which means 10% of total losses. With some estimations of 1 trillion losses, we are talking here about creation out of thin air 100 billion dollars by FED.
USD is a chosen victim, normal voting fox will hardly notice before they go to Paris for vacation, they are not eating gold for breakfast, so they will be fed with CPI stripped of everything you are paying for. One problem here is oil and imported inflation which is coming back through the same doors where you sending your worthless "money".
But we are not in a business of politics, we are just trying not to get caught in the middle and scratching our head: who will be fallen angel apart from what used to be "reserve currency of choice".
Remarks by Jeffrey M. Lacker. President, Federal Reserve Bank of Richmond
Financial Stability and Central Banks
Distinguished Speakers Seminar European Economics and Financial Centre London, England June 05, 2008
"Maturity transformation raises the possibility that a surge in demands by liability holders to "get their money back" could overwhelm an institution's ability to liquefy the assets in its portfolio.2 This is the traditional story of bank runs, and it motivates, in part, the view I cited earlier that financial markets are inherently unstable. Since banks' assets are less liquid than their liabilities (their deposits), they could have trouble meeting the demands of a large number of depositors to "cash-in" all at once. Knowing this makes depositors likely to run if they think such a large cash-in event is looming. So a run, in this view, can become a self-fulfilling prophecy. This means that a run can occur even if the bank's assets are fundamentally sound, in the sense that if held over a longer horizon the return would be sufficient to repay liability holders in full. The reduction in realized value associated with early and perhaps disorderly liquidation of an intermediary's assets in response to such a run is a deadweight cost that presumably could be avoided if the run could be prevented."

Thursday, June 05, 2008

Yamana Gold AUY South America Focus - new advantage

After one of my babies has graduated and NNO.to Northern Orion was taken over by Yamana I took a rest and it happen to be wise/clever/just lazy, but fortunate, I mean in a sense of timing. I am glad that we have found one another at this sweet level of relationship. The main competitive advantage is "transportation cost": all Gold will be taken by local guys by 2025. Yeh, yeh it is my old story: "spin" will stay with USA, but center of the World will be rather stretched from now on. Nobody likes anymore to spin around, sorry guys...
"Yamana Gold Inc. is a Canadian-based intermediate level gold producer with significant gold production including other precious metals and copper, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, Mexico, Central America (I like hard working people in these countries, you hardly can fool them into banks play any more) and the United States. Yamana has seven operating mines and five development projects.
The company is targeting sustainable production of approximately 2.2 million gold equivalent ounces in 2012."

"Why Invest
Why Yamana?
A leader in production growth
Targeted production growth from approximately 1.2 to 1.3 million gold equivalent ounces in 2008 to approximately 2.2 million ounces in 2012

Low cost cash producer
Generating strong earnings and cash flow from low cost operations

Sustainability
Robust portfolio of seven operating mines, five development stage projects

Superior exploration and development prospects
Geographical and asset diversification in mining friendly regions near existing infrastructure; $84 million exploration budget in 2008 and 2009

Highly liquid gold vehicle
Average daily trading volume today of approximately 24 million shares on three leading stock exchanges

Leverage to gold price
Gold production unhedged

Proven experience
High performing management and operations teams
Value Proposition
Delivering value to shareholders

Why Gold?

Gold is fundamentally a currency and in periods of increasing demand for gold the upward price movements can be more rapid and larger than in other currency markets
Gold serves as a store of wealth
Gold has functional uses in jewelry and certain industrial applications which distinguishes it from other currencies
There is a finite amount of gold available unlike paper currencies
Gold is considered a safe haven during times of geopolitical uncertainty

CEO’s Message
Since our creation in 2003, we have successfully turned undervalued Brazilian properties into profitable, producing mining operations, implemented an extensive exploration program and increased reserves and resources as well as proved our operation expertise through buildings two major mines, including Chapada, Yamana’s original flag ship mine.
Last year, in 2007, we proved the value of the acquisitions done in 2006 as we became a cash flow and earnings generating company. We fortified the base for subsequent phases of growth and distinguished ourselves as the premier intermediate gold producer.
This year, we will focus on organic growth with a strong push on exploration for both the short and long term and will continue to excel and deliver on our promises. It is our vision to increase our 2008 production to approximately 1.2 million ounces which we can achieve from our existing mines and project under development. "

We have a party today on the street: one guy Merrill Lynch MER sad to buy another one - Lehman Brothers LEH

What is the reason for the new found happiness, is it housing?
Or credit quality is improving?
No, it is just one trustworthy guy sad to buy another pal.
Do they need to unwind trading positions, short the hell out of LEH by themselves or just caring about your blue sky and palms retirement - you decide.
Take a break and read another good book:
Full of Bull: Do What Wall Street Does, Not What It Says, To Make Money in the Market (Hardcover)by Stephen T. McClellan (Author)
I hope you get it: nobody knows the value of any investment bank now: one real downgrade in this mirror house and run on another "TOO BIG To FAIL" bank will establish proper valuation in 24 hours.
The real story today was made in Europe when ECB and BOE Hold rates. ECB even sad that they could think about raising next time: for sure they will not cut and now Ben is on the hard place again: another cut and USD will collapse, hold and you have to invite Greenpeace to preserve couple of investment banks for future amusement in Disney Land.

Silver Standart SSRI SSO.to transition Play

Give some credit to the big boys, they will not buy into Juniors - they are not allowed, when silver story will hit them they gonna pile up into this beauty: its market cap can allow them some room.
I am taking this as a one in a life time opportunity to come back into this silver play now: company is in transition from holding its goods safely in the ground to start printing money going into production with rising silver prices.
Company was "hit" with ABCP holdings of 45 mil which is non material at this price level.
Company is claiming to have one of the best silver valts in the ground:

Wednesday, June 04, 2008

Silverstone Resources SST.v M&A Play?

Another Junior with Silver Wheaton SLW silver stream model. Management has been taken a nap recently and stock is down below latest PP at 2.9 CAD.

The beauty of things here is that your asset base is growing even when management is sleeping:

"Silverstone Announces 130% Increase in Silver Reserves at Lundin Mining's Neves-Corvo Mine"

http://www.silverstonecorp.com/news/

If you have missed SLW below 2.0USD, check this one with all due caution as usual.

Company could become acquisition target for Silver Wheaton if share price will continue to evaluate this company so much cheaper then SLW market valuation using the same investment metrix.

Silver Wheaton SLW Buy low, Sell High continued

This guys are the best: buying all the silver streams availible when everybody are busy spotting Commodity Bubbles and advising investing in Investment Banks...

http://silverwheaton.com/main/?en&newsReleases&PHPSESSID=9d53c69042f100dcd177da356c1e9998

Global margin call LEH, MER, GS, MWD

Prepare yourselves: global margin call is coming. I hope that all Juniors are already sold from big banks own books. Cash will be the king this summer. Those who can preserve it will get fire sell valuation where it is matters with real hard assets.

If the March low will not hold wave of brutal selling will bring us into Second Bear Leg.


"Three of Wall Street's biggest banks face handing billion of dollars in collateral to their trading partners after their credit ratings were downgraded a notch on Monday, an unwelcome capital squeeze as they scramble to raise more funds.
Credit rating agency Standard & Poor's downgraded Merrill Lynch, Lehman Brothers (NYSE:LEH) and Morgan Stanley (AMEX:MWD) - three of the credit crunch's most prominent casualties - to A, A and A+ respectively, saying their profit outlooks were weakening and more writedowns were possible.
Because the downgrades make the banks less creditworthy, their trading partners in over-the-counter deals (such as credit default swaps or interest rate swaps) can ask them to post extra collateral as security."

http://us.ft.com/ftgateway/superpage.ft?news_id=fto060320081838383098

Banks fear new $5,000bn balance burden

"Accounting changes could force US banks to take thousands of billions of dollars back on to their balance sheets in the coming months in a move that is likely to curb further their lending and could push them into new capital raisings, analysts have warned."


"The off-balance sheet vehicles have been used by financial institutions to keep some assets off their balance sheets, thereby avoiding the need to hold regulatory capital against them."

Very cleaver idea, do I smell some ENRON cooking oil here? Banks have barely "sufficient" capital without this exercise. It means that they will have to raise further capital to accommodate this new risky assets, diluted earnings will go further down, guess what will happen to valuation?


http://us.ft.com/ftgateway/superpage.ft?news_id=fto060320081838383099

Lehman Brothers (LEH) may not be independent for long

My Puts are liking this idea:

http://dailybriefing.blogs.fortune.cnn.com/2008/06/04/lehman-on-the-block/

Common guys - I need some Capital to accumulate juicy juniors which are on the plates all around the market place...

Know your enemy. CS

We are in the battle here, some guys are outsiders and would like to strip you out of your money and some of them are inside: emotions, greed and fear.

But we have some help at least with external nasty gang:

The Agency Issue: Conflicts of Interest, Fraud, Corruption & Crimes Against Investors with Eric King

http://www.financialsense.com/fsn/main.html

Crime of the Century Part II: How They Scam Individual Investors

The same page.

Invest your time before your money listen for these two podcasts.

Sharpen your Sword. CS

What to do when your Puts are slowly gaining respect and you are waiting for your Juniors bids to be filled?

In such a perfect world you should get in shape and read couple of books. You should not really waste any more a single dollar before reading these couple:

"Lost on Bay street" by Alex Doulis

"The trillion dollar meltdown" by Charles Morris

Whom am I kidding...perfect world...but I am reading, reading...

Mining explained, Disclosure meditation

After couple of months and a lot of money involved I have passed another level and it will be important to share here.
My main disclosure from now on is that you have to think for yourself and I will stop telling it every post.
I will write my Diary of battle with Common Sense further, but consider it only as diary and addressed to myself, you are always welcome to share with me your thoughts thou...
If you would like to get a better understanding of Junior mining sector I will refer you the links on my blog and particularly to the
I came across recently.

Gold is heading to double bottom, Juniors are showing some life.

With so much talk about strong dollar you can even talk somebody into buying it again, gold effectively is bouncing around its long bull market support. In my positive scenario we will make double bottom within next two weeks. Silver will be more interesting this time again.

Juniors are showing some life now, bouncing from bottoms and retesting it to make double bottom.

Greenpeace should pay attention to investment banks: they are under threat - without FED life support they would be out by now.

You guess right, I was back to my old tricks: buying what nobody wants and playing down Investment and general banks and consumer related sectors.

PUTs AMR, MER, GS, LEH, C, BAC, AXP, GM, SNE, FRE, INTC, SMH, GOOG, AMZN, LMC

Calls LMC, SSRI, SLW, AUY

Juniors are under accumulation.