Loading ...Ur-Energy (URG) may be the investment of the decade. Last time I felt this strong regarding an investment was betting against New Century (NEW) and American Home Mortgage (AHM) in late 2006. NEW and AHM both had nearly all their business based on providing ultra-risky mortgages. Long story short, I had over 1000% return in […]
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Not surprisingly, stocks, bonds, housing, companies, IPOs, commodities and services are all over valued. Money is flowing to the top 1% as more and more people every day join the low income class. The millionaires are starting to feel poor, considering what five million can buy you in LA or NY. Some millionaires are even upset because their dream car, a Lamborghini Veneno, is not affordable. I don’t even want to consider what regular Joe earning 35K a year are feeling. […] Typically, we would like to see more capitulation and consolidation in a sector prior to investing in that sector. There is a real change (sense big players are still bearish on gold) that gold prices continue to go down dragging IAGs price with it. However, with the government shutdown seemingly in the bag, waiting is a luxury which we do not have. Today is probably the best day to buy gold stocks and IAG is the best one to own! When some of the big boys realize that they should be buying gold and gold stocks, the price move upward will be violent. Like always, we recommend you don’t take our word for it and do your own research. […] In recent weeks, many folks had asked us what we thought of Apple. Is Apple a good long term investment or not? The quick answer is NO! Apple’s ability to innovate and more importantly brand died when Steve Jobs died. This was very apparent by Tim Cook’s first major decision, to cannibalize two Apple products with the launch of IPad Mini. Now, when what Apple needs is a new innovative home-run product, he launches cheap IPhone’s. In his short time as the CEO, he has managed to ruin both the profit margin and the brand. Apple was a high end product for high end people. If you wanted an Apple, you had to pay for an Apple. Now, Apple offers a trendy phone that has less freedom than many of its competitors. “Timme” is choosing to compete in a though low profit market. […] The dust has now settled, and the situation is becoming clearer. Everyone that wanted out is out, everyone that was shaky is out, and everyone who was bullish panic-sold out. The sellers have left the building and big money has stepped to build a new floor on the stock price. Perfect time to buy, catch a little retracement and get out before the verdict is out whether or not the floor was set too low or too high. But do we really want out now that I’m in? Oh hell no! After extensive analysis these last few days, it was discovered that one of those 3 stocks is a gem. When analyzing IPI (Intrepid Potash Inc.), we accidently stumbled into those stock opportunities that just make you giggle. First off, we could only find ONE reason to sell IPI, and that was Uralkali released information (which is old information and definitely priced in). However, we found many reasons why IPI is a short, medium and long term opportunity. The charts are all bullish. The MACD, MFI, ROC, RSI, slow stochastic, fast stochastic, volume, and Vol+MA all indicated bullishness. As a conservative investor, who is wrong 1 out of 100 trades, charts alone aren’t a good enough reason for us to buy. You see, at Alphas Edge, there are stringent rules and guidelines that greatly improve the odds of making money, and we follow them. So we started to research with the goal of quantifying the future for Intrepid Potash and what we found pleased us. They have a few large scale projects that are expected to greatly increase production and at the same time reduce production cost. That smells like money to us. But don’t take our word for it, do you own research. […] After 10 months of stock market recovery, it seems that we are hitting resistance. Many have had their fingers on the sell/dump stock trigger for the last 2 months. All they are waiting for is the first sign of the Fed raising rates or removing liquidity from the system. Bernanke however has sense this panic and have over communicated to the market over and over that there is no plan for raising rates in the near future. The economic news however is starting to look dim again. You just can’t keep firing people to increase profits. At some point, no one will have a job, no taxes will be collected and the whole system collapses. Mid 2010 we will be experiencing the first wave of the Arm mortgage time bombs that are about to explode. These diabolical mortgages will peak its destructive power in 2011. It is safe to say that house prices aren’t going to go anywhere any time soon. […] Some Wall Street “personalities” are trying their hardest to pump the market back up pointing to whatever good data they can find. Unfortunately, for each data found there is a statement disclosed between the lines that completely negates it. For example, LEN went up 12% yesterday on news that the company earned 19 cents a share (although $1.50 something of that was a tax rebate from carrying loses back eons, the Chris Dodd affect). Without the tax credit, the company would of have reported a 1.30 loss…ouch. Today’s unemployment data was very similar. There was the strong sign of an improvement in the employment number, “only” 85K people lost their jobs. At the same time, 661K people left the work force and real unemployment is well over 17%. Unrealistic expectations are exuberantly high, the vix is shockingly low, and credit is tightening. O where oh where is the market heading! […] Another lawsuit targeted at Goldman Sachs executives and their ridiculous bonuses. Personally, I think Goldman is a bunch of criminals and for some reason the SEC aren’t going after them. For example, they have openly admitted about their high frequency trading programs that are technically illegal! Those programs are the same exact thing as painting the tape, an illegal practice of conducting trades to give an impression of a higher volume of trade than are actually taking place. […] Gold today was up despite a strong dollar. Although the market was volatile and the “reported economic data” even more volatile, gold saw a strong demand all day long. There is no hint what so ever from the Fed (Bernanke) about when rates (if ever) will be raised. We at Alphas Edge just keep wondering what kind of fool is willing to give cash and received nothing back in return. Well, maybe it’s time to keep the money in the mattress. If the Fed has no plan to raise rates, than this is a CLEAR indication that the economy is still in trouble and at risk of collapsing. On an unrelated topic, there are rumors in the internet that Madoff is hospitalized for severe facial injuries and collapsed lungs. I hate to speculate, but no way could this have happened from 1 fall off a prison bed as they claim. Maybe if Madoff was continuously jumping off his bed in different positions, the story would be more plausible. I just cannot believe that it is not being reported on the major news networks. […] |
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