April 12, 2012

NO QE3 TO PROP GOLD AND SILVER

In the wake of a bad employment report, the gold and silver momo crowd has been running up the metals with loud proclamations that QE3 is now certain. A careful study does not support such proclamations.

Good Friday was one of those rare days when the U.S. stock market was closed and monthly employment data was released. Monthly employment data is known as the mother of all numbers. This name underscores its importance.

The futures market was open when the data was released. Stock futures fell sharply and bond futures rose as investors focused on the headline number of the creation of 120,000 jobs in March.… Please click here or the title below to read more.

April 12, 2012

ILLUMINA IS NO APPLE BUT COULD BE JUICY IF ROCHE’S BID FAILS

I am always searching for the next Apple, but the probability of a company turning into another Apple is woefully low. However, from an investment perspective, finding another Apple simply means finding another stock that generates a several hundred percent return. There have been dozens of these situations in the past three years since the bear market bottom, and I have succeeded at riding several of them.

One thing I have never come across before is a company that calls itself the “Apple” of its industry in a letter to shareholders that was written to thwart a takeover bid. There had to be a first time.… Please click here or the title below to read more.

April 12, 2012