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NO QE3 TO PROP GOLD AND SILVER

April 12, 2012

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

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

April 12, 2012

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

ANATOMY OF J. C. PENNEY TRADE

April 11, 2012

Most investors try to profit only when stocks go up. Sophisticated investors profit both as stocks go up and when stocks go down. One of the problems many investors face that the resources to help them to profit from stocks going down are rare. One such well-respected rare resources is ZYX Short Sell Change Alert . We have just completed a trade that profited from fall in J.C. Penney stock (JCP). Reproduced below are the posts from ZYX Short Sell Change Alert to help investors understand anatomy of this trade. TAKE PROFITS ON JCP April 11, 2012 Most investors may consider

STAY SHORT ON GLD

April 10, 2012

After Friday’s poor job number, the momo crowd has been speculating about QE3. The probability of QE3 is very slim. At best there may be an extension of Operation Twist. What to do now? Those short GLD may continue to stay short. Those not short GLD may wait for a better opportunity.

WEEKY MARKET DIGEST: A DEEPER LOOK INTO BAD EMPLOYMENT HEADLINE NUMBER AND IMPACT ON OUR INVESTMENTS

April 6, 2012

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.) A DEEPER LOOK INTO BAD EMPLOYMENT HEADLINE NUMBER AND IMPACT ON OUR INVESTMENTS April 6, 2012 Today is one of those rare days when the U.S. stock market is closed and monthly employment data is released. Monthly employment data is known as mother of all numbers, this name underscores its importance. 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 creation of

MORE ON PNSN

April 4, 2012

Even though PNSN is not being official held in the portfolio any longer, we will continue to provide information on PNSN at least for the time being. The key question is if the present price discounts the dilution. The other key question is if there is more information that the company has not released. Here is a quote from the company’s response: Book value after dilution? Under the plan, we would eliminate approximately $176 million of debt and $30 million of annual cash interest expense, increase equity at our parent company, and potentially realize a significant one-time gain as a

MORE INFORMATION ON PNSN

April 4, 2012

The stop hit on PNSN and the position is no longer being held. However, we recognize that some subscribers are still holding PNSN. We asked PNSN a number of questions and also requested them to verify the authenticity of the following letter: March 28, 2012Dear Valued Correspondent As you have no doubt noticed, the price of our common shares has declined over the last week. We believe this is due to the potential share dilution that is part of Penson Worldwide, Inc.’s recently announced debt exchange offer plan, and is a sign of confidence in the ultimate success of that

NO QE3: GOLD, SILVER, BONDS GET CREAMED

April 4, 2012

At 11:26 a.m. today, I received an email from a well-known market guru who is an expert at technical analysis. The email declared that the pattern in gold was like a coil ready to start a new rally. At 2:00 p.m. the Federal Reserve Board and the Federal Open Market Committee (FOMC) released the minutes of the Committee meeting held on March 13, 2012. In response to the minutes, gold fell about $35, with silver, oil, bonds and stocks all falling as well. As of this writing, the SPDR Gold Trust ETF GLD -1.29% is down $3.25, iShares Silver Trust ETF SLV -3.01% is down $0.40,