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WEEKLY MARKET DIGEST: INDIAN JEWELERS STRIKE TO PROTEST TAX ON GOLD

March 23, 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.) SPANISH YIELDS AGAIN OVER 5.5% March 23, 2012 Bench mark 10 year bond yields in Spain have risen to 5.53%. This is a stark reminder that problems in Europe may raise their head again and pull down world markets. India’s jewelers went on strike to protest a hike in taxes on gold imports. There is significant anecdotal evidence that physical demand for gold is falling. India is the world’s biggest gold buyer. Gold futures are at

FED CHAIRMAN BERNANKE ON GOLD STANDARD

March 22, 2012

My objective in contributing to Trading Deck is singular — to help investors make money. We at The Arora Report are neither a bull nor a bear on any investment. The essence of our methodology is to let the hard data speak for itself. From the comments on my articles and emails I receive, it is clear that a very small minority is not interested in making money but mostly interested in how nasty they can be. Unfortunately, this tiny group of readers is extremely vocal and ends up confusing investors who are simply reading Trading Deck to help them

BROKERAGES RACE TO FEED APPLE TO THE MUPPETS

March 22, 2012

Shades of Greg Smith muppets are beginning to appear in Apple stock recommendations. Greg Smith is the conscience stricken ex-Goldman Sachs (GS) renegade whose New York Times op-ed was recently widely read and commented on around the world. The crux of the Greg Smith’s writing is that he believes Goldman Sachs places its own interests before the interests of its clients. Greg Smith wrote: It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. I don’t know of any

UPDATE ON PNSN

March 22, 2012

The Fundamental Case for PNSN is Still Positive PNSN still is drastically undervalued from a long-term perspective. PNSN derives significant revenues from providing clearing services to brokers. History tells us that over a long period of time, volume of transactions increases. This long-term trend is beneficial for PNSN. There is an increasing trend towards independent RIAs (financial advisors). This trend works towards the advantage of PNSN. PNSN is also a prime acquisition target. A logical buyer of PNSN is another financial company. Balance Sheet Risk PNSN has been hit hard due to company’s missteps with its balance sheet. The company is tightly regulated and so far there is no news from

MORE ON NG

March 22, 2012

NG is engaged in development and exploration of gold and silver in Alaska and British Columbia. 52 week high for the stock is $14.02. Yesterday we recommended a 10% tranche at $7.12. In our view, NG is a take over candidate. It has long been on our list to buy, but never hit our buy zone. Our buy zone has been at $6.25 to $6.56. Yesterday, we raised the upper band of the buy zone to $7.30. There were three reasons for this change. First, there were persistent rumors of interest by ABX to buyout NG. Second, Electrum a New York based firm

URGENT: HOLD OFF BUYING MORE NG

March 22, 2012

Please consider holding off buying more NG and canceling any pending limit orders. We will be back with more information.

NEW IDEA ON NOVAGOLD RESOURCES (NG)

March 21, 2012

Novagold Resources (NG) is a gold producer. It has long been on our list to buy. Now the rumors are surfacing that the company is for sale. Starting a 10% tranche right here at $7.12. Buy zone on NG is $6.25 to $7.30, preferably closer to $7.00. Stop zone is $5. to $5.73 and target zone is $9.60 to $11.20. There is high risk to this trade, therefore we do not recommend buying more than a 10% tranche here. Consider adding a second 10% tranche around $6.80.

NEW OPPORTUNITY IN HERO

March 20, 2012

New subscribers — an opportunity to scale in a buy in HERO is now at hand. HERO provides shallow water drilling and marine services for oil and gas exploration. HERO announced the execution of a definitive agreement to acquire the offshore drilling rig Ocean Columbia from a subsidiary of Diamond Offshore Drilling (DO). The purchase price is $40 million in cash. Ocean Columbia is a LeTourneau Class 82 SD-C self-elevating drilling rig registered and flagged in the Marshall Islands. Subject to customary closing conditions, the company expects the acquisition to close in May. Hercules Offshore also announced that it has entered into a