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March 10, 2006
Time to take a break, Fri., Mar. 10, 2006, 12:58 M
I cannot get going today. One of the problems of course is the usual let-down as convention adrenalin wears off. But there are other reasons.
Today, I have become unfocused because my mind has been off on different directions: (i) precious metal prices are being pushed down, (ii) Stelco assets are being conveyed to bandits, with the co-operation of Canada's courts, securities regulators and TSX, (iii) this latest raid by Brascan/Brookfield has caused me to believe the plight of the average Canadian securities trader is now hopeless, and journalists are either ignorant or too afraid to investigate, (iv) I am starting to think, like most others, "why bother" with the crumbling social structure when there are uplifting micro business ventures to consider, and (v) I am now into planning a major development for The Bahamas, which will soon become my overriding matter of interest.
I could go on but the fact is I'm too tired. This morning my wife asked me to take three days off " or start working on my will.
Market prices move in trends and cycles, and for that we are fortunate. So if they are falling, like today, there will be days close at hand where there is a reversion to the norm. This is not what is bothering me.
I called a Gold Buy Alert yesterday, and with the continued smashing of prices in the precious metals commodities today, the time to buy is at hand. Just watch the RSI on the 15-Minute and Hourly price data across the board for the list of stocks I gave you. If you see a turn in say 60 pct of these stocks, then the rest will follow.
What is bothering me most, however, is the continuing story of Brascan/Brookfield. It is my considered opinion, supported by a ton of public evidence, that a group of "ruthless" South African accountants invaded Canada 25 years ago, backed by dubious money sources, to shake down the natural resources industry.
This group has proceeded to divide and conquer, strip assets, and pay out their annual dues to those money sources. Once they start, have they ever lost?
You can call it "legitimate" or you can call it "the mob". Whatever. It is organized.
Moreover, if it had happened in the U.S., I believe the authorities would have put a stop to the situation a long time ago.
I am bothered because I happened to meet, by chance, on different days, two former executives of one of the great Canadian natural resources companies that Brascan took over. That once great company was reorganized, stripped of the juicy assets, leaving the rind for shareholders.
One of these executives told me that I ought to be concerned about my health because these people stop at nothing to win, including bribery or whatever it takes. The other called them "ruthless".
One of them said that as soon as he saw Courtney Pratt show up at Stelco, he knew the Bandits would be close behind. You see, Pratt is no steel man; he's a career personnel manager, who spent over 20 years at Brascan, where he was I believe Senior Vice President when he left. And Stelco's VP Communications held the same role at Brascan for about 11 years. This is no coincidence; it was part of a plan.
Stelco is not the first; it won't be the last.
The Bay Street broker-dealer and banking community at the highest level knows everything I am referring to. Most hold the same opinion as me, but for business reasons prefer to be quiet.
I spoke to senior brokers this week who told me they wouldn't touch this group at all, and didn't know any of their peers who would. Moreover I spoke to several mining people who have faced off against them. And the comments I received were repeated time and again.
And the fact is that I'd say the majority of the people I spoke to were unaware of my blog or my position regarding Stelco. And many of these people number among the very smartest I met in the business over 25+ years.
I am bothered because Brascan is the group that stripped the Toronto Skydome from the taxpayers. They also stripped Quebec Raglan Mines, turning a nominal investment into Falconbridge, and now are using Falconbridge to take over Inco, while making it appear that Inco is the predator.
From what I can see, Alcan is next.
I am concerned because there is a network of the same judges, Senators, lobbyists, CA firm presidents, and senior lawyers who are at work on the same deals, each one ending up the same way in favour of these South African accountants. When I ask why, nobody has any answers.
For the past week, for several hours each day, I sat in the PDAC media room. I talked to other journalists about this situation. Those people are better writers, may be better investigators, and definitely have access to far better records than I.
I am done talking.
Posted by Posted by Bill Cara on March 10, 2006 12:58:45 PM | Category: Cara Today in the Market
