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June 21, 2007

Cara’s Daily Commentary, Thurs., June 21, 2007, 9:00 AM

Market Chat

Today we get to see whether the Bears finally sink their teeth into the meat of the market or whether the Bulls have merely decided to trim some excess profit.

I was shocked to see bond yields, which had been softening and hence helping stock prices move higher, suddenly turn north. Traders today are asking if central banks have finally directed commercial banks to pull in their horns.

Of course, the buy-side is the last to know. Not being part of Friends & Family, we have to figure these things out for ourselves.

In any case, I have been warning traders to tighten their stops and use protective means like buying put options.

So today will be a matter of the Bulls playing DEFENSE. Let’s see if their front line can hold. Judging from the damage on the FTSE today, to this point at least, things are not looking good. BUT I'M NOT SO SURE.

Economics Calendar and Reports

Economic calendar from Econoday

Econoday prior week's international economic report.

Global Equity Markets Review

The US market sold off hard at the end of the session. Expectations, based on selling underway this morning in Europe and as seen in Asia-Pacific markets earlier today is for more selling.

US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

Here’s the closing data of the Asia-Pacific equity markets..

A lot of Green arrows across the Asia-Pacific region today.

Here’s the chart of the Japanese Nikkei 225..

The Nikkei Dow gained +28 points (+0.16 pct) today, which was a seven-year closing high. But I am still watching the Dollar:Yen trade. I am concerned this market might be reaching a peak, and I am afraid that when the Yen strengthens, the stock market could be cooked.

Here’s the chart of the Shanghai equity market..

Shanghai gained 49.5 points (+1.2 pct) today. Yesterday the intra-day high was very close to a record. With all the selling in Europe and America, let’s see how China holds up tomorrow.


The problem with all international markets today is that HB&B manage all these international ETF’s that trade in USD in the US. When HB&B want those markets to plunge, all they need to do is sell the ETF’s.


Here’s the chart of the Bombay India Sensex 30 index..

The Indian equity market (BSE 30) was up +87 points (+0.61 pct) today, closing up +116 points (+0.81 pct). That’s close to the record high.

Here’s the latest session data for the bourses of Europe.

Stocks are being smashed in Europe today (as of 8:07 am ET). The problem is that traders are selling bonds hard. Yields are popping. Individuals and companies need to be closing down their debts, and protecting their assets. That means selling highly leveraged assets.

Not a pretty picture.

I guess with Blackstone coming to market the debt-facilitated corporate M&A game is over. Or is it just taking a break? It will not be long to find out.

Bonds & Yields Review

Here is the T-Bond chart.

Bond prices pulled back yesterday. The T-Bond closed at 106.78125, down from 107.1875. After five straight positive sessions for the T-Bond, it looks very much like that rally was a brief one.

Could it be that HB&B (Merrill Lynch for one) just conspired to pump bonds so they could off their near-billion dollar Bear Stearns inventory? It wouldn’t be the first time.

Forex Review

Here is the $USD chart at the close of the prior session.

The $USD (at 8:12am ET) is at 82.62, up from 82.499 at this time yesterday.

Yesterday, I wrote, “The $USD is on a slide. You see, the Fed cannot have their cake and eat it too. If they want to goose bonds, it’s going to hurt the $USD at this point. And it ought to help commodity prices, and gold.”

This move will hurt commodity prices and gold. What the market is waiting for is some direction from the Fed and HB&B. If they are no longer going to support the bond market, then equities and commodities will also drop from here.

Commodities Review

The $CRB closed yesterday at 317.62, down from 317.82. That’s not much, but at noon yesterday the market clearly changed character as bond yields were lifting again.

Unless commodity prices collapse, or the economic growth rates start to accelerate, if interest yields stay high and rising, that is a classic Stagflation. Stagflation is a bond and stock price killer.

I note that Credit Suisse research on commodities two days ago dropped their overweighting of gold a bit, and they are generally softer on metals. I think they are doing the right thing for the large capital pools, but their timing is a little early – maybe two or three months.

Here is the $CRB Index chart.

Oil Review

The e-MiNY Aug-07 contract for Crude Oil was 69.525, up about +1.0 pct.

A $70 oil price is a scary thought. Maybe that’s another negative factor on the current equity market sell-off?

Here is the e-miNY Aug-07 Crude Oil chart.

Interactive Chart of Daily Crude Oil:

Interactive Chart of Weekly Crude Oil:

Gold & Precious Metals Review

Spot gold at 8:22am ET today is 654.58, down from 660.90 at about this time yesterday morning. The mid-day pull-back has bullish PM traders on the defensive.

Yesterday I wrote, “I don’t see gold headed for another test of 630. That weakness would only be caused by a combo of rising interest yields and soft econ data, at this point.”

Later in the morning, bond yields soared. Ergo, gold prices sank.

We have to see whether the Fed and Administration is prepared right now for the humungous fall-out in the economy if, as and when the equity and bond prices collapse. I just cannot fathom they want to do that. The implications for a hostile reaction among the middle and upper class in America are staring everybody in the face.

I still think Bernanke and Paulson will stay the course. They started this thing, and I don’t see them walking away. Trust me, if you get your head handed on a platter because of the US Admin, Fed, and HB&B helping their Friends & Family get even richer, you are going to react. Some of you will never return to capital markets again.

This will be interesting.

Again, I think gold will soar. And the Gold Bulls will thank Bernanke and Paulson, and the 10 pct economic growth of China (which is the metals and PM power driver that is unstoppable).

Here is the Recent Spot Gold chart.

At 8:32am ET this morning, the Spot silver (AG) was 13.19, down from 13.31.

I think this was another buying opportunity.

Here is the Recent Spot Silver chart.

This morning at 8:34am ET, Spot platinum is at 1291, same as yesterday and about +14 since the open this week. I remain positive despite all the screaming around me.

Here is the Recent Spot Platinum chart.

Palladium (at 8:35am ET) is at 372, up from 368.

Yesterday I wrote, “368, flat to modestly higher for several days. No break-out yet. I think we need to see a 372 floor before PD will lift.”

You see, Palladium (like Platinum) is not being smashed here despite rising bond yields and pressure on gold and silver.

Prices are rising. I anticipate traders will try to hold a 372 level as a floor for a day or so. By next week, 368 will be history. I believe we will be looking at 380+.

Here is the Recent Spot Palladium chart.

Precious Metals Stocks Review


$XAU has been trading in a very narrow band for about EIGHT weeks.

Yesterday, and before that I wrote here, "There are many analysts who hold the view that gold stocks ought to be sold here. I don’t share that view. I have written that for a week, following a knock-down in the index. ..We still need to base in the 143-144 for a couple days before I think the gold stocks will ‘rock and roll’ as I have been suggesting."

Yesterday after that the $XAU sold off. I see it as a buying opportunity.

Here are the $XAU charts, courtesy of StockCharts.com:

Interactive Chart of Daily and Weekly US Goldminers Index:

The U.S. goldminer share trust ETF trades under the ticker symbol GDX.

The Toronto Exchange-listed goldminer iUnits S&P/TSX Capped Gold Index ETF trades under the ticker symbol TSE:XGD.

Here are the Daily and Weekly data charts for the TSX Goldshares (XGD) index:

Interactive Chart of XGD Daily data:

Interactive Chart of XGD Weekly data:

To watch the moves in precious metal miners, you will have to monitor the individual stock charts, preferably in real-time, as follows:

ABX NEM GG GFI KGC AU HMY AUY BVN
Interactive Daily data
Interactive Weekly data


MDG LIHRY AEM BGO IAG EGO RGLD GOLD CDE GRS
Interactive Daily data
Interactive Weekly data


CBJ SSRI SIL NG KRY UXG GRZ TSE_HRG TSE_GUY TSE_AGI
Interactive Daily data
Interactive Weekly data


NXG GSS MNG DROOY MFN RNO RANGY MRB CLG
Interactive Daily data
Interactive Weekly data

Here are the key Silver miners and the SLV ETF:

SLV SIL CDE HL PAAS SSRI SLW MGN

Interactive Daily data
Interactive Weekly data


The Cara Global 100 Stockwatch

This data is supplied every day by the folks at KNOBIAS, Inc.

Here are the previous session’s Cara 100 gainers. Interactive charts of the top 12 Watch List gainers.

Here are the previous session’s Cara 100 losers. Interactive charts of the top 12 Watch List losers.

Here are the Cara 100 stocks that hit 52-week intra-day highs or lows in the previous session.

Fifteen new highs and only Hovnanian (HOV) hit a new low. Sound familiar?

Yesterday I wrote in this space, “Traders new to this website ask why would I keep a dog like HOV in the portfolio. The answer is simple: I keep Hovnanian in the Watchlist, based on a series of metrics compared to its peers, like financial strength, operating growth rates, margins, etc, which is what the Cara 100 represents. HOV, on the other hand, is a stock, which ought to be traded based on technical indicators. There was a time to sell HOV, when the RSI-7 for the Monthly-Weekly-Daily price series was over 70, just as there will be a time to buy HOV. The time to sell HOV was back in the Summer of 2005, when I was screaming mad in these pages at the travelling circus show that CNBC’s Bill Griffiths was leading to major cities across America. I told readers as it was happening that it would turn out to be a classic teaching model of the nonsense that goes on at CNBC. HOV is now in the Cara Accumulation Zone (RSI-7 for M-W-D is below 30), but no Buy Alert would be in place until the Daily RSI-7 runs up to 30 or higher. That would be an Alert for a short-term trader, and would be combined with other analysis such as MACD and peer group analysis before buying. Then when the Weekly RSI-7 moves up over 30, that sets in place the Alert and possible buying opportunity for the traders having an intermediate time horizon. Of course, those traders would also be looking at the Daily RSI-7, etc. “

Oil in China (PTR and CEO) is getting a huge boost in the selling of new financing in China for PTR. That boost will not be sustainable for long.

Btw, did you see that Credit Suisse research (one of my favorites) did the typical HB&B thing. In trying to ingratiate themselves to the Chinese authorities, they goosed the rating on CEO this week. The timing of the financing of PTR did not go unnoticed. That is the kind of thing that I think stinks, but alas it happens and we have to deal with it and use it to our advantage. Can you imagine Credit Suisse dropping their rating on a major Chinese oil company the day before the largest Chinese oil company raises public financing? What happened here is not a fluke.

Re my earlier comments about General Electric, and the nonsense of big debt and share buy-backs, and the current play to get major accounts off their stock at the market cycle peak, I think traders want to watch GE closely here to see if it can hold the new trading range.

What is going on at Home Depot (HD) is a travesty. HPEC has gained control. Humungous loans given out in order to aid the company to buy-back shares. Share prices are being manipulated. But I will leave that one for you to ponder other than to say that risk is being shifted to you, and you probably don’t see it.


Here are the Cara 100 stocks that had extreme volume changes in the previous session. This is a good list to watch anytime markets start trending in the extreme. It pays to watch the price and volume extremes. That btw is called Money Flow.


Here is the current Relative Strength Index (RSI) analysis of the Cara 100 company stocks

Here, from “Chris”, are the interactive charts of up to a dozen stocks with (unsmoothed) RSI-7 above 70 and below 30:

RSI > 70 (7)

RSI < 30 (7)

“Chris” takes this data from BillCara2.com, which is not smoothed like David’s data (from Worden). I ought to be able to introduce a Wilder Smoother to this data in upcoming months.

Here, from “David”, are the stocks in the Cara 100 trading with the highest and lowest RSI-7 sorted by (i) daily and (ii) monthly values, for the previous session.

In Focus


Other Recent Wall Street upgrades

Other Recent Wall Street downgrades

There are various sources for up/down grades by broker-dealers. One is at Briefing.com. Traders ought to check everyday for ratings changes. That website is updated later in the morning.

Most of the recent initiated coverage ratings are positive.

Community Chat

Once the site changes have settled down, I intend to make edit changes to the top menu items. I also plan to try a new type of contextual advertising and market research.

Yesterday I had lunch with Kamil Khobzi, CEO of junior exploration company Cancor Mines (TSX:KCR). Kamil is seeking C$4 million through a private placement offering of 16 million units (includes a half warrant – 2 years @ C$0.40) at C$0.25 per Unit. There is a four month hold period on the new securities. There are 35.9 million shares out (37.8 mil fully diluted).

I liked Kamil (when I met him for the first time yesterday) and I like his agent IBK Capital Corp, who I have known for over 25 years. IBK also handled South American Gold and Copper (TSX:SAG) and West High Yield WHY Resources (TSX.V:WHY), which I have pointed you to in recent weeks.

I have taken the opportunity in my final days in Toronto to get out to as many of these lunch meetings as possible. I have written up very few because I didn't like the story or most, for one reason or other. Western Goldfields (TSX:WGI and soon to be AMEX listed) is another I met at one of these lunches, and liked.

All these IBK-sponsored companies (WHY, SAG and KCR) are led by interesting people and hold valuable exploration property. While very junior, they do have a degree of support from professional investors. I am building a Cara Hi-Speculative 100, and all three will make the cut.

These are known as the penny dreadfuls, which always seem to gain maximum exposure at the end (or close to the end) of the Bull phase of a market cycle. In any event, while this is a window for slick operators to hype garbage , it is also the time that high-risk mining and minerals exploration and development financing is available. It is up to us to figure out the ones that have the best likelihood of success.

In the case of WHY, I have to ask myself WHY that one won’t be a $100 stock in a couple years. I think it will, and Sheldon Inwentash at Pinetree agrees. He took the full placement recently.

In the case of Kamil Khozbi, he’s a geological engineer (MSc, MPM and MBA) with 30 years exploration experience. He was Quebec Prospector of the year 1998 for the Gemini-Turgeon discovery. He has three very interesting properties now, and for two of them he is financing work programs for the Summer. Cancor Mines is a zinc play. Zinc prices may come off by a third of their recent highs, but are expected to remain strong for many years because of a paucity of new mine production coming on-stream.

I put some of their material into a pdf, which I will make available to those who request it (bcara@billcara.com). Since they are doing a financing this week, I won't publish that material.

Thanks again for your comments on improving the blog. I will continue to make the changes you recommend, and try to explain things when I encounter technical challenges.

Life gets easier the more that we help one another. Have a great day.


Posted by Posted by Bill Cara on June 21, 2007 09:00:37 AM | Category: Cara's Daily Commentary

Discourse

Moin from Germany,

The "surprising" Bear Stearns problems with mortgage derivatives are spreading.....

maybe the housing/subprime related problems are not so contained (even when we have heard it on a daily basis for 6 month now.. :-)

Loans Index
The LCDX index of credit-default swaps on high-yield, high- risk loans fell for a ninth day, dropping 1.19 to 98.08, signaling a deterioration in the perception of the creditworthiness of the 100 U.S. borrowers included in the index. The LCDX is down 2.55 since May 22, when 13 Wall Street banks began offering the five-year contracts in the privately negotiated over-the-counter market.

Posted by: jmf [TypeKey Profile Page] at June 21, 2007 9:13 AM [link]

Thanks for the color coding, Bill! Saves these old eyes:-)

Posted by: Bishx [TypeKey Profile Page] at June 21, 2007 9:14 AM [link]

Careful what you wish for, China may grant it

http://www.atimes.com/atimes/Global_Economy/IF22Dj02.html

Posted by: jk484 [TypeKey Profile Page] at June 21, 2007 9:19 AM [link]

gold and oil up at the moment...planning to trim the 15% ST position to reduce risk...no change in LT holdings at the moment, but if gold continues to spike today, will reload oih/rig in place of a few miners...

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 9:28 AM [link]

BMD: Motley Fool has an xlnt recap of reasons to be in this stock--http://tinyurl.com/39tnph

still at 75% position and going to 100% pending a drop or a breakout...

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 9:31 AM [link]

JogyP-SRS up 2%

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 9:42 AM [link]

Bill,

I like the pale yellow background for comments. It is very easily read and also denotes postings by commentors other than you.

Posted by: johojo [TypeKey Profile Page] at June 21, 2007 9:44 AM [link]

2nd_Ave:
I debated SRS vs SDS yesterday and decided to go with SDS. I am not a good chart reader, but it looked to me like SDS has a better chance in the next few weeks.

http://finance.yahoo.com/q/bc?s=SRS&t=6m&l=on&z=m&q=l&c=SDS

Posted by: JogyP [TypeKey Profile Page] at June 21, 2007 9:58 AM [link]

your call on gld and miners going down is playing out so far...the question now is calling the point at which is becomes a buying opportunity...i think sooner rather than later...and probably today?

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 10:11 AM [link]

All-

I have my trigger finger (buy) ready on gold and miners for intermediate term trade (for those few of you who think I know anything about this). My belief was that we would get a puke 'em up spike before the next leg up. However, what we may be getting is just gradual attrition.

Move to Boston area went comparatively well.

2d ave, it took me three years to get to 1300 posts. I think you may shatter that record in a year. :)

Posted by: MarkM [TypeKey Profile Page] at June 21, 2007 10:11 AM [link]

shouldn't have said that, man...now i won't be able to post without thinking about it...

glad to have you back...and glad to hear you're getting ready to buy....

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 10:18 AM [link]

Watching KRY. Also- UXG (down another day), PMNHF, and RBY. Wondering if McEwen will eventually "merge" these jr. miners...

Posted by: jc173 [TypeKey Profile Page] at June 21, 2007 10:22 AM [link]

Looks like shorts are taking profit ahead of economic data. Anyone buying SDS on this pullback?

Too bad I can't watch market closely today, things could get dramatic this afternoon.

MarkM ... good to see you back.

Posted by: number2son [TypeKey Profile Page] at June 21, 2007 10:22 AM [link]

n2son-if i hadn't loaded up yesterday, i would be buying SDS now...also planning to reload the 15% gold i unloaded this morning by the end of the day if it gets as "dramatic" as you think...not sure how i got into this temporary day-trading mode (and not sure i like it), but i think it has to do with the fact that we're topping...

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 10:32 AM [link]

Bought a bit more KRY at 4.34! I figure we have another 2 to 3 weeks to either see a permit or be warned about some delay. GRZ got their permit within 3 weeks of posting their bond right?

UXG feels like it has an infinite capacity to drop. These days it's slow to rise and quick to fall!

GG's short lived bullish progression seems to have been wiped in 2 days. Back below 24 :(

What happened to KGC being everyone's favorite senior? Their stock has received no love lately.

Posted by: Fazeli [TypeKey Profile Page] at June 21, 2007 10:43 AM [link]

Re: SKF
I am looking at adding a position in SKF(UltraShort Financials), as the HB&B shares may go down further with more attention on failed investments in hedge funds.

http://money.cnn.com/2007/06/21/news/companies/bear_stearns/index.htm?source=yahoo_quote

Posted by: JogyP [TypeKey Profile Page] at June 21, 2007 10:47 AM [link]

Bill,

Are you seeing the whites in peoples eyes? Miners appear to be in an oversold situation here. Are you buying any PM's? Thoughts?

Posted by: AdamG [TypeKey Profile Page] at June 21, 2007 10:49 AM [link]

MarkM---Congrats on the move . . . still have a condo there in the North End . . . love the restaurants. Visiting the Cape after the 4th. I think you’ll love it.

Timely return on your part as it looks like an interesting opportunity week. Besides PMs, looks like WFMI may again present some opportunity over the next month before the FDA hearing at the end of July. (key word is MAY)

Agree with Bill on the yen and using it as a tell. Swiss franc (the other carry trade currency) has strengthened recently (down today) as their bank indicated it was going to raise rates.

Disclosure: small initial position in FXY (looking to increase between now and August)

Posted by: Seamus [TypeKey Profile Page] at June 21, 2007 10:53 AM [link]

Has anyone noticed RIO pulling back the past two days? I had posted this late last night, but I was hoping someone knew the scoop behind the the issuance of the convertible notes. Would that be the reason for the pullback? Is it a form of dilution? They seem to not have a cash flow problem. Why issue the notes now? Could this be a way to fund acquisitions?

From last nights comment:
"[Could]someone can talk about RIO and what happened with the price due to the new "Manditorily Convertible Notes." I'm not in RIO, but I inadvertently put a guy at work into it by mentioning what a great company I though it was - I really do like RIO a whole lot, and I had enumerated why I liked BHP, RIO and TCK. Not as stocks, just as a company. (Next day - "Hey, I bought that stock you were talking about, in Brazil, RIO or something?" Me: "You did WHAT!!??")

It worked out luckily for both of us, as it happened to be a day that RIO tanked after nickel plummeted several months ago, and he actually got in at almost Soros levels (I heard Soros is in from 20-32) But I learned a good lesson in talking about companies around guys who spend a month studying about some new MP3 player and can't spend ten minutes reading about a company they put thousands into. This fellow is now sad he didn't put more into it, of course, and though I know it's not a Cara Buy Alert, I'm wondering if this pullback is a good dip upon which to add a small bit to a successful position?"

Regards, all,

Mike
NYC

Posted by: MikeNYC [TypeKey Profile Page] at June 21, 2007 10:57 AM [link]

Some of you are asking whether I recommend buying the PM’s and miners, and somebody even mentioned that “your call on gld and miners going down is playing out so far”.

So here’s what I wrote this morning (just for the record):

“Again, I think gold will soar. And the Gold Bulls will thank Bernanke and Paulson, and the 10 pct economic growth of China (which is the metals and PM power driver that is unstoppable).

…(Re Silver) I think this was another buying opportunity.

…(Re Platinum) I remain positive despite all the screaming around me.

…(Re Palladium) Prices are rising. I anticipate traders will try to hold a 372 level as a floor for a day or so. By next week, 368 will be history. I believe we will be looking at 380+.

…Yesterday after that the $XAU sold off. I see it as a buying opportunity.”

So, I am trying to explain the pull-backs before they occur, and when it does occur, I am trying to encourage you not to sell, calling the pull-backs a short-term situation.

Longer-term, it is a fact that gold rallies when interest rates are rising for the simple reason that the market and the Fed are usually behind the curve of rising inflation, and the best hedge is a position in PM’s and PM miners.

If you are a risk-taker, I suggest the penny dreadfuls (I gave you three or more recently). I also gave you Western Goldfields, which I believe will soon eat through the supply of stock left over from the previous promoter's days. I also like Aurelian, Crystallex, and Gold Reserve because these are very substantial PM properties soon to go into production. I also like Azimut and ValGold for reasons given here in the past. Azimut (TSX:AZM) this morning announced a Strategic Alliance with Kennecott for nickel. The story continues to grow. And so does that of ValGold.

After these companies flesh out their true valuations, often when they go into production, there will be more consistency in the Broker-Dealer research and the trading by large capital pools. I like them today (better than the majors), which are relatively over-priced.

At the peak of the cycle, some of you will be shocked to see the percentage gains. You will see nothing of the kind in the majors, although I do expect gains of a lesser amount there, at least for most.

Re Rob McEwen's group of companies, the only one I follow (a bit) is US Gold. I believe UXG will eventually become a mining situation, but the jury is still out. Rob, btw, adheres to his forecasts for much higher gold prices, and I agree with him. Sometimes the bullion moves higher faster, and sometimes it is the bullion-related miners' shares. It is an interesting game. If I enjoyed it less, I would not write about it so much.

Posted by: Bill Cara [TypeKey Profile Page] at June 21, 2007 11:25 AM [link]

Regarding Ron Paul, he suffers from a terminal flaw regarding the environment as refuses to accept established science with regard to global warming. He has a lot to contribute to the American debate regarding economic policy, but that's as far as it goes for me.

Posted by: number2son [TypeKey Profile Page] at June 21, 2007 11:31 AM [link]

I bought Aurelian a few days ago. It seemed to make a long term triple bottom around C$26 and with about 10M oz found it is worth more than $50 per share, not even considering the other targets they are just starting to drill. Last financing was at C$37.50 per share with no warrants. It is splitting 4:1 soon.

Posted by: moab [TypeKey Profile Page] at June 21, 2007 11:44 AM [link]

'Some of you are asking whether I recommend buying the PM’s and miners, and somebody even mentioned that “your call on gld and miners going down is playing out so far”.'

actually, that post was addressed to JogyP, who made that call near yesterday's close...sorry for the confusion...sometimes i get caught up in the "conversation" and neglect to clarify who i'm responding to...

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 11:52 AM [link]

Couple corrections/assumptions
Cancor Mines KCR:TSX
Gannon Gold -- Gammon Gold?? (name changed from Gammon Lake Resources)

Posted by: bobj [TypeKey Profile Page] at June 21, 2007 12:09 PM [link]

Kaimu,

You know how to pick them!!!

ECU ranked the #1 TSXV company, out of 2000.

http://tinyurl.com/24vs36

Posted by: Eric [TypeKey Profile Page] at June 21, 2007 12:10 PM [link]

Doubled down on MPEL at 11.60. Its RSI is about 25. I believe that someday MPEL will revisit its highs. This is a long-term hold in my pension portfolio.

Posted by: Fred [TypeKey Profile Page] at June 21, 2007 12:11 PM [link]

Bill,

I believe the ticker is KCR.TO for the junior you mentioned.

Thanks,

Posted by: Eric [TypeKey Profile Page] at June 21, 2007 12:13 PM [link]

Fred:
At what point we say enough is enough and get out of a stock. With the new Chinese Visa restrictions to Macau, is the outlook for MPEL changed?
I have averaged down many times (17 to 12)only to see it go down more. What are your reasons to buy more at this level?

Posted by: JogyP [TypeKey Profile Page] at June 21, 2007 12:25 PM [link]

Bill: I'm 68 and I hope you outlast me because you are my only scource of excellent info.
I'm in cash now, waiting for a drop, then i'll attempt to take advantage of the next expansion with my limited knowledge.
Keep up the good work.

BobbyV.

Posted by: BobbyV [TypeKey Profile Page] at June 21, 2007 12:27 PM [link]

Bill, Regaring the gold majors, one seems quite a bit cheaper than the others. It is Barrick. I read your history of Barrick commentary and how your removed them from the 100 for hedging. But given their recent closeout of all non- project hedging (9.5m oz post 2010), low valuation (7 to 8x cash flow) and very low cash costs ($313), A rated balance sheet etc., it seems that ABX is positioned to profit from TODAY's spot price very well, not to mention higher prices in the future.

Posted by: bc101 [TypeKey Profile Page] at June 21, 2007 12:40 PM [link]

JogyP,

I agree with you that there is no good news right now. Visa restrictions could change in the future (might just take a little greasing). I see MPEL as a startup company in an industry and geographic location with the potential for great future growth. I'm talking about 10 or more years here. I don't expect instant gratification from a startup. Of course I would have preferred to get off to a good start but, c'est la vie. MPEL now accounts for 5% of my pension porfolio. Given a chance to break-even, I'll reduce it to 3%.

Posted by: Fred [TypeKey Profile Page] at June 21, 2007 12:48 PM [link]

SBUX

Entry point?

Regards,

~S

Posted by: srolaser [TypeKey Profile Page] at June 21, 2007 1:06 PM [link]

Sorry #2son, but Paul's rejection of the junk science you seem to believe is valid only makes his candidacy more attractive though he has zero chance at the nomination. ;) This 'global warming hoax' will find its ultimate listing with ALAR & Cyclamate as hysterically rash verdicts by arrogant fakirs.

Posted by: redclaydawg [TypeKey Profile Page] at June 21, 2007 1:09 PM [link]

Re: SBUX
--
Shares of Starbucks fell after the coffee chain's chief financial officer said meeting the top end of its 2007 profit target will be "very challenging." The company had set a range of earnings of 87 cents to 89 cents a share for the year but Michael Casey, speaking to a conference in Chicago, cited "rising dairy costs and soft transaction growth" as factors that are weighing on the bottom line.
--

Slowing growth not a good sign IMO.

Posted by: JogyP [TypeKey Profile Page] at June 21, 2007 1:19 PM [link]

I think SBUX goes to $25+/-. Summer is not their season, combined with current issues I don't see how it holds the 27/26 handle, but then again sometimes I'm dead wrong.

Dang 2nd, BMD is back to that 2.5% a day pace.
I got back in at 3.58.

I've been a WGDF, UXG, SLW buyer on the dips.
Sold yesterday's hedge at a small profit, it performed it's function.

THANK YOU Bill for the re-iteration on PM's and miners today.

I'll post when I can but the site is a bit buggy right now with this computer, which is my dbl monitor office job, I ususally am on my laptop which I'm sure typekey notices. Much of the same issues discussed earlier. I have no doubt they will be resolved in time.

Looks like the patient might buy WGDF for under 5.25....happy hunting wabbits.

Be good *and* lucky!

Posted by: Craig [TypeKey Profile Page] at June 21, 2007 1:23 PM [link]

With the ending of the second quarter coming, I doubt that this market will be lower July 1.

With respect to doubling down, a good rule of thumb when short-term trading is do not add to a losing position. If however, you do add and the position continues to go against you, definitely do not add more. To me, the best rule in this situation is to just cut your losses and move on.

Long-term, I guess you could just keep doubling down and hope for the best, but I remember once when I was playing backgammon for money at about $10 per game and every time I lost, I doubled down. Before I knew it I was down over $1,000, so never underestimated the power of a bad streak or bad stock running longer than you think for that matter.

Posted by: Telestar3d [TypeKey Profile Page] at June 21, 2007 1:31 PM [link]

Earlier I made reference to the probablr intervention of the monetary authorities to help HB&B clear off the inventory of the failed or failing Bear Stearns funds.

I received this letter from a reader who received it from another source. It makes sense to me.

------------------------------------------

Federal Reserve Bank of New York is intervening heavily in New York money market – driving down the overnight cost of at least some funds to a low of 5.00% -- well below the 5.25% target announced by the Federal Open Market Committee.

FRBNY has been running repo auctions for US Treasury paper and accepting bids at 5.00% or below all week. The actual amount of repos done at these levels has been limited. But it looks like a symbolic attempt to keep financing cheap and provide the market with moral support while the investment banks liquidate collateral from the Bear hedge funds.

Posted by: Bill Cara [TypeKey Profile Page] at June 21, 2007 1:40 PM [link]

A number of you are having difficulty getting through TypeKey. Could you please send me the offending upload that failed, and your notes, and I will try to get this problem resolved one way or another. Thanks.

Posted by: Bill Cara [TypeKey Profile Page] at June 21, 2007 1:43 PM [link]

ALOHA !!

ECU SILVER

ECU.V ECUXF.PK

On June 5th, last Tuesday, the Hedge Fund "Galtere International" acquired 1,142,857 shares via warrants. Last time I reported on this Hedge Fund their share ownership was 5,207,726 which was the largest shareholder at 2.5% of total issued shares.

Once I find out what Galtere International current total share ownership I will report it. So far, I have no evidence the Fund is selling.


I have to say here that even with POG down some $5-$8USD and HUI/XAU down my portfolio of junior miners are all GREEN except for UXG!

I also have to add PMI Gold-PMV.V/PMVGF.PK ... now awaiting assays in less than two weeks. Three(3) past producing mines totaling 286,000 au ounces per year. Nkran pit with all infrastructure in place and producing up until 2002-2003. Grades ranging from 3-6g/tn au. Possible 1mil plus au ounces in berm waste rock/heap leach grade ore. Awaiting RSG report regarding waste rock due soon also.

Sleeper in my mind ...

PMI link: http://www.pmiventures.com/s/Home.asp

Posted by: kaimu [TypeKey Profile Page] at June 21, 2007 1:49 PM [link]

Re: SBUX

Agree with JogyP and Craig. Over the past five years SBUX has traded in a P/E range of 26 to 55 based on trailing 12 month earnings. Currently trading with a P/E around 33 for trailing earnings and about 30 for projected earnings, using the 0.87 low-end estimate. Should the P/E contract further to 26, we'd be looking at a share price around $23 or a little below, ***provided earnings don't deteriorate further***.

Definitely looks oversold in the short-term and you might look for a short-term trade here, if that's your thing, but longer-term I'm waiting for more sign of a bottom. This week has seen it break below its 200 week moving average, declines have been happening with high volume, and I'm looking for it to retest the 2005 lows in the $22-23 range.

Mind you I do make a point of going out of my way every morning to visit their drive-thru. :)

Posted by: doug11 [TypeKey Profile Page] at June 21, 2007 1:50 PM [link]

I had small changes made to the book jacket, and so a newer version plus a smaller-sized image will soon show up on the side-bar.

Posted by: Bill Cara [TypeKey Profile Page] at June 21, 2007 2:12 PM [link]

SBUX, is falling like a rock on increasing volumne. Why would someone want to buy here?

Posted by: Telestar3d [TypeKey Profile Page] at June 21, 2007 2:25 PM [link]

Telestar3d--agree with you. If someone wants to get in SBUX, sell 25 or 22.50 puts.

Speaking of coffee chains, CBOU is giving away free coolers (cold flavored coffee drink) between 2-3 this p.m. Just picked one up around the corner--not bad, actually quite good for a warm afternoon.

Posted by: Seamus [TypeKey Profile Page] at June 21, 2007 3:20 PM [link]

CNOOC (CEO) has just announced a major property acquisition in Canada's western oil sands region. Now that's what I call "offshore".

Posted by: Bill Cara [TypeKey Profile Page] at June 21, 2007 3:21 PM [link]

adding to uxg..and starting a position in qid..

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 3:27 PM [link]

2nd_ave,

Is there a NYSE equivalent of QID?

Posted by: Fred [TypeKey Profile Page] at June 21, 2007 3:44 PM [link]

Bill, re CEO, sounds like Western oil sands is the place to be this year.

STO recently acquired 93.5% and extended its cash offer for all shares of North American Oil Sands Corp.(NAOSC). Disclosure: Long STO.

Guess it's just a matter of time before XOM and others start moving. Doesn't XOM own a majority of IMO?

Posted by: Seamus [TypeKey Profile Page] at June 21, 2007 3:45 PM [link]

Bill--Answered my own question. Just saw a posting under IMO about buyback of 46.5 mil shares. It stated XOM owns 69.6%.

Posted by: Seamus [TypeKey Profile Page] at June 21, 2007 3:48 PM [link]

fred-all i can think of right now is PSQ, but that would be just the inverse rather than double the inverse...

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 3:49 PM [link]

Seamus,

Food-related, check out afn.un on the TSX, great growth + regular income. I have a small position on it and on DBA, both doing well. Love these uncorrelated stocks. Yesterday ufn was up 4%.


Oilsands: there is the CLO ETF if you wish to buy a basket of them.

Posted by: SiO2 [TypeKey Profile Page] at June 21, 2007 3:49 PM [link]

SiO2--thx for the info. This equipment angle (afn.un) is another ag play. It's the farmers who are making money and they are buying new equipment as times continue to get better.

Fertilizers--another strong day. POT, AGU, SQM MOS, TNH, TRA all up. Went long TRA Monday and it's up 6.1%, but the RSIs are now frothy.

Have to hit the road here for the weekend and signing off.

Posted by: Seamus [TypeKey Profile Page] at June 21, 2007 4:09 PM [link]

Speaking of the Canadian energy sector, a couple of 2x ETFs launched on the TSX this week. HED.TO and HEU.TO, the 'D' is the bear fund (down), 'U' is up. These attempt to mimick double the move in the S&P TSX capped energy index (after fees).

The sponsor also launched a pair of 2x ETFs for the S&P TSX 60 index back in January of this year, and interestingly the bear fund (HXD.TO) average daily trading volume has steadily grown to over half a million shares. I've never had a position in any of these, but keep HXD on my watch list for a rainy day.

More info here:
http://www.hbpetfs.com/summary.asp

Posted by: doug11 [TypeKey Profile Page] at June 21, 2007 4:14 PM [link]

CEO has a multi yr base. This one is coiled. Was not that long ago that weekly and monthly rsi hit 30. Right under our noses. On 6-9 my weekly journal has it posted as best candidate to take a position. Beyond me why I passed. When I let too many distractions in my focus suffers. I don't know how the Bill Cara's of the world juggle all the balls that they do.

As an aside, today was loss to a pinhole leak in a copper pipe in my home. What I learned about such leaks are amazing. Copper pipe may only last 30 yrs. There is no prevention treatment less costly than replacing all the pipe in my home. After one leak, more will follow. Multiple variables involved and all without standard diagnosis and practical solutions. We might be on the verge of an epidemic of pinhole leaks associated with changing water conditions associated with new epa regulations of water treatment...speculative thinking. Plastic tubing is now the preferred material. Corrosion produces an annual loss of one billion dollars. Why would anyone use copper in new home construction? Never.

Posted by: jasper [TypeKey Profile Page] at June 21, 2007 4:15 PM [link]

another ringing endorsement for sticking with your LT positions...initally felt good watching oih/rig drop yesterday after having exited at yesterday's open...today oih recovers and rig hits another new high...whereas the miners i switched into...enough said..

Posted by: 2nd_ave [TypeKey Profile Page] at June 21, 2007 4:16 PM [link]

Hey Everyone!

KRY finally showed a teeny bit of moxy at the close today. Maybe the selling's come to an end. I think this price action of the last week is a pennant or a falling wedge or something, and should be bullish. Any opinions?

Chris

Posted by: shark_attack [TypeKey Profile Page] at June 21, 2007 4:17 PM [link]

Some may think I am crazy for following this stock, but volume has picked up significantly recently on Abitibi Consolidated. Could it finally be bottoming?

I like stocks that have gone through significant bear markets and have been forgotten. That was the case with the whole farming industry in the 90's.

Posted by: moab [TypeKey Profile Page] at June 21, 2007 4:17 PM [link]

The Proshares Ultrashort S&P500 ETF (SDS) seems to trade reasonably good volume. Does anyone have an opinion on whether this would be a good buy at this time?

Posted by: Fred [TypeKey Profile Page] at June 21, 2007 4:23 PM [link]

i might add that IMO, same coil, same multiyr base as CEO. First move up out of trading range is strong..about 40%. CEO up closer to 25% from the top of its trading range.

Posted by: jasper [TypeKey Profile Page] at June 21, 2007 4:26 PM [link]

jasper,

There's something to be said for soldered connections. I say this only because I recently had a friend wonder why anyone would ever use plastic tubing for plumbing when he had some of his plastic fittings fail inside the walls of his home. He's in the process of removing it all for copper. Perhaps its best to just buy a new home every 30 years. :)

Posted by: doug11 [TypeKey Profile Page] at June 21, 2007 4:27 PM [link]

doug11,
i'm wearing a smile. today's cure, tomorrow's problem. The plumber said this is a "new" tubing product. Could be PEX.

Posted by: jasper [TypeKey Profile Page] at June 21, 2007 4:37 PM [link]

I may have to switch brokers as Scottrade isn't letting me see some pinksheets and I'd like to buy some of the TSX listed juniors.

Posted by: Craig [TypeKey Profile Page] at June 21, 2007 4:56 PM [link]

Craig,
How do you like that Scottrade $54 round trip charge on the Canadians? Ouch! Were I not the tiny investor I am, I would move to IB right away. If you are in the US, it seems the best way to go if you like the Canadian shares (and what's not to like about that?) They do have a minimum per month, but it's less than one Scottrade RT commission on Canadian shares per month.

Doesn't Scottrade have some crazy commission on pinks, too? They are OK if you are just buying American listed shares on the major exchanges. But for anything else these charges are crazy!

Mike
NYC

Posted by: MikeNYC [TypeKey Profile Page] at June 21, 2007 5:11 PM [link]

From the NY Times article on the BSC hedge fund implosion:

"From 33 to 45 percent of the $2 billion in C.D.O.’s on offer by the funds early yesterday were investments in other C.D.O.’s, according to officials who have seen the bid lists."

Wow. So about 40% of this junk was CDO-squared.

And people wonder how all these super duper new risk management systems could actually fail to properly assess risk. Software results are only as good as its inputs...and no one even has an inkling of what this junk is really worth.

And good ole Hank had the nerve to come out yesterday and say the housing market has bottomed. They must be really desperate to avert a major financial crisis to resort to that line. Making sure friends and family unwind their positions with minimal losses is far more important than future historical infamy. Sad.

Posted by: GTT [TypeKey Profile Page] at June 21, 2007 6:07 PM [link]



from seeking alpha article on EWC/etf and oil sands...a little dated and perhaps old saw by now but interesting (links get me blocked)..I wonder how much of the big equity price moves are behind us, or not?
" Geologists estimate that anywhere from 175 to 330 billion barrels of the molasses-like crude in Canada’s oil sands region are recoverable. Saudi Arabia, by contrast, possesses 262 billion barrels of proven reserves. Over the next decade, nearly two dozen companies from Canada, the United States, France and China are planning an estimated $100 billion in oil sands projects, and few countries can match growth on that scale. Longer term, there's only really one rival and that's Saudi Arabia....Last spring, Canadian pipeline giant Enbridge (ENB.TO) signed a deal with Petro-China to anchor a new $2.5-billion oil sands pipeline to the West Coast, then shipping on tankers to Asian markets, including China. Beijing is recycling its immense trade surpluses by buying up oil, coal, natural gas, and other energy assets on multi-billion-dollar deals with Africa, Iran, Indonesia, Australia and Venezuela."

Posted by: jasper [TypeKey Profile Page] at June 21, 2007 6:18 PM [link]

Jasper. Don't forget the Orinoco Tar Sands in Venezuela which some experts consider larger than the Canada oil sands region. No wonder Hugo is always smiling.

Posted by: Horatio [TypeKey Profile Page] at June 21, 2007 7:47 PM [link]

Mike, Could you imagine having a big run up on a junior and having to call your broker to trade?

How is it we have all these wonks beating their chests over "free trade" yet we can't buy TSX listed shares?

Posted by: Craig [TypeKey Profile Page] at June 21, 2007 8:08 PM [link]

Hey, only one login for typepad today ! ! ! Groovy ! ! !

Jasper,
I believe the next world war will be fought over commodities. It may not be in our kids lifetime but it will eventually happen because countries are starting to plan their hoards....

Posted by: cb [TypeKey Profile Page] at June 21, 2007 8:20 PM [link]

RE: Canadian trading

I opened a IB account years ago to have access to the TSX. Commissions are low and trading platform is complex for the average retail investor. Also, there is little hand holding by IB support. This is all by design as the commissions are dirt cheap.

E*Trade has announced access to 6 international markets, including TSX in July. E*Trade US trade commissions are low so I am anxious to see the cost of forex and international trades. The platform and customer service through E*Trade are much better than IB.

I like Scottrade too but they are more like IB for support and E*Trade for platform so I guess they are an inbetween.

Posted by: cb [TypeKey Profile Page] at June 21, 2007 8:26 PM [link]

Hey Guys,
I have discovered the "remember me" button right above the comments box. The default seems to be NO.
Try checking YES before hitting the SEND button and see if typepad doesn't recognize you.

It worked for me. Back to normal, so far it remembers.

Otherwise it will generate that "comment submission error" message and send you to type key playland to be checked by homeland security.

Posted by: Craig [TypeKey Profile Page] at June 21, 2007 8:29 PM [link]

Moab,

I've also made a couple of purchases of Abitibi. The industry seems to be doing the right things like shutting down unprofitable plants and appears willing to make the hard decisions in order to maintain their ROI's. It's a long term one, but I think it will pay off handsomely as demand (eventually) picks up. A couple of other ones I have in forestry are Norbord and the SFK Pulp Fund which both have strong dividends to help ease the wait (I think they only trade in Canada though).

Posted by: bb [TypeKey Profile Page] at June 21, 2007 8:30 PM [link]

RE: KRY

Every trading day since the permit/bond announcement has shown accumulation. I don't see how this is a bad thing.

Also, volume waning in the 4.3-4.4 range. Of course this thing could fall apart at any moment with 276M shares out. It would only take one large shareholder to bring this thing to its knees in the short term.

Also, short interest has been up in May and June.

http://www.amex.com/amextrader/tradingData/amexShortInt/AmexShortInterest.jsp

No doubt this is a hedge for those who got in at low prices. I assume they are locking in gains/buying options to protect the downside from a Chavez surprise.

Posted by: cb [TypeKey Profile Page] at June 21, 2007 8:36 PM [link]

Have you been watching Micron (MU) since, in mid-April, it hit the Cara Accumulation Zone and then the Buy Alert?

I was saying it would be a good buy under $11. That week, the "Gold"man was saying MU was headed to 10. Those who believed GS sold their MU -- right at the bottom.

Well, a couple weeks later, MU is $13.24.

In a normal cycle that's almost a Bull market in the space of a couple weeks.

Funny how the Big Swinging Dicks at GS couldn't see the price increases in chips coming? Do you think?

Posted by: Bill Cara [TypeKey Profile Page] at June 21, 2007 10:13 PM [link]

Bill,

This is my second attempt to post here, hope it works tonight. I have been using the RSI to hopefully enhance my timing on buying & selling. It has or appears to be working with MU which I took a position in approx a month ago. I read you blog just about everyday, a great way to start the day. I have also picked up info on other sites from your comments that have been a great education to me.
Keep up the great work.

Posted by: vavoline6 [TypeKey Profile Page] at June 21, 2007 10:45 PM [link]

Interesting bit regarding new inclusion rules for the Russell indicies.

http://www.russell.com/indexes/membership/US/Reconstitution/reconstitution_qa.asp


"2007 Reconstitution Frequently Asked Questions Reconstitution Process Q: Russell will be adding Benefit Driven Incorporated companies during reconstitution this year. This notably will impact the U.S. Indexes since previously these companies were excluded. What was behind this methodology change? A: Prior to 2007, country of incorporation was the sole input used to determine whether a company was a U.S. company for the purposes of Russell index membership. Starting with Global Index Reconstitution 2007, Russell has expanded its company eligibility to include those companies which are domiciled and traded primarily in the U.S., but incorporated in other countries for certain tax, operational, political or financial market benefits. The countries/regions identified as BDI's are: Antigua/Barbuda, Bahamas, Belize, Bermuda, British Virgin Islands, Cayman Islands, Channel Islands, Cook Islands, Faroe Islands, Gibraltar, Isle of Man, Liberia, Marshall Islands, Netherlands Antilles, & Panama...."

Should be very interesting to see the volumes in some of the BermudaRe companies. The Russell rebalance can cause some massive late day price dislocations....

Posted by: BillySundance [TypeKey Profile Page] at June 21, 2007 10:56 PM [link]

You made me a lot of money so far on MU Bill.
I got in at 10.90 something and ran it up a few times buying the dips and selling the frenzies a few times since. Even after a couple trips I have a low 11 basis.

You are right, if you buy with a margin of safety and the fundamentals are sound you can relax on the pullbacks and be a buyer with confidence.

Posted by: Craig [TypeKey Profile Page] at June 21, 2007 11:07 PM [link]

Is Blackstone going puplic at the top of this market move so that some time in the future they can take their self private? This would provide great financial gain for the principals. Why can't I think of stuff like this?

Posted by: koby [TypeKey Profile Page] at June 21, 2007 11:35 PM [link]

As regulars know, I have a great appreciation for the full cycle approach of John Hussman. Although it requirs EXTREME amounts of patience, investments in his fund, I believe, will beat the SP500, but only over the full market cycle. In these late moves (basically since July 2006) he will lag badly given his exposure. I wonder how many have noticed that he has essentially traded his ST return in the form of implied interest on his hedges for ADDITIONAL DOWNSIDE PROTECTION here? In other words, while his hedging strategy was providing him his only small returns lately (his stock selection vs market has not) and assets under management has suffered, Hussman has given up even those paltry returns for portfolio protection. I say "Wow." Food for thought.

Posted by: MarkM [TypeKey Profile Page] at June 22, 2007 6:44 AM [link]

JogyP (and maybe Fred)-do we have the ultimate open shaping up for our current positions...i see a sharply lower market coupled with higher gold prices..

Posted by: 2nd_ave [TypeKey Profile Page] at June 22, 2007 7:19 AM [link]

an extract from Bill’s post last night:
“Have you been watching Micron (MU) since, in mid-April, it hit the Cara Accumulation Zone and then the Buy Alert? …
Funny how the Big Swinging Dicks at GS couldn't see the price increases in chips coming? Do you think?”
Yes, I have been watching - with skin in the game – notably, Oct 11 calls, which have now doubled.
Given the rising prices of agricultural commodities, I knew chip prices were going up. Why, it’s gotten so bad, I’ve had to alter my consumption: I’ve switched to microwave popcorn.
I think I’d like to thank you, Bill.
Here’s what I picked up last night:
-Reuters reported that MU had the 4th largest month over month increase in overall short positions – a 38% increase from 36.5 million to 50.4 million
-from the Yahoo site, the open interest in July calls for MU with strike prices between $11-$15, inclusive is 268,151 --2.8 million shares!
MU is reporting Q3 FY07 next week – June 28, as I recall- the day Bill meets fans at the King Eddy.
So…what I think is that some people are shorting shares in anticipation of really bad q’ly earnings and some of those shorts are hedging their bets with July calls.
But, prognosticators are already anticipating really really bad q’ly results from DRAM manufacturers – the worst of the decade, according to one analyst, quoted in an article I read.
So, is it possible that the MU price won’t drop with the Q’ly earnings release, as shorts expect; and we could have ever an increasing price rise, juiced by a short squeeze?
Your view, Bill? Anybody?
I disclose my greedy quandary: to bail or not bail before June 28.
Regards all
joey

Posted by: joey [TypeKey Profile Page] at June 22, 2007 7:44 AM [link]

whoops.
correcting overlooked mistake...

call open interest is 26.8 million shares!

sorry all.
joey

Posted by: joey [TypeKey Profile Page] at June 22, 2007 7:49 AM [link]

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