Corporate Cash

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Japanese Exports

U.K. Protest

Consistent with my concern that ‘taking things from people they have come to expect will result in leaving them unhappy, and ultimately may lead to social discord’ witness the protest that took place in London, England on Saturday.  According to an article titled ‘Up to 500,000 protestors attend anti-cut demo‘ – reading time 4 minutes – between 400,000 and 500,000 U.K. teachers, nurses, firefighters, public sector employees and others marched in a protest through central London to rally against cuts in jobs and services.  While the demonstration broadly was reported as civil, it came with some minor ‘acts of violence’.  That said, it strikes me as one more serious warning sign that the debt circumstances faced by many countries may well result in negative societal consequences that none of us may find attractive.

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Additions to Stock Research Portal’s ‘Company Universe’

Today we added the following Companies to our Company Universe:

First Mexican Gold Corp. (TSXV:FMG).  We currently categorize First Mexican Gold Corp. as a company focused on gold (and silver) exploration operating principally in Mexico (Sonora).  First Mexican Gold Corp.’s current market capitalization is approximately Cdn$12 million.  Review research data on First Mexican Gold Corp.

Full Disclosure:  I am a shareholder in First Mexican Gold Corp., and participated in a recent First Mexican Gold Corp. private placement.  First Mexican Gold Corp. is an early stage explorer, and was only recently listed on the TSXV.  I consider First Mexican Gold Corp. to be highly speculative, and consistent with my standard practice, I am not recommending this or any other security.  I advise readers do their own research on this company or any other company and discuss their findings and views with their investment advisors before either buying or selling securities.

Western Energy Services Corp. (TSXV:WRG).  We currently categorize Western Energy Services Corp. as an oil & gas services company operating principally in Canada (Alberta), Caribbean/Central America (Guatemala) and the United States (Texas).  Western Energy Services Corp.’s current market capitalization is approximately Cdn$295 million.  Review research data on Western Energy Services Corp.

Press Release Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe who last Friday issued Press Releases and whose shares increased in price from the previous day’s close by more than Cdn$0.05, more than 10%, and whose share volumes last Friday exceeded their trailing 3 month average trading volume.   Clicking on the company name in the table will take you to StockResearchPortal.  Once logged into the website you will be taken directly to that company’s ‘Company Overview’ page where you can research all company data currently available on our website.

* Yesterday’s data, or latest trading day’s data, as applicable

Yesterday’s Insider Trade Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system last Friday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions.  Clicking on the company name in the table will take you to StockResearchPortal.  Once logged into the website you will be taken directly to that company’s ‘Company Overview’ page where you can research all company data currently available on our website.

Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

Possibly Related Posts:

• Greek Eurozone Exit Consequences?
• Q1 2012 Europe and Eurozone GDP!
• An Accident Waiting to Happen, or ‘Ever Closer To The Cliff’!
• After Spain, is Italy Next?
• Spain and Spanish Bank Dilemma!

Portugal

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U.S. New Home Sales

Yesterday U.S. February New Home Sales numbers were announced, and they were both disappointing and dismal.  Two articles that deal with this are in my view both worth taking the time to read.  These articles are titled ‘New Home Sales Plunge‘ – reading time 4 minutes – and ‘Another 50% Leg Down In Home Prices‘ – reading time 4 minutes.  According to one of these articles U.S. New Home Sales historically have represented about 10% of total home sales, but often are seen as a ‘current barometer’ because new home sales are counted when a contract is signed, whereas home resales are counted when the transaction closes.

In any event, U.S. new home sales were reported to have fallen to a 250,000 per year annual pace, the slowest on record, while the year over year median price fell from U.S.$221,900 to U.S.$202,100.  This signals, or so I think, serious ongoing problems for (1) the U.S. residential construction industry and related employment, (2) U.S. consumer confidence, and (3) U.S. consumer spending.  It strikes me that there are a lot of things happening at the same time – Japanese troubles, Libya, other Middle East issues, questions around Chinese inflation, etc., that dropping U.S. house sales and prices – if those things turn into a near-term trend, which is how I would bet – is throwing gasoline on an economic fire.  Again, I think it would be worth your while to read and think about both referenced articles.

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Manufacturing Importance

Additions to Stock Research Portal’s ‘Company Universe’

No new companies have been added to our Company Universe today.

Yesterday’s Press Release Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe who last Friday issued Press Releases and whose shares increased in price from the previous day’s close by more than Cdn$0.05, more than 10%, and whose share volumes last Friday exceeded their trailing 3 month average trading volume.   Clicking on the company name in the table will take you to StockResearchPortal.  Once logged into the website you will be taken directly to that company’s ‘Company Overview’ page where you can research all company data currently available on our website.

* Yesterday’s data, or latest trading day’s data, as applicable

Yesterday’s Insider Trade Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system last Friday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions.  Clicking on the company name in the table will take you to Stock Research Portal.  Once logged into the website you will be taken directly to that company’s ‘Company Overview’ page where you can research all company data currently available on our website.

Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

Possibly Related Posts:

• Greek Eurozone Exit Consequences?
• Q1 2012 Europe and Eurozone GDP!
• An Accident Waiting to Happen, or ‘Ever Closer To The Cliff’!
• After Spain, is Italy Next?
• Spain and Spanish Bank Dilemma!

U.S.$ – Gold etc.

If you are a participant in the equity, money, and physical gold markets, and I assume you may be if you are reading this, I strongly suggest you take that time to carefully read an article published yesterday titled ‘Investment Legends: Dollar Collapse Inevitable‘ – reading time 7 – 10 minutes.  The article sets out an interview by Jeff Clark (Casey Research) of nine people who express their views on the economy, inflation, physical gold, and give their respective ‘best investment advice for 2011.  What struck me about the comments made by these nine ‘experts’ was the quality and objectivity I thought evident in many of the comments made.  Two comments of note:

·        Jeffrey Christian, the Managing Director of CPM Group, is quoted as saying:  “Do not invest based on what you believe, but on what you know”.  Sage advice that you may have heard before, but advice worth revisiting in my view – particularly in these turbulent economic times (a further example of which is that this morning the Portugese Government is reported to have fallen on a budget vote – more on that in tomorrow’s e-mail); and,

·        Krassimir Petrov, an Austrian economist who currently is an associate professor at Ahlia University in Bahrain, is quoted as giving the following advice:  “What to watch in 2011: stay focused on the sovereign debt crisis and bond yields.  Spiking yields will trigger the next stage of the crisis”.

The nine interview participants, in the order they respond to the questions asked, are Jim Rogers, Bill Bonner, Peter Schiff, Jeffrey Christian, John Williams, Steve Henningsen, Frank Trotter, Krassimir Petrov, and Bob Hoye.  You may be familiar with some of these names.  The article provides the background of each.  They don’t all agree on most of the things asked of them, although all pretty much agree that the trend price for physical gold is up from here – with the likelihood of ‘bumps in that upward road’.  I think their disagreements make for interesting and thought-provoking reading.

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Japan – U.S. Output?

A Wall Street Journal article this morning titled ‘Japan Quake Could Have Big Impact on U.S. Output‘ – reading time 2 minutes – says that March U.S. Industrial Output data (released mid-April) is likely to show a further decline from February’s negative number.  The author blames this on the after-effects of the Japanese earthquake – see my comments on the Global Supply Chain made two days ago if you haven’t read them.

It strikes me that the article may be addressing a complex problem in an overly simplistic way.  The Japanese earthquake occurred on March 11.  February then was long since over.  Accordingly, if the March U.S. Industrial Output number comes in at a lower number than February’s it is likely not just to be the result of the Supply Chain disruptions that result from the Japanese earthquake.  It may prove to have dropped anyway.  If that proves to be the case I suggest careful analysis as to reasons for such a drop will be required.  Something to watch for.

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Global Fiscal Positions

A second Wall Street Journal article this morning is titled ‘Global Fiscal Positions: How Does U.S. Rank‘ – reading time (with review of linked rankings) 3 minutes.  The article focuses on a ‘Sovereign Fiscal Responsibility Index’ released yesterday by Comeback America Initiative.  I suggest this article makes highly interesting and ‘think for yourself’ reading.  The Comeback America Initiative is headed by former U.S. Comptroller-General David Walker.  Prepared in conjunction with Stanford University, the idea behind the index is reported as being “to make it easier to gauge the fiscal health of major world economies.  The index rankings are based on (1) an analysis of the amount of additional debt a country could issue before being likely to face fiscal crisis, (2) a country’s projected future debt, and (3) a country’s ‘fiscal governance’, which rates a country’s ‘spending rules’, fiscal transparency, and ‘rules enforceability’.

I suggest you link to the index results.  Australia finished in 1^st place, ahead of China (5^th), the U.K. (9^th), Brazil (10^th), and Canada (11^th).  The United States finished in a dismal 28^th place (out of 34 countries), was behind Poland (13^th), Mexico (18^th), Spain (24^th), and Italy (27^th), and was ahead of only Hungary (29^th), Ireland (30^th), Japan (31^st), Iceland (32^nd), Portugal (33^rd), and Greece (34^th).  The following things occur to me:

·        does this index have any validity?  If it does it seems to me it speaks volumes in support of all those commentators and pundits who continuously berate U.S. economic recovery and the continuing debt the U.S. is incurring.  When last November’s mid-term U.S. election results were announced I said those results would lead to even more deadlock in Washington, and the U.S. could not afford the time that would be wasted as a result.  As I see things, there is more deadlock in Washington than there was, and almost 5 months later I still see the need for the U.S. Federal Government to reduce its deficits now in a significant way, not continue to increase them.  I for one can’t see how it is possible the U.S. has years to balance its debt and its economic results;

·        I assume the index was generated before the Japanese earthquake, and wonder what affect that event would have on Japan’s ranking in the index if it is rerun going forward;

·        of the so-called EuroZone PIIGS (Portugal, Ireland, Italy, Greece and Spain)  the U.S. is ranked lower than Spain and Italy, and only marginally ahead of the other three – what does this say to you?

I say worrisome indeed, again with the caveat that credibility is assumed for this index.

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Commodity Prices

There are some neat and readily understandable charts in an article published today titled ‘Commodity prices in pictures‘ – reading time 5 minutes.  A sampling of these charts are titled ‘Commodity prices track world demand’, ‘(U.S.) CPI Component Price Change Distribution’ in the past 12 months – a chart I think is well worth reviewing and thinking about, ‘(U.S.) Energy Expenditures as a Share of Income and Expenditures’, and ‘(U.S.) Food at Home as a Share of Income and Expenditures’.  If you are interested in the question of whether we are likely to experience an inflationary or deflationary environment going forward (whether or not we live in the U.S.), a review of these and the other charts presented in the article may be of interest to you.

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Additions to Stock Research Portal’s ‘Company Universe’

Today we added the following Companies to our Company Universe:

Quia Resources Inc. (TSXV:QIA).  We currently categorize Quia Resources Inc. as gold exploration company operating principally in South America (Colombia).  Quia Resources Inc.’s current market capitalization is approximately Cdn$30 million.  Review research data on Quia Resources Inc.

Santa Barbara Resources Limited (TSXV:SBL).  We currently categorize Santa Barbara Resources Limited as a gold exploration company (also copper, silver) operating principally in South America (Ecuador, Peru). Santa Barbara Resources Limited’s current market capitalization is approximately Cdn$7 million.  Review research data on Santa Barbara Resources Limited.

Valeura Energy Inc. (TSXV:VLE).  We currently categorize Valeura Energy Inc. as an oil & gas exploration and production company operating principally in Asia (Turkey).  Valeura Energy Inc.’s current market capitalization is approximately Cdn$95 million.  Review research data on Valeura Energy Inc.

Yesterday’s Press Release Highlights

Yesterday’s Insider Trade Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system last Friday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions.  Clicking on the company name in the table will take you to StockResearchPortal.  Once logged into the website you will be taken directly to that company’s ‘Company Overview’ page where you can research all company data currently available on our website.

Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

Possibly Related Posts:

• Greek Eurozone Exit Consequences?
• Q1 2012 Europe and Eurozone GDP!
• An Accident Waiting to Happen, or ‘Ever Closer To The Cliff’!
• After Spain, is Italy Next?
• Spain and Spanish Bank Dilemma!

Japanese Fuel Crisis

An article Monday titled ‘The Japanese fuel crisis‘ – reading time 4 minutes – comments on the fuel and other supply problems faced by Japan in the wake of the March 11 earthquake. According to the article, nine of the twenty-nine refineries in Japan have been damaged and put ‘out of action’, with the amount of fuel output reduced from 4.5 million to 3.4 million barrels per day by the end of March – this after two operating refineries work to increase their throughputs. The article includes a cogent quote attributed to the mayor of one the affected cities: “What we urgently need now is fuel, heavy and light oil, water and food. We can’t stay warm or work the water pumps”. We all ought to think of that if we are among those fortunate to enjoy the simple pleasures of running water, a warm shower or bath, access to a well-stocked supermarket, a car that we are able to find fuel for, a furnace that provides warmth, etc. etc. – while remembering life holds no guarantees.

The article also discusses Liquid Natural Gas in Japan, in circumstances where only one LNG terminal remains closed, and reviews pipelines available to transport it. An article worth reading and thinking about.

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Europe Re-Divided?

An article earlier this week written by George Soros titled ‘Europe Re-Divided?‘ – reading time 4 minutes – says “The so-called euro crisis is generally seen exclusively as a currency crisis, but it is also a sovereign-debt crisis – and even more a banking crisis. The situation’s complexity has bred confusion, and that confusion has political consequences”. As I read the article Soros blames much of what he sees as the prospect of a ‘two-speed’ Europe potentially undermining Europe’s political cohesion. The ‘two speed’ Europe he refers to is, I think, his way of expressing what he sees as the necessity of German sovereign credit for any solution to what he sees as Europe’s economic, financial, and even political crisis in circumstances where Germany:

• has to (or should) assume a major responsibility for the EuroZone currency and banking crisis, and possibly sovereign debt crisis; but,

• works to place all the ‘burden of adjustment’ on the European debtor countries.

I found this article required more than the usual amount of concentration to read. That said, because of what may prove to be the importance of the EuroZone financial stability to world financial stability, I suggest you take the time to read this article (which is not lengthy) and see if you agree with my interpretation of Soros’ remarks.

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Fiscal Policy & Challenges

The International Monetary Fund’s John Lipsky, First Deputy Manager of the IMF, gave a paper ‘Fiscal Policy and Structural Fiscal Challenges‘ this past Sunday (March 20) to the China Development Forum in Beijing – reading time 10 minutes. I suggest you read the paper carefully, not only for what it does say, but for what it doesn’t say. What I took from the paper is a high level summary of some of the economic problems facing both the developed and developing economies with suggestions that, even if decided today (which I don’t think plausible), would be so long term in their execution as to be impractical.

By now it will be evident to you that I did not come away from my reading of this paper with ‘warm and fuzzy’ feelings with the outcome of the current unemployment and ever increasing debt profiles of the major developed economies. In fact, I think that while the background information is sound, the time-frames and expectations of (in particular developed country) government actions are naive. As I read his paper, Mr. Lipsky also makes a broad unstated underlying assumption that no disruptive events, such as escalation of social disruption in North Africa/The Middle East (being only one example that will ‘tip the macro-economic cart’ over), will occur going forward. While I suppose anything is possible, unexpected disruptive events are almost certainly going to occur as I see things.

All up, all in, I suggest you read this paper as a useful overview document that reiterates a number of developed and developing country economic problems, think about whether you agree with my observations – and if you do, I suggest you focus on what I think is the current escalating macro-economic uncertainty.

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Additions to Stock Research Portal’s ‘Company Universe’

Today we added the following Companies to our Company Universe:

Marathon Gold Corp. (TSX:MOZ). We currently categorize Marathon Gold Corp. as a company focused on gold exploration operating principally in Canada (Newfoundland and Labrador) and the United States (Idaho). Marathon Gold Corp.’s current market capitalization is approximately Cdn$33 million. Review research data on Marathon Gold Corp.

Newstrike Capital Inc. (TSXV:NES). We currently categorize Newstrike Capital Inc. as a gold exploration company (also copper, silver( operating principally in Mexico (Guerrero, Oaxaca). Newstrike Capital Inc.’s current market capitalization is approximately Cdn$105 million. Review research data on Newstrike Capital Inc.

Sagres Energy Inc. (TSXV:SGI). We currently categorize Sagres Energy Inc. as an oil & gas explorer and producer operating principally in South America (Colombia, Guyana) and Caribbean/Central America (Jamaica). Sagres Energy Inc.’s current market capitalization is approximately Cdn$25 million. Review research data on Sagres Energy Inc.

Yesterday’s Press Release Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe who last Friday issued Press Releases and whose shares increased in price from the previous day’s close by more than Cdn$0.05, more than 10%, and whose share volumes last Friday exceeded their trailing 3 month average trading volume. Clicking on the company name in the table will take you to StockResearchPortal. Once logged into the website you will be taken directly to that company’s ‘Company Overview’ page where you can research all company data currently available on our website.

* Yesterday’s data, or latest trading day’s data, as applicable

Yesterday’s Insider Trade Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system last Friday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions. Clicking on the company name in the table will take you to StockResearchPortal. Once logged into the website you will be taken directly to that company’s ‘Company Overview’ page where you can research all company data currently available on our website.

Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

Possibly Related Posts:

• Greek Eurozone Exit Consequences?
• Q1 2012 Europe and Eurozone GDP!
• An Accident Waiting to Happen, or ‘Ever Closer To The Cliff’!
• After Spain, is Italy Next?
• Spain and Spanish Bank Dilemma!