In the 1980s, the Federal government created a venture-like investment vehicle known as a “business development company”(BDC). Congress designed BDCs to help emerging U.S. businesses raise funds to fuel job growth. BDCs provide capital and supply financing to companies through a wide variety of mechanisms, including equity, debt and hybrid financial instruments. The majority of BDC income is generated by loans to client companies. Some loans are secured, and some loans have less secure backing. This is something to check and keep in mind if we are moving into a recessionary period.

BDC’s by legal definition must pay 90% of taxable income to it shareholders as a dividend.

Since this is a pass-through of income, 10K’s will likely be issued by the companies to shareholders for their tax returns. Consult your tax attorney for your specific situation’s application. Continue reading →

Talking Points:

I: LOTM on crowd sourcing of opinions by sector and industry leaders.

II: Ray Dalio on owning hard assets to pay back debt while the governments use printing presses to pay back debt.

III: Larry Fink on Crypto, Defense spending, On-shoring / Re-shoring, Medical advances, Robotics and AI.

IV: Mike McGlone, Chief Macro Strategist at Bloomberg shares his views on what lies ahead in 2024.

I: LOTM on Crowd sourcing Leadership Views:

We spend copious amounts of time listening to industry and sector leaders getting their view points on investing, geo-politics and macro views. Continue reading →

• 21 company names follow that are Buy or strong Buy Ideas from a quant study.
• Some dividends are high, and some are more modest.
• An Technical Analysis opinion of the names by StockTA is independent of the te Quant study
• Keep in mind there are three ways to determine if a company is worth buying: Fundamental, Technical and Behavioral. It is nice if they all align but frequently do not.

The names below are the highest ranked names out of thousands screened by Seeking Alpha and then we sorted as to those with higher dividends. The rankings change every day. We’ll work on doing a weekly update. The “TA Overall” is from StockTA.com. StockTA is a free service. It’s a mechanical ranking and also change on a daily basis. Seeking Alpha has multiple levels of subscription service. LOTM has not focused on Dividend paying ideas. We wanted to develop a repeatable process with a dividend focus within a Quant Study filtering process. Our goal is to build consistency and pattern Continue reading →

This is going to be short and sweet on my part.

I am going to let four videos below that just came out do the talking for me. You may not agree with the videos, but realize that the people speaking are very experienced, traditional finance people. This is very male. Very blunt and direct. They feel we are all in the fox hole and about to be over-run. The language is strong. Opinions are strong. The panic is now and in the Bond market, so this is not directed at only at crypto focused investors.

The LOTM theme for more than a year has been Hard Assets and Crypto. It has not been a pleasant run, especially in 2022. Now the rest of Wall Street seems to be singing the Crypto / Hard Asset song. It is still early days. Continue reading →

SUMMARY:
Pan American Silver Temporarily Closes Mexican Mine.
Bitcoin as Hedge against Inflation
Jefferies recommends a 10% of assets weighting to Bitcoin to protect from Inflation.
Mark Yusko on Blood in the Street for Bond holders.
New addition to LOTM Ten Under $10 – Third new name in the past week.

Pan American Silver (PAAS) $13.87

Pan American close its largest mining operation. Pan American Silver said it has suspended all operating activities at its La Colorada mine in Mexico after reporting an armed robbery involving two trailers of concentrate. We think this is a one off event and that Pan American can be back in business within weeks. I mention this here because a drop in price on the news over the weekend is seen by LOTM as a buying opportunity. The mine site was robbed. PAAS closed the mine due to safety concerns of the workers. Is seems to me that added security at the site can resolve the issue of being an ongoing issue. That is only my personal opinion with out direct Continue reading →

• Three of the four largest bank failures ever happened in in 2023.
• Should you care?
• What is the fallout?
• What to do? The Bottom-line
• What’s the real rate of inflation if we use the calculations from 1980?

Should you care that three of the four largest bank failures happened in 2023. Certainly. Yet the government projects that all is well. It is not. All banks that hold US Treasuries as a reserve currency are in similar positions. It is only how they report holding the assets that determines the price at which they are held that determines the liquidity pricing of te treasury bond. If they are classified as long term assets, Banks can carry them on their books at the maturity value. As soon as the banks have a need to sell the bonds, as in a run on the bank the bonds are then re-rated to their “market price of call a marked to market price. These now prices at 50% less than their maturity value as in the case of 20 plus years and longer bonds. Snap your fingers and now the banks are insolvent. Many more banks are insolvent as soon as they need to Continue reading →

When an industry is “hot” money is put to work quickly through the buying of the ETFs of that industry. Money flows in, the ETF buys the stocks within that ETF and the stocks go up. Momentum buyers buy more of the ETF and the ETFs buy more of the stocks. It is a wonderful thing! That’s pretty much how seven stocks have driven the market higher over the past decade.

The seven stocks that have driven the market are Apple, Meta, Tesla, Nvidia, Microsoft, Alphabet and Amazon. Money flows into the NASDAQ 100 (QQQ) and the S&P 500 (SPY) and because these indices are market weighted indices, an outsized amount of money goes into these seven stocks and less into the remaining stocks in the indices. Continue reading →

• Twenty of our highest conviction gold & silver junior miners. Yes, the industry is that over-sold!

“Mining stocks are as inexpensive to the price of physical metals as I have seen in my career.”

Ross Beaty founder Pan American Silver (PAAS*) and largest individual shareholder of PAAS. Beaty is also the founder and Chairman of Equinox Gold (EQX)

Billionaire Ross Beaty: “All Is Good for GOLD” YouTube Video 9/14/23– 23 minutes

Continue reading →