What to Do?

Prime Junior Silver Miners ETF

Long Time readers Know we have been bullish on Silver and gold since June of 2015. That is when the miners were valued at the lowest price Vs the physical metals ever. “Too Cheap”, is what we said at the time. Since then we have had some amazing rallies and some breathtaking corrections, but always working in an upward direction. It is not ending any time soon. The 2020 chart above is easy to read. A 50% decline in less than four weeks in March a really nice rally to August 1 and a correction until now. What to do? Continue reading →

Market took a big correction this week. Our positions came down like everyone’s.

We have a position or two we will sell on a rally.

A possible candidate is FLY. Further research into the Airline industry suggest that lease rates were being negotiated lower even before Corona-19 Virus. Probably more so since the Communist  China Corona Virus arrived. It is beginning to look like too much swimming against the current with no visible catalyst to resolve the issue. We do not suggest buying or adding to this position. Continue reading →

• Obvious we are in a stock market correction.
• We’re not sure who our leadership will be coming out of the Election.
• We’re not even sure we’ll know after the election who will be the leader unless it is a landslide, one way or the other.

There are some things we can place in the “high probability” camp as investors.

Fiat Money will continue to be printed in an effort to stave off depression – Inflation is easier to deal with and it allows the government to pay back “our” debt with cheaper dollars. What that means for you and me, is a loss of purchasing power. Continue reading →

LOTM’s Top Picks in Natural Gas Industry

LOTM: we started following Leaders in the Nat Gas industry in July and August of this year. EQT is the largest Nat Gas producer is the USA. COG and AR are in the two to five positions depending on the revenue flows. Multiple analysts are predicting rising energy prices in 2021 and 2022 due to shut-ins, bankruptcies, and cutbacks in Cap-X spending. What we have heard from a number of E&P companies, is when oil moves above  $50, they expect to expand their drilling activity. That mean supply is limited for the time being. In the meantime, they will reduce debt. Continue reading →

An Out-of-Favor Sector of the Market – Went BOOM!

This chart above is not unusual. Who is DAC? DAC (Danaos) is a container shipping company. After tripling in price, the P/E is still only 1.4 on a ttm and 1.2 on a forward basis. Value? Yes. Too cheap. Not exciting stuff – except, perhaps “the market” thinks the global economy is coming back. Don’t know. Just following the market. What I do know, is it is unusual for a shift in asset class, fund flows to end in just three weeks. Eight or nine months – OK. A two-year move? More normal. Continue reading →

Our original issue date of Ten Under $10 was price dated Aug 1, 2020. We have updated our numbers because somewhere or how the numbers and dates got confused in previous postings. You can see our very first posting of Ten Under $10 for a Double on our web site to double check our beginning share prices. Continue reading →

Ten under $10 for the Double:
Reminder that this is a dynamic list so we will hold positions greater or less than ten in the portfolio.

NEW NAME: Karora Resources (KRRGF)* $2.71
Today we are adding a less than known name but one we have owned off and on for about a year. Karora Resources is a Canadian based gold and nickel miner. This company is generating about $5 million a month in free cash flow. We KRRGF like longer-term as our belief is that we are shifting to a commodity based, investment theme globally. This trend could run from five to ten years. Therefore, we believe we have years of life in the miners with a price climax far into the future. Continue reading →

• Three possible outcomes to the USA debt problem
• Could Bitcoin go to $1 million per coin?
• Easy way to own Bitcoin

Three possible outcomes to the USA debt problem
We break the possible outcomes into, Two Extremes and the Middle:
I: The Federal Reserve leaves interest rates low for an extended period of time and weakens the US$ so that over the next ten years we pay back the USA debt with cheaper US Dollars. Estimated weakening is 3% to 5% a year for ten years. This results in a 30% to 50% loss of purchasing power over the next ten years. In this process, we lose purchasing power of our cash savings, bonds or interest-based investments. Hard asset investing is needed to retain purchasing power. Therefore, the positioning of Gold (precious metals) Commodities and hard asset investing. It is important to not have debt attached to these hard assets as your income needed to support the debt may disappear. It is also likely that in people’s need for liquidity, hard assets might need to be sold and we could have spikes lower in the value of hard assets. Continue reading →