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DoC's "Your a Daisy if you do" Stock Investment
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Jus DoC HoLiDaY
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DoC's "Your a Daisy if you do" Stock Investment
«
on:
August 30, 2011, 02:39:34 AM »
That's right...
DoC's moving on to the big boy game now. I just opened a Charles Schwab Account with a 1000.00 bucks today. My first investment will be in Sidney Resources Corporations, and I should be able to pick up to but not beyond 100,000 shares by Weds as soon as my account opens. But then I also found out, that the brokerage firm acts like a depositor bank as well, issuing bank cards, FIDC insured up to 250,000.
So...once again, DoC stumbles into the unknown with as much luck hopefully as he had when he decided to invest in just metals. So, I got my metals investment, now I'll be rocking the Gain Train, with penny stocks for starters, and once I build my capitol up, I'll switch to some long term, dividend paying stocks as well.
But for now...I got to put in some OT learning the ends and outs of borrowing on Margins, Put and Short selling, getting some great Stock portfolio tracking software...and most of all...seeking out the more secure penny stocks with high volume trading. The guy who sold me on the Idea, said this stock could go to 5 bucks a share! Imagine that...at 100,000 shares that very well could be a 500,000 dollar profit off of 1000.00 bucks..if I don't chicken out and sell it sooner. But I wouldn't sell unless it goes to .50 anyway. That would still bring in a modest 50,000! hehehe I'm loving it....now I'm off schooling myself.
Here's the Website to my first investment ... You can also go the Charles Schwab site and look up it's history for free.
Sidney Resources Corporations.com
It's ticker ID: SDRC
http://www.sidneyresourcescorp.com/
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Last Edit: August 31, 2011, 08:07:08 AM by Jus DoC HoLiDaY
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Re: DoC's "Your a Daisy if you do" Stock Investment
«
Reply #1 on:
August 30, 2011, 07:04:47 AM »
I'm already rethinking...
Think I'll just go with a 400.00 first trade to build on, leaves me room to manuever a little bit. Purchase a different stock as a hedge, prehaps add to it should the price decrease, to pick up as I view it...free shares (going down within reason anyway). Putting it all down on one horse, no matter the recent chart evidence, is ballzy and fool hearty. I want to be successful not famous. Trades only cost 8.95, well worth the cost to do it a bit better, protect your investment by diversity prehaps with layers, then to trust anything to an all or nothing decision. Something is always better then nothing. Lets hope for a couple of modest trades to the successful side before I screw up, take a loss, hide in shame.
I'm also going to google the local papers for more local information in Boise Idaho on the corporation, on this stock before purchasing it. Shouldnt be to hard to shake loose any local grief, issues, or future prospects.
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Last Edit: August 31, 2011, 08:15:46 AM by Jus DoC HoLiDaY
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Re: DoC's "Your a Daisy if you do" Stock Investment
«
Reply #2 on:
August 30, 2011, 09:56:50 PM »
OK First Trades,
Well after having a broker explain the trading sheet to me, I reviewed the Stock chart. My goal was purchasing shares at 0.01..so I put in an order for 30,000 shares at that price.
The order has not been filled yet at that level, 1 because the price is higher and secondly cause no one is offering at that level.
But then I got to thinking...because orders aren't official till filled, I amended my first trade offer of 30,000 shares at 0.01 and reduced it by 15,000.
I then put up a new order for the other 15,000 at the days low...at 0.0093. mainly I did this to counter buying shares at a higher price to have something to sell...just in case.
Today's final results, I have to two bids:
Buy order for 15,000 at 0.01 --- still pending
Buy Order for 15,000 at 0.0093 --- still pending
After I bid the original offer tho...I considered..what if the price doesn't retreat? I don't have nothing to sell, so...
I placed an order for 15,000 shares at 0.013..which was the current trading price. The order was filled immediately,
I'm officially the owner of 15,000 shares now, and have something to sell should it just rise again like last week to 0.021.
So that's it..I purchased 15,000 shares at current price, just in case it just goes up this week...and I have two orders pending, one at 0.01 and 0.0093 should the price go down to take advantage of the lower price if it heads that way.
Whats good about all this..your only charged a fee, if your orders are filled, so was able to accomplish this all with just one order filled at only one 8.95 charge today.
I have no sell orders right now..as my goal is over 0.02 and the price is currently well beneath this level..but keep in mind, it did hit that level just last week, and this years high is 0.11......
MY tipster seemly gave me good advice..as trading volume is high with this penny stock, which is important to trading, cause just because you place a buy or sell order..doesn't make it so if there aren't shares being offered or sold at those prices. But the company has been around since 1896, has just recently added 5 tracks of land..two of which it has patents on..and appears to have a trading volume that allows one to take advantage of these price moves..trading on average 400,000 shares aday..but recently in last two weeks at around 800,000 shares traded daily. And I spotted nothing in the local Boise newspaper archives early this morning before trying anything, that worried me.
All and all...a good first day setting up my strategy.
And I gotta tell ya...it was allot of FUN! hehehe!
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Last Edit: August 31, 2011, 08:15:07 AM by Jus DoC HoLiDaY
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MarketWatch 8/31/11: September is the cruelest month
«
Reply #3 on:
August 31, 2011, 06:34:56 AM »
Aug. 31, 2011, 12:01 a.m. EDT
September is the cruelest month
Commentary: September on average has been terrible for stocks
By Mark Hulbert, MarketWatch
CHAPEL HILL, N.C. (MarketWatch) — The stock market definitely has its work cut out for it in September.
The month’s historical record is nothing short of dismal, and there doesn’t appear to be any easy way to wriggle out from underneath the sheer force of that record.
Since 1896, for example, when the Dow Jones Industrial Average was created, the Dow has lost an average of 1.07% in September. The average gain for all other months is 0.71%. That spread of 1.78 percentage points is statistically significant at the 95% confidence level that statisticians often use to determine if a pattern is most likely genuine.
Furthermore, there has been a remarkable consistency to the stock market’s dismal performance during September. During each of the last nine decades, for example, September’s rank relative to other months in terms of performance has never been higher than ninth. It was dead last in five of those nine decades — including the most recent one.
To be sure, September’s terrible reputation is widely known, and patterns often stop working once too many investors begin trying to exploit them. But the pattern has been widely known for many years already, and shows no signs of weakening.
For example, it was more than 20 years ago that (as far as I can tell) the first academic study appeared in which September’s significantly below-average return was noted. Since that study was completed, the spread between September’s average return and that of all other months has been even wider than it was up until that point.
Might this coming September escape these odds, since the last several months have been such tough ones for the stock market? Unfortunately, it’s difficult to make this argument on the basis of the historical record.
In past Septembers, in fact, the stock market on average has performed even worse whenever the months immediately preceding it were bad ones for the stock market.
Like now, for example.
Perhaps the best argument that stock market bulls can make about September is that there would appear to be no good reason for why the month should be such a bad one for the stock market. Without a good theoretical explanation for a pattern, statisticians often remind us, there remains a not-insignificant possibility that the pattern is bogus.
This isn’t to say that there is no explanation for September’s dismal average performance. But I have looked far and wide and have never found one. If you know of one, please let me know — I’d love to study it.
The bottom line? September’s terrible record is like a crime without a motive. Be bullish at your peril.
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Sept is bad for Stocks eh? Great just Great.
«
Reply #4 on:
August 31, 2011, 08:01:26 AM »
Wow,
Going to have to take deeper look at the one years charts for my mining stocks and hell, the Dow too. If as the last article suggest, we should see a Wall Street correction, prolly big enough for them to launch QE3 in Sept. Question is..what do mining stocks do? We know Gold and silver goes up, not just cause the market goes down, but also it's the beginning of Indian and Chinese holidays and festivals..leading eventually up to Xmas and the Chinese New Year. I do remember the market sliding..but then all I have in memory is the terrific rise in metals next...and stocks go blank.
Now Hecla mining corp is showing a strong push up right now, and Sidney is showing a modest recovery from a down cycle..but not to bullish. But this ain't gold and silver...
So what does that article, my experience with metals last year, and their current positive trends tell me? Tells me, the mining stocks will first act like stocks. First Reaction will to get out of the stocks, and I think mining at first, will submit to the Fear play, but then as peeps then pile deeper, then they already have, into metals, mining stocks would be first to rise...Gold and silver is going up..there for corporate profits go up, if they go up..the stock goes up even if it don't pay a dividend.
So..I'll take a chance and fore go purchasing any Hecla mining right now at 7.80-8.00 and hope for a correction to 7.45 and 7.00. But it's presently not showing a weakness, and it may just continue to edge upward. I bought SDRC at a higher price then intended, but it doesn't pay to be a gunslinger all the time.
So I'll wait and watch some more on Hecla. if it shows no weakness, and a slow grinding trend upwards like presently... I may buy at 8.25-8.45 and keep it till it does hit 11.00-12.00 or more to start dumping.
Wish I had simply paid attention to mining stocks last Sept....and what that articled coined as the worse month for stocks.
Homework is required.
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Re: DoC's "Your a Daisy if you do" Stock Investment Day 1
«
Reply #5 on:
August 31, 2011, 11:48:35 PM »
Interesting Day..even missed a sell opportunity..dang it.
First Off SDRC went to .026..which is where I would have sold the 15,000 I bought yesterday..or double my money. But it retreated before I had the chance. But I didn't like the idea of selling everything with nothing to build on. So I put up a 10,000 share buy order at .02. It did go there, so picked up the extra shares. now I got something to build on. I also put out various buy orders at .015 and .01 to gather some more lower priced stocks. Sell points are double...so at .20, .30, and if you count the 10,000 at .02, another sell point at .40 if I choose.
Market end for SDRC was 0.0202
Not only that, but yesterday I set a buy Price for Hecla : HL for 7.60..when it was 7.90 ish. Well trade came through today, so I have my start on that stock as well. I nabbed 30 shares @ 7.60.
I also added another 450.00 to my cash holdings. Good news is at one time I Was 176.00 bucks in the green... just based off the first 15,000 share trade of SDRC. but it did retreat back down to just being 85.25 ahead in Net worth.
Stock Holdings :
SDRC 25,000
HL 30
Cash: 800.15
Net Worth of total investment: $1535.25
My Personal Investment $1,450.00
Not Bad..I don't have the money in the bank yet, and would really like to pick up more SDRC at lower then .015.
But I did manage to stay in the green today....hopefully that second buy opportunity comes tomarrow at 0.028 or my next low ball at 0.015.
Since this rise was bigger then last for SDRC, topped out at 0.021, last week.. .0266 this week I'm hoping I can move my sell target of 15,000 @ to .028..that trade would add 411.00 cash to my capitol. It's good for 2 months if need be...I ain't missing it if a sell target price comes along again.
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Last Edit: September 01, 2011, 03:59:25 AM by Jus DoC HoLiDaY
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New Stock: Geopulse Exploration Inc.
«
Reply #6 on:
September 01, 2011, 05:10:26 AM »
Well found another Stock to start watching:
GEOPULSE EXPLORATION Inc.
http://topics.nytimes.com/topics/news/business/companies/geopulse-explorations-inc/index.html
Ticker ID: GPLS
I found this stock off a Penny Stock site, but I've already been told not to trust them, so I further researched it, and found an article in the New York Times. Now it's volume isnt breath taking or nothing..but passable. I'll use this stock just as a lower attention, lower volume, lower share trading stock for good returns every once in a while. Trades will be spaced out, future ownership kept at about 45k total shares, with 15k trades, set up at further spacing.
Prolly set-up a First Trade Low ball offer tomarrow..currently it's trading at about .02, think I'll go 15,000 shares at 0.015, goes down further I'll snag another 20,000 shares at 0.01.
As it is tho..my tipster was right, i havent run across anything yet..in mining that seems as good as SDRC, in penny stocks anyway.
«
Last Edit: September 01, 2011, 05:19:26 AM by Jus DoC HoLiDaY
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DoC's "Your a Daisy if you do" Stock Investment Day 2 (Market Closed)
«
Reply #7 on:
September 01, 2011, 05:30:22 PM »
Trades today: 3
1ST Trade: Buy
9:30 AM EST
ALCL 5000 shares @ 0.062
2ND Trade: Buy
12:58 PM EST
ALCL 5000 shares @ 0.047
3RD trade: Buy
3:06 PM EST
ALCL 5000 shares @ 0.04
Net Worth of Invest: $1240.40
Cash: $ 28.30 Stock Investment: $1212.10
Shares out standing:
SDRC: 25000
ALCL: 15000
HL: 30
GPLS: 0
Over All Daily Performance:
-$294.85 (-19.21%)
Personal Investment: $1450.00
(Amount of money personally still invested in account)
«
Last Edit: September 01, 2011, 10:02:17 PM by Jus DoC HoLiDaY
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DoC's Friday Night Stock Market Close Investment Progress 9/2/11 (Day 3)
«
Reply #8 on:
September 03, 2011, 02:43:37 AM »
DoC's Stock Market Investment To Date 9/2/11:
Symbol Quantity Price Market Value Day Change +/- Cost Basis Gain/loss
ALCL 15,000 $0.039 $585.00 -$45.00 $771.85 -$186.85
HL 30 $7.86 $235.80 +$8.70 $236.95 -$1.15
SDRC 25,000 $0.0185 $462.50 +$107.50 $412.90 +$49.60
Totals: $1283.30 +71.20 $1421.70 -$138.40
Personal Investment: $1450.00
Notes:
So there it is, my first week in the stock market, and I know it looks bad, but I know...after following metals all last year, the market goes up and down..whether metals or stocks. So I'm not very worried yet, and I did research the companies too, so although not entirely comfortable, I am content.
Now ALCL is a financial consultant company to medium and small sized businesses. While HL and SDRC are Mining Stocks.
I know, I know..Why DoC are you buying stock in a Financial company when you preach against them all the time? hehehe Yeah even I take a step back, but my theory is logical. Not sure if correct yet, and I'm going to find out publically...hehehe GREAT!
Last year, the Banks and other Financial institutions worked opposite of metals, usually, and since I know we got at least 1 more QE coming, I'm not worried about financial companies going bankrupt yet....well not all at one time anyway. So I'm Attempting to play two ends against the middle, is what it amounts too.
I figure while one is doing bad..I can bottom feed, and totally be looking to sell trades at 50-100% profit. (Still trying to pin point the percent that allows for a fair profit, but allows quicker turn over).
Now I was watching Cramer last night on Mad Money, and was lucky enough to hear him say about 10 well researched stocks is all you really need in your portfolio. But I'm no Dummy, so I will be investing sooner or later in about another 6 non-financail stocks. I may have two financial starting out..to hopefully help me obtain some profit when the others are down, thus adding to their positions on down turns.
But why pick bad corps to do this? Well...you do the math..now time the number of stocks I have to only the last 6 month high for the Stock! hehehehe!
Here are the last 6 months high's:
ALCL current price: 0.039 6 Month high: 10.00 hehehe yes that's right you do the math!
HL 7.85 10.50 massive volume tho..over 8 million a day lately, listed on NYSE
SDRC 0.0185 0.11 Penny Stock Tip..I already have 25,000 of that!
So that's it...metals season just began, only makes since mining would do well too. I'm looking at oil now..the price is under 90.00 a barrel lately..stocks must be cheaper.
And one financial, at least starting out...for each time the freaking Idiots Stimulate the Economy again and one's on it's way..got to go here!
You know you can rub on something and make it hard as a rock..but eventually it fails! hehehe How do they forget this?
Well that's it..as far in thinking and positioning I've gotten in 3 days. May fail..but I had the balls to try!
«
Last Edit: September 03, 2011, 02:41:30 PM by Jus DoC HoLiDaY
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Reuters 9/5/11: Global Stocks, Euro Slide on Economy, Debt Fears
«
Reply #9 on:
September 05, 2011, 05:45:07 PM »
Global Stocks, Euro Slide on Economy, Debt Fears
Monday, 05 Sep 2011 08:42 AM
LONDON — Stocks fell on Monday and the euro hit a three-week low against the dollar as worries about Greek and Italian fiscal deficits and a regional election rout for Germany's ruling party cast more doubt on the euro zone's ability to solve its debt crisis.
Data on Friday showing U.S. employment growth halted in August fuelled concerns that the world's biggest economy is slipping back into a recession, sending Wall Street sharply lower on Friday before a long weekend .
The euro zone faces a week packed with political and legal risks, beginning with the German Federal Constitutional court ruling on Wednesday on claims that Berlin is breaking German law and European treaties by contributing to bailouts of Greece, Ireland and Portugal .
The yield premiums investors demand to hold Italian and Spanish 10-year government bonds rather than benchmark German Bunds hit their highest in a month.
"Not a great start to the week. There is a lot going on for banks, especially in the light of a low-growth environment and the backdrop in the euro zone not improving," said Mike Lenhoff, chief strategist at Brewin Dolphin.
The MSCI world equity index fell 1.5 percent on the day. It is just over 4 percent above an 11-month low hit during market turmoil in early August and has lost nearly 10 percent since January.
European stocks fell 2 percent while emerging stocks lost 2.2 percent.
U.S. crude oil fell 1.6 percent to $85.07 a barrel.
The dollar rose 0.4 percent to set a one-month high against a basket of major currencies.
The euro had fallen to a three-week low of $1.4111 before trimming losses.
As many European financial institutions are saddled with losses on bond holdings, traders are also worried that their funding could face more strains, putting pressure on the euro.
Bund futures rose 100 ticks to a record high. Italian 10-year yields rose to their highest since Aug. 9 at 5.467 percent, dragged away from the 5 percent level to which European Central Bank buying had eased them.
Besides the German court ruling, a meeting of finance ministers of Germany, the Netherlands and Finland will also be closely eyed as they discuss the nagging issue of collateral for loans to Greece.
Debate over the effectiveness of ECB bond-buying is likely intensify at the bank's monthly policy meeting on Thursday.
"We will probably get the ... assertion that 'all euro zone countries must stick to their fiscal plans as agreed with the euro zone authorities'," said Richard McGuire, rate strategist at Rabobank.
"Singling out Italy — there is a risk that that would be counterproductive because it would put Italian yields under significant pressure and therefore undo much of the work that the ECB has done."
© 2011 Thomson/Reuters. All rights reserved.
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8/30/11 Atlas Capitol Holdings (ALCL) Put In bid to buy Textraw Inc.
«
Reply #10 on:
September 06, 2011, 03:00:35 PM »
Atlas Capital Holdings, Inc. Enters LOI to Acquire Textraw
12:07 pm ET 08/30/2011- Business Wire
BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 30, 2011-- Atlas Capital Holdings Inc. (Pink Sheets: ALCL) (OTCBB:ALCL) (the "Company") entered into a letter of intent to acquire 100% of the shares of Textraw, Inc. a Florida corporation that engineers and distributes an environmentally-friendly “green” synthetic ground cover manufactured from recycled materials composited from common landfill items.
“We are very excited about this first acquisition in the area of green products and services. Pursuant to our GreenTech business strategy, our plan is to announce additional acquisitions within the next few weeks that are complementary to and synergistic with the manufacturing of alternative green products and services,” stated Peter Klaich, COO of Atlas Capital Holdings, Inc.
Textraw was idealized in 2000 as a way to recreate pine straw while making use of unrecyclable materials. After 3 years of consistent research and development, the company patented its process and began generating revenue in 2003. Textraw is a sterile, eco-friendly, and long-lasting replacement ground cover that does not fade, crumble, or attract insects. Textraw utilizes its “disruptive technology” to further shrink the pine straw market: for every one bale of Textraw used the traditional pine straw mark is curbed by 8 bales.
The purchase price for these interests is expected to be $3,000,000, and will be paid in some combination of cash and Company stock as agreed upon by the parties prior to closing. The consummation of this transaction is subject to a number of customary pre-closing conditions
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DoC's Stock Investment for 9/6/11 (Day 4)
«
Reply #11 on:
September 06, 2011, 09:26:15 PM »
DoC's Stock Market Investment To Date 9/2/11:
Symbol Quantity Price Market Value Day Change +/-
ALCL 15,000 $0.0697 $1045.50 +$460.50
HL 30 $7.96 $238.80 +$3.00
SDRC 25,000 $0.0205 $512.50 +$50.00
Totals: $1796.80 +513.50
Personal Investment: $1450.00
Cash: $28.30
Total Market Value:
$1825.10
«
Last Edit: September 06, 2011, 09:48:14 PM by Jus DoC HoLiDaY
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DoC's Stock Investments For 9/8/11 (Week Days 7) *3 Trades**Cash Injection*
«
Reply #12 on:
September 08, 2011, 02:45:38 PM »
Trades Today: 3
1St trade: Sell (Yeaaaa first sell ever!)
9:30 am EST
HL
20 @ 7.97
2Nd trade: Buy
9:35 am EST
MDFI
25000 @ 0.005
3Rd trade: Buy
12:20 am EST
SDRC
4000 @ 0.014
Cash Injection
1:30 pm EST
$450.00
Numbers below may not represent current position, will try to update during the day as each trade comes in, but will be correct shortly after 4:00 pm EST. And I only present information on days I do have trades.
DoC's Stock Market Investment To Date 9/8/11:
Symbol Quantity Price Market Value Day Change +/-
ALCL 15,000 $0.046 $690.00 -$150.00
HL 10 $7.97 $79.70 +$1.20
MDFI 25,000 $0.0035 $87.50 +$2.50
SDRC 29,000 $0.014 $406.00 -$116.00
Totals: $1263.20 +$161.75
Personal Investment: $1900.00
Cash: $452.35
Total Market Value: $1715.55
«
Last Edit: September 08, 2011, 09:12:17 PM by Jus DoC HoLiDaY
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3 Trades Today 9/9/11 (Nightmare on Wall Street..Freddie returns)
«
Reply #13 on:
September 10, 2011, 07:20:41 AM »
Trades:
1St Trade: Buy
12:30 pm EST
ALCL
3000 @ 0.04
2Nd Trade: Buy
1:35 pm EST
SDRC
11000 @ 0.013
3Rd Trade: Buy
3:46 pm EST
SDRC
12000 @ 0.013
All positions:
ALCL 18,000
HL 10
MDFI 20,000
SDRC 52,000
Accounts Summary:
Total Account Value $1575.70
Cash $6.50
Day change -$139.85
Todays Note:
Well, once again Europe is in trouble, and our market reacted with an over 300 point loss on the dow alone. Nasdac and S&P followed suit. My stocks at first looked like it would miss the whole deal..but right around noon, shit hit the fan. Stocks went south badly. So instead of using my surplus capitol to invest in new stocks, I used it to take advantage of the cheaper stock price on those I had. In doing so, I secured some pretty good deals, while improving my loss/gain picture...as New stock purchases helped improved my loss basis, meaning, cheaper stocks at prices that didnt go down from that level, helped weigh down the losses from the original lot.
I dont know if this was wise, buying stocks at a cheaper price is always a good thing, but should Monday end up like today, I wont have the extra cash to keep my numbers and pride up.
Gold went down for the first time with the markets. But the massive loss in the dow came late in the day, so my hope is, peeps hadnt had the time to invest in the safe haven, and we should see perhaps a new record for gold on Monday. With a rise in Gold, I'm hoping my mining stocks will resist a further decrease in stock prices, as well as a faster recovery, but since the whole damned thing is turning upside down on it's head, last years experience finds me just as vulunerable as if I had never investeed in Gold and Silver at all.
All I can say...it's looking like, the European Market, maybe even the European Union whole might just simply implode, and it will bring down our markets with it.
There's not going to be a safe place on Earth to escape this.
All the expert's are saying the same thing, this crash will be worse then 2008, and money printing will not help. OUR system is flush with cash, thats not the problem, it's the size of the debt that is. Money printing is no longer the golden lamb as it was last year.
However, Europe is bound to try it, and if they do...they will lower their currency, which will cause our Fed to follow suit, then the japanese yen will join the other idiots.
All these fools are doing is building a nice expensive canoe, and then running the fucker over a giant water fall.
WE ARE IN A RECESSION.
IT IS GETTING WORSE.
HYPER-INFLATION will be the end result of printing money ....and
BUY GOLD and SILVER now!
God help us all.
-DoC
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Jus DoC HoLiDaY
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DailyReckoning 9/26/11: The Biggest Threat to the Gold Mining Industry
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Reply #14 on:
September 27, 2011, 08:14:20 AM »
The Biggest Threat to the Gold Mining Industry
By Matt Badiali
09/26/11 My friend Brent Cook is buying gold right now… But not for the reasons you’d expect.
Brent is no “doom and gloom” gold bug. He doesn’t think the dollar is going to collapse any time soon.
Brent simply knows the world is running low on gold… which could drive the price of his favorite stocks much, much higher.
He has unique insight into the gold business. He’s one of the best mining geologists in the world…and he spends an extraordinary amount of time visiting mines and analyzing mining data. He shares his thoughts in his Exploration Insights newsletter.
Last week, Brent told readers about the latest on a huge story happening in the gold business: Gold companies are spending enormous amounts of money to explore for gold…with little to show for it.
According to numbers from the world’s largest gold miner, Barrick Gold, the entire industry is having more and more difficulty finding new gold deposits.
Here’s how Brent summed up the situation…
Current global mine production is in the order of 85 million ounces per annum, whereas…the last time the industry found that many ounces in a year was 1999.
This dearth of new discoveries is despite the significant increase in exploration spending since 2002. Particularly disconcerting (to the larger mining companies at least) is the decline in discoveries since 2006 notwithstanding exploration spending has more than doubled from $2.5 billion to over $5 billion.
The years from 1850 through 1900 were incredible for gold discovery. That’s when prospectors found the giant goldfields in Australia, Canada, South Africa, Colorado, and California. However, the modern era of discovery didn’t begin until the 1960s.
Geologist Forbes Wilson found the world’s largest gold mine, Grasberg, in 1960 in Papua, Indonesia. Geologists John Livermore and Alan Coope discovered the largest gold producing region in the United States, Nevada’s Carlin Trend, in 1965.
Since then, we’ve scoured the planet for the “easy gold” — the stuff that sticks up out of the ground in relatively safe, functional countries.
But now, all of the “easy gold” has been found. (It’s a lot like the situation in oil, which I’ve told you about here.) Mining and exploration companies are still finding some good deposits… They’re just generally in inhospitable, remote, or downright scary places.
For example, one “top 10 in the world” deposit that I like, Seabridge Gold’s KSM Deposit, is a monster gold deposit… The only problem is that it’s in a far-off corner of British Columbia. To mine this deposit, the company needs to build a long tunnel…just to get the construction equipment in. I still like owning the stock. But it will take billions of dollars of capital investment to develop the deposit.
Another monster gold and copper deposit, Alaska’s Pebble Deposit, is next to a pristine wildlife area. This creates just as large a hurdle as a lack of roads.
Plus… The costs of gold production (things like fuel, labor, and infrastructure) has more than doubled from 1997 to 2009. The price tag to build a new mine these days can run into billions of dollars. The mine must be able to repay that cost within a year or two and then produce a reasonable return on the investment. The huge upfront costs set the bar high in terms of the size and quality of deposits that big gold companies are willing to pursue.
This just means the highest-quality, large, undeveloped gold deposits in the world are getting increasingly valuable. As $1,500-plus gold sends a surge of profits into the coffers of big gold miners, you’ll see fat premiums paid for great projects.
Mining giant Newmont paid a big premium in 2010, when it spent $2.3 billion to acquire junior explorer Fronteer Gold. One day, Fronteer was worth about $10 per share. The next day, it was worth $14. Investors doubled their money in a few weeks on that deal.
In sum…the world is running low on gold. The “easy gold” has already been found. That’s why Brent is scouring the world looking for great gold projects…
Right now, he’s a fan of investing in deposits in Mexico… Although you hear lots of negative “gang related” headlines from mainstream media sources, Mexico is actually a great jurisdiction for miners. And he’s made good money by owning shares of Almaden Minerals, which is exploring a promising gold project called Ixtaca.
Potential deposits like that aren’t easy to find… But they’ll be worth hundreds of percent more in the coming years.
Regards,
Matt Badiali,
for The Daily Reckoning
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