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EXAS $ 2.77 I'd wait for 2.86.
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IA.
ACME $ 5.73 support at $ 5.33.
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IA.
BLDP $ 6.19 support at $ 5.61.
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IA.
CORT $ 1.25 support at $ 1.13.
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IA.
GTW $ 2.12 support at $ 2.05.
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IA.
STG $ 0.31 now.
IA.
MKGP DD: updated drill results on www.pinksheets.com
To understand Maverick (MKGP) you must first understand how they are diversified and structured. The Financials and Press Releases by Maverick reveal they currently hold a 25% interest in two separate drilling programs in West Virginia, a 12.5% interest in an unidentified horizontal drilling program, and a 11.517% interest in a private Oil and Gas company called Z2, the owner of the lease referred to as the Big Foot Field. Along with the 11.517% interest in Z2, Maverick also holds an Option to increase this interest to 24.7% by July 17th, 2007 for a cost of $1,000,000. In addition to Maverick holding an interest in three separate drilling programs and one private company, what is also important to note is that Maverick is the paid Operator of the Big Foot Field.
By searching the Nevada state records, you discover Maverick itself was once a private company. Maverick was incorporated on November 15th, 2000 which was well before it conducted a reverse merger with Pinnacle Group Unlimited in March of 2006. Because Maverick operated as a private company since November 2000, it is hard to determine the source of all their revenue because all we have been made aware of are the activities and developments that have taken place since the reverse merger. What you can tell about this profitable company is that they already have very strong financials for a Junior Oil and Gas Company and that from the recent PR’s we can also see the tremendous growth they should enjoy over the coming years.
For the period ending September 30th 2006
1. Maverick saw an increase in Revenue of 25.6% from the previous Quarter.
2. Maverick saw an increase in Net Profit of 36.2% from the previous Quarter.
3. Maverick reduced Total Liabilities by 16.1% from the previous Quarter.
4. Maverick increased Stockholder Equity by 60.2% from the previous Quarter.
Financial Data from Quarter Ending September 30th 2006
Total Revenue............................$1,173,936
Net Income................................$200,752
Total Liabilities........................$1,691,760
Stockholder Equity.....................$582,192
Financial Data from Quarter Ending June 30th 2006
Total Revenue............................$934,589
Net Income................................$147,387
Total Liabilities........................$2,016,276
Stockholder Equity.....................$363,340
http://www.pinksheets.com/quote/finance.jsp?symbol=MKGP
West Virginia
Maverick owns a 25% interest in two drilling programs in West Virginia. During April 2006, Maverick released they had successfully drilled four new gas wells in West Virginia, unfortunately we don’t know how many wells may have existed before the reverse merger if any. What we do know from the 2006 PR is that Mavericks 25% interest in just these four wells together will generate $200,000 annually towards Maverick. Maverick also mentioned in the 2006 PR their intention to drill an additional 25 gas wells in which we could hear more on soon. If they were to be successful in drilling 25 more gas wells which all produced at the rate of the previous four, we could be looking at an additional $1,250,000 annual revenue from low cost gas wells. Keep in mind they hold 50 gas leases in West Virginia so there seems to be potential for even more wells to be drilled in the future.
Horizontal Drilling Program
Maverick owns a 12.5% interest in an unidentified horizontal drilling program. This 12.5% has been a mystery thus far as Maverick has released very little information on this drilling program. Below I have copied the content from a PR Released during May 2006 which gives us about the only information we know about this 12.5% interest. From the wording of this PR, I believe we can safely assume their already existed wells on this mystery property and perhaps this is one of the sources of revenue we do not know the details or potential of since the 12.5% interest in this drilling program existed before the reverse merger. Because we know so little about this drilling program and it’s potential, perhaps we may be surprised sometime during 2007 as to how much potential growth this program may offer Maverick. Their does seem to be a lot of hidden potential here as 12.5% of 100 barrels per day at the current price of $55 per barrel would generate revenue towards Maverick of $250,938 per well. The big question here is how many wells are we talking about?
”Maverick Energy is pleased to announce that a rig has been moved on to the first lease of two Horizontal Drilling sites. Maverick will be utilizing its proprietary Horizontal Drilling technology to re-enter and drill horizontally on the first of two targeted locations. Maverick has a 12.5% working interest in these wells as well as a contract to drill two producing and one disposal well on the target leases. Once production is established, Maverick will become the operator of the wells. Based upon expected production from the targeted zones, production from each well could exceed 100 barrels of oil per day.”
Z2 / The Big Foot Field
Maverick owns an 11.517% interest in privately held Z2, the owner of the Big Foot lease, with an option to increase this interest to 24.7% by July 17th. What is important to note here is that Maverick is the Operator of the Big Foot Field and gets paid for doing so.
The first thing to understand here is that Maverick holds an interest in Z2 and not in Big Foot. Well what does this mean? What this means is that Z2 pays to develop this property and not Maverick. Well what is the significance of that? The significance is that there is no risk to shareholders in the way of convertible debt and such to develop this particular field which will cost millions. The only cost to Maverick should only be what is spent to obtain additional interests in Z2.
Currently we have an 11.517% interest with an option to purchase an additional 13.184% in Z2 for $1,000,000. Because MKGP is already profitable, it is possible that Maverick may pay cash from operations to complete this option or they may elect to raise the money by the issuance of shares or even a combination of both methods. If Maverick was to do so by the issuance of shares at say the lower end of the most recent trading range or say 5 cents, the dilution for this transaction would be minimal at only 20 million shares.
A history of the Big Foot Field was described during a 2006 interview that was conducted with CEO James McCabe. Mr. McCabe stated in this interview the Oil Field was previously owned by Royal Dutch Shell. Shell shut down the field during the late 80’s during a time where oil had dropped down to a cost of $10 - $12 a barrel which made the field no longer cost effective to operate. At the time Shell shut down the field, the existing wells were producing at a combined rate of almost 1,000 barrels per day through water injection.
Maverick is aggressively developing this field as we speak. Maverick is performing both workovers of existing wells along with drilling new proven undeveloped wells. First I will discuss the workovers and then I will move onto the proven undeveloped wells.
Big Foot Workovers
Currently Maverick is performing a workover program of the existing wells with the goal to bring the existing wells back to the rate of production just before Shell had shut down the field. Maverick issued a PR on January 17th, 2007 which told us the progress of the workovers and projected that upon the completion of 22 workovers they anticipated the field to increase production by 20% or a rate of 300 barrels a day. The PR also stated there were 240 revenue producing wells in this field. If that is the case, then the existing 240 wells were previously producing approximately 250 barrels a day before any workovers had been completed. From the information that has been revealed so far, I will show below what I expect we will see if Maverick is to complete a workover on the remaining 218 wells.
250 barrels per day / 240 existing revenue producing wells = 1.042 barrels per day per well
If 22 workovers is to produce a 20% increase from 250 barrels per day to 300 barrels per day then -
50 bbl's / 22 wells equals an average increase in production from each workover well of 2.273 barrels per day
2.273 increase per well + previous 1.042 bbl's per day = 3.315 average bbl's per day per workover well.
240 workovers x 3.315 barrels per day = 796 barrels per day
796 barrels per day x $55 a barrel x 365 days in a year = $15,979,700
This rate is not quite the rate Shell was producing but there does remain the 60 wells that are not producing and perhaps a workover is all that is needed to bring those wells online? What makes these low production rate wells significant is that there is not the associated cost of drilling these wells which generally would cost in excess of one million per well. The other thing that makes them significant is that there are so many of them which together could generate a total of $15,979,700 annually.
Now the $15,979,700 does not go directly to Maverick but to Z2. The significance to Maverick is that they are being paid to conduct the workovers, there is no cost or risk to Maverick shareholders, and we receive 11.517% of Z2’s net earnings or 24.7% after completion of the option. No matter how you look at it, our interest in Z2 and as the operator of Big Foot is all profitable.
A recent report produced by MicroCap Reports had used what they stated as a conservative figure to determine how much Maverick would generate through Z2. MicroCap Reports speculated 50% of the revenue generated at Big Foot would be retained as net earnings. If that is the case then –
$15,979,700 future potential x 50% = $7,989,850 net earning for Z2 of which Mavericks portion would be at 11.517% $920,191 annually or at 24.7% $1,973,493 annually. This should be pure profit to Maverick with no costs associated.
Big Foot PUD’s
Though I have shown the value in the workovers, these existing wells were already depleted by Shell many years ago. What is of more significance and value is the 200 PUD’s (Proven Undeveloped Properties). Maverick has told us that the Big Foot lease also contains 200 PUD’s and MicroCap Reports also recently told us the company plans to drill two new wells each month.
Today on February 16th, 2007 we were informed by a PR that the first two wells together will produce a total of 47 barrels of oil per day which gives us an average of 23.5 barrels per day per well. These 200 PUD’s at an average of 2 new wells per month give Maverick tremendous upside growth value going forward. If they are to successfully drill all 200 of these wells in say over the course of the next 10 or 12 years, Z2 could be looking at a revenue stream of $94,352,500 annually only from these PUD’s based off $55 per barrel.
By using the speculative figures from MicroCaps as we did earlier on the workovers, we can speculate what this may mean to Maverick in the future and once again I will remind you that this is at no cost and no risk to shareholders and actually Maverick gets paid to drill these wells.
$94,352,500 annually x 50% = $47,176,250 net earning for Z2 of which Mavericks portion would be at 11.517% $5,433,289 annually or at 24.7% if they exercise the option $11,652,433 annually. This should be pure profit to Maverick with no costs associated. I can’t emphasize enough the significance here in the fact that this is not revenue generated minus cost associated, this would be pure net profit towards Maverick with no cost associated.
Big Foot Gas
The last thing I will mention about the Big Foot Field is the gas. On Jan 19th Maverick announced that they would be bringing online a gas gathering system. They stated that they anticipated 300MCF – 500MCF per day. What I don’t know is if the gas is coming from all the wells or just the two recent PUD’s. I suspect that Shell had already harvested all the gas from the preexisting wells so I suspect the gas is coming only from the two new wells. If that is the case then Maverick could be looking at a significant addition to the revenue it will generate through it’s ownership of Z2 as each of the 200 wells is drilled.
I hope all of this information is helpful for everyone to see the value in Maverick going forward right now. I believe Maverick has tremendous growth opportunities at a limited cost. In my opinion this is a long term investment only because it appears Maverick will continue to see extensive growth both in net profit and revenue each year which should continue to increase the value of the stock each year. Keep in mind that for the most part much of this is speculative, some of these projected figures may increase or decrease in the future as the company releases more detailed information. With the information available at this time, I have done the best I can to help us all get a glimpse of where this company may be heading.
possible r/m with someone who Goldman Sachs knows they trying ton gain 51% control.
MGLG for tommorrow with TNRI around the corner...remember GLXI :)
It is estimated that a week’s worth of New York Times contains more information than a person was likely to come across in a lifetime in the 18th century. From Casey Research.
IA.
Izy, great chart skills there, good for you. I'll take a look at CBS.V and GU.V too. I really appreciate you sharing your DD and your skills on here.
IA.
Fill me in whats the rumor here?
US Recession in 2007 - Third Leg of the Bear Market Likely
(extensive read when time provides but this article gives a very good over-view for the case of the possibility of a bear market. nlightn)
http://www.marketoracle.co.uk/Article307.html
CEDA PLRO MDVX ORXT - in consolidation awaiting b/o
MACD is looking great on ORXT and MDVX in particular.
Also NMKT looks like a great value (imho). I expect this to make an upturn in the next week or two.
And one other stock is GU.V (i owned 17500)wich i sold today with a 10% profit,but i think i might got out to early as the interest in that stock could become larger while the week goes on.
Keep a track on that one IA,have in on your stock to watch list.
IzY
hehe IA i´ll tell u next time but read this.
I have real time and order depth thru stockwatch,i use their trading station(downloaded)and features on it.
The thing i always does is following the alarms when a stock is HALTED i interped every news and often i get in at the bids before the stock resumes.
I did the same thing with QST.V but with less shares,this has created a one day profits of several of thousands of $ and the profit i make in these companys is left in the stock as along term investment.
Do try this strategi but do DD on the news potential as it comes out before reading it.
Regarding CBS.V i will try to trade it like hell tomorrow 4 sure.
IzY
Well this stock is surtainly a potential long term hold and a good trading oppertunity.
Bard drills 102.3 m of 0.081% MoS2 at Lone Pine
I picked up 53,000 after the stock resumed and another 30,000 shares,the news will sertainly create some interest of large proportions as the company is going to present further news regarding second hole next week.
IzY
I see that's the way it's gonna be, you buy and then you tell us about it, come on man, tell us when you're buying.
I'm just joking with ya Izy, I'd like to see the chart.
IA.
You were both good thanks,i am bringing up a realy good chart in a few minutes.
I bought it today right after it resumed..
IzY
NL, thanks, I didn't see your post, you sure did a better job at explaining to Izy than I did. I appreciate that.
IA.
Izy, type [ b ] before the start of a sentence and then [ /b ] after you finish to make it bold.
to do charts, you need to right click on the charts, and go to properties, then copy after // all the way to the end of the properties, then type [ chart ] followed by the paste and then finish with [ /chart ]. Of course, leave out spaces after and before [ ].
Let me know if that works, there's a board for this too, go here http://www.investorshub.com/boards/faqh2post.asp try that.
IA.
NL, great stuff, I really appreciate you posting this.
IA.
IzY,...to post charts follow this format,...
this is the original link from StockCharts for BNC.TO.
the link will post ( as you see) but the charts does not.
http://stockcharts.com/c-sc/sc?s=BNC.TO&p=D&yr=0&mn=6&dy=0&i=p50584849528&r=....
so,...what you do to post a chart is,...
take off the http:// and replace it with [ chart ]
then go to the end of the link and place in [ /chart ]
(which is what i did you you won't see the [ chart ] or [ /chart ] because the chart now shows.
hope this assists,...if not feel free to inquire regarding any problems posting a chart.
Explain to me how i post with fat letters and include a chart :)
IzY
Actually its thinking that usually gets me into trouble.LOL
LEAVITT BROTHERS - Current Triggered Set Ups
http://www.leavittbrothers.com/chartspeak/ChartSpeak_021907.pdf
“Reading furnishes the mind only with materials of knowledge; it is thinking that makes what we read ours.”
– John Locke, philosopher.
IA.
Izy, I've been watching BNC.TO as well and I still would not get in, my notion to wait was only confirmed further yesterday after I saw it hit $ 1.50 and then fall back.
I would consider buying it only if it broke out through $ 1.61.
QQ.V I wouldn't even think about entry yet on that one. Maybe look at it closer to $ 1.70.
Thanks.
IA.
BNC.TO+QQ.V i am back from worldcup ski here in swe.
IA+nlightn can you find a bottom in those two?
Did you take a position in BNC.to ?
The stock could not break 1,50 level todY there was only one attempt,and right after it it went down and ended at 1,35 i think.
For QQ.V i dont own any of it since last week,i dropped everything thru 2,80-2,90 and still waiting for a bottom.
I belive from the trading today that we could even see a test down at 2,00$ if the retail investors forgot to take profits.
There was a bid put up by Union at 2,46 for 20,000 shares,in the afternoon it was all wiped out with alof of help from anonymous and i dont hink they ar finished selling.
Any thoughts appreciated,i am going back in before second week in march.
On the BNC subject i am waiting for any confirmation on wha price their PP will end at.
IzY
TRBY, great find NL, thanks.
IA.
TRBY,...technically this one is ready to rock,...
no company events or news as of late,...so don't know what is creating this TA set up,...
definitely one to keep on the radar screens, especially if volume increases and price follows.
CMF 5,20,50
Accum/Dist 10,20,50
Multiple Indicator
BNC.TO,...looks like its ready to move,...
chart has a lot of positive strength and momentum with numerous Technical Indicators,...
CMF 5,20,50
Accum/Dist 10,20,50
Mutiple Indicator
take a look at the chart on the DMTN board-looks like it is going to move.
"Be like water making its way through cracks. Do not be assertive, but adjust to the object, and you shall find a way round or through it. If nothing within you stays rigid, outward things will disclose themselves.
Empty your mind, be formless. Shapeless, like water. If you put water into a cup, it becomes the cup. You put water into a bottle and it becomes the bottle. You put it in a teapot it becomes the teapot. Now, water can flow or it can crash. Be water my friend."
-Bruce Lee
Set your radar to TNRI possibly next week.
Kaaaboooooom!
Nice find.
Million, of course, congratulations on it's run.
IA.
Remember GLXI? :)
GLXI nice chart, million.
GLXI .08 x .085 up 14%.
NVMG moving here, not sure how high, MGLG kicking at the 4's today.
CHAPMAN: Gold, Silver, Economy & More
by Bob Chapman
Wednesday, 14 February 2007
US MARKETS
Our first warning on exotic mortgages came in 2002 as Adjustable Rate Mortgages became very popular. We had seen them used in California in the mid-1970s, but they were an oddity and probably made up less than 2% of mortgage loans.
Only the year before in 2001, the stock market had a serious correction and the Fed had to find a way along with government to get the economy moving again. The real estate market was chosen to fulfill that mission. That is when the subprime mortgage came into popularity in order to get the market going from the bottom up. This began a massive injection of liquidity into the worst possible financial risks - the beginning of rampant speculation, and fraud. As this got underway the mortgage lenders, bankers, the Fed, Fannie Mae and Freddie Mac and our government either got in on the party or looked the other way. No one cared about the consequences. The result is subprime lenders are going bankrupt or being absorbed by other stronger financial institutions, we are sure with the help of the Fed.
We have now entered the bubble blow off phase. Almost $3 trillion in these weak mortgages have to have new mortgages over the next 2-1/2 years as house prices decline. The lenders who made the loans have long ago sold them for securitization to satisfy the insatiable demand for higher-yielding structural products. This bubble, this monster created by our bankers, fed liquidity into Wall Street and into world markets. They were also aided by the carry trade, which was encouraged by the Bank of Japan at the instigation of our Fed. This massive sea of liquidity in part flowed into Treasury and Agency debt, which keep our financial system from collapsing, at least up until now. This essentially free money distorted not only the real estate market, but also the securities markets as well creating speculation worldwide. The mistakes of 2006, after four years of massive excesses, were the worst yet. Refinancing of ARMs began and foreclosures and defaults spun out of control. Never have borrowers, who should have never had loans in the first place, been treated so generously. They were invited to refinance and take a second, doubling or tripling their house payments. When they couldn’t pay many had their payments tacked on to the back of their loans so they wouldn’t be in default. Those whose new mortgages were reset were gobbled up by players looking for higher yields and within months many of these loans were delinquent.
2006 was the apex of unlimited finance – the year that finally began an end to the madness. Speculators generally headed for the hills, although there are still many trapped who will absorb stiff losses. As speculation eased, interest rates rose, and the lenders cut back as sales fell some 50%. All these fools believed the Fed would loosen again. Last June, 85% thought interest rates would have to go lower. As we wrote they couldn’t go lower. If they did the dollar would collapse. Here we are nine months later and interest rates are unchanged and the earliest rates could expect to be changed would be in June and now Fed members are talking about higher rates as we predicted last June because Europe is not on the same page we are. They do not target interest rates. They properly target money and credit, and in order to head off further inflation they are raising rates. To stay competitive, we have to raise rates as well.
Unlimited finance, at least for the real estate industry, is coming to an end. The failure and massive losses by lenders has begun the tightening of credit requirements and that means some borrowers won’t be able to re-qualify for new loans. There is going to be a subprime purge that will envelop the real estate market. The best the market can hope for is a 20% correction over the next two years. The subprime crisis will escalate. The small lenders are already in trouble as 22 have folded in just December and January. The message is finally being picked up by Wall Street, which should send housing stocks down to test their lows in the near future. There will be heightened concern for the financial ramifications of imploding subprime lenders, which will generate more pressure on lenders and more pressure on house prices. The psychology will degenerate further. The next phase will be a subprime liquidity squeeze accompanied by higher mortgage rates that will certainly exacerbate the problem. This will happen in the absence of any negative credit or liquidity event. Contagion could though become a big problem. One or two failures in the derivatives market could cripple the ABS and credit derivatives market. Any general tightening in the CDO market would likely cause liquidity problems, especially among the highly leveraged. Already markets face heightened uncertainly, although you wouldn’t know it by Wall Street’s outward attitude, one of arrogant, criminal, indifference.
Wall Street and banking are hoping the Fed, due to credit conditions, will ease. We do not think that will happen unless the Fed wants to allow the dollar to collapse. The Fed is well aware they cannot lower rates, nor can they stop the massive increase in money and credit. The two ifs in that domain are will there be an event that will shatter the calm complacence, or will the speculators withdraw from the field leaving all that liquidity to sit and waste? Will bondholders walk away and buy gold because the net real return isn’t worthwhile? The subprime BBB- rated bonds are already under serious pressure as quality deteriorates.
Major mortgage fraud is showing up all over the country. Massachusetts is implementing new laws and harsher penalties.
In Phoenix, state legislation is pending on mortgage fraud defining it as a crime punishable by up to ten years in prison. The new mortgage fraud taskforce has been deluged with calls from people reporting cash-back deals and other frauds such as inflated appraisals. Real estate agents and mortgage brokers are withholding the cash-back agreements from the contract. Un-saleable homes become saleable at prices higher than the previous prices. That is a danger signal. Lenders are funding loans for more than they are worth so the buyer gets paid to buy, the lender gets the business and house prices are artificially inflated. Thus, these sub-rose deals mean all buyers in the area pay too much based on the comparative sale.
Quoting DR Horton CEO Don Tomnitz, “We’re in the early stages of the current housing slowdown. Most of these downturns are longer and deeper, and right now we do not see anything on the horizon that would change that opinion. We continue to see a very challenging industry environment for fiscal 2007.” He said their lot position is down 25% and construction is down 35% from the high in June 2006. Orders are down about 25% and the value of homes on order declined 28%, as the company used incentives to lure buyers.
The slowdown is spreading to suppliers. Stock Building Supply, one of the nation’s largest building material suppliers, is cutting 1,500 jobs of 2,000 eventual cuts. Twenty-two branches are being closed cutting another 500. The small suppliers have been laying off for six months or more. That is why many illegals are going back to their home countries. No more work available in construction-related industries. The cost of higher house payments and a return to $65 oil prices, and little refinancing of homes will really cut into consumption and we will see a slower economy.
In Bonita Springs luxury builder WCI fourth quarter orders were for 621 homes; 434 actually closed at $760,000, while recording 187 defaults. All of southern Florida is massively overpriced.
Bank United FSB saw non-performing assets more than double to $45.1 million in December, quadrupled yoy. Their option-ARM loans amounted to 59% of its total portfolio, up from 51% yoy.
In Bradenton, Florida Coast Bank officials are investigating 482 homes in jeopardy because the builder cannot finish construction. That could be a $50 million loss.
In Charlotte County, Florida liens are being hung everywhere.
These stories abound all over the country. In this research report we have another 23 pages of the same thing, that is serious real estate problems. Do not believe the media, problems in real estate will prevail for 2-1/2 more years.
The stock market is preparing to decline. Over a span of 135 years when the S&P 500 traded above 18 times on record earnings and considering there has not been a low in a year or more, the result will be all those gains will be erased. That to us means 7,268 on the Dow. Interest rates, wages and unit labor costs are rising faster than inflation and profits will ease this year. At current levels there is no investment merit to the stock market at these valuations, thus, it is time to exit.
GOLD, SILVER, PLATINUM, PALADIUM AND DIAMONDS
Shorts in the gold market are facing losses, particularly the Comex commercials. Their recent shorts increase has prompted the commercials to attack again attempting to force gold prices below support levels. Last week they added again by 11,053 or 8% from 135,611 to 146,664. Commercial shorts were the largest since 5/23/06, when they were 149,0003 when gold was $671.20 having over the two prior weeks fallen from $730. The commercials are making their big play and attempting a replay of last May. The momentum created by the physical buyers has been predominant. We think they can continue to control the game, we’ll see. Over the past month commercial short positions are up a huge 79.6% as gold has risen $40.33 or 6.6%. That is 202 tons of gold added to the market by the shorts, or a commitment of $4.2 billion by the shorts. We believe a major attack will come on Monday and Tuesday in an attempt to break support. If they are unsuccessful $730 will be tested. If the commercials are successful $650-$652 will be tested. We see no major correction this time around.
GLD net holdings rose 2.95 to 461.58 tons in the past week. It was up 8.3 tons the prior week. That is a total or positive addition of 11.28 tons.
SLV jumped 168.94 tons from 3,719.16 to 3,888.9 tons or 125,030,899 ounces worth $1.73 billion. Silver on the cash market gained $0.45 on the week. Over two weeks 277.39 tons were added or $123.6 million worth.
Both gold and silver are attempting breakaways to the upside and by the time you get this issue on Wednesday you will know who prevailed in this short-term conflict.
It doesn’t matter who wins this squirmish. We are in a secular gold and silver perfect storm and nothing – not even the powers behind government – can stop the rampage into precious metals. The pros and some countries are dumping dollars and some of the proceeds are going into gold and silver. It doesn’t take much buying to start a conflagration. We have a long way to go and you cannot win unless you are in the game.
Note that short-term lease rates for silver have been rock bottom for a long time and are at the same level the one-year gold lease rates were prior to a major gold manipulation. The one-month is at .02% (pretty close to zero), and the two month is only .07%. If you look at the silver lease rates chart, the shorter term rates have been dragging along the bottom of the chart since the July, 2006 rally, and have not gone up since. This could explain some of the volatility in the silver market and some of the modus operandi for silver manipulations.
Monday trading in gold three hours before the opening saw it off $3.20, silver off $0.08 and copper down $0.01. Two hours into the Comex session gold was off $3.90, silver $0.18 and copper was off $0.09. Oil had fallen $1.18 and the gold and silver producer stocks were all trading higher. Four hours into the trading day gold was off $4.90, silver $0.25 and copper $0.03.
As we suspected gold ended off $4.50 on the day at $662.20 and silver fell $0.19 to $13.64. The April gold contract fell $5.00 to $667.30, silver was off $0.20 to $13.71 and copper fell $0.04 to $2.48. On Friday, gold open interest increased 9,927 contracts to 380,394 passing the former high of 373,000 set in 2006. Monday was a major market manipulation day. Oil got blasted for $2.08 closing at $57.81, gas off $0.06 at $1.55, natural gas off $0.60 at $7.23, the euro off .0041 at $1.2960, the pound off an astounding .00353 to $1.9471 and the Canadian dollar off .29 to 85.06. Yields rose as bonds fell; the 2’s were 4.93% and the 10’s were 4.80%. As you saw elsewhere in this column silver lease rates fell to .02% and silver was hammered. Silver open interest rose 872 contracts to 120,803, which is 22,000 less than last year’s high. The cabal held up the market again as the Dow fell 28 to 12,553, S&P fell 43 Dow points and Nasdaq fell 60 Dow points. The elitists have everything so wired they manipulate the markets with abandon. Their corruption is exposed and there are never criminal charges. A fine is paid and they go right back to their criminality. They own the SEC so all they do is cooperate and pay up. The SEC only preys upon the small brokers and brokerage houses and newsletter writers – all of whom do not have the finances to fight the elitists. There are now so many insider conspiracies, cases of corporate fraud and manipulation that the public is desensitized. No one questions the evil and our travesty of justice. We wonder what a public in a depression will do to these criminals? A perfect example is Bank of America, which entered a leniency agreement with the Department of Justice related to an investigation into the municipal derivatives industry. The Bank coped a plea agreement so the Department of Justice didn’t bring any criminal antitrust prosecutions against the company in the matter in return for its cooperation. Thus, no one goes to jail and the shareholders get to pay for the criminal activity of management. So what if they are cooperating. They broke the law and will never see one day in jail. This is how our government, Wall Street and corporate America has operated for years. It has only been in the last six years that these sweetheart deals have been exposed and that is because of the Internet and radio talk shows.
Lies are legion, no one tells the truth. At the recent G-7 meeting we were told that financial techniques, including credit derivatives and hedge funds have contributed significantly to the efficiency of the financial system. These people must think we are totally dumb. Derivatives and hedge funds are all highly leveraged and act like gambling casinos. Sooner or later they will bring down the financial system and you can take that to the bank.
On Monday, the XAU lost 1.59 to 139.18 and the HUI sank 3.17 to 336.89.
Again South African gold output fell 12.4% in volume terms while overall mineral production increased 10.5% in December yoy.
Oppenheimer’s gold fund has just released an amended prospectus stating they have entered an agreement with JP Morgan Chase to make “loans of portfolio securities” of up to 25% of the funds assets. This is so Morgan can better manipulate gold markets by shorting shares. Sell all Oppenheimer funds.
There are lots of reasons to buy gold. Several new ETF’s will soon be launched in India. The Euro Next trading platform is opening futures and commodity trading in several sectors, including precious metals. Several central banks are accumulating gold and more will continue to do so. StreetTracks, GLD, is approaching $10 billion and the SLV is roaring as well. Technically gold is very strong irrespective of the latest gold suppression cartel’s onslaught. $1,000 here we come. You have to own it to profit by it.
http://news.goldseek.com/InternationalForecaster/1171469040.php
"In theory, there is no difference between theory and practice.
But, in practice, there is"
Jan L. A. van de Snepscheut
IzY :)
WMTG $ 0.23 volume very sketchy on this. Support at $ 0.19.
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IA.
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