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Keep up the good work all due respect we see eye to eye this will turn out to be a good investment in time!
Notice that during the bull market from 2002 -2007 the S&P never stretched extremely far above the 200 day moving average (well until the final euphoria phase in 2007). Consequently each intermediate correction halted at or slightly below the 200 day moving average.
This changed when the new cyclical bull market started in 2009. It changed because the markets were not allowed to trade naturally. They were warped by massive doses of quantitative easing. This caused markets to stretch much further above the 200 day moving average than would have occurred normally. The consequences of course were that when the corrections hit they unwound violently and moved much further below the 200 DMA than would have occurred naturally.
This bull market is much more volatile than the previous one because the market is being driven by currency debasement instead of true economic expansion.
Now we are in a situation where the stock market has been stretched ridiculously far above the mean by QE 3 & 4. Trust me; Bernanke has not abolished the forces of regression to the mean. All he has done is guarantee that the regression is going to be many multiples more violent than it should have been.
When this house of cards topples over, I think there is a pretty good chance it’s going to be even more severe than what happened in 2011.
Mean regression rule: Without fail liquidity eventually finds its way into undervalued assets. An appropriate corollary to that rule would be that liquidity will eventually find its way out of overvalued assets.
Unless Bernanke has found a way to break the natural law of regression to the mean (he hasn’t) then at some point we are going to see liquidity flee the overvalued stock market. When it does it’s going to look for undervalued assets to land on. Nothing is more undervalued in my opinion than commodities in general and precious metals in particular.
Regression to the mean doesn’t just apply to assets stretched to the upside. It also acts to levitate extremely depressed assets, and the same rules apply. The further an asset is stretched below the mean the more violently the regression usually is once the selling exhausts. Considering that gold is now stretched about as far below the 200 day moving average as it was in 2008 the rally, when it arrives, should be every bit as powerful if not more so than we saw in 2009.
SGrcf last year 86,500 ounce gold production.
142 million dollars revenue.
SGRCF has 3.5 million ounce gold resource. This is not going too stay here much longer if you watch the Canadian side level two Someone is accumulating this stock!
Let's just say when I post I try not to to be under the radar but thanks.
A lot of analysts, especially the CNBC types, claim the gold bull market is over, that we’ve entered a bear market and it’s time to get out.
I disagree with that on many levels. The narrative associated with gold and the narrative associated with the resource story hasn’t changed. How many of your readers – in fact, how many listeners to CNBC or CNN – believe that the Western world’s financial crisis is over? How many believe that any of the G20 nations can balance their budget? How many believe that central bank liquidity is a substitute for solvency, owing more than you can pay back? How many people would deny that physical gold demand has been strong?
The point is that the narrative that drove the gold market in 2006 and 2010 is very much intact. Nothing, in fact, has changed.
With regard to gold itself, I think the real catalyst will be the fact that on a global basis, people are mistaking liquidity – counterfeiting, if you will – with solvency. The truth is that the Western world has lived beyond its means for some substantial period of time, and they are attempting to engineer a default by depreciating the purchasing power of the denominator – the currency – so I think that’s the ultimate catalyst for gold.
With regard to the stocks, which are a very different set of circumstances, I would suggest that one catalyst may be an increase in the gold price, but a much more important catalyst is the fact that high-quality gold companies, in our opinion, are selling at the best price they have sold at for 20 years. They are simply too cheap. It won’t be immediate, but it will cause some of the higher-quality names to be taken over, because it’s cheaper to buy gold than it is to go find gold.
And the third thing that’s really going to surprise people in the juniors is that we are slowly coming into a discovery cycle. There is nothing that adds hope and liquidity like a discovery. People talk about what a pathetic market we had last year, but if you happened to own Reservoir Minerals before its discovery, the stock went from $0.26 to $3.50. Africa Oil went from $0.80 to $10. This is a market that will reward performance, but it’s a market that has been starved for performance, too.
Believe me you don't have to convince me in the beginning I was just little cautious and when I started looking into Sgrcf more I started to see this is definitely hidden gym ready to explode!
On the Canadian side the bid is buying up all the Week Hands over 115,000 shares sitting there Lots of 500 shares Are going off On the bed, On the ask big blocks are going off Someone is definitely accumulating this stock!
You got a point there I think you're on the money!
Well you know I did more Research I'm starting to see little different now looks like I might step in tomorrow.
Over 300 million shares outstanding stock is heading south blue has no answer why Sgrcf heading south very simple question!
What is your excuse then the stock heading south?
So poorly run. Lack of focus on making money.
They keep sending money to a director's drilling company thru exploration when they should be trying to make money. Very dilutive practices to keep the spending going. Poster child of bad management that has infected the gold mining sector.
CEDCQ, S/O: just 70 m, while the insiders/funds are holding 20 Million shares. More important, they're keeping buying huge shares at low's.
Will be running like AAMRQ, as their costs were $4.
Cedcq will be Running like AAMRQ, insiders/funds holding 20 Millions of shares as the insiders/funds had their costs at around $3. They'll push it to go dollars to get their money back.
I am with you! What are you guys think about the news today?
I wonder who bought all the shares today anyone have any idea?
Interesting article
http://dealbook.nytimes.com/2013/05/24/the-curious-case-of-the-european-vodka-seller/
The Curious Case of the European Vodka Seller
American Airlines leaves Chapter 11, as it is soon expected to do, the number of pending big cases will be … well, can you think of one?
Sure, litigation lingers from the General Motors and Lehman Brothers cases. But that’s not really surprising. The big case of the 1970s – Penn Central – had litigation that lasted into the 1990s. So that’s not really restructuring, it’s more like litigation about restructuring.
When I find myself poking into the Oreck Chapter 11 case, with its $11 million debtor-in-possession loan, we know things are slow.
Still, there are some interesting developments, perhaps none quite so fascinating as the super-speedy Central European Distribution Corporation prepackaged case.
The debtor, a vodka maker, is essentially an entirely foreign operation, save for a small office in New Jersey. All its operating companies are in Poland, Russia, Ukraine and Hungary.
So, naturally the company filed its Chapter 11 case in Delaware.
How? State of incorporation, of course. All well-advised distressed companies, wherever located around the globe, should make sure that they have a Delaware corporation somewhere in their corporate structure. Preferably as a holding company.
Now before the anti-Delaware crowd gets too hot and bothered, let’s remember that Central European Distribution was listed in the United States and had a great big bundle of bond debt issued here, too.
And like all good prepackaged bankruptcies, this case was primarily about sticking it to the investors. Trade creditors and employees went through the process unharmed.
The really interesting parts of the case – beyond the fact that it was done in just over a month – is that one of the board members who signed a declaration in support of confirmation of the plan and the overall structure of the plan.
The declaration was signed by an independent director of Central European Distribution, Joseph J. Farnan Jr.
Restructuring types will recognize the name as the former federal judge from Delaware who used to oversee the bankruptcy judges, and once withdrew the “reference” – a Federal District Court order that automatically places bankruptcy cases before the bankruptcy judges.
He joined the board in February of this year.
Now to the plan itself.
Senior bondholders got some cash and a fistful of new paper. Nothing too interesting there.
The convertible bondholders got a recovery that seems to have confused many in the financial news media. Indeed, I couldn’t make heads or tails out of it in any of the articles I have read.
To get to the bottom of this, I took a look at the memorandum submitted by Skadden, Arps, the vodka maker’s counsel, in support of confirmation of the plan.
The lawyers explain that holders of the convertible notes
who participate in the RTL Offer will receive total consideration of $55 million, comprised of $25 million in cash and $30 million in secured notes issued by Roust Trading – an estimated recovery of 35.4% – while holders who do not participate in the RTL Offer will receive their pro rata share of $16.9 million in cash.
They don’t define “RTL Offer,” but there is the orthodox footnote that capitalized terms are defined in the plan, so we go over there and find:
“RTL Offer” means the offer by RTL to exchange, subject to certain conditions, Existing 2013 Notes for Cash and securities issued by RTL on the terms described in the term sheet between RTL and certain holders of Existing 2013 Notes, dated March 14, 2013, and included with RTL’s beneficial ownership report filed with the United States Securities and Exchange Commission on Form 13D/A filed March 14, 2013.
They aren’t making this easy are they? So we head over to the Securities and Exchange Commission Web site to read the term sheet and find a document marked “privileged & confidential” yet filed with the S.E.C.
We also find out that there were about $155.3 million of the convertible bonds not owned by Roust Trading Ltd., the “RTL” of RTL Offer fame. That also tells us that RTL has been doing some shopping: they hold about $100 million of the convertible debt.
Either choice under the plan is giving the convertible noteholders the same amount of cash.
The difference is that the “RTL Offer” gives the old convertible noteholders additional RTL notes, which come complete with a PIK toggle. They are secured by 15 percent of the debtor’s new stock, which presumably won’t be worth a whole lot if the noteholders ever need to foreclose on it.
Maturity is in 2016, so basically it’s a gamble to see if you will get a bit more recovery a few years down the line.
What does RTL get out of this alternative offer? Well, convertible noteholders who take the offer are releasing any claims they might have against RTL rising out of its effective takeover of the debtor.
Stephen J. Lubben is the Harvey Washington Wiley Chair in corporate governance and business ethics at Seton Hall Law School and an expert on bankruptcy.
Stephen J. Lubben, holder of the Harvey Washington Wiley Chair in Corporate Governance & Business Ethics at Seton Hall, is an internationally recognized expert in the field of corporate finance and governance, corporate restructuring, financial distress and debt.
He is the author of a forthcoming textbook, to be published by Wolters Kluwer, on corporate finance, and a contributing author to the new Bloomberg Law on Bankruptcy treatise. He is also the In Debt columnist for the New York Times' Dealbook page.
Professor Lubben grew up in west Los Angeles and attended the University of California, Irvine, where he majored in History and minored in Political Science. Following graduation from law school, Professor Lubben clerked for Justice John T. Broderick, Jr. of the New Hampshire Supreme Court. He then practiced in the New York and Los Angeles offices of Skadden, Arps, Slate, Meagher & Flom LLP, where he represented parties in chapter 11 cases throughout the country.
Since joining Seton Hall, Professor Lubben has presented his papers at academic conferences around the world and frequently provides commentary on chapter 11 and related issues for national and international media outlets, including the Wall Street Journal, The New York Times, the Financial Times, Reuters, the Associated Press, Bloomberg, and the BBC.
He frequently advises government officials on potential legislative reforms, and has testified before Congress and the TARP Congressional Oversight Panel. He also is a regular contributor to Credit Slips, a blog started by a small group of bankruptcy experts.
Professor Lubben is a member of the New York and California bars. He is also a member of the American Finance Association, the American Law and Economics Association, the International Insolvency Institute, and the European Association of Law and Economics.
I agree this is just getting started I don't think there's enough stock out there M&Ms are playing the same game! I really had a hard time picking up couple hundred thousand shares.
if it does I'm buying 1 million shares this time.
If this is true the stock is going to explode with some positive news! Can you believe it I just got field It almost took me 5 to 7 minutes to get field And I was on the ask!
It is very hard to buy shares they are holding them very tight I never seen this before.
What's going on it start move up?
Where do you see this headed?
I see this as excellent news what's your thought on this.....A123 Systems, now known as B456 Systems (AONEQ.PK) expects its Joint Plan of Liquidation to...
Tuesday, May 28, 10:00 AM ET
A123 Systems, now known as B456 Systems (AONEQ.PK) expects its Joint Plan of Liquidation to become effective at some point after June 10 and "upon the satisfaction or waiver of certain conditions precedent." Last week, B456 won court approval for its plan to exit bankruptcy by selling off its assets. Shares +4.35% but down from earlier highs. (8-K filing)
This is next!
Institutional Ownership looks very good check it out TTNP in the box up on top where the symbol is!
http://www.mffais.com/index.pl?&page=4&period=1
I agree!
Not really you got to figure you got nonbelievers here M&Ms are taking advantage of this too will move back up!
I got a good tip jump on ZBB i will be buying today.
Planning to buy some tomorrow hopefully stays where it's at.
Very impressive numbers stock should be minimum $.50-$.75 This stock should see one dollar this year !
I'm just wondering do people want to spend 1200 bucks charge up their cell phones If I had a power outage I like to get more than the cell phone like to get some lights refrigerator you know the routine I have to do more homework on this.
Thanks for all the info I'm just wondering If they have other solar Generators that can handle little bit more than cell phones and vacuum cleaners for more voltage Appliances.
I agree! Will watch and see how this thing plays out. Have you google their address on Google maps to see if they're real deal You never know these days a lot of pump and dump stocks out there!
What do you think About the Technology looks like a real deal do you agree?
Overall Where do you see this headed .20 .30 .40 .50 Maybe $1.00
You know how long I've been trying to get this product Nugged markets Don't even carry this I have called them so many times Thinking I should wait until they bring the product So far big 0 I haven't posted here Since I bought the stock three months ago I'm just sick and tired of what is really going on here!