full-time investing; total portfolio up over 130% in 2009; but 2010 sucks!
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GORO: Details on PP
July 1, 2009 Press Release
GOLD RESOURCE CORPORATION CLOSES $20 MILLION PRIVATE PLACEMENT WITH HOCHSCHILD MINING STRENGTHENING STRATEGIC ALLIANCE
UPDATES SHAREHOLDERS ON PROJECT CONSTRUCTION
DENVER – July, 1 2009 – Gold Resource Corporation (GRC) (OTCBB: GORO, FRANKFURT: GIH) is pleased to announce Hochschild Mining plc (Hochschild) is purchasing in a $20 million private placement 5 million restricted shares of GRC’s common stock at $4.00 per share with no warrants. The funding will be completed in two tranches: a $5 million tranche closed July 30, 2009 and the second tranche of $15 million which will close by July 20, 2009. Funding will primarily be used at GRC’s Aguila Project in the state of Oaxaca, Mexico. Hochschild is a leading mid-tier precious metals producer, based in Lima, Peru and listed on the London Stock Exchange (LSE: HOC), with mining projects in five countries in the Americas including Mexico. This placement will increase Hochschild’s total holdings in GRC to approximately 24%.
Click on the link below to view entire Private Placement release:
http://www.goldresourcecorp.com./releases/GRC-2009-07-01-1.pdf
July 1, 2009 Press Release
GOLD RESOURCE CORPORATION CONFERENCE CALL;
El AGUILA PROJECT UPDATE
DENVER – July 1, 2009 – Gold Resource Corporation (GRC) (OTCBB: GORO, FRANKFURT: GIH) will host a conference call with CEO William W. Reid, Thursday, July 2th at 11:00 A.M. EST. Discussions will include final permit timing, Aguila Project construction progress of the Aguila mill, tailings and open pit and the recent private placement which strengthens the strategic investment by Hochschild Mining Plc. Gold Resource Corporation aims to emerge in the elite class of low cost gold producers on the earliest possible date in 2009. The Aguila Project is targeting production upon completing construction of the mill and upon receiving its final permit to mine from its high-grade open pit deposit.
Click on the link below to view entire Conference Call release:
http://www.goldresourcecorp.com./releases/GRC-2009-07-01-2.pdf
08:18 FRPT comments on results of M-ATV competition
Co commented on the outcome of the M-ATV competition. As announced on June 30, 2009, U.S. Army Tank-Automotive and Armaments Command did not select the Cheetah Mk. II vehicle submitted by Force Dynamics, the co's joint venture with General Dynamics Land Systems. "We are grateful for the consideration given to our M-ATV submission by the customer, though of course we are disappointed to have not been selected. Even so, our business planning and ability to continue to generate growth and value for our shareholders was not dependent upon winning the M-ATV program. We remain very optimistic about the near and longer-term opportunities to grow our business and to serve our customers with a diverse array of urgently needed survivability solutions and total life cycle support for our deployed fleet of vehicles. We are well positioned to capture a variety of opportunities for service, support, spares, and training that exist with regard to our fleet of deployed vehicles. We will continue to produce our Buffalo and Cougar-based family of vehicles for US and foreign customers and to build our global reach and capabilities, including developing an international customer base for the Cheetah Mk. II vehicle. We have begun maintenance and operator training at our Roxboro facility, opened our Kuwait-based logistics and service depot, and believe that our improved capabilities and competitive position will enable us to capture what we believe are significant business opportunities"... The Company anticipates a relatively soft level of operating profit in its second quarter due to the timing of vehicle and other product shipments and costs related to the M-ATV competition. However, it expects a stronger second half and full year performance, due to expected life cycle support business combined with planned shipments of the Buffalo and the Wolfhound Tactical Support Vehicle
PRIMW (Oct2010 warrant to purchase PRIM at $5) still trading below fair value. PRIM is $7.52-7.59, while PRIMW is $2.10-2.21.
Gentle Sarcasm: With no ethanol exposure, this appears to be a better value than ... say ... AGM. ;>)
What's up with that?
'peeker
10:21 Gold drops to fresh lows at $924.80 on dollar's strength; now off $14.70 to $926.00
OUCH ... sold my CS.to today to lighten gold exposure.
10:24 Consumer confidence down
The Consumer Confidence report for June from the Conference Board checked in at 49.3% versus 54.8% in the prior month and the consensus estimate of 55.3%. The disappointing read was driven by a drop in both the Present Situation Index (to 24.8% from 29.7%) and the Expectations Index (to 65.5% from 71.5%). The determination by the Conference Board is that the decline in the Present Situation Index continues to imply that economic conditions are still weak, though not as week as earlier this year.
GORO wants to start in the 4.20s today. Nuts!!! It's about time for a permit and a little PR pizzazz. It's also about time for the CEO to come out with an estimated start date for the mill.
BTO.to/BGLPF.pk: B2Gold to raise C$25 mln in bought deal
Mon Jun 29, 2009 9:26am EDT
* B2Gold to sell 33.3 mln shares at C$0.75/shr
* Proceeds to fund project developments, capex
June 29 (Reuters) - B2Gold Corp (BTO.TO) said it will raise about C$25 million ($21.7 million) in a bought-deal financing to fund development of its Nicaraguan assets and continued exploration expenses in Colombia and Russia.
The gold miner said it agreed to sell 33.3 million common shares at 75 Canadian cents apiece, which represents a discount of 6 percent to the company's Friday close of 80 Canadian cents.
The underwriters, led by Genuity Capital Markets and Macquarie Capital Markets Canada Ltd, have an over-allotment option to purchase up to an additional 5 million shares at the same price.
Should the over-allotment option be exercised in full, the total gross proceeds from the offering would be C$28.8 million, the company said. ($1=1.155 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore; Editing by Himani Sarkar)
13:18 FEED: AgFeed Industries files for $75 mln mixed securities offering (5.86 +0.13)
OK, I sold mine due to another case of too much die-lution. Like the company, but bet I can buy back closer to $5 easily. We'll see.
'peeker
AGT financing must be for any future contingencies/hiccups in operations so they don't have to pay an arm and a leg again to the banks/sheisters that have provided financing in the past.
Maybe it's to allow contracting for the additional Gray Fox drilling program so it's not held back while waiting for cashflow from Black Fox.
'peeker
PS> AGT mgt is not the cream of the crop IMHO, based on the financing terms they have signed up to in the past.
08:30 (Marketwatch) China doesn't like $US as much as we do.
China repeats call for 'super-sovereign' currency
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By William L. Watts, MarketWatch
LONDON (MarketWatch) -- A U.S.-China détente over the role of the dollar in international monetary system was called into question Friday as China's central bank repeated its assertion that a new global reserve currency is needed.
"To prevent the deficiencies in the main reserve currency, there's a need to create a new currency that's de-linked from the economies of the issuers," the People's Bank of China said in its annual financial stability review, according to a report by Bloomberg News.
In an apparent reference to the dollar, the review said the domination of the international monetary system by one currency was a serious defect, according to Reuters.
The report reiterated an essay written in March by People's Bank governor Zhou Xiaochuan urging the creation of a "super-sovereign" currency that would presumably take the dollar's place as the primary reserve currency. Zhou had called for an expanded role for the International Monetary Fund's special drawing rights.
The central bank's comments come after Chinese officials had previously appeared to de-emphasize concerns about the dollar's reserve role following a visit to China by Treasury Secretary Timothy Geithner earlier this month, observers said.
The dollar extended losses versus major rivals following the reports. See full story.
China's softer tone in the wake of Geithner's visit had appeared to recognize that a weaker dollar would damage the value of China's massive dollar-denominated holdings.
But that doesn't mean the Chinese central bank's long-term concerns have disappeared, said Stephen Gallo, head of market analysis at Schneider Foreign Exchange.
"There may be signs here of tensions mounting between the PBOC's economic concerns over China's holdings of dollars and the Chinese government's diplomatic reasons" for toning down its criticism, Gallo said, in e-mailed comments.
The central bank is "still clearly worried about the longer-term opportunity cost of holding dollars -- in as much as it can cite the dollar's role in the global economy as one of the main reasons for the financial crisis -- while the Chinese government is still more happy to play to the tune of the Bernanke-Geithner camp which sees leaning against the wind in order to protect the U.S. dollar as a necessary evil," Gallo said.
But Simon Derrick, chief currency strategist at Bank of New York Mellon, said remarks by Chinese officials have never been particularly clear on the subject.
Because dollar weakness is self-defeating for China, officials appear to have decided not to try to directly talk the dollar down, Derrick said.
At the same time, they recognize they must "push harder" if they want to see a more diversified reserve system, he said.
China is likely to emphasize that it wants to see changes take place over the long run in an effort to shield the dollar in the short term, he said.
But the push is nonetheless likely to weigh on the greenback and could have a significant impact on currency markets as traders attempt to gauge the potential reduction of the dollar's role and what currencies will take its place, analysts said.
"Mind you, China is our single largest holder of foreign debt at $765 billion and so their desire to not only shift their own reserves away from the dollar but pressure others to do the same is absolutely a concern," said Dan Greenhaus, a strategist at Miller Tabak & Co. in New York, in a research note.
William L. Watts is a reporter for MarketWatch in London.
CSGH: Started a position today at .655/sh
AGT: Sold 10% at .43/sh to buy CSGH
Time will tell whether this diversification works out, but I'm happy to own a piece of CSGH (at least for today).
'peeker
09:28 CBEH: China Bio Energy initiated with a Buy at Roth Capital; tgt $9 (4.35)
Roth Capital initiates CBEH with a Buy and price target of $9 saying shares currently trading at 4.8x their 2009 EPS and 4.5x their 2010 EPS estimates, they view CBEH's valuation as compelling. CBEH has a strong balance sheet with $35.4 million in cash and no debt, which provides adequate capital and funds for the company's expansion over the next two years. Additionally, they believe Nasdaq listing is imminent, which they believe will improve trading volume and drive multiple expansion. The firm believes CBEH's growth will be driven primarily by increasing biodiesel output as the company ramps up its current manufacturing capacity. Additional planned increases in biodiesel capacity present potential upside to their estimates.
09:28 CBEH: China Bio Energy initiated with a Buy at Roth Capital; tgt $9 (4.35)
Roth Capital initiates CBEH with a Buy and price target of $9 saying shares currently trading at 4.8x their 2009 EPS and 4.5x their 2010 EPS estimates, they view CBEH's valuation as compelling. CBEH has a strong balance sheet with $35.4 million in cash and no debt, which provides adequate capital and funds for the company's expansion over the next two years. Additionally, they believe Nasdaq listing is imminent, which they believe will improve trading volume and drive multiple expansion. The firm believes CBEH's growth will be driven primarily by increasing biodiesel output as the company ramps up its current manufacturing capacity. Additional planned increases in biodiesel capacity present potential upside to their estimates.
Jim Rogers still recommends commodities:
09:13 Globe and Mail reports investor Jim Rogers said that he sees prolonged economic problems and while he did not see much worth buying, he is not shorting any assets either. He repeated a previous comment that he is selling his U.S. dollars and that commodities were the best investment bet. "I have no shorts for one of the first times in my life," Rogers, a co-founder with George Soros of the Quantum Fund, told Reuters TV. "On the other hand I don't see much to buy." He said huge borrowing by governments, particularly in the United States and Britain, would hurt their currencies and lead to future problems, though he picked the Canadian dollar as one of the "soundest" currencies. "I've got out of my pounds. I will be getting out of my (U.S.) dollars soon," he said, repeating his view that commodities were the best place to be, with metals having gained more than stocks this year and long-term potential for soft commodities. "I'd rather be a farmer than a stockbroker for the next couple of years," he said. "No-one you went to school with became a farmer... so we have a shortage of farmers."
Don Coxe sees KCL as potential takeover target by BHP Billiton.
Canadian potash juniors: Prime BHP takeover targets
DonCoxe, one of North America's best regarded mining gurus, reckons that a trio of Canadian junior potash explorers will be key takeover targets for BHP Billiton.
Author: Marc Davis
Posted:Wednesday,24 Jun 2009
Vancouver, BC (BNW News Wire) -
Canada's trio of small but well-financed potash exploration juniors - WesternPotash (TSX.V: WPX), Potash One (TSX: KCL) and Athabasca Potash (TSX:API) - are obvious takeover targets for potash-hungry BHP Billiton, the world's largest mining company. So says Don Coxe, one of the investmentindustry's leading experts on commodities.
Chicago-based Coxe is the chief strategist for Canada's CoxeCommodity Strategy Fund (TSX: COX.UN), which was named after him by theBMO Financial Group, the big-league investment banking firm that runs the fund.
BHP Billiton has already stated that it wants to be a "major" player in the potash industry within the next decade. And it is already hard at work developing the world's largest potash mine ever. Located 150 kilometres east of Saskatoon near the town of Jansen, it will eventually produce eight million tonnes per year mine and is scheduled for commissioning in early 2015. The mine will cost upwards of Cdn.$2.5 billion to build.
Yet, the diversified Australia-based mining company is a newcomer to the potash business and its grand aspirations cannot be realized with the commercialization of just one potash mine - no matter how big it is. Hence, Coxe believes that BHP Billiton may become an aggregator by buying out other valuable potash resources, such as potash deposits that are already in-development elsewhere in Saskatchewan.
And the most obvious candidates would be Saskatchewan's trio of publicly-traded potash explorers - Western Potash, Potash One, and Athabasca Potash - all of which are making good headway with their respective flagship projects.
"If you're a small potash exploration company operating in Saskatchewan, BHP Billiton might be interested in you," Coxe hinted during an exclusive interview with BNW Business News Wire. "Their cashflows are enormous and they want to be known as the leading resource company in the world."
This astute insight is shared by Jacob Bout, a fertilizers analyst for the Toronto-based investment banking heavyweight CIBC World Markets.
"Companies involved solely in exploration of potash are likely take-out candidates, either by diversified mining companies seeking away into the potash industry or by countries looking to lock-in supply," he stated a few months ago in a comprehensive research report entitled ‘Global Potash Supply - A Focus on Saskatchewan Exploration.'
In the same report, Bout pointed out that BHP Billiton is "lookingto get involved in potash mining." It is worth noting that globalmining giant Vale has recently taken over all of Rio Tinto's globalpotash assets, making Vale another potential suitor for potash juniorsin Saskatchewan.
A BHP Billiton spokesperson, Ruban Yogarajah, declined to discuss any future takeover plans that BHP Billiton might have to significantly build up its potash assets in the region in order to become a "major" producer.
Among the three remaining publicly-traded mining juniors that are still in the race to develop Saskatchewan's first new potash mine in nearly 40 years is Potash One. It announced the completion of a multi-million dollar pre-feasibility study (a preliminary blueprint for a mine) in late June. The assessment suggests that Potash One's solution-extraction amenable (low-cost and scalable) Legacy Deposit has a net present value of US $4.47 billion.
The company recently received another major boost with the arrivalof its new chairman, Robert Friedland, in May. The mining magnate is best-known as the man behind the epic Voisey's Bay nickel discovery in the remote Labrador region of eastern Canada. His company later sold the deposit to the mining multinational Inco Ltd. (now Vale Inco) for the princely sum of Cdn. $4.3 billion.
Coxe says he greatly admires Robert Friedland's "visionary" business acumen and believes that the famous financier has made a shrewd move by becoming the new driving force behind Potash One.
Friedland's efforts to develop huge mining projects in Mongolia and the Democratic Republic of Congo have lately been thwarted by "Third World politics," Coxe laments. By comparison, Friedland's commitment to developing a new potash mine in Saskatchewan represents a "pretty attractive" opportunity, he adds.
Meanwhile, BHP Billiton's drive to break into Canada's lucrative potash mining business may prove to be yet another master stroke, experts agree. In recent years, BHP Billiton helped break up De Beers' seemingly omnipotent diamond cartel with the commercialization of Canada's first ever diamond mine in 1998 - the rich Ekati Mine in the Northwest Territories.
Such takeover talk is music to the ears of Western Potash's president, Patricio Varas. "At WPX, we are exploring and developing a world-class resource. But lots of work is still ahead of us to prove and show companies like BHP that we have a worthwhile asset. On ourside, we have the funds and the technical ability to explore and discover that one special asset that attracts mine builders like BHP," he told BNW News Wire.
Rumours are even circulating that BHP Billiton could take a run at Potash Corp. of Saskatchewan - which boasts the world's largest potash reserves. Fai Lee, a mining analyst for another major Canadian investment bank, RBC Capital Markets, thinks that the merger would make strategic sense.
"We view Potash Corp.'s potash assets as long-life, low-cost assets that can be expanded and are largely export-oriented. As such, we believe Potash Corp.'s potash business would represent a good fit with BHP Billiton's stated business strategy," he recently advised clients.
Published courtesy of BNW Business News Wire.
10:30 Dept of Energy reports that crude oil inventories had a draw of 3868K (consensus is a draw of 950K); gasoline inventories had a build of 3871K (consensus is a build of 1000K); distillate inventories had a build of 2077K (consensus is a build of 850K).
AGM: Thanks Wade and Researcher59 for the informative updates. The market may be pricing in more losses than the company expects (or admits to). Current qtr results will be more informative than anything else, and it's obviously been very hard to evaluate ongoing risk for AGM.
IMHO, AGM will probably continue to trade down with financials and perhaps down with farm/fertilizer stocks as well. Not sure what will be the catalyst to make it move up before earnings, but it has had a long string of down days lately, causing many to dump it due to their stop loss trading rules. Trading on strength of fundies is a tough game when the market is so volatile and on a downtrend for almost everything.
'peeker
14:09 (CDE pops on upgrade)
Coeur d'Alene Mines: Hearing upgraded intraday at Deutsche Bank (11.43 +0.64)
Sorry, I meant APT (flu masks) not AGT (gold miner, w/ price acting like it has the flu today).
'peeker
AGT (which I own): Maybe nobody is wearing their masks...
09:50 Swine flu toll leaps past 52,000 infected, 231 dead, WHO says - DJ
US is deep in the R E D.
Interesting chart:
http://scotusscores.com/
WEMU uplisting delay (gulp) ... thanks Bob ... better info than I got from the CFO in an email. Still seems like a very strong company if they can gain a foothold in US sales and continue to ramp solar business in China.
Best Regards!
'peeker
Kozuh, regarding NEP, where did you see that news, sir? Not on Yahoo yet ?????
TIA
'peeker
AGM - Wade??? Scary!!! Stomping your feet and yelling BuyBuyBuy is indicative of an overdose of antidepressants (Lexapro 3X Shares). Please call 911 or explain why you think AGM sellers have just vanished off the face of the earth.
Slow Stochastics turning up? RSI turning up? What got you so excited? Really, some explanation for the table pounding would be appreciated.
11:48 S&P reports rating on US Govt unlikely to be lowered in near term
The 'AAA' long-term rating on the U.S. is not likely to change in the near term, according to a report published by Standard & Poor's Ratings Services. The long- and short-term ratings on the U.S. government are the highest Standard & Poor's assigns, and the outlook is stable. Currently, 17 of the 124 sovereigns we rate have 'AAA' long-term ratings and stable outlooks. These include close G7 peers, such as Canada, France, and Germany."Like all our other ratings, we continually surveil our sovereign rating on the U.S. We evaluate new information pertaining to the U.S.'s creditworthiness as it becomes available," said Standard & Poor's credit analyst Nikola Swann. "That said, despite significant weakening in the near-term economic outlook, projected fiscal deficits, and the high fiscal costs of government support of the U.S. financial sector, we still believe that the U.S. government's credit strengths continue to outweigh its weaknesses," he added.
tmcal6, that would mean a great buy opportunity. I added at 4.25 as it fell thru to 3.40 earlier today and nearly choked. Let's hope it recovers back to the $5 level pretty quickly.
Thanks again!
'peeker
NEP getting hit hard today. Buying opportunity or bad news coming??? Any help would be appreciated.
08:28 Gapping Up
In reaction to strong earnings/guidance: SMG +4.9%, SLAB +4.2$... Select European drug related names showing strength: SNY +2.8%, AZN +1.3%... Other news: MIPI +29.2% (presents clinical data on prostate cancer diagnostic; demonstrates potential to rapidly detect prostate cancer), SVNT +27.6% (confirms FDA appointed arthritis advisory committee recommends U.S. FDA approval for KRYSTEXXA for refractory chronic gout; also upgraded to Outperform from Neutral at Cowen and upgraded to Perform at Oppenheimer), AGEN +18.6% (Antigenics QS-21 Adjuvant enters pivotal phase 3 clinical trial of GlaxoSmithKline's malaria vaccine), NBIX +11.0% (presents Elagolix data; no long-term bone risk during or after treatment), ALVR +7.2% (Alvarion and Open Range sign a multi-year contract for equipment and services expected at over $100 mln for 4G network across 17 states), EIG +4.3% (will replace Catapult Communications in the S&P SmallCap 600), GWR +3.3% (prices 4.0 mln common share offering at $24.50/share), LNC +2.7% (prices 40.0 mln common share offering at $15.00/share), RAI +2.4% (Jury rules in favor of R.J. Reynolds Tobacco Company in patent suit), MYL +1.4% (receives FDA approval for additional strength of generic restoril)... Analyst comments: TNDM +3.9% (upgraded to Outperform at Baird), NFLX +3.6% (May website traffic suggests Netflix could top its 2Q09 subscriber guidance - Lazard Capital Mkts), TXN +3.2% ( upgraded to Buy from Underperform at BofA/Merrill), QCOM +2.0% (upgraded to Conviction Buy from Neutral; price target to $53 from $43 at Goldman- Reuters).
09:00 Gapping Down
In reaction to disappointing earnings/guidance: RVI -5.1% (light volume), FDX -2.7%, ADBE -2.1%... Select financial names showing weakness: AIB -9.5%, IRE -4.7%, ING -4.1%, RBS -1.0% (Royal Bank of Scotland chief warns about higher property losses- FT.com)... Select potash stocks trading lower following K+S warning on weak European demand: POT -3.0%, MOS -2.9%, IPI -2.9%, CF -2.2%, AGU -2.1%, SQM -2.0%, SYT -1.8%... Select metals/mining names showing weakness: RTP -5.3% (receives China "monopoly" challenge - Times Online), MT -3.7%, GOLD -3.7%, AAUK -2.8%, GOLD -2.5% (downgraded to Sector Perform from Outperform at RBC Capital), SLW -2.5%, BBL -1.6%... Other news: STSI -72.2% (confirms jury verdict announced in Star Scientific patent infringement lawsuit against RJ Reynolds), ETFC -15.2% (reports May DARTS increased 4% MoM and 34% YoY; also announces $1.2 bln plan to strengthen capital structure; includes common equity offering, debt exchange transactions), JAZZ -5.0% (still checking), WLL -4.0% (announces public offering of 3,000,000 shares convertible perpetual preferred stock), MTXX -2.9% (confirms it is voluntarily withdrawing Zicam Cold Remedy Swabs and Zicam Cold Remedy Gel from the market), WPI -2.0% (to Acquire Arrow Group for $1.75 bln; expected to be accretive to EPS in 2010), TRP -2.0% (to issue 50,800,000 common shares at C$31.50/share and agrees to become the sole owner of the Keystone Pipeline System)... Analyst comments: PKG -3.4% (downgraded to Underweight at JPMorgan), COMS -2.5% (downgraded to Market Perform from Outperform at Bernstein), PCL -2.0% (downgraded to Underweight at JPMorgan), UL -1.3% (downgraded to Sell at UBS).
WEMU response by CFO John Ballard said they are evaluating their choices and may apply to AMEX vs. NASD. They will inform shareholders going forward.
'peeker
ps> Let's hope they have a timely news release to explain the situation. AMEX is certainly OK with me if NASD is creating too many hoops (in our current highly-sensitive regulatory environment).
AGM, thanks Wade. Wasn't really trying to needle you; it's just that I'm trading more than doing longterm holds in this market. When the overall mkt slides and financials slide, then small undervalued financial stocks slide too, especially when there are "unknowns" in the picture, as is the case for AGM. I'm sure that all it should take would be for a couple of high visibility StrongBuy recommendations to move it higher, but AGM doesn't have much analyst coverage.
I do own some that I bought back at 6.08 (after selling at 7.56 on the earnings; had a nice 2day double on it), so I'm sticking with it longer than I would for most underperforming stocks. I'm sure Bill O'Neill and many others would have left after an 8% loss on the stock. I'm pretty sure that most who bought on (whether on fundamentals or technicals) after the earnings announcement have sold out after "feeling the pain" of watching the chart take it lower and lower and lower.
Good luck to all AGMers.
15:49 Healthcare Co-ops get legs.
DJ reports a Senate Finance Committee effort to overhaul the health-care system has been slowed as chairman Max Baucus, D-Mont., said he will not unveil a bill Wednesday as planned. Baucus said he still intends to unveil the bill this week and to hold a formal committee session to consider the bill next week. One reason for the delay, Baucus said, is lawmakers are still trying to get accurate cost estimates from the Congressional Budget Office on the Finance Committee proposals. Baucus said the panel received some of the cost estimates from CBO on Monday night, but those estimates didn't reflect the most current version of the Finance Committee proposal. Baucus shed some new light on the bill's contents Tuesday. He suggested that a proposal by Sen. Kent Conrad, D-N.D., to create non-profit health cooperatives in lieu of a public health insurance option had gained traction among committee members. "The Conrad approach has got legs," Baucus said. "It's quite viable." He suggested that a possible provision to tax health insurance benefits would institute a high ceiling, above which the benefits would be taxed. "We're looking at a very high number," Baucus said. Related stocks: AET, CI, CVH, HUM, UNH, WLP (All up today ... hmmm)
To email WEMU CEO Jimmy Wang, use jimmyw@wwmusa.com
AGM: Wade, I'm not sure about the timeliness about Funds' selling to rebalance their index-based stocks when new companies are added (funds must buy) to replace old ones (funds must sell off). It may be that there is a window of time during which they can rebalance rather than force large volume days when index change becomes effective.
Somehow for AGM, I cannot believe the selling has all been based on selling prior to rebalancing of the index. In general it seems to trade with financials, only much worse on most days. Maybe the consistent downtrend has been based on the general notion that it went up too far with the blowout earnings.
???? anybody ????
WEMU: Suggest we call their IR firm and the CFO and email the CEO. Today I emailed the CEO (JimmyWang) asking about status of their request with NASDAQ but no response yet.
We'd all like to know what's the story on their application at this point since they were so optimistic on the last CC.
09:34 Industrial Production Weak in May (this info this AM is causing market to head lower for now)
The market wasn't looking for much out of the May Industrial Production report and it got what it wasn't looking for. Industrial production declined -1.1% in May after a downwardly revised -0.7% decline for April while capacity utilization dropped to 68.3% from 69.0%, which is the lowest level since records began in 1967. Manufacturing output was the biggest drag, declining -1.0% in May after a -0.6% decline in April. In turn, the factory operating rate hit a historical low of 65% in May, which is the lowest since records began in 1948... Separately, the output of mines dropped -2.1% while the output of utilities fell -1.4%. Notably, production of consumer goods dropped -0.8% in May, with declines in both consumer durables and nondurables. Business equipment output was down -1.4% and is more than 16% below the year-ago period, underscoring the broad-based and deep nature of the economic slowdown. Overall, industrial production is down -13.4% year-over-year. This report, quite simply, isn't good economic news and shows the roots of the green shoots recovery don't run that deep at this point.
07:21 A-Power Energy misses by $0.08, misses on revs; raises FY09 revenue and net income guidance
Reports Q1 (Mar) earnings of $0.04 per share, $0.08 worse than the First Call consensus of $0.12; revenues fell 3.4% year/year to $31.2 mln vs the $51.2 mln consensus. Co issues guidance for FY09, sees FY09 revs of at least $320 mln vs. $335.19 mln consensus, prior guidance $290 mln. Co sees FY09 net income of at least $32 mln vs prior guidance of $29 mln. These targets are based on the Company's current signed DG contracts, which are subject to change based on customer payment and construction schedules. A-Power expects that it will from time to time provide periodic updates as additional major DG contracts, and wind turbine sales, are confirmed. A-Power expects that it will from time to time provide period updates when additional major DG contracts and wind turbine sales are confirmed.
07:11 APWR: A-Power Energy Generation Systems-Led Local DG Industry Alliance to Receive $44 Million from Shenyang Government
Co announces it was briefed on a Shenyang government plan to invest a total of $44 mln in seed capital in Shenyang Power Group, the newly formed local DG industry alliance spearheaded by APWR and joined by power industry conglomerates to pursue large-scale electricity-generation projects both within and outside China. In addition, the Shenyang government will also appoint a local Chinese bank and a local guaranty company to participate in the Shenyang Power alliance. According to the plan, the city of Shenyang will seed $29.3 mln through a government-owned asset management firm, which will give Shenyang a 20% stake in the alliance. In addition, the government is to provide a subsidy of $14.7 mln -- to be paid in installments by 2011 -- to Shenyang Power. APWR is the lead investor in Shenyang Power and now owns 60% after today's investment by the Shenyang government.
WEMU wants (hasn't yet secured) NASDAQ listing.
Worldwide Energy and Manufacturing USA Announces Hiring of Nationally Recognized SEC Law Firm and Accounting Firm
7:00a ET June 16, 2009 (Market Wire)
Worldwide Energy and Manufacturing USA, Inc. (OTCBB: WEMU), a U.S.-based China manufacturing company specializing in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive, today announced that the company has hired a new SEC law firm, Sichenzia Ross Friedman Ference LLP, and a nationally recognized accounting firm, Windes & McClaughry Accountancy Corporation.
Worldwide Energy's Chief Executive Officer Jimmy Wang stated: "In order to ensure that WEMU is prepared for a listing on a national exchange, I have significantly strengthened our accounting and legal representation. Given our extraordinary growth and my vision to build a world-class solar company, I want to be sure that we are represented by experienced, nationally recognized firms."
Windes & McClaughry, in business 82 years, is an independent member firm of Baker Tilly International, one of the largest accounting and business networks in the world.
XOMA: Thanks for the feedback, swampboots and nsomniak, the volume burst is over, so I'll just watch closely for next little while and see what shakes out. I bought some last week at 1.15 and have watched it drift down to .86 before today's pop.
There was a TheStreet.com article that mentioned the stock but didn't have much good or bad to say about it, other than it was still in Phase 1 trial for potential once/mo diabetes drug.
Good luck!
XOMA taking off (last 10 minutes)on surge of volume suddenly. I can't find any news. Anyone know why XOMA is booshing?
I did see a comment on Yahoo that Takeda may be considering a bid for XOMA.
'peeker
minings stocks weak ... and getting weaker???
Hard to say whether the PM rush is over for now, but it appears there's a pause to say the least.
For those like me who are already overleveraged in PM stocks, it makes better sense to wait and attempt to buy more when the direction of gold and silver prices turn up again. We could be starting that "deflation" phenomenon (taking metals and mining stocks down further) before inflation reignites later this yr or next.
Other than PM stocks, I did buy some CHID and sold my CNEH (now NEP) today.