Rick Ackerman and Technicals – Thu 1 Jun, 2017

By Cory Is a $1 Trillion Company a Good Thing For The Markets?

The chase for yield continues and this is driving a select few stocks to carry the markets to all time highs as well as continue to support European equities. Rick Ackerman and I discuss the recent stories about an upcoming $1 trillion company and what it means in the bigger picture for US markets.

Click here for Rick’s website and his updated technical levels he is watching.

Download audio file (2017_06_01-Rick-Ackerman.mp3)

…read more

Source:: The Korelin Economics Report

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Why Hedge Fund Heavyweights Love This Charity

By Alexander Green Ralph Waldo Emerson once said, “Without a rich heart, wealth is an ugly beggar.”

More bankers and money managers should consider these words.

As I discussed in a recent column, money is important. It buys freedom, resources, comfort and time. But it cannot be the foundation of your happiness.

We derive real satisfaction from intangible things in life – relationships, hobbies, passions and, of course, the “warm glow” feeling that comes from helping others.

Portfolios with Purpose is a nonprofit that turns investment prowess into good deeds. It hosts a year-long virtual stock-picking contest for seasoned portfolio managers. The contestant with the highest 12-month return gets to donate the pot to the charity of their choice.

For a number of years, I have participated in Portfolios with Purpose alongside Wall Street bigwigs like David Einhorn and Mark Yusko. But I didn’t write this column to talk about myself – or them.

I wrote it to introduce you to Eric Fry, an ex-hedge fund manager and the 2016 winner of Portfolios with Purpose. He’s giving his winnings to The Oxford Club’s Roberto Clemente Health Clinic in Nicaragua.

This is a man who understands that money is a means to an end. And in this case, Eric’s end was funding a free clinic in one of the poorest countries in the Americas.

I’ve known of Eric for some time, but he has a reputation for elusiveness.

Extremely observant and analytical people like him are often a little shy.

But what Eric lacks in bravado, he makes up for with technical expertise. He has a keen understanding of the “life cycles” of equities.

In other words, he analyzes the patterns that influence the performance of individual stocks, as well as entire sectors.

Some of my longtime readers may frown at the word “patterns.” It may sound a bit like a market timing scheme.

It’s not. Eric’s approach is far more methodical… and less foolish.


Market timers attempt to buy at the bottom and sell at the top, without having any real evidence behind their strategies. Their investing decisions are led by gut feelings. As a result, they’re prone to confirmation bias, panic-selling and other behaviors that generally lose money.

Eric, by contrast, analyzes more than 8,000 data points to track his equities through their life cycles. He incorporates growth metrics, value metrics and historical data into this process.

And his results speak for themselves.

He finished first in last year’s Portfolios with Purpose contest with an incredible annual return of 150%. It wasn’t even close – his portfolio earned 23% more than Einhorn’s.

There are two reasons I’m telling you all this.

First, Eric is a living example of how our financial system can be used to do good – not just well.

Second, The Oxford Club’s publishers have secured an exclusive opportunity to work with him. And we want to extend it to you.

As I write this, our team is flying out to Eric’s home in California for a private sit-down with the enigmatic investor. He has offered to bring a new trading service to the Club. It is unlike anything …read more

Source:: Investment You

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These 3 Market Lies Are Costing You a Fortune

By Greg Guenthner

This post These 3 Market Lies Are Costing You a Fortune appeared first on Daily Reckoning.

The averages are just a breath from all-time highs. The relentless rally marches on.

But no one’s happy about any of this…

The pundits and prognosticators were dead wrong. They keep telling us we’re in for a nasty crash. It all began late last year when the financial media all but guaranteed a post-election stock market meltdown. Instead, we’ve witnessed a historic surge.

So I have to ask…

How the hell did everyone get it so wrong?

Today, you’re going to find out. I’m breaking down three biggest lies swirling around the post-election rally —and how they’re costing you big bucks.

Let’s get started:

1. “Trump’s win was good for stocks.”

Dow futures swooned 750 points on election night as a Trump win became apparent.

The rogue candidate was going to tear down the establishment! The bull market would never survive a Trump presidency!

But as stocks climbed out of the gutter the day after the election, the media quickly changed their tune…

The headlines flipped as soon as stocks flashed green. Trump was no longer a threat to the markets. In fact, his election was positively bullish!

Go figure…

Despite what everyone told us before the election, a Trump win wasn’t the final nail in the market’s coffin. But his victory wasn’t the bullish catalyst portrayed by the media. My best guess is the market would have posted a similar rally following a Clinton victory.


Because the outcome wasn’t all that important. The market just wanted the election to just go away. It wanted a resolution.

As we told you time and again last year, strength in tech stocks, transports and small-caps were all hinting at a market melt-up weeks before the election came into play. With the uncertainty of a hotly contested presidential race out of the way, the market was free to build on the bullish activity that was setting up under the surfaces of the major averages. Simple as that.

2. “New all-time highs mean investors need to be cautious.”

I have no idea how this market meme got started, but fear of new all-time highs has dominated financial discourse since 2013.

In case you’ve had internet connectivity issues for the past few years, 2013 was the year the S&P 500 posted its first new all-time high since the financial crisis. As soon as stocks finally got their collective act together, we began seeing dire warnings of an impending market crash.

Of course, we all know how that turned out…

Last I checked, new highs were good for investors. Stocks leaping into uncharted territory is a hallmark of a bull market. Embrace it. Focus on strong sectors and the rally will reward you with winning trades.

3. “Stocks have moved too far, too fast.”

“This rally is overcooked” is the anthem of the bull that stayed behind. He received an invitation in the mail. But for whatever reason, he never made it to the party.

Of course, the market never goes up in a straight line forever. The branches shake …read more

Source:: Daily Reckoning feed

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Is CAE Stock Undervalued or Overvalued Today?


By Rob Otman

CAE (NYSE: CAE) is a midcap company that operates within the aerospace and defense industry. Its market cap is $5 billion today, and the total one-year return is 31.38% for shareholders.

CAE stock is beating the market, and it just beat earnings estimates. But does that make it a good buy today? To answer this question, we’ve turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…


✗ Earnings-per-Share (EPS) Growth: CAE reported a recent EPS growth rate of 8.7%. That’s below the aerospace and defense industry average of 22.28%. That’s not a good sign. We like to see companies that have higher earnings growth.

✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the defense and aerospace industry is 64.05. And CAE’s ratio comes in at 21.72. It’s trading at a better value than many of its competitors.

✓ Debt-to-Equity: The debt-to-equity ratio for CAE stock is 60.33%. That’s below the aerospace and defense average of 78.17%. The company is less leveraged.

✓ Free Cash Flow per Share Growth: CAE’s FCF has been higher than that of its competitors over the last year. That’s good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It’s one of our most important fundamental factors.

✓ Profit Margins: The profit margin of CAE comes in at 9.08% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. CAE’s profit margin is above the aerospace and defense average of 3.75%. So that’s a positive indicator for investors.

✓ Return on Equity: Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for CAE is 12.87%, and that’s above its industry average ROE of 9.43%.

CAE stock passes five of our six key metrics today. That’s why our Investment U Stock Grader rates it as a Strong Buy.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth. For more details, click here. …read more

Source:: Investment You

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Positive Results Boost Stocks, but Still Some Buys

Source: Adrian Day for Streetwise Reports 06/01/2017

Money manager Adrian Day reviews the current news from five companies and reflects on prospects for return on investment.

Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) reported increased revenues, but more important it has acquired a major new asset, a silver stream on the Gibraltar copper mine for CA$44 million, and it has seen progress in its “accelerator model,” whereby it acquires shares and royalties in early stage projects which it nurtures along.

CEO Sean Roosen advocates that “most wealth is created at the drill bit. . .the lowest cost place to get a royalty is at the very beginning of the project.” This is a different and somewhat more risky approach than that pursued by most other royalty companies, but Osisko has experienced management and has been successful. The value of its equity portfolio is around CA$341 million, over $130 million above its cost. So, were Osisko to sell its equity, it would be building a portfolio of royalties and be paid to do so.

In all, some 870,000 meters of drilling are planned for this year on ground covered by Osisko’s royalties, while 13%-owned Falco is moving toward a feasibility study on its Horne project.

Osisko arguably should trade at a discount to other large royalty companies given the higher risk in the model, but the discount is too wide right now. With strong, experience management, a solid balance sheet, a significant pipeline inside the company, Osisko is a strong buy at current levels. Some analysts believe that Osisko will be one of those companies reduced when the GDXJ index makes its portfolio adjustments mid month. Any sell off at that time, would be a time to buy.

Core holding with room to grow
Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) continues to perform well, with “gold equivalent ounces” up 23% in the first quarter from a year ago. With about $1.5 billion in available capital, Franco is looking at opportunities in both gold and other metals as well as in oil and gas. Gold transactions this year are likely to be small deals rather than the mega deals of the last two or three years. And with the decline in the oil price, those transactions look for attractive, with the focus on the U.S., a large and fragmented market. Precious metals currently account for 92% of revenues, so there is room for some diversification. Franco continues to be a core holding for us. We are holding.

Midland continues to make progress on many fronts
Midland Exploration Inc. (MD:TSX.V) continues to be active. In the last two months, since our last review, it has signed a new option agreement with IAMGOLD Corp. (IMG:TSX; IAG:NYSE) on its Heva gold property; acquired (by map designation) a new property in the Labrador Trough with strong zinc-copper potential; identified new drill targets on its 100%-owned La Peltries gold property; and last, but by no means least, approved the nomination of Paul Archer as a new director of the company.

Mr. Archer was the highly regarded vice-president of exploration for Virginia, and a key component of the great success of that company. He is an important addition to the Midland board.

As for Heva, it is near the prolific Cadillack Break, five kilometers northwest of the Canadian Malartic mine. IAMGOLD can earn a 50% interest by making cash payments and exploration expenditures (of $4 million) over four-and-a-half years, with options to increase to 65% with additional expenditures.

We would add to positions in Midland on any weakness, say to the mid-90 cent level. But if you do not already own, it’s a buy.

Strong balance sheets help these companies
Nestle SA (NESN:VX; NSRGY:OTC) reported a reasonably solid first quarter, though the U.S. continues to have a difficult consumer environment, with sluggish demand. The company’s new CEO renewed a commitment to improving both growth and margins. Nestle remains our favorite big-cap staple and a top global blue chip. It has drivers for value creation—including its balance sheet, good brands, and savings potential—yet trades at a lower valuation than most companies in the same category. We hold as a core position, but would look for weakness to add.

Loews Corp. (L:NYSE) reported strong income growth over the past year, led by significant gains in its largest unit, CNA Insurance, with subsidiary Diamond Offshore, not surprisingly, the only negative performer. Its latest acquisition, Consolidated Container Company, is relatively recession-proof with stable earnings, thus offsetting some of the other businesses at Loews, with great cash-on-cash returns. It is in a fragmental industry, offering possibilities for bolt-on acquisitions, though there is nothing in the works at present. After this acquisition is completed, Loews will still have around $5 billion in cash and investments on the parent balance sheet. We are holding Loews, but would buy on weakness to the mid-to-low $40 range.

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is “Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks.”

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Osisko Gold, Franco-Nevada, Nestle. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Osisko Gold, Franco-Nevada, Midland Exploration, Nestle, Loews. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Franco-Nevada Corp., a company mentioned in this article.

( Companies Mentioned: FNV:TSX; FNV:NYSE,

Successful partnership makes fly-in/fly-out easier

By analyst

By Andrew Topf

The software, designed specifically for large-scale projects – converts multi-step bookings into a single streamlined process. This includes flights, ground transportation and accommodations.

Anyone who’s ever worked in a fly-in/fly-out oil or mining camp knows that the logistics of getting from home to work and back can be a challenge. The trip often involves a combination of flights and ground transportation, multiple boarding passes, and of course, the usual vagaries of travel including weather and mechanical delays. Then there is the potential for problems at the camp, such as room reservations, menu glitches, and even issues with housekeeping.

While managing large-scale camps in remote locations seems like a straightforward and manageable task, in reality the job involves balancing complex components across various systems, including: matching charter flights with commercial schedules; accommodation availability; compliance risks; itinerary risks; and ensuring duty of care.

“The whole operation can be seen in one dashboard. So from a logistics perspective, the challenges have been greatly diminished for the camp operators. And you know, it runs like a well-oiled machine”: Gemstone Logistics president Tom McHale

After spending 20 years working in remote locations, Gemstone Logistics CEO and president Tom McHale recognized the challenges resource companies faced in attracting and retaining qualified workers, and also understood the strains workers felt being away from family and friends for weeks at a time. In 2005, while working as an aviation manager, McHale pioneered the first successful cross-Canada fly-in/fly-out program for a major oil company. He went on to found Gemstone in 2007, providing air transportation services for large-scale resource and construction projects.

Over the years, Gemstone recognized a need across major industrial projects to integrate fragmented site services. Its proprietary software CIRYS has successfully transformed travel management processes among many major oil companies – saving clients millions of dollars along the way.

In early 2015, Gemstone acquired Orissa Software Inc., including CampWare, software tailored to the front desk, housekeeping, food services and guest management needs of workforce accommodation facilities.

Yet despite these powerful software tools, Gemstone Logistics sought a way to even further integrate its transportation and accommodation services for remote camps. The solution was to partner with American Express Global Business Travel. The company is independent from American Express Company, but the U.S. multinational has a 50-percent interest in American Express GBT.

Launched in 2016, the partnership, dubbed a “complete travel management solution,” saw “Gemstone’s proprietary travel and accommodation management software, CIRYS, integrated with GBT’s booking and servicing solutions, providing optimum manpower planning capabilities, an end-to-end view of every traveller’s journey and seamless travel management,” according to a press release.

McHale said the problem up to recently with transportation and accommodation at remote camps has been the disconnect between booking systems.

“There could be 10,000 people in a camp, and there was a separate system for camps, there might be an airline, or various airlines flying workers in through charter, no connection whatsoever. There was the busing disconnect, other types of on-boarding disconnects, no reporting capability, no accountability. It was really willy-nilly. So by integrating it …read more

Source:: Infomine

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‘Strong hand’ may be pushing palladium price higher

By analyst

'Strong hand' may be pushing palladium price higher

By Frik Els

Wednesday was a generally good day for precious metals with the complex recovering much of the losses suffered since mid-April.

Palladium was once again the best performer on the day, up 1.5% to $816.75. Nymex palladium futures are sporting year-to-date gains of more than 20% and are once again approaching two-year highs hit at the end of April.

The fortunes of palladium and sister metal platinum have diverged dramatically over the past year. A new annual report by the GFMS team at Thomson Reuters on the PGM market argues it is “more a case of when, not if, the palladium price will exceed platinum”.

It would be the first time since 2001 that palladium is worth more and its relative strength is even more remarkable given that the gap averaged just over $1,000 an ounce between 2007-2012.

The superior performance for palladium is unsurprising given that 2016 was the fifth year in a row of substantial deficits (1.2m ounces or 37 tonnes) and the automotive markets in China and the US have enjoyed record breaking runs. Palladium mainly finds application in gasoline engines and the sector is responsible for 70% of overall palladium demand.

But a report from Platts News suggests other forces may be at work and that a market participant with a “strong hand” may be putting the “squeeze” on the metal.

Sponge (semi-finished metal) prices have been stable which suggests the unusual tightness is at the refining end of the market. The report quotes a senior banking source as saying lease rates for palladium have quadrupled from 1% to 4%:

“There’s certainly a tightness, but I’m not sure if it’s fundamentals or a strong hand,” he said.

“People have tried this [possible squeeze] before and it can get ugly, real fast. You’d be a brave man to take a position, short or long, at these levels,” the source said.

A research note from Commerzbank also cautioned on the outlook with the investment bank saying it “cannot understand why the palladium price should be so strong given that automotive markets in the US and China are faltering and ETF outflows are continuing.”

Continue reading at Platts News

The post ‘Strong hand’ may be pushing palladium price higher appeared first on MINING.com.

…read more

Source:: Infomine

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Valuable Insights from Around the Web – Wed 31 May, 2017

By Cory Fiduciary Rule on Pace for June, but Changes May Be Close

This is a good review of the Fiduciary Rule that has all but been forgotten in the media over the past couple months. No one knows what the updated rule will be but it seems like we will be finding out soon…

This article courtesy of FactSet. Click here to visit the FactSet webiste for more great posts.

The Department of Labor’s (DOL) Fiduciary Rule is set for partial implementation on June 9.

On March 1, the DOL proposed a 60-day delay to the Fiduciary Rule, seemingly setting the stage for its repeal or revision. The rule, which requires financial advisors and brokers to put their clients’ investment interests before their financial incentives, was set to start taking effect April 9. The Labor Department’s proposal to push that effective date back 60 days came after President Donald Trump signed an executive action on February 3 asking the acting Secretary of the Labor Department to revise or rescind the rule. The DOL 60-day delay request, in response to Trump’s executive action, came in an official statement, which stated, “The proposed extension is intended to give the department time to collect and consider information related to the issues raised in the memorandum before the rule and exemptions become applicable.”

However, rather than delay the Fiduciary Rule’s implementation again, it now appears will forge ahead, with the potential for repeal and replacement further down the road.

On May 23, Alexander Acosta, Trump’s new DOL Secretary, wrote an opinion piece for The Wall Street Journal called Deregulators Must Follow the Law, So Regulators Will Too, where he stated:

“The Labor Department has concluded that it is necessary to seek additional public input on the entire Fiduciary Rule, and we will do so. We recognize that the rule goes into partial effect on June 9, with full implementation on Jan. 1, 2018. Some have called for a complete delay of the rule.

We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input. Respect for the rule of law leads us to the conclusion that this date cannot be postponed. Trust in Americans’ ability to decide what is best for them and their families leads us to the conclusion that we should seek public comment on how to revise this rule. Under the Obama administration, the Securities and Exchange Commission declined to move forward in rule-making. Yet the SEC has critical expertise in this area. I hope in this administration the SEC will be a full participant.”

The Securities Industry and Financial Markets Association (SIFMA), is the main lobbying group of the U.S. securities industry. It represents the broker-dealers, banks, and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $18.5 …read more

Source:: The Korelin Economics Report

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Chris Temple from The National Investor – Wed 31 May, 2017

By Cory Recapping the Month of May For Investors

As we are in the final trading day for May Chris Temple and I recap the month. We look at US markets, currencies, treasuries, and the precious metals all with a look forward to what June and the rest of summer will bring.

Click here to visit Chris’s website for more great posts and thoughts.

Download audio file (2017_05_31-Chris-Temple.mp3)

…read more

Source:: The Korelin Economics Report

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