Oldtent Archives 2007 - 2008

 
                                                            Mr. Transparency
 

When one stops to consider that the foundations of the science of ‘economics’ is built upon the study of past conditions and events and looking for similarities in modern times; we can use this methodology to predict likely outcomes in the here-and-now.

Well, we’ve got intrinsically valuable tangibles [commodities and real estate] prices being ENGINEERED down by monetary authorities. Bank’s balance sheets are being “artificially” bolstered by their partners in government to take advantage of depressed prices prior to “REFLATION” [likely to be signified by the cessation of issuance of Cash Management Bills?]. And heck, the most bankrupt entity on the planet – the U.S. Treasury – is even getting in on the act by purchasing mortgaged backed securities for ‘pennies on the dollar’. Just think about that: when the great reflation occurs – The U.S. Treasury might even have their pitiful “leaky” balance sheet restored and made whole once again?

It would only be history repeating itself – all at the expense of folks who acted prudently in the face profligate government / banker money creation.

You just can’t make this stuff up. Sounds like a true story-book ending, eh?

http://www.financialsense.com/fsu/editorials/kirby/2008/1029.html

Don’t worry about the little dip in NEM hell they went up 24% yesterday..no problem there

Agnico-Eagle reports third quarter 2008 results
Wednesday October 29, 4:30 pm ET

(All amounts expressed in U.S. dollars unless otherwise noted)Stock Symbol: AEM (NYSE and TSX)

TORONTO, Oct. 29 /PRNewswire-FirstCall/ - Agnico-Eagle Mines Limited (”Agnico-Eagle” or the “Company”) today reported quarterly net income of $14.0 million, or $0.10 per share for the third quarter of 2008. This result includes a non-cash foreign currency translation gain of $18.5 million, or $0.13 per share, partly offset by a net loss on investments of $10.4 million, or $0.07 per share and non-cash stock option expense of $2.3 million, or $0.02 per share. In the third quarter of 2007, the Company reported net income of $11.5 million, or $0.08 per share. The increase in net income, when compared to the third quarter of 2007, was due to higher gold production and prices and the foreign currency translation gain, partly offset by the net loss on investments and substantially lower byproduct zinc and copper prices.

Third quarter 2008 cash provided by operating activities was $17.9 million, compared with $54.9 million in the third quarter of 2007, as higher gold production and prices were more than offset by lower byproduct zinc and copper prices.

http://biz.yahoo.com/prnews/081029/to974.html

  Probably good analysis of the gold stocks. NEM missed and went down as everything else went up. AEM is down a bit afterhours after they missed.

   You’d sure think the market has priced in alot of misses in the sector already.

   We really need the metals to start moving higher so they can be valued on future earnings.

www.etherzone.com/2008/bren102808.shtml

Chrysler deal close. The rumor is GM keeping jeep and vans dumping the rest. News reports estimate 25-40k jobs gone. Chrysler has about 49k total i think. How about their 3600 dealers and suppliers. Last one out of southeast MI please turn out the lights. (avg number employees 50 per dealer)

Posted: October 29, 2008, 1:01 PM by Peter Koven

The third quarter earnings season kicks off Wednesday for large-cap gold companies, and Credit Suisse analyst Anita Soni suggests the stocks are now “poised to disappoint” in a difficult market environment.

“We expect earnings, production or cost misses will be viewed unforgivingly in the current environment of extreme aversion to operational risk,” she wrote in a note to clients.

Unfortunately, she expects most of the companies she covers will report disappointing earnings. One reason is that base metal byproducts are no longer the gift that they used to be.

The plunging prices of copper and zinc will hit many of the gold companies, most notably Agnico-Eagle Mines Ltd. Ms. Soni figures that Agnico is the most likely company to miss consensus earnings per share estimates given the 16% drop in the zinc price.

On the positive side, Goldcorp Inc., Yamana Gold Inc. and Northgate Minerals Corp. will benefit from copper hedges. Yamana in particular is in a good position after hedging all of its 2008 copper production at about US$3.00 a pound.

Ms. Soni expects only four of the 12 companies in Credit Suisse’s coverage universe to beat the consensus earnings per share estimates: Northgate, Kinross Gold Corp., Alamos Gold Inc., and Gammon Gold Inc.

Third quarter earnings are likely to be lower than the second quarter because of weaker gold and base metal prices. But the gold price is still up 28% year-over-year, Ms. Soni noted.

my great panther was up over 60% today and it’s still about 10% of what i bought it for. i guess i’m lucky that my mini miner account was started with only $3,000. it’s just over $600. now. my main pm stocks are a mutual fund of sa miners which is down about 60% from the ultimate top. they are gaining at 12% per day. they made 25% per year since 1999. a good run now would probably take me back to the old ultimate top.

rno

(re:  B.O.)

Well, there ya go….one man’s trash is another man’s dirt….tiller that is. Hey, I know an ole boy from Chicago that would probably trade you a couple gold eagles for that thing. (grin)

Yeah,…Da Boyz done thrown everything and anything they can at us Goldbugs the past couple months. Had me at times on the verge of discouragement…..but tonight Im putting on my ole straw hat, and gonna play them a little song just so they knows WE Aint Never Given Up…EVER!

Grab a cup of coffee grounds, prop your feet up, and join me. Come along, Come along…join this ragtag band….

http://www.youtube.com/watch?v=bvXQ6MBh_2s

Wrapping up a good day at the farm, Best, Farmboy

in number of up days for me to get to even also.  Small world.

Woah, let me amend that. That would be to get back to the number at the peak after Wave 1. I guess that is even, eh?

hauled off some junk for an elderly fellow.one item of “junk” was a three point roto tiller that will fit my little john deere. the source of wealth can come from very unexpected places.

my very small pm stock account had a tremendous % move today. another 30 trading days like this one and my small miners will be back to even (G).

rno

…Nobody knows, the trouble Iz seen…

http://www.youtube.com/watch?v=pbqZde1_zSQ

does anyone really think that most of the bankers aren’t going to take the money and run.they won’t steal it, of course. they will loan it out and the loan will go bad. the examiners say, “write this off against the capital.” after a few bad loans, the bank is closed or taken over or whatever. those “bad” loans come back to the former banker/stockholder and they ride off into the sunset. there will be so many bad loans out there that the “circle” loans will be hard to isolate. with the upcoming financial upheaval, many new loans are going to go sour simply because the economy can’t support all the businesses. what do you think will happen to all the foreign loans that will soon be made. bankers are in it for the money. how will they react when more money can be made by gong broke than operating?

the amount of usd being used to prop up the world will be beyond comprehension. i truly believe that is why physical has disappeared. it can be moved anywhere in the world and retain value. i wonder where a close foreign country is that speaks english and has reasonable laws. a place that would be perfect if bertha, belcha, and burpa were exported. a place where an economic crash didn’t have far to fall. a place with a mild climate and year round growing season. a place that has several branches of a worldwide bank. any guesses?

the fed/us govt is going to send usd all over the world and it ain’t coming back. we are going to inflate the usd to nothing and pay off the national debt. the transfer of wealth will be complete when one group has paper, the other has hard assets.

rno

Thanks, that clears it up for me.