Submitted by: Francis Soyer
Yes, the flow of news, data, war death and suffering day in day out from uncle Satan is more than enough to make ones blood boil. Hence Francis is posting one for an attitude adjustment.
Tuesday, March 22, 2011
Time Out!
Submitted by: Francis Soyer
Yes, the flow of news, data, war death and suffering day in day out from uncle Satan is more than enough to make ones blood boil. Hence Francis is posting one for an attitude adjustment.
Is It Time To Short Every Single Global Hunter "Buy" Recommendation?
A week ago when we summarized the most recent round of inbound humiliation by one alleged bucket shop known as Global Hunter Securities, which basically has a buy recommendation on every single reverse merger ever to come to the US, even the acknowledged frauds such as in that particular case CCME, we said:"Oh well - at least we can be certain next week's non seasonally adjusted initial claims number will be at a minimum one (The Seasonally Adjusted can well be negative - it is from the BLS after all)." We were referring of course to the imminent termination of the sellside analyst covering CCME Ping Luo. You can therefore pardon our lack of astonishment when we read, literally minutes ago, the following release from Global Hunter: "We are discontinuing coverage of the following companies: AMCN,CCME, CHLN, CRTP, CVVT, HRBN, and SDTH. We are discontinuing coverage of these companies due to the departure of our analyst and due to a shift in our resources to other areas in the China space." Well, since we predicted the former, it was more or less expected, but we wonder what "other areas" in the China space has Global Hunter morphed to: will they soon be covering an as yet untought of pyramid scheme with a Turbo Buy? Or do by other areas do they actually mean perform due diligence instead of stamping everything that promises a coverage fee with a Buy rating. Which brings us to the topic of this post. Since Gobal Hunter's advisory reputation is smoldering in the sewer, we believe it is time to voice our own unsolicited advice, and tell readers to short every single company on Global Hunter's buy list. If today's example of DEER is any indication, the profit will be at least 20% in the span of a few weeks.
As readers know, we already discussed today's unexpected "discovery" by the analyst community that DEER (NASDAQ: FRAUD) is the latest stock to likely meet its reverse-merged maker in the purgatory of Over The Counter/Pink Sheet bulletin boards, where bid ask spreads are greater than the price of the actual stock. Yet as the chart below shows, we wonder just what magical demarcation line existed at precisely $11 for over 7 months! The flatline manipulation where there was a magical bid at all costs at $11 is beyond question. Of course, now that the stock has plunged below it, it is game over, as the next support is in the $8.00 range, following which the stock is taking the bullet train straight to zero.
We are curious if the porn-addicted securities regulator will actually move a finger to explain this chart which even a blind, mute and deaf monkey would recognize the inherent manipulated price floor in the name (until it breaks of course).
What we are not curious about, is the opinion that Global Hunter had on the name as recently as March 14, with a Buy recommendation and an $18 price target, this time by another analyst, Joe Giamichael - alas Joe may be joining Ping on the seasonally unadjusted initial claims line very soom. The gist is pretty much along the lines of what one would expect from any other alleged bucket shop.
As readers know, we already discussed today's unexpected "discovery" by the analyst community that DEER (NASDAQ: FRAUD) is the latest stock to likely meet its reverse-merged maker in the purgatory of Over The Counter/Pink Sheet bulletin boards, where bid ask spreads are greater than the price of the actual stock. Yet as the chart below shows, we wonder just what magical demarcation line existed at precisely $11 for over 7 months! The flatline manipulation where there was a magical bid at all costs at $11 is beyond question. Of course, now that the stock has plunged below it, it is game over, as the next support is in the $8.00 range, following which the stock is taking the bullet train straight to zero.
We are curious if the porn-addicted securities regulator will actually move a finger to explain this chart which even a blind, mute and deaf monkey would recognize the inherent manipulated price floor in the name (until it breaks of course).
What we are not curious about, is the opinion that Global Hunter had on the name as recently as March 14, with a Buy recommendation and an $18 price target, this time by another analyst, Joe Giamichael - alas Joe may be joining Ping on the seasonally unadjusted initial claims line very soom. The gist is pretty much along the lines of what one would expect from any other alleged bucket shop.
Charles Nenner- DJIA at 500, Major Wars
I would presume Libya is the appetizer to Nenner’s major conflict thesis. Well it seems that this recent incursion proves that over extension is another strategy on the table for the US military. In 2003, we saw the Bush administration maneuver directly into a pincer move against itself—as they opened a second front for extremists to engage the military in Iraq. It’s clear that either military or political philosophy is not Washington’s strong suit or the objective is not a quick resolution.
I am starting to believe there’s a lot more to Nenner’s arguments, especially the brooding deflationary crisis. This is not to say by any means that the dollar is a safe haven. That is because we have been in the deflationary spiral now for quite some time, primarily in terms of real wages.
The reality is that the dollar has become a dysfunctional currency. At the street level we are seeing smaller and smaller amounts of dollars chasing goods, which is in complete contrast to what we are witnessing in global capital markets.
Quantitative easing may have been part of the solution to the deflationary crisis-- had it been allocated towards stimulating industrial growth; however, money was instead diverted directly into equities, commodities and emerging where large returns on investment seem much more likely, at least for medium to short term profits.
Several factors emanating out of the two-tier economy should lead to another DJIA meltdown. Firstly, the successive rounds of misallocated quantitative easing schemes should become progressively less effective and ultimately, politically untenable. This will translate into an inability of the FED to buoy values of US securities. The second tier economy—essentially the US working class—will be forced to successively decrease their demand of good and services, as a result of the deflationary pressures brought on from the lack of credit, liquidity, and productive capacity.
Nevertheless, I still believe precious metals will continue to serve as the best hedges against the political, economic, and ecological disasters we are now witnessing.
I am starting to believe there’s a lot more to Nenner’s arguments, especially the brooding deflationary crisis. This is not to say by any means that the dollar is a safe haven. That is because we have been in the deflationary spiral now for quite some time, primarily in terms of real wages.
The reality is that the dollar has become a dysfunctional currency. At the street level we are seeing smaller and smaller amounts of dollars chasing goods, which is in complete contrast to what we are witnessing in global capital markets.
Quantitative easing may have been part of the solution to the deflationary crisis-- had it been allocated towards stimulating industrial growth; however, money was instead diverted directly into equities, commodities and emerging where large returns on investment seem much more likely, at least for medium to short term profits.
Several factors emanating out of the two-tier economy should lead to another DJIA meltdown. Firstly, the successive rounds of misallocated quantitative easing schemes should become progressively less effective and ultimately, politically untenable. This will translate into an inability of the FED to buoy values of US securities. The second tier economy—essentially the US working class—will be forced to successively decrease their demand of good and services, as a result of the deflationary pressures brought on from the lack of credit, liquidity, and productive capacity.
Nevertheless, I still believe precious metals will continue to serve as the best hedges against the political, economic, and ecological disasters we are now witnessing.
Subscribe to:
Posts (Atom)