tag:blogger.com,1999:blog-29669039020073844802024-02-07T00:30:15.680-08:00North American Interestsnews of the day, investingnorth american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.comBlogger101125tag:blogger.com,1999:blog-2966903902007384480.post-62802264332452896012017-06-07T15:46:00.001-07:002017-06-07T15:50:20.937-07:00The Sky's The Limit For Oil and Gold war peace money currency tradeNever has the threat of world war been more imminent than right now.<br />
Most of the world's infrastructure continues to rely on outdated technology powered by oil and gas.<br />
History proves no country is immune to the devastating effects war has on currency reevaluation.<br />
This makes hard assets highly desirable - gold and oil being the two most coveted. more demand means more liquid (easier to trade).<br />
<br />
Take into account the widespread demand, as well as the scarcity of these commodities - and you have the perfect storm.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFSY_Lw71MJEsh8Ggl6nrqhM5icc__uiyzp1HV7ovvNCOw7jwrGULCpq5pjE4arLXm1ZfPuQExIk4rszR6fWNvfRi_hqpCYQq81096N2BIYGIcji3wVHIhRSmrcfzZ6wyln1r8O8O-VkA/s1600/gold-gold-war-currency-exchange-rate-us-dollar-yuan-yen-renminbi-euro-invest-buy-bullion-gold-commodities-barter-trade.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="gold, war, trade, barter, conflict, war, trump, china, europe, muslim, pope, money, armed, exchange rate, dollars, euro, russia," border="0" data-original-height="245" data-original-width="511" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFSY_Lw71MJEsh8Ggl6nrqhM5icc__uiyzp1HV7ovvNCOw7jwrGULCpq5pjE4arLXm1ZfPuQExIk4rszR6fWNvfRi_hqpCYQq81096N2BIYGIcji3wVHIhRSmrcfzZ6wyln1r8O8O-VkA/s1600/gold-gold-war-currency-exchange-rate-us-dollar-yuan-yen-renminbi-euro-invest-buy-bullion-gold-commodities-barter-trade.png" title="oil gold war invest buy trade barter global conflict money " /></a></div>
<br />north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com2tag:blogger.com,1999:blog-2966903902007384480.post-52212976880863176452016-10-13T04:31:00.001-07:002016-10-13T05:28:23.960-07:00United States Corporate Tax Rate Flawed Companies Relocating Policies clinton buffett rule takeovers<br />
The average corporate tax rate among 20 competing markets is under 20%, but in the United States this number is 35%.<br />
A 2016 report by <a href="http://ratecoalition.com/wp-content/uploads/2016/05/RATE-Memorial-Day-Recess-Package-2016.pdf">Ernst & Young</a> found that a reduction in that rate to the more competitive level of 25% would have "prevented foreign takeovers of 1300 companies". This doesn't even account for the losses attributed to tax inversions; Fewer companies relocating is a double blessing for the United States because<br />
1) the federal government would take in more tax revenue without having to raise the rate on remaining companies.<br />
2) becomes more attractive to foreign entities interested in relocating their legal domicile to a more tax friendly jurisdiction. Because America is such a large market with many net benefits this should be considered the limiting factor and thus consequential.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEit5DacG2Kscj3h_Oe9PyQQg53aqkaVPBAM585LMpbLBMvUcZfZlzYRZOOlqtGxj20sRsqjCkQjsrzeCfTzj1H3TGeJDX5E2E3w7JCE9VW_okL8K9QH7GYPT1iL9lI8wy_JBN9oq9qthGQ/s1600/american-united-states-taxes-code-corporate-double-tax-companies-250-thousand-jobs-headquarters-wallstreet-money-inversions-china-dollars-banks-loans-bankrupt-cash-spending-jobs-trickle-down-election-russia-yuan.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="tax inversion, tax haen, buffett rule, policies, clinton, united states, corporate tax rate, competitive, wallstreet, relocating, headquarters, foreign takeover," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEit5DacG2Kscj3h_Oe9PyQQg53aqkaVPBAM585LMpbLBMvUcZfZlzYRZOOlqtGxj20sRsqjCkQjsrzeCfTzj1H3TGeJDX5E2E3w7JCE9VW_okL8K9QH7GYPT1iL9lI8wy_JBN9oq9qthGQ/s1600/american-united-states-taxes-code-corporate-double-tax-companies-250-thousand-jobs-headquarters-wallstreet-money-inversions-china-dollars-banks-loans-bankrupt-cash-spending-jobs-trickle-down-election-russia-yuan.png" title="tax inversions election buffett rule income taxes high earners clinton president companies corporate tax rate revenue fortune 500" /></a></div>
<br />
Between 1986 and 2016 the number of US companies ranking among the world's top 500 by revenue fell from 218 to 128. To maintain tax revenue, the country has had to raise the rate on the remaining companies - this hasn't helped the situation which has gotten out of control : $300 billion worth of companies taken over in 2016 highest in almost two decades.<br />
<br />
Points to consider when voting in the next election: Policies and business<br />
<br />
<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span>
<span style="font-family: inherit;">My opinion</span><br />
<br />
<ul>
<li><span style="font-family: inherit;">since when does a bankrupt nation have the luxury of choosing expensive energy? Clinton wants to add trillions more in debt to build the infrastructure needed to produce energy at a rate of 80+ cents per kwh when coal and gas is only 25 cents. The transition to alternative forms is the reason Nova Scotia has the highest utility rates in Canada.</span></li>
<li>The Trump Plan will lower the business tax rate 35%->15% and eliminate the corporate alternative minimum tax.</li>
<li>unlike Trump, Clinton is not proposing a full overhaul of the tax code. her plan is intended to make sure the wealthy pay their "fair share" in income tax. Under her the code more complex, particularly for high-income earners who might or might not meet the Buffett Rule (every individual and company making more than $250 thousand have to pay a minimum of 30%); they could also be subject to her proposed 4% income surtax on income over $5 million.</li>
</ul>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com2tag:blogger.com,1999:blog-2966903902007384480.post-27454674032407347222016-08-03T11:37:00.001-07:002016-08-03T11:42:30.315-07:00Gold Has Not Peaked Yuan Renminbi Will Replace The Dollar currency crisis<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEia5Dqt9ZVfJp59EW4c8ZDBvRgxWbdUJUX596UaZPIpTcN2Q-mYVqofVXgYT9SdC5B7MPgGdqPoSbehNNHOT1tJIfAyHXkGtZKfRtHH8WWHoZveqyJGh2_yHaTpeS88RjpQYuDJGJIVjU0/s1600/gold-invest-coins-dollars-buying-exchange-rates-spot-price-canada-online-rolex-high-end-pure.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="financial crisis, trade war, china, yuan, gold backed, currency, united states, russia, dollar, trade wars, money, barter, silver, gold price, exchange rate," border="0" height="227" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEia5Dqt9ZVfJp59EW4c8ZDBvRgxWbdUJUX596UaZPIpTcN2Q-mYVqofVXgYT9SdC5B7MPgGdqPoSbehNNHOT1tJIfAyHXkGtZKfRtHH8WWHoZveqyJGh2_yHaTpeS88RjpQYuDJGJIVjU0/s320/gold-invest-coins-dollars-buying-exchange-rates-spot-price-canada-online-rolex-high-end-pure.png" title="gold investing china replace dollar currency crisis global transactions stock market new economy financial trump" width="320" /></a></div>
According to a spokesperson at Canada's largest bank <a href="http://www.kitco.com/news/2016-08-03/Why-RBC-Capital-Markets-Thinks-Gold-Has-Peaked.html">RBC</a>, the current gold price has no legitimate support because they say, it stems from record breaking investor demand in gold ETF 's and a reshuffling of asset positions at Comex. It sounds as if even the bank's are running low on excuses to justify their bearish positions on gold - They say that without a new risk off event the price should fall back to a long term outlook level of around $1240. <br />
<blockquote class="tr_bq">
<i>Seraphim's opinion</i> - Y<b>ou want risks ? You got'em !</b> How about a 180 degree change in the relationship with Russia ? or an admittance that the United States is fighting an entirely different war in the middle east than what's been publicly declared ? or how about a new trade war with China ? <u>This is just the tip of the iceberg of what awaits the US in the coming year if Donald Trump becomes president as the polls have already tipped in his favor</u>.</blockquote>
At a time when investor confidence is not just low but non-existent, money printing continues unabated, and the US dollar remains overvalued (even if just because every other currency is being devalued so as to boost gdp) 2017 is on track to be the riskiest year of the millennium. <br />
Historically, gold's role proved to be irreplaceable - in protecting national economic security during times of financial crisis, geopolitical crisis, currency crisis.<br />
<br />
<h2>
<span style="font-size: large;">China Will Use Gold's Unique Position to Elevate Itself</span></h2>
<br />
China has long sought to replace the dollar in foreign transactions with its own currency, and that started happening this year - even Canada is on board with its own <a href="http://www.icbk.ca/EN/AboutUs/News/News/Industrial_and_Commercial_Bank_of_China_Designated_as_the_First_RMB_Clearing_Bank_in_North_America.htm">Yuan</a> clearing bank set up in Toronto.<br />
The ultimate goal however is to usurp the dollar's position in global finance. <u>The only time that could happen is during a time of collapse in currency markets - even if it is just temporary gold will become the default currency of choice</u>. <b> If China is the only country capable of supporting its currency with gold (aka the yuan renminbi is gold backed) then the yuan will have won !</b><br />
<br />north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com1tag:blogger.com,1999:blog-2966903902007384480.post-42307167914737788482016-05-30T02:15:00.002-07:002016-05-30T02:15:41.419-07:00Keep Oil and Gold In Your Portfolio, no substitutes renewables world reserve currency<h2>
<span style="font-size: small;">No Oil Substitutes</span></h2>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgh-tSu5n2G1IN-Ihgx2lg7-Bb2mFRkm4XABqLK2WakGthpnF0EOxAOQEQD_cWCN2CF0JxE4wv5iU-qWCgrRIuBUSed7QL5hG2yMFIead7kf_EOZ49IcsOcRL2N58E_MwIkHnU2J2-6mr0/s1600/oil-production-petroleum-reserves-gas-prices-gasoline-refineries-crack-spread-gold-standard-china-canada-russia-usa-american-energy-companies-stocks-portfolio.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="nigeria oil reserves, africa, russia economy, china oil, china gold, china currency, commodities, oil prices, gas prices, fuel consumption, renewable energy, fossil fuels, oil reserves, oil production, oil output, gold standard, war, usa and russia, gas companies, largest companies," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgh-tSu5n2G1IN-Ihgx2lg7-Bb2mFRkm4XABqLK2WakGthpnF0EOxAOQEQD_cWCN2CF0JxE4wv5iU-qWCgrRIuBUSed7QL5hG2yMFIead7kf_EOZ49IcsOcRL2N58E_MwIkHnU2J2-6mr0/s1600/oil-production-petroleum-reserves-gas-prices-gasoline-refineries-crack-spread-gold-standard-china-canada-russia-usa-american-energy-companies-stocks-portfolio.png" title="charts for largest oil and gas producers in the world russia, iran, united states, texas, alberta uae opec venezuela bankrupt money gold standard, kuwait, iraq oil reserves, nigeria reserves, key companies, oil reserves, gasoline prices natural gas crude oil crack spread refineries investing in oil and natural gas wcs brent upgrade oil heavy oil medium oil light oil wti west texas intermediate " /></a></div>
<u>Oil and Gas</u> - Despite what many western governments and environmentalists are saying, the world has not moved away from oil. While it is true that many modern vehicles are equipped with hybrid fuel technology, they still depend on gasoline for 80-90% of their fuel needs. Virtually every home built twenty or more years ago is heated with oil and the cost to change that is high making the change to electricity an additional expense most homeowners simply cannot handle in a depressed economy. Additionally the more popular modern power generators are only fueled by oil and gas.<br />
<br />
<u>Gold</u> - The yellow metal holds a unique status in everything from religion to jewelry to wealth storage. Even central banks and world governments look to gold as an inflation hedge and trade gold in times of economic trouble (2016 - Venezuela); no other metal enjoys this distinction not even platinum and there's no reason to think that will change anytime soon. The last time fiat currency wasn't being used world trade relied fundamentally on the gold standard. With the US dollar losing popularity as the world reserve currency and China looking to gold to prop up its own currency it appears as if the gold standard will once again run the world economic system.<br />
<br />
<br />
<h3>
Oil production still powers the economies of many key nations</h3>
<br />
<b>And these are nations of influence</b> - Saudi Arabia, Russia, Iran, Canada, United States. Other key countries such as <b><u>Nigeria and Venezuela are developing vast oil reserves as a source of future economic growth</u></b>. As long as oil is available there will be a market for it. (nigeria oil reserves)<br />
<br />
<u>Renewable Energy Sources Continue To Be Too Expensive</u><br />
<br />
With the world economy slumping along there is no reason to expect people to voluntarily shift to expensive sources of energy anytime soon. Even the cheapest of these - energy derived from corn (corn demand, ethanol) in South America - is already wreaking havoc on commodity prices in that part of the world because it takes too much of the crop to replace just a fraction of the energy it needs.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-66957900283614146572016-04-29T06:33:00.000-07:002016-04-29T06:33:55.348-07:00Dollar Falling Gold Rising price commodities rally silver mining productionWhat's different about this commodities rally is that it's not just the gold price that's up - gold equities and mining stocks in general are starting to exhibit overall growth, even the ones with known risks kinross, anglogold ashanti.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAskRvs4vJV7kLnjfJkHXG1-McKzuwL-th8nOAsCrpKonVH43T3g-gZHucDEF5XOLtRxO_zbWfBxech_XdLwh1QypFx7cyUMnoQuN-M7F8fJh7auGn7lcJyz4Sq7aKF7d1xa0zdar06QM/s1600/gold-production-stocks-equities-commodities-investing-silver-platinum-metals-mining-companies-kinross-spot-price-wallstreet-mines-new-anglogold-eldorado-china-undervalued-cash-cost-earnings-pe-ratio.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="commodities, gold companies, mining companies, mining, spot price, gold price, spot gold, spot silver, anglogold mines, undervalued stocks, commodities rally, metals, platinum, equities, wallstreet, mining production, cash cost, quarterly, quarterly production, earnings, revenue, sales, south africa," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAskRvs4vJV7kLnjfJkHXG1-McKzuwL-th8nOAsCrpKonVH43T3g-gZHucDEF5XOLtRxO_zbWfBxech_XdLwh1QypFx7cyUMnoQuN-M7F8fJh7auGn7lcJyz4Sq7aKF7d1xa0zdar06QM/s1600/gold-production-stocks-equities-commodities-investing-silver-platinum-metals-mining-companies-kinross-spot-price-wallstreet-mines-new-anglogold-eldorado-china-undervalued-cash-cost-earnings-pe-ratio.png" title="gold mining companies undervalued production new mines china anglogold eldorado kinross gold malartic equities silver price stock market" /></a></div>
Get Used To The Dollar Falling<br />
<br />
<br />
<ul>
<li>A deteriorating relationship with Saudi Arabia means we might be witnessing the last days of the 'Petro Dollar' - at best this translates into even less support for US dollar denominated trade.</li>
<li>China backed gold certificates issued by the BRICS fund gain traction</li>
<li>The Federal Reserve The Fed losing control of situation it attempts to solve due to plunging interest rates and lack of interest in treasury notes</li>
</ul>
<br />
<br />
Diversity Is Important<br />
<br />
<br />
<ul>
<li>Don't limit your purchases to just one company spread it around but do favor companies that already have the infrastructure in place to produce gold since it can take a long time to develop a mine. </li>
<li>Also keep in mind that many established companies shuttered a large portion of their mine portfolio over the past few years due to declining prices</li>
<li>Focus in on companies that weathered the storm and didn't resort to closing mines - in the short run they will yield the best returns.</li>
</ul>
<br />
<h2>
<span style="font-size: large;">Don't Ignore Silver</span></h2>
The gold silver ratio exceeded 80 for much of the last year but now with a new commodity bull run starting to take place, the ratio has already declined to 70. <b>Considering the recent past (10-15 years) the ratio has the potential to decline even further to below 40, leaving the possibility of a 2 to 1 return on silver verses gold.</b> <u>Demand for silver remains strong but remember that central banks don't buy it - this means that global economic instability is less likely to benefit silver price and more likely to benefit the price of gold.</u> In the meantime make silver mining companies a priority.<br />
<br />
Kinross Gold NYSE:KGC - has most to benefit from a new gold rally. kept mines despite downturn in stock in recent years - weathered the storm.<br />
iamgold NYSE:IAG - stock suffered more than competitors last five years down 85%. key mines remain operational and showing robust growth.<br />
Seabridge Gold NYSE:SA - 40 million ounces gold 300 million ounces silver and that's just 2P proven reserves. any news regarding mine development will double the stock price overnight.<br />
spdr gold trust<br />
sprott gold trust - can redeem shares for physical goldnorth american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-80640527253228168682016-03-29T08:03:00.003-07:002016-03-29T08:03:50.981-07:00Stocks to Watch 2016 Valeant Pharmaceuticals nyse:VRX Sobeys tse:EMP.A undervalued<h2>
<span style="font-size: large;">Valeant Pharmaceuticals nyse VRX</span></h2>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhn2c1etx8QAE_w533Cbq77an62RcWm34X3ULHyJNX0gId9QDpcCvsQiTaxcrdI-3T_EnWulffsAhlTkqUD9goGp6GNoPdOi_lNwDY2GfGLu7Te1BEk2MvCRuLe1MajhCQ1PTkfi94cWp8/s1600/stocks-watch-buy-2016-2017-2018-valeant-pharmaceuticals-vrx-new-york-exchange-nyse-tsx-toronto-sobeys-safeway-loblaws-grocery-price-shopping-undervalued-overprice-underprice-earnings-book-value-drugs.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="philidor, valeant pharmaceuticals, valeant, undervalued companies, undervalued, stocks, drug sales, diversified, sobeys earnings, price earnings ratio, stock price, nyse, new york stock exchange, drug pricing," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhn2c1etx8QAE_w533Cbq77an62RcWm34X3ULHyJNX0gId9QDpcCvsQiTaxcrdI-3T_EnWulffsAhlTkqUD9goGp6GNoPdOi_lNwDY2GfGLu7Te1BEk2MvCRuLe1MajhCQ1PTkfi94cWp8/s1600/stocks-watch-buy-2016-2017-2018-valeant-pharmaceuticals-vrx-new-york-exchange-nyse-tsx-toronto-sobeys-safeway-loblaws-grocery-price-shopping-undervalued-overprice-underprice-earnings-book-value-drugs.png" title="undervalued stocks 2016 2017 valeant pharma sobeys empire companies bank scotland" /></a></div>
Although the specifics regarding Valeant's problems won't be aired out until the company releases it's 10-k annual report in April of 2016, it's safe to say the stock has borne the full brunt of investor scrutiny <b>(high institutional ownership has been a factor</b>). The biggest risks here on out are revenue growth, write-offs, and lawsuits - but even in a worst case scenario there is no way these three will severely impair earnings for two or more quarters. <u>Valeant continues to own a number of game changing drugs and products - a non-ownership relationship with Philidor doesn't change that !</u><br />
<br />
revenue stream remains strong this will be key in keeping operating costs per unit within reasonable levels.<br />
<br />
- xifaxan is approved<br />
- diversity of portfolio<br />
- global exposure - problems in the USA do not affect Valeant's ability to affect/control prices in other countries.<br />
- sales in China since 2013<br />
- ranks high among diversified companies<br />
<br />
<h2>
<span style="font-size: large;">Sobeys tsx:EMP.A</span></h2>
<br />
The large quarterly write-off related to the Safeway assets should be seen as a one time occurrence; the affect on future earnings is being exaggerated. This makes it a stock to watch in the second half of the year.<br />
<br />
A recovery in the price of oil (will average $45 this year and <a href="http://www.reuters.com/article/us-research-crude-standardchartered-idUSKCN0VO15S">$72 in 2017</a>) will be a boost to Alberta's economy - <u>big Canadian companies have been able to withstand volatility more than shale companies south of the border/rig count down in USA = less oil glut in North America = more opportunity for Canadian oil price to close gap with WTI</u>. Since acquiring Safeway, Sobeys has been the number one grocery chain in Alberta. For the first three months of 2016 <span style="font-size: x-small;">calendar year</span> same store sales +0.4% chain-wide despite being up <a href="http://business.financialpost.com/news/retail-marketing/troubled-safeway-acquisition-by-sobeys-slams-empire-with-1-36-billion-loss">+2.7%</a> in its base of eastern Canada. 2016 has thus far been an extremely volatile time for Alberta's economy (keystone pipeline rejection/oil price dropped to historic low/oil companies slashed capital spending); it is likely that the situation will improve later on this year and into next year.<br />
<br />
<blockquote class="tr_bq">
<ul>
<li>price/earnings ratio greatly undervalued versus alternative stocks Loblaw Companies, Metro Inc.</li>
</ul>
</blockquote>
<blockquote class="tr_bq">
<ul>
<li>book value per share is at a discount.</li>
</ul>
</blockquote>
<br />
<br />
<h2>
<span style="font-size: large;">Royal Bank of Scotland Group plc</span></h2>
<br />
Since coming off one of its worst earnings quarters in the bank's history the stock is off 30%. The write-offs which hampered the stock last year will become less of a burden in the future thanks to<br />
<br />
<blockquote class="tr_bq">
<ul>
<li>time deadline for claims related to mis-selling scandal (risky loans, payment protection insurance in US) now almost a decade old</li>
</ul>
</blockquote>
<blockquote class="tr_bq">
<ul>
<li><a href="http://www.ft.com/intl/cms/s/0/d0444e36-c4c9-11e5-b3b1-7b2481276e45.html#axzz44IVcQTm1">1.5 billion pounds</a> of the latest write-down relate to a settlement with the US Federal Housing Agency for mis-selling of mortgage backed securities</li>
</ul>
</blockquote>
so expect these write-downs to become smaller over the next 1-2 years which will allow the bank to return to profitability - <u>and perhaps even start paying a dividend</u>.<br />
<br />
Risk is not a major factor - the bank is 73% backed by the British government.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-16652477538588325622016-02-29T06:16:00.003-08:002016-02-29T06:27:20.878-08:00Seller Beware China Taking Over companies foreign takeovers technology ChinaChem, Whampoa, Syngenta, Haier, OmniVisionIn 2015 Chinese companies took over 103 American companies up from 100 the year before and way up from the average of 43 in the three years prior to that and 13 in the second half of the previous decade. Total overseas takeovers valued at <a href="http://www.cbsnews.com/news/currency-controls-arent-slowing-chinas-foreign-m-a/">$110 billion</a> last year up 86% from 2014, led by energy and utilities (worth $50 billion).<br />
There are now serious questions stateside with regards to the intentions of the Chinese - you see, the Chinese government has more direct control over its companies than any other government does theirs (total currency control gives their companies competitive advantage overseas). <u>China's leadership prioritizes all aspects of the economy with domestic issues taking precedence - this negatively affects <a href="http://www.eastwestcenter.org/system/tdf/private/ernst-semiconductors2015_0.pdf?file=1&type=node&id=35320">innovation </a>and a company's ability to operate freely overseas.</u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiyVOGr_ncQnMq3KaMPthgeGqGSAgZPlgPfnHJYkdHQJ5cTq7g-ahC5gmtFIu4UH0QPin08I-_4-6yVJ5MBmgrJUeJDbsmvLTOMLmtECuof_cud0NuGe6Yahp66PU8FLcc7ph4e8WZMCQ/s1600/overseas-takeovers-china-technology-advanced-priority-whampoa-telecommunications-uk-hua-capital-approval-national-security-america-mining-united-states-companies-takeover-gold-dollar-stock-exchange-american-semiconductor.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="overseas takeovers, china takeovers, whampoa takeover, hua capital, regulatory approval, national security, united states, united kingdom takeover, gold, us dollar, stock exchange, china imports, semiconductor industry, techonology, state owned, conflict, war, policy, regulatory approval, club med, entertainment, lionsgate, media, telecommunications, huawei, o2 arena, power grid, chemicals, tsingua, " border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiyVOGr_ncQnMq3KaMPthgeGqGSAgZPlgPfnHJYkdHQJ5cTq7g-ahC5gmtFIu4UH0QPin08I-_4-6yVJ5MBmgrJUeJDbsmvLTOMLmtECuof_cud0NuGe6Yahp66PU8FLcc7ph4e8WZMCQ/s1600/overseas-takeovers-china-technology-advanced-priority-whampoa-telecommunications-uk-hua-capital-approval-national-security-america-mining-united-states-companies-takeover-gold-dollar-stock-exchange-american-semiconductor.png" title="China takeovers united states approval european union syngenta chicago stock exchange chinachem o2 omnivision semiconductor micron state national security uk" /></a></div>
There's also the fear factor - it is not uncommon for Chinese executives to be given the death penalty for making harmful decisions even if they are made accidentally.<br />
<br />
Then of course there's the fact that <b>most major companies are indirectly owned by the government itself </b>- RDA Microelectronics is controlled by government owned Tsinghua Unigroup.<br />
<h2>
<span style="font-size: large;"><br />A Matter Of National Security</span></h2>
<br />
The takeovers now pose a direct threat to United States national security, particularly in the semiconductor industry where China holds a strategic advantage thanks to a series of takeovers which have gifted them advanced technology. <u>Even China acknowledges sectors involving industrial products and chemicals are critical its leader recently made it a priority to have 70% of these components made in China</u> - China uses 60% of the world's chips (China now has 10 of the world's <a href="http://www.reuters.com/article/us-china-semiconductor-idUSKBN0TR2OU20151208">50 biggest chip makers</a> up from one seven years ago that rise is coming through takevers, not home grown innovation).<br />
<br />
Silicon Valley has another problem here too - The world's other major semiconductor producer is Taiwan, a territory that China wants more control over.<br />
<br />
it's not just the technology industry that China's after either - already in 2016 Chinese companies have taken over<br />
1) Europe's Monsanto - Syngenta the world's leader in the manufacture of insecticides fungicides and herbicides <a href="http://www.nytimes.com/2015/08/27/business/dealbook/monsanto-abandons-47-billion-takeover-bid-for-syngenta.html">bought by ChinaChem</a> for <a href="http://www.rsc.org/chemistryworld/2016/02/chemchina-syngenta-takeover-bid">$43 billion</a> after the <a href="http://www.nytimes.com/2015/08/27/business/dealbook/monsanto-abandons-47-billion-takeover-bid-for-syngenta.html">Monstanto deal</a> was scrapped<br />
<br />
2) OmniVision Technologies a maker of advanced chips used in smartphones and cameras. bought by Hua Capital Management for $1.9 billion.<br />
<br />
3) Foxconn <a href="http://recode.net/2016/02/25/sharp-accepts-foxconns-6-2-billion-takeover-bid/">$6.4 billion</a> takeover of Sharp makes Foxconn less reliant on Apple for its business.<br />
<br />
4) Chicago Stock Exchange says it's being sold to Chongqing Casin Enterprise Group for <a href="http://www.bloomberg.com/news/articles/2016-02-05/chicago-stock-exchange-says-it-s-selling-to-chinese-led-group">$100 million</a> gives Chinese company access to the US equity market and the potential to take trades away from the other big two Nyse and Nasdaq (by listing new stocks or versions with lower stock prices).<br />
<br />
5) Hong Kong's Hutchison Whampoa becomes UK's largest cellphone plan service provider after basically receiving approval for O2 - the European Union rejected UK concerns regarding the deal (since O2 was operated by Telefonica a non UK but European company) nullifying the need for <a href="http://uk.reuters.com/article/uk-eu-telefonica-m-a-ckh-holdings-idUKKBN0TN11820151204">regulatory approval</a>.<br />
<br />
6) Just this month China's Haier takes over General Electric's applicance unit for <a href="http://www.wsj.com/articles/chinas-haier-to-buy-ge-appliance-business-for-5-4-billion-1452845661">$5.4 billion</a> Haier immediately becomes a global player thanks to the deal. Quingdao a state owned enterprise now runs the show !<br />
<br />
then of course there were other pivotal deals made within the last two years such as Lenovo's purchase of Motorola making it the world's number three player in the smartphone market - this doesn't even take into account <u>Huawei, the world's largest telecommunications equipment maker</u> that just launched its own smartphone <a href="http://www.telegraph.co.uk/technology/mobile-phones/11832046/Chinese-smartphone-makers-plan-world-domination.html">the Honor</a> which is already becoming popular in the UK and the Huawei Y3, the <a href="http://www.techtimes.com/articles/103375/20151106/meet-the-huawei-y3-the-cheapest-smartphone-in-the-uk.htm">cheapest</a> smartphone in the UK<br />
<br />
February 2016 : <a href="http://www.bbc.com/news/technology-35467800">Xiaomi</a> to start selling smartphones in the United States for first time.<br />
<br />
<h4>
<span style="font-size: large;">United States Losing Companies Not Just To China</span></h4>
<br />
Biggest Insurer <b>Chubb Corporation</b> <u>uses Ace Limited Takeover to form Chubb Limited a new <b>Switzerland based company</b></u>. That means the United States lost Aon and Chubb to Europe in just two years !<br />
<a name='more'></a><br />
<br />
<h4>
<span style="font-size: large;">Gold - Don't Buy Into The Hype At Least For Now</span></h4>
<br />
<ul>
<li>US dollar decline makes gold cheaper in other currencies - if the US dollar strengthens then the price for foreigners in foreign currencies will remain relatively unchanged because a stronger dollar is correlated with lower gold price.</li>
<li>China gold imports from Hong Kong down 84%</li>
<li>Gold to silver ratio is still very high - if we were in midst of a bull market the ratio would have contracted</li>
<li>Despite 17% rally in prices to start the year three days ago major bank paribas reiterated its position that gold will go below $1000 later this year.</li>
<li>goldman sachs says price will end 2016 near the <a href="http://www.theweek.co.uk/gold-price/61682/gold-price-holds-at-higher-level-despite-dip">$1000</a> level.</li>
<li>more rate hikes from the fed are inevitable and that will push gold down. </li>
</ul>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-38022486501237739662016-01-31T14:26:00.000-08:002016-01-31T14:36:49.134-08:00The Canadian Petro Dollar & Alberta Petroleum Industry Oil PriceThe first month of 2016 turned out to be quite harsh for the Canadian dollar and those who use it, giving even more meaning to its pseudonym "the loonie".<br />
Unlike the US Dollar which is riding high at the expense of nearly every other currency, the rate given for the Canadian (and Russia) version dipped to just under 68 cents breaking 25+ year lows (<u>early 1990's was the last time the currency was anywhere close to current levels</u>).<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBKhNJvuYhLLZUs6pRNpk3sewBShlpPNIMhsSvGY75IkUOZaG6x-uCVZ5i0fcIj5Gzif8SFFWXRWB4k4GaCb3BDg3HHl8iQBgfoJlm0GGRmXBhXXaZXv-0L87cTnA3h_1T7Kknb3UR0e4/s1600/petroleum-industry-oil-prices-twitter-takeover-costco-canada-canadian-dollar-petro-iran-russia-wcs-brent-crude-production-analysis-charts.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="petro dollar, canadian dollar, oil price, chart, oil companies, costco canada, same store sales, petroleum industry, gas price," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBKhNJvuYhLLZUs6pRNpk3sewBShlpPNIMhsSvGY75IkUOZaG6x-uCVZ5i0fcIj5Gzif8SFFWXRWB4k4GaCb3BDg3HHl8iQBgfoJlm0GGRmXBhXXaZXv-0L87cTnA3h_1T7Kknb3UR0e4/s1600/petroleum-industry-oil-prices-twitter-takeover-costco-canada-canadian-dollar-petro-iran-russia-wcs-brent-crude-production-analysis-charts.png" title="investing news wall street stocks oil price twitter takeover acquisitions companies costco iran gas price russia war sanctions" /></a></div>
You might ask: <b>why is there such a strong correlation between the loonie and the oil price</b> ? and <b>why doesn't the US dollar share that relationship to oil all things considered. </b><br />
<br />
ExxonMobil XOM, Chevron Corporation CVX are two of America's largest companies; oil companies represent 6% of the nasdaq 500; 3 of the 5 highest yieilding s&p 500 stocks are oil companies; United States oil production now ranks second behind Saudi Arabia.<br />
<br />
<h4>
look no futher than gdp vs the petroleum industry</h4>
Canada may produce less oil than the United States but its economy is nine times smaller and that makes it more dependent on the commodity (7% of gdp directly - tens of billions of dollars in capital expenditures by big oil which for the last five years fueled all of the growth in the only job-creating provinces of Alberta, Saskatchewan). <u>Also note that the USA only recently started exporting oil abroad - Canada exports nearly all of its oil to the United States thanks to a lack of oil refineries out west</u> (Canada's biggest refinery is on the east coast and there are currently no pipelines going west to east).<br />
Another thing to consider is the quality of oil that Canada produces. Canadian oil is more like tar - it requires heavy processing before it can even be used by refineries. This adds costs to usage and makes it less attractive to potential buyers.<br />
<br />
<h2>
<span style="font-size: large;">What was the perfect set of conditions stateside turned out to be the perfect storm for Canadians</span></h2>
<br />
While Americans were being spoiled with 10 cents per litre gas price, Canadians faced rapid inflation thanks to their dependancy on the US for food (<a href="http://www.naturalnews.com/052749_food_inflation_consumer_goods_prices_Rising.html">$8</a> cauliflower was commonplace).<br />
<h4>
<br />Costco Conquers Canada</h4>
<br />
According to the most recent results out of Costco Canada, same store sales are up by a record 9% twice what it is stateside and triple that reported by Canadian grocery leaders Loblaw Companies and Sobeys.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-53247054752800683262015-12-30T05:10:00.001-08:002015-12-30T05:10:17.943-08:00The Oil Price: Noone Really Knows What's Going On; Russia economic growth usa oil oversupply opec reportJust two months ago, the World Bank estimated in its <a href="http://knoema.com/yxptpab/crude-oil-price-forecast-long-term-2015-to-2025-data-and-charts">commodity forecast report</a> that the price of crude oil will average $51.4 per barrel in 2016, virtually unchanged from the average price last year ($52.5), but since then oil has fallen all the way down to $30 with no bottom in sight.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-0HKDjpjE4Tk8GCjQjHRULo1Gz9tuZVBpcNn3VUo2LQtB9tfOJWWLIhwSfrHYQuGzkwHgGZ6tF1qkHSTJUX7ZbVLIa-q8hFbGWZ0mmUxg4tXDTBCgfUogYhJBfCFNtxVuRWWDZ2-gdsw/s1600/oil-price-crude-wti-west-texas-brent-petroleum-prices-calgary-texas-oil-sands-alberta-middle-east-russia-peak-europe-wcs-saudi-aramco-houston.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="oil price, russia economy, oil, petroleum, natural gas, price forecast, index, middle east economy, oil companies, oil production, peak oil, arab league, economy, usa shale, north dakota shale, oil exploration, light crude, heavy oil, economic growth, growth in africa, african oil demand, population growth, opec, world bank report, oil oversupply" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-0HKDjpjE4Tk8GCjQjHRULo1Gz9tuZVBpcNn3VUo2LQtB9tfOJWWLIhwSfrHYQuGzkwHgGZ6tF1qkHSTJUX7ZbVLIa-q8hFbGWZ0mmUxg4tXDTBCgfUogYhJBfCFNtxVuRWWDZ2-gdsw/s1600/oil-price-crude-wti-west-texas-brent-petroleum-prices-calgary-texas-oil-sands-alberta-middle-east-russia-peak-europe-wcs-saudi-aramco-houston.png" title="oil price demand production oversupply united states europe brent benchmark wti russia war middle east decline population growth petroleum exploration oversupply oil gas prices wcs canadian" /></a></div>
Just this month the price reached an 11 year low for the third session in a row ($36), despite positive news regarding US supply (stockpile down -5.8m barrels vs +1.1m estimate). The price was as high as <a href="http://www.theweek.co.uk/oil-price/60838/oil-price-does-benchmark-parity-mark-the-turning-point-in-slump">$110</a> as recently as 2014 but $30 oil was not uncommon in the 1990's and early 2000's.<br />
<br />
Now Opec which represents a third of the world's oil output, is coming out and saying that improved overall demand will lead to a recovery in the price (<a href="http://www.bbc.com/news/world-middle-east-35166467">$70 by 2020</a>).<br />
<br />
And Russia - the world's second largest producer - is saying it doesn't expect oil prices to recover beyond $30 in 2016 which says a lot coming from a nation that loses <a href="http://www.bbc.com/news/business-29643612">$2 billion</a> in revenues for every dollar decline. <br />
<br />
<blockquote class="tr_bq">
<b><u>My opinion - Oil prices will swing wildly in both directions in the upcoming years so prepare accordingly. However peak oil is not the issue.</u></b></blockquote>
<blockquote class="tr_bq">
this opinion is based on</blockquote>
<br />
<ul>
<li>The USA oil oversupply cannot continue especially at current prices - most oil production increases in the US are attributable to North Dakota shale exploration the pace of which cannot continue at current prices.</li>
<li>New Canadian pipelines (Energy East Pipeline will allow Canada to fully utilize refinery capacity in New Brunswick / Northern Gateway Pipeline / others) will permanently lower glut of supply in US North Western PADD regions).</li>
<li>Higher oil exploration costs in general as tradition sources dwindle (shifts from light crude -> heavy oil which requires more expensive processing).</li>
<li><b>However</b></li>
<li>in much of the world the infrastructure and technology to utilize renewable sources of energy is not yet in place or too expensive to implement. Furthermore, it is those parts of the world where most of the population and economic growth is happening (Africa, India, Economy of the Arab League).</li>
</ul>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-5519207494227560462015-11-30T06:59:00.001-08:002015-11-30T07:27:37.347-08:00Platinum Gold Ratio Just Breached 20 Year Low 0.78 Catalytic Demand Price South Africa JewelryThe recent dive in platinum prices is forcing miners to turn to shallow, highly mechanized <a href="http://www.wsj.com/articles/south-africas-platinum-miners-start-over-1439428175">new mines</a>. <u>"65% of South Africa’s platinum operations are unprofitable at current prices"</u>. Making matters worse is the price of electricity - up threefold since 2008. In 2014 South African platinum production dropped 10% to less than four million ounces - by comparison the country produced 4.8 million ounces in 2011. <br />
<br />
But industry demand remains strong having eclipsed eight million ounces last year for just the second time in history, and with South Africa being home to 95% of global reserves, production issues in the country will swing supply/demand in the wrong direction in upcoming years.<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFM3IPCHlCB9njXCpd3NyW_xoJAcbpKPQCpuT5DTjxst_4L0EvlkExtW5Es3dhsXDfZ6WAQGNMivpAyp2-MXzbTEUlXURon4cfe9lt7L0dRhhdVK7eoKiMsdnazhMgYbwAsq-iiiV5wiA/s1600/platinum-investment-demand-autocat-catalygic-converter-gold-ratio-trend-analyst.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="south africa, platinum demand, pt, platinum mining, mining indutry, platinum gold ratio, platinum ratio, gold ratio, price ratio, platinum prices, metals, analyst, unprofitable, shallow mining, robotic, jewelry, jewellery, industry" border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFM3IPCHlCB9njXCpd3NyW_xoJAcbpKPQCpuT5DTjxst_4L0EvlkExtW5Es3dhsXDfZ6WAQGNMivpAyp2-MXzbTEUlXURon4cfe9lt7L0dRhhdVK7eoKiMsdnazhMgYbwAsq-iiiV5wiA/s640/platinum-investment-demand-autocat-catalygic-converter-gold-ratio-trend-analyst.png" title="platinum demand platinum production mines south africa zimbabwe prices gold pt ratio silver mining metals industry, economic impact electricity wages strike workers plants shallow. gold replacement, jewelry demand," width="339" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFM3IPCHlCB9njXCpd3NyW_xoJAcbpKPQCpuT5DTjxst_4L0EvlkExtW5Es3dhsXDfZ6WAQGNMivpAyp2-MXzbTEUlXURon4cfe9lt7L0dRhhdVK7eoKiMsdnazhMgYbwAsq-iiiV5wiA/s1600/platinum-investment-demand-autocat-catalygic-converter-gold-ratio-trend-analyst.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;">platinum versus gold</a></div>
<blockquote class="tr_bq">
Demand - platinum is more widely used industrially (catalytic/automotive as well as laboratory equipment)</blockquote>
<blockquote class="tr_bq">
Supply - depends more on recycling than any other metal - 2.1 vs 5.7 million ounces (total demand ~ 8M ounces per year). But there are concerns over production - demand for platinum is known to fall during times of economic uncertainty which is more true today than at any other time in past fifty years. Volkswagen diesel scandal is also weighing down prices - diesel vehicles may not be as popular in the future meaning less demand for catalytic converters - which account for 40% of platinum demand.</blockquote>
<br />
Just last month an HSBC metals analyst said he expects "<a href="http://www.bloomberg.com/news/articles/2015-10-16/rare-platinum-discount-to-gold-inspires-bulls-seeing-slump-s-end">platinum to trade above gold next year</a>" A discounted platinum price will boost jewelry demand allowing it to take market share away from gold.<br />
<br />
<br />
<b>Analysts see platinum at $1150 in 2016, $1300 in 2018.</b>north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-44412871649182649032015-10-31T15:58:00.001-07:002015-10-31T16:23:34.736-07:00Real Estate Investing Advice Buying Land Opportunities in Canada foreclosures discounted propertiesGetting approved for a mortgage in Canada isn't as easy as it used to be. There are a number of reasons for this<br />
<br />
<ul>
<li>lower incomes and less job security with the majority of new jobs being in self-employment </li>
<li>lending institutions playing it safe by choosing to sit on cash rather than lending it out</li>
<li>new mortgage rules that require from prospective borrowers a 20% down payment</li>
<li>shorter amortization period</li>
</ul>
<br />
this is forcing middle class buyers out of the market.<br />
<br />
<h2>
Let's take a look at some of the properties currently up for sale their advantages and risk exposure</h2>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJlVX4C8A1Fy4SBid87crU3AINQrK0RUKhQEdmyvgCqsFbheyuz6rw5LHsqR72zh_Tap3S8clBkyHnMcuNoauTyemHEKFpOTR5njDPu9bIoIpVGo6CiN9Q_PkB5tW0esgDiaQle5jAxFI/s1600/real-state-investment-advice-invest-in-canada-no-mortgage-interest-rate-cheap-land-property-mistakes-wise-smart-assessment-rent-duplex-size-area-garage-risk-reward.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="property for sale, cheap land, land for sale, canada, real estate, investment advice, real estate investing, invest, canadian mortgage, loans, properties for sale, quebec, rent, duplex" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJlVX4C8A1Fy4SBid87crU3AINQrK0RUKhQEdmyvgCqsFbheyuz6rw5LHsqR72zh_Tap3S8clBkyHnMcuNoauTyemHEKFpOTR5njDPu9bIoIpVGo6CiN9Q_PkB5tW0esgDiaQle5jAxFI/s1600/real-state-investment-advice-invest-in-canada-no-mortgage-interest-rate-cheap-land-property-mistakes-wise-smart-assessment-rent-duplex-size-area-garage-risk-reward.png" title="real estate investing investment advice blentzas canada cheap properties affordable mistakes offers mls realty house for sale garage property assessment" /></a></div>
<h4>
Also to consider : the changing attitudes of young people </h4>
<blockquote class="tr_bq">
the next generation is putting off marriage until well into their 30's; they're also moving to the city choosing to rent rather than buy, and even forgoing the option to take over the family home when their parents decide it's too big for them. </blockquote>
<blockquote class="tr_bq">
This, in my opinion, has created an opportunity for smart investors - people who are able to pay for something with cash !</blockquote>
<br />
Buying with cash is impossible ? think again - there are a number of properties in Canada that can be had for under $20,000; <b><u>so if you can buy a car you can invest in real estate - yes, even in Canada :)</u></b><br />
<br />
<h2>
Quebec Real Estate Market A Wise Buy</h2>
<br />
With problems in the oil (Alberta) and manufacturing (Ontario) sectors investors are shifting their focus to Canada's other major market : Quebec - where the population keeps growing (thanks to a thriving student population driven by what is arguably Canada best all around university McGill) real estate remains cheap - yes rental income is lower than than it is in Toronto and even Ottawa but high demand means very low vacancy rates. <br />
<br />
Quebec City is proving to be a great option for investors<br />
median income in Quebec City is growing at a healthy pace - since 2009 it has surpassed Halifax, Hamilton, Kitchener, Kingston, has kept pace with Sudbury and is now tied with Victoria.<br />
<a name='more'></a><br />
<h2>
things to focus on when buying property</h2>
<br />
<ul>
<li>cheap land</li>
<ul>
<li>the more land on the property the better</li>
</ul>
<li>deals </li>
<ul>
<li>discount on assessment value </li>
</ul>
<li>sale price</li>
<ul>
<li>the longer the property is listed for the better the price gets (20-30% discounted properties, offers)</li>
</ul>
<li>rental units offer great rate of return on property investment</li>
<li>be aware of mortgage rules concerning zoning laws</li>
<li>American buyers : know the risks and rewards associated with buying foreclosures</li>
</ul>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com1tag:blogger.com,1999:blog-2966903902007384480.post-59849001845861686672015-09-30T01:44:00.003-07:002015-09-30T01:44:55.559-07:00Why Gold Will Outperform Silver During the Next Economic Crisis price ratio<span style="font-family: Georgia, Times New Roman, serif;">I</span>n times of crises historically, precious metals have been the preferred store of wealth. Even though silver does have intrinsic value; by being the best store of value a preference for gold inevitably develops - this is especially true if the crisis leads to massive inflation and the rise of radical groups both of which occurred in weimar Germany and tsarist Russia.<br />
<br />
<blockquote class="tr_bq" style="text-align: left;">
There are benefits to owning <a href="http://grmike.blogspot.com/2011/08/risks-assosicated-with-gold-exchange.html">physical gold</a> but if you're going to buy stocks consider these <a href="http://grmike.blogspot.com/2011/08/investing-in-gold-and-silver-physical.html">precious metal companies</a></blockquote>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiA7vfSBvPIB11e3X9P8KO4KbCqYwbcBmMmUTrNjFp-ueZENCb1XgnO5-AvqiVCywFKwb-tNqMVPu_oiUliROfrJynWCKNdA9HhI5XWgmXraU8LiXhRhdAhsfkZL3qqcIyaY68iN5UtJxo/s1600/gold-silver-ratio-hyperinflation-global-trade-isis-confiscation-of-wealth-us-dollar-america-global-economic-crisis-impact-effect-stock-market-trade-isis-debt-levels-central-banks-weimar-germany-russia-war-price-trade-wealth.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="gold outperform silver, inflation, hyperinflation, us dollar, china trade, global crisis, economic crisis, gold price, silver price, gold silver ratio, weimar germany, future gold price, international trade, partners, store of value, central banks, global trade, russia, world bank, money supply, wealth, petro dollar, oil, confiscation, protection, international trade, central banks," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiA7vfSBvPIB11e3X9P8KO4KbCqYwbcBmMmUTrNjFp-ueZENCb1XgnO5-AvqiVCywFKwb-tNqMVPu_oiUliROfrJynWCKNdA9HhI5XWgmXraU8LiXhRhdAhsfkZL3qqcIyaY68iN5UtJxo/s1600/gold-silver-ratio-hyperinflation-global-trade-isis-confiscation-of-wealth-us-dollar-america-global-economic-crisis-impact-effect-stock-market-trade-isis-debt-levels-central-banks-weimar-germany-russia-war-price-trade-wealth.png" title="confiscation of wealth gold silver ratio outperform silver economic crisis future us dollar hyperinflation international trade" /></a></div>
<h2>
Isis, Greece and the confiscation of wealth</h2>
<br />
As has happened in Cyprus, would've happened happened in Greece if the 2015 summer bailout didn't materialize and is happening in Iraq and other Isis strongholds, the confiscation of wealth makes portability important. At 75 the current <a href="http://grmike.blogspot.com/2011/08/trends-in-gold-to-silver-ratio-point-to_25.html">gold silver ratio</a> gives gold the upper hand - being able to move your wealth more easily makes it less likely to be discovered and thus confiscated.<br />
<br />
<h2>
Hyperinflation</h2>
<br />
if the US dollar - which is by far the world's most relied upon currency - is ever forced to prove its value the way every other currency does (ie the money supply, possibility of insolvency/national debt levels) - rapid inflation the likes of which has never been seen in history definitely could happen. <br />
<br />
<u>US dollar losing precedence in international trade</u><br />
<br />
- in 2006 127 countries called the United States their largest <a href="https://www.rt.com/business/china-us-largest-trading-country-908/">trading partner</a> .. that number has since fallen to 76. In just five years <a href="http://grmike.blogspot.com/2015/06/oil-production-usa-beats-russia-greece.html">China</a> displaced the US in 51 nations.<br />
<br />
- When forming new economic partnerships with countries China is emphasizing the need to bypass the dollar. Traditionally all trade is done first by converting into dollars, but China has developed new ways of avoiding this. <br />
<br />
<b>America's shaky relationship with Saudi Arabia as of late will affect the petro dollar 's unique status.</b><br />
<br />
<h2>
International trade by <a href="http://grmike.blogspot.com/2011/09/since-2001-price-of-gold-is-up-600.html">central banks</a></h2>
<br />
<br />
<a name='more'></a>Gold is the only precious metal that <a href="http://grmike.blogspot.com/2013/04/gold-demand-remains-strong-despite-dip.html">central banks</a> keep in storage. If the next crisis is a global one central banks could become the main driver of prices, with gold being the focal point.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com1tag:blogger.com,1999:blog-2966903902007384480.post-6028502736421870462015-08-30T23:24:00.003-07:002015-08-31T00:20:01.629-07:00Greek Companies To Invest In national bank of greece nyse NBG OPAP rebound stocksGreece securing new bailout money stabilizes an economy that was free falling for the better part of 2015. That creates investment opportunities - at least until September 2016 when all of the current deals expire.<br />
<br />
Greek bank stocks stand to benefit from recent developments. August 29 - Greece National Bank Shareholders Approve Recapitalization Plan; August 11 - The New York Stock Exchange NYSE notified the bank that it must bring its market price back above $1.00 by February 2016.<br />
<br />
National Bank of Greece has the most upside but don't ignore the risks<br />
- in <a href="http://livingingreece.gr/2008/09/12/largest-companies-greece-2/">2008</a> TT Hellenic Postbank aka Greek Postal Savings Bank was one of the world's 2000 largest companies - in 2013 it was forced into liquidation.<br />
<br />
<h2>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM4DYeDw-M4Jnf8x-EheyA4iNnaekxS66OMZqWz44Df4ogPEo56cx8UINiL-wp1H0WCQupWJIFU8s2Bhr063fQgmlu58ur3pRFuwkCMKDF4Zqapz1t0VjmD2mQDdjSpw3R9mS76eibsQ0/s1600/greek-companies-financial-collapse-bailout-european-union-taxpayers-money-stocks-banks-bailout-rebound-prices-nyse-national-bank-greece-opap-tourism-economic-flexibility-risky-investment-reward-hellas-oil.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="greek companies, greece, financial collapse, greek bailout, european union, eu, taxpayers, money, stocks, bank bailout, rebound prices, nyse, adr, national bank of greece, opap, european gaming companies, tourism, economic flexibility, risky, too big to fail," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM4DYeDw-M4Jnf8x-EheyA4iNnaekxS66OMZqWz44Df4ogPEo56cx8UINiL-wp1H0WCQupWJIFU8s2Bhr063fQgmlu58ur3pRFuwkCMKDF4Zqapz1t0VjmD2mQDdjSpw3R9mS76eibsQ0/s1600/greek-companies-financial-collapse-bailout-european-union-taxpayers-money-stocks-banks-bailout-rebound-prices-nyse-national-bank-greece-opap-tourism-economic-flexibility-risky-investment-reward-hellas-oil.png" title="Greek Companies Investors Are Buying national bank of greece nbg nyse motor oil hellas opap gaming greece football tourism hotels investment opportunities in europe eurozone rebound economy" /></a></div>
Motor Oil Hellas (FRA:MHZ)</h2>
<br />
- best performing Greek stock since 2012 (price: 3.80->9.0)<br />
- since 2008 is the only 'new' Greece-based company added to the Forbes Global 2000 list.<br />
- least risky of Greece's eight major companies (five are banks most of which were on the verge of collapsing on the eve of the last bailout deal).<br />
- oil refineries stand to benefit from low oil prices (takes months if not years for gas pump prices to reflect lower oil price). crack spread remains stable.<br />
<br />
<h2>
OPAP SA Greek Organization Football OTCMKTS:GOFPY</h2>
<h3>
gaming stocks</h3>
<br />
- weathered the global financial collapse in 2007/2008 fairly well (ranked 1009 on the Forbes Global 2000 list in 2008 before eventually falling out).<br />
- worst performing major Greek company stock since new bailout package announced (end of June price: 3.5 -> 4.5 August 14 -> 3.75 August 31)<br />
- Greeks voted to stay in the EU - that benefits the tourism industry which OPAP business is tied to.<br />
<br />
<h2>
National Bank of Greece NYSE:NBG</h2>
<h3>
<span style="font-size: small;">guaranteed access to EU taxpayers money when facing collapse, bank bailout</span></h3>
<br />
yes, this is a very risky investment but the reward could be substantial. The bank's market capitalization has been cut in half over the last 12 months ($4.2 billion -> $2.1 billion). Despite ongoing financial problems in Greece, between 2010 to 2013 the stock price spent most of the time oscillating between $25 and $35; It's now at 67 cents.<br />
Keep in mind this has always been Greece's largest company - that takes away a bit of the risk since even in dire circumstances this is one of the first companies that the government will step in to support. Consider it Greece's version of a bank that's too big to fail.<br />
<br />
- revenue is about the same as Greece's #2 and #3 banks combined<br />
- since 2008 Forbes has routinely called it Greece's top company<br />
- despite new bailout money stock price continued to plummet - to me this is a result of a wait-and-see approach by investors; institutional ownership only 3%.<br />
- End of August: new European Union rule tied to the new Greece deal gives greater <a href="http://www.bidnessetc.com/51251-national-bank-of-greece-adr-nbg-greek-banks-to-be-rescued/">economic flexibility</a> to Greece allows it to tap into additional EU funds in order to bailout the most important banks - even going as far as to consider tapping into taxpayer funds from throughout the EU.<br />
<br />
Another reason to expect a rebound in the stock price:<br />
The <a href="http://www.streetinsider.com/Corporate+News/National+Bank+of+Greece+(NBG)+Announces+Receipt+of+NYSE+Listing+Notification/10838391.html">NYSE requirement</a> that ADS share prices of stocks listed at the exchange be above $1.00. NYSE is threatening to delist the stock unless the company gets the price back up from $0.67 to to $1 (it has six months to do this - expiry date is February 11, 2016).<br />
<br />north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com1tag:blogger.com,1999:blog-2966903902007384480.post-67716863006101152772015-07-31T07:17:00.001-07:002015-07-31T07:51:15.227-07:00Israeli & Canadian Pharmaceutical Companies Leapfrog their way to the top Teva, Valeant VRX game changing drugs msAttention investors: take a long hard look at <b>Teva Pharmaceutical Industries of Jerusalem</b> and <b>Valeant Pharmaceutricals of Montreal</b> - <b>you won't regret it !</b><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSb84sTrdYebqAoG8X6om-BxZDcQEgHRwUWahJh3P0xpyC7UHkjTqZTJwK1yC-ACz4K7mnOhz3Ur-ETYpx6Qz-spPpf0y1lJ2AbCqyhS_RGBn82V-1XFjWH9jnoVyBEe13klvsu1VOqII/s1600/leading-pharmaceutical-companies-brands-naproxen-copaxone-ms-sclerosis-xifaxan-valeant-pharma-international-teva-israel-companies-jewish-canada-canadian-economy-cesamet-kinerase-efudix-investment-revenue-nyse-earnings.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="pharmaceutical companies, pharmacies, industries, drug therapy, botox, skin, salix pharmaceuticals, ms treatment, xifaxan, salix pharmaceuticals, valeant pharmaceuticals, teva allergan, reaction, pharmaceuticals, drugs, ms, multiple sclerosis, muscle, pain management, subsidiaries, divisions, therapy," border="0" height="267" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSb84sTrdYebqAoG8X6om-BxZDcQEgHRwUWahJh3P0xpyC7UHkjTqZTJwK1yC-ACz4K7mnOhz3Ur-ETYpx6Qz-spPpf0y1lJ2AbCqyhS_RGBn82V-1XFjWH9jnoVyBEe13klvsu1VOqII/s400/leading-pharmaceutical-companies-brands-naproxen-copaxone-ms-sclerosis-xifaxan-valeant-pharma-international-teva-israel-companies-jewish-canada-canadian-economy-cesamet-kinerase-efudix-investment-revenue-nyse-earnings.png" title="leading pharmaceutical companies xifaxan, salix pharmaceuticals, valeant pharmaceuticals, teva allergan, reaction, pharmaceuticals, drugs, ms, multiple sclerosis, muscle, pain management, subsidiaries, divisions, therapy, " width="400" /></a></div>
Just last week nyse:TEVA paid $40.4 billion for Allergan's nyse:AGN generic drug business giving the world's largest generic drug maker an even bigger international presence (Allergan was/is present in more than 100 countries).<br />
<br />
This also gives them <u>more leverage because more revenue spreads fixed costs over more units of output - which is important in the business of low margin generic drugs</u>. <br />
<br />
Though ms drug <b>Copaxone</b> faces increased competition from Novartis and Momenta among others, their proprietary brand continues to grow (last quarter both in terms of sales +12% = 50% of company profit and about a fifth of company revenue) and share of the market for MS prescriptions (31%) - thanks in part to more innovative ways of introducing the drug to patients (3X a week 40mg version vs 6X by competing brands). And don't forget about the over-the-counter products - Teva has hugely benefited from key partnerships with companies like Proctor and Gamble and even Canada's Life brand (Shoppers Drug Mart). For instance in Canada products include sea salt for baths.<br />
<br />
<blockquote class="tr_bq">
Another overlooked aspect of the company - it is <b>deeply rooted in Israel and has strong connections with Israeli universities</b> - this is key since these institutions are credited with having developed important drugs such as Copaxone and Azilect.</blockquote>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNMfcSLWlPeAPG-usz-oBqA_9NUZDv95lZYkHFHobDxoliPZDaE_DUwnnIi4OkNdfwAsX3n47P82nhZpAKslj42RyEuJVuK2PbQKQ2vzxqyuiJ0Ls9iJ15zeMhXGRfCmf4PsFD6XqGoUg/s1600/teva1.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNMfcSLWlPeAPG-usz-oBqA_9NUZDv95lZYkHFHobDxoliPZDaE_DUwnnIi4OkNdfwAsX3n47P82nhZpAKslj42RyEuJVuK2PbQKQ2vzxqyuiJ0Ls9iJ15zeMhXGRfCmf4PsFD6XqGoUg/s400/teva1.png" width="400" /></a></div>
<b>Financials</b> - Teva was doing well even before taking into considering recent acquisitions - in GAAP terms operating income and net income more than doubled last year despite revenue being stable. All major metrics have been stable since 2010 with non GAAP earnings per share up steadily : 4.54 in 2010, 4.97 in 2011, 5.01 in 2013 to 5.14 in 2014. <br />
<br />
<i><u>Teva - making Israel proud : The deal for Allergan is the biggest in Israel's corporate history !</u></i><br />
<br />
<h2>
Valeant Pharmaceuticals nyse: VRX - merging its way to the top one company at a time - acquiring game changing drugs</h2>
<br />
According to CEO Mike Pearson, Valeant remains focused on medium sized <a href="http://business.financialpost.com/investing/valeant-pharmaceuticals-international-incs-biggest-deal-yet-seen-as-a-bet-on-fda-decision-on-salixs-blockbuster-drug?__lsa=507d-c6ee">acquisitions</a> - this, despite the fact that the more recent deals have been game changing (Salix Pharmaceuticals ltd for $10.1 billion) and the tug-of-war for control of privately held botox maker Allergan plc.<br />
<br />
July 2015 - <b>Just this month Valeant took control of one of Egypt's leading drugmakers Amoun Pharmaceutical by taking over parent company Mercury Holdings ($800 million deal).</b><br />
<br />
<br />
<a name='more'></a>Positives<br />
<br />
<ul>
<li>Getting Xifaxan approval from the US FDA (treatment of irritable bowel syndrome).</li>
<li>Product diversity - portfolio is made up of hundreds of different drugs. Though as an entity the company formed in the 1990's the history of its predecessors goes back to 1960.</li>
<li> Acquisitions have truly been global - Medicis of Arizona ($2.6 billion), Natur Produkt of Russia ($163 million), Bausch and Lomb of New York ($10 billion), Precision Dermatology ($500 million), the list goes on.</li>
<li>Distribution partnership with Nestle (as of 2014).</li>
<li>Deal for Bausch and Lomb gave it entry into China (2013).</li>
</ul>
<br />
<blockquote class="tr_bq">
Seraphim's opinion - the company is among the most active in M&A and that will continue into the foreseeable future. An advantageous tax structure helps it do so as well as a board with an appetite for growing through mergers and acquisitions. They also hold the patent rights to important drugs (viral).</blockquote>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-79673636028245007372015-06-30T20:17:00.002-07:002015-06-30T20:17:41.505-07:00Oil Production USA Beats Russia, Greece Grexit Empowers China sea port Cosco 600428The USA recently became the <a href="http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy/review-by-energy-type/oil.html">largest</a> oil producer in the world, just barely nudging Russia out of first place at just under 10 million barrels per day - a 1.6 million bpd gain versus the previous year making it three consecutive years of 1m+ bpd annual growth in output. <u>Demand for oil from developed nations was down marginally by -1.2% but up elsewhere including China which experienced a 390 thousand bpd increase yoy.</u><br />
<strong>USA gaining energy independence !</strong> America now produces 90% of the energy it consumes. Energy imports as percent of GDP : 1% vs 3% in 2007.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMuU8eyhH4Sqo7DnTsrcmBkq8D-Pbt01NojI4sKE8fotKzy59HesKGcW7Fpt0rpPGfvCtJOvEMfKMKroHnG4EQp3FNIUXrPa1PNnuMjpOaNub31kynjDSsSAwZWxXHsPpIeLMevsmmHXY/s1600/grexit-eurozone-greece-deal-greek-russia-naval-base-ports-piraeus-china-sea-port-war-strategic-german-banks-usa-america-oil-production-energy-independence-food-prices-new-currency-financial-russias-interest.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="grexit, eurozone, greece deal, russia greece, naval bases, piraeus, greece china, china sea port, china war, german banks, usa oil production, energy independence, food prices, new currency, financial, russias interest," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMuU8eyhH4Sqo7DnTsrcmBkq8D-Pbt01NojI4sKE8fotKzy59HesKGcW7Fpt0rpPGfvCtJOvEMfKMKroHnG4EQp3FNIUXrPa1PNnuMjpOaNub31kynjDSsSAwZWxXHsPpIeLMevsmmHXY/s1600/grexit-eurozone-greece-deal-greek-russia-naval-base-ports-piraeus-china-sea-port-war-strategic-german-banks-usa-america-oil-production-energy-independence-food-prices-new-currency-financial-russias-interest.png" title="Greece grexit from eurozone, will lead to new financial money deals new currency with russia china bric nations, naval bases, port of piraeus in athens control, greece china, china sea port, china war," /></a></div>
<h2>
Consequences of a Greece Grexit from Eurozone</h2>
<br />
When Greece leaves the Eurozone any debt commitments it has to Eurozone entities will undoubtedly be scrapped and Europe will lose some €250 billion as Greece will for the first time have the green light to default. Germany's state owned KfW bank (aka Bankengruppe) will lose €15 billion, France's BNP Paribas (BNPQY) €700 million while Germany's Commerzbank (CRZBY), Deutsche Bank (DB) combine for €700 million. Credit Agricole (CA) remains heavily exposed with €3.5 billion euros owed to it by Greece. Societe Generale (SCGLY) is owed €300 million all corporate debt - that's down significantly from €3 billion just five years ago.<br />
In total €24 billion of the debt is held by German banks, with another €18.8 billion owing to private individuals and state institutions.<br />
The aid plan initially called for <a href="http://www.usatoday.com/story/news/world/2015/06/30/greece-eurozone-austerity-referendum/29499441/">€270 billion</a> to be provided to Greece - the money has been coming from the IMF, ECB and the European Commission's 19 Eurozone governments.<br />
According to the payment schedule Greece's next payment to the ECB is to be made on <a href="http://www.reuters.com/article/2015/01/05/eurozone-greece-banking-exposure-idUSL6N0UK1TY20150105">July 20</a>, 2015 in the amount of €3.9 billion<br />
<br />
<h2>
Russia, China stand to gain a significant edge in their battle with the West for strategic control of the sea<br />(chinese navy, china sea ports, greece china)</h2>
<ol>
<li>The Greek Merchant Navy controls 16.2% of the total merchant fleet worldwide. Greece ranks first in tankers and bulk carriers. Any deal for new funding from Russia or China's development bank would undoubtedly involve ports, vessels, and strategic sea routes.</li>
<li>Chinese shipping company Cosco Shipping Company Ltd (SHA:600428) already controls 2 of 3 shipping terminals at Greece's main port of Piraeus.<br />since Cosco took control of the port in 2007 (for €500 million) business has tripled - this directly benefits Athens, the country's economic center.</li>
<li>Greek prime minister recently met with Putin in Russia where he was rumored to have sought out a new Russia Greece deal . Russia has already secured new bases in Cyprus - bases in Greece which is home to Europe's largest sea ports and naval bases would obviously be in Russias interest. When Greece votes to exit the Eurozone it will only be a matter of time until the country embraces a new currency. This will have to result in closer ties with China since the IMF and ECB have already ruled out any future financial support to Greece.</li>
</ol>
<h4>
<span style="font-size: large;">Worldwide Food is Becoming More Expensive</span></h4>
Food prices in Turkey are now 20% higher than the world average - food prices in Nigeria are twice as high this year as compared to last year. In the United States poultry, eggs, and vegetable staples such as cauliflower have gone up in price - being nudged higher by the two year drought in California and the bird flu epidemic.<br />
<br />
<h4>
</h4>
<h4>
<span style="font-size: large;">Australia Gold Production at 11 Year High</span></h4>
<br />
Last year production totaled <a href="http://www.abc.net.au/news/2015-03-02/australian-gold-production-reaches-eleven-year-high/6273592">284 tonnes</a> +4% versus the previous year. Companies are adjusting to lower metal prices by increasing the grade of ore mined.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com1tag:blogger.com,1999:blog-2966903902007384480.post-35101245722028909942015-05-31T15:55:00.000-07:002015-05-31T16:51:08.023-07:00Alexion Pharmaceuticals Inc ALXN Organic Growth Potential Kanuma, Transforce Inc TFI a powerhouse trucking company acquisitions Alexion Pharmaceuticals (ALXN) is a global leader in the development and commercialization of transformative therapies for patients with rare diseases. Since taking over Synageva Biopharma (GEVA) the company now operates in more than 50 countries. <br />
<br />
Last year at this time Alexion was <a href="http://247wallst.com/healthcare-business/2014/01/14/ubs-has-nine-biotech-buyout-and-merger-candidates/">rumored</a> as a takeover target - today it is the one doing the takeovers !<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjk-MU2rRyQFV4dyATIYlKl34hLDfr_WIfErpaP31EP358Mr8hPXK9pCah5vMARj4YnMx1U76pKiTS4On-jJUtXpPvvQ6_K76CqwfyVXKvrl_DHd8R4LUYZCX3EyJ8WY7miFo_jKj4z998/s1600/transport-companies-trucking-eculizumab-rare-diseases-organic-growth-stocks-mergers-aquisitions-alexion-pharmaceuticals-alxn-market-leader-treatment-kanuma-genetic-mutations-shareholders-less-than-truckload.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="transport companies, trucking, eculizumab, rare diseases, organic growth stocks, enzyme replacement, mergers, aquisitions, mergers and acquisitions, alexion pharmaceuticals, alxn, market leader, rare, medical, medicine, ecoli, treatment, kanuma, genetic mutations, shareholders, cost savings, soliris," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjk-MU2rRyQFV4dyATIYlKl34hLDfr_WIfErpaP31EP358Mr8hPXK9pCah5vMARj4YnMx1U76pKiTS4On-jJUtXpPvvQ6_K76CqwfyVXKvrl_DHd8R4LUYZCX3EyJ8WY7miFo_jKj4z998/s1600/transport-companies-trucking-eculizumab-rare-diseases-organic-growth-stocks-mergers-aquisitions-alexion-pharmaceuticals-alxn-market-leader-treatment-kanuma-genetic-mutations-shareholders-less-than-truckload.png" title="soliris, kanuma, rare diseases and treatment options alexion pharmaceuticals eculizumab, transforce inc canadian trucking company growth potential" /></a></div>
<strong>ALXN experienced lots of organic growth during the past few years and that isn't expected to change with little to no competition</strong> (thanks in part to successful takeover bids for rivals Enobia and Synageva Biopharma Corp (GEVA). Also notable is that <u>the company has high institutional ownership (97%) meaning that many of its shareholders are leading investment firms.</u><br />
<br />
What is clear is this - the company is growing fast and no wonder<br />
<br />
<ul>
<li>it owns the patent rights to three of the hottest (and priciest) drugs on the market for rare diseases: Kanuma (treats LAL a life threatening disease caused by genetic mutations leading to liver and other tissue problems), Soliris ($2 billion in revenue last year just from this one drug) and Eculizumab. Its latest acquisition has eight other product candidates including one relating to enzyme replacement therapy for patients with MPS a genetic metabolic disease - 30 pre clinical programs in total.</li>
<li> recently initiated multinational trial of Eculizumab for prevention of delayed graft function.</li>
<li> is on an acquisitions spree ! and the takeovers are aggressive and that's leading to more successful bids.</li>
<li>June 2015 acquires Synageva for $8.4 billion</li>
<li>average price target set by the sixteen major equity research groups is <a href="http://www.dakotafinancialnews.com/alexion-pharmaceuticals-price-target-lowered-to-173-00-at-citigroup-inc-alxn/151246/">$210.07</a> or 28% higher than the stock is currently trading at.</li>
<li>price remains above the most conservative estimate of $173 set by Citigroup.</li>
<li>cost savings from acquisitions will allow it to spend more in the future </li>
<li>between June 2014 and March 2015 the company's cash and equivalents rose by 50% to $916.81 million with total debt down 40% to $45.5m and long term debt down to zero.</li>
<li>only drawback is that <u>there are dividends</u>.</li>
</ul>
<br />
<strong>latest financials</strong><br />
-- 1q2015 Alexion revenue of $600.3 million beats estimates ($594.4 million). Earnings were as expected ($1.28 vs $1.32 est).<br />
<h2>
</h2>
<h2>
<span style="font-size: large;">Montreal-based Transforce Inc (TSX:TFI) another growth stock</span></h2>
Canada's largest trucking company has grown into one of North America's three largest transport companies.<br />
<div>
notes</div>
<ul>
<li>significant growth stateside in just four years (key acquisitions include <strong>Dynamex, IE Miller, Concord Transport</strong>).</li>
<li><strong><u>May 20, 2015 - acquires US based </u></strong><a href="http://www.joc.com/trucking-logistics/ltl-shipping/transforce/canadas-transforce-buys-us-based-last-mile-delivery-company_20150520.html"><strong>Hazen Final Mile</strong></a><strong><u>, a last minute delivery company</u></strong>.</li>
<li>takeover of Contrans Group ($580 million, early 2015) makes TransForce a <a href="http://www.cbc.ca/news/business/transforce-secures-trucking-might-with-contrans-takeover-1.2718549">powerhouse</a> in Canada.</li>
<li>unlocking value from its waste management business presents unique opportunity for organic growth.</li>
</ul>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-87098911135452364332015-04-30T20:07:00.005-07:002015-04-30T20:41:48.198-07:00Increasing Oil Production in Canada Despite Price Plunge oil sands, China Revises Gold Reserves renminbiLike their Saudi Arabian counterparts Canadian oil producers appear to be concerned with maintaining their share of the market, even at the expense of earnings - At a time of record low realized prices, Canada exported a record 3.11 million barrels of oil in January - 13 per cent more than it did in January of last year, and 80% more than in 2010.<br />
Even with a collapse in oil prices Canadian oil production - driven by activity in the oilsands, is expected to increase by 150,000 bpd this year and by that same amount again next year. <span style="font-size: x-small;">Canadian Association of Petroleum Producers</span><br />
<br />
According to ARC Financial, the number of wells drilled in Western Canada will be down 50% this year as compared to last (5,300 vs 11,222). Though production keeps rising, companies remain burdened with higher than acceptable costs.<br />
- estimates suggest as many as <u>30,000 workers have lost jobs in Canada’s oil and gas industry since the downturn began last fall</u>.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3lDl7ytNV-Ml3uEIdwklOY3VE9PsTonDCqxLdKzoHYwVFdkcm_TpGq78hTtc4IyQJ2lEu-p6V4oTBAoQ64qVAPEqkSF_qqhUnBNN7tWGdoQI6EA0qSxVUOcg9bO_xAR9sF4jP03ZrRkM/s1600/china-reserves-renminbi-yuan-currency-swap-trading-foreign-reserves-usd-dollars-currencies-sterling-euro-uk-hong-kong-exchange-toronto-london-paris-africa-emerging-markets-central-bank-brazil-russia-rmb-holding-fiat-gold.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="china, china imports, yuan, renminbi, renminbi yuan, renminbi exchange, currency swap, currency reserves, foreign exchange, gold reserves, china reserves, china disclosure, africa, china gold, china gold reserves," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3lDl7ytNV-Ml3uEIdwklOY3VE9PsTonDCqxLdKzoHYwVFdkcm_TpGq78hTtc4IyQJ2lEu-p6V4oTBAoQ64qVAPEqkSF_qqhUnBNN7tWGdoQI6EA0qSxVUOcg9bO_xAR9sF4jP03ZrRkM/s1600/china-reserves-renminbi-yuan-currency-swap-trading-foreign-reserves-usd-dollars-currencies-sterling-euro-uk-hong-kong-exchange-toronto-london-paris-africa-emerging-markets-central-bank-brazil-russia-rmb-holding-fiat-gold.png" title="China Yuan Renminbi RMB currency swap countries gold reserves dislosure UK London Paris France Toronto, Hong Kong currencies central banks fx rate exchange" /></a></div>
<u>Keeping production up when oil prices are down is much easier for Iran and Saudi Arabia to do than it is for their western counterparts</u><br />
<ul>
<li>low-cost oil reserves in Saudi Arabia vs high cost reserves in Alberta (Alberta oil) and us shale (North Dakota shale)</li>
<li>Canada’s reserves may be as massive but they are much more expensive to extract from</li>
<li>This appears to have had more of an effect on producers south of the border (where shale exploration has officially stalled) than in Canada .. Canadian companies have huge cash reserves which they are they able to dip into when prices get too low .. and so they are able to fund core projects until new cost cutting measures take effect.</li>
</ul>
<h2>
<br /><span style="font-size: large;">According to the latest quarters as of May 2015 company earnings are way down - earnings losses mount in Canada</span></h2>
<br />
<strong>Suncor Energy Inc (SU) -</strong> 1Q15 $(341) million loss or 24 cents per share vs $1.485 billion or 101 per share in the previous year.<br />
Oil Sands operations production was 440,400 bbls/d in the first quarter of 2015, compared to 389,300 bbls/d in the prior year quarter, primarily due to minimal maintenance activities in the first quarter of 2015. Production highlights included 346,500 bbls/d of SCO due to strong upgrader reliability, and record production of 188,700 bbls/d at Firebag. Cash operating costs per barrel for Oil Sands operations decreased in the first quarter of 2015 to an average of $28.40 per barrel (bbl), compared to $35.60/bbl in the prior year quarter, due to increased production and lower costs as a result of lower natural gas prices,Suncor's share of Syncrude production of 35,200 bbls/d in the first quarter of 2015 remained comparable to the prior year quarter production of 35,100 bbls/d.<br />
<br />
<blockquote class="tr_bq">
<u>UK has lowered its tax rate on oil profits made in the North Sea ! At suncor this saved the company $406 million (62-> 50%).</u></blockquote>
<br />
<br />
<strong>Cenovus Energy Inc (CVE)</strong> - Oil Sands production is up 20% (to 144,000 bpd) but the company endured a massive $668 million quarterly loss recently attributable to the decline in the realized price of oil and natural gas (-47% -> $37.66; -25%-> $4.47). In the quarter just prior to this one the loss was $472 million. <br />
<br />
<blockquote class="tr_bq">
<h3 style="text-align: center;">
<span style="font-size: large;">Top Producers of Shale in North Dakota (Bakken)</span></h3>
</blockquote>
<ul>
<li><strong>Whiting Petroleum Co. (NYSE: WLL)</strong> - quarterly production 1.6 million barrels (19% of company production)</li>
<li><strong>Continental Resources Inc. (NYSE: CLR)</strong> - 127,788 bpd</li>
<li><strong>Hess Corp. (NYSE: HES)</strong> - 63,000 bpd (85% of company production)</li>
<li><strong>Statoil ASA (NYSE: STO)</strong> - 50,000 bpd (9% of company production)</li>
</ul>
<h2>
<br /><span style="font-size: large;">China Revises Gold Reserves (October 2015: China reserves)</span></h2>
<div>
</div>
<div>
- First time in four years China says anything about its reserves</div>
<div>
- According to <a href="http://www.mineweb.com/news/gold/could-china-actually-have-30000-tonnes-of-gold-in-reserves/">Wood Mackenzie</a> China has 30,000 tonnes of gold, more than any other country.</div>
<div>
</div>
<blockquote class="tr_bq">
Since the middle of the last decade China has been leading all countries in terms of gold output - very little of that actually leaves the country.. add to that the fact that China imports another 1000 tonnes of the yellow metal through various ports (HK being the largest) and you can start to see the potential it has to accumulate massive reserves.</blockquote>
<br />
<blockquote class="tr_bq">
<ul>
<li>Gold withdrawals from the Shanghai Gold Exchange hit a record high of <a href="http://www.mineweb.com/news/gold/china-gold-flows-to-hit-q1-record/">620 tonnes</a> in the first three months of 2015. </li>
</ul>
</blockquote>
<blockquote class="tr_bq">
<ul>
<li> Private consumption in China is probably not that high meaning at least a portion of that is going to China's central bank. Current estimates put China's <a href="http://grmike.blogspot.com/2015/01/reasons-to-buy-gold-and-silver-in-2015.html">reserves</a> at just over 1000 tonnes, far behind the top four countries which have a combined <a href="http://www.northamericaninterests.ca/resources/gold-reserves-by-country-central-banks-world-gold-holdings-change-tonnes-ounces-fort-knox-united-states-germany-india-china-global-imf-silver-production-metal-prices.png">16,500 tonnes</a>.</li>
</ul>
</blockquote>
<br />
<blockquote class="tr_bq">
<ul>
<li>According to various sources out of China, the upcoming report will act to bolster China's currency - This gives foreign currency traders (and governments) more confidence in the yuan-renminbi as an alternative to the US dollar. </li>
</ul>
</blockquote>
<br />
<blockquote class="tr_bq">
<ul>
<li>China and Brazil have already signed a <a href="http://www.theatlantic.com/china/archive/2013/03/is-the-chinese-renminbi-the-next-global-reserve-currency/274454/">$30 billion</a> currency swap agreement.</li>
</ul>
</blockquote>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-45130555115750449012015-03-31T18:37:00.003-07:002015-03-31T18:37:45.407-07:00Bearish Signals Make These Diversified Companies Ripe For The Picking, Royal Gold, Vale SA, Magna MGA, Gold Silver Industry<u>Seabridge Gold (SA)</u> - Where else can you get 40 million ounces of gold and nearly 300 million ounces of silver with molybdenum to boot for only $286 million ? The company has more gold reserves than Russia !<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-WgdwoQucRK7UE4v1Xs9vm1EjZEx11Jr2k4xh8zE5kknW3Tt_ge8P8l9fnhwdIibWb85u6XgxxzIFp_6JboLYm2UYHmMR-zWDpcV6eB4PQBoVJXmiqEt19TMzD7Flpw7fm6JWKHJGgIg/s1600/gold-mining-companies-silver-stocks-picks-royal-gold-diversified-investing-nyse-tse-new-york-toronto-bullish-earnings-price-ratio-companies-vale-basic-metals-nickel-europe.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="gold stocks, silver stocks, auto industry, magna international, bearish signals, gold industry, silver industry, gold mining, vale sa, royal gold, stable business, diversified companies, less risky, earnings, revenue," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-WgdwoQucRK7UE4v1Xs9vm1EjZEx11Jr2k4xh8zE5kknW3Tt_ge8P8l9fnhwdIibWb85u6XgxxzIFp_6JboLYm2UYHmMR-zWDpcV6eB4PQBoVJXmiqEt19TMzD7Flpw7fm6JWKHJGgIg/s1600/gold-mining-companies-silver-stocks-picks-royal-gold-diversified-investing-nyse-tse-new-york-toronto-bullish-earnings-price-ratio-companies-vale-basic-metals-nickel-europe.png" height="283" title="gold companies, silver mining, mining, metals, investing, stock picks, money, vale sa, seabridge gold, royal gold, barrick gold, silver stand resources, mining, resources, metals companies, canada, south africa, gold mining stocks, bearish, bullish, stock price, magna international" width="320" /></a></div>
<u>Royal Gold (RGLD)</u> - despite a crash in metal prices net earnings have been relatively stable; first quarterly loss in years occurred last December and at $6.5 million it isn't anything to be concerned about.<br />
<br />
<ul>
<li>stable business model</li>
<li> cash equivalents up 200% last two years</li>
<li> current assets up 90%</li>
<li> over the same time frame total debt has barely changed </li>
</ul>
<br />
-> take note however that unusual expense is up, surpassing $26 million last quarter after being nearly non-existant in previous periods. <b>watchout for mine writedowns.</b><br />
<br />
Vale SA (VALE) - This company is trading at a 52-week low which is what caught my attention.<br />
- maintains high quality mines around the world - diversified exposure makes it less risky (diversified companies). Vale is a hortizontally and vertically integrated company meaning that it owns the infrastructure and controls key logistic services used to transport mined materials.<br />
<br />
<blockquote class="tr_bq">
Potash, fertilizers are staples in farming - <u>when basic metals such as nickel and copper aren't performing you can always rely on the sale of material needed to grow food.</u></blockquote>
<br />
Over the last year, Vale (nyse:VALE) is down 58%, compared to only 23% for Rio Tinto (nyse:RIO) and 30% for BHP Billiton (BHP) despite similar circumstances affecting all three companies - don't see why Vale stock should continue to be punished.<br />
<br />
Rio Tinto - <u>Mega project Oyu Tolgoi is entering a second developmental phase</u> (first one already reached critical production <a href="http://www.bidnessetc.com/38263-rio-tinto-plc-adr-ceo-says-oyu-tolgoi-restart-plan-was-best-and-final-offer/">733,700</a> tonnes last year (metal sales +$1.6 billion).<br />
<br />
The second phase is worth $6.5b but calls for $4b in project financing for construction.<br />
<br />
<h2>
<span style="font-size: large;">Safe stock pick of the month : Magna International (nyse:MGA)</span></h2>
Thanks to low oil prices and the cheap Canadian dollar Magna has gained a competitive edge - latest quarterly revenue was up $220 million (+2.4%) despite a 10% decline in vehicle sales. Net earnings were also up to $509 million quarterly (+11.1%) or $2.44 a share. on the year the bottom line was even better (per share $6.76->$8.69).<br />
<br />
<u>Because of these results, quarterly dividend was upped to 44 cents (16%). </u> <br />
<b>Take advantage of these results before the company goes through with a planned stock split later next quarter.</b>north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-75429974977608767842015-02-28T22:01:00.000-08:002015-02-28T22:09:01.948-08:00Obama Blocks Keystone Pipeline TRP but What Happens When Oil Prices Increase Recovery in 2016 ? opec higher priceOf the many possible scenarios for the future direction of oil prices the consensus appears to be that they will begin to <a href="http://www.cfr.org/oil/case-allowing-us-crude-oil-exports/p31005">increase</a> within one and two years up to a price range of between <a href="http://www.oilonline.com/news/upstream/deloitte-predicts-u-shaped-recovery-demand-set-outpace-supply-2016">$75-$85</a>, which should hold steady for some time thereafter. By then, projects that the US supply currently relies on (north dakota/california shale/alberta tar sands) will have lost a lot of their investment thanks to the price crash of 2014-2015;<br />
<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH2DkwkR_WNDXKKH1OwsDt_tlMrph1SjDZfnhVxOdER2EanM8pJnECc2d_dOK82syciYTvLufzBY0U5mbs-7kshKcoAC7uTqclh4Ld4s0C2-_fBhboC7lYoWybge44j-6GIwLc6tbft_Q/s1600/oil-prices-up-recovery-keystone-pipeline-texas-refineries-obama-approved-tar-sands-alberta-canada-energy-padd-regions-glut-supply-demand-wcs-wti-crude-oil-transport-train-clinton-president-opec-gasoline-export-ban-emissions.png" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="oil prices, oil prices up, oil price recovery, 2016 oil supply, 2017 oil price, oil demand, oil supply and demand, keystone, keystone xl, keystone pipeline, pipeline to texas, texas refineries, houston economy, obama veto, obama approved, tar sands, alberta, canada, energy independence, padd regions, north america, glut supply, refinery rates, supply demand, wcs, western canadian select, west texas intermediate, wti, crude oil, oil transport safe, oil transport by train, expensive, travel costs, president clinton, clinton, opec estimate, gasoline, gas prices, oil export ban, opec strategy, opec, emissions," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH2DkwkR_WNDXKKH1OwsDt_tlMrph1SjDZfnhVxOdER2EanM8pJnECc2d_dOK82syciYTvLufzBY0U5mbs-7kshKcoAC7uTqclh4Ld4s0C2-_fBhboC7lYoWybge44j-6GIwLc6tbft_Q/s1600/oil-prices-up-recovery-keystone-pipeline-texas-refineries-obama-approved-tar-sands-alberta-canada-energy-padd-regions-glut-supply-demand-wcs-wti-crude-oil-transport-train-clinton-president-opec-gasoline-export-ban-emissions.png" title="oil prices will eventually recover oil price recovery 2016 2017, oil demand up, gas prices up, american oil independence, president clinton approves pipeline, americans polled support tar sands pipeline, keystone xl pipeline, petroleum products, expensive oil transport, nebraska support, opec strategy, IEA, international energy agency, estimates, forecast, oil demand recovers, western canadian select oil is cheaper lots of reserves stable supply padd regions glut deloitte analyst risky long term steady, oil price range, oil production in united states, oil export ban, mexico" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><br /></td></tr>
</tbody></table>
They will require a lot of time to restart - perhaps a year or more. <b>That could mean trouble for US consumers who won't be able to handle the eventual spike in prices, which could last months or even years</b>. <u>The Keystone pipeline would alleviate much of the supply concerns and don't forget that <a href="http://www.northamericaninterests.ca/canadian-oil-producers.php">Canadian oil</a> remains the cheapest available on the market !</u> WCS is routinely 30%+ cheaper the alternatives West Texas Intermediate WTI and European crude. Also keep in mind that <a href="http://grmike.blogspot.ca/2011/06/52-of-all-economically-viable-oil.html">Canada is home to over half of economically viable oil available to investors</a>.<br />
<br />
<h3>
<span style="font-size: large;">A 2017 oil price revival<br />oil price recovery in 2016 ?</span></h3>
According to the International Energy Agency IEA by 2017, the supply demand curve will move significantly in the opposite direction.. this will lead to a rapid rise in US oil output from shale projects : +17% -> 5.2 million barrels per day.<br />
<br />
<h3>
<span style="font-size: large;">according to key people in the petroleum industry:</span></h3>
<br />
..there's "evidence that future production will be curtailed,” chief economist and portfolio manager at Nuveen Asset Management<br />
-- this is already ringing true in Canada where Cenovus Energy has already made two capital <a href="http://www.theglobeandmail.com/report-on-business/top-business-stories/canadas-oil-patch-is-under-siege/article22940912/">spending cuts</a> with heavyweight Husky Energy cutting back as well.<br />
<br />
.. OPEC is saying that US gasoline demand will increase 1.17m bpd -> 92.3m bpd next year.<br />
<br />
US shale production is being hit hard by the lower price.. in the second half of this year, a lot of marginal barrels will disappear from the market and demand will rise for OPEC.. <u>this allegedly is a result of a decision back in 2014 by OPEC to maintain production levels in spite of the price correction.</u><br />
<div>
<br /></div>
<h2>
Approving Keystone Pipeline Makes Sense</h2>
<h3>
consider the ramifications of NOT having it built AND facing the steep rise in oil price - oil price increase that will happen by 2017</h3>
<br />
<a href="http://www.washingtontimes.com/topics/producers-of-american-crude-oil-exports/">70%</a> of Americans support lifting the present ban on oil exports to Mexico.. among other countries - and this is something the President is currently mulling. <b>Approving Keystone XL will give America's largest refineries first dibs on 100+ years worth of crude oil reserves (with the best flow through rates) and that makes perfect sense !</b> even the state of Nebraska, home of the aquifer which environmentalists were initially considering their key to winning the debate, now <a href="http://www.bloomberg.com/politics/articles/2015-01-09/keystone-pipeline-nebraska-path-is-cleared-by-state-high-court">supports</a> the project after careful consideration convinced even them that the benefits far outweigh any conceivable risks; safeguards include 24 hr a day surveillance, state of the art monitoring/sensor systems, cutting edge pipeline technology - <u>not to mention a new route that puts more spacing between it and the more sensitive areas of the acquifer</u>.<br />
<br />
Back in 2012 democratic presidential nominee Hillary Clinton put her support behind it - <b>a future president Clinton will get the keystone pipeline approved !</b><br />
<b><br /></b>
<br />
<h3>
<span style="font-size: large;">New Technologies Makes Oil Pipelines Safer (and cheaper) Than Rail For Petroleum Transport</span></h3>
<br />
Currently, the Canadian oil that does eventually get down to Houston's oil refineries is coming in on rail cars which makes the end products more expensive to buy. As illustrated by the October 2014<span style="font-family: inherit;"> <span style="background-color: white; color: #545454; font-weight: bold; line-height: 18.2000007629395px;">Lac</span><span style="background-color: white; color: #545454; line-height: 18.2000007629395px;">-</span><span style="background-color: white; color: #545454; font-weight: bold; line-height: 18.2000007629395px;">Mégantic</span>, </span>Quebec rail disaster, oil-by-rail is not always a safer method of transport.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-61150433353054260892015-01-31T13:31:00.000-08:002015-01-31T14:36:43.604-08:00Reasons to Buy Gold and Silver in 2015: US Dollar, Currency Wars, Russian Reserves, Central Bank QE<h2>
Gold and Silver Market Ripe For Rapid Growth</h2>
Though stateside gold prices may appear docile, from a foreigner's perspective precious metal prices are already too high because in much of the rest of the world the key precious metals have become a lot more expensive to purchase thanks to currency wars : the mighty US dollar.<br />
<br />
Seventy-five percent of silver production (mine production) happens at gold mines - this means that, when gold production slows down (companies shuttering mines which started happening in the middle of last year) silver output declines. This keeps the gold silver ratio intact despite the delinking of the two metals at London's commodities bourse.<br />
<br />
The core price is set by comex, the commodities exchange in NYC and thus is traded in USD.<br />
The fact that the price of both pcm's has barely increased over the past six months in my opinion makes both ripe for the picking ! <br />
Elsewhere the strong US dollar is making gold increasingly harder to afford, but that's inflation spurred by changes in local currency rates; though quantitative easing and changes in interest rates are wreaking havoc on other currencies, the USD already has that factored into its value.. with The Fed at its side nothing aside from a shaking of the Fed's basic policy of money creation can shake its value... or of course a tiring by currency traders of the endless excuses for more QE.<br />
<br />
In my opinion however, gold should've gained much more than nothing in US dollar terms. Demand is still rising especially among those seeking a tangible hedge against inflation, as well as by those transferring money out of equities in response to growing global economic uncertainty, a shrinking middle class. <br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<h3>
<span style="font-size: large;">The Gold Supply Problem</span></h3>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmy7J3XQW5JNHPxi9ay1qu3Se8hgC-y_KFYrB_JjcjrTgO_0RM4as8O24-1OJrUbpPN6SuFLOBSMLH3nhX-5srxlYdZFbf9kZti_0YECtH2DllxHY3L-xrtA6dk5MOKQq9sqo7fpQVw7o/s1600/reasons-to-buy-gold-russia-war-central-bank-purchases-quantitative-easing-european-ecb-germany-switzerland-exports-gold-india-imports-bullion-bars-silver-price-china-hong-kong-federal-reserve-interest-rates-switzerland.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="reasons to buy gold, investing in gold bullion, silver bullion, gold price, silver price, fx rates, foreign currencies, wars, rumors, russia central bank, russia gold, russia, china gold currency, china gold imports, festivals, india gold, switzerland, gold exports, us dollar, dollar index, deliveries, swiss gold, switzerland exports, swiss franc," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmy7J3XQW5JNHPxi9ay1qu3Se8hgC-y_KFYrB_JjcjrTgO_0RM4as8O24-1OJrUbpPN6SuFLOBSMLH3nhX-5srxlYdZFbf9kZti_0YECtH2DllxHY3L-xrtA6dk5MOKQq9sqo7fpQVw7o/s1600/reasons-to-buy-gold-russia-war-central-bank-purchases-quantitative-easing-european-ecb-germany-switzerland-exports-gold-india-imports-bullion-bars-silver-price-china-hong-kong-federal-reserve-interest-rates-switzerland.png" title="reasons to buy gold silver bullion next year switzerland currency wars interest rates quantitative easing" /></a></div>
<strong>Now there's also the inevitable gold supply problem</strong> : let's face it, prices crashed last year - and the big producers responded by shuttering mines, big mines that weren't producing at reasonable cash costs. Restarting those mines doesn't happen overnight - it can take years to complete new shaft reconstruction, bring in the necessary capital investment funding, and in some cases may even involve reapplying for licenses and approvals. The big gold companies are now worth a lot less making it increasingly difficult for them to get banks to lend them the billions of dollars needed to make the mines work. Then of course there's the shareholders who need to be convinced that the metal prices won't collapse again.<br />
<br />
<blockquote class="tr_bq">
As of 2014 there is an estimated 24 billion ounces of silver existing in the form of jewelry. Total historic production of silver is about 52 billion ounces, eighty percent of that mined since the dawn of the twentieth century. However, much of the 52b oz will never be available to the bullion market due to its historical value (in the form of religious items, museum pieces, non-scrap jewelry).</blockquote>
<br />
<h2>
India Imports Record Amount Of Gold From Switzerland</h2>
According to data from November 2014 Indian imports of gold from Switzerland totaled CHF2.9 billion up a whopping <a href="http://www.business-standard.com/article/pti-stories/swiss-gold-exports-to-india-cross-rs-1-2-lakh-crore-115012600189_1.html">600%</a> versus the previous year; it's not just that month either, in October it was up 280%; January through November gold imports amounted to 457 kilos.<br />
<br />
Russia Continues To Add To <a href="http://grmike.blogspot.ca/2014/06/germany-rebuffs-american-companies-nsa.html">Gold Reserves</a><br />
Russia purchased <a href="http://www.reuters.com/article/2015/01/27/gold-imf-holdings-idUSL4N0V60WJ20150127">20.73 tonnes</a> of bullion in December - note also that in December gold prices were up for the first time in five months (+1%). Makes Russian reserves fifth largest at 1210 tonnes.<br />
Also notable - Ukraine held onto its reserves after selling 16 of 40 tonnes in Oct/Nov. <br />
<br />
<u>Then there's the other central banks who cumulatively only became net buyers of gold since 2010 after 20 years of being net sellers.</u><br />
<br />
<strong>Russia is key here </strong>- July through September 2014 it accounted for 59% of the 92.8t of net <a href="http://grmike.blogspot.com/2013/04/gold-demand-remains-strong-despite-dip.html">gold purchases by central banks</a>. Gold comprises just under 11% of Russian reserves up from 8% in 2013. Those purchases allowed it to leapfrog <a href="http://www.northamericaninterests.ca/resources/gold-reserves-by-country-central-banks-world-gold-holdings-change-tonnes-ounces-fort-knox-united-states-germany-india-china-global-imf-silver-production-metal-prices.png">China</a> (1150 vs 1054). <br />
Gold imports from HK by China were down last year but it was still the second highest on record at 813 tonnes. Demand for gold should continue to increase into February as a result of Chinese new year festivities.<br />
<br />
<h2>
Don't Bet Against The Canadian Dollar !</h2>
I don't consider the current CDN/USD fxrate to be sustainable - Beginning in 2016 oil prices are forecast to go up possibly by as much as 50% ($45->$65 per barrel). Also note that Canada's federal government is starting to run a balanced budget while the USA has a severe, structural deficit which ultimately will lead the United States into a situation where it will be forced to run up high payments to foreign bondholders further weakening its long term outlook.<br />
<br />
<h3>
<span style="font-size: small;">Don't Let Yesterday's Gold Selloff Turn You Off</span></h3>
- gold responds positively to durable goods numbers<br />
- most global currencies are either under pressure (canada, australia, euro) or being deflated (asia) - this strengthens the US dollar in the near term but makes it increasingly vulnerable over the long term<br />
- when the dollar shows any sign of weakness expect a big jump in precious metal prices<br />
- Greek debt bailout 80 out of 240 billion is owed to Germany - If Greece doesn't pay up Germany will undoubtedly rethink its financial obligations to the Eurozone and that weakens Europe, its central bank and its structure.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-55437063251395546332014-12-31T19:59:00.000-08:002014-12-31T20:15:38.859-08:002014 the year of Canadian Technology and Services Stocks CAE Inc, Constellation Software, CSU, OTEX, TSX (aviation training, software, growing companies, acquisitions)<h2>
CAE Inc (nyse:CAE) - aviation stocks, aviation training services, aerospace industry, healthcare sector</h2>
This year CAE Inc of Montreal became one of the world's largest simulation technology companies. Its business is arguably the most diversified in the training services sector - at just under 200 locations in over 30 countries the company offers training services for pilots (civil aviation, defence), and manufactures key simulation technology for healthcare and security agencies. 50% of revenue comes from the sale of products (simulators and related technology) with the rest coming from services (aircraft operations training - over 100,000 civil and military personnel).<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjS3MMkJCai-RlS5jn9IP6nf7wPNlW3Hp93ZSsJRUKlK1L5bErMxEbgj1CDZAd-1dUvFQ9wCMKncaiXAwQsgYBsgOOqr83goZMdKvbpDAr541LcBL-BsBwDunbK0qpzs91ExU7M25ASQT4/s1600/aviation-services-software-stocks-cae-inc-civil-security-defence-us-air-force-open-text-otex-tsx-toronto-stocks-nasdaq-csu-constellation-software-aerospace-training-growing-companies-growth-diversified-earnings-healthcare.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="CAE Inc, constellation software inc, open text corporation, toronto stock exchange, security and defence, aviation stocks, aviation training, aerospace industry, ibm competition, organic growth, revenue growth, acquisitions, b2b services, software companies, nasdaq, market leading software, quarterly growth, dividends, growing companies, services stocks, diversified customers, healthcare sector, US Air Force, healthcare, critical software technology, software technology, tech stocks," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjS3MMkJCai-RlS5jn9IP6nf7wPNlW3Hp93ZSsJRUKlK1L5bErMxEbgj1CDZAd-1dUvFQ9wCMKncaiXAwQsgYBsgOOqr83goZMdKvbpDAr541LcBL-BsBwDunbK0qpzs91ExU7M25ASQT4/s1600/aviation-services-software-stocks-cae-inc-civil-security-defence-us-air-force-open-text-otex-tsx-toronto-stocks-nasdaq-csu-constellation-software-aerospace-training-growing-companies-growth-diversified-earnings-healthcare.png" height="412" title="technology stocks in the healthcare, aviation, b2b services, security and defence industy" width="640" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<u>why this stock ?</u> <strong>it's low risk !</strong><br />
<div>
Among industry observers CAE enjoys a rock solid reputation. It's extremely diversified (does not rely on a single market sector or customer), owns unique technology that has quickly become a mainstay in global aerospace training. Business from healthcare is strong (hospitals and universities).</div>
<ul>
<li>a global leader</li>
<li>the leading provider of commercial and helicopter aviation training services worldwide - second leading provider of business aviation services - market leader in key regions of China, India, South America</li>
<li>highly exposed to the growing defence and security sector (6% increase in revenue quarter ended September 30, 2014 - thanks to more activity in north amerca, europe and asia).</li>
<li>secured new contract to train the US Air Force</li>
<li>four consecutive years of revenue growth (2,114.90 2,035.20 1,821.20 1,630.80)</li>
<li>four consecutive years of dividend growth (0.22 0.19 0.16 0.15)</li>
<li>earnings <span style="color: #0c343d;">up 38%</span> last fiscal year (March to March) to $190 million.</li>
</ul>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">nyse:CAE</span></strong><br />
<div>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">1-year 6-months 3-months 1-month</span></strong></div>
<div>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">1.2% (1.4)% 6.8% (1.2)%</span></strong></div>
<br />
<h4>
<span style="font-size: large;">Constellation Software Inc</span></h4>
2014 was a great year for Constellation Software Inc of Toronto (tsx:CSU). The stock is up 60% for the year, bringing the market capitalization of the company to just under $8 billion and for good reason - in the <a href="http://www.csisoftware.com/wp-content/uploads/2014/10/PR_Q3_2014.pdf">latest quarter</a><br />
<div>
- <u>revenue is up a hefty 33% to $419 million</u> (acquisitions accounted for all but 4%).</div>
<div>
- <u>earnings up 44% to $32 million vs $22m</u> (per share $1.51 vs $1.05).</div>
<div>
- adjusted ebitda up 73% to $100 million.</div>
<u>it's not just that last quarter either that has investors gleaming - over the last nine months adjusted ebitda is up 55% to $244 million. net income up 26% -> $64 million.</u><br />
<br />
<blockquote class="tr_bq">
what I like about the company </blockquote>
<blockquote class="tr_bq">
it manufactures market leading software and has exposure to a number of industries (public and private). the software it provides is critical making its products invaluable (meaning there are few if any alternatives - makes for more reliable customers). Annual revenue recently surpassed $1 billion ! and quarterly growth is light years ahead of the competition (over 50%). For a company with a market value over $7.3 billion it's an amazing feat to record 60% growth in stock price in just one year.</blockquote>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">tsx:CSU stock price change</span></strong><br />
<div>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">1-year 6-months 3-months 1-month</span></strong></div>
<div>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;"> 59.48% 27.02% 21.35% 4.19%</span></strong></div>
<br />
<h4>
<span style="font-size: large;">Open Text Corporation of Waterloo, Ontario (b2b services, yahoo) - </span><span style="font-size: large;">nasdaq:OTEX</span></h4>
2014 was a wonderful year for Open Text Corporation - It's New Year's Eve and year-to-date the stock up <span style="color: #274e13;">28%</span> to $58.26 (market cap at $7.2 billion on the nasdaq). Like other Canadian success stories <a name='more'></a>(Valeant, Constellation) company growth hinges on acquisitions (which it has done without overleveraging). Last year Open Text made the biggest deal in its 24-year history - $1.17 billion foreign acquisition of GXS, a market leader in B2B integration services (assists in managing transactions with trading partners). Has an interesting history too - its first indexing system eventually became Yahoo's first search engine.<br />
<blockquote class="tr_bq">
Annual revenue growth is solid (fiscal year ends in June) But what stands out the most are the dividends - up 313% in the latest fiscal year !! $0.15 -> $0.62</blockquote>
<br />
<blockquote class="tr_bq">
Its customers range from small independent businesses to large enterprises. Even though it has some big competitors (IBM) Open Text continues to thrive in the current market.</blockquote>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">nasdaq:OTEX</span></strong><br />
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">1-year 6-months 3-months 1-month</span></strong><br />
<div>
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">27.8% 18.9% 6.0% (1.4)%</span></strong></div>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-58101670549791641972014-11-30T17:12:00.003-08:002014-11-30T17:25:33.102-08:00Retail Stocks To Watch During Holiday Season Hudson's Bay Company HBAYF, Target TGT, Sears SHLD department storesEven though total sales during thanksgiving weekend were unchanged and black Friday sales were down 7%, the overall picture is not so bleak i) the official numbers released by the <a href="https://nrf.com/news/thanksgiving-weekend-shopping-the-numbers">national retail federation</a> do not include online sales (where major retailers like IBM, Target have already reported increases of nearly <a href="http://sanfrancisco.cbslocal.com/2014/11/29/crowds-thinner-sales-down-black-friday-retail-analysts-blame-stores-opening-on-thanksgiving/">10%</a> versus the previous year) ii) sales are forecast to rise by 4% in november/december (holiday sales) which would be the biggest increase in three years. Another thing benefiting Americans is a strong US dollar - this makes it easier for retailers to lower prices stateside.<br />
<br />
<u>US sales figures</u>: black Friday : $9.1 billion <span style="color: red;">-7%</span>. thanksgiving holiday : $3.2 billion <span style="color: #0c343d;">+24%</span>.<br />
<br />
With Christmas only a month away let's look at a few stocks possibly benefiting from all this retail activity <span style="font-size: x-small;">investing</span><br />
<h3>
<br />Companies Benefiting From The Holiday Season</h3>
<strong></strong><br />
<strong>Target Corporation (TGT)</strong> - Canadian retail sales growth is strong (online sales up <a href="http://www.cp24.com/lifestyle/human-interest/1-in-3-canadians-relying-on-online-holiday-shopping-this-year-poll-1.2124292">23%</a> nationwide), and with key competitors Canadian Tire CTC.A and Sears SHLD offering little in the way of online competition, there's good reason to expect a surge in sales at <strong>Target Canada</strong>. Because Canada has one of the world's highest import fees, Target Canada is not exposed to as much online competition in the country as it is stateside. (Target competitors)<br />
.. <strong>online sales matter</strong> : online retail sales up <span style="color: #274e13;">+22.6%</span> in 2014.. 6.7% of all Canadian retail sales now occur online.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7u5tSgK4Ydg8DdD7mVyZLxd4g2rjDdvjXujTM9OyoDa-B7RhVWuOphyphenhyphen_xO5HFAosX0Yq168bRL2iQS5fr7fY53dAqg7T_MmMg-BFNs7O7eO1ZvfNpHlEGF8wePNN_z3j3rsA6K4X4khg/s1600/hudsons-bay-company-hbayf-hsbc-saks-fifth-avenue-locations-stock-investment-debt-reit-real-estate-valuation-apparel-clothing-high-end-department-store-competition-sears-target-holiday-sales-online-nasdaq-new-york-shopping.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="hudsons bay company, hbayf, hsbc, sears competition, nordstroms, shld, saks, fifth avenue, high end clothing, locations, new york city, montreal, stocks to watch, department store stocks, investment portfolio, long term debt, remortgage, reit, real estate investment trust, real estate stocks, target competitors, stock valuation, apparel, luxury brands, north america, department store competition, sears, holiday sales, online ecommerce, nrdc equity, robert baker, nordstrom, refinance debt, " border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7u5tSgK4Ydg8DdD7mVyZLxd4g2rjDdvjXujTM9OyoDa-B7RhVWuOphyphenhyphen_xO5HFAosX0Yq168bRL2iQS5fr7fY53dAqg7T_MmMg-BFNs7O7eO1ZvfNpHlEGF8wePNN_z3j3rsA6K4X4khg/s1600/hudsons-bay-company-hbayf-hsbc-saks-fifth-avenue-locations-stock-investment-debt-reit-real-estate-valuation-apparel-clothing-high-end-department-store-competition-sears-target-holiday-sales-online-nasdaq-new-york-shopping.png" title="" /></a></div>
<strong>Hudsons Bay (nasdaq:HBAYF)</strong> - HSBC commands a leading share in Canada's high end clothing market. With Sears (nasdaq:SHLD) shifting its focus away apparel and into major appliances, hbayf could see an uptick in sales due to market share growth. <u>The company has a rich real estate portfolio - total retail asset value is $7.3 billion (including those in the US) which is twice the market valuation of the entire company !</u> Earlier this month its most coveted asset, <strong>the Saks Fifth Avenue flagship store in NYC was appraised at $3.7 billion which comes out to $1.3 billion more than what it paid for the entire company last year ! </strong>The CEO also has expressed interest in creating a real estate investment trust (reit) using company property. hbayf - even if you exclude heavyweight Saks, group sales are healthy meaning the retail business adds value to the stock. Also HBAYF is in the process of refinancing existing debt so as to reduce its long term debt load. <u> CEO Richard Baker is interested in opening new locations in <a href="http://www.bnn.ca/Video/player.aspx?vid=498182">high traffic areas</a> - with more money coming in from the real estate side of the business he will be able to do this without the burden of short term debt (healthy quick ratio = less risk).</u><br />
<blockquote class="tr_bq">
<em><strong>seraphim's advice</strong></em> - Richard Baker knows the retail market for apparel and is a real estate genius. He's put the company in an enviable position - to grow throughout North America. Saks, Hudson's Bay, Lord & Taylor are established brands with a long history - the fact that they have continued to do well when others like Sears are on life support, is a testament to the brand strength. There's plenty of shareholder value to go around.</blockquote>
<blockquote class="tr_bq">
if you're looking for a company that maximizes shareholder value Hudson's Bay is the way to go - <strong>it took just a few years for privately held NRDC Equity Partners to turn a bankrupt chain of Canadian department stores into a money making asset.</strong> The Zellers real estate assets that were sold for $2 billion two years ago didn't even touch the company's premier properties in Calgary, Montreal, and Vancouver. </blockquote>
north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-80647239920777905082014-10-31T16:31:00.003-07:002014-11-02T14:52:53.104-08:00Still Bullish On Gold & Coal, Alpha Natural Resources ANR Seabridge Gold SA Undervalued Radar Stocks CommoditiesAlpha Natural Resources nyse:ANR - I made the mistake of not recommending this stock in my last post. ANR is up 15% since October 11th. Though the company's balance sheet still needs some tweaking, it's already showing signs of improvement (good quick ratio (short term equity to debt ratio), quarterly earnings losses not as bad as they used to be, metallurgical coal market is picking up / ANR is the leading producer of this type).<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxZp_lyN4nck6n8pbm8Nk_gnR8k6Hu6of8CLJGpMGDITpfDb7xDz3liNcz5jYmeBzSJGVP7GyFXAzo1jfhbvjKoCY-yf43W_TaTvnXa1r6PGhQHIRN4abo_8WfoG6nD3r8BFfQG3r4ZUU/s1600/commodity-companies-undervalued-stocks-coal-mining-gold-industry-prices-earnings-valuation-alpha-natural-resources-seabridge-under-the-radar.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxZp_lyN4nck6n8pbm8Nk_gnR8k6Hu6of8CLJGpMGDITpfDb7xDz3liNcz5jYmeBzSJGVP7GyFXAzo1jfhbvjKoCY-yf43W_TaTvnXa1r6PGhQHIRN4abo_8WfoG6nD3r8BFfQG3r4ZUU/s1600/commodity-companies-undervalued-stocks-coal-mining-gold-industry-prices-earnings-valuation-alpha-natural-resources-seabridge-under-the-radar.png" /></a></div>
A third of company revenue comes from outside the US where demand will continue to be strong (doesn't have to deal with the Environmental Protection Agency EPA).<br />
<br />
On reserves alone, the company's valuation is in the billions. In 2011 after acquiring Massey Coal, the company was worth more than $10 billion - it is now a measly $434 million. So what went wrong ? the debt it absorbed when it acquired Massey was substantial and just after making the deal the company was faced with a series of write-downs which took away its profitability and damaged its reputation. Some of that stems from an overall decline in the coal price, but not all of it ;<br />
<br />
Rumors of an Obama <a href="http://www.foxnews.com/politics/2014/06/02/obama-to-announce-rule-to-limit-emissions-from-fossil-burning-plants-part-his/">war on coal</a> have been rampant but have yet to come to fruition - in some states coal is just too important to simply phase out. ANR is a major producer of thermal coal (used in electricity generation) and it relies heavily on sales of this in states like Kentucky - Obama recently mandated a 30% cut in carbon emissions by fuel burning power plants by 2030. The easiest way for the states to accomplish this is to completely overhaul the way power plants generate electricity in states like Kentucky where thermal coal is the number one source of electricity.<br />
<br />
However, given that public opinion is against it (full implementation will cost a quarter of a million jobs) and that democrats have a strong interest in winning Kentucky, it seems unlikely that those radical changes will be implemented anytime soon. Add to that the higher costs associated with using natural gas (9c per kWh) and renewables (23c per kWh vs <b>4c for coal</b>) to make electricity and you have a lot of reasons to invest in undervalued coal stocks like ANR.<br />
<br />
<h4>
<span style="font-size: large;">The Gold Price Fell 5.4% In September Then Another 4.6% In October = Down US $126 In Just 61 Days ! </span></h4>
<br />
It's not just equities and the dollar that are pressuring the price of gold.<br />
<h3>
gold: not as popular among hedge funds</h3>
<br />
Total holdings by gold exchange traded funds (ETP) is now at the <a href="http://www.mining.com/2014-gold-price-rally-fades-as-etf-investors-hedge-funds-exit-market-69648/">lowest</a> level since 2009.<br />
SPDR Gold Trust GLD is the largest physically backed gold ETF (two-fifths of industry holdings) - SPDR net holdings are at their lowest <a href="https://twitter.com/zerohedge/status/514521480227745792">level</a> since 2008.<br />
<br />
It doesn't matter whether it's for jewellery or bullion, <a href="http://grmike.blogspot.com/2014/08/usa-loses-burger-king-bkw-petro-dollars.html">gold demand</a> worldwide has been down for the better part of this year.<br />
In the first and second quarters it was probably the price that turned consumers off (remained in a tight range between $1250 and $1310 after hitting $1385 in late March 2014), and with currencies such as the Indian Rupee and Canadian Dollar nearing four year lows against the greenback, the price may have just been too high. In Q1 demand fell -26%, Q2 -16%. <br />
<br />
<h3>
<span style="font-size: large;">A Reason To Be Bullish - India</span></h3>
The Indian festival of Diwali is a big reason India is the world's largest market for gold (#2 in 2013 but #1 in 2Q2014). Last year, demand for gold during Diwali was down -33%, but this year jewelry sales are up <a href="http://www.business-standard.com/article/markets/dhanteras-sales-jump-20-over-lower-gold-silver-prices-114102101188_1.html">+20%</a> !<br />
<br />
2014 Diwali : the price for 10 grams of gold averaged 27.5th rupees which is 15% less than in the previous year (32.5th).<br />
<br />
Gold Price In US Dollars <br />
sept 2013 1392.25 -> 1326.50 <span style="color: red;">-4.7% </span>sept 2014 1286.50 -> 1216.50 <span style="color: red;">-5.4%</span><br />
oct 2013 1290.75 -> 1324.00 <span style="color: #274e13;">+2.6% </span>oct 2014 1216.50 -> 1160.40 <span style="color: red;">-4.6%</span><br />
<h3>
</h3>
<h3>
I'm Still Bullish</h3>
Though recent trends point to a bear market I remain somewhat bullish, at least for the long run. US dollar, though up has been unsteady. It appears to be stronger versus the key reserve currencies yuan, yen, Canadian $, Australian $, Euro, but I don't consider the current level to be sustainable. <br />
US economic growth forecasts remain subdued, the effects of a strong dollar can wreak havoc on exports of US products since prices get more expensive in other currencies (why China has long maintained a low yuan policy). Also, less exports tip the US trade imbalance even more in China's favor - this will stunt jobs growth as companies would rather pay employees in a cheaper currency. With QE3 down to only $15 billion a month from a high of $85 billion a year ago, any growth the US experienced earlier this year could disappear just as quickly as it appeared (less stimulus / harder for small businesses to borrow).<br />
<a name='more'></a><br />
Yes, US interest rates may rise, but given the record lows we've seen this past year, that shouldn't really be unexpected. <br />
<br />
Also note that in other currencies, the fall in the gold price hasn't been as pronounced.<br />
Gold price <u>since May 2014</u>: in US dollars is down 9.8%, in Canadian dollars is down 5.5% and <u><b>in Euros the price of gold is actually unchanged.</b></u><br />
<br />
Don't like the short term outlook for gold ? <b>try palladium</b><br />
<blockquote class="tr_bq">
<u>The price of platinum remains quite high and palladium is a cheaper alternative for use in jewelry, catalytic converters, electronics, aerospace</u>. Disruptions to the supply chain in South Africa and Russia (dwindling stockpiles) caused demand to outstrip supply since last year. </blockquote>
<blockquote class="tr_bq">
Virtually all of it is consumed by industries exibiting robust growth (auto, aerospace) so there is no reason to expect a downturn in demand. By comparison, only 10% of demand for gold comes from industry.</blockquote>
<br />
<h3>
<span style="font-size: large;">Seabridge Gold nyse:SA owns 100% of Canada's Largest Gold Project </span><span style="font-size: large;"> - </span><span style="font-size: small;">Undervalued Companies & under the radar stocks</span></h3>
2P reserves are ~ 40 million ounces for gold, 200 million ounces for silver and 210 million pounds for molybdenum. All of these reserves are located at one property in northern British Columbia (KSM). <b>At only $330 million the company's valuation seems very low all things considered</b> - In September Seabridge obtained key early stage construction permits, neighboring Pretium Resources (nyse:PVG) has fewer reserves at Brucejack but its market capitalization is 64% higher; According to Pretium commercial production at Brucejack will begin in 2016 with output at around 504,000 ounces per year. You can be sure Seabridge is paying close attention to what's going on at Pretium's property, eventually I expect both companies to work together on mine construction and planning since the projects coincide.<br />
Over the last three months nyse:sa <span style="font-size: x-small;">-32%</span> has outperformed key Canadian players including Barrick <span style="font-size: x-small;">-35%</span>, Yamana <span style="font-size: x-small;">-53%</span>, Goldcorp <span style="font-size: x-small;">-32%</span>, Pretium <span style="font-size: x-small;">-33%</span> and Detour <span style="font-size: x-small;">-46%.</span><br />
<br />
<h3>
other notes</h3>
<b>Smart move gives Brookfield Asset Management a lift !</b><br />
<u>If you're looking for a company with high class assets and lots of growth potential that is more diversified than its competitors look no futher</u>. Has interests in electric power plants, wind farms, commercial real estate, agriculture, retail properties and now casinos ! early this month (October 2014) Brookfield bid and won the Revel Casino complex in Atlantic City. The $2.4 billion structure cost it only <a href="http://www.reuters.com/article/2014/10/01/us-usa-new-jersey-revel-sale-idUSKCN0HQ3RI20141001">$110 million</a>.<br />
Plans are already underway to reopen the casino. <b>Without having to go into debt to buy it there's no doubt that Brookfield will turn Revel into a money making asset.</b><br />
<br />
- nyse:bam 1mo +8.7% 3mo +8.9% 6mo +15.4%north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com0tag:blogger.com,1999:blog-2966903902007384480.post-59615716633226492642014-09-30T11:27:00.000-07:002014-10-04T00:57:31.539-07:00Electrolux eluxy Doubles US Market Share (whirlpool whr), Jaguar Tata Motors ttm Organic Growth China luxury vehicle marketIf you're into retail stocks here's one to consider - <b>Electrolux eluxy</b> aka Sweden's version of Whirlpool is taking the US by storm. On September the 8th it acquired General Electric's (ge.n) appliances business for $3.3 billion (7 times ebitda multiple). The move doubles Electrolux's market share in North America ($4.0 billion in sales -> $10.0 billion) putting it in direct competition with market leader Whirlpool whr.n.<br />
<br />
Electrolux is already the number two player worldwide but this deal means a lot given that the US is the world's third largest market for sales of major appliances (2013: 28% of Electrolux sales come from Europe vs 32% stateside).. also note that <u>American demand for appliances is estimated to grow by <a href="http://www.bloomberg.com/news/2013-10-25/electrolux-cuts-costs-as-third-quarter-profit-misses-estimates.html">9% in 2014</a> (up from previous estimate 7%)</u>. And don't forget about the <b>$300 million in synergy cost savings.. increased profitability right off the bat !</b> Less competition in the industry could mean higher prices - but even if that doesn't happen, Electrolex will undoubtedly have more control over the market price of its products.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwhjFM9jwV6q2ZQ8SSaGS7u7GBW33kQ1I2y_0k1Dl03F75M3Pfcj1fAW_5XIHYeK8tB_piOCQ7u9b27Zq4eW69wgHo9QwV-OOGJT8fMUwTHgbySxDwwqn1teBmXroLBO3H4X7kHxQoiyk/s1600/tata-motors-ttm-india-stock-picks-2015-companies-luxury-vehicle-market-china-iphone-6-reviews-blackberry-passport-competition-electrolux-whirlpool-whm-appliance-stocks-gold-prices-currencies.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="jaguar unit sales, blackberry corporations, passport sales, major appliance stocks, the classic, electrolux competition," border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwhjFM9jwV6q2ZQ8SSaGS7u7GBW33kQ1I2y_0k1Dl03F75M3Pfcj1fAW_5XIHYeK8tB_piOCQ7u9b27Zq4eW69wgHo9QwV-OOGJT8fMUwTHgbySxDwwqn1teBmXroLBO3H4X7kHxQoiyk/s1600/tata-motors-ttm-india-stock-picks-2015-companies-luxury-vehicle-market-china-iphone-6-reviews-blackberry-passport-competition-electrolux-whirlpool-whm-appliance-stocks-gold-prices-currencies.png" title="jaguar unit sales drive growth tata motors, blackberry electrolux also great companies" /></a></div>
<br />
Electrolux was doing well in North America even before this move - organic growth there is at 7% compared to 0.4% in Europe. Whirlpool has a market value 40% greater than Electrolux despite having similar revenue; Electrolux quarterly profit though has been wildly inconsistent. Annual earnings are comparable to Whirlpool with the exception of 2013 ($827 million vs $93 million) but don't let that bother you - <b>Electrolux is expanding rapidly in emerging markets (also a gradual move in production to low cost regions is estimated to boost 2014 earnings by a hefty $284 million)</b> and the costs associated with that process have been high but, by establishing itself early in those regions Electrolux is setting itself up for the future (and gaining an edge over the competition).<br />
<br />
<h2>
<span style="font-size: large;">Tata Motors is growing.. very fast</span></h2>
<br />
<u><b>Tata Group</b> (private) is perhaps India's most diversified company.</u> It sells beverages such as coffee and mineral water, generates electricity for public use, mines salt, manufactures automobiles (both high and low end), provides telecommunications services in India (Virgin Mobile India), is a service company (hotels, airasia, financial services). Its largest publicly traded subsidiary is <b>Tata Motors nyse:ttm</b>. In 2012 the auto division was worth <a href="http://www.forbes.com/lists/2012/18/global2000_2011.html">$15.2 billion</a>, today it's at $25.2 billion (<u>all organic growth !</u>).<br />
<br />
Despite no major acquisitions over the last few years, auto division Tata Motors finally appears to have an asset capable of providing organic growth. In 2008 it acquired struggling automarker Jaguar Land Rover from Ford for $2.3 billion (<u>today the Jaguar unit represents <a href="http://www.forbes.com/sites/greatspeculations/2014/05/30/jaguar-land-rover-drives-top-line-growth-as-india-sales-decline-for-tata-motors/">95%</a> of Tata Motors' valuation which translates into $23 billion !</u>). The deal instantly gave Tata a foothold in overseas markets (a plus for a company looking for international recognition) but unbeknownest to Tata, <b>sales at Jaguar Land Rover didn't need much of a push to take off - between 2009 and 2013 auto sales doubled to 425,000 units ; with 18.8% yoy growth last year</b>. In 2013 global sales of Jaguar models was up 37% (North America +50% vs -6% the previous year). Demand from China will have a tremendous impact on future growth (is currently the leading market for Jaguars; will push unit sales up to 1 million by 2020). Last fiscal year China accounted for 24% of Jaguar Land Rover sales vs 21% the year before. <br />
<blockquote class="tr_bq">
China is embracing Tata Motors and why not ? The country has low current luxury ownership rates, rising proportion of affluent individuals, and a strong affinity for premium brands. </blockquote>
Currently Jaguar represents 7% of all luxury vehicle sales in China (luxury vehicle market); estimates show China's total demand will reach three million by the end of the decade, Tata will account for at least 250,000 units, if its share increases then expect auto sales to rise markedly. <br />
more.. Tata makes electric vehicles and owns South Korea's second largest manufacturer of heavy commercial vehicles (Daewoo has been a part of Tata Group since 2004). On the flip side Tata Motor's low end passenger vehicle business has fared poorly (sales in India of its own makes including the Tata Nano and Zest are down <a href="http://www.livemint.com/Companies/FReFIp75FhzWEZ0K4ScDlO/Tata-Motors-appoints-Mayank-Pareek-as-president-of-passenger.html">33%</a> so far this year 88th -> 58th) but the company is committed to reviving it and has the assets to accomplish that ($7 billion cash, a parent company that both operates leading European and Indian engineering technical institutes and even mines/fabricates the steel used in its cars).<br />
<br />
Tata Motors stock price change : 1 mo -10%, 3mo +13%, 6mo +9%<br />
<br />
<h2>
<span style="font-size: large;">Magna International Expands In India (nyse: MGA)</span></h2>
<br />
The largest auto parts marker in North America makes Asia a priority<br />
September 29, 2014 - Magna announces plans for two new facilities to be built in Gujarat, India. The plants will produce seat systems and body and chassis systems. Magna already produces various parts in India for GM, Ford, and Nissan.<br />
<a name='more'></a><br />
<br />
<br />
<h2>
<span style="font-size: large;">BlackBerry nasdaq: BBRY Passport Sales Are Off To An Impressive Start (blackberry corporations)</span></h2>
<br />
This month, <b>BlackBerry bbry</b> released a brand new device for the first time in two years - the Passport is noticeably wider than what the competition is offering, but is that necessarily a bad thing ? considering it's specifically targeting corporations (suits and dress shirts usually have more than one big pocket, don't they ?). <b>It may be a tight fit but at least the phone doesn't bend. </b><br />
<br />
This device also has a keyboard (three built in rows, when needed the fourth row comes up automatically on the touch screen). So how does it compare to the iphone 6 ? <u>well for starters, it does have a quad processor and 1440x1440 resolution.</u><br />
<br />
In the first two days of its launch, bbry sold <a href="http://www.theglobeandmail.com/report-on-business/passport-sales-bode-well-for-blackberry-analyst-says/article20838923/">200,000</a> units of the Passport <br />
Initial shipment of passport smartphones reportedly <a href="http://www.smartcompany.com.au/technology/43962-blackberry-sells-out-initial-passport-shipment-but-losses-remain.html?">sold out</a><br />
Extrapolated over the upcoming 12 week quarter (3q2014) t<u>he boost in shipments should be enough to satisfy investors lamenting the 2.4 million BlackBerry devices sold in the 2nd quarter.</u> With the release of <b>the Classic</b> towards the end of 2014, BlackBerry shipments should beat full year estimates.<br />
<br />
more..<br />
In the second quarter BlackBerry<br />
- posted revenues of $916 million (vs $1570 million) 46% hardware, 46% services, 8% software. <br />
- <u>losses were down which is good</u> ($207 million vs $965 million). BBRY actually made a profit in the first quarter ($23 million).<br />
- <b>BBM mobile messaging users up to 91 million (vs 85 million).</b><br />
<br />
<h3>
<span style="font-size: small;">Corporations continue to show interest in BlackBerry</span></h3>
<br />
<b>The trust factor</b> - BBRY can keep information secure to an acceptable government standard, unlike competitors Google and Apple Inc.<br />
<br />
The QNX operating system, which BlackBerry owns is the OS of choice for most automobile software and is set to replace Microsoft in Fords, if it hasn't already.<br />
<br />
Convenience - Apple devices, iPod and iPad, are not compatible with Windows PC or laptop, by design Apple forbids using MP3 music from your PC.north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com1tag:blogger.com,1999:blog-2966903902007384480.post-37640374019440560162014-08-31T17:57:00.002-07:002014-08-31T18:21:30.328-07:00USA loses Burger King BKW & Petro Dollars first rouble oil shipment, Tim Hortons Merger Good For Loonie, gold demandOn August 27 rumblings of a Burger King corporate inversion made the headlines but its significance is far outweighed by another event that transpired the same day: Russia's Gazprom OGZPY ships the first tanker of oil <span style="font-family: Times, Times New Roman, serif;">(80,000 barrels)</span> ever to be sold internationally in a currency other than the US dollar. The destination ? China via the <b>Siberian Pacific Ocean pipeline connection</b>. <br />
<br />
<h2>
<span style="font-size: large;">A Sign Of Things To Come - veering away from Petro Dollars</span></h2>
In addition to this, two other shipments headed for Europe are also reported to involve roubles. If you don't have roubles don't fret - Gazprom also accepts Chinese Yuan ! It's unclear as to whether or not this move was made in response to recent sanctions since China and Brazil are also attempting to do the same thing.<br />
<br />
<h3>
Russian Rouble forex rate falls to Record Low</h3>
On August 29 the rouble fell to 37:1 versus the US dollar, the lowest exchange rate seen since the Russian currency was restructured in 1998.<br />
<br />
<h2>
<span style="font-size: large;">America Continues To Lose Big Name Companies - Burger King a Canadian Restaurant Chain ?</span></h2>
The second last weekend of the summer couldn't have ended soon enough for Burger King BKW and InterMune ITMN - mergers and acquisitions<br />
<br />
California based InterMune a leader in therapies targeting lung conditions, was acquired by Switzerland's Roche RHHBY for $8.3 billion.<br />
The same day it was also announced that Burger King is in talks to buy Tim Hortons THI in a corporate inversion - merged company uses the move to change country of domicile - New Canadian headquarters presumably will be in Oakville.<br />
<br />
<blockquote class="tr_bq">
Oakville has the sixth-lowest business tax rate among two-dozen Greater Toronto Area municipalities, will be scouted as a potential location. Last year, federal and state income taxes represented 34% of profits at Burger King.</blockquote>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUx6d0hQyHKZn7xj16bXMWdpe_diXnfh0BccIqieNHx69eQoI3Lt8jN7pyXaBdpAgwF-oZyGYsFvPGsSNced96MWcBa5j6flKE4xLJf9LQ-yEl5aU3UiQFrbX7UodIcPohKReHY11osuE/s1600/gold-consumption-demand-india-china-2014-down-gold-price-coins-bars-report.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="gold sales, gold supply, gold demand, mining, metals report, gold price, chinese demand, china consumption, india demand, india gold, jewelry demand, gold coin, gold bars, jewellery, wgc" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUx6d0hQyHKZn7xj16bXMWdpe_diXnfh0BccIqieNHx69eQoI3Lt8jN7pyXaBdpAgwF-oZyGYsFvPGsSNced96MWcBa5j6flKE4xLJf9LQ-yEl5aU3UiQFrbX7UodIcPohKReHY11osuE/s1600/gold-consumption-demand-india-china-2014-down-gold-price-coins-bars-report.png" title="gold demand and consumption by chinese and indian china india down decline decrease bars 50% coins 20% lowest gold jewelry jewellery sales fall globally world gold council" /></a></div>
One is acquiring the other for $11.4/$C12.5 billion ($3 billion in finance from Berkshire Hathaway gives it a preferred stake which pays a higher dividend yield) or $94.05 per share - $65.50 in cash and 0.8025 per share of the new company for each share they own<br />
<br />
<h3>
... however, Canadian taxes may not be the issue</h3>
<blockquote class="tr_bq">
Daniel Schwartz, Burger King’s C.E.O. added, “We don’t expect there to be meaningful tax savings, nor do we expect there to be meaningful changes to our tax rate.” Last year Tim Hortons effective tax rate was virtually the same as the US rate of 27.5%.</blockquote>
<br />
Other reasons why the company is relocating - Two-thirds of the combined company's revenue will come from Canada, with 20% from the U.S. and 13% from the rest of the world. <b>Tim Hortons is underleveraged meaning they can borrow against those assets -> this will enable the new company to make even more acquisitions ! </b><br />
<br />
<b>What allows BKW to transfer its headquarters to Canada is this</b> : <u>under US tax law, if the US company transfers more than 20% of its shares to the foreign firm it can switch its tax jurisdiction.</u><br />
<br />
The Canadian corporate tax rate of 26% compares favorably to the 35% rate stateside - last year Burger King paid a rate of 27%. Canada has the second lowest tax rates in the G7. "total tax costs are up to 40% lower in Canada versus the USA". you see, overseas income is only taxed when it's brought back to the country of domicile.<br />
<br />
Burger King is undergoing tremendous growth abroad, something that Tim Hortons has been trying to do over the last few years, unsuccessfully - 859 of the 879 non-Canadian locations are in the United States.<br />
BKW is the larger of the two brands (13,000 restaurants vs 4600 Tim's) but the bulk of its restaurants are franchised, <b>meaning corporate revenue isn't as strong as it is at Tim Hortons</b> (for instance Burger King Canada is not even a part of the company ! it was sold by 3G Capital back in 2013). Although BKW net earnings doubled last year (117.7-> 233.7 million) it has yet to match that of Tim Hortons ($424.37 million, up 5% in 2013).<br />
<br />
<u>After the deal is completed, Burger King can leverage Tim Hortons ability to tap the breakfast, coffee and snack market, making it more competitive with McDonald's.</u><br />
<br />
<b>Tim Hortons THI has always been a great investment</b> - company brass have always been open to partnerships with other fast food industry players. Previously they were involved Cold Stone Creamery and before that, Wendy's. <u>Some say that the ice cream partnership didn't work out</u> (cost Tim's $19 million to terminate the deal <u>but it did last a few years</u>) however if done right, this one could actually work !<br />
Brazil's 3G Capital will be the company's largest shareholder (51% of combined company; was 70% pre-merger). <b>3G also controls iconic Canadian beer maker Labatt Breweries.</b><br />
<a name='more'></a><br />
Last year Burger King increased international locations by 1493 with 124 new stores in Europe, Asia last quarter alone ! <b>Same-store sales in China beats McDonald's which is a grrreat sign !</b> Don't forget the deal Timmy's already has in place with investors in the <a href="http://www.arabianbusiness.com/canada-s-tim-hortons-signs-deal-for-120-gulf-outlets-378817.html">Gulf region</a> - promises to deliver another 120 new Tim Hortons locations to the Gulf.<br />
<br />
The two companies do operate a bit differently: 94% of Tim Hortons locations are corporate owned versus only 0.4% for Burger King (down from 11%). Nevertheless, BK continues to increase earnings (doubled in 2013) as the number of franchisee owned locations grows at a torrid pace.<br />
<br />
<b>commentary</b>: this is great news for Canada ! it doubles the corporate tax collected from Tim Hortons and gives the iconic brand an opportunity to expand overseas. Also, Burger King ranks among the fastest growing international fast food franchises. <b>Thumbs up to Stephen Harper who has been adamant in cutting the corporate tax rate for the better part of a decade</b>. Tax rate may be lower but Canada will be getting millions more next year because Burger King just moved to town !<br />
<br />
more..<br />
Burger King added 142 new stores in the last 3 months in Europe and Asia only !! ALL of its growth is coming from outside the USA, and it's that growth that gives it shareholder value. 1000 new stores in 2013 at the same time net earnings DOUBLED. Before it ventured outside the US borders the company was doing very badly, losing money every year and bordering on bankruptcy. Yes it had thousands of stores but it was not able to grow or turn a profit until a Brazilian company bought it and turned it around.<br />
<br />
<h2>
<span style="font-size: large;">Gold Demand Down 16%, Jewelry Down 30%</span> </h2>
In the three months ended July 31, 2014 demand for gold plunged 16% (1148.3 tonnes -> 963.8 tonnes) thanks to lower jewelry sales (lowest quarter in 1.5 years). In China, falling demand for gold jewelry (-45%) and gold bullion (-56%) has made India the largest purchaser of gold by default. Overall, quarterly jewelry demand is now at 509.6 tonnes (China demand -45% India -18%), gold bars demand -57% to 212 tonnes, gold coins -50% to 46.3 tonnes. 3-month demand by country: India 204.1 tonnes -39%, China 192.5 tonnes -52%. <br />
<br />
<h4>
But Central banks keep buying Gold</h4>
+117.8 tonnes in the second quarter +28% (added 409 tonnes 2013 full year). Russian gold producer Polyus Gold POLG led all gold companies in bulking up its hedging position (protects against future price decrease).<br />
<br />
<h4>
<span style="font-size: large;">Canada's economy becomes even more diversified !</span></h4>
<div>
<br /></div>
Canada is home to major companies in the aerospace industry, oil and gas, technology (BlackBerry), banking, insurance (Manulife, SunLife, Great West Lifeco, Intact), software (CAE Inc), cinema (imax), mining (gold), auto (Magna), pharma (Valeant), media (Thomson Reuters), aerospace (Bombardier), rail (home to 2 of the 4 biggest railway companies in the world), and now fast food !<br />
If you're a forex trader, this bodes well for the Canadian dollar - for instance, when the BKW announcement was made, the loonie pushed higher on financial markets - that's because Burger King will need to buy Canadian currency to close the deal.<br />
<br />
Canada's stock exchange also stands out - as of January 2014 only five countries have a stock exchange bigger than the Toronto Stock Exchange, which ranks 8th in size (9th in terms of trade volume).north american interestshttp://www.blogger.com/profile/14877601106696706654noreply@blogger.com2