Club Mulgoa

Wednesday, October 13, 2010

Simple arithmetic

The price of gold is up. The price of oil is up. DJ Index is also up.

Against that is the AUD rising in value relative to USD... but this rise is smaller than that of gold and oil. That means the ASX will perform today.

Yesterday, AVB plunged by 20%. Rightly so, a stock cannot keep going up and up. It fell most likely because one director sold off half his stake to settle "tax issues"; you are talking about 15 million shares.

I sold CCCO which is producing coal in South Africa because I prefer to invest in Mongolia. This is much much nearer to China. And some of this coal is coking coal but luckily for Australia, the quality is not as good. Of course, SA coal can go to India and Europe... But I would be done better if I sold a month later. Still a profit is a profit, no matter how small or large.

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