CDU

It went into a trading halt pending drilling results. Good or bad?

Whichever way, the market has developed a deep mistrust of WM's figures. The last JORC-compliant resource estimate did not correlate with the good drilling results. So, how is going to be different this time?

The recent gold results were very good but how true is it?

The last time I topped up, CDU was moving like a yoyo. I have done very well out of that plunge. On one occasion, it was for a quick profit. Since I have sat on WM's boat for so long, I will sit this one out as well. He is definitely an interesting character but the figures published are mostly unbelievable, good or bad.

PXG PWN

Today, PXG updated its gold resource but the market only took cursory notice of it. Unbelievable. Pity I am not loaded with cash. A relatively large upgrade and gold price going up and I repeat, the market only took cursory notice of it....

And then PWN announced a good drilling result and the share price went up a bit, too. Just a bit, relative to the good announcement.

Wish there are more Indian and Chinese companies knocking at their doors to highlight how cheap Aussie companies are.

I am not lamenting. I am hoping to buy more when I have the cash if the share prices stay low.

PWN

http://www.mineweb.com/mineweb/view/mineweb/en/page31?oid=128239&sn=Detail&pid=31

Hear ye, hear ye, hear ye!

PWN has fallen in share price since floating. Why one stock goes up and another goes down? Inshallah! The one that went up has no reason to as there is nothing new to announce. The one that went down has just floated and has nothing to announce. So one stock has bolted, while with the other one, the boat is waiting to collect passengers....

Nothing is ever as straight forward. But when the drought breaks in China, potash will be hot in demand again.

GBE

Nothing much doing whenever this company announced a good drilling result. And that has been cumulative. But suddenly, after it gave its latest announcement during a trading halt, the share price lifted. I am still under-water with this stock. That would not be the case now... unless world market sentiment changes.

The rare earth uncovered is the type that the market pays a premium for. Yet, you cannot sell the stuff unless you spend a lot of money to process it. Only China has the large manufacturing capacity at the moment so she controls the world market. Lynas is still behind with its construction and is ARU in South Australia.

My spare cash in my super fund will be used towards the end of the fiscal year to start paying our pension! That means GBE has to wait. I hope that in time, investors will forget its good result and the share price will drift down for me to top up. But I think when you next blink, you will find an Indian, Japanese, Korean or Chinese company at the front door of GBE. The US government has listed REE as a strategic material. Well, not all but the critical ones like those for powerful magnets.

Em... the Chinese are already INSIDE the company and ECE is already the largest shareholder.

Black cat or white cat

The greatest capitalist of the last century was a communist. Mr Deng Xiaoping. Small bottle, he was but what an impact on the world economy.

And two of his most famous quotes are:-

It does not matter whether the cat is black or white, as long as it catches the mouse.

Poverty is not socialism. To be rich is glorious.

Read more: http://www.brainyquote.com/quotes/authors/d/deng_xiaoping.html#ixzz1NsLw2LrW

I used city brokers because I wanted to participate in placements and IPOs. Because I was such a small client, I only got scraps, coupled with high commissioners for trading. I was okay with the high commission provided I can make stag profits with IPO and placements. But nothing was forthcoming. So it was fees with scraps.

As I learned more about ASX annoucements and know how to read between the lines with company reports, I realize that my cat is catching more mice than the city brokers. So, with thanks to Mr Deng, I say, it does not matter whether the cat is big or small, as long as it catches MORE mice.

EDE

http://www.proactiveinvestors.com.au/companies/news/16680/eden-energy-prospective-uk-gas-resources-are-world-class-16680.html


When you read this, you wonder why the big boys and my readers are sitting around doing nothing. On top of its technological advancement, there is now shale gas in Wales, described as "world-class". Of course, all is speculative until the resource is confirmed.

But why wait? I have topped up with my entitlement and it is starting to move up even though not all the entitlements were taken up. Those shareholders who didn't participate must be kicking their own balls now.

PXG

I read in another company's presentation. It showed how cheap it was but in that chart, PXG was the cheapest. So I bought PXG but only a small amount. In a short time, it is up 20% even though the general market has fallen.

GOR

The article in Eureka Report today on GOR is too late! It is so far behind. It used to be EKM.



This article came out in Sept 2010!

http://www.minesite.com/nc/minews/singlenews/article/eleckra-is-starting-to-unlock-an-entirely-new-gold-belt-stretching-north-from-anglos-massive-tropi/1.html

Of course, I have made a huge profit out of it. But most investors do not listen to twilight anaesthetist who have highlighted financial articles. I bought at a very low price and was brave enough to top up. I recently exercised the options.

Some of my old email readers bought some shares that I recommended and they made a loss. So extrapolating it, most no longer follow my blog. Yet, I have made large gains from investments in West Africa and Mongolia. I have losses too but the spectacular profits have overshadowed the losses, even when the resource sector was badly hit. I continued to invest recently when the market was hit hard. I put very low bids and still collect some shares!

PIROA

This is becoming embarrassing for me. It has leapt from16.5c to 46.5c in about a month. No matter how good my logic is, it does to amount to this sort of climb. Still, it is nice to know the logic is better than I thought it was :-)

But as usual, no one is following my footstep....


I could have regretted selling off the ordinary shares for a nice profit but it could have been bigger. And to think the share price has started to climb again. Luckily, when the directors started to buy again, I joined them! I bought more shares but in the form of options for greater leverage. I think my father would have been proud of his genes in me.

RAU

I am a millionaire when it comes to number of RAU shares I own. It is raising new capital at 0.5c. Each raising had resulted in further fall in its share price.

What is fascinating is the most recent drilling result.... and the share price went below the entitlement price!

Bolivia is a socialist country, almost communist. RAU has been insisting it has a good working relationship with the socialist government. Truth?

The grades are good but it is not extensive. However, the deposit remains open at depth.

Yes, I would be investing in the rights issue unless I collect new shares at 0.4c. I am not selling any shares.

China investing big in transport infrastructure

http://english.cri.cn/6909/2011/05/26/1781s639613.htm

This is worth USD$954 billion. Wish we have a government here who can plan ahead.

You need tar and you need steel, and therefore coal. And you need a government with money.

All this means the commodity market will still be hot for a long time. But if I am China, I would buy the raw material producers first before announcing the plan above. Why would anybody want to listen to a twilight gasman?

PWN and EQN

This floated recently and promptly went under water. I was a privileged buyer but nothing profitable! However, like all potash stocks, you have to wait for the next wave of buyers. China's drought will affect the demand but when the rain comes, it will need potash by the tanker loads.

As a famous local surgeon once said, "Never worry too much about drought; after a long drought, it will be broken by the rain".

So I topped up my PWN last week at 17c and it is now 19c. By next year, I hope to say that I wish I topped up more. But one has only so much cash....

I will have a lot more in a few days or a few weeks time. EQN is taken over by Barrick Gold which wants to diversify into other metals. I made >150% profit on it. Mind you, it was a loss for quite a while when GFC hit until copper was actually produced. Patience and logical faith do pay in the end.

RRSO

This is pure madness today where the share price plunged for no obvious reason. After the close of trading, it made a tremendous announcement. I was busy working today and my wife does not like me to put more money into the stock market. So I refrained from dabbling in RRSO in her portfolio.

If DJ Index does not collapse tomorrow, you can bet on RRSO jumping up in share price on Monday. I love idiotic sellers but I could not take advantage of them today.

PIROA

On the 29/4/2011, I bought a lot of PIROA at 16.5c. If you do a search in this blog, you will find the rationale behind my trading. It is nice to know my logic has been rewarded.... and today, it went up further to 39.5c a share.

In term of shares bought, this is one of my biggest parcels recently other than for share purchase plans. This is where I wish I bought more because it is worth betting on what I think is the right move.

Shale Gas

Yesterday, I picked up a small parcel of BKP, a topping up. This is a gambling stock but it is with calculated risk. If BPT succeeds in fraccing its shale ground, then expect an avalanche of money into shale gas explorers. So for 2.1c, there is a lot of upside. And if I lose the lot, I will still get to keep my trousers on.

NYO

Last week, when markets were crumbling, I put a low price to buy NYO. More gold has been found in Ethiopia but investors are not listening. Can't hear but not deaf and can't see but not blind. I love it when I don't have to compete to get my shares and I adore idiotic sellers.

When I look at one of the portfolio, I notice it is now 26c, up from 22c last week. That is sweet but I am sure I won't collect that if I sell. But who is selling? I am not desperate and I am not idiotic yet... for this stock.

GMM

Look at the share price today! Potash yet to be confirmed but it is near its market. I would have topped up if I was watching it.

Yesterday, I was telling my colleagues that it is crazy that Indian and Chinese companies with loads of cash are not bidding for cheap Aussie companies.

If I am in the finance industry, this is where I will make my $$$ by marketing cheap Aussie miners to rich overseas companies. If Aussies don't want them, you might as well sell them abroad.

The only explanation I have for today's fall is because the drilling results are known to insiders and they are selling ahead of the bad results. But this is illegal. So if everything is above board, then the fall should present another opportunity to top up. I love idiotic sellers but I fear insiders. Their activities are very difficult to expose.

EDE

Here is one bright spark today. The markets around the world have been tumbling; the ASX especially bad with a double whammy due to the high AUD.

EDE in theory should be singing its technology, especially to Bob Brown. It removes the carbon from methane to make carbon nanotubes. And burns the remaining hydrogen molecules as fuel into water, with no CO2 produced in the reaction. The best thing is it is already selling the carbon nanotubes so it is not just a laboratory product. Liquid hydrogen is too dangerous so it is actually mixed with LNG for sale as Hythane.

I topped up recently and then took part in the entitlement. Surprise, surprise, it was under-subscribed by the shareholders. The underwriter will dump the shares soon so you expect the share price to fall but it went UP!!!!

Bob Brown, are you listening? Aussie technology but under-rated mostly by.... Aussies.

RVA - Reabsorbable coronary stent

http://imagesignal.comsec.com.au/asxdata/20101221/pdf/01135111.pdf

http://imagesignal.comsec.com.au/asxdata/20110523/pdf/01182695.pdf

http://www.theaustralian.com.au/business/hearts-aflutter-as-coronary-revolution-looms/story-e6frg8zx-1226062242178

After reading the article in The Australian, I thought this is worth a gamble. If everything that is said about this company is true, then if there is no competitor, this has got to be godsend to mankind. Especially those who eat like pigs and there are plenty of those in wealthy countries.

But nothing is straight forward. Research and innovative medical company has a long way to go before success. There are competitors, there are regulatory hurdles and unexpected complications that will turn a promising company into history. All biotechs are very high risk. You really only make money because a big pharmaceutical company takes it over. This company already has a working relationship with Boston Scientific and Medtronics. They had invested in the development of the product.

Today, I manage to buy at the original issue price in Dec 2010. So while I had to pay commission to CommSec, it is actually cheaper than what the original investors had to pay for. After I bought (in fact, I was the first cab off the rank this AM!), the share price started to move up. But by close of trade, the price has gone up by only 0.5c. This kind of stock is bought for the medium term.

Shale oil and gas

As with most investors, people stay on the side-line until the big boys take an interest. The shale oil and gas basins in Australia are starting to attract the attention of Americans. Currently, there are quite a few under 10c per shares. And these have huge tenements yet they are mostly ignored. Thank god for that! I am hoping to buy more... cheaply while I can. I have previously listed those stocks so you can search in my blog.

I hope the market continues to fall so that I can top up. Greek issue in a storm in the teacup. If the Greeks don't want to work, I am happy with that. Let that country rot so that I can visit it cheaply in the near future. If the Germans don't want to work, then I have a big problem.

IMA

Eureka Report has highlighted stocks that have been missed by the market. Em...

I think the one zirconium story it missed is IMA. It is discovering so much heavy minerals and most of its tenements are next to ILU. ILU has flown but IMA is wallowing in the trough. Sooner or later, the Chinese are going to move into IMA. It is pittance in market value compared to ILU yet it is increasing its resources by more and more discoveries.

I hold shares in BDR (topped up not so long ago, too).

It raves about another 2 gold companies... but I find it hard to go pass ABU in Australia. The best grades are yet to come. In West Africa, PIR has made a good discovery in another zone in its tenements.

Watch RAU!!!!!!!!!!!! Today, the market is negative in sentiment but look at RAU's announcement.

CDU

What a great announcement recently! But there have been so many "hoaxes" from WM that the market has a deep mistrust of his "good" news. Normally, share price would jump with the grade of gold found, including the shallowness and thickness.

Is it time to jump back in again? I don't know the answer, having been burnt before. But I am a risk taker. Two sets of drilling results near each other do not make this a major discovery. It could just be a rich short vein of rich gold deposit. But an overseas investor Oceanwide is pumping into CDU at $3.80 a share and is now its biggest shareholder.

All these are too suspicious? I find it hard to believe CDU can disappoint twice and get away with it. Hence I am putting a low bid for more CDU. Someday, I will know if I had been an idiotic buyer.

Alpha

It is not as critical whether market goes up or down. What is important is whether your own portfolio performs better than average. One portfolio went up by 1.5%, one was down by 0.15% and another at near 0% . Hence I collected alpha today.

CEL with phosphate in Tunisia is obvious desired by someone in the guise of CBA. VLA is erratic but up. TRH and PRE have decided to do well today with no announcements. IPR had a court victory. And PIROA decided to go up another notch. Of course, there were quite a few downs as well. Worse was KGL. Market does not like uncertainties but local politic is delaying progress.

I can no longer tell which way the market is going to move but I am not investing big time until my cash re-accumulates. There have been some top-ups. I love buying when the share prices have dipped very low.

ASX Guru... PIR

Guess who would be highlighting PIR today.... ASX Guru. Nice to be ahead of him by nearly 1 month. It is so hard to imagine anyone selling PIR when directors were buying the shares. Do these sellers read the market announcements when they decide to sell or are they just absolute idiots? I just cannot get enough of them in the market!

Meanwhile, there are some other investors who justifiably labelled me as their idiotic seller from the past....

Arithmetic

If the price is 7c and you buy at 6.3c, you pay 10% less. But if you buy at 6.3c and it rises to 7c, then your profit is MORE than 11%.... So I can have 3 meals for a couple at Temasek. Especially with tonight's dinner where I will get 25% too.

RSL

I put a bid to buy at less than 10% the current price. And some people sold it today at an even lower price. It is back to its current price now so I have basically made a 10% profit, enough to pay for a couple of meals for a couple at one of my favourite Malaysian restaurants.

This is another of those non-performing stocks... with good prospect. When it has dropped so much, why not top it up especially if some people are 'happy' to sell it so low.

PIROA

So easy to make money sometimes. I was pondering a short while ago whether I was the idiotic buyer or the seller was idiotic. I used logic to top up my PIROA and today, I can enjoy a first class trip somewhere with my lover paid for by this fool. With this kind of announcement, unless market sentiment or POG plunges, then PIROA is not going to tumble again.

For those who want an education, I suggest you do a search at Club Mulgoa and see how I traded in PIROA, i.e., the reason for buying it.

Did anyone buy PIROA or PIR recently? I think I will have to offer sympathy all round... Most investors are very nervous about putting money into falling stocks. But it is important to know why it is falling, whether it has fallen too far... and what is the management doing.

PIROA

People were dumping PIR by the bucket loads. Yet the directors were buying and buying and buying. And still the share price continued to fall. Why would directors keep buying if the company's prospect is that bad? Is it to deceive shareholders or do they know something that we don't?

I did sell my ordinary shares and topped up using the options when I found the directors were topping up, too. Net effect is I own more shares in PIR than before because I could buy more options than ordinary shares.

http://www.asx.com.au/asxpdf/20110519/pdf/41yr4088h7v3z6.pdf

The JORC-compliant resource announcement disappointed the market but today, another area was drilled and the result is wonderful. So I have made one lot of profit selling (could have been higher!) and now I can expect to be rewarded for having faith in the company... and following in the directors' footstep. As usual, I don't expect anyone to follow my footstep. The logic was obvious. There are some cheating board members but there are more who are financial astute. Why would they spend their own money buying the company shares if the future is awful? And not one director but several. So I feel vindicated today.

Shale Gas

At the moment, there are so many shale gas explorers in Australia at less than 10c per share. In the USA, these companies were in the fringes. Now they are fetching billions from the big boys who moved in late... including our BHP.

The market is different from the USA. Hardly anyone lives in the Central Australia or in the North of NW WA. And our population is tiny. Pity the kangaroos and camels don't need any gas for heating. Even their numbers are small.

I might have to bite the bullet and go back to buying BRU. But in Central Australia, I own quite a few companies prospecting there. If BPT is successful at proving the extracting technology, shale gas producers will be hot on the ASX. But if it fails, well.... don't tell your spouse that you heard about shale gas from me! Investing is about taking CALCULATED risk. Can't handle it? Don't touch any of the shares I write about. Stick to boring Bonds, not James.

AVA

I have not much knowledge of what is a "greenstone" belt but the only relevant fact is there is gold associated with this geology.

When I attended a talk by the CEO of AVA, he showed a slide with big area of greenstone in its tenements in Kenya. I bought. And I had been rewarded. And with another good drilling result, I have been rewarded again.

You don't need to go to university to do geology.... just the ASX and Proactive meetings will do fine.

MAK

The market has been performing badly, but just because the Indians or Chinese want a share of your mining assets, the share price will lift. They can recognize value but Aussies can't.

Today, MAK had a lift-off. It is talking to a big Indian outfit about taking an interest in its phosphate mine.

Market sentiment

Short term, market sentiment is the most important factor. So my portfolios have been going down like a lead balloon.

But long term, I have very little to worry about. Price of gold is still high and oil has not really tumbled down either.

Stocks like ERN and BSR with good announcements today have only moved up a little. Some are indifferent like CAP.

I will stay on the sidelines although I did collect some stocks because the price went down low to my level of buying. So I collected VOR and STB recently. I did sell some stocks recently so I have spare cash for topping up some stocks.

VLA

Here is a classical clever Australian story that few in Australia have faith in. It is brilliant unlike energy and effort thrown into sports. Here is something that can cure people, benefiting mankind.

A long time ago, I told some colleagues about VLA. And the potential risk in investing in it. Very often, what I buy falls. Well, it yoyo'd for a while and then crumbled because it takes a long, long time to develop a cure in medicine. The process is long drawn and expensive... and there is no guarantee of success. In fact, failures come faster and more severe.

Biotech stocks only jump if the news for development is good but it only rockets upwards when it is taken over by the big multinationals. VLA will be a sitting duck, waiting to turn into a golden goose.

Those who bought some time ago, had no patience. Those who bought had lost faith. Not me. I topped up a few times at much cheaper prices than when I first bought. My colleague(s) had chickened out after my initial recommendation because the stock went mostly down after that. It is starting to run up now. I bought a large number of 1c options and I even exercised it in June 2010. Total cost is 4c. Hence, I am seeing a very nice profit now. Those who didn't buy with the option rights given to them must be kicking themselves now.

If this pending trial involving human guinea pigs is successful, Australia can look forward to another Nobel Prize for Medicine nomination. That is something to be proud of, not sporting achievement for a particular person. This is for the benefit of mankind; sporting success is for that individual or team. It is sacrilege to say it downunder but Howard Florey is infinitely a greater Aussie who saved so many lives than the minnow Donald Bradman who plays with a wooden stick to hit a ball.

Commodities

http://www.businessspectator.com.au/bs.nsf/Article/Glencore-Glasenberg-commodity-prices-carry-trade-pd20110513-GT55H?OpenDocument&src=sph&WELCOME=AUTHENTICATED%20REMEMBER


This is what I am scared of. There is no quantitative measure, no short term predictability, no control and no logic over its price. You are most susceptible to these managers who make huge amount of money out of investors who are keen to hedge against the North American peso, i.e., the USD.

China is reining in its economy but that does not mean no growth; just slower growth so the future for Australian miners is not that gloomy. But market prices for shares are very dependent in the short term on sentiment. And these bastards who control huge amount of warehoused commodities can do tremendous damage. They make their money mostly from commission but if they trade opportunistically, they can also profit from manipulating the market.... at other investors' expense.

For me, I think it is time to start increasing my cash component. However, I am always a sucker for good bargains!

POG and gold miners

When the stock markets slide because of sentiment, my portfolio is very badly affected. I am a high risk investor therefore I expect my stocks to yoyo more than others.

Based on fundamental issues, I see the market as increasing in value, especially gold and O&G stocks. If a gold miner is producing, and the POG is still >USD$1500 per oz, why would the market capitalization fall? Similarly O&G price is high relatively, yet...

I sold off a stock yesterday because my intimate accountant dislikes its treatment of dividends. It is confusing and difficult even for an accountant. While AIX is expected to do well in the near short term, I decided to get rid of it... to invest in resource stocks. I usually wait for more definite sign of a trough before re-entering the market. Another plunge in Wall Street would be "welcomed" by me. On rising days, I feel good with the increased in valuation. On many down days, I feel excited with the opportunities arising... a lot more idiotic sellers are present.

OLE

The new chairman was Executive General Manager of Lihir before it was taken over by Newcrest.

Soon, OLE will be offering a SPP and also a placement. The latter is bad news, but if you have a small foothold into OLE, you might come out looking like a sophisticated investor.

New gold stocks

As hard as I try not to buy new stocks, I couldn't resist bargains.

I read in other companies' presentations and noted PXG was the cheapest by EV/AuOz. I bought it almost straightaway. To date, it is a 10% profit.

And then I read about a stock which used to invest in olive trees. But the new head is a guy who was associated with a West African miner. It is moving its strategy to West Africa. Of course, it is an unwanted stock at 0.3c. So I own many near worthless shares in OLE. If you want to buy, you will have to pay 0.4c today but if you want to sell, it is 0.3c. In reality, there is no gain. But if OLE comes up with a good result... somehow... then I see it translated into nice profit.

But OLE is a very high risk investment. Don't go into it unless you are prepared for complete vaporization of its value.

NEN

Some of my recent buys have been losses. But like most of my purchases, it is not for short term trading. With price of oil and gold near their yearly highs, these stocks will eventually rebound. That is optimism!

One stock that has done well from recent top-up is NEN. Mind you, it was a loss for a long time because I bought it at a mini-peak at 48c in May 2008 when it was SAE. How did I come to make a 55% profit now?

It is through good announcements that the market disregarded but which I paid attention to. It kept making wonderful noises but hardly anyone wants to hear anymore because it had plunged earlier on. Since late 2008, the share price had stagnated. So I have topped up 3 times, last one in Apr 2011. The company has uncovered O&G in the USA and in Vietnam. Nothing very fluidic at the moment, ie, there is no JORC-compliant resource estimate yet but there is something and it could be worth a lot more.

Besides idiotic sellers, I also love blind or deaf investors who cannot read or hear reports properly! But you always need idiotic sellers so that you can buy with less competition. It is also great that few people, if any, read my postings and even fewer actually buy what I write about so the price does not jump unlike those stocks mentioned in The Speculator in Eureka, ASX Guru or Diggers & Drillers. The latter has the greatest impact on share prices immediately after the tips are released. I can say that I have beat him to a few of those stocks :-)

I have my failures too but often I keep them if I believe in their stories. Just look at NEN...

Shale Gas

http://www.thegwpf.org/images/stories/gwpf-reports/Shale-Gas_4_May_11.pdf

Worth reading but it sounds too good to be true. And if China uncovers its own supply (because it is very rich with poor quality coal), then LNG may not be as needed.

Meanwhile, I had been the idiotic seller of BRU some time ago. The Canning Basin and the shale gas in Central Australia are thought to be huge. I got rid of Buru because it had hardly moved for a long time. Since I sold, it has gone up by nearly 200%. The main problem is that while shale gas is known to exist in that onshore part of WA, the explorers have not hit any jackpot. It is a matter of time.

The same applies to Central Australia... and I have invested heavily there. There are CTP, BPT, BKP, ICN, STO, COE while in NW WA, I have only invested in OBL. There are also coal-seam gas explorers too like ESG, MPO, etc.

If fraccing is allowed and done, the results will be fantastic. But Bob Brown, the de facto Prime Minister, might not allow it. And investors in oil and conventional gas are rubbishing shale gas because it will provide competition. I invest in all of them, include quite a few exploring in Gerogia, USA, Somaliland, Senegal, Ghana, Ivory Coast, Morocco, Vietnam, France, etc.

One of the most interesting areas in the map in that article is Paraguay. The whole nation is floating on shale gas!

Commodity rout

The Chinese are where they are because of currency manipulation; keeping it low in value so their exporters can sell cheaply. But Australia does not have that perk.

While the rise of AUD is great for traveling overseas, it is a disaster for miners. Our commodities are sold in USD but the profit is reported in AUD. And for many ignorant Aussies, our lifestyle is supported by the tax generated out of this trade.

There is now a terrifying market where people can invest in hoarded commodities, used solely as an object of 'value'. When one of these stumbles, everything else follows. Either China fumbles or the ETF mad sell-down or a major upheaval like 9-11 will be the next cause of a market collapse.

In the meantime, I sit and watch... Usually, politicians only do something AFTER a catastrophe.

Contrarian

The market is falling, falling and falling. I am sitting there like a leopard waiting to pounce. Yes, I do have spare cash because FML gave me no share at all for its SPP even though my money went in on time. People in WA had the advantage of faster mail delivery. It was very unfair but the market price for FML is falling towards its SPP price!

There are better bargains at the moment. The POG and share prices for gold miners have drifted in an illogical direction. But I will wait for a correction before moving in; it is impossible to pick the trough. I have made big loss on some stocks but it is nice to have bought PIROA at the right time. The directors have been buying the company shares!

POG and gold miners

I think RB is following me! He is also lamenting today in his Pure Speculation column about the share price of gold miners lagging behind the rise in the price of gold. This is especially "bad" for gold miners who are actually producing or discovering more gold. It means the PE ratio should be good value or the EV/Au resource is cheap.

This kind of event is red rag to me... it is fantastic time to buy.

At least GOA has a rise today when it announced a fabulous drilling result. I am almost getting to a 100% jump now over my average buy price. Something to smile about while the ASX is tumbling, especially my resource stocks.