NEA

It is incredible how when a company changes tack, the share price just does not stop rising.  But like father used to say, unless a company makes profit, eventually it will be a useless investment.  What he liked was, reliable dividends.

In previous years, NEA used to be IPR.  But fighting in foreign courts and often winning, does not give much profits.  Courts are often partisan...

When it took on Google Maps, it actually won!  When things free, it is not upgraded as frequently.  Nor is the resolution as good.  With a successful model and making profit out of its aerial maps, within a short time, NEA has gone from loss to doubling my paper profit.  This is a rare thing now as my resource stocks have plummeted.  I never sold any IPR because its business model is sound.  Here, patience has paid off.  And management has made the right decisions.

Buying at the trough

That is a misnomer.  Others get to buy at the trough.  I rarely pick the bottom when buying.  But I have sold at the trough before!

Last week before the market turned up, I put in a bid for ROC at 37.5c.  It has found oil off the East coast of Malaysia.  So why investors are selling ROC?  I have no idea other than because they are lemmings.  I was happy to relieve them of their burden.  However, the market doldrums are not over yet.  Hence, they could be the lemming winners and I would be the dumb buyer!  But when a stock has no reason for fall, that is when I like to top up... especially when it has been churning out good news.

I also topped up on SEH.  It has already found shale gas in China in tcf (trillion cubic feet) quantity.  This is only the beginning of the history of shale gas in China.  The same story in the USA will be repeated in China.  So currently, I am not buying any more share gas explorer in Australia but I will be interested in those in China.  I had bought 2 parcels of LRL.  It was a technical error as I only wanted one parcel.  It is still down a little because I bought just before the recent down turn in the market.  The shale gas industry is bound to go further in China than in Australia where the NIMBY attitude and Greenies are winning the government response.

China is covered with a smog in most cities, so the government is trying hard to reduce reliance on coal.

Idiots and POG

You now wonder who was managing the gold sales a few days ago when it fell to nearly USD$1300 per oz....

There is no mint in Sydney and it is too awkward to buy but I was planning to buy a couple of oz of gold.

POG is not out of the woods yet, though but demand-supply demands that the price stays over USD$1300 per oz as it costs a lot of miners over USD$1100 per oz to dig it out.  And there are less and less productive gold mines around the world.

More lemmings

I sometimes wish that Perth Mint is right here in Sydney.  It would be so easy to buy gold bullion without the cost of shipping.  And when selling gold, too.

When it got below USD$1350 per oz, it was too inconvenient to top up my mini gold collection.  And now it has risen over USD$1400 per oz.

I put lots of buy bids 2 days ago and today I got a small parcel of SEH.  I was hoping a few more parcels would get through by today but only one did.

Lemmings...

You cannot create gold.  Not yet anyway.

And you cannot extract gold cheaply.  So when the POG falls, there has to be a reason.  Perhaps a central bank is liquidating its hoard to general cash.  Or perhaps, someone extremely wealthy or powerful, selling their gold in the market.  Or perhaps, the POG is being manipulated by something.

But you cannot extract gold cheaply.  So when the POG falls, mines will close.  And the supply will dry up.

I am sitting on the side as for a while now, I have refrained from buying much because the market is not behaving in a rational way.  But when prices have plunged really deeply, I might start to hunt again.