Potash and ELM

Today marks the end of a potash cartel, made up of 2 big potash organizations; one in Canada and the other in Belarus/Ukraine.  Hence the price of potash fell and share prices of potash miners also plunged.

http://www.mineweb.com/mineweb/content/en/mineweb-industrial-metals-minerals-old?oid=196787&sn=Detail

But the world needs potash and even more of it in time to come.  ELM used to be one of my star performers until commodity prices fell in the last 2 years.  The Chinese with cash are moving onto this kind of company where it is worth next to nothing but its discovery is worth billions.  Tentatively, there is already talk of a takeover but I hope investors know what is long term value.

PIR

Once sold down yet, its economics are too good.  Politically, it was once nearly a pariah due to Islamists occupation of western and northern Mali with a Tuareg insurgency.  With thanks to the French, the unwelcomed invaders have been pushed out.

However, there was nothing to explain why the share price has been rising and rising recently.  Today, when you look at the announcement that the resource has been extended with good drilling results, you know that it HAS to be insider trading.  This is so unfair but the ASX is usually very limp about investigating it.

False recovery

I have a fantastic run today, with large alphas.  However, this is deceptive.  We are so dependent on the Yankees printing money.  Once Ben decides it is no longer necessary, the ASX and AUD will come tumbling down.

I am not leaping into the market at the moment because I cannot comprehend it.  However, I do know that Chinese and European economies are not doing well.  Neither are those in South America.  Japan cannot rely on government for long term improvement.  And the Yanks are not out of the woods, yet.

Laying low...

I find it impossible to decipher market movement at the moment.  You can understand gold stocks falling because the POG has fallen drastically.  Yet with world economy not really progressing that well, you wonder why the financial stocks are doing so well.  Perhaps, Macquarie Bank is doing many, many deals that we are unaware of.  And the Big Four are doing extremely well but again we are not privy to that information.

In the meantime, I am sitting still...