AndrewMills
Long

Oversold, will be handsomely rewarded for patience

OTC:SPOXF   SPROTT INC
Personally, Rick Rule is an investing hero of mine, and I hang on his experience and follow many of his insights. This is so oversold, and PM's are about to turn the corner. As Japan does, so goes Europe and the US... we are all about to embark on endless QE             as the deflation wave begins the prelude to the hyperinflation wave that will be coming in the years ahead.
Rashad
2 years ago
I like the way you visualize EMA crosses by doing it the way. A ribbon makes a much better visual.
Reply
ForceFollower
2 years ago
Long? Why not keep pressing the short position?
Reply
AndrewMills ForceFollower
2 years ago
Short to how far? Zero? Downside is only $2, and precious metals are about to turn around, that sector seems to have capitulated. The dollar is overbought currently and is s a very crowded trade, along with the threat of deflation, the FED may have to think of something to give it another shot in the arm. Buying corporate bonds maybe? IDK, seems they may have to print more money. Look at Japan, they seem to be an example of where we could go in our economy if we don't get it together. Debt levels are out of control. Russia is about had enough and Putin is under pressure. New banking rules make you a creditor, and on the hook for the banks failures. They can give one a haircut at any time... as a creditor, we are loaning banks money. How safe does that make anyone feel knowing how much debt in TRILLIONS are the on and off balance sheet obligations? China and India are getting into their buying season. I don't feel this is a company without value, they have a solid balance sheet, and will profit nicely with the rise in precious metals. Headwinds seem to be low, and if interest rates actually do go up (highly doubtful till 2016), gold will go up too. Platinum and Palladium are in tight supply, comex and shanghai running on empty, the bricks are hungry for cheap precious metals and to send us dollars back in exchange.

Here's a snapshot of Sprott:
AUM as at September 30, 2014 was $7.4 billion, reflecting an increase of $27.4 million (0.4%) from September 30, 2013, $0.4 billion (5.7%)
from December 31, 2013 and a decrease of $0.5 billion (6.1%) from June 30, 2014. Average AUM for the three and nine months ended
September 30, 2014 was $7.8 billion and $7.7 billion, respectively, reflecting an increase of $0.4 billion (4.9%) and a decrease of $0.7 billion
(8.0%), respectively, from average AUM levels in the prior periods.
• AUA as at September 30, 2014 was $2.2 billion, reflecting a decrease of $0.4 billion (16.3%) on a three months ended basis and $0.4 billion
(17.0%) from last year on a nine months ended basis.
• Total revenues were $28.1 million on a three months ended basis and $91.3 million on a nine months ended basis, reflecting a decrease of
$12.1 million (30.1%) and an increase of $7.0 million (8.3%), respectively, from the prior periods.
• Total expenses were $21.5 million on a three months ended basis and $65.4 million on a nine months ended basis, reflecting a decrease of
$8.9 million (29.3%) and $15.4 million (19.1%), respectively, from the prior periods.
• Net income was $4.5 million ($0.02 per share) on a three months ended basis and $19.8 million ($0.08 per share) on a nine months ended
basis, reflecting a decrease of $9.0 million (66.6%) and an increase of $10.9 million (123.2%), respectively, from the prior periods.
• Adjusted base EBITDA was $11.4 million on a three months ended basis and $27.3 million on a nine months ended basis, reflecting an
increase of $5.5 million (91.9%) and $4.0 million (17.3%) respectively, from the prior periods.
• Invested capital stood at $321.9 million, reflecting a $7.7 million (2.5%) increase from December 31, 2013. The increase was due largely to:
(i) year-to-date net unrealized and realized gains in the Company's proprietary investments portfolio; and (ii) year-to-date FX gains on cash
holdings. The annualized return on invested capital (excluding cash, real estate loans, and lines of credit) was 12.9% and on investable capital
(excluding only real estate loans and lines of credit) was 8.7%.
+1 Reply
yihlong.tan AndrewMills
2 years ago
Definitely not yet bottomed IMO. Many longs in the market have the mentality that the USD 100% will be devalued and destroyed, gold price has to go up 100% for sure, yet you ask them why, they can't explain, just that they heard the 'gold is real money' story. The USD is taking a pause allowing precious metals to have some constructive bottom-like action, this could go on for up to 3 months, but the next major move will be devaluation of the Euro based on economic numbers we're seeing, strengthening the Dollar even further, further weakening gold or at best it goes sideways if there's inflow into gold too.

Granted, history tells us that when the US finally needs to deal with its debt problems, it will go the way of devaluing the USD if it has not found another solution (or economic numbers worsen in US again giving the Fed leeway to stimulate at a time when the USD is very strong - this is the most likely scenario IMO). But if there's no reason to stimulate if the numbers keep improving, yet the US gov debt burden becomes too heavy (as interest rates rise), I suspect war might be the excuse to create more QE to buy bonds to suppress rates again. In any case, I still expect the best trade in currencies now is Short Euro/long USD. If you really need to buy gold I would suggest shorting the Euro as a pair trade. But I can't forecast wars and if a war happens any time soon, I take back everything I said about precious metals not bottomed yet
+1 Reply
ForceFollower AndrewMills
2 years ago
Thank you for the extensive response. You've covered the entire world. :-) Anyway, what matters is - follow you strategy and keep pressing your best setups.
+1 Reply
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