iBankCoin
Joined Apr 19, 2009
721 Blog Posts

Don’t Get Too Cocky…

After all, this is why we are socking away wins for a rainy day:

deficit

So yeah, the Jacksons (up a collective 36.5% since May 1st as of today’s close) may be doing egregious “loaves and fishes” type miracles with your cash pile, but let’s keep our nose to the grindstone, as you’ll need that dough when a ham on rye, hold the mustard sets you back $36.25.

Remember we are all about dollar destruction here.   Take a look at that chart and ask yourself if the Congress and the Fed are going to support that kind of spending (not to mention the huge Medicare and Soc Sec liabilities) via the good old fashioned “belt tightening” of increased taxation and spending cuts?  

As they say in Texas, “No, hail no.”

So let’s be opportunistic and remember that there will be pullbacks in these metals, but that we need to manage our positions to maximize cash flow in this critical period.   For me that means selling calls at critical junctures, and even trimming the sails to raise cash from time to time.  If I’m reading things right, however, you are in for a bumpy, but enjoyable continuing ride here.

Keep in mind Rubicon Minerals Corp. (USA) [[RBY]] has broken to new highs yet again, and Allied Nevada Gold Corp. [[ANV]] remains a favourite pick.   I may take some leverage (ie, bot calls) off the table in Silver Wheaton Corp. (USA) [[SLW]] soon, as it’s run faster than it’s brother silvers by far, with over 66.8% returns since May 1st inception, while [[PAAS]] and Silver Standard Resources Inc. (USA) [[SSRI]] are only at 43.5% and 29.2% respectively.   I think SSRI especially will gain from here. 

On the junior level [[EXK]] continues to be a junior trooper, and I continue with a leveraged position in [[CDE]] as well, because of the acute lack of overhead.  I also own Hecla Mining Company [[HL]]

On the gold side, IAMGOLD Corporation (USA) [[IAG]] remains the monster of the pack, with 85.8% returns since inception, but I’d look for a pullback here before jumping in.   Eldorado Gold Corporation (USA) [[EGO]] and Allied Nevada Gold Corp. [[ANV]] still look like they can pack punch here, however, so keep an eye out on them and yesterday’s mention Gold Fields Limited (ADR) [[GFI]] .  

 Last, non-PM Monsanto Company [[MON]] grabbed back some ground today but continues to be undervalue in the Jacksonian sphere.   Still a “grandkids pick.”   The Andersons, Inc. [[ANDE]] –up over 106.5%  since Jackson inception — is still our leader, and looking for $39 as it’s next “achievment.”

I’ll have more tomorrow, but let’s shut it down with a veritable classic from my youth.   Share it with a favored son of daughter, and it’s likely they’ll never forget it:

  [youtube:http://www.youtube.com/watch?v=P7tQVEEPWv0 450 300]

Slange.

__________________

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32 comments

  1. Woodshedder

    Congrats on those positions Jake!

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  2. Jakegint

    Thanks, Mon. Hope you are also participating.

    Is this not the finest of Schoolhouse Rock productions? We used it tonight to help w. one of the kids’ homeworks, and I was thinking to myself– “Is that Leon Redbone??”

    ___

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  3. JakeGint

    Will be out for the first part of the morning.

    Looks like silver is blasting off again. I have an order in to pick up some more SSRI on the open. See you in a bit.

    _______

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  4. Yogi and Boo Boo

    Jake – Do you ever read this fellow from Kitco? http://www.kitco.com/ind/nadler/sep152009.html

    I heard him on Bloomberg Surveillance this AM and he was extremely interesting. Liked Rhodium, paladium, and Platinum, better than gold. Rhodium anyone?

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    • JakeGint

      Tried to take a small starter in PAL yesterday, but missed my price.

      I don’t read Kitco much… to many oddballs there. Try to do my own research.

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  5. Mr. Cain Thaler

    Jake, take a look at NRP; I’m not sure what changed, but that thing is almost back at $21. This tape is ridiculous.

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    • JakeGint

      The dollar has changed. I still have about 2k shares, but I’m much reduced on this name. Not trustworthy, unfortunately.

      _________

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      • mrcainthaler

        I’m just grateful I’m a stubborn asshole when it comes to long positions. Wish I’d loaded up, marginal style, though.

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  6. JakeGint

    Got back in and saw that I got rid of the last of my September GDX $34’s at $14.20 that I bot @ 5.40 right at the end of August.

    That’s a 162+% return in about three weeks for those of you who are scoring at home (and you know who you are).

    ________

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  7. JakeGint

    Hokey Scheissbags batman, This Beezy is BTFO!

    Hope you got on board!

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    • DMG

      What time should I bring the car around, Mr. Gint?

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      • JakeGint

        Wait a second, I haven’t picked one out yet.

        ______________

        BTW — don’t know if you still have ABK, but it’s 38.2% short term fib is at today’s high (1.75). If it breaks that w. gusto, here, the next logical stop is the 61.8% fib at $2.64.

        Hold all tickets.

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        • DMG

          Schweet…still holding that pos but was considering selling.

          I set that stop yesterday on SSO a little toooo tight so now have a large wad of cash burning a hole…prolly wait for some type of pullback b4 deploying unless you have any other ‘locks’.

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  8. BuffaloUdders

    I took a small position in ANV yesterday. Im definitely on the precious metals bandwagon for the next 90 days and would like to double my holding of ANV if there is a pull back. I too love Monsanto and have been in and out of it over the last several years. Although it looks like the recent drop didnt get below $77, with their new EPS guidance I am hoping that it will drop lower so I can get back in. It churned a lot in the low 80s when I was thinking that we would at least see it in the 90s by this time.

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  9. The Fly

    No one on the internet nailed the metals like you.

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  10. JakeGint

    You just have to wonder…. What kind of moron gene runs through the Democrat Party?

    Why can they never learn from history? Seriously, I’m embarrassed for my country today.

    ____________

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  11. JakeGint

    From the above linked article:

    “Guess who’s coming to dinner (in Warsaw)? Four senior Obama officials, including Under Secretary of State for Arms Control Ellen Tauscher and Assistant Secretary of Defense for International Security “Sandy” Vershbow, are apparently in the air right now on their way to Poland. Why? If the Washington hot rumor mill is right, to deliver the news to the Poles and then the Czechs that the administration has decided not to go forward with a missile defense system for Europe and the United States against the budding missile threat from Iran.”

    This is bad news for all who care about the US commitment to the transatlantic alliance and the defence of Europe as well as the United States. It represents the appalling appeasement of Russian aggression and a willingness to sacrifice American allies on the altar of political expediency. A deal with the Russians to cancel missile defence installations sends a clear message that even Washington can be intimidated by the Russian bear.

    What signal does this send to Ukraine, Georgia and a host of other former Soviet satellites who look to America and NATO for protection from their powerful neighbour? The impending cancellation of Third Site is a shameful abandonment of America’s friends in eastern and central Europe, and a slap in the face for those who actually believed a key agreement with Washington was worth the paper it was written on.

    ____________________

    Barack Obama — the anti-Reagan.

    I’m gonna have tee-shirts made.

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    • DMG

      I beat you to it

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    • DMG

      Too funny, this clown parade:
      “President Barack Obama, seeking to make a case for health-insurance regulation, told a poignant story to a joint session of Congress last week. An Illinois man getting chemotherapy was dropped from his insurance plan when his insurer discovered an unreported gallstone the patient hadn’t known about.

      “They delayed his treatment, and he died because of it,” the president said in the nationally televised address.

      In fact, the man, Otto S. Raddatz, didn’t die because the insurance company rescinded his coverage once he became ill, an act known as recission. The efforts of his sister and the office of Illinois Attorney General Lisa Madigan got Raddatz’s policy reinstated within three weeks of his April 2005 rescission and secured a life-extending stem-cell transplant for him. Raddatz died this year, nearly four years after the insurance showdown.”

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    • DPeezy

      Make peace, not war, gentlemen.

      If our “friends” are so concerned, they can finance their own damn missile sites. I’m sure we have plenty of long range ICBMs in various bases and nuclear subs around the world to effectively combat any “real” threat.

      And really, the anti-“INF Treaty”-Reagan? The man who shifted his policies (in his 2nd term) and negotiated the end of the Cold War?

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  12. Canada

    Hey Jake,

    Keep your chin up down there eh
    In order to be helpful with your countries current financial situation we would be be happy to purchase any military equipment off of yous guys

    PS. Signs of a recession are hard to come by up here but it is in fact getting a bit cold lately

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    • JakeGint

      I think it’s youze guys that might need to be careful.

      I could see Putin throwing up a couple of hand shadows on the wall at the next “Superpower” Summit meeting and PussBama turning tail and giving them back Alaska.

      With a stipend.

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  13. JakeGint

    Bot 4k starter in Citi @ $4.42.

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  14. JakeGint

    BOT 5k more EXK @ 2.88-2.90

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  15. Yossarian

    JG, what do your fancy charts say about the next stop for my beloved crAAPL?

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