There’s room for Every-frickin’-body!
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It’s quite likely I’ll be busy today, so I wanted to throw a couple of brontosaurus burgers out there for your barbecuing pleasure in case things get all jiggy like yesterday.

‘Cause, make no mistake, we are entering into primo deal season here, if all of my bidness (sic) radar array are working in proper function.  My group is busier than a one-armed Palo Alto Perma-Bear at a self-congratulatory back-patting contest, and if the middle markets are moving, then I’m going bet the big boys have more cooking than just Uncle Warren’s Train Set purchase yesterday.

For one example, look for deals in the edumacation business, for one thing — companies like Apollo Group, Inc. [[APOL]] and DeVry Inc. [[DV]] and Career Education Corp. [[CECO]] have all been beneficiaries of a sea change in education delivery in the last decade or so.  

However, I think the paradigms are going to change even more drastically going forward.  I am getting this intuition from the myriad start-ups and later stage deals I am seeing in this space over the last 12 months.   As a result, I’d look for tuitions at all but the most exclusive post-secondary schools to come down in the very near future.   As a father of four near-genius children, I couldn’t be more pleased.

That aside, I think there’ll likely also be acquisitions in the Precious Metalspace as well,  as the various hedged and non-hedged behemoths squat and mark their territories by gobbling up junior miners with promising cargoes of “ounces in the ground.”   

To my chagrin,  I have no insight from an M&A perspective, as the majority of that deal making occurs north of our borders in the frozen outbacks of Canuckistan, completed by cigar-puffing investment bankers wearing snow-blindness goggles and polar-bear fur pantsuits.

Therefore, I can only point you out the promising junior and middle sized firms that may be in the snowmobile screens of various behemoths like Barrick Gold Corporation (USA) [[ABX]] , Newmont Mining Corporation [[NEM]] , Goldcorp Inc. (USA) [[GG]]  and AngloGold Ashanti Limited (ADR) [[AU]] .    These include:

Golden Star Resources Ltd. (USA) [[GSS]]

IAMGOLD Corporation (USA) [[IAG]]

Eldorado Gold Corporation (USA) [[EGO]]

Silver Wheaton Corp. (USA) [[SLW]]

[[CDE]]

Hecla Mining Company [[HL]]

Exeter Resource Corp. [[XRA]]

[[BAA]]

Ivanhoe Mines Ltd. (USA) [[IVN]]

[[EXK]]

[[PAAS]]

Silver Standard Resources Inc. (USA) [[SSRI]]

Compania de Minas Buenaventura SA (ADR) [[BVN]]   ———->>>> note: this one can be an acquiror or an acquiree, given it’s geographic interest.

and of course, the “catch all”  — [[GDX]] .

There are quite a few more that I’ve left off as I’m rushing, so feel free to add your own, and I may or may not add or comment on those later.

Best to you all, and one last thing:  beware the bear traps — and those calling petulantly from within them.

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Update: In a shocking and unexpected move the dollar is down again [[UUP]] .

Who could’ve seen it?  Heh. 

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Zut, Alors!

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Some of you may wish to take this opportunity to weep like a disgruntled Maginot Line engineer a week after the Blitz (see above).  

That’s right it’s crying time again.   That time when the gold and silver bulls that as of late have been so docile and yielding of fresh milk (as far as you know) have now grown into raging Tauruses (Taurii?), trampling your bloated carcass and rifling your pockets for loose Good & Plenties.

But let’s check our calendars shall we?   Has Sinterklaas arrived already, muling his burlap bag of kittens and freshly polished wooden clogs?  

Has Mother already placed a large roasted poultry on the dusty “for guests only” dining room table and surrounded it with gut-stuffing, cream-embossed ancillary vegetation  seen — thankfully — only once a year?

For that matter, have even any cleverly disguised neighborhood brats beaten on your manor door, claiming King’s Right upon any nougat resident?

No?

Well, then, heck — go order a Kung Pao or something.  Take the day off.   Feed the birds.    Go have a pigeon sandwich with pigeon sauce on the side.

Or if you’re of a mind, and have recently grubbed some coin selling an egregious biotech hand grenade with your one remaining three fingered hand, see if there aren’t some glittery bargains out there you may have missed the first time around.

Caution — nothing’s really much of a bargain, valuation wise.    To buy here you’ll have to accept the thesis that we are “dollar unhinged” at this point, and that gold and silver are going quite a bit higher.   If you’ve been with me since inception, you’ve probably bought into that much. 

We’ll look at the dollar later tonight.    There will be a low and a rebound, but I don’t think it’s coming until [[UUP]] is down below $22.00.   That said, we’ll remain cautious.

There’s not a ton out there that I’m eyeing to add, but that’s only because I’m so “jug full” at this point.     I  continue to think the silvers offer the best opportunity, so I may want to look at the double POS(ilver) [[AGQ]] .

I also think [[PAAS]] is an opportunity here, thanks to yesterday’s sell-off on the merger news.  

[[CDE]] is hardly taking a breath (and I forgot to include it in yesterday’s list, my bad).  

 Silver Standard Resources Inc. (USA) [[SSRI]] has been lagging, but it’s known to catch up rather quickly. 

  Silver Wheaton Corp. (USA) [[SLW]] is of course my favourite (sic) silver,and don’t forget mighty mite [[EXK]] .

On the gold side, my current favourite — and non-Jackson — Allied Nevada Gold Corp. [[ANV]] is pulling back here.   I also like Yamana Gold Inc. (USA) [[AUY]] and [[BAA]] on this pullback.    

Of the Jackson golds, Royal Gold, Inc. [[RGLD]] is “the one” I choose above all others, thanks to its royalty leverage.   IAMGOLD Corporation (USA) [[IAG]]   and Eldorado Gold Corporation (USA) [[EGO]] have also been champions and will see the 20’s by Christmas, in my opinion.

One last thing, platinum is really picking up after lagging here, and I think  [[PTM]] is very close to “BTFO”  in the $16.50 area.   This is one to have in your portfolio as a “core holding” along with [[SLV]] and [[GLD]] , in my humblest opinion.

That’s enough for now.   Go to the boulangerie and weep over an anisette and black-black coffee.

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(Ain’t talkin’ ’bout love!)

Ultra Silver Pro Shares [[AGQ]]

Allied Nevada Gold Corp. [[ANV]]

Yamana Gold Inc. (USA) [[AUY]]

Banro Corp. [[BAA]]

 

(My Love is rotten to the core…)

Citigroup Inc. [[C]]

 

(Ain’t talkin’ ’bout love……)

Coeur d’ Alene Mining Co. [[CDE]]

Powershares Double Silver ETN  [[DBS]]

Powershares Double Gold Long ETN [[DGP]]

Eldorado Gold Corporation (USA) [[EGO]]

Corriente Resources Inc.  [[ETQ]]

Endeavour Silver Co. [[EXK]]

Market Vectors Gold Miners ETF [[GDX]]

 

(Just like ah told you be-foah, be-foah, be-foah!)

Gold Fields Limited (ADR) [[GFI]]

SPDR Gold Shares [[GLD]]

Golden Star Resources Ltd. (USA) [[GSS]]

Hecla Mining Company [[HL]]

IAMGOLD Corporation (USA) [[IAG]]

NovaGold Resources Inc. (USA) [[NG]]

New Gold Inc. (USA) [[NGD]]

 

(Hey! Hey! Hey!)

Northgate Minerals Corporation (USA) [[NXG]]

Pan American Silver Corp. [[PAAS]]

Rubicon Minerals Corp. (USA) [[RBY]]

Royal Gold, Inc. [[RGLD]]

Seabridge Gold, Inc. (USA) [[SA]]

 

(Hey! Hey! Hey!)

iShares Silver Trust  [[SLV]]

Silver Wheaton Corp. (USA) [[SLW]]

Silver Standard Resources Inc. (USA) [[SSRI]]

Thompson Creek Metals Company, Inc. [[TC]]

Teck Cominco Limited (USA) [[TCK]]

 

(Ain’t talkin’ ’bout love……)

(Ain’t talkin’ ’bout love……)

(Ain’t talkin’ ’bout love!!!)

(fade out)

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[youtube:http://www.youtube.com/watch?v=iOkZ2zhCx5I 450 300]

Aside — if you weren’t such a piker, you’d join The PPT and catch me pounding out these winners like freshly minted doubloons on a daily basis…. tsk! tsk!

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[youtube:http://www.youtube.com/watch?v=8Qtgm5g5Gyo 450 300]

Fly Takes on the Mustachio’d Bearshitters via Liberal Use of The PPT Hammer

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Here’s the full vid, if you’re interested.   I tried to isolate the part where Bugs sells the King’s garden property to the Sheriff of Nottingham (pictured above), but couldn’t find that select clip. 

 I thought the Sherriff’s self-head hammering in that scene (about 4:00 or so in the full ‘toon) a particularly apt metaphor for the ursine intransigients, but I guess the scepter-malleting depicted above will have to serve as an able “second best.”  

He is making the Sheriff a “KNIGHT” after all, right?

Too unsubtle?  Pity. 

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More of the same wanton winning today, even as my activities in The PPT were relegated mostly to assembling one single ginormous call position in [[GDX]] .  

 I sought “deep-in-the-money” leverage here, purchasing the December 39’s and 40’s at $8.60 and $7.90 respectively.   I had to buy both at the ask, which I don’t like to do, usually.  However, I was unsuccessful with limit orders at lower prices, and did not want to wait another day, as I think GDX could launch again at any time.

I expect to hold these calls til near Turkey-Day, for what it’s worth.   I may shave some exposure if we have a large run-up earlier than I expect.

In other news, the “Killer Bee’s”  [[BAA]] and Beazer Homes USA, Inc. [[BZH]] continued to mint coin for myself and my compatriots in the bullion vaults of The PPT.      That’s just one letter of the alphabet in double digits…  I’ve another 25 in here ready to roll.

It’s been that kind of day in The PPT Wintocracy.  

 I continue to like IAMGOLD Corporation (USA) [[IAG]] , [[CDE]] and Silver Wheaton Corp. (USA) [[SLW]] for accumulation purposes here.

Tomorrow, I look at an interesting metal play starting with “A” — I think you’ll be intrigued.  

Until then, Slange (sic), and out.

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I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

Thomas Jefferson, – “O.J.” — the Original Jackson (Attributed)
3rd president of US (1743 – 1826)

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With this quote in mind, I want to again call to your attention that we are approaching the “August to Christmas” gold run, which generally includes a concurrent run in the gold and silver miners, as represented by the [[HUI]] index.   Almost every year in the oughts since 2000 has reflected this run, save of course last year, when we experienced a 28% loss due to a mass liquidation of all assets.

As reflected in the 2007 portion of the following chart, you can see the $HUI broke over 67% in the August to December period.   Note that a return to the old highs ($525) would only require a 44% run from these levels.

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I believe we should see a relatively rapid progression when this thing gets moving — from $375 to the June highs (about $405) and then very possibly back to our pre-crash ’08 old highs in the $525 area.  That kind of progression in the $HUI should mean good things for all of our precious Jacksons, including Eldorado Gold Corporation (USA) [[EGO]] ,IAMGOLD Corporation (USA) [[IAG]] , our leveraged royalty play in Royal Gold, Inc. [[RGLD]] and our gold ETF [[GDX]] whose $34 strike options I purchased last week for September expiry.

A strong $HUI will mean even better things for the silver Jacksons, as the price of gold is still well over the historic 40x silver “norm” at nearly 65x today.   Silver Wheaton Corp. (USA) [[SLW]] is my number one pick in this space, but  [[PAAS]] and even relative laggard Silver Standard Resources Inc. (USA) [[SSRI]] should be strong in this coming period.

As for non-Jacksons, I still like Allied Nevada Gold Corp. [[ANV]] despite the recent dilution, and Rubicon Minerals Corp. (USA) [[RBY]] , Golden Star Resources Ltd. (USA) [[GSS]] and [[BAA]] all look good from the junior gold side, and of course [[EXK]]   and [[CDE]] on the silver side.   I will also throw Hecla Mining Company [[HL]] out as a possibility because it tends to jump in “hot” precious markets.   Be warned, however, this last is a “trade only” position, and not one to keep even one day past its expiration date. 

If you want to buy and hold, stick with the Jacksons and a well diversified pool of juniors… one or two of those will be “lotto tickets” and the rest will be largely crap, but you will be happy for the lotto wins nonetheless. 

No excuses, ladies and gents.  It’s “sarious” (sic) time.  See you at the finish line.
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I know I haven’t given you a Jacksonian update in a while, so here’s last week’s results.  Note the bludgeoning in Thompson Creek Metals Company, Inc. [[TC]] due to the UBS (curse them) “bought deal” which means a “sold short” deal to those who are already holders.  No matter, once this overhead is sopped up, TC will move again, as will Teck Cominco Limited (USA) [[TCK]] .  Get these while they are cheap.

Name/			%		Portfolio	Portfolio
Ticker	21-Aug	28-Aug	Change		Value	Impact		Comments
ANDE	$        28.20	$      32.92	16.74%		$             9,940	1.00%		Big volume leap Friday. $33 is break.
EGO	11.02	10.56	-4.17%		$             9,895	-0.25%		Riding 20-day (10.49) on coil now.
GDX	39.30	40.18	2.24%		$           12,161	0.16%		Moving out of consolidation zone (>$40)
GLD	93.65	93.87	0.23%		$           10,796	0.02%		Coming out of coil as well, needs $95.50
IAG	11.93	12.02	0.75%		$           14,821	0.07%		Looks to test new highs (12.36+) this wk.
MON	83.78	83.00	-0.93%		$           13,168	-0.07%		Stuck between 20 and 200 day EMA’s.
PAAS	19.52	19.99	2.41%		$           12,006	0.17%		Breaking out of EMA coils (20/50/200)
RGLD	39.50	39.95	1.14%		$           11,039	0.08%		Closed above 200 day but lagging peers.
SLV	13.92	14.50	4.17%		$           11,779	0.29%		Nice leap on volume Friday, targ: $16.04
SLW	9.37	10.45	11.53%		$           10,150	0.70%		Nice move Friday, over $11 = free air.
SSRI	18.24	18.28	0.22%		$           10,634	0.01%		Still lagging all MA’s, and peers.
TBT	49.55	46.74	-5.67%		$             9,311	-0.32%		Broke below 38.2% fib @ 47.20, 44.90 target
TC	14.29	11.98	-16.17%		$             9,861	-0.96%		Massive dilution effect from secondary
TCK	26.73	25.20	-5.72%		$           24,315	-0.83%		RSI turning back up again, could be time.
Cash (000)	$        8.63	$    12.64	0.01%		$         12,644	0.00%		Added another $4k+ with final NRP sale
AVG (weekly)			0.40%		$       182,520	0.07%
AVG (monthly)			9.91%		Actual cash
AVG (inception)			25.14%		on cash return	21.68%

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Last I saw him he was running around, all ass & tail, gunning down shots of Don Julio and screaming “New Lows in July, damnit!!”  

But here it is August, and the only lows I’m seeing are the catatonic stair steps of [[UUP]] as it heads to its crypt in the basement.  Remember my post about the “noise zone” from the other day?  Here’s our result:

Looks like $23 is the make or break area, here.   If we get there, I think we get at least a bounce.   Would not shock me to see further deterioration after that.

Again, that means good things for our PM and Jacksonian buddies, and they all rallied today, with the overall portfolio up 3.23% today and now breaking to new highs since our May 1st inception, with a return to date of 26.62%.   My only regret is that I didn’t put more cash to work last week when I upped my Monsanto Company [[MON]] and Thompson Creek Metals Company, Inc. [[TC]] holdings back to their former strengths.  

Another interesting note — while Mr. Anderson — The Andersons, Inc. [[ANDE]] remains my top performer with a 92.81% return since May 1st launch, my second chasing close on his heels is also my newest pick Teck Cominco Limited (USA) [[TCK]] which is up an astonishing 88.76% since first purchase back on June 16th at $15.04.    Most of the PM’s are in the 20’s percentile range (still off their June highs, mind you) with IAMGOLD Corporation (USA) [[IAG]] leading that pack, up 32.06%.

The one Jacksonian clunker (for which I receive a large “cash” dividend) is Natural Resource Partners LP [[NRP]] , at a negative (4.11%).   I will consider NRP’s inclusion in the ongoing list, unless it’s laggard status improves.

As for the best of the Jackson’s currently, the silvers seem to be standing out nicely, with my favourite (sic) Silver Wheaton Corp. (USA) [[SLW]] breaking out past it’s 61.8% fib, and looking to continue here to resistance in the near term at $11.00 or so.   I of course will hold onto it until the bonds of time are loosed.   Silver Standard Resources Inc. (USA) [[SSRI]] also looks extremely strong here, with another breakaway gap, up over 6% today like SLW.  [[PAAS]] was only up over 5% today, but is exhibiting the same tendencies.  

Last, non-Jackson junior silver [[EXK]] was also very strong today, with a nice volume spike and also gapping up over resistance. levels.   It seems to be heading to it’s recent highs ($2.40) , and I’d say that’s going to come quickly.   My analysis is that the Central banks were so busy suppressing gold today that they forgot about her little brother, and the beach ball popped above the water for all to see….

Onto the non-Jackson golds–  I still like Allied Nevada Gold Corp. [[ANV]] , which is becoming almost Jacksonian in its stately and dignified rise here.   Take a look at it’s weekly chart when you get a chance — it’s a thing of beauty.   As mentioned in my comments section, [[BAA]] broke da Flummox out today over the $2.14 barrier I had mentioned in my chart the other day, and Ivanhoe Mines Ltd. (USA) [[IVN]] is looking to move higher.  I also still like Golden Star Resources Ltd. (USA) [[GSS]],  even though it’s rise was crippled by the Curse of DMG early this morning.  

On the non PM front, I still very much like Mirant Corporation [[MIR]] — which also has A and B warrants, if you are interested in that type of thing.   I also applaud any of you that took my [[CNXT]] breakout signal chart from the other day to heart.  I think they’ll be more there, btw.  

 That should be enough for you to digest for now, but check in my comments section tomorrow for trading updates.   Best to you all.

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