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Gold’s not been so hot, here, but I’m patient, and I’ll wait for it to break out of this oversold condition much like I’ve done many times in the past.   There’s been little conditional change in the broader underpinnings of this PM market.  We still have massive liquidity demand — if only for bandaging purposes on European and American debt problems.  We still have too much of our economy being crowded out by government creep (and creeps).   And earl and ag inflation, despite the recent sell-offs, are a constant threat.  

I am therefore comfortable holding my horde whilst exploring other alternatives that have been solid for me for years.  Among those, you know of UPS and MON, which I’ve spoken of many times.  I still like those for the very long term.   There are a couple of other names, however, that I have talked about much recently. 

These are stocks that I would categorize as “hold forever,” as long as they continue to carry and groom their historically strong management teams.  You just put these names away and expect the best.   Then one day, they reward you, like Markel (MKL) did this week. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I would encourage you to study up on Markel, some would say they are “the next Berkshire Hathaway.”  All I know is that these are very sharp guys on the insurance side… very workman-like and below the radar.  The kind of stock I like to hold forever. 

On the consumer products front, LANC (Lancaster Colony) — a name I’ve mentioned here beofre– is another gem that does nothing but grow wisely on your supermarket shelves.  It looks real nice right here: 

 

 Read up on LANC as well.  It’s good niche food business, with a sweet little dividend to keep things happy while you wait.  Slow and steady wins the race on these smart folks.

Last, for those of you who are jonesing for a gold pick, there  is benighted AAU, which #6 asked me about on my last blog post.  It’s looking oversold like the rest of the gold market, and it sure looks like it’s in opportune spot here resting on its 200 week EMA: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Patience will be rewarded, as it has been for a decade now. 

 Best to you all…

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Earlier today, le Monsieur mentioned that he would he would soon be turning his baleful eye — Barad-dûr-style  –upon some key food and bevvy stocks that he thought might survive the upcoming economic apocalypse.   I thought that somewhat coincidental given a recent visit I’d made to a very specialized niche food business in lovely Colombus, Ohio.

Granted, for large scale exposure, I’ve been buying the Dutch giant Unlilever (UL), mostly for its broad (if bland) array of well known consumer products like Hellman’s Mayonnaise, Knorr Soups, Ben & Jerry’s ice cream, Lipton teas… and even Slim-Fast for phat phucks who might overindulge.   I also really like their dividend in this market — almost 4% as of today’s close, and 60 basis points higher than American rival Proctor & Gamble.

The large behemoth aside, the smaller niche food producer I really like is Lancaster Colony (LANC).  These guys have done it right and I guess I have to ascribe it to management.   About ten to fifteen years ago, they got knee deep in the “glass & candle trade” that was all the rage at the time, thanks to fake Pop Americana crap like “Yankee Candle Company.”   When that business went south after formally enjoying ridiculous margins for years, it crushed the stock over a two year period (1998-2000).   But I have to hand it to LANC‘s management — they got back into the food business in a big way, and now own some of America’s most iconic niche brands, including Sister Schubert dinner rolls and Marzetti salad dressing and sauces, Texas Toast under the “N.Y.” brand.  This weekly chart shows how it’s been very strong on a relative strength basis, and how close also we are to a break out:

 

LANC is also another solid dividend play, with continuous dividends paid or increased since the mid-60’s.    Keep an eye on the $64 mark… if we break from there, it’s off to the races for LANC.   And well deserved.  It’s just a nicely run “under the radar screen” play that will continue to pick up niche brands where they will hold dominant market share.  Dominant market share means pricing power and steady growth.   What more could a citizen ask for in these uncertain times?  Besides, if things get really bad, we’ll all be eating their tasty croutons (yes, they’ve dominant share in that market too).

Bon appetit!

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