The Honest Trader

Eye on Recon Technology: Small Cap Chinese Energy-Focused IPO

the divot - fair comments. I think saying I am pumping sudden growth is a little aggressive as the company did grow revenue 25% year over year and net income 57% (for 9 months ended March 31). Also, it doesn't take a lot of revenue growth for this company to grow earnings 50%. I am simply putting forth an idea that I think will make people money. Sure there are lots of other Chinese companies that have lower PE's and probably have had low pe's for while (trading on the bulletin board, etc.) and with huge floats. However, this is a fresh company with limited investor awareness and a microfloat traders love. Therefore, I think you can pick up 50% with much better odds here than other companies because there is an upcoming catalyst with earnings that will put this on the radar. If nothing else, it should be a good trade through earnings when I would bet you will get a run into double digits if not more. We will see, but that is my thesis on this trade. Surely, is not risk-free. Thanks for the comments though.

China Wants More Gold

here's the video of GOP Kirk talking about China buying gold

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Duoyuan Global Water IPO Analysis: A Pure Play on Chinese Growth

Video on DGW (Duoyuan Global Water Inc.)
Here's a video from thestreet.com that has a guy on who says DGW could go to $30. That is my initial target here then maybe $32 which would make a round 100% gain from the IPO price.

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China's Water Crisis Is an Investment Opportunity

Video on DGW (Duoyuan Global Water Inc.)
Here's a video from thestreet.com that has a guy on who says DGW could go to $30. That is my initial target here then maybe $32 which would make a round 100% gain from the IPO price.

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The Death of Gold?

Is Gold (GLD) a Buy Here? Technical Analysis

This dude is pretty popular on the net and indicates right now on the charts an entry in the GLD is about as good as it gets.

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Is China Preparing to Buy Gold?

Here's a technical analysis video on why now is "as good as it gets" to buy gold from a technical perspective

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Investors Rush into Duoyuan Global Water's IPO

DGW seems reasonably valued here based on what it has done, but I think it could run to $30 on momo and optimism. My full post on DGW here:

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Gold as an Investment, Deflation / Inflation Wrap Up

Good article. I agree with the article here on owning gld and inflation coming in the not so distant future. I often link up a lot of gold/inflation articles on my blog and will link this one in my next set of links to read.

the honest trader
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Time to Go Long Natural Gas and Short Oil?

I think UNG is a good buy here as I detail on my blog repeatedly that the volume is telling us something.

the honest trader
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Banks No Longer Need FDIC's Legacy Loan Taxpayer Bailout

I am not surprised by this as I never thought the program would work as banks would not price their assets at a point where investors would buy them (low bid / high ask - no trade!). Additionally, if banks sold into this Legacy Loan Program it would not have provided capital (contrary to what the media puppet heads would tell you) unless they sold their assets for more than they were on there books at (which is unlikely). The program would have freed up some liquidity, but not increased capital. In fact, it would have more likely decreased capital as they would have had to sell at a price below the booked value and take a loss. That's why this program was DOA although the financial media got giddy about it. It's interesting though as this was one of the catalysts for the monster bank rally and now that the banks have been able to raise capital there is no need. Was this all in the script?

the honest trader
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Wednesday Closing Update

3:30-4:00 Rally Time for the Market Magicians

Yet again, per usual, the market magicians engineer another run into the close. This seemingly daily action is probably starting to build on itself as whomever is doing it, is doing it, so traders are jumping on board this "trend" at the end of the day which amplifies the action into the close - just what the market magicians want I suppose. Plus, today we ripped commodities lower, dollar higher and limited equity damage with that last 15 minute jig. Well played. Funny thing is if we continuously sold off huge into the close (in the last 15 minutes) CNBC and the media army would be talking about hedge fund manipulation and the need for the SEC to investigate, etc. But, since it is an up move - no reason to question the irregularity. CNBC is a puppet show (for the most part at least).

Who is this cloaked figure continually providing the late day bid?

the honest trader
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Wednesday Outlook: Commodities, Global Markets

3:30-4:00 Rally Time for the Market Magicians

Yet again, per usual, the market magicians engineer another run into the close. This seemingly daily action is probably starting to build on itself as whomever is doing it, is doing it, so traders are jumping on board this "trend" at the end of the day which amplifies the action into the close - just what the market magicians want I suppose. Plus, today we ripped commodities lower, dollar higher and limited equity damage with that last 15 minute jig. Well played. Funny thing is if we continuously sold off huge into the close (in the last 15 minutes) CNBC and the media army would be talking about hedge fund manipulation and the need for the SEC to investigate, etc. But, since it is an up move - no reason to question the irregularity. CNBC is a puppet show (for the most part at least).

Who is this cloaked figure continually providing the late day bid?

the honest trader
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How Much Gold DO You Need?

I think almost every "mainstream" investor in the world is underweight precious metals (I mean most average investors probably don't even have gold or silver in their portfolio, what happens when these allocations move to even 2-5%)... as this changes the precious metals and underlying metals stocks should surge.

the honest trader
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GM Finally Dies - Does the U.S. Have Similar Symptoms?

it is surprising to many who have not experienced your experience at UPS and just imagine if the whole country obtained that mentality... I do worry about that.

the honest trader
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On Jun 02 03:40 PM Konrad wrote:

> #2. Very well said.
>
> A summer before I went to college I had worked for UPS, that was
> the precise mentality. "Hey youngin' our standard here is 1,000 boxes
> an hour...slow down with your 1,600"

GM Finally Dies - Does the U.S. Have Similar Symptoms?

That is a good point about GM surviving on reputation which is to a degree similar to the US bond market at current rates.

Also, i understand my article is simplistic but it was meant to be - just to get people to think about the possible parallels and give a few thoughts I have from being around Detroit (having grown up outside of this area, but now living here).


On Jun 02 11:52 AM wg wrote:

> you for to add that GM survived for so long on its reputation. Nobody
> thought it could fail, so everybody lent it money. Sound like a comparison
> with the present good ole US of A under the present administration?