Mike L

China, Shipping and the Great Commodity Carry Trade

Mark Anthony states that "..How to play natural gas? Buying the United States Natural Gas fund (UNG) is the best way."

I wonder of he still feels that way now that it has totally collapsed since he wrote this? Indeed, in his next blog he said UNG was at 'rock solid bottom' and all over Yahoo he was crowing about having put massive new positions into UNG, and it was now his number 2 hold. SInce then it is in freefall..massive and horrific freefall.

Anthony in dialogue with Yahoo contributors, including myself who warned him of the huge counter party risks in UNG, stated there was no substantive 'counter party risk'...even though they couldn't issue shares anymore and a huge contango was occurring! (He claimed this was GOOD for UNG, lol!)

Of course, as we see now, UNG has collapsed badly since then and with further to fall. This is consistent with so very many other plays that Anthony has touted all over the web. Lots of hype just before a horrific collapse. (EXM for example, which he claimed to 'triple up' on the very day before it collapsed in freefall..due to his mis stating eand mis-understanding their earnings statement, plus their dilutive secondary).

Follow this guy's advice at your extreme peril.

The Inflation / Deflation Debate and China's Commodity Carry Trade

Wow, let's just look at anthony's final paragraph about UNG for an example of how to treat the rest of his cobbled up screed. He states UNG is at rock bottom and has no more downside risk...and since he wrote this, it has collapsed horrifically and has much further to fall! Indeed, just about everything he predicted has gone in the opposite direction, or was flat wrong...(consistent with his previos track record of course).. and he has no idea what is meant by 'counter party risk'..which he ascribes to SLV, which holds silver bullion to fully back its ETF...yet he recommends UNG which has terrible counter party risks! as has been evidenced by its price action. Just see this excerpt for example re UNG, and you will see all you need to know about 'mark anthony's' credibility.

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UNG

Words like 'desperate' and 'counter party risk' are not what you want to see in what you invest in..

stocks.investopedia.co......

....The fund has also, for all intents and purposes, reached its position limits set forth by the CFTC, all but deeming UNG a closed-end fund due to its inability to issue new shares. The lack of new shares has led UNG to trade at an almost unheard of premium of 11% over its NAV.

Swaps
In a desperate maneuver to create more units, UNG's managers entered into a $250 million over-the-counter swap contract in July, and recently announced that they had also entered into a $500 million natural gas total return swap. By entering into these swap contracts, UNG has added significant risk to shareholders by introducing a large amount of counterparty risk into the equation. It's a desperate move by a desperate group.

China, Shipping and the Great Commodity Carry Trade

Well, the inevitable collapse of SWC shares due to the GM BK announcement re their contracts, has now occurred. This is the news that Mark Anthony stated would be GOOD for SWC!

Instead it has tanked SWC very badly, as expected.

Precious Metals and Shipping: Some Recent Developments

31October, your comments were excellent, and highly prescient. EXM went into total freefall collapse, exactly in line with what your points would predict. Unilateral counter party charter contract defaults, rendered EXM a disaster overnight this week, as they cancelled dividend and share price collapsed.