Archives

Please click on a button below to jump straight to that category.
April 21, 2010

US Global (Gearing In Practice)


I recently wrote about gearing. Some industries really lend themselves to gearing. Let’s see how that works in practice. One of my best investments of all time was US Global Investors (GROW: Nasdaq). US Global is the manager of various mutual funds with a particular focus on Eastern Europe and natural resources—both sectors that I am optimistic about. In the asset management business, as assets ... Read More
Categories: Investments
Positions Mentioned:
March 24, 2010

MF Global


I normally invest in companies, but occasionally, something sets up just right for what I’ll call a trade. A trade is an investment that is intended to last from a few days to a few months depending on various conditions. Basically, this is an investment with a near term catalyst. The goal is to buy shares right away, average down if it goes against ... Read More
Categories: Investments
Positions Mentioned:
March 20, 2010

Victory For Gold


Which business am I? Would you be long or short? In 2009, I had 2.1 trillion of revenue and 3.5 trillion of expenses, for an operating loss of 1.4 trillion. For 2010, I’m predicting a small increase in revenues to 2.2 trillion while expenses stay roughly constant at 3.5 trillion. Through heroic efforts, losses will be staunched to only 1.3 trillion this year. I ... Read More
Categories: Investments
Positions Mentioned:
March 16, 2010

Mining Services (Part I)


Gold is going higher, but it’s hard to find an intelligent way to gain leverage to it. Sure you can own gold, but if it more than triples from here in the next five years, I’ll be shocked. You can buy the producers, but they all have warts. Either they’re overvalued, they keep diluting investors, their mines are in countries that you’d be scared ... Read More
Categories: Investments
Positions Mentioned:
March 14, 2010

Didipio


We owned shares in Oceana Gold, (OGC: Canada). They had stable yet depleted mining assets in New Zealand that were clearly worth more than the whole company. They also had acquired a gold property in the Philippines named Didipio. Didipio, once built, was going to take the company to the next level. We were enamored with it, but it was going to cost AUD$154 ... Read More
Categories: Investments
Positions Mentioned:
March 12, 2010

The CEO Who Said Too Much


By now, you know that I like get to know management. When investing in smaller companies, you are really just investing in people. When you are risking your own money, you can never know enough. There’s nothing like alcohol to ferret out the truth. I was at an industry conference to learn more about a company that I owned a small position in. The ... Read More
Categories: Investments
Positions Mentioned:
February 16, 2010

Mining Services Part II


In Part I, I made the case for mining services companies and in particular for those that are focused on greenfield projects. Now, I want to talk about two companies I own, Aeroquest (AQL: Canada) and Energold (EGD: Canada). To summarize what I wrote in Part I, the mining industry is not spending enough to replace annual depletion, much less grow production. The majority ... Read More
Categories: Investments
Positions Mentioned:
Scroll Up