Steady as She Goes

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The information contained herein is accurate to the best of the author’s knowledge, but the material and interpretations contained herein should be independently verified by any party using this information as part of any research, editorial, or decision making process. Any views expressed here represent the author’s opinion only, and as such readers should do their own research and come to their own conclusions if they are using the opinions contained herein as part of any larger due diligence process. The author may have long or short positions in the companies mentioned and may be buying or selling in the market depending on which way the wind is blowing at any given moment. Opinions are subject to change without notice. Prospective resources, predictions, comparisons, financial projections, and extrapolated metrics are, by their nature, subjective and interpretation dependent. The topics covered are highly speculative and involve a high degree of uncertainty and risk. Speculative companies can and do go to zero. By using this site, you agree that the author(s) and Hydra Capital is/are not responsible for any damages incurred by the use of the presented materials. Anyone reading these blog posts should know that they are the author’s thoughts and opinions, which are not to be confused with or construed as research reports.

Disclosure: The following represents my opinions only. I am long AOT, CDR, EQX, GOT, GTWO, HSTR, KNT, LBC, MMA, MOG, NEM/NGT, PTK/POET, TAO, TNZ, TUK, VIO, and VZLA (image courtesy of Pixabay)

Two months have gone by since the last time I wrote and overall I’d say that oils are weaker, golds are stronger, coppers bounced but aren’t sure what to do next, and uraniums are enjoying a resurgence thanks to a combination of good headlines and fundamentals. Overall, there’s not a lot to say… the S&P keeps making new highs, market breadth seems good, and for now, companies doing good things and getting good results are being bought. China is trying to stimulate without bringing out the bazooka, the Middle East is a tinderbox, Ukraine continues its battle, the Fed(s) is/are easing, and the chatter of a BRIC alt-dollar currency (backed at least partially by gold) surfaces from time to time. The copper/metal-intensive “green” push continues to provide a backstop for a more or less fully functioning resource market (i.e., not looking frothy yet). Meanwhile, Canada LNG is keeping folks more or less sanguine overall on Canadian gas producers, despite the low western Canadian natural gas prices. Oh and did I mention that gold hit another record high today and yet, the market roar is more like a mew? Interesting times. Overall, the indexes are saying that environment out there is permissive to making money in the market. They always say that markets climb a wall of worry, and there’s plenty to worry about if you want to… and yet, new highs on the indexes persist… so the climb continues. In my bag, I try to carry names that I think represent special situations (think “alpha” ideas) that can perform in just about any reasonable market tape. In four words, steady as she goes would sum up my overall stance. Some company specific comments follow: