Thursday, April 25, 2013

Real Estate Pump and Dump Scheme-Fabian Calvo

Fabian Calvo of processes $100 million of distressed real estate annually. He says we are in the process of a pump and dump real estate crisis.

Calvo contends, “The big hedge funds and big private equity are buying all the real estate right now. . . . So, when they start dumping, they will be dumping to those buyers who will be getting money for free from the government. It has all the characteristics of a pump and dump scheme.” Calvo claims, “No money down loans are up nearly 20%.” Calvo predicts, “It will be bigger than the last one because it will be a bursting of multi-bubbles–not just the housing bubble, but the bubble in U.S. Treasuries. It will take out the real estate bubble. They will both go down together.” Calvo contends, “You have a mad scramble for hard assets globally. It’s not just gold. Sovereign wealth funds are buying real estate like crazy.” Join Greg Hunter as he goes One-on-One with Fabian Calvo of

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Oil Surges Most In 5 Months With eMini Volume Near Lows Of Year / by Tyler Durden /
After touching multi-year highs amid the exuberance of liquidity sloshing around the world, Oil became too glaring a concern and two weeks of suppression took the only Central-Bank-’Governor’ to much more comfortable levels. But, the last week has seen the biggest 5-day jump in WTI in 8 months and today the biggest jump in 5 months. It seems the ‘Brent Vigilantes’ are back. Equities traded in a very narrow range after yesterday’s #HashCrash and eMini volumes were among the lowest of the year. An early afternoon ramp, aided by EURUSD, failed at overnight highs and collapsed back to VWAP as the machines were in charge once again. Treasuries rallied from early morning high yields ending the day lower in yield (TSY yields down 1-2bps on the week against a 30 point rally in the S&P!!) Durable goods dismal data just reinforced Europe’s donut and stirred the bad-is-good mantra as Trannies outperformed, but interestingly once again the Dow was unable to break above pre-Boston levels. FX markets were relatively calm for once as gold, silver, and copper all gained. VIX ended up for the day by 0.25vols at 13.75%.
WTI Crude on the resurgence – must be all the growthiness in the data – or simply the Brent Vigilantes back..
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Winnebago Industries, Inc. (NYSE: WGO)

Winnebago Industries, Inc., together with its subsidiaries, manufactures and sells recreation vehicles primarily for use in leisure travel and outdoor recreation activities. It manufactures motor homes, which are self-propelled mobile dwellings that provide living accommodations and include kitchen, dining, sleeping, and bath areas, as well as a lounge; and optional equipment accessories, such as generators, home theater systems, king-size beds, upholstery, and interior equipment. The company offers motor homes constructed directly on medium- and heavy-duty truck chassis, which include engine and drivetrain components; motor homes built on van-type chassis onto which the motor home manufacturer constructs a living area with access to the driver's compartment under the Winnebago and Itasca brand names; and panel-type vans with sleeping, kitchen, and/or toilet facilities under the Era brand name. It also manufactures travel trailers and fifth wheel towable products under the Winnebago and SunnyBrook brand names, as well as original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The company sells its products through independent dealers primarily in the United States and Canada. Winnebago Industries, Inc. was founded in 1958 and is headquartered in Forest City, Iowa.
Before discussing potential trading opportunities, please take a look at the 1-year chart of WGO (Winnebago Industries, Inc) below with my added notations:
1-year chart of WGO (Winnebago Industries, Inc) WGO had been rallying for most of the last year until March. Over the last (4) months the stock has found support at the $18 level (blue). Last week the stock broke that $18 support. The breakdown occurred on a slight increase in volume, which should add validity to the breakdown.
The Tale of the Tape: WGO has broken its support at $18 and the stock should be moving lower. A short position could be entered on any rallies back up near $18 with a stop placed above that level. A break back above $18 would negate the forecast for a move lower.
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McAlvany Weekly Commentary

David Stockman on the Corruption of Capitalism

About this week’s show:
-Rogue Central Bank
-Rigged markets
-Radically different world to follow
-Stockman’s latest book: Click here
About the Guest: David Alan Stockman is a former U.S. politician and businessman, serving as a Republican U.S. Representative from the state of Michigan and as the Director of the Office of Management and Budget.

Read | Subscribe@iTunes
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Beer Maker's Breakout Signals It's an Immediate 'Buy': SAM

Large beer brewer such as Anheuser-Busch InBev (NYSE: BUD) and Molson Coors (NYSE: TAP) may have something to worry about concerning Americans' evolving tastes.

According to the Brewers Association, a trade association representing small and independent American brewers, in 2012, craft brewers' percentage of the U.S. beer market rose to 6.5%, up from 5.7% in 2011. This 15% year-over-year growth stands in stark contrast to the major brewers, which are experiencing flat growth and losing market share.

As craft brewers blossom, the big beer brewers appear to be faltering. In the last two quarters of reported earnings, for example, BUD had two straight negative earnings surprises, falling short of analysts' estimates by 7.9% and 5.1%.

The largest -- and arguably most successful -- U.S. craft brewer is Boston Beer (NYSE: SAM). While the maker of the popular Samuel Adams brand currently claims only 1% of the total U.S. beer market, it has about 20% market share in the craft beer arena. (more)

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Sinclair – Full-Blown Panic As People Ask “Where Is The Gold?” / April 24, 2013
Today legendary trader Jim Sinclair warned King World News about the full-blown panic that has erupted in both the financial world, and the gold market as well, as people ask, “Where is the gold?”  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.

Sinclair: “People have to understand what the motivation was for the recent takedown in the gold price.  It was so well organized, strategized, and executed by the gold banks, in unison, even though it has had the unintended consequence of creating a massive and worldwide buying frenzy in the physical gold market.

There is a comparison that is obvious today because I was very involved in the $1 billion loan which had to be made at the time that the Hunt’s positions went into default (in 1980).  This was at a time when Bache & Company, and Merrill Lynch were rumored to be at least on the fence, if not entirely insolvent.

You have to understand that back in 1980 when gold had risen to $887.50, and silver traded above $51 an ounce, the financial world was in a full-blown panic and many people firmly believed the dollar was going into oblivion.

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