Thursday, June 6, 2013

There Is Now A Huge Risk Of A Collapse In Major Countries / June 5, 2013
Today a legendary value investor warned King World News that the financial world is in an incredibly precarious position and that for major countries “there is a big risk of a collapse.”  Jean-Marie Eveillard, who oversees more than $65 billion, also spoke about gold.  Below is what the legendary investor had to say in his interview.
Eric King:  “The Germans have now admitted that more money printing is on the way and they support it.”
Eveillard:  “Well, you know the Germans they have repeatedly accommodated the French, Italians, Spaniards, and others.  Every now and then they complain, but in the end they more or less capitulate.
I’m not even sure if the German public is aware of the fact that Germany, and accordingly the German taxpayer, is already on the hook for a substantial amount of money.  I’m also not surprised that Mario Draghi would be pressuring the Germans, and that the Germans then decided to print….
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Chart of the Day - Micron Technology: MU

The Chart of the Day is Micron Technology (MU).  The stock has had a steady string of Trend Spotter buy signals and still has a 96% technical buy signals and a 72.81% Relative Strength Index.  The stock was found from sorting the New High List for frequency.

The company has established itself as a worldwide provider of semiconductor memory solutions. The company's memory solutions serve customers in a variety of industries including computer and computer-peripheral manufacturing, consumer electronics, CAD/CAM, telecommunications, office automation, network and data processing, and graphics display.

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Bill Gross: Investment Outlook (June 2013)

Wounded Heart

by William H. Gross, PIMCO
Joseph Schumpeter, the originator of the phrase “creative destruction,” authored a less well-known corollary at some point in the 1930s. “Profit,” he wrote, “is temporary by nature: It will vanish in the subsequent process of competition and adaptation.” And so it has, certainly at the micro level for which his remark was obviously intended. Once proud, seemingly indestructible capitalistic giants have seen their profits fall short of “everlasting” and exhibited a far more ephemeral character. Kodak, Sears, Barnes & Noble, AOL and countless others have been “competed” to near oblivion by advancing technology, more focused management, or evolving business models that had better ideas more “adaptable” to a new age.

Yet capitalism at a macro level must inherently be different than the micro individual businesses which comprise it. Profits in total cannot be temporary or competed away if capitalism as we know it is to survive. Granted, the profit share of annual GDP can increase or decrease over time in its ongoing battle with labor and government for market share. But capitalism without profits is like a beating heart without blood. Not only is it profit’s role to stimulate and rationally distribute new investment (blood) to the economic body, but the profit heart in turn must be fed in order to survive.
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EU Approval of Blockbuster Drug Could Mean Big Returns From This Pharma Giant

If you think pharmaceutical companies have a license to print money, think again.

Of say 5,000 compounds that could possibly treat a disease, only about 250 (or 5%) will have sufficient potential to be tested on mice or other animals. Of these 250, 10 will then be tested on humans in Phase 1 trials. Of these 10, roughly two will eventually be approved for marketing. Even then, the chances of producing a blockbuster drug with more than $1 billion in annual sales are slim.

Gilead Sciences (NASDAQ: GILD) is a biotech play with the potential to generate a blockbuster -- one with potential sales of $20 billion. The drug is called sofosbuvir, and it is an oral treatment for the hepatitis C virus (HCV).

Gilead specializes in treatments for HIV and hepatitis C. Already, the company is one of the world's largest providers of HIV treatments. And it could soon become an even bigger force. On May 28, the biotech firm announced the European Commission granted approval for Stribild, its HIV treatment tablet. (more)
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Doomsday poll: 87% risk of stock crash by year-end

New crash coming? When? Before year-end?
In “Stocks for the Long Run,” economist Jeremy Siegel researched all the “big market moves” between 1801 and 2001. Bottom line: 75% of the time, there is no rationale for “big moves.” No one can predict them. Maybe technicians and traders can pick short-term moves the next second. Maybe tomorrow. But the long-term “big market moves?” No way.

Getty Images
Traders work on the floor of the New York Stock Exchange on August 4, 2011 in New York. The Dow plunged 512.76 points.
So why predict an “87%” chance of another meltdown in 2013? Because in the real world of statistical probabilities, historical facts and expert opinions danger signals are flashing wild. In mid-2008 we summarized the predictions of 20 experts over several years. Predicted a meltdown in a few years — markets crashed two months later. Fast.
In retrospect, it was inevitable, thanks in part to the hype, arrogance and incompetence of Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson who failed to prepare America.
The warnings are again accelerating. And so is the happy talk from Wall Street casino insiders, about rallies, housing recoveries, perpetual cheap money. Don’t listen. The next crash will happen by year-end. (more)

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C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW)

C.H. Robinson Worldwide, Inc., a third-party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. It offers transportation and logistics services, such as truckload, less than truckload, intermodal, ocean, and air freight transportation, as well as other logistics services, including transportation management, customs brokerage, and warehousing. The company has contractual relationships with approximately 56,000 transportation companies, including motor carriers, railroads, air freight, and ocean carriers. It also engages in buying, selling, and marketing fresh produce. It offers its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. The company operates through a network of 276 branch offices in North America, Europe, Asia, South America, and Australia. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota.
Please take a look at the 1-year chart of CHRW (C.H. Robinson Worldwide, Inc.) below with my added notations:
1-year chart of CHRW (C.H. Robinson Worldwide, Inc.) CHRW has been holding a very important level of support at $56 (green) for almost the entire duration of the 1-year chart. No matter what the market has or has not done over that period of time, CHRW has held that $56 level all but in the month of August. The stock approaching $56 again should provide another bounce higher, but if the overall market continues to sell-off, CHRW could break that support.
The Tale of the Tape: CHRW has a very strong level of support at $56. A trader could enter a long position at $56 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.
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McAlvany Weekly Commentary

Charles Vollum: See Everything Priced in Gold

About this week’s show:
-Gold in the ultimate form of cash
-Gold is what you own when you’re not speculating
-Change your mind about how you value everything
About the Guest: An active investor in gold and silver since 1980, Charles slowly began to realize the importance of having a standard of value not tied to any country’s currency and monetary policy that in fact, rising and falling ‘gold prices’ were really more accurately viewed as falling and rising ‘currency prices’, measured against the relative stability of gold. This insight led to the creation of the Priced in Gold website in 2007 –

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