Wednesday, March 5, 2014

What 10-Baggers (and 100-Baggers) Look Like

Now that it appears clear the bottom is in for gold, it’s time to stop fretting about how low prices will drop and how long the correction will last—and start looking at how high they’ll go and when they’ll get there.
When viewing the gold market from a historical perspective, one thing that’s clear is that the junior mining stocks tend to fluctuate between extreme boom and bust cycles. As a group, they’ll double in price, then crash by 75%... then double or triple or even quadruple again, only to crash 90%. Boom, bust, repeat.
Given that we just completed a major bust cycle—and not just any bust cycle, but one of the harshest on record, according to many veteran insiders—the setup for a major rally in gold stocks is right in front of us.  (more)

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Market Outlook: Warning: 'Fear Index' Points to Potential Market Decline

The bellwether S&P 500 traded completely inside of last Monday's trading range from Tuesday through Thursday of last week, indicating near-term investor indecision, before staging a tentative move to new all-time highs on Friday. Friday's move to new highs, despite a sharp downward revision in Q4 2014 GDP and amid worries about Russian intervention in Ukraine, was an impressive show of bullish investor conviction and is characteristic of a market that wants to go higher.

Last week's new 2014 high in the small-cap Russell 2000 index, matching those in the S&P 500 and in the tech-laden Nasdaq indexes, was another positive sign. However, as discussed here last week, both the Dow Jones Industrial Average and Transportation Index continue to lag and must also establish new 2014 highs to confirm and corroborate the recent strength seen in the rest of the market.  (more)

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Sarepta Therapeutics Inc (NASDAQ: SRPT)

Sarepta Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery and development of RNA-based therapeutics for the treatment of rare and infectious diseases. Its lead product candidate is eteplirsen, an antisense PMO-based therapeutic, which is in Phase IIb clinical development for the treatment of individuals with Duchenne muscular dystrophy. The company is also involved in developing treatments that are in Phase I clinical trials for infectious diseases, including AVI-7288 for Marburg virus; and AVI-7100 for H1N1 influenza virus. In addition, it focuses on developing preclinical research product candidates for the treatment of other neuromuscular, infectious, and rare diseases.
Please take a look at the 1-year chart of SRPT (Sarepta Therapeutics, Inc.) below with my added notations:
1-year chart of SRPT (Sarepta Therapeutics, Inc.)
SRPT is a stock that can move quite a bit. After finding support at $30 in March the stock ran all the way up to $42. Once it came back down to $30 in April, SRPT then ran up to $47. One more bounce on $30 came in August and that time the stock rallied up to $55. November’s drop took SRPT below $30, and after rallying all the way into January; the stock hit $30 as resistance, as expected. This week the stock has hit $30 again.

The Tale of the Tape: The $30 level is key to SRPT. A short play could be made at $30 with a stop placed above that level. However, a break back above $30 would be an opportunity to get long on the stock.
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S&P 500 Snapshot: Ukraine Fears Were a Buying Opportunity

Click to view Today, as far as the world markets were concerned, the Crisis in Ukraine evaporated, and yesterday’s anxieties, in retrospect, were a buying opportunity. The EURO STOXX 50, which plunged 3.02% on Monday, rose 3.02% today. The S&P 500 surged at the opening bell and drifted to its 1.65% intraday high about 15 minutes before the close. A bit of selling trimmed the gain for the day to 1.53%, the biggest one-day advance for the index since December 18th. And of course today’s close set another record high.
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PIMCO Has a Problem with Canada

by Camilla Hall, Financial Times, New York
“Pimco, the world’s biggest bond investor, has slashed its exposure to Canada – one of its top country holdings – as it predicts home prices will start to fall this year amid broader concerns that it could be the next global housing bubble ready to burst.
Pimco’s flagship $237bn Total Return Fund, managed by Pimco founder Bill Gross, halved its exposure to Canadian debt – which includes provincial bonds – to 2 per cent of its portfolio in the third quarter from almost 4 per cent a year earlier, according to data compiled by Morningstar. It cut its exposure every quarter in that period, according to the data.
The fund has been “bearish” on Canadian housing for some time and expects a decline in housing activity and prices this year as mortgage credit tightens and borrowing rates increase, Ed Devlin, who oversees Canadian investments across Pimco, told the Financial Times.”  …  Read on
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Helium Shortage: More Than Just Hot Air

Helium is a source of energy that’s often overlooked – but its shortage could be devastating.
Helium has become an essential element in many sectors of our technology economy. It’s used in medical equipment like MRIs and lasers, and the inert gas is used in electronics manufacturing, and also has aeronautics applications.
Unknown to most energy investors, there’s actually a helium shortage that’s been developing over the past several years. Thanks to booming demand, especially in Asia, there are fears that the world may run out of the gas within 25 years.
With an economy that relies (increasingly) on the fuels of technology to burgeon our future, this shortage is a big deal.  (more)

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