Image by Getty Images via @daylifeI know that, when everyone starts to panic, most investors see the U.S. dollar as a safe haven. This week investors are piling into U.S. Treasuries as they have in the past during past times of fear and uncertainty. The problems in Europe have shaken confidence and the market plumeted yesterday on those fears. It would appear that, what the market has not done, is price in any hopeful sign that the European Union might actually come up with a plan similiar to the U.S. T.A.R.P. plan, which, in hindsight, was very positive for U.S. stocks, and which did not lose any money for taxpayers in the long run. If the E.U. comes up with such a plan in the near term, there could be a dramatic pop in markets that are currently ruled by fear. There seems to be no pricing in of any good news that may eminate from Europe in the coming week(s).
In the mean time, the best "safe haven" of recent years, gold bullion, and by proxy, gold miners, have taken a beating this week. They have taken a beating only if you consider the price of gold over the course of the past month where bullion prices spiked as high as $1900. Compared to the rest of 2011, gold is still up a healthy 20% or more. It is only back to mid July prices. That, my friends, is a healthy pullback, not This is not 2008 all over again. The fear is overblown. It may well be 2009 all over again as equities test those "generational lows" once again. I know this may be a contrary view, when compared with many market followers, but if I am right, this is the time to take the advice of Warren Buffett who famously said "buy when all others are fearful".
I am a buyer right now. A buyer of select equities in tech and pharma. A buyer of gold miners. A buyer of top Lithium miners. A buyer of select Canadian banks. If things go lower, I will buy more. Today I doubled down on small and mid tier gold miners like San Gold, and Brigus Gold. I even bought speculative stocks like TNR Gold and Nautilus Minerals. I bought more Talison Lithium. I bought more Rodinia Lithium.
I like Cenovus Energy and Suncor in the oil sector, TD Bank, RBC and BMO in banking.
I even like Manulife Financial as they are trading at an all time low this week. I like solid Techs like Intel, Microsoft, Apple and Google. I am watching HP since they announced thier new CEO today, Meg Whitman. I think there are great buys out there, and I am taking advantage of the irrational fear as everyone runs to the not so safe haven of the U.S. dollar.
I do not like the prospects for the American dollar, the Euro or, for that matter, most fiat currencies. Gold is bought and sold by central banks around the world, and it would not surprise me to hear in the coming weeks that countries like Italy have sold some of their gold stocks to pay down debt. Certainly that would account for the current weakness in bullion prices, which will rebound as fiat currencies, including the USD once again, lose favor with investors.
No one has a crystal ball, least of all this writer. However, it is those investors who seize the moment, who most often come out ahead of the herd. I hope you are one of those.
Marriages, by their very nature, can be rocky relationships. Arguments, diversions and power trips, money problems and hurt feelings can result in an ugly divorce.
Marriages can also bring together soul mates who bring out the best in each other, and all those around them, while producing strong offspring and enhancing their neighborhood and their community.
Image via CrunchBaseResearch in Motion (RIM-TSE) has been somewhat of a scorned bride this year. The investing public used to be entirely enamoured of her technology charms and her extensive cash dowry, but of late, there has been money problems (share price drop).
Wilan Technologies has been one of our favorite stocks since it began refocusing from it's 1990's technology development and now is focused almost entirely on licensing and defending it's many patents in wireless, internet and video. We have been acquiring more of this stock for the past 9 months.
Today this stock rose 11%, and we feel it is just the start of a realization of some tech investors that it is truly a "patently valuable company for the 21st century"! Most Wilan technologies were developed over 15 years ago, but the company is only now being recognized as holding the underlying patents for many of today's top tech toys and business applications.
Over the past two years (Since it has been aggressively protecting it's patents and licensing it's technology) Wilan has signed licensing agreements with 212 tech companies worldwide including many of the biggest brand names as shown here:
This year, 19 more companies, including Apple, will be forced in a Texas Court Case, to either pay for their past transgressions involving these patents, or to license them from Wilan.
Wilan inventions include:
3G Cellular– A range of wireless communication technologies used in modern cellular handsets.
BluetoothTM – A wireless technology that sends and receives data over short distances, creating a personal area network (PAN).
DOCSIS – A standards-based technology to provide high-speed internet and other data over coaxial cable networks.
DSL– A standards-based access technology that provides broadband Internet access over twisted pair telecommunications wiring.
Wi-Fi – The underlying technology of wireless local area networks and other products based on IEEE 802.11 specifications.
WiMAX – Broadband wireless technology that provides longer-range wireless connectivity based on IEEE 802.16 specifications.
V-Chip –A technology that allows users of multimedia devices to filter out programming they consider inappropriate for their children to watch, whether that be from a television broadcast, DVD/VCR/DVDR or computers that have the ability to receive and process broadcast signals.
Wilan has been making money throughout 2009, in the toughest market conditions, is expanding it's business monthly, increasing cash flow and profit and began paying a dividend in 2009. It's management is completely focused, motivated and is professionally suited to the task of increasing shareholder value.
As I have said for the past six months, we believe Wilan is at least a $10 Stock (probably more) and it is still trading under $3. Last month we doubled down on our investment in Wilan Technologies, even though our initial purchase was already up over 65%. We initially bought Wilan at 1.45, doubled down at 2.40, bought more at 2.94, 3.00 and 3.01
Important date for Wilan Technologies: March 11th 2010- Texas court case - Markham hearing, where a who's who of major companies, including Apple Inc., Dell Inc., Hewlett-Packard, Intel Corp., Sony Corp. and retail chains such as Best Buy Co. Inc. and Circuit City Stores Inc.will find out how much they have infringed Wilan's patents. Look for a settlement and possible licensing agreements which will bolster Wilan's bottom line.
The BRIC countries, (Brazil, Russia, India and China) are once again looming large on investors radar screens. For the average, retail investor, there are a number of mutual funds which highlight good companies in, what are considered, four strong, emerging markets. Some of these funds include companies from other Asian and South American countries (Indonesia and Argentina come to mind), but concentrate their portfolio on the BRIC block as they are seen as the emerging tigers of the worlds future economy for various reasons. There is, however, a serious problem with two of them.
No matter the last 15-20 years of supposed free market reforms, China is still a communist country with democracy only a distant dream! Time and again, they have proven that the rule of international law does not apply to their country. Copyright infringement is rampant and far reaching, graft is still part of local and national government business, and as for human rights, well, they don't apply. Lately, the country's leadership has been working, through the proxy of it's nationally owned companies, to soak up much of the worlds raw material, from oil and gas, to fertilizer, coal, and ingredients for making steel.
No supposed "free marketer" dares to challenge policy in China, for fear of being ostracized by the great, red, business machine. Just ask Google! Ominously, the recent run up in the Chinese markets is driven mostly be inexperienced Chinese investors, with visions of sugar plums dancing in their uneducated investment heads. That can only end badly with many of them learning the hard way that what goes straight up, always comes down. In the final analysis, will the rules of business, be guarded by the rule of law? Maybe, but, contrary to many other wide eyed investors, I'm not putting my money on it, or into China.
Russia has a shrinking population, a suspect banking system and clings to a Government structure of "strong man rule" under the guise of democracy. Russia has proven time and again, that they have more crime bosses, than CEO's. Just ask any of a dozen good companies who have arrived from the west during the past 15 years, only to be cheated out of billions in real estate, oil, gas, you name it. The names of these business are too numerous to mention, but they certainly know who they are. Or ask any of a number of honest journalists who have challenged the status quo in that country (Oh, sorry, you can't ask them, because they are dead).Until a proper democracy and the rule of law replace King Putin, I won't be risking any of my meager Retire funds there either.
That, my friends, leaves us with half a BRIC!
India is the "largest democracy in the world", and it just elected a very pro business government that cannot be voted out of office for the next five years. Companies like Tata Motors, Taj Hotels and Resorts, Bajaj Holdings & Investment, Nadir Godrej-led Godrej Industries and lender "Yes Bank" may well be the Microsoft, P&G or Google of the 21st century. Business Week certainly seems to think so! India has a disproportionate number of the worlds software engineers as is evidenced by the number of Indian nationals who emigrated to Silicon Valley during it's heyday, and who now are back in India leading cutting edge companies. Does India have it's problems? Sure it does, but during this global recession, what country doesn't? Exactly! Many believe that India is right now, where China was 20 years ago with regard to business development. Does this sound like a good prospect for your retirefund? It does to me. You can buy a pure Indian Fund on the NYSE.
Brazil is already, so far ahead of the rest of the world in green energy production that it is entirely self sufficient. Besides owning great reserves of oil, almost 50% of it's energy is derived from locally produced ethanol, and they are, far and away, the world leaders in this technology. In Aerospace, Embraer, is a world leader in the building of regional jets in competition with Canada's Bombardier. Banco do Brasil is not in nearly the jam that many American Banks find themselves in, and other companies such as Brazil Telecoms (telecommunications) and Braskem (chemicals) are now on international investors radar screens. Yes, they also have their problems, but they are a growing phenomenon, and Brazil is also a democracy.You can buy a Brazil Fund currently on the NYSE.
Now if we can just get the fund managers to come up with a basket of great companies from these two emerging powerhouses, you might be able to throw just half a BRIC into your Retirefund, and reap the rewards.
Premium Internet Domains (Addresses)
![Reblog this post [with Zemanta]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tlKx5Oel4p2VnC14aHfS3PVfiA_7Km2Hu9ej9SFReXZXTGHAJVKI7NrwUevueZbXYBT8NQwMD0WqWkHJSGCgcglj2DWl4Ru_PlqSju5cnc6UVcjUkNysumx8XqEqKUsfofhXYQH_VOo8voKkjivNc-=s0-d)
![Reblog this post [with Zemanta]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_veqSnOduCVv9rZrHfbZTC9qOdOeSc5nWCK5I_PWEsGo_ogQe0DRA0oG5qZvQN15cQ7XBJy2t8JKh9yFr5VkATsqMvGCtPSXZBwBoSGi1dFwjo99R0a3gSCUVdAia_qqGeqR327MRSnwG-0GmUjACk9=s0-d)
