Gold shares up 225%
On 24th June 2019 we published an article under the heading “New Gold Bull” in which we drew your attention to the fact that the US dollar price of gold had broken up convincingly above resistance at around $1340. Below is the chart which we included with that article.
The Confidential Report - August 2020
US Economy
A picture is beginning to emerge of the performance of the US economy as the pandemic progresses. The second quarter’s statistics point to a very sharp contraction, as was to be expected, but the second quarter was probably the worst quarter. The US economy’s gross domestic product (GDP) shrank by 9,5% in the quarter – which was expected given the widespread
Silver on the move?
One of our clients, Mr. Koot Jordaan, drew our attention to the fact that the rand price of silver, which has been underperforming gold since 2011, may be making an upside breakout.
Mr. Jordaan suggested that silver in both rands and US dollars had been moving in an extended sideways pattern. Consider the charts:
Silver in US dollars
On Balance Volume
The On Balance Volume (OBV) indicator was developed by Joseph Granville in 1963, when he published his book “Granville’s New Key to Stock Market Profits”. Basically, Granville drew investors’ attention to the importance of the daily volume traded in a share. His motto was “volume leads price” – by which he meant that you will often see sharp rises in volume,
Oil
In previous articles we have suggested that the price of North Sea Brent Oil would be a good benchmark for the world’s economic recovery from the COVID-19 pandemic. The first indication of this predictive role was when oil broke down clearly through support at $50,80 per barrel on 28th February 2020. At the time, this downside break was difficult to understand because the full
Stadio
When it listed on the JSE, Stadio was one of those shares which was widely perceived to have almost unlimited “blue sky” potential. Riding on the back of Curro’s success and Chris van der Merwe’s (the CEO at that time) reputation, it was thought that Stadio would do as well as Curro, if not better. Like Curro, it was thought that there was a virtually no limit to Stadio’s potential
The Confidential Report - July 2020
America
A week ago, world markets were discounting a rapid recovery from the COVID-19 pandemic. Then the number of cases in America began to spike up. Until the middle of June there had been a steady downward trend and then suddenly the number of cases began to rise with 31 000 on the 20th of June, 33 000 on the 23rd, almost
The Cannabis Company
Until September last year, you could easily be forgiven for not paying much attention to the thinly traded penny stock, Labat. Styling itself as an “investment holding company” it seemed to have a diverse collection of businesses which did not hold much potential and lacked a clear focus.
In September 2019, however, it changed its focus and decided to become a “fully integrated cannabis
Rand Recovery
The rand is arguably one of the most volatile and difficult currencies to predict. It is very liquid and is the preferred emerging market currency of international currency speculators. It has become a ping-pong ball which reflects the spasmodic shifts between “risk-on” and “risk-off” sentiment on the world stage.
If international investors get scared, then the rand
Covid in Context
It is perhaps a good time to stand back from the hectic and extraordinary events that have accompanied the corona pandemic and try to put them into some sort of context from an investment perspective. It is steadily becoming more and more certain that the corona bear trend (if we can even call it that) has been short and sharp and completely unlike any previous bear trend in history. This is because it was not brought