Ruthless trader

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Currently, Yahoo! Finance is the most popular personal finance Web site in the U.S., according to research from Hitwise [with] 34.9 percent share of the market, as of the week ending June 10, 2006. The next most popular personal finance Web site was MSN MoneyCentral with a 13.67 percent share, followed by CNN Money with a 4.50 percent share.

By comparison, Google Finance ranked number 38 for the week ending June 10, capturing only 0.28 percent of all visits to major financial sites.
 
The month of May has rendered steep losses for gold and silver. It was only in the first week of May that gold hit a 27-year high of 730/ounce. How could such a slump ensue?
Moreover, Price Water Coopers, a global professional services firm, just published an analysis of the world's 40 largest mining companies (ABX, NEM, FCX) which revealed several bearish signs for gold mining companies that are in the brewing. Equally surprising to most industry analysts is that Gold's technicals are a "buy".

The study by the organization mentioned above cited the following:

1) Massive capital spending by miners-- which is worrisome because extra spending results in increased production. In 2005, capital expidenture grew 31% to 31 billion. According to New York- based Commodity-Consulting Company, 63 million of gold was produced in 2005.

2) Increases in unit costs and concern over increased volatility-- which is factual evidence that companies are mining in regions that would not have been profitable at lower metal prices. This will result in additional supply and inventory pile-up that could crush gold prices.

But, from a technical perspective point of view, Gold is in a classic buying area, as it’s recent sharp decline having halted exactly at its 200-day moving average and in a zone of strong support. What is believed to have happened in the last couple of weeks is that, after a steep decline, we witnessed a classic example of “capitulation” where weak hands lose their nerve and throw in the towel.

In examining the 1-year chart, one can point very at the capitulation in the last 3 to 4 weeks followed by 2 days of stabelized prices. Gold has reacted back to its 200-day moving average, and it is way below its 50-day moving average, deeply oversold and is currently just above a zone of strong support. It should be pointed out, however, that it is not likely to go straight back up from here. The vicious plunge last week took its toll on sentiment and so gold is likely to thrash around for a while forming a base area, probably between about $540 and $590, which may continue for some weeks or even a month or two, which will will allow the 50-day moving average to drop down towards the 200-day. Any retreat towards $550 short-term will be regarded as a major buying opportunity, which will have the advantage that a fairly close stop can be employed to limit downside.

Gold's recent parabolic advance looks decidedly tame compared to the late spike of the 70s. Barron's stated that fact as well in their May 22nd edition of 2006. When you take inflation into factorization to equal the 1980 peak of 850 in real terms, gold would have to rise to 2500/ounce. At its recent peak, it was only about 220/ounce above its 1983 and 1987 highs. That said, breaching above the 1983 and 1987 peaks was a major technical support event. Should gold drift lower in the near future, it could be expected to provide even stronger support.



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China's lack of freedom of press and expression is once again reminding all of us of their unease with the information highway. Both SINA and SOHU have been blocked by authorities in Beijing, apparently due to their failure to effectively block access to sites with content the government considers offensive. Is this rediculous or what!?
 
Aside from strong fundamentals, Technicals are pointing to a new 52 week high on ORCL. Today's volume is pretty heavy. If 15 is breached, look for 16.25 till you have any resistance
 
Between June 12 to 16, Richard Emmitt( General Partner and Director at American Medical Sciences Holdings), purchased a total of 650,000 shares for $16.24 per share. He now owns a total of 1.3 million shares or approximately 2% of the company's outstanding shares. On June 13, another director at the company, Thomas E. Timbie, also bought 5,000 shares for approximately $16.32 each, doubling his holdings in the company.


Does anyone has an opinion on this? It appears that shares have lost nearly 18% since June 5th, after the company announced that it had agreed to pay $715 million for San Jose, Calif.-based Laserscope, a maker of lasers for use in surgery. The stock is currently trading only slightly above its 52-week intraday low of $15.05 from October. This may bea nice technical bounce, no?
 
Originally Posted by Jack Haddad, 6/16/06, 1:07PM
Bought back 100 June 65.00 calls at .05 and wrote the July 60.00 at 6.30
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Sold 1 block of TSO at 64.81, and bought back the july 60 calls at 6.00/contract. All in all, my net gain on 10,000 shares on this block was 1.25/share
 
Quote from Jack Haddad, MD:

Originally Posted by Jack Haddad, 6/16/06, 1:07PM
Bought back 100 June 65.00 calls at .05 and wrote the July 60.00 at 6.30
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Sold 1 block of TSO at 64.81, and bought back the july 60 calls at 6.00/contract. All in all, my net gain on 10,000 shares on this block was 1.25/share
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All I have remaining in TSO is 3000 shares from 69.30
 
Quote from Jack Haddad, MD:

Between June 12 to 16, Richard Emmitt( General Partner and Director at American Medical Sciences Holdings), purchased a total of 650,000 shares for $16.24 per share. He now owns a total of 1.3 million shares or approximately 2% of the company's outstanding shares. On June 13, another director at the company, Thomas E. Timbie, also bought 5,000 shares for approximately $16.32 each, doubling his holdings in the company.


Does anyone has an opinion on this? It appears that shares have lost nearly 18% since June 5th, after the company announced that it had agreed to pay $715 million for San Jose, Calif.-based Laserscope, a maker of lasers for use in surgery. The stock is currently trading only slightly above its 52-week intraday low of $15.05 from October. This may bea nice technical bounce, no?
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the AMMD purchase of Laserscope surgery center will be accretive to cash earnings per share in 2007 and accretive to reported earnings per share in 2008 and beyond. Unfortunately in this day and age, making an acquisition that will benefit earnings in two years is just too long for many investors in the environment that we are in today. Therefore, the stock is not reacting to the recent insider buying.
 
Purchased 3 blocks of AMMD at 15.50 When a solid track record like Vertical Group is buying AMMD, I want to be on their side. The group has a solid track record with other investments, including Wright Medical Group, Lifecore Biomedical and Ventana Medical Systems. Vertical Group also recently spent $7 million to boost its stake in Ev3 by 500,000 shares (see Inside Scoop, "Vascular Firm Gets Another Injection," May 13, 2006). Vertical Group has traded this stock in the past. They last sold American Medical shares from November 2003 to December 2004. In eight separate transactions, Vertical Group sold approximately 785,000 shares at average prices ranging from $11.01 in November 2003 to $21.42 in December 2004 (prices are split-adjusted).
 
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