1…We remain nearly fully invested in stocks that have declined to price levels that we find  undervalued. We have said too many times that the overall stock market based on several significant gauges is wildly overvalued in too many (but not all) publicly traded stocks. We invest when specific stocks have suffered severe declines and by our analysis are severely undervalued. Undeniably, they often decline even more, but that has always been our method. 2… Using major value gauges: stock market dollar value to Gross Domestic Product, Insiders heavy selling of their own shares, Price earnings ratio using GAAP is 25 times earnings (GAAP reflects the true earnings), market’s price to sales ratio, the market is approximately 30% overvalued. Payback cold be brutal. 3…Some Business television stations, which can be very useful and informative should suggest prudence and patiently waiting for stocks to correct down in price to good buying levels. One station never did and now they compete with “Leave it to Beaver” and “Lone Ranger” reruns for viewership. Bad advice on market direction and horribly overvalued on air stock picks ruined the credibility that they thought they had and investors have not forgotten.  Average investors are far better than many of the so called experts. For years, floor traders, investors and analysts would ask us by phone or email as to “how can they put that person on.”  Clueless!….still…… […]

K.C., je viens de comparer DJIA avec HUI et je te fais part de mes convictions relatives aux perspectives du marché des métaux précieux. J’aimerais en retour de connaître tes impressions.    Je pense que nous nous trouvons actuellement devant une  forte possibilité de départ du marché des aurifères, que les industrielles y participent ou pas, en hausse ou en baisse. Un secteur d’investissement a toujours ses caractéristiques propres et celui des aurifères ne fait pas exception. À mon avis, il est prêt pour le décollage. Je crois que les banksters et le US Treasury ont épuisé la grosse part de leurs capacités de manipulation avec tous les scandales et les poursuites civiles en Amérique et en Europe. Je dirais que l’heure des aurifères est arrivée et que la course vers de nouveaux sommets sera digne d’intérêt.                                                                                              Salut, Raymond  Reponse de K.C.  Mes impressions Ray?  D’accord..je suis avec toi..mais le voyage est long et fatigant…                                                                 ENGLISH  K.C., I just compared the DJIA and HUI and here are my convictions related to the […]

INSIDER SELLING… Last week, we saw what was among the three the largest dollar value totals of “insiders” selling their own personally held shares in the companies where they are employed as officers and directors in over twenty years….. yes, they work there! Again, their stock sales totaled an astounding value of $624,538,529 while dwarfing the total value of buying of $32,305,119…..it is quite a contrast. These sell levels in the past have always been concurrent with the beginning of what led into brutal bear markets. The higher the valuation that the market carries, the more brutal would be a bear market. But why no bear market? At least not yet! The market has been carried and benefited from near artificially low interest rates and central banks’ intervention by buying stocks. More on that soon. Our advice is to continue to take profits and if investing to “insist on value.”  Yes, there are numerous companies that are very undervalued and cheap by many historical gauges.         

Pointe Claire, Quebec, March 8, 2017                                                                                                          We remain almost fully invested in our specific stocks but have said too many times that the stock market based on several significant gauges is wildly overvalued in too many (but not all) publicly traded stocks. We invest when specific stocks have suffered severe declines and by our analysis are severely undervalued. Undeniably, they often decline more before they turn around; but that has always been our method. We leave open limit orders for specific stocks at prices that are below the prices they are trading at. We never are able to buy all the shares we want and zero shares of many companies that never decline to the limit order prices we want to pay, but we do get real bargains. This was a strategy described thirty years ago by the late renowned investor Sir John Templeton. We have expected the market to suffer 20% to 30% corrections over the past three years, each time to be followed by returns to the upside, yet the harsh downsides did not occur. Those normal corrections would have prevented the stock market (and many stocks) from its current extremely high overall valuation which makes […]