What is a Global Warming Industry?

Just rec'd what i consider to be a sketchy type of small stock reco. I receive these junk mail items from time to time, and i take the time to read them, especially for entertainment purposes. Hitting the mailbox today is something called the Green Investor Report, with an exclusive report about the "only public company 100% focused on fighting global warming." I punch in the ticker GWSO on the pink sheets. Did a reverse split and name change this past summer. The first PR that i can find was about 2 weeks ago. Their website claims 61.7mm shares outstanding. Based on today's close of 2.46, the mkt cap is $150mm. Click the headlines, and we find this company operates in three places; 1) a patented GEM hybrid engine, 2) LETG solar energy technology, and 3) water purification technology. The newsletter states the "global warming industry" (whatever that is) will be $51 billion by 2015. Finally, this stock could soar by 500% or more.

The small print is always the best part. The Green Investor Report (GIR for short) was paid $1.1mm for various fees and costs for publishing and distribution of this newsletter. The advertisement was paid for by a third party shareholder of GWSO. GIR was not paid by GWSO, and GWSO and its management had no involvement in the distribution of GIR. GIR is not a registered investment advisor, but may hold shares of GWSO and may buy and sell the stock at anytime. GIR does not guarantee the accuracy of any information compiled from various sources.

If anything is unclear to you about this special opportunity, please re-read my entire blog post again. Good luck.

Gold Blasting Higher, Dollar Weakens

Congratulations on your yellow metal trade. Click here for my previous post. You are making bank and a nice way to close out the quarter. Until the trend changes, no reason to fight the tape.

CRB Index - Does it Matter

I may be dating myself, but the CRB Index was once cited as a main snapshot to understand inflation. The main components of the index are:

Energy (17%) - consisting of crude oil, heating oil, and natural gas.

Grains (17%) - corn, soybeans, wheat

Industrials (17%) - copper and cotton

Livestock (12%) - live cattle and lean hogs

Precious metals (16%) - gold, platinum, silver

Softs (21%) - cocoa, coffee, orange juice, and sugar.

The above chart is tellin'? Yes?

Another interesting tidbit...the Bureau of Labor Statistics incorporates "owners equivalent rent" as a component of its Consumer Price Index (CPI). CPI does not take into account home prices, but measures rent. This "rental" figure is a whopping 30% of CPI. So, think about it, the stunning home price increase over the past decade was not captured in CPI, and as more folks sought to own homes, they did not demand rental units. Therefore, CPI did not have any pressure due to a stable rental market. Now we might have the opposite effect going forward, as home prices fall, and more homeowners (subprime, adjustable rate holders, etc etc) are forced out, they will seek to rent again. Also, those previously contemplating home ownership are frozen out of the market too, and therefore they stay put...aka = Renting. Therefore, we have additional demand coming into the rental property market, which could mean a significant pressure on CPI since it represents 30% of CPI. How might this impact the decisions from policy makers in the months ahead? Good luck.

Bernanke Caves In

So, the Bernanke put exists. The global stock market moved up strongly over the past 24 hours on the back of Bernanke's 50-50 rate cut. This clearly signals his style and mojo closer to Greenspan than he originally led on. There is no clear indication what might happen at the next meeting on Oct 30th. Market participants are now left debating whether this is helping Main Street or Wall Street. Time will tell.

Johnny Rogue was spotted at USA Today, today. Check it out here. Good luck.

After a Rate Cut, then What?

More fall out from Northern Rock this morning. Don't think we can't have a bank run in the States? Click here for article on what is happening in Northern England. The most striking point is that Lloyds Bank was in talks with Northern Rock days before the Bank of England rescue, and Lloyds didn't even want a so-called juicy steal and a big discount to where the shares once traded just weeks earlier. Obviously they didn't like what they saw! Bearish!

The squeeze is on all over the globe, and investors seem content to think the U.S. Federal Reserve will rescue everybody with a rate cut tomorrow. The question all investors should ask..."after the rate cut, then what!" I suspect it will be hard to beat expectations..it always is!

Dennis Green flips after loss to Chicago Bears.

Today, the BEARS are who we thought they were. The Nonfarm Payroll numbers are out, plus downward revisions for the previous two months. It's UGLY out there and the BEARS are growling. We'll see if we get a bounce based on a rate cut that now seems inevitable...or will Wall Street declare a fed woefully behind the curve and anything they do today or on the 18th is much too late and a recession is unavoidable. Stay tuned....