Wednesday, November 28, 2012

No More Chinese Companies

I inquired about a company (I only knew it was operating in an emerging market) and when I opened the prospect I cringed.


No More Chinese Companies

Why's that?

CHINA ELECTRIC MOTOR INC (CELM): bought at $7.37, now $0.07 (no, it is not a typo);

LONGTOP FINL TECHS ADR (my statement doesn't show any symbol, the company must have been de-listed): bought at $38.13, now $0.03 (again not a typo);

CHINA AGRITECH (CAGC): bought at $5.97, now $0.29.

SINO-FOREST delisted

Now you know the answer. And all of them with the exception of the last one were recommended in a paid subscription for a financial newsletter (perhaps with the exception of CAGC) so they were not bought on a whim - I have my fair share of them but not these ones - the above companies were analyzed by knowledgeable, smart people.

So my warning to everyone, do not invest in Chinese companies.

I know there are companies who have fared well, but think of what could happen.

The U.S. government will default on their huge debt and China will have to confiscate the American investments to recover some of their money. Or the U.S. will start an after WWI Germany style inflation in order to pay off the debt and China would need to respond somehow again by confiscating American investments. Hope they will not start the WWIII or even threaten with one over this issue.

Friday, November 23, 2012

Ring the Nasdaq Opening Bell with Questrade

It is a contest and if I win and ring the bell - mark my words - the market will collapse! Prepare to heavily short the markets then. It will be the blackest of all black Mondays or Thursdays or Fridays or all the other working days of the week.

Thursday, November 22, 2012

Mega Uranium



I liked this company: it had 'Mega' and 'Uranium' in its name and it had a mine in the business friendly Australia. I bought the stock close to its peak when Uranium seemed to become one of the most precious commodities. I averaged it down but to no avail.

Average cost: $3
Price now     : $0.14


Wednesday, November 21, 2012

The Big Board


Yes, I am like them!

From the book 'Slaughterhouse-five', by Kurt Vonnegut:

"It was about an Earthling man and woman who were kidnapped by extra-terrestrials. They were put on display in a zoo on a planet called Zircon-212.

These fictitious people in the zoo had a big board supposedly showing stock market quotations and commodity prices along one wall of their habitat, and a news ticker and a telephone that was supposedly connected to a brokerage on Earth. The creatures on Zircon-212 told their captives that they had invested a million dollars for them back on Earth, and that it was up to the captives to manage it so that they would be fabulously wealthy when they were returned to Earth.

The telephone and the big board and the ticker were all fakes, of course. They were simply stimulants to make the Earthlings perform vividly for the crowds at the zoo–to make them jump up and down and cheer, or gloat, or sulk, or tear their hair, to be scared shitless or to feel as contented as babies in their mothers’ arms.

The Earthlings did very well on paper. That was part of the rigging, of course. And religion got mixed up in it, too. The news ticker reminded them that the President of the United States had declared National Prayer Week, and that everybody should pray. The Earthlings had had a bad week on the market before that. They had lost a small fortune in olive oil futures. So they gave praying a whirl.

It worked. Olive oil went up."