"Damn Esh, I never thought I’d see the day where you turn into Col. Grabbing data that’s absolutely pointless to push your agenda. I never thought you’d turn down this path."
Sorry
@Crows but I don't have an agenda and I don't have an interest in this company whatsoever except a passing interest. Someone tagged me in here and I've responded with an opinion although I really didn't want to get drawn in here or waste the time.
Personally I won't invest in companies who value their future income forward 44 times on last years earnings or 22 times for that matter. Just like I wouldn't have invested in cryptos, it's just rampant speculation which is not for me. I used to speculate at the margins but since the end of last year when the repo market blew up I stopped and sold out and am not regretting it in any way. For me the game is about wealth preservation not wealth creation.
44 years or 22 years for that matter is a very long time especially when a company doesn't even have the underlying commodity to mine for that long. We all know the super pit would not have been sold if it had anything like 44 years or 22 years of production left in it. The companies who sold it knew what they were doing and so did the banks who assisted them, the closure liability is probably around $400 million alone. We have a couple of companies in Western Australia who are priced on producing between 500kozs and 1Mozs of gold for multiple decades to come but we know that quality plus million oz resources are increasingly scarce and we needed exploration to find them yesterday. The pricing of these companies are not set by any form of reality about the future just the bankster ETFs that lead the markets higher while the proponents of these funds still maintain control.
The Fed just started buying the indexes last week that's how desperate they are to keep the bubble alive. It's all political to get Trump over the line until the election but it is by no means sustainable. People should stop burying their heads in the sand and just look at what was happening to the GDX and GDXJ in the third week of March not to mention the investment grade and junk bond ETFs which were staring down a no bid situation. No wonder Blackstone, Vanguard and J P Morgan were running around trying to get markets shut down, their need for liquidity to match the wall of redemptions from their funds was failing badly and they were about to go to DEFCOM 1.
So the Fed put Blackstone in charge of the bailout of the fallen angels to save the whole kit and caboodle with a contract that relies on paper thin Chinese walls (that coincidentally doesn't extend to the top....lol) to ensure there are no conflicts of interest......lol. What about the conflict of interest arising out of the Fed chair Powell having upwards of $11.6 million invested in Blackrock funds, the same company he is putting in charge of managing part of the balance sheet he is supposed to be responsible for? Then you have the fact that the largest component of the Fed's emergency response commitments to the crisis, in balance sheet terms, is a $219 billion USD liquidity swap line given to Japan. This swap line, in balance sheet terms, is more than twice as big as the repo market assistance (bail out), it's bigger than the corporate bond bailout and it's almost 10 times bigger than what was offered to the real economy in the payroll protection program (the PPP). It seems curious to me why the Fed would make the biggest commitment to Japan, above the overnight money markets, above the investment grade bond markets and way way above the support it gave for small and medium sized businesses in its own country that account for more than 50% of economic activity? Well it doesn't take a genius to figure out what is going on here. The bank of Japan has been monetising its own government debt for years by buying stocks thorough ETF funds at home and abroad, ie it has been printing money and investing it in US stock exchanges since before 2015 if my memory serves me correctly. The swap line to Japan was the only quick way of directly juicing the equity markets as the collapse was unfolding. Words by themselves only work to a limited extent without market participants seeing an actual change in direction. If anyone was following the collapse closely many of the raft of facilities the Fed was rolling out during the March market collapse were having absolutely no effect in stopping the sellling. The Fed used to have a dual mandate of maximum employment and stable prices which has now disturbingly morphed into keeping the equity market bubble alive at any cost and jumping to the tune of its political master. Frankly I am very happy I don't have my money invested in any bubble stocks in this zombie market. Interesting times however for people watching on from the sidelines.Esh
