We remain cautious on the market’s near-term outlook. We did, however, add a long position in Qualcomm (QCOM) last week on expectations that the stock, which recently broke out, would rise further before running out of steam. Our near-term target for the stock is $57.   Gold and copper prices… Read More

Buy Qualcomm (QCOM) at the market.   Read More

Romanian President Traian Basescu stated the other day that the government, the country’s largest employer, must cut 29 percent of its public sector jobs in the next two to three years to reduce out-of-control spending. Those cuts will only add to the pressure the government faces in creating jobs and… Read More

First, the position in Gabriel Resources (GBU.TO, GBRRF) continues to provide exposure to one of the largest undeveloped gold deposits in the world. The mine, located in Romania, is more than 80 percent owned by the company, and about 19 percent owned by the Romanian government. While it had been under some pressure lately, the stock is acting relatively better; it’s now is off its one-month low and continues to be a buy for new subscribers.   The shares of Ivanhoe Mines (IVN), whilehaving essentially treaded water since our recommendation, also remain a recommendation, as they offer, in addition to gold, significant leverage to copper (which keeps setting new highs).   Recently, the company issued rights to its existing shareholders. Each shareholder will receive one right for each common share owned as of 12/31/10; every 100 rights allow the holder to buy 15 common shares of Ivanhoe Mines. The rights must be exercised by January 26th of 2011; they can also be sold in the open market.   With that move, the company expects to raise up to $2.1 billion; the dilution caused by the issuance of 85 million new shares (estimated), is expected to be in the order of about 15 percent of all shares outstanding. Nevertheless, we think the positives of the right offering are significant, as they will allow the company to raise capital in a relatively attractive, lower-cost, way.   Both Gabriel and Ivanhoe are buys for new subscribers.   Read More

Earlier today, we closed out our trade on Amylin Pharmaceuticals (AMLN). The stock filled the gap in its price chart, meeting our objective and giving us a profit of 28 percent in two months. Las week the Technology Select Sector SPRD ETF December 18, 2010 21 put option expired worthless. That leaves us with just two open trades, both in the mining sector.   Our Gabriel Resources (GBU.TO, GBRRF) position is up more than 240 percent from our original recommendation and we still see good things ahead for the company. Gold has come under a bit of selling pressure, but is acting quite well. The inflation pressures we mentioned above auger for higher precious metals prices in the months to come. The situation in Romania, meanwhile, should ultimately pave the way for the company to bring its gold mine on line. The Romanian government has survived once no confidence vote this week and faces another on Thursday. Its austerity measures and layoffs of civil servants will make it eager to create jobs, which Gabriel’s mine will do. The stock is a buy for new subscribers.   The shares of Ivanhoe Mines (IVN) have essentially traded water since our recommendation. Gold is little changed since then, but copper prices have been moving higher. We expect the shares to respond at some point, with a rally back to the upper $20s likely, which will give us a tidy profit on the trade. Ivanhoe is a buy for new subscribers at its current price.   Next regularly scheduled issue, Tuesday, December 28.   Read More

Sell Amylin Pharmaceuticals (AMLN) at the market.   Read More