A Corporate Debt Crisis Is Underway… And Nobody Cares

A Corporate Debt Crisis Is Underway… And Nobody Cares By Justin Spittler Investors no longer give a damn. That might sound harsh, but when things are this backwards, you have to tell it like it is. You see, I read something recently that disturbed me. I had to pinch myself to make sure I wasn’t dreaming. It was an article I recently stumbled upon in Bloomberg. In it, the author explained how U.S. companies are issuing debt at breakneck speed. You see, U.S. companies have already issued more than $360 billion worth of investment-grade bonds just this year. Corporate America is now on pace to issue the most investment-grade debt in the first quarter since 1999. I don’t have to remind you how that ended… But here’s the really crazy part… Investors are lining up around the block to buy these bonds. If you read yesterday’s Dispatch, you know where I’m going with this. In short, the bond market is unraveling. This isn’t some conspiracy theory. It’s a fact. And yet, investors are buying bonds by the fistful. These people don’t understand how much danger they’re in. Hell, they don’t even know what they’re buying anymore. I’ll explain why in a second. But first, let’s be clear about what “investment-grade” means. • Investment-grade bonds are bonds issued by companies with good credit… They’re the best corporate bonds money can buy. Investors like them because they’re supposedly “safe.” Conventional wisdom says you can own them and sleep well at night. At least, … Continue reading

✅ DJIA Near Highs and Gold Springs Back to Life

March 19, 2017 DJIA Near Highs and Gold Springs Back to Life Good Sunday Afternoon, This week the DJIA closed at 20914 near the highs giving support to U.S. stocks and the warrants trading thereon. Gold as well sprang back to life after the Fed announcements and closed the week at $1229. Silver            $17.41 Crude Oil      $49.31 Copper           $2.69 USD              100.37 In our opinion the US Dollar has put in place a major top on the weekly chart we show below. The negative divergence is easy to see with the USD heading up but the indicators diverting to the downside. Of course, all of this with the Trump administration basically talking down the dollar. Over time this will no doubt impact the U.S. markets and should be a positive indicator for the future price of gold and commodities, we shall see. My preference is to ‘play this game’ with the junior mining shares and/or stock warrants. However, many investors are finding great opportunities with warrants on the U.S. stocks in other sectors, bio-techs, pharmaceuticals, banking, etc. Let me assist you with finding these opportunities and increasing your gains as I am on a roll with some monster gains over the last few months, yes 1,000%, and 2,000% PLUS gains. Remember that only 25% or so of my personal portfolio is in stock warrants, the balance are common shares in the junior mining companies … Continue reading

Stock Warrants | Hostess Brands (TWNK) | Yes, Our Twinkies Are Trading

March 19, 2017 Dudley Pierce Baker Editor-Founder http://CommonStockWarrants.com Did you know that our childhood favorite, twinkies are a trading company? Probably Not!!!! Hostess Brands was the target company for Gores Holdings (GRSH) , a blank check company in late 2016.   Most investors would never know…. Except subscribers to our service. Gores Holdings (GRSH) was a blank check company which went public in 2015 raising $375M and looking for an acquisition. Press Release Wow, did they find a acquisition? Hostess Brands had been a private company and this transaction was finalized on November 4, 2016. Gores Holdings, Inc. Completes Acquisition of Hostess Brands, LLC, Maker of Twinkies ® Hostess Brands (our Twinkies) are now trading with the symbols: TWNK – common shares TWNKW – stock warrants An interesting speculation for those Twinkie lovers…. The Street Is Sweet On Hostess Brands Visit the Hostess Brands website and subscribe to http://CommonStockWarrants.com for details on the stock warrants trading.   … Continue reading

Will FATCA be repealed?

Posted on 19 February, 2017 by Orlando Gotay Since I have been closely following the unfolding—and somewhat constantly shifting tax policy of the Trump administration and the 115th Congress, I get asked often what will happen, if anything, to FATCA, the Foreign Account Tax Compliance Act. Recall FATCA has turned virtually every foreign country and bank into an agent of the IRS, reporting back to the US Treasury on the holdings of US “persons”. Along with a bunch of additional requirements, like the odious Foreign Bank Account Report, it presents a truly formidable fiscal challenge even for the ‘normal’ expat. Most countries folded and signed agreements with the US where they agree to share financial information of US persons, under clear threat of punishing withholding taxes of US sourced payments to people in those countries. Even Vatican City signed up. Some countries have taken their time, and there has been more or less some push-back. The interesting thing is that there was a promise in the Republican party platform to repeal FATCA. I have been a delegate to National Conventions, so I can tell you the language in these much fought over platforms has often ended up in the dustbin. But the Trump administration is anything but normal. Could they try to repeal FATCA? The first hurdle is that FATCA may not be as high as we could wish on the administration’s tax priorities. Well ahead is Obamacare repeal (remember it has plenty of tax components) plus the Trump “big … Continue reading

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies By Nick Giambruno “It was the single most important financial event of my career.” That’s what my friend Rick Rule of Sprott Global recently told me of his experience in the uranium market. Rick was referring to Paladin Energy, a uranium company that leaped from one penny to $10 per share during uranium’s last bull market. That’s a 1,000-fold increase. In other words, a $1,000 investment could have exploded into $1 million. Even the worst-performing companies in the uranium sector delivered 20-to-1 returns. Uranium can deliver these almost unbelievable returns because of unique supply-and-demand quirks that create colossal bull and bear markets. Here’s a quick rundown… and a closer look at how uranium’s coming bull market could hand you these kinds of life-altering profits. The 1950s Uranium Bull Market Uranium cycled through its first bull market in the 1950s. This bull was mainly driven by the nuclear arms race between the US and the Soviet Union. Back then, the only practical way an investor could get exposure was through uranium exploration companies trading on small regional stock exchanges, like the one in Salt Lake City (which closed in 1986). Those who did made a bundle. The Late 1970s Uranium Bull Market The uranium price increased more than tenfold during this bull market… from $3 to $43. Some uranium stocks shot up by a factor of 100. Greater nuclear power use was the main driver. It … Continue reading

Stock Warrants | Edward Thorp’s 20% Annual Return For 30 Years

March 13, 2017 Preston Pysh , CONTRIBUTOR   Shutterstock Edward Thorp is the bestselling author of Beat the Dealer. He revolutionized gambling as he proved how to beat blackjack with card-counting and invented the first wearable computer. As Thorp transitioned out of gambling, he then achieved the unthinkable with 20% annual returns over 30 years trading options. Below is an edited summary of his interview with The Investor’s Podcast where Thorp discusses probabilities and his storied investing career. Preston Pysh: [6:09] I am curious to know how you came up with the idea to beat the odds of blackjack when everyone else believed that it could never be done. Edward Thorp: By solving equations, it is possible to calculate the precise probabilities of losing, given any collection of cards for any number of decks. To calculate these probabilities, I first had a computer take out four aces from a full deck, and I discovered that the deck shifted in favor of the casino by quite a lot. This was good news because if I put back in four aces, I knew the exact opposite would happen and the cards would now be in my favor. I repeated this process with all ranks of the deck. When the deck is filled with big cards, it becomes in favor of the player. On the contrary, when the deck is filled with small cards, it shifts the edge in favor of the casino. Therefore, players want small cards to come out of the … Continue reading

‘Window of Opportunity’ Right Now For Miners – Amir Adnani

Mar 10, 2017 Guest(s): Amir Adnani CEO, UEC; Chairman, GoldMining Inc.   Listen Here GoldMining Inc., formerly known as Brazil Resources, is looking to acquire more gold projects in 2017, this according to the company’s chairman Amir Adnani, also at CEO of Uranium Energy Corp. He joins Kitco News’ Daniela Cambone at the PDAC convention in Toronto to share some of his plans for the company. … Continue reading

Bank of America WS B and Gold Consolidation

March 12, 2017 Bank of America WS B and Gold Consolidation Good Sunday Morning, I frequently talk about of the resource sector in my writings and my weekly audios, however, there is another world of warrants trading in all of the other sectors. Some of my subscribers are only interested in the non-resource shares and stock warrants and there are many opportunities, from banking, pharmaceuticals, bio-techs, restaurants, etc. Today before I discuss the resource markets, let’s take a look at the amazing rise in the price of the shares of Bank of America but more specifically the rise in the price of the WS.B in just a few months. With the election of Donald Trump as President and the view or likelihood of the relaxation of banking rules and regulations, the shares shot up from a recent low of $12.05 to a high last week of $25.80, a gain of 114%. However, the real action has been in the WS.B trading on the NYSE, going from a low of $0.0626 to $1.55, a potential gain of 2,376%. The leverage was and continues to be amazing with the WS.B outperforming the shares by a leverage of 20.8 to 1. My Message? Don’t overlook the other markets where monster gains can also be made with warrants. Resource Sector: The consolidation continues as gold and silver hit recent lows are Friday morning before coming back slightly to close up on the day at $1204.50 (up $3.70), $17.02 (up .07), respectively. There is a slight chance that on a … Continue reading

Larry Edelson Died | By Martin Armstrong

Posted Mar 8, 2017 by Martin Armstrong Larry Edelson died. Larry was a student of the markets. We knew each other from the early 1980s. Larry often wrote that I was his mentor and he sought to follow in my footsteps as he always said. We had discussions about Larry joining our firm. Larry had stepped forward and tried to rent my company to keep the models going. The bankers, who controlled the entire case, wanted it shut down and Alan Cohen along with Tancred Schiavoni demanded if I did not turnover the source code, or they would fire everyone. They even put that in writing to Larry’s lawyer. Larry subsequently appeared in the movie – the Forecaster. Larry developed a serious health issue. He moved back to Florida to be near medical facilities in January 2016. Larry died on Thursday, March 2, 2017. There will be a memorial service for Larry on Saturday, March 25, 2017, at 6 p.m. in Connecticut at the Farmington Valley Jewish Congregation, 55 Bushy Hill Road, Simsbury, Nobody can ever fill the shoes of experience. When we die, that experience is lost forever. With time, a good student of the markets can just look at a chart and see if something will rise or fall. That is a talent one is hard pressed to hand off to another. So while the majority try to argue supply and demand or a host of other fundamentals, none of that stacks up to simply experience. We all … Continue reading

The Passing Of Larry Edelson

Editor Note from Dudley Pierce Baker http://CommonStockWarrants.com Today we learned of the passing of Larry Edelson at the young age of 61. While I never met Larry, he was a colleague of ours in the business and was an incredible talent of great knowledge. I was a subscriber of Larry’s and always looked forward to seeing his next comments on the big picture in the world’s markets and so much more. I am also particularly proud to say that Larry was a subscriber to my services for many years. Our sympathies and respect go out to Larry’s family, Martin Weiss and the entire Weiss Research organization. A life cut short and which we will greatly miss. Larry Edelson, a great man and dear friend of many years, has just passed away. All of us, including his wonderful family, my wife and I, plus his many devoted colleagues at Weiss Research, are in shock and in mourning. One day he appeared well and upbeat. One week later, he was gone. Larry himself, however, seems to have prepared, well in advance, for this last phase in his life cycle much as he prepared for the next phase of the historical cycles he watched so avidly. His last letter to you is below. Once you’ve read it, please stand by. In about 15 minutes, I will follow up with another email to you with more details about our plans. — Martin Last Letter From Larry Edelson to His Loyal Subscribers Dear Dudley, Larry … Continue reading