Fire-Sale Day 1: The Australian Markets ‘well placed to limit the impact of disruption…’

“The International Monetary Fund which said in the weekend that Australia is well placed to limit the impact of any disruption caused by worsening international economic conditions…” (Source: International Business Times in Markets: US Rating Cut, Australian Outlook Solid). Australia, the ASX and of course, the Singapore exchange are on my mind in part; because I travelled too Australia this summer to tour the Alkane Resource and Arafura properties and have been remiss at documenting my travels.

The Singapore-ASX deal still has legs according to my sources and in a quick online search: “SINGAPORE Exchange will push ahead with its application to the foreign investment regulator for its $8.4 billion tie-up with the ASX to be approved. The move is expected to pressure the government to reveal further details on why it believes the deal is against the national interest." (Source: The Australian)

The point is that in lieu of the downgrading of the US dollar and the impact on equities (click here to hear my interview on with David Morgan on Friday) we as investors must remind ourselves that we have power – buying power. And now, more than ever, we have as our Blog Manager Asher Berube told me on Saturday, an opportunity to participate in a "fire-sale", hence my proposed Fire-Sale series where I will encourage all of our editors to write about as many companies as possible.

Robin Bromby writes in today’s piece in The Australian (7hrs ago): “But, for reasons that Pure Speculation finds hard to fathom, special treatment was reserved for the rare-earths sector. Our only theory is that your average investor barely understands the technology involved and so, at a whiff of market uncertainty, flees to commodities on which he or she has a firmer grasp.”

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Honestly, I want to write about the very high prices of food in Australia, my road tour experience with the Alkane team, the ANTSO facility tour or the 29 year high of the Australian dollar; but in lieu of all of the financial news and associated emails, here’s what I have for you…a confession. I bought myself a camcorder and filmed approximately 6 hours of rough cut video of Ian Chalmers, the Alkane Resources Ltd. (ASX: ALK | OTCQX: ANLKY) tour, an interview with Richard Brescianini, the tour or Arafura Resources' (ASX: ARU) site and even…an interview with the owner of the Aerilon Roadhouse, a place there is a song about that rhymes with ‘well’. Sid Goldberg joined our team as the COO, a multi award and 2 time Emmy award winning Director less than a month ago and was ended up overseeing the edits to this video footage shot by an amateur.

<long pause>

The point is that video 1 ended up providing outstanding content on why investing in Alkane Resources may shield our portfolios and protect us for the future and we finished it yesterday. I write in my YouTube descriptive: "Ian provides numerous compelling reasons why Alkane is one of the Top 10 market cap companies in the rare earth space in the world. Between Alkane’s resources, management team and business savvy – their tenacity, depth of knowledge and endurance in this sector, they demonstrate how success is a long term vision…” — for the full video, click here

My conclusion from this trip? I need a place in Australia to live where I can grow my own food (speed-dialling Mickey), more investments in the ASX and to bring a cameraman with me in the future…here's to the retail market agreeing with me.

  1. Hear, hear … Now were to I get more money to buy some more on the cheap? I mean, even some of my PM stocks are down, despite gold* and silver jumping higher. Mr. Market sure is crazy these days.** Luckily I only invest the money I don’t need for the next 3 years – but it still sucks … BTW, looking forward to the next part of the video … ;-)
    *Could someone please talk Mr. Chambers into doing a partial spin off (say 20%) of the gold projects? I know he is busy with other stuff, but currently the market seems to value them at zero … :-(
    ** The one stock of mine that seems to be holding up pretty good is If I had to guess, that’s related to the reasoning of Mr. Bromby: Nobody knew about YTC so far (might have changed: RBS Morgan just named it one of its top 5 picks: ) – which means the only people who have bought are those who did some real DD and know how undervalued it is – so they won’t sell just before a DFS, if the can avoid it … (whereas many retail investors might have bought into Alk after just reading a positiv report somewhere) … now I just hope I didn’t jinx it, lol …

  2. @ Positroll: I wish I didn’t invest in REE at all… in the past, so I could buy REE-stocks right now and in the nearby future, when they are on sale for a lot less money. My timing in buying stocks was wrong, but I still believe they will offer a nice return if I have the courage to keep them. I sure hope this macro-economic storm will be over soon, I wanna se some green numbers for a change. Long Molycorp, Lynas, Avalon and Quest, and sadly: out of investment money…

  3. Well, as I bough 80% of my shares around 0,30 and I don’t think we’ll go that far south again, I can’t say I agree in this respect – but I understand the sentiment, as I do feel really sheepish now for having bought the last 10% at 2,04 … but that’s life, and as I planned on holding the first 80% till production anyways, I can live with it, though it sure would have been nice to sell the last 20% for a profit and buy more of the bargains that are currently to be had.
    Oh well, sooner or later one of my stocks WILL spike, and the profits will then be very profitably invested … never held that many undervalued companies at one time before … ;-) And in the long run either the economy will recover, or gold will go to da moon – in each case I’ll make loads of money; oh, and the world will need more REEs to get more wind power, no matter what the general economy is doing …

  4. I know what you mean, but I got into the rare earths almost at their latest top, so it is hurting me…but it doesn’t keep me awake at night, nor does it bring me in a bad mood. I only regret that I don’t have any money at the sidelines for some bottompicking. Every sector is getting beaten, and REE is no exception. I don’t think China releases news that REE will stay expensive in the long run, accidently. As long as there is no out-China production, they wanna get top prices for their exports, even if it is less than we need. They don’t like this bearish action either. Sure hope it won’t last cause in a recession, REE won’t maximize on their possible super-returns. I believe in a recession, wind power companies will get a beating to, and their will be less governments investing in the wind power projects. As to REE: lots of people are selling about everything, only the strong hands hold on to their prortfolio’s.

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