Hoffman, the “Wolf of Wall Street” & Star Gazing
Sorry to hear that Philip Seymour Hoffman (46) passed away yesterday from an overdose at such a young age. The stock market is full of addicts, so the personality traits reflected in this genetic predisposition is often seen in our sector. Concurrently, I see that “The Wolf of Wall Street”, which highlighted this addictive behavior prevalent in the finance sector has broken $100 million. The market makes the rock and roll industry from which I started pale in comparison.
Speaking of star talent — selecting a star in the market is no easy feat, but doing the research on what trends may increase your odds is only as reliable as the source providing it. For instance, in the last couple of weeks, we have had 3 sources make efforts to correct a WSJ article on the rare earth market and the issues surrounding sustainability in the U.S. and here’s what I concluded — everyone disagrees with the WSJ but the conclusions on why — differ greatly.
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CNN was discussing how the U.S. market had yet to have a ‘meaningful correction’ in the last year and a half, while delivering the news that February futures were down, after a 5.3% drop in January. A well-known industry player who asked that I not disclose his name (yet) told me 2 weeks ago in Vancouver that he was noticing very high margin debt in brokerage firms and told me that he was forecasting a 10-15% correction that may provide the catalyst for more attrition for those struggling, namely the TSXV junior exploration companies in the resource sector. This said, he did see recovery for the resource sector once this larger market correction had occurred. Timeline for his forecast was 3-4 weeks and he made this forecast 2 weeks ago…
At InvestorIntel we had record lows for client memberships in December, but in January we experienced an all-time record high. So I would agree with my dry cleaner, who also happens to be an investment banker that I spoke to this morning that the markets have indeed been volatile. Bottom-line, we never have any idea what is going to happen and as a new trader who has been sending me updates wrote me last week: trade on what you know, not on what you anticipate.
This last week I tried to get Molycorp (again) to go on the record with their position on the WSJ article and provide InvestorIntel audience with an update, and well; I did receive a phone call and email, but as per usual Molycorp updates these days – or as Mick Jagger said it best “I can’t get no satisfaction” as both requested that their communications be private.
January numbers were very insightful and I will publish my month-in-review commentary tomorrow, but thought I would leave you with my top tweets from Superbowl Sunday that should whet your appetite as we attempt to satisfy our thirst for Investment Intelligence:
- TSXV: GMA up 190% for January — @Geomega Resources is averaging up the rare earths or technology & critical materials for 2014
- #Triton Minerals ASX: TON up +114.29% for Jan 2014 helping pull the technology & critical material sector up +9.95% for the month #graphite
- IC Potash OTCQX:ICPTF up +31.07% & TSX:ICP +18.52% for Jan 2014 – ‘the dark clouds over #potash market are thinning?’ http://shar.es/Qpgxc
- #Arafura Resources ASX: ARU moved up +26.92% for January, helping drive #technologymetals up +9.95% as #rareearths turn a corner
- #Alkane Resources ASX: ALK up +26.47% & OTCQX: ANLKY up +20.99% for Jan 2014 – Alkane will be producing #gold this quarter
- #Allana #Potash up TSX:AAA +25.68% & OTCQX:ALLRF +16.01% for Jan 2014 — helping drive @Investor_Intel potash clients average up +7% for Jan
- #Lomiko Metals TSXV: LMR up +19.05% and OTCQX: LMRMF up +8.26% in Jan 2014 with leading news on #3DPrinting deal #graphite #graphene
- #Tasman Metals TSXV: TSM up +18.52% and NYSE MKT: TAS up +12.87% for Jan 2014 – #HREE green light #rareearths http://shar.es/Qf7j6
- @Ucore Rare Metals TSXV: UCU up +17.02% & OTCQX: UURAF up +6.67% for Jan 2014 – Ucore addresses HREE Supply Concerns http://shar.es/Qpoja
Here’s to a great week on InvestorIntel and think about a future where you order your outfit for the day online, download it – and then print it out of your 3D printer….and here’s to a cure for addiction.
An accomplished entrepreneur and corporate finance professional, Tracy Weslosky is the CEO for InvestorIntel Corp. and the VP of Business Development for Bellotti Capital Partners ... <Read more about Tracy Weslosky>