Global emerging markets and the E*TRADE sell-off deadline?
InvestorIntelReport June 2015: Over the last several years, I have tried to provide you with weekly and monthly updates through InvestorIntelReport, which was previously built off of my series titled H2OCoolerConfessions – but it seems the only writer on the planet that really loves to write this column is me. So today you’re getting a complimentary freebie as our team-mate that usually distributes these is on summer hiatus and considering that I am dusting off the cobwebs, let’s see if we can make some magic happen here….
Yesterday, the broker on Bay Street that calls himself ‘The Samurai’ called me and said: “Are you in the office?” “Of course, I’m in the office – I’m always in the office.” and he rushed over with a cup of green tea for me so he could tell me what the Greek vote really meant to him, which he believes will offer a good buying opportunity. While he was as excited as anyone with his energy level could be, I contacted Dr. Duchesne at nearly 11PM last night and said: “Dr. D. I just had ‘the Samurai’ in the office and I need you to tell me what this Greek vote really means to me, us – the investors.” Dr. Duchesne responded with: “I was hoping you would ask me to do this story.”
So today, I just published Duchesne on Greece’s Default and ‘Game of Thrones’ — where as Luc says Jon Snow would probably describe this as “Winter is coming” as modern Greece takes center stage by putting debt and demographics at the forefront of our economies — powerful piece.
I try to pour through the emails quickly here and the one from Christopher Ecclestone stands out. Christopher is doing some analysis on top German market makers and the off the record conversations would make for an excellent InvestorIntelReport unto itself, so I called him and asked him what he thought about the Greek vote. “Surprisingly large” said Ecclestone, and then told me he also has a commentary that is coming out tomorrow, as he reinforced the message that they need to find an outside solution. He added further that while “everyone just wants to fix it” this might be a case where we just need to accept that it is broken.
Perhaps the reason no one wanted to write InvestorIntelReport is that we had one of the worse months for InvestorIntel members in our history, down -12% overall. So while it is summer where stocks in emerging markets tend to stay flat, what is really happening here is the next obvious question. In 2008 we were all over high frequency trading related issues and the impact on our markets, and this weekend we were seeking additional analysis to support our theory that major online trading systems in the U.S.A., such as E*TRADE announcing that U.S. investors could no longer trade on foreign exchanges after July 9th. While in theory these trading companies would not be affected if they had a secondary listing in the U.S. (i.e. OTCQX), our Canadian listed marijuana clients were down -31.83% on average and our Canadian and Australian graphite & graphene clients were also down -21.51% in June and appeared to perhaps be victims in this sell off?
I have received additional rumors that I am trying to quantify about 2 other major U.S. retail online outlets that are following E*TRADE’s lead, but am finding little to nothing online. Even in the process of trying to secure information on E*TRADE was barely able to discover much more than the Harvey Keitel legal action against E*TRADE for a cool $1.5M for dropping him as their spokesmodel.
I asked Christopher what this really means – and he explained that the bottom line is that dumping stock on the OTCBB is happening in illiquid stocks and then “they gap down and it adversely effects the main quotation on the TSX or other global markets. He goes on to add that “the irony is that investors can stay trading in the OTCBB tickers (Christopher advises me that this is what he is doing) — so investors selling out their juniors from E*TRADE accounts to avoid taking a hit when they have to trade them on BB and probably taking a bigger hit now than if they waited 6 month to a year. We both agree that E*TRADE has made a short sighted decision that has resulted in customer panic, and impacted in particular an excellent avenue for the U.S. retail audience to quickly access the global graphite and cannabis market. Additionally, E*TRADE would lose the more informed and educated investor who will have been less than enthralled with the dramatic exit they have elected to make from some of the global markets that many self-directed accredited investors enjoy investing in. So again, while Canadian, British and Australian stocks with “proper” U.S. listings, such as an OTCQX listing should not have suffered in this rout…but our numbers beg to differ.
On other fronts, we had one positive sector this month — with the Gold, Base & Precious Metals sector up +1.28%. Uranium clients down -3.09%, Oil & Gas -3.09%, Technology -4.35%, Cleantech -8.86%, Technology Metals -11.30%, Biotech -14.55%, and of course Graphite & Graphene -21.51%, Marijuana or Cannabis companies, -31.83%.
Leaders for June are as follows, and I have decided to just outline these companies by listing my tweets for you to retweet, because defying the gravitational downward pull of an online sell-off, the summer doldrums or dare I reference the junior resource emerging market depression is indeed worthy or tweeting:
- $HSR.V up +25% in June on no news – #Homestake’s #Silver, #Gold & Golden Triangle Advantage http://bit.ly/1CkJT6J
- $ELN.V up +25% in June on no news — #Ecclestone on #ElNino – well-positioned in base metals &‘mighty’ partners http://bit.ly/1Tgo3VZ
- $UCU.V +16.67% & $UURAF +15.11% in June as #Ucore Appoints Molecular Recognition Pioneers to Advisory Board http://bit.ly/1JRUcRQ
- $LVN up +13.40% & $LVNVF +10.25% in June as #Levon Provides Update Regarding Closing of Arrangement With #SciVac http://bit.ly/1HBvcya
- $HEOFF up +12.40% & $HEO.V +12.16% in June as #HSBC analysis features @H2OInnovation as leader in Int’l growth http://bit.ly/1Ji4yKK #water
- GTA.V up +11.11% in June — WATCH: @Clausi_Peter on #GTAResources “Boot & Hammer” #zinc, #copper & M&A program http://bit.ly/1L67EB5
- $DVR.V up +6% in June on no news — The competitive resource acquisition model of #Deveron http://bit.ly/1JJd85z #graphite
- HAS up +3.80% in June on no news – #Spratly Islands’ dispute redirects investors to Hastings heavy #rareearths http://bit.ly/1KsrvI2
- $PEK up in June +1.19% as #PeakResources Final Regulatory Approvals for 1st Stage of #BFS Funding http://bit.ly/1FxYOWZ
- $CHPGF up +0.63% in June – Read: The #Water Rush – #Chesapeake #Gold to use desalinated process water at #Metates http://bit.ly/1JnKtmt
The Top 25 Most Read InvestorIntel articles for June are as follows:
- Lifton on China’s global rare earth market expansion – Tracy Weslosky
- Lifton on the “GLARE” of Technology Materials: Graphite, Lithium and Rare Earths – Jack Lifton
- Lifton says forget the Wall Street Journal on rare earths – Jack Lifton
- Lifton weighs in on Molycorp – Requiem for a Lightweight – Jack Lifton
- Graphene: Emerging signs of commercial impact? – Adrian Nixon
- Why 15 Venture Capital Firms are Playing the Real Estate Crowdfunding Game – David Drake
- Kenny on the coming global rare earth supply crisis – Tracy Weslosky
- Rare Earths to post sizeable price gains, says research firm – Robin Bromby
- The Most Important Line Item in Zenyatta’s Graphite PEA – Peter Clausi
- Mackowski on Innovation and/or Revolutionary Rare Earths Technology (Part 4) – Steve Mackowski
- Graphene – the race is on, but what’s real? – Dr. Ian Flint
- GeoMegA’s Britt on the looming rare earths shortfall and price debate – Tracy Weslosky
- Neometals square in middle of lithium hotspot – Robin Bromby
- Molycorp Silmet plans to resume production of rare metals in Estonia after major fire – Eugene Gerden
- Australian miners claim big graphite advances – Robin Bromby
- Australia riding to the rescue of tungsten – Robin Bromby
- Cannabis at The Trump – Peter Clausi
- Copper Mountain Mining – Malicious or just Neglectful? – Peter Clausi
- Great Lakes Graphite to get into the game earlier – InvestorIntel
- Marijuana Breaking News From Canada’s Highest Court – Peter Clausi
- Mackowski on Innovation and/or Revolutionary Rare Earths Technology (Part 3) – Steve Mackowski
- China moves to Stage 2 of its great gold grab – Robin Bromby
- Top 90 US Real Estate Crowdfunding Sites Cast a Wider Net – David Drake
- Smith credits ‘team effort’ as Largo claims the #1 market cap position in the Technology Metals sector – Tracy Weslosky
- Ecclestone’s Mining Post-Mortems: How the Mighty Have Fallen – Christopher Ecclestone
And 26-28 just for fun….as they were excellent articles….
- Alkane jumps key hurdle as it vies to be world’s next rare earth mine – Robin Bromby
- Beyond cannabis edibles: New patent shows new methodology to deliver smokeless marijuana – Dr. Luc Duchesne
- Start-ups can now Raise up to $50M Capital using Reg A+, but how Expensive is Compliance to this New SEC Ruling? – David Drake