Friday, August 2, 2013

Hot stock tips for Louis Proyect

Don't know how "hot" these are Louis, but I'm always keen to help out a fellow traveller.

I made a list of stinkers to avoid not too long ago.

Postmedia Networks would be a lovely short play if you can find any shares to short. The company is essentially bankrupt, but the corpse is still twitching and probably will for a while longer, but in the not too distant future the company will be but a distant and not particularly fond memory.

I'll admit I missed the boat on Facebook. They've actually regained their issue price since I wrote that. Still think they're vulnerable when the NEXT BIG THING pops up.

Now I don't know to what extent you're a big picture guy, Louis, but somewhere along the line these big gold companies are going to be a buy opportunity. Barrick is around $17 now. There is an awful lot of bullshit around all the gold miners. They've been doing write-downs like crazy because the price of gold has gone from $1,900 to $1,300.

Here's the mystery; all that stuff they are writing down was in the planning stages years ago when gold was well under $1,000. I think a lot of these write-downs are essentially fraudulent. The big boys could come out of the grave in a hurry any time. I suppose a lot depends on how comfortable you are owning shares in companies that are implicated in the most egregious abuses of the environment and human rights in their host countries.

And of course the multiple billions that will eventually have to be coughed up to cover the Lac Megantic disaster threaten Bill Ackman's magical turn-around at CP Rail, so you might want to consider that as a short.

That's not much, but I hope it helps.

In solidarity,

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