The following is a list of delusional insiders buying shares of Veris Gold. These crazy individuals should read comments on my blog. This way they would learn that their company is going bankrupt.
The following chart shows how much volume was bought up by insiders on particular days. On May 23 and May 24, insiders bought up 41.1 and 45.7 percent of total volume.
The following is the interview with Robert L. Chapman, New COO of Veris Gold.
Interview with Robert L. Chapman for MACs
Interview with Robert L. Chapman for Windows
Many of you asked me why Randy Reichert left. I already answered this question in one of the comments under the following post.
http://classicvalueinvestors.com/i/2013/04/683-capital-management-files-schedule-13g-for-veris-gold/
The following is the interview with John Chew, founder of csinvesting.org which is a useful website to read.
Interview with John Chew for MACs
Interview with John Chew for Windows
The manipulation of the price of gold is a touchy subject. I have never really talked about this much until the recent smash down. In other words, the sell-off really made me wonder whether the manipulation actually exists. Individuals such as Eric Sprott and John Embry believe that gold and silver are manipulated. Jeffrey Christian from CPM Group has the completely opposite opinion. In this interview, I wanted to get his side of the argument. Obviously, some of the things that Jeff said in the interview will upset some people. Feel free to express your opinion by leaving a comment no matter what your views are.
Interview with Jeffrey Christian for MACs
Interview with Jeffrey Christian for Windows
Investment Opportunity 1
With the markets going up pretty much every single day, it is getting harder and harder to find investment opportunities that satisfy my desired level of cheapness. Investment Opportunity 1 is a company whose stock appreciated significantly in the last year and a half due to a successful remaking of the company by a new CEO.
Today, the story of this company is not about saving it or making it profitable. It is about growing the business into the future. Recently, the stock price has been getting hammered a bit because the management lowered guidance. This didn’t go too well with the market.
Even though the money has already been made on the company’s successful turnaround, there is more money that can be made on this company if the management can execute on its growth strategy.
I also conducted an audio interview with the company’s CEO which is exclusive to subscribers of Ultimate Value Finder.
Investment Opportunity 2
The Internet is a great thing. You can use it to find useful information. Also, without the Internet I would not have this newsletter. With that being said, the Internet can also hurt people especially when you can have anyone say anything they want about a particular subject.
Investment Opportunity 2 is a company whose stock price got crushed because anonymous short-sellers hiding behind fictitious research firms wrote negative reports about the company. Even though there were lots of errors and misrepresentations in these reports, alarmed investors sold off the stock to opportunistically low levels.
Investment Opportunity 3
If you own any gold or silver miners, you know that the last couple of years have been absolutely devastating. However, April 12 through April 15 was a historic event. The price of gold collapsed from approximately $1,600 per ounce to $1,300 per ounce in three days (Friday, April 12; Sunday, April 14; and Monday, April 15). It went down $100 per day. The price of silver was hammered in a similar fashion. Because of these big declines in the prices of these two metals, the miners got absolutely crushed. For example, one silver producer declined almost 50 percent in just four days. As a result of this, the stock was down 71 percent from September 30, 2012. Yes, you read that correctly – 71 percent – while the company’s is very satisfactory. As of the date of this report, the stock is up 60 percent from its lowest point. This just shows you just how volatile these mining stocks are due to extreme mood swings of Mr. Market.
While I am not big believer in conspiracy theories when it comes to the manipulation of gold and silver, this recent smash-down really makes me suspicious because no sane seller would come out and sell anything the way gold and silver were sold off. While this was happening, the physical demand from people from all over the world was skyrocketing. Even the mainstream media was reporting this which was amazing to me. People were waiting in long lines trying to acquire physical gold and silver, while the price was collapsing. Obviously, something was not right. As a result of physical buying, the prices of both gold and silver are recovering creating lots of pain for paper shorts. I believe that it is just a matter of time before we see the price of gold and silver back to all-time highs.
While the investment community continues to trash the mining stocks, I continue to buy them. They sell them off, I buy them. They sell them off more, I buy more. The lower they send them, the more I am interested in owning them.
This past week, I received a refund check from the IRS. The money from this is going straight into the miners. Actually, I will use the entire amount to buy one of these miners because I don’t own enough of it. Originally, I was thinking that I should put this money into my savings, but I simply cannot do that. I know that by buying it, this money is going to be worth 10 times or more in the future. How can I justify keeping it in the bank earning nothing?
In this report, my goal is to update you on six companies that I own. Pretty much all of them have been crushed. Even after the recent recovery from the lows, they are extremely cheap.
On April 1, 2013, I embedded from YouTube a documentary about gold. Jeffrey Christian from CPM Group was one of the individuals interviewed. He left the following message on my blog.
http://classicvalueinvestors.com/i/2013/04/the-secret-world-of-gold-documentary/
“I have watched both the Canadian and international versions of The Secret World of Gold, as well as the shorter web piece. I also have discussed it with people in the gold market who have seen it. As anyone who has seen it knows, they interviewed me for the piece.
I must say this, as both an expert in gold and a formerly very well regarded journalist: This mockumentary is a shameful disgrace to the world of journalism. They have gotten most historical and recent facts wrong. The piece is full of errors that they should have caught. For example, there was a full scale audit of the deep storage gold held at Fort Knox not too long ago, and the materials are in fact audited regularly. Ron Paul had hearings on this a few years ago at which the Treasury provided him a detailed description of the multi-year bar by bar inspection program. Yet the film producers chose to focus on Eric Sprott’s obscene contention that he believes the gold ‘probably’ is not there. The film has many, many more factual errors throughout.
Worse, they have accepted Andrew Maguire as a legitimate former trader, even though you were informed by at least one source that he was a fraud. You apparently did nothing to qualify him as a bona fide trader with real experience, in contrast to the Wall Street Journal, Financial Times, New York Times, CNN, BBC, and other legitimate journalistic enterprises that found they could not verify that he ever was in fact a gold trader, that he refused to provide one shred of credible evidence that he ever was a trader, or that any of his comments were based in anything other than attention seeking. The producers voiced-over pictures of Bart Chilton, one of the CFTC’s commissioners, with comments from Maguire saying how he interacted with Chilton. Chilton did not verify this in the film, but the producers purposefully try to give the impression he verified this happened.
The producers additionally have engaged in the most sensationalistic form of misrepresentation. One example: As my friend and client, Sam Sporn, discusses the Morgan Stanley case, on which I should note I was the expert witness for the plaintiffs and explained to Sam and the court the nature of the over-charging by Morgan Stanley, he is explaining how the issue was that Morgan Stanley was charging clients to hold allocated metals on their accounts when in fact it was holding unallocated metals. While that is the voice-over, the film shows some people opening an empty vault, implying that the metal was not there. That is whorish journalism, period. There can be no argument but that the film makers were trying to be sensationalistic in that. Indeed, throughout the entire documentary, the producers have this breathless narrator repeatedly mis-representing history, even down to the events of the fall of Poland during World War II.
In summary, shame on the film makers. They are not documentary film producers. They are sensationalists and distorters of facts who either chose to ignore major lies or were not competent to recognize them.”
On April 19, 1013, 683 Capital Management filed Schedule 13G for Veris Gold. I don’t know anything about this fund, but it appears to me that they are value investors. They own names such as Berkshire Hathaway, Coca Cola, JC Penney, and Leucadia.
Here is the link to the Schedule 13G
http://www.sec.gov/Archives/edgar/data/1286799/000092242313000148/kl04020.htm
Here is the link to their porfolio
http://www.sec.gov/Archives/edgar/data/1404574/000091957413001243/d1354826_13f-hr.txt
Disclosure: Long Veris Gold
The recent volatility in the equity markets could be attributed to concerns over global growth (especially China), some widely disparate earnings, generally weaker economic data points, and the ramping up of terrorism fears off the Boston tragedy and now some “suspicious mail/package” scares in Washington.
But there is also the selloff in the global commodities markets, with the most dramatic moves concerning gold futures and ETF’s.
Newsletter writer and frequent TV business news guest commentator Dennis Gartman, known as the “Commodities King,” said on Monday, “We’ve traded gold for nearly four decades and we’ve never… ever… ever… seen anything like what we’ve witnessed in the past two trading sessions.”
The research firm Ned Davis Research tells us that this was a 7.2 standard deviation event. In other words, such a decline would happen about every 2.7 million years.
Rest of the article.
