Balloon dog

Hamilton

balloon dog

We all heard about the $140 mln Francis Bacon triptych that sold at auction the other day. This balloon dog missed the limelight but actually beats the triptych. For one, there is only one dog, not three. Furthermore the guy who made this is alive and well making this the most expensive piece of art by a living artist. $58 mln!!! Can you imagine how this guy, when short on cash,  could just go into his basement and work for a few minutes and be OK for another lifetime. No inflation?? And to think that my mom always told me to stay away from artists and their kin.

DGC, Detour Gold update

Hamilton

dgc nov 14 2013 bdgc 14 nov 2013 s

We were perhaps a little early in our previous blog. With the benefit of that hindsight it now looks like a reasonable buy at these levels or 50 cents lower. This is a viable gold miner operating in Ontario. It is one of the largest new mines with relatively low production costs. Coming from $40 a buy at $5 would certainly satisfy the “buy low, sell high” mantra.

SRTY Pro Shares Ultra Pro short Russell 2000

Hamilton

srty

From 400 to 12 is impressive. Nice five waves too. You risk loosing much of your money, but then if it works you could be at 110 in no time. Not for the faint of heart. Leveraged 3x. Give it a shot with a little part of your money.

RDS.A / CVX , Royal Dutch paired with Chevron, and Crude Oil

Hamilton

rds cvx pairs trade 29 10 2013

crude oil oct 29 2013

Royal Dutch  (the ADRs) and Chevron are about the same in size at roughly 225 bln. As you can see, we hope, Royal has followed the price of crude oil quite accurately whereas the Chevron guys have chosen to ignore the fundamentals almost entirely. Whether or not the various counts in these charts is correct is not all that important, but we do expect oil to drop back to the $40 level or so sometime in the future. The triangle, if there is one, would suggest that oil might actually go up, but the B-wave looks pretty compelling. In any event the extraordinary spread between the two integrated companies is, in our opinion, about to collapse. The spread now at about 100% since 2006 is probable as good as it gets. Sell one Chevron against a buy of two shares of Royal. Given the higher dividend on the Royal (by almost 2%) you actually will have a positive carry.