Wednesday, May 27, 2009

Save the Seals while Tax-Payers are led to the Slaughter

Governor General Michaëlle Jean is the Inspector's new hero. Wow! That woman is a keeper! The Honorable Michaëlle Jean is in the Inspector’s good books for gutting a freshly slaughtered seal, pulling out its raw heart, and then eating it. Yum!


From the Economist May 16th-22nd 2009:


If the European Parliament were really interested in animal welfare, then it might look rather more closely at the farming industry that the European Union so lavishly rewards with subsidies. But it has more pressing business. On May 5th MEPs, suddenly disgusted by the cruelty of people far away hunting seals, voted to endorse a ban on the trade of seal products, most of which come from Canada. Their hypocritical recommendation, which still has to be approved by the European Commission and Council, isn’t even much good for the seals.

Every year, 300,000 seals meet their end not by mauling from a polar bear, but instantaneously from gunshot or a blow from a club. Four years ago the WWF, an environmental organisation, commissioned an independent vet’s report which concluded that seal clubbing is not cruel if it is properly done by competent and trained professionals. The report judged that the Canadian hunt was professional and highly regulated. And the vets said that popular horror of the seal hunt seemed to be based largely on emotion and on images that are difficult even for experienced observers to interpret.

By the grim standards of Europe’s farrowing sheds, millions of seals enjoy a blissful life fishing and breeding on the Canadian ice. At least Canadian seals have the luxury of being stunned before they die. Compassion in World Farming, a lobby group, says that half the sheep killed in France are conscious when their throats are slit. Such treatment is possible through a loophole that allows for religious slaughter—a loophole that the same champions of animal welfare in the European Parliament voted to avoid closing on May 7th.

A few seals are killed to protect fish, others as a source of blubber or food. Most are indeed killed for their fur. That may not be to everyone’s taste, but it is hardly unEuropean. Europe’s fur farms produce over 30m mink and fox pelts a year. Every four or five days Europe kills more animals for their fur than the entire annual Canadian hunt does in a year. Seal hunting sounds unfair; but Europeans are reluctant to ban the hunting of similarly defenseless game birds, deer or wild boar.

...

ROUGHLY handled, and incompetently stunned, terrified animals may awaken several times before they are slaughtered. Some have their throats slit fully conscious. Europe’s industrial farms dispatch 1m sheep, cattle and pigs every day. You cannot cater to the welfare of a large animal like a pig when the line must kill five in a minute.


In short, because seals are cute, opposing their slaughter is a popular bandwagon to jump on. Not so much for the cows, pigs and sheep. I guess being good looking has its advantages: A bunch of celebrities and political bozos will shed a tear for you if you get clubbed to death. I'm sure watching a cow or pig or sheep get slaughtered is just as horrific as a seal getting killed, but for some reason you don't hear Sir Paul get all worked up over that. Good on you Michaëlle Jean! Eat your heart out Paul!

.http://sjsandteam.files.wordpress.com/2008/11/animal-farm.jpg



Like the cows, pigs and sheep, us tax-paying fools are being led to the slaughter, all the while being made to feel guilty that a few cute animals are about to get clubbed. When you step onto the kill floor and are about to get stunned, chances are you won't feel so guilty. Whether the Industry Minister Tony clement (who refuses to answer my emails btw - give him a try
Clement.T@parl.gc.ca) wants to admit it or not, Canadian tax payers are going to be paying the very generous pensions of retired auto-workers. While the rest of us suckers get fleeced, these pretty seals are crying about getting clubbed. Good for them that they had good jobs. But now the gig is up. Time to re-join reality. For some reason, you and I are expected to pick up the tab for their ridiculous pension. Maybe we should enlist the help of the Tamil Ski Laken protesters who appear to be immune to the law, and thus can help us protest without fear of arrest. Lets block the highways, shutdown the parliment. Women and children in front. C'mon cheif Blair, you panty-wearing bitch: Let's hear your excuses.

Thursday, May 14, 2009

Corp bonds; Canadian Bank Equity; POT is HOT

Stocks rallied hard recently, then a big sell-off ensued. No surprise here. Lots of talk that markets bottomed in March. It’s very likely they have – but expect more horizontal movement. In the meantime, corporate bonds are still a favorite of the Inspector and investors world-wide.

There is still a lot of value to be found in equities, however, there is still a lot of volatility. A safe equity bet can be found with Canadian banks. As usual, average out your buy-in – don’t buy all at once. On the other hand, for a solid but guaranteed return, as mentioned in a previous post, Canadian bank corporate bonds have a nice coupon and are as safe as a Canadian government bond. In short, if you want value and stability, Canadian bank corporate bonds are the way to go. If you prefer to watch a slow tide, Canadian bank stocks may be right for you. Canadian bank stocks in general pay decent dividends, so you are being paid to wait as the tide turns.


For many investors that already have a large equity portfolio and nothing else, you should seriously consider going the fixed income route and pick up some Canadian bank corporate bonds to diversify and minimize risk. Remember, if a company “bites the dust”, bond holders typically get paid first while stock holders get nothing. Also, though corporate bonds trade daily, if you hold them until maturity, the payout is fixed.


On another note …



2009 is all about recouping losses. A familiar stock, Potash, is on the rebound. In general, the Agriculture space is looking good once again. The Inspector is not advocating “selling the farm” and going nuts here. Simply pointing out that an old favorite is starting to shows signs of life again. If you are holding agriculture stocks in your portfolio you are holding a piece of the future. Food is not getting any more plentiful nor is it getting any cheaper. The recent market downturns/recession likely stunted the momentum agriculture stocks were riding. But make no mistake, the ag sector is still a growth story and it is not going away.



DISCLOSURE: Author enjoys a nice burger once in a while, owns shares of Potash, and has no idea what the hell that picture of the large woman is doing in this post. Always do your homework before making an investment decision.

Saturday, March 28, 2009

Surfing the Gold

As a self-described conservative long-term investor, today's topic of discussion is the opposite of conservative or long-term: volatile and short-term. Specifically, the topic is “Horizons BetaPro TSX Global Gold Bull Plus ETF”. This is a Canadian based ETF that trades on the Toronto Stock Exchange (TSX). It acts like an index of two times (200%) the daily performance of the S&P/TSX Global Gold Index. The S&P/TSX Global Gold Index tracks gold producers (as opposed to gold the commodity).


"Horizons BetaPro HBP ETFs are a unique series of alternative exchange traded funds ETFs used by investors and investment professionals to profit when the market is rising or falling, or to reduce risk by hedging their existing market exposure. HBP ETFs offer two types of structures: Bull+/Bear+ leveraged ETFs and single inverse ETFs. The HBP Bull+ ETFs HBP ETFs are designed to offer double the daily performance (inverse daily performance) of their underlying index or benchmark. … All HBP ETFs are denominated in Canadian Dollars.


HGU is the “bull” ETF for gold producers. As a double performance ETF HGU is volatile, as evidenced by the one month chart below ...

yes, this is a static picture of stock chart because in 2009 there seems to be no easy way to embed a Canadian stock chart. despite the multitude of gadgets out there, they appear to only accept US stock symbols

Check out the stock chart on Google Finance

The Inspector is recommending this ETF as a trade (not as an investment). The trick is to buy this and sell a portion of the holding on a regular basis. The concept is to surf the chart’s ups and downs. In a just a few days, this ETF can move 10-20%. It represents a good opportunity to make a little bit of side money, away from core holdings of a portfolio.

Gold companies and the commodity have been on a general up trend. None the less, as mentioned, the chart is choppy. Do not buy this ETF unless you understand the concept fully. In general, gold is a nice hedge to have in an equity portfolio, and the HGU ETF is a nice way to add some dollars to a suffering equity portfolio.



DISCLOSURE: The author buys and sell units of HGU on a regular basis.

As always, do your homework and read between the lines.

Monday, March 16, 2009

News Flash – US Corporate-Owned News Media Is A Joke

Jon Stewart blames CNBC and Jim Cramer for careless financial news coverage. In a nut-shell, he believes (rightly) that CNBC has betrayed the trust of its viewers. However, the Inspector asks, which corporate-owned US news media does anybody trust? And it’s not just financial news that is untrustworthy, but any corporate-owned US news. A quick examination of coverage during Bush’s reign of “error” should provide ample proof of how ineffective and untrustworthy the US corporate-owned news media is. Talk about lap dogs.

Jon Stewart wants to point the finger at CNBC and Jim Cramer: The public was duped and they are to blame. The entire premise of a functional democracy is having a well informed public. But if the US public descends into mass stupidity, is it the media’s fault? Put another way, do you blame the drug dealer or the drug user? More often than not, junkies are portrayed as victims and the pushers as evil. No matter how sleazy CNBC and the rest of the financial and “regular” US news media may be, nobody is forcing anyone to watch their crap. Just say no.

Canada is blessed in comparison to US corporate-owned news. For the most part, Canadian news coverage is level headed and even handed. Financial news is no exception. Watch the Business News Network (BNN) and you immediately see the difference (check-out BNN.com). Rather than fast cash, crazy money and sensationalist reporting, guests are interviewed at length, topics are covered thoroughly and investment advice is top-notch. And guess what, BNN is available in the US. So Jon, time to change the channel!

That Mr. Stewart is calling out the US financial news is important. What the public needs to do is take matters into their own hands. Change the channel! There is plenty of reliable and thorough news out there. Let’s not forget international news. The BBC for example puts FOX news and CNN to shame. It’s not enough to blame the messenger. Instead, it’s time to shoot the messenger.

One of the central concepts behind Professor Noam Chomsky’s theory of the media is that it serves the insiders that own it, not as a matter of conspiracy, but as a matter of function. It is for that reason that any news source that is owned by the institutions that it is supposed to “keep an eye on” will never give you the real news. That is why you need to read this blog, and the next guy’s blog, why you need to search the world for news, and filter out the crap. Don’t point the finger, use the finger, and give the US news media the finger. You have the internet and with it more access to information than available at any other time in history. Why the f-ck would you bother with CNBC, MSNBC, CNN, Fox News or the rest of these lackeys?

http://marilyn.indstate.edu/~vijaysomu/funny/JonnyCashFinger.jpg

Jon Stewart is one of the most entertaining people on television, but for him to excuse the public for being lazy and for trusting an institution (US financial news media, US news media) so obviously compromised – sorry, doesn’t work for this guy. Jim Cramer, like some of the most brilliant minds in economics (including Alan Greenspan, Warren Buffet) totally underestimated the coming financial meltdown in 2008. Are we mad that people of such intelligence unintentionally or intentionally led us astray? Of course, but who really is to blame? Well, for starters, check this out … from PBS. One of the best examinations of the financial crises out there.

Tuesday, March 3, 2009

Abandon Hope All Ye Who Enter Here




Through me you pass into the city of woe:
Through me you pass into eternal pain:
Through me among the people lost for aye.


Justice the founder of my fabric mov'd:
To rear me was the task of power divine,
Supremest wisdom, and primeval love.


Before me things create were none, save things
Eternal, and eternal I endure.
All hope abandon ye who enter here.


Such characters in colour dim I mark'd
Over a portal's lofty arch inscrib'd:
Whereat I thus: Master, these words import.
Dante Alighieri




That pretty much somes up the second half of 2008, and unfortunately, the outlook for 2009. The sky has fallen. The fat lady is out of breath. The sh-t has offically hit the fan. Enron aint got nothing on this.

Hopefully, the small investors can make it through this economic hell, through purgatory and then into financial heaven. The time has come to say "bye-bye" to the NYSE, Nasdaq, TSX and say hello to FIXED INCOME. Corporate bonds are your friend. Stocks are now satan's domain.

Think of the Inspector as Virgil, your guide through the Inferno, through Purgatory, and finally into Paradise.

Step one is to adandon all hope in the stock market. Its done ... its over. 2009 is going to be an absolute blood bath. As comforting as it may be to think that Bernie Madoff has a special place in hell waiting for him, that is not gonna make you any richer. That's where fixed income comes in.

http://www.telegraph.co.uk/telegraph/multimedia/archive/01236/bernie-madoff_1236564c.jpg

Like most investors, the Inspector's equity portfolio has taken a beating. The value has shrunk. But, the Inspector is a long-term investor and can afford to hold on to his stocks. As a way to regain some value in his portfolio, the Inspector is looking at corporate bonds.

Specifically, in today's post, the Inspector will look at a Canadian Bank, BMO, and a 10 year bond that generates between 8% - 10% annually. The bond is "BMO TIER 1 NTES - SER.A" which has a call date of December 31 2018. It is listed at 10.221% Pretty good.
This bond is rated AH/Aa3 by Moodys and DBRS respectively. Investor grade.

The spread between government bonds and corporate bonds in general are at very high levels (so far this year, well above six points). This is a good time for corporate bonds. As far as risk is concerned, the most obvious one is the health of the company and their ability to pay at maturity. Well, if its any consolation, all of Canada's big banks are healthy, especially compared to banks world-wide. In fact, today, March 3, BMO beat analyst expectations . This is no struggling giant. If BMO can make a profit in the current environment, arguably the worst ever (as in the history of the universe), then it shows they are in it for the long haul. As a rule, as long as a bond issuer stays in business, you're likely to get generous payouts regardless of economic conditions.

The ultimate enemy of bonds is inflation, and we are likely due for some of that eventually. None the less, what is the likelihood that the average rate of inflation will be 10% for the next ten years? Also, consider that inflation has never been lower than it is right now. Bottom line: Inflation might end up eating into the 8 - 10% annual return, but it won't erase it.

DISCLOSURE: The author owns units of
BMO TIER 1 NTES - SER.A


Do your homework. Eat your veggies. Trust no-one ...especially not the devil.





 

Wednesday, July 30, 2008

The Early Bird Catches the Worm– FORTERRA ENVIRONMENTAL CORP

Times are tough, but as the saying goes, when the going gets tough, the tough gets … tougher … or something like that. With Fannie Mae and Freddie Mac joining the socialist club of America, getting bailed out by the wonderful tax payers of the USA (courtesy of a backroom, undemocratic process - thanks!) well, makes you think: "how can it get worse?" We are in a time when conventional investment strategies such as the infamous buy and hold are not effective. With such insane volatility in the market, it’s really all about the trade. The Inspector’s take is to trade around a long-term position. Do not pass up on all the ample opportunity of crazy ups and downs.


Speaking of volatility, there is a personal favorite stock that the Inspector has been reticent to mention on the blog because it is highly risky. Considering the current environment though, what isn’t? So, without further a due, here is a penny stock worth its weight in worms: FORTERRA ENVIRONMENTAL CORP.


Forterra is a producer and marketer of organic enrichment products, (i.e. fertilizer) specifically for use in the commercial turf, horticulture and specialty agriculture markets. It trades on the Toronto Venture Exchange as FTE. This is a penny stock so the usual caution is advised.


Check out Forterra's website


Forterra makes environment-friendly fertilizer from worm castings. Their biggest cost is worms! It has recently signed many deals for its products and its prospects for growth (no pun intended) are huge. Forterra has a good product that has a great demand: they are in a great sector. Remember, this is a very, very small company, so don’t expect a Potash type world domination story, but it is very lucrative. In fact, what makes this stock attractive is the very fact that it is tiny: nobody knows about it! This stock is very thinly covered. In fact, Forterra just announced that is has retained a Company for Investor and Corporate Relations to improve communications with investor community.


Every cent this stock moves is a huge percentage gain or loss. If you want to get in on this worm story, pick the down days. Do not buy all at once! Again, the Inspector cannot stress this enough – this is a risky investment, but for those with a bit of spare money to spend in their portfolio and a need to speculate a bit, this could be the right pick for you.


Check out Forterra on Google Finance


DISCLOSURE: I own shares of FORTERRA ENVIRONMENTAL CORP. Always do your own research. If in doubt, don’t! For serious investors only!


Remember, tell everybody you know about Inspector Stock .com.






Worms!

Tuesday, April 8, 2008

Agriculture on Auto-Pilot - Hemisphere GPS

Agriculture is a re-occurring theme on InspectorSTOCK.com. Back in September the Inspector profiled Hemisphere GPS. It has done well since then. Back when the Inspector profiled HEM, it was trading at $2.19. Today, April 8 2008, it closed at $3.33. Don’t despair, there is still time to get in on this stock. Its going higher.


Hemisphere GPS Inc is engaged in the design, manufacture and sale of global positioning system (GPS) products for guidance and machine control applications mostly used in agriculture, but also for use in marine and mining. A huge part of their business is providing farming vehicles such as tractors with driver assistance or “auto-pilot.” The GPS couples with auto-steering platforms to eliminate overlap. Ultimately the systems eliminate driver fatigue and reduce input costs. On December 20, 2007, HEM acquired all outstanding shares of Beeline Technologies Pty Ltd, which provide “drive by wire” technology and OEM tractor integration.



Below is a link to an absolutely amazing interview with Steven Koles, president and CEO of Hemisphere GPS. Check it out! This interview is very informative and gives you a chance to hear from the CEO directly. If you plan to buy this stock, you must check it out.




Interview with Hemisphere GPS's CEO. Its a few minutes in . . .


Check-out HEM on Google Finance






In short, HEM is a screaming buy.


As the CEO Steven Koles mentions in his interview, GPS/auto-steering is no longer a discretionary product for strip tilling but more and more an essential part of the agriculture business. It reduces input costs and ultimately pays for itself. Agriculture is under tremendous pressure to meet rising demands in an increasingly unpredictable climate. Technology in general helps to maximize yields so farmers can cash in on rising crop prices. In short, farmers have every incentive to invest in technology, so they can sell more of their precious commodities.




DISCLOSURE: I own shares in Hemisphere GPS. You might want some too! Do your own research. For example, watch the interview.