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Drought, Drug Cartels, Rising Prices Combine To Create Cinco De Mayo ‘Limepocalypse’

An unprecedented shortage of limes, and the resulting spike in prices, has put the squeeze on bar owners and restaurateurs, who have had to come up with creative solutions to keep costs down. The shortage could lead to higher bar tabs for revelers as Cinco de Mayo approaches. The staple drink of the boozy holiday is the margarita, a strong tequila-based concoction that is often made with the juice of an entire lime. But lime prices are much higher than usual this spring, going for almost $200 per 40-pound case in New York as opposed to $30 to $40 per case in recent years, thanks to drought … [Read more...]

Should Barrick Gold’s Shareholders Be Skeptical of the Possible Merger With Newmont Mining?

It looks like we were just a step away from witnessing a birth of a gargantuan gold miner. The Wall Street Journal reported earlier this week that Barrick Gold (NYSE: ABX  ) and Newmont Mining (NYSE: NEM  ) were recently discussing a merger. Reports show that the merger plan was almost complete, but Barrick and Newmont could not agree which mines to spin off from the new entity. This means that the merger is still probable, but will it bring value to shareholders? Cost savings are the only viable reason for merger The possible merger would create a company of a huge size with a total … [Read more...]

Prepared for the Attack of the Short Sellers: Joe Reagor

The Gold Report: Let's talk about the growth and stability of gold and silver sales in Q2/14. What catalysts are on the horizon? Joe Reagor: The biggest national markets for gold right now are India and China. U.S. investors are bearish on gold and silver. Europeans are more toward neutral. But there are more than 2 billion people living in China and India. They are the largest gold buying market, outweighing the larger financial markets of the U.S. and Europe. "Pretium Resources Inc. provides a value opportunity." Conversely, silver has underperformed gold during the last nine months. The … [Read more...]

"Did you expect GOOG to trade at a PE of 10?" & other "smart beta" and factor investing questions

This is another of an occasional series on how good quantitative investors use both the left and right brains to create robust investment processes. Elisabeth Kashner at wrote an intriguing series of blog posts about smart beta and factor funds. In Part 1, she showed that the idea of "smart beta" is mostly a marketing concept, where commonly used "dumb beta" ETFs have "smart beta" features: Many of our favorite “dumb” funds, it turns out, have smart-beta features. The SPDR SP 500 ETF (SPY | A-98) and the iShares Core SP 500 (IVV | A-98) both share an index that screens components … [Read more...]

Internal Bar Strength – Mean Reversion Trading AFL code

by Rajandran R IBS Mean Reversion System Here is a simple mean reversion system adapted from IBS reversion edge with QuantShare. And our IBS mean reversion strategy is a slight variation of the Internal Bar Strength by taking a three day moving average to IBS (maIBS) and looking for IBS crossovers to derive the trading conditions. Internal Bar strength is calculated using a simple formula, IBS = (close-low)/(High-Low) IBS takes values between 0 and 1 and simply indicates at which point along the day’s range the closing price is located. Buy and Sell RulesAdapted timeframe : DailyHolding … [Read more...]

U.S. Exporting Low Gasoline Prices As Pump Cost Highest In Three Years

As U.S. drillers are producing more crude than ever and the nation's refineries export products at levels not seen before the downside seems to be appearing at pump in the form of higher prices for Americans set to travel this summer. A new pipeline is relieving a stockpile of oil previously stuck in the middle of the country, moving it to refineries on the Gulf Coast which export growing amounts of gasoline and diesel fuel, the Wall Street Journal reports.  As a result U.S. gasoline stockpiles are at about a three-year low according to the U.S. Energy Information Administration, and … [Read more...]

Food Prices To Keep Rising As Drought, Demand And Disease Strain Supply

Food prices have been on the rise across America in recent months as a deluge of detrimental factors has descended on key sectors of the agricultural industry. The pig-farming industry was hit hard by deadly disease. Oranges, limes, peppers and other produce experienced price spikes as the West Coast suffered through epic drought. And a surge in the prices of beef, cheese pork and avocado made headlines last week when the Chipotle burrito and taco chain announced that it would hike its menu prices for the first time in three years. "It has been nearly three years since our last company-wide … [Read more...]

Night of the Living Dead Miners: Rare Earth ‘Zombies’ Attack the ASX and TSX

The Mining Report: On the TSX Venture Exchange, there are hundreds of mining companies called "zombies," that is, their market caps and cash balances are so low as to be companies in name only. How many zombie companies are there on the ASX?Richard Karn: Unfortunately, Australia finds itself in much the same condition.There are 707 mining and resource companies on the ASX. Of these, more than 400 have a market cap of less than AU$10 million (AU$10M). Furthermore, more than 200 have market caps of less than AU$2M and cash balances of less than AU$850,000 (AU$850K). With the cost of maintaining … [Read more...]

Iran Expects Next Payment Under Nuclear Deal, Confirming Compliance

Japan's Prime Minister Shinzo Abe, Iran's President Hassan Rouhani and Iran's Foreign Minister Mohammad Javad Zarif (2nd L-2nd R) listen to a special address during the annual meeting of the World Economic Forum (WEF) in Davos, Jan. 22, 2014. Reuters (Reuters) - Iran expects to get a fifth installment this week of previously blocked overseas funds, a senior official was quoted as saying, a payment that would confirm Iranian compliance with a landmark deal with world powers to curb its nuclear program. Under last year's interim agreement that took effect on January 20, Iran will receive a … [Read more...]

Willem Middelkoop and Terence van der Hout: Turnaround Stories Revolve Around Proven Management

The Gold Report: Willem, your first book predicted the collapse of the global financial system a year before the 2008 fall of Lehman Bros. In your new book "The Big Reset: War on Gold and the Financial Endgame," you're predicting the demise of the dollar as the reserve currency by 2020. You said it can occur as a carefully planned event or as the result of a crisis. What would these two scenarios look like? Willem Middelkoop: Authorities always prefer to act within a well-planned scenario. The U.S. and the International Monetary Fund (IMF) understand that the U.S. dollar has to be replaced … [Read more...]