Thursday, October 15, 2009

The WSJ on Dow 10,000

The Wall Street Journal's take on Dow 10,000 today:

And you thought you had broken even. If investors had bought gold when the Dow first closed above 10000 in March 1999, they'd be up almost 280%. Put another way, Dow 10000 a decade ago "cost" 36 ounces of gold, treating each Dow point as $1. When the Dow revisited that level Wednesday, it was worth only 9.276 ounces of gold.

ZeroHedge's take on Dow 10,000 yesterday:

And if you want to be really scared, here is the comparable representation for the DJIA in ounces of gold. It cost about 30 ounces to buy the 10,000 Dow last time. Now it costs less than 10.

And you wonder why the WSJ always seems to be so bearish?

Look where they get their material!


Anonymous said...

Hey Palmoni,
TMI approved the acquisition and the warrants went crazy!! I still think they are still trading at a steep discount.

Looks like MGOL is catching a bid today any news on it??

Anonymous said... the run on newspapers done?

Anonymous said...

Zero hedge has got to be one of the most tin foil, conspiracy minded blogs anywhere. Heck, they don't even want to use their own names since " it might bring personal repercussions". Wow. Talk about self grandiosity. Yeah, the black helicopters might be following them around. Signs of mental instability. Anyway, with its black pools, high frequency trading and whatnot, life sure is hard for them. Everyone on wall street is part of a giant conspiracy. Only ZH is a big part of the scare conspiracy to keep folks out of a cheap market. Thats the real conspiracy. Of course they don't see that one.

Palmoni said...

I think the stock price may be reflecting on some of the activity going on in Colombia.

A lot of whispering, but I'm waiting until things are in print before commenting.

I've been following your TMI--what's with the big discount on the warrants?

Anonymous said...

Palmoni, could you hint to us whether to sell or hold? i assume you are still holding even with these whispers?

Palmoni said...

I think it's going to be a billion + company, but I don't want to disclose whisperings until I see it in print.

I don't want to be guilty of "hyping" an opinion--especially if the stock trades thin.

If the stock was more liquid, I'd feel more comfortable of extolling its virtues!

I thought that things would of progressed just a bit more quickly--and since it didn't I'm just waiting for the stuff I think is going to happen, to happen first.

But I've always been an anticipatory trader and investor. Sometimes my timeline is different than a companies.

But I'm glad the stock is acting better

Anonymous said...

actually what is going on with AMD...good earnings for the most part...shot up then back down...trying to figure if it's going up or to pick up some.

Anonymous said...

Hey Palmoni,

I think the warrants are trading at a discount since they are not exercisable yet. They have to complete the paper work so it may take 30 days or less. I figured when it becomes exercisable the arbs will move in and correct the pricing. Also the warrants won’t expire until sometime in 2011 so there’s a lot of time premium left in them.

The company they acquired looks really promising and they have big clients like Pepsi lined up for their business. Man I’m still shocked that I bought these things at 15 cents and now are trading above $1, what a rush!!

I’m glad MGOL is trading better but I did appreciate the plunge as I was able to double my position.

Thanks for all the things you do on this blog and I’m having a blast reading each of your posts. If I run into anything interesting, I’ll be sure to mention it here!

Palmoni said...

I paid a buck more than you! I've played SPAC warrants before, and it's just too hard for me to resist the temptation when they are at such a discount!