“The trouble with this country is that there are too many politicians who believe, with a conviction based on experience, that you can fool all of the people all of the time.”
... Franklin P. Adams, columnist (1881-1960)
July 26: Gold $1320.70 up $1.40. Silver: $19.66 up 4 cents
Papa John’s stock was upgraded on the belief that civil unrest would encourage more home pizza delivery. Last Tuesday, MarketWatch reported that Key Banc Capital Markets had upgraded Papa Johns (PZZA) to overweight from sector weight. “Analysts” at the bank have decided that with declines in the casual dining segment mean that customers are staying home…because of civil unrest.
he idea that customers are just running short of money did not seem to interfere with their view of the slowdown in the casual dining restaurant arena. So, ok, people aren’t eating out at restaurants as much. Does that imply they’re scared of terrorism? Maybe they’re all watching the National Conventions? Or the Olympic warm-ups? PZZA shares are up 23.0% over the past three months, while the S&P 500 is up 2.9% for the last three months. It looks like PZZA customers have already made their move.
In a similar vein, Lemetropolecafe.com had a piece of unhappiness last week. It was written by a Swiss guy, named Egon von Greyerz, a money manager at Matterhorn Asset Management AG, and a well known gloom and doomer. The Swissie was all about things that can go wrong. I read a bit of his six doom factors. I really didn’t want to read the rest. And what kind of a name is Egon? Wasn’t he in the Ghostbusters movie a bunch of years ago? Egon said:
“No bank will ever give depositors their money back – I know that very few believe this statement. Because, if bank depositors did, they would not hold $200 trillion of assets in the financial system which is covered with $1.5 quadrillion derivatives in the banks.”
There’s a lot of that sort of talk going around. Even a fancy New York Times writer like David Brooks, a man who has spent his career describing the inner lives of the nation’s prosperous white-collar elite is getting antsy. Brooks penned a piece entitled “Are We On the Path to National Ruin?” in which he speculated darkly. Sigh. This sort of negativity goes on every Presidential election cycle. I hope all this fooferall passes by December.
I found a bunch of little mining stocks that were happier to read about. One of them, Red Eagle (REDMF) looks like it will get into production by the end of this year. We could all use some pleasant, news about a 65 cent stock. http://seekingalpha.com/article/3991297-2-gold-juniors-trading-massive-discount-peers?li_source=LI&li_medium=liftigniter-widget Could be worse, could be worse.
FF doesn’t own any of these littl’uns, although he is thinking about them.