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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: A Few Other Items
In addition to the gold/silver deliveries, there are also a few other items of considerations that are worrying the gold cartel. Firstly we have the standard jobs report on Friday, which is traditionally met with much paper gold selling on the Monday prior (today). There is also a slew of manufacturing data out this week that will no doubt be poor and put pressure on the USD. Thus, we have buffering action as well. Tomorrow, we also get motor vehicle sales with the Big 3. As part of the begging process to put pressure Congress, the sales will no doubt be very bad. Lastly, retail sales this holiday season has been poor despite the media communication to the contrary. No doubt the media ploy has been to sucker in shoppers that are susceptible to the buying frenzy. See the article below to distinguish between sales and earnings.
Could this be Custer's last stand?
Possibly - VHF
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The Holiday Spending Head Fake
Douglas A. McIntyre
December 1, 2008
Management of companies in the retail sector are waking up to sunny skies today.
Evidence is that Black Friday sales moved up 3% over last year.
But sales are not profits, and that is one piece of the puzzle which seems to have been lost.
An increase in sales actually means an increase in losses at some large retailers. Discounts on some items are running as much as 70%. That may bring feet through the door, but is also may mean that each dollar a customer spends could drive a loss of several pennies.
The retail industry is known for its pathetic margins, even when times are good.
According to The New York Times, "The bargains that drove shoppers to stores were so stunning, analysts said that retailers — already suffering from double-digit sales declines the last two months — would probably see their profits erode even further."
Investors may look at the earliest figures from the weekend and believe that retail stocks are attractive, especially at their present depressed levels. Fourth quarter earnings will almost certainly show that the assumption is not true.
Detroit created the idea that selling in volume is a good idea even if each sale creates a loss. Now retailers have decided to adopt that approach as well.
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