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Peter Schiff Video Blog - December 2, 2009 (Gold, Bernanke, Jobs)

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December 02, 2009 – Comments (4)

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#1) On December 02, 2009 at 4:46 PM, kdakota630 (29.81) wrote:

12/2/09 Peter Schiff on CNBC's Squawk Box: Gold to $5k?

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#2) On December 04, 2009 at 3:37 AM, Synesthetic (< 20) wrote:

I like the part where they start debating whether there is enough gold for the masses to use for day to day transactions.  Kind of silly.  Peter Schiff makes some good points about the endless 'printing' of money.  I'm not so sure it's paper money that's being printed though.  I think it's more like electrons moving around in computers, backed up by the military, etc.  And so, at any point, we could revert back to just the 'paper money' which totals far less than the 'funny money' as represented by shares of stocks. 

If we do continue along with the 'funny money' economy and eventually people stop using cash and start using numbers stored on computers somewhere to represent their wealth, then I'd say sure, gold could be worth $5,000 an ounce.  Just look at computers - who would have thought that people could store billions of bytes of data on their personal computers? 

Some people may argue that we'd never use numbers so large in our daily transactions and so we don't have to worry about hyperinflation - but we wouldn't have to use large numbers with the introduction of a super dollar - worth $100, say. 

Don't you think it's a little ridiculous that the largest paper money denomination is $100 but we have billionaires among us??  I mean, do they really have $1+ billion dollars in $100 bills?

Anyway, I'm going off on a tangent here...

I wanted to ask you about TCK:

It looks like CCRT and TCK have something in common. Their market caps were fractions of their equities when they started their rallies. TCK had $11 billion in equity back in March with a $2 billion dollar market cap... CCRT has $600 million in equity and is trading today at a $184 million market cap. This is pretty unusual as most stocks trade at low multiples of their equities (if they have positive equities). It's why I added CCRT... is this what caught your eye with TCK? It looks like TCK made money every quarter except for one over the last year. CCRT's losses keep accelerating (not good!)... but given that they had $600 billion in equity, with losses doubling every quarter - even a $200 million dollar loss this quarter would still give them $400 million in equity. Kdakota630, it looks like CCRT and TCK have something in common. Their market caps were fractions of their equities when they started their rallies. TCK had $11 billion in equity back in March with a $2 billion dollar market cap... CCRT has $600 million in equity and is trading today at a $184 million market cap. This is pretty unusual as most stocks trade at low multiples of their equities (if they have positive equities). It's why I added CCRT... is this what caught your eye with TCK? It looks like TCK made money every quarter except for one over the last year. CCRT's losses keep accelerating (not good!)... but given that they had $600 billion in equity, with losses doubling every quarter - even a $200 million dollar loss this quarter would still give them $400 million in equity. I'm still looking to get out of CCRT as soon as possible though, after this big run.

 

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#3) On December 04, 2009 at 3:43 AM, Synesthetic (< 20) wrote:

Sorry about the poor copy/editing... the perils of posting at 4 am.   

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#4) On December 04, 2009 at 11:05 AM, kdakota630 (29.81) wrote:

When I picked Teck, it was basically because it was trading at a ridiculously low P/E, and was a Canadian mining company with their toes in a lot of commodities including Fording Coal which was another company I liked.  In retrospect, they overpaid for Fording which caused them some financial problems with their debt load once the price of coal fell too low.

Once they got approved for their bridge loan their stock price took off and hasn't come down since.

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