Few comments

Just a few minor comments this weekend.

1) GGC - so far this speculaton has turned out quite pleasantly. The $35 calls which purchased are still far out of the money, but due to the increased volatility, I estimate that they have appreciated approximately 30% from their purchase price. The stock is relatively illiqud however, so it is tougher to make quick comparisons. Anyways - here is the important and relevant news. Earnings were good and the stock increased ~9% on Friday on double the normal volume. From this point I am just going to hold this one through August. I expect a spectacular earnings win for the July 27 report due to the easier year on year comp from last Q2, favorable FIFO accounting impact of the natural gas pricing, and finally continuing strong demand for GGC's products. I ended up purchasing even more call options on this one on Thursday so I now have a total position of 50 August $35 call options with an average cost of $0.66. With GGC currently hovering near 30 I think it could retrace the recent gains at some point over the next 2 weeks, still I expect the stock to trade at least in the mid 30s prior to August and if all goes well, perhaps into the mid 40s. Here is the chart:

Nice breakout above the 200 MA. But it will probably retest soon to confirm that it is now support and not resistance. Would be nice to see continued interest and higher volume for at least 2 or 3 more days in order to have some fuel for the fire and a nice sustained uptrend into the mid-30s.

2) Dollar collapse continues. Gold hit a new high of $650 an ounce on Friday and it now looks like it might run as high as $800 or $900 an ounce by the end of the year. I may pick up a position hear on the next weakness. I am considering a position in either the new Silver ETF (SLV) or maybe the new small cap gold miners index (XGD).


Best regards,

BG