Peter Hodson’s Research Tools

 

 

With an ever expanding suite of metrics and ratios available to retail investors, deciding how to size up a prospective position in a company has never been more complicated. But does it have to be?

Peter Hodson, the founder and CEO of 5I Research joined BNN Wednesday to discuss the five basic things he looks for when analyzing companies.

RETURN ON EQUITY

It’s the amount of net income returned as a percentage of shareholder equity. Basically, it’s a measure of how much money you are making from a company versus how much money you put in.

“A good number is 20 percent, but some of the great companies can come in with 45 or 50 percent which basically means they are exceptionally profitable and you are making a lot of money from what’s being put into the company. It’s my favourite ratio by far,” said Hodson.

COMPANY GROWTH VERSUS INDUSTRY GROWTH

When a company is growing faster than its peers, you have a sure fire sign that something good is going on. It could be anything from a better product, to a faster growing consumer base, to better sales people. It doesn’t really matter, growth is growth.

“Magna International (MG.TO -0.13%) recently had a profit growth of 13 percent and volume growth of about the same versus the auto industry as a whole, which is growing at three or four percent. They are multiples better than the industry right now,” said Hodson.

PERFORMANCE DURING THE RECESSION

How a company weathers tough times says a lot about its fundamentals. Chances are if it fought its way through the worst economic conditions seen in a generation, it will continue to do reasonable well in more prosperous times.

“Priceline.com (PCLN-O) tripled their profits in the middle of the financial crisis. It’s a travel company and nobody was travelling,” said Hodson.

STOCK OWNERSHIP BY MANAGEMENT

It’s a good show of faith if the executives have some real skin in the game – not stock options – actual positions that show they believe in the company. If they drop the ball, you want them to hurt as bad as their shareholders.

“Constellation Software Inc. (CSU.TO 3.38%), it’s one of the best performing stocks on the TSX. The CEO owns about $360 million worth of stock and the executives are forced to put some of their bonuses into stock, not options, just pure stock. They are on the line with investors as well,” said Hodson.

MANAGEMENT’S ABILITY TO EXECUTE

Has the company met analyst expectation? Have they hit that mark consistently? Look for companies that regularly beat the street. It sounds simple, but that’s why Hodson likes it.

“What we look for is momentum, a company that can under promise and over deliver,” said Hodson.

 

 

TSX Venture Exchange: How are ‘zombie’ companies surviving? $ 500,000 To List Your Venture

Image result for stock market cartoons 2014

 

However one feels about the debate, all would agree that Mr. Bass’s research paints a frightening portrait of Canada’s junior exploration sector. It raises questions about how hundreds of tiny resource companies can continue to exist. Sources said that auditors are offering these companies cut-rate fees to maintain their viability.

The big numbers are grim: by Mr. Bass’s calculation, these “zombies” have combined negative working capital of greater than $2 billion. Raising money has become impossible for many of these junior firms as market conditions have deteriorated over the past few years. Now they are just “walking dead” companies with no serious prospects that pose a threat to investors looking at the sector- but an opportunity for his clients to gain a listing for about $500,000 Canadian cash investment and annual listing and audut fees of $35,000.

So why are they still around? Mr. Bass noted that TMX Group Inc. is a profitable corporation that relies on listing fees for revenue. He believes the exchange is failing to enforce its own rules, and also blames auditors and securities regulators for not doing enough to crack down on these companies and protect investors.

In some cases, the accounts payable in these tiny companies are owed largely to insiders, which shows they are putting their own money in to keep the firms going.

There is a legitimate debate to be had on whether it is in the interests of investors to have companies such as these on the public markets.

More Application Not More Analysis Is Needed

Do you have a tax  strategy ?

The most important thing that you MUST do is seek advice from a qualified advisor – Jack A. Bass, B.A. LL.B. (someone who understands international tax jurisdictions and tax law) . Your advisor must understand the benefits of particular offshore jurisdictions. It is your responsibility to take action.

 

Contact Information:

To learn more (at no cost or obligation)

Email info@jackbassteam.com  OR

Telephone  Jack direct at 604-858-3202

Monday – Friday 10:00- 4:00 Pacific Time Zone ( same as Los Angeles)

Do You Have A Plan – or are you just planning to think about a plan ?

Using The Caymans To Avoid Taxes on Portfolio Profits

The Keyprotect income from taxes, including those invested in the United States, from tax, while retaining control over and use of the funds.

The Cariibean Portfolio 

A typical way that U.S. individuals can easily evade tax on domestic income through a Cayman Islands operation with relatively little expense other than the ione time set-up fees :

The individual can open a bank account in the name of a Cayman corporation that can be set up for a minimal fee. Money can be electronically transferred without any reporting to tax authorities, and investments can be made in the United States or abroad. Investments by non-residents in interest bearing assets and most capital gains are not subject to a withholding tax in the United States.

In addition to corporations, foreign trusts can be used to accomplish the same approach. Trusts may involve a trust protector who is an intermediary between the grantor and the trustees, but whose purpose may actually be to carry out the desires of the grantor. These trusts are legal but in either case they can be used to protect income from taxes, including those invested in the United States, from tax, while retaining control over and use of the funds.

Limited Information Reporting Between Jurisdictions

In some cases the countries themselves have little or no information of value. One article, for example, discussing the possibility of an information exchange agreement with the British Virgin Islands, a country with more than 400,000 registered corporations, where laws require no identification of shareholders or directors, and require no financial records, noted: “Even if the BVI signs an information exchange agreement, it is not clear what information could be exchanged.”

Alternative Policy Options to Address Corporate Profit Shifting Because much of the corporate tax revenue loss arises from activities that either are legal or appear to be so, it is difficult to address these issues other than with changes in the tax law. Outcomes would likely be better if there is international cooperation. Currently, the possibilities for international cooperation appear to play a bigger role in options for dealing with individual evasion than with corporate avoidance. Several of the issues addressed below, such as hybrid entities and instruments, transfer pricing for intangibles, and debt also have been considered in the OECD action plan on base erosion and profit shifting.

Read more  at our March 22 article on The Tax Haven Guru ( wordpress) https://taxhavenguru.wordpress.com/   AND

 

Read more at http://www.youroffshoremoney.com

Application :

Do you have a tax reduction strategy ?

The most important thing that you MUST do is seek advice from a qualified advisor – Jack A. Bass, B.A. LL.B. (someone who understands international tax jurisdictions and tax law) . Your advisor must understand the benefits of particular offshore jurisdictions. It is your responsibility to take action.

In most jurisdictions you can set up your offshore company in as little as a few weeks. We most often start the process with registering a company name and sending in the right documentation and supporting documents for the incorporation and a bank account(s) or merchant account for you and your business.All of this can be conducted by internet on in rare cases we will attend in person – for you.

Contact Information:

To learn more about asset protection, trusts ,offshore company formation and structure for your business interests (at no cost or obligation)

Email info@jackbassteam.com  OR

Telephone  Jack direct at 604-858-3202

Monday – Friday 10:00- 4:00 Pacific Time Zone ( same as Los Angeles)

Do You Have A Plan – or are you just planning to think about a plan ?

 

Everyone Hates U.S. Stocks ?

 

Not since the year of the credit crisis have the world’s biggest investors had a lower opinion of American equities.

With interest rates poised to rise and Europe ascending, the percentage of global money managers who are underweight American equities is the highest since 2008, a survey by Bank of America Corp. shows. At the same time, clients of exchange-traded funds have pulled about $14 billion from U.S. equities this quarter and added $29 billion to international stocks, data compiled by Bloomberg show.

Souring sentiment is a reversal from the last two years, when money flowing to the U.S. was double that going elsewhere. The Standard & Poor’s 500 Index trails virtually every developed market in 2015 as accommodative central-bank policy from Europe to Japan lifts valuations and the Fed winds down programs that helped share prices triple since 2009.

“The U.S. stock market was an island of opportunity for a number of years,” Stacey Nutt, chief investment officer who oversees about $4 billion at ClariVest Asset Management LLC in San Diego, California, said by phone. “It has lost that status, not because it’s negative, but because other places around the world have started becoming more attractive.”

The percentage of money managers holding fewer American stocks than the country’s weighting in benchmark indexes exceeds those overweight by 19 percentage points, according to a March 6-12 poll of 207 money managers in Bank of America’s survey released Tuesday. That compared with a net 6 percent overweight in February.

Better Returns

After beating global stocks every year since 2009, the S&P 500 is up 0.7 percent since January, compared with a 2.1 percent advance in the MSCI World ex-USA Index. The U.S. gauge is on pace for the worst quarterly performance compared with the world index since the third period of 2013.

Better returns elsewhere are luring investors away after American stock ETFs attracted nearly $350 billion in the past two years, compared with the $160 billion that flowed to international equities.

Europe, in particular, has gained favor, as the Stoxx Europe 600 Index has rallied 16 percent so far in 2015, with benchmark indexes in Germany, Portugal and Denmark rising more than 20 percent. The gains came as European Central Bank President Mario Draghi introduced a 1.1 trillion-euro ($1.2 trillion) quantitative-easing program aimed at spurring growth and thwarting deflation.

The WisdomTree Europe Hedged Equity Fund has absorbed $8.4 billion this quarter, the most among all equity funds. By contrast, the SPDR S&P 500 ETF Trust, the biggest ETF tracking the U.S. benchmark gauge, has seen the biggest outflows, with investors withdrawing $31.2 billion.

Mindset Change

A net 35 percent of respondents in Bank of America’s survey picked the U.S. as the worst place to invest in the next 12 months, the most in almost a decade, while the proportion of those favoring Europe jumped to a record 63 percent.

“There has been a mindset change,” Jeffrey Saut, chief investment strategist at Raymond James Financial Inc., in St. Petersburg, Florida, said by phone. “The crowd now thinks that the quantitative easing program that Draghi has put on is going to do the same as it did here.”

Negative sentiment by fund investors toward U.S. equity markets has been of little consequence for American stocks since the bull market began in 2009. The S&P 500 has risen in five of the last six calendar years, a stretch that encompasses $93 billion in outflows from funds in 2012, when the S&P 500 jumped 13 percent.

Favorably Inclined

Most of the bull-market gains came as individuals plowed money into the fixed-income market after living through the S&P 500’s 57 percent plunge from October 2007 to March 2009. To some investors, skepticism has been the fuel for advances, leaving pools of unconvinced speculators to change their minds and buy as gains snowballed, especially in 2013 and 2014.

Hedge funds have raised their bets against equities, sending a gauge of manager sentiment to the lowest level since October, a survey from Evercore ISI showed. The measure of hedge fund long versus short bets fell to 49.6 in the week ending March 11, from 50.3 the previous week. Its low point in 2014 was reached in October, when the S&P 500 suffered the year’s worst retreat of 7.4 percent from Sept. 18 to Oct. 15.

“I can understand the rationale of being discouraged, thinking the U.S. is not the place to be, but we are still favorably inclined toward the U.S,” Walter Todd, who oversees about $1 billion as chief investment officer for Greenwood, South Carolina-based Greenwood Capital, said by phone.

Relatively higher valuations and a dimmer profit outlook are taking a toll on American stocks. After surging 207 percent during a six-year bull run on the back of Fed stimulus and a doubling in corporate profits, the S&P 500 trades at 18.5 times earnings, near the highest level since 2010. That compares with a multiple of 17 for the MSCI world index.

The proportion of investors in Bank of America’s survey saying U.S. equities are overvalued has reached its highest since May 2000 at a net 23 percent.

‘Europe Better’

Earnings from American companies are forecast to post the first back-to-back profit contractions since 2009 as the dollar’s ascent to highs not seen since the invasion of Iraq hurt sales for firms like Procter & Gamble Co. to Pfizer Inc., analyst estimates compiled by Bloomberg show.

By contrast, a net 38 percent of respondents in Bank of America’s survey say that they expect double-digit earnings growth in Europe in the next 12 months.

“It’s U.S. good, Europe better,” John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York, said by telephone. “I wouldn’t say anything bad about the U.S. at this point. If I were pushed, I’d lean toward Europe in the next two years but it wouldn’t be any more than a shallow lean.”

NOTE: Our November New letter:

Out of oil

Out of Gold

Out of Shipping

 Jack A. Bass Managed Accounts

November 2014 – 40 % cash position

Year End Review and Forecast

 

Oil/ Energy

I am very happy for the call in natural gas prices – out at $12 and into oil. When oil was above $100 we lessened positions and that is our saving grace in the past two weeks. We are not bottom feeders and will wait for a turn in the market before reentering drillers or producers.

Have you avoided these sectors – you would have been better off to follow our advice in 2014 and now you have to decide for 2015.

No one – and I am not being humble here – can project the future with great accuracy but our clients continue to do very well and we offer that experience to you.

Fees : 1 % annual set up and a performance bonus of 20 % – only if we perform.

You can withdraw your funds monthly if you require an income stream.

Contact information:

To learn more about portfolio management ,asset protection, trusts ,offshore company formation and structure for your business interests (at no cost or obligation)

Email info@jackbassteam.com or

Telephone :  Jack direct at 604-858-3202

10:00 – 4:00 Monday to Friday Pacific Time ( same time zone as Los Angeles).

Peter Schiff : The Real Crash – Book Review – Spectacularly Bad Timing and Bad Advice

 

 

The Real Crash

America’s Coming Bankruptcy – How to Save Yourself and Your Country

2012

St.Martin’s Press

 

page 29:

“… the next big bet is shorting the U.S. government. How ?

1) by shorting the dollar…

2) brace yourself for rapid inflation…

3)by buying physical gold…

4) and gold mining stocks…

5) holding strong foreign currencies like …the Canadian dollar…

 

OMG – wrong for five out of five

 

J.Bass

Here is our recent letter:

Managed Accounts Year End Review and Forecast

November 2014 – 40 % cash position
Gold and Precious MetalsThe largest gains for our clients came from the exit from the gold producers at $18oo an ounce and continuing until we hold no gold and no gold miners . This from the author of The Gold Investors Handbook.2015 – We continue to be on the sidelines for this sector – regardless of the gnomes of Switzerland . As a safe haven gold simply wasnot there for investors despite turmoil in the Middle East, Africa and Ukraine.How much more frightening can the prospect for peace be than to have wars in multiple locations? Secondly the spectre of inflation – on which I have given numerous talks – simply failed to materialize. In fact economists and portfolio managers such as myself are now more concerned about deflation – and the spectre is a Japanese style decades long slide in the world economy.

Shipping Sector / Bulk Shippers You can review our stock market letter athttp://www.amp2012.com to follow our profits in the shipping sector before our retreat as overcapacity has yet to effect continued overbuiding. In 2008-9 rates-  illustrated by the Baltic Dry Index – were at their peak. The BDI hit over 10,000. Today it is roughly 10 % of that benchmark and the sector slide continues. We have an impressive watchlist of former ” darlings” – but we are content to watch and wait.

The returns for Jack A. Bass Managed Accounts

2014  17.9 %

March 10 Update:

LONDON (Reuters) – Gold fell almost 1 percent to a three-month low on Tuesday as the dollar rose to a near 12-year peak versus the euro on renewed expectations of a mid-year hike in U.S. interest rates.

Spot gold dropped to its lowest since Dec. 1 at $1,155.60 an ounce in early trade, and was down 0.4 percent at $1,161.90 by 1048 GMT.

Platinum fell to a new near-five-year low of $1,125.75 an ounce. The metal has dropped 5.1 percent since the start of the year on expectations of lower demand from the automotive sector and higher mine supply.

“Dollar strength overnight in Asia sent the complex lower,” Deutsche Boerse’s MNI senior analyst Tony Walters said.

“The trend is your friend and people will continue to sell rallies,” he added. “Seemingly the only spanner that could be thrown into the works at the moment is if the Fed doesn’t raise rates in June, but the market is short … and it continues to go in its favour.”

Gold took a hit after Friday’s strong U.S. non-farm payrolls data boosted expectations the Federal Reserve would begin increasing interest rates by the middle of the year.

 

Warren Buffett BERKSHIRE HATHAWAY INC. SHAREHOLDER LETTERS

BERKSHIRE HATHAWAY INC.

SHAREHOLDER LETTERS

Many of the letters below are presented in PDF format. If you do not have Adobe Acrobat® Reader® software on your computer, use the link to go to Adobe’s web site for a free download.     Adobe
1977
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For shareholders and others who are interested, a book that compiles the full unedited versions of each of Warren Buffett’s letters to shareholders between 1965 and 2012 is available for sale at this link.

 

ALL SHAREHOLDER LETTERS INCLUDE COPYRIGHTED MATERIAL REPRODUCED WITH PERMISSION

 

 

Signs Of A Market Top : $100 Million for four food trucks

Barry Ritholtz and Bloomberg last week drew attention to the fact that shares of The Grilled Cheese Truck Inc. had commenced trading on the OTCQX marketplace under the ticker GRLD:

“Let’s look at the fundamentals of the Ft. Lauderdale, Florida-based company. Based on the 18 million shares outstanding and a recent stock price of $6 the company has a market value of about $108 million.

No matter how much you like grilled cheese… I can’t see this as a reasonable valuation.

“If you go to the company’s website, you will learn that ‘The company currently operates and licenses grilled cheese food trucks in the Los Angeles, CA area and Phoenix, AZ and is expanding into additional markets with the goal of becoming the largest operator in the gourmet grilled cheese space.’

“[A]ccording to the company’s financial statements, it has about $1 million of assets and almost $3 million in liabilities. In the third quarter of 2014, it had sales of almost $1 million, on which it had a net loss of more than  $900,000.”

“I can’t think of a more interesting sign of the old irrational exuberance in equity markets than a publicly traded grilled cheese truck (four in this case) business trading at a $100-million-plus valuation. That sort of thing doesn’t happen unless there is significant excess in the markets.”

Any reference to a company seeking to dominate the “gourmet grilled cheese space” is desperately seeking a twin reference to a slogan from late 1999 (right before the bubble burst):

“Our business strategy is to lose money on every sale but make up for it in volume.”

Enjoy the party, but dance near the door.

Are You Really Going To Trust A Fund Manager – Again?

How will You Improve Your Portfolio Results In 2015 ?

This probably comes as no big surprise, but the average fund manager hasn’t beat the market indices during the last 10 years. Amazing isn’t it?
 
And for those managers who do, it usually only in a bull market.
 
In bear markets, the number of profitable funds drops to almost zero! With those kind of odds, do you really want turn your money over to managers who won’t even move you to cash when its time to protect you from severe market declines?
 
As you have no doubt discovered, the old “tried and true” rules of investing may are still tried, but they certainly aren’t true. In fact, if the “buy and hold” strategy were really the best way to profit, why would institutional traders – the largest daily volume traders in the markets – move their money in and out of stocks like clockwork.
 
The truth is, they are making profits by selling to you when they know it’s time to go!
Unsuspecting investors buy when institutions are ready to sell, and sell when big money is ready to buy. Retail investors are the perfect  shills because the little guy will always trade on emotion or bad advice, and end up putting their money right into the hands of the hedge fund traders wanting to unload positions!
Our ( Jack A. Bass)  Managed Accounts keeps you from falling into that trap! It shows in advance when institutional traders are about to make the switch, whether buying or selling, and you’ll be moving your money to keep one step ahead of them – with much less emotion.
Now, instead of market “head fakes” causing you to lose money, you’ll leverage minor turns as opportunities to add to positions you are already holding. We call it trading the short term cycle.
 
 
End Costly Investing Mistakes
 
Successful investing is can often be counter- intuitive to how most investors want to trade.

Proof of The Pudding:

Here is our recent letter:

Managed Accounts Year End Review and Forecast

November 2014 – 40 % cash position
Gold and Precious MetalsThe largest gains for our clients came from the exit from the gold producers at $18oo an ounce and continuing until we hold no gold and no gold miners . This from the author of The Gold Investors Handbook.2015 – We continue to be on the sidelines for this sector – regardless of the gnomes of Switzerland . As a safe haven gold simply wasnot there for investors despite turmoil in the Middle East, Africa and Ukraine.How much more frightening can the prospect for peace be than to have wars in multiple locations? Secondly the spectre of inflation – on which I have given numerous talks – simply failed to materialize. In fact economists and portfolio managers such as myself are now more concerned about deflation – and the spectre is a Japanese style decades long slide in the world economy.
Shipping Sector / Bulk ShippersYou can review our stock market letter athttp://www.amp2012.com to follow our profits in the shipping sector before our retreat as overcapacity has yet to effect continued overbuiding. In 2008-9 rates-  illustrated by the Baltic Dry Index – were at their peak. The BDI hit over 10,000. Today it is roughly 10 % of that benchmark and the sector slide continues. We have an impressive watchlist of former ” darlings” – but we are content to watch and wait.
Oil/ EnergyI am very happy for the call in natural gas prices – out at $12 and into oil. When oil was above $100 we lessened positions and that is our saving grace in the past two weeks. We are not bottom feeders and will wait for a turn in the market before reentering drillers or producers.On Friday November 27th, crude oil prices dropped to below $72 and the slide has continued into the weekend, with Brent crude oil at $70.15 as I write this post. Shares of major oil companies traded down on Friday. Our former energy sector holdings are down another between 4% and 11%, including SDRL, which dropped another 8% following Wednesday’s 23% plunge…

Have you avoided these sectors – you would have been better off to follow our advice in 2014 and now you have to decide for 2015.
No one – and I am not being humble here – can project the future with great accuracy but our clients continue to do very well and we offer that experience to you.

Fees : 1 % annual set up and a performance bonus of 20 % – only if we perform.

You can withdraw your funds monthly if you require an income stream.

Alternate Guaranteed Income Payments

Private client funds Minimum $10,000 Maximum Loan $500,000

Our client is seeking funds to expand their tanker fleet .

Interest 12 % compounded – paid 1% per month

Floating charge of the full $500,000 against the fleet – valued at  more than $ 1 M

 

Contact information:

To learn more about portfolio management ,asset protection, trusts ,offshore company formation and structure for your business interests (at no cost or obligation)

Email

jackabass@gmail.com OR

info@jackbassteam.com  OR

Call Jack direct at 604-858-3202

10:00 – 4:00 Monday to Friday Pacific Time ( same time zone as Los Angeles).

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

Tax website  Http://www.youroffshoremoney.com

Get Out Of The Oil Patch, Get Out of Dry Bulk Shipping – New Paradigm Update

It is human nature to look for bargains – and destroy your portfolio as you gather losers into what used to be a ” nest” egg.

Look at Seeking Alpha and count the ” analysts” saying Dryships ( DRYS) is going to turn – how none forecast the sub dollar level it now enjoys.

“We could definitely see $55 next week,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “We are probably going to see some violent trading.”

‘Drifting Down’

Skip York, a Houston-based vice president of energy research at Wood Mackenzie Ltd., said the next price target is $45.

“The market hasn’t seen the response they’re looking for on the supply side yet,” York said. “We’re now in this environment where I think prices are going to keep drifting down until the market is convinced, until the signal that production growth needs to slow has been received and acted on by operators.”

Are you still a client of a portfolio manager urging you to ” stay the course” – or worse, telling you to add to losing positions and losing sectors?

small- and mid-capitalization stocks, both E&P and Oil Service, are trading ~60% below their recent peaks, on average.

  • A growing number of stocks are priced at less than one-quarter of their peak prices achieved less than six months ago.

This is what is happening to oil TODAY ( Friday Dec. 12)

U.S. oil drillers, facing prices that have fallen below $60 a barrel and escalating competition from suppliers abroad, idled the most rigs in almost two years.

Rigs targeting oil dropped by 29 this week to 1,546, the lowest level since June and the biggest decline since December 2012, Baker Hughes Inc. (BHI) said on its website today. Those drilling for natural gas increased by two to 346, the Houston-based field services company said. The total count fell 27 to 1,893, the fewest since August.

As OPEC resists calls to cut output, U.S. producers from ConocoPhillips (COP) to Oasis Petroleum Inc. (OAS) have curbed spending. Chevron Corp. (CVX) put its annual capital spending plan on hold until next year. The number of rigs targeting U.S. oil is sliding from a record 1,609 following a $50-a-barrel drop in global prices, threatening to slow the shale-drilling boom that’s propelled domestic production to the highest level in three decades.

“It’s starting,” Robert Mackenzie, oil-field services analyst at Iberia Capital Partners LLC, said by telephone from New Orleans today. “We knew this day was going to come. It was only a matter of time before the rig count was going to respond. The holiday is upon us and oil prices are falling through the floor.”

ConocoPhillips said Dec. 8 that the Houston-based company would cut its spending next year by about 20 percent, deferring investment in North American plays including the Permian Basin of Texasand New Mexico and the Niobrara formation in Colorado. Oasis, an independent exploration and production company based in Houston, said Dec. 10 that it’s cutting 2015 spending 44 percent to focus on its core area in North Dakota.

What To Do ?

Here is our recent letter:

Managed Accounts Year End Review and Forecast

November 2014 – 40 % cash position
Gold and Precious MetalsThe largest gains for our clients came from the exit from the gold producers at $18oo an ounce and continuing until we hold no gold and no gold miners . This from the author of The Gold Investors Handbook.2015 – We continue to be on the sidelines for this sector – regardless of the gnomes of Switzerland . As a safe haven gold simply wasnot there for investors despite turmoil in the Middle East, Africa and Ukraine.How much more frightening can the prospect for peace be than to have wars in multiple locations? Secondly the spectre of inflation – on which I have given numerous talks – simply failed to materialize. In fact economists and portfolio managers such as myself are now more concerned about deflation – and the spectre is a Japanese style decades long slide in the world economy.
Shipping Sector / Bulk ShippersYou can review our stock market letter at http://www.amp2012.com to follow our profits in the shipping sector before our retreat as overcapacity has yet to effect continued overbuiding. In 2008-9 rates-  illustrated by the Baltic Dry Index – were at their peak. The BDI hit over 10,000. Today it is roughly 10 % of that benchmark and the sector slide continues. We have an impressive watchlist of former ” darlings” – but we are content to watch and wait.
Oil/ EnergyI am very happy for the call in natural gas prices – out at $12 and into oil. When oil was above $100 we lessened positions and that is our saving grace in the past two weeks. We are not bottom feeders and will wait for a turn in the market before reentering drillers or producers.On Friday November 27th, crude oil prices dropped to below $72 and the slide has continued into the weekend, with Brent crude oil at $70.15 as I write this post. Shares of major oil companies traded down on Friday. Our former energy sector holdings are down another between 4% and 11%, including SDRL, which dropped another 8% following Wednesday’s 23% plunge…

Have you avoided these sectors – you would have been better off to follow our advice in 2014 and now you have to decide for 2015.
No one – and I am not being humble here – can project the future with great accuracy but our clients continue to do very well and we offer that experience to you.

Fees : 1 % annual set up and a performance bonus of 20 % – only if we perform.

You can withdraw your funds monthly if you require an income stream.

Alternate Guaranteed Income Payments

Private client funds Minimum $10,000 Maximum Loan $500,000

Our client is seeking funds to expand their tanker fleet .

Interest 12 % compounded – paid 1% per month

Floating charge of the full $500,000 against the fleet – valued at  more than $ 1 M

 

Contact information:

To learn more about portfolio management ,asset protection, trusts ,offshore company formation and structure for your business interests (at no cost or obligation)

Email

jackabass@gmail.com OR

info@jackbassteam.com  OR

Call Jack direct at 604-858-3202

10:00 – 4:00 Monday to Friday Pacific Time ( same time zone as Los Angeles).

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

Tax website  Http://www.youroffshoremoney.com

 

Lor Loewen's photo.
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Guarantee from ANZ Bank 0 % Annually ! Hurry Now !

ANZ-zero-interest ( Compare to our Guaranteed  Minimum 12 %)

If you’re looking around right now for a new bank account that pays a reasonable rate of return, ANZ bank has a hell of a deal for you: 0%!

That’s right. ANZ is offering its depositors absolutely zero interest.

Now, a bank paying 0% isn’t exactly abnormal in today’s banking environment. But what’s really strange is that ANZ actually took out an ad in an Australian newspaper to advertise this.

Yesterday’s page 10 of the Australian Financial Review (AFR) had a quarter-page ad from ANZ boasting about 0% interest rates for accounts denominated in number of foreign currencies, including Hong Kong dollars, Japanese yen, British pounds, and more.

Curiously, in order to qualify for this bargain 0% rate, you have to meet a rather significant deposit minimum.

For the 0% Japanese yen account, for example, you have to deposit 23.5 million yen (currently about $223,000 US dollars).

So basically some manager at ANZ actually thought that paying 0% interest on substantial account minimums would be an attractive offer… so attractive, in fact, that they should brag about it in the newspaper.

This is so completely ridiculous. But it really crystalizes what’s wrong with the entire financial system.

We’re told to keep our money in banks… that banks are safe. But the objective data tells a completely different story.

Holding money in most banks guarantees that you will lose money.

Adjusting for taxes and inflation, you’re losing at least 2% per year, even if you believe the governments’ notoriously understated official inflation statistics.

This level of absurdity pushes people into riskier and riskier assets, simply in an effort to avoid LOSING money.

Case in point– the government of Spain recently issued 1 BILLION euros worth of bonds that yield a paltry 4%. And they’re due in 2064.

Bear in mind, Spain is completely broke. And just two years ago the government had to pay 7.5% on ten year notes.

Now people are lending money to the Spanish government for 50 freaking years at just 4%.

This is insane.

But couldn’t this insanity last forever? Couldn’t the grand wizards of the financial system continue to engineer one deranged bailout after another for decades to come?

Possibly. But unlikely.

Right now the US dollar is the world’s dominant reserve currency. This gives the United States nearly total control of the global financial system.

In order to clear cross-border trade transactions, foreign banks HAVE to use the US banking system (which is controlled by the US government).

Further, rest of the world must essentially mirror US Federal Reserve policy.

But this power… and insanity… only lasts as long as the US dollar is the dominant reserve currency. And this is starting to change rapidly.

China’s renminbi is becoming much more widely accepted around the world for trade settlement; a number of foreign governments are now holding renminbi reserves and doing deals to promote trade in renminbi.

Even in the United States, renminbi payment business increased 327% last year, and the US is now the fifth largest offshore renminbi settlement center.

It’s no secret here, this is happening right under our noses. The financial system IS changing.

People who ignore this trend do so at their own financial peril.

Yet those who understand what’s happening and align themselves accordingly stand to make fortunes.

The Weimar Republic’s episode with hyperinflation in the 1920s is a great example.

Despite all the warning signs, most people did nothing… and they got wiped out.

A handful of people, though, saw the writing on the wall. They took steps to safeguard what they had. And they allocated their investment capital to bet that the currency would collapse.

They were right. And vast fortunes were created in a matter of months.

Throughout history there’s always a handful of people ahead of the trend. And they’re rewarded for their foresight.

Right now we’re in the very early stages of a similar transition– arguably one of the most important economic transformations since the Industrial Revolution.

Because of this, opportunities already abound if you know where to look. It’s an incredibly exciting time to be alive.

If you agree with this premise but are just starting to wrap your mind around what’s happening, let me extend an invitation :

 

In the same way that I urge investors to use an adviser I too have a business coach. This week I complained that my performance of a 31% gain in 2013 was not gaining me the respect or new clients to which I thought I was entitled.

He challenged me :
a) I was not ” entitled ” to anything more than I earned by performance
b) My performance allowed me to guarantee an annual 12 % return or I will forfeit the 1 % annual fee and the 20 % performance fee.

The Challenge – a guarantee of a minimum of 12 % for your annual investment return 

Investors and pensions need efficient methods to screen, research, perform due diligence and monitor managers in their quest to deliver returns. They need to know the data they are using is accurate and fresh — and represents the best options available worldwide across every asset class. They must take into account their own assets and liabilities and the impact to portfolio risk while screening strategies and tracking exposures. They also need polished reports and presentations to provide evidence of a sound, inclusive selection processes for regulators and committees.

Placing these decisions in Jack A. Bass Managed Accounts removes the work from your hands to ours .

Meeting the Challenge

Jack A. Bass Managed Accounts offers a comprehensive suite of solutions for screening and monitoring, as well as risk assessment leveraging the data of the most important databases. In fact, 89% of surveyed clients agree that Jack A. Bass Managed Accounts helps them save their time during the due diligence process, while 75% of pension clients agreed .

The answer to When? – is always NOW ! – not tomorrow.
Contact Information

Information must proceed action and that is why we offer a no cost / no obligation inquiry service if you are not already a client.

Email info@jackbassteam.com

or Call Jack direct at 604-858-3202 – Pacific Time 10:00 – 5;00 Monday to Friday

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