Monday, May 18, 2009

The Great Oil and Gold Play of 2009 - Summer Edition

As a loyal reader to Death Begins in the Colon, it's high time I let you in on a little secret: I am quadra-positioned.

Primed, if you will, for geo-financial, nay, pan-financial dominance. Or, at least, Profitability, situated above the ruins, in a nicely adorned alcove, with a clear view to pounce in the Golden Age of Globalisation.

How, you ask, is this possible?

With my four horsemen of the forthcoming pro-pocalypse - CDCH, MDMN, DBO, and last, but not least, DXO.

What the hell are those, you ask?

The first, Cerro Dorado, or CDCH, is a penny stock (now 3 pennies!), which I first purchased in January, a Gold Mine in Chile, showing "Promising Core Samples." Someone told someone who told someone else about it, and the next thing you know, Whammo! I needed several thousand shares STAT. (That's what I call due dilligence)  I bought in at .016, and it went to around .037 or so before settling around .03, where it currently lay. The big gossip: The CHINESE are showing interest in buying the mine, and if purchased, the stock has potential to reach the $10.00+ range. This would, of course, be a nice chunk of change. My Verdict - Horseshit, but hell, I've already doubled my money (if, of course, I found a buyer, err), so I'm in for the long haul. For now, anyway.

The second, Medinah Minerals, is a sister company of CDCH.  Same idea - Mine in Chile, "Promising" core samples, "Promising" potential JV (that's Joint Venture) with the "Chinese" (love how they throw them Chinamen around to get the investors salivating), purchased at .007, now around .02 - more than doubled my money, but staying in for long haul anyway. 

Both of the above, of course, have the potential to crash to 0.00, but that's the nature of penny stocks. But they can RISE! Like a glorious Phoenix, doused in Gasoline with a firecracker up it's ass. Beautiful spectacle.

That, my friends, represents the Great Gold Play of Summer 2009. The Great Oil play awaits!

Act One of said Oil Play? DBO, the oil ETF also known (formally) as "PowerShares DB Oil Fund." I bought at the (current) 52 week low of 15.75, and it is now hovering around 22. The reason I bought? It's 52 week high - 55.65. Sure, this was when the Oil prices peaked like a phish fan on a ten strip last summer, but hey, with Peak Oil and whatnot, it's sure to come back around. Right? (Silence.) False economic recovery? Um, er, well, Maybe! Hey, I'm up on it, but we'll see. I'm going to wait with it and see what happens.

Act 2, the final act of our summer of profitability and, possibly, shame, ends with my final of the quadra-positions, DXO, also known (even, sadly, to it's closest friends and relatives) as "PowerShares Crude Oil Double Long ETN." Truly, I don't really know what this means. I bought at 3.17, and unlike the DBO before it, it immediately went down, to around 2.60 something, and I was unhappy. Then, it rallied, and currently sits around 3.50 or so. It's a strange beast, and I don't really know what it truly represents. But it did have a 52 week high of 28.61, so if it gets anywhere near those levels I would certainly be quite delirious with an emotional reaction resembling joy. 

The rise in the price of oil lately has been attributed to a feeling (and hope) of economic recovery, so all of this could blow up when the world realizes that hey, we're not really recovered, and another gas gauging comparable to last summer might just be a death knell to any near term stability (or point for recovery). But hell, we're printing money again, and summer's around the corner - everybody get in your car and drive! And if you know any Chinese, specifically "The Interested Chinese Parties" encourage them to buy both Medinah Minerals and Cerro Dorado. Thank you and drive through. 

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