Gold Miners’ Q3’18 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The major gold miners’ stocks remain mired in universal bearishness, largely left for dead.  They are just wrapping up their third-quarter earnings season, which proved challenging.  Lower gold prices cut deeply into cash flows and profits, and production-growth struggles persisted.  But these elite companies did hold the line on costs, portending soaring earnings as gold recovers.  Their absurdly-cheap stock prices aren’t justified.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Companies trading in the States are required to file 10-Qs with the US Securities and Exchange Commission by 40 calendar days after quarter-ends.  Canadian companies have similar requirements at 45 days.  In other countries with half-year reporting, many companies still partially report quarterly.

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Buffett Spends $928 Million to Buy His Own Shares Back

[This may be one of the very few stock buybacks to make sense for stockholders – because company profits are growing quickly and other opportunities are hard to find. -Bob]

By Associated Press – Re-Blogged From Newsmax

Warren Buffett’s company more than quadrupled its third-quarter profits because of a huge paper gain in the value of its investments, although its insurance and railroad businesses also improved.

Notably, Buffett’s company bought back nearly $1 billion in stock during the quarter — the first time that’s happened in years — a possible sign that the world’s most famous investor has been unable to find attractive investments to purchase.

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GE Slashes Dividend to 1 Penny, Reveals Deeper SEC Probe

By Thomson Reuters – Re-Blogged From Newsmax

General Electric Co. slashed its quarterly dividend to a penny a share, promised to restructure its power unit and said it faced a deeper accounting probe as new Chief Executive Larry Culp took his first steps to revive the struggling conglomerate.

GE said the U.S. Securities and Exchange Commission and Department of Justice had expanded ongoing investigations to include a $22-billion writedown of goodwill from GE’s power division, which GE reported on Tuesday.

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Drowning in Cash, Big Oil’s Biggest Challenge Is How to Spend It

By Bloomberg – Re-Blogged From Newsmax

Big Oil’s big payday has finally arrived. The question now is how to spend the extra cash.

Investors will be reading the third-quarter tea leaves to discern whether executives plan to boost dividends and buybacks, hike spending on shiny new mega projects, or perhaps even do both.

What they do know is that fresh sources of oil and gas are needed over coming decades to meet the world’s insatiable demand for energy. Spending too much would defy the new-found commitment to financial discipline, while spending too little could choke new supplies and raise crude prices. Higher prices, in turn, may brighten the appeal of green technologies that would hasten the industry’s demise.

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Moody’s Mulls GE Downgrade

By Bloomberg – Re-Blogged From Newsmax

General Electric Co.’s credit rating is at risk of a significant downgrade as the beleaguered manufacturer grapples with a deepening slump in its power-equipment business.

Moody’s Investors Service placed GE and its finance arm on review for downgrades that “may not be limited to one notch,” according to a statement Tuesday by the ratings company. Fitch on Monday put GE, which still has a significant financial business including a major aircraft lessor, on watch negative.

What Impact Are The Federal Reserve’s Actions Having On Peripheral Markets?

By Trey Reik – Re-Blogged From Gold Eagle

Maurice Jackson: Welcome to Proven and Probable. I’m your host Maurice Jackson. Joining us for a conversation is Trey Reik, senior portfolio manager with Sprott USA.

We’re delighted to have you here today to discuss the Federal Reserve’s impact on peripheral markets. Mr. Reik, the Fed is in the process of implementing a dual policy of rate hikes and balance sheet reduction, which appear to have a duplicitous effect on peripheral markets. What are your thoughts on this dual policy and what can we expect from Chairman Jerome Powell during his tenure?

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Rising Wages = Shrinking Corporate Profit Margins … And Falling Stock Prices?

By John Rubino – Re-Blogged From Dollar Collapse

Today’s Wall Street Journal contains a couple of charts that illustrate a relationship that’s not getting much media attention these days: The fact that tightening labor markets are forcing companies to raise wages, in the process squeezing their own profit margins.

Historically this margin compression has been either a cause of or contributor to cyclical turning points — in other words it coincides with recessions and equity bear markets.

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