Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,253 and $1,260 so far today…as of 7:00 am Pacific, bullion is off $2 an ounce at $1,255, virtually unchanged from where it was at this time yesterday despite this morning’s U.S. jobs report…Silver is off 6 cents at $15.97…Copper is down 3 pennies at $2.85, Nickel has retreated another 11 cents to $6.30 while Zinc is up a penny at $1.26…Cobalt is up 23 cents at $32.89…Crude Oil is 32 cents lower at $72.62…Haywood Securities believes the Syncrude facility in Fort McMurray will not fully restart until the end of August, which would have a “ripple effect” for Oil prices…“Based on our ‘boots on the ground’ contacts, we believe the timeline to ramp back to full capacity is now likely September, which would add continued support (and potentially upside) to current Oil prices,” stated analyst Darrell Bishop in a research note yesterday that hasn’t been widely circulated yet…the U.S. Dollar Index is off slightly at 94.31…
2. U.S. tariffs on $34 billion worth of Chinese goods (mostly aerospace products, information technology, auto parts and medical instruments) took effect this morning, while China’s commerce ministry said it had been forced to retaliate, meaning $34 billion worth of imported U.S. goods also face 25% tariffs…the imposition of the tariffs was absorbed calmly by markets, with stocks edging higher…the reality is that China has been in a trade war with the United States for 2 decades and now someone is finally standing up…
3. This morning’s U.S. jobs report wasn’t too hot or too cold, allowing stocks to push higher after Dow futures had earlier pointed to a triple digit loss…June non-farm payrolls came in at 213,000, beating the consensus estimate of 195,000…in addition, the April and May non-farm jobs numbers were also revised upwards by a net 37,000…however, the overall unemployment rate rose to 4.0% in June from 3.8% in May, mainly due to more would-be workers entering the job market…the closely watched average hourly earnings figure for June rose by a modest 5 cents to $26.98…on an annual basis, wages are up 2.7%…a number closer to 3% may have alarmed investors…this morning’s report strongly suggests the Fed will remain on its present course with 2 more rate hikes expected this year…minutes from the Fed’s most recent meeting were released yesterday and showed some officials were concerned that a “a prolonged period in which the economy operated beyond potential could give rise to heightened inflationary pressures”…Oil will be the key factor as far as inflation is concerned, and that’s why President Trump continues to put pressure on OPEC…
4. Canada’s economy gained 31,000 jobs last month but a closer look at the numbers reveals a disturbing picture as the country’s bloated public sector grew while the private sector actually shed 2,000 jobs…yes, when you look under the shiny hood of the mainstream media’s headline number, it’s not a pretty sight…that’s the kind of under-performance that politicians across the country seem to be content with…the Bank of Canada is nonetheless expected to increase interest rates for the 4th time in a year next Wednesday…
5. The Dow is up 22 points through the first 30 minutes of trading…in Toronto, the TSX has climbed 19 points…despite its strong performance since the spring, added by Oil stocks, the TSX is only up 0.6% so far this year which compares with the S&P 500 gain of 1.5% and the NASDAQ’s 8.7% return so far this year…the TSX is ahead of the Dow’s -2.2% for the year, but a U.S. investor in the TSX has lost 3.8% due to the weakness in the Canadian dollar…the Venture showed some life yesterday with several stocks in the Golden Triangle enjoying a nice lift, led by Garibaldi Resources (GGI, TSX-V)…weather conditions in the Eskay Camp have been ideal this week, and multiple drill programs are in progress…as of 7:00 am Pacific the Venture is flat at 742…
6. Gold demand continues to intensify within the technology sector, according to a study released by the World Gold Council, with the WGC noting that Gold is playing abigger role to play in the electrification of vehicles than most investors believe…Gold’s technology demand accounted for more than 380 tonnes of the yellow metal used annually over the past decade, which is nearly 13% more than central bank net purchases…“Gold’s role in this vibrant and growing industry is broadly unrecognized and often misunderstood,” WGC CEO Aram Shishmanian wrote yesterday…main uses of Gold in the tech sector include phones, cars, TVs and hospital monitors…the yellow metal does not corrode and is known for its conductive qualities, especially when it comes to coatings for connectors and Gold bonding wire…“Gold is a soft, pliable material, which can be easily drawn out into narrow wires or plated into thin coatings. These physical properties make Gold the ideal material for a wide range of electronic applications,” stated Metals Focus consultant Elvis Chou…
7. Should we be proud? – Canada is about to get its first cannabis museum…MYM Nutraceuticals (MYM, CSE) announced this morning that it has entered into a partnership with the Sherbrooke Historical Society to create the concept for the CannaCentre museum which is expected to be built at the company’s planned 1.5 million sq. foot cannabis production facility in Weedon, Quebec…under the agreement, the Sherbrooke Historical Society will present a concept for the museum along with a work schedule and associated costs. “We are thrilled to partner with the Sherbrooke Historical Society in developing the concept of the CannaCentre at what is anticipated to be our flagship cannabis production facility in Weedon,” stated Rob Gietl, CEO of MYM. “The Sherbrooke Historical Society has long recognized the importance of historical conservation in Sherbrooke and the Eastern Townships. Having a hand in building Canada’s first cannabis museum will ensure this monumental occasion will be highlighted in the records of the Eastern Townships rich history”…
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Myself and Someone got a great deal on a bunch of DVR shares today. Any word from them of late Jon?
Comment by Charles — July 6, 2018 @ 5:00 pm
DVR has had enormous potential from Day 1, Charles, but management has shown an inability to effectively move this story in the market. Whether they ultimately make things happen or not remains to be seen. This stock easily could have soared north of $1 per share with the right market approach and strategy – Dave MacMillan dropped the ball. He has a tremendous understanding of the drone industry and carved out a great niche for DVR, but he lacks savvy and expertise on the market side.
Comment by Jon - BMR — July 7, 2018 @ 7:54 am
Hey Jon.. maybe you should show him how:)!! agreed that the story is very muted…. maybe the next financials will wake up the interest…
Comment by Jeremy — July 7, 2018 @ 2:11 pm
Hi Jon,
I find your response very surprising. I respect your opinion a great deal, or I wouldn’t bother asking in the first place… Can you elaborate on your comment?
I’m surprised at how dismissive you are being regarding DVR and MacMillan. It was only last spring that you indicated to one of my comments that DVR would easily be over 50 cents by the late summer… aside from the current share price not lining up with what you forecasted, what exactly do you see that MacMillan has not done? (a couple years ago your comments regarding Steve Regoci’s ‘savvy’ as far as investor relations was somewhat disparaging in terms of his ability to promote – he has since proven that the market eventually will notice results – surely DVR still has that potential in it’s future, no?)
DVR’s share count, fully diluted is still under 30 million, their operations are expanding and as you noted, MacMillion has a tremendous understanding of the drone industry and has carved out a niche for DVR.
I understand that currently DVR is not super exciting from the market’s standpoint, and perhaps not interesting to write about, but do you really feel that the “enormous potential” has been negated now, and if so, why?
Again, I respect your opinion and insight greatly, and I am being absolutely sincere with my questions.
Thanks for your response!
Comment by Charles — July 7, 2018 @ 7:20 pm
Charles, first off, one thing I always stated about Regoci is that he really understands the markets (he’s an ex-broker), and that he’s a humble CEO who has surrounded himself with a lot of very smart and talented people…that’s why he’s enjoyed such great success with GGI, and of course he’s also shown a knack for acquiring really great properties (at a huge discount to real value) that have been overlooked by others…
I was fascinated by the potential in Deveron when the company entered the drone sector with a niche opportunity in 2016…I’ve had many conversations with Dave MacMillan, and he’s a very bright young man who could certainly be the most knowledgeable individual on Bay Street regarding this sector…however, with a publicly traded company, you not only have to be very knowledgeable about the business you’re engaged in, but you also of course have to have a great “feel” for the market and you need to know how to build a market for your stock…that’s where so many companies fail and that’s where Deverson has failed so far…I explained that to Dave in one of my last conversations with him, but rather than humbly accept some good advice, he got quite argumentative…no comparison between him and Regoci on that score…Dave does what Dave wants to do, and I wish him luck, but that’s why the stock has been such a disappointment over the last 2 years…building a business cannot be viewed in isolation from the market when you’re a publicly traded company…the two go hand-in-hand, and success in the latter helps the former…
Comment by Jon - BMR — July 8, 2018 @ 9:53 am
I am a shareholder of CCW. WHM however, looks like
It is about to go on a breathtaking run. If this very special
shale gold play has depth than this Will be a 100-bagger
Comment by Tran — July 8, 2018 @ 11:42 am
Jon, thanks for your candid response! I hope that MacMillan is able to develope his market smarts and bring the share price around. I still believe there is way too much potential here to not have a position and I will likely keep buying at current prices. Although I am glad to have your insight and it gives me a better understanding of what to watch for here. Perhaps I’ll give MacMillan another call myself.
Cheers
Comment by Charles — July 8, 2018 @ 9:04 pm