Tag Archive | "quintis"

Stock Market for April Fool’s


Since this is April Fool’s Day it seems a good time to reflect on the importance of value investing and how stock market traders can fool investors.  Here is an excerpt from a value update in our Purposeful investing Course.

A lesson in value.

sandalwood

Share chart of TFS Corporation at www.finance.yahoo.com

In early 2014 we issued a report “A Most Valuable Investment” at this site (1).

The report said:  We are continually updating our research on sandalwood investing. We have added a business that is scheduled to earn $3.57 billion Australian dollars over the next 15 years (its share price is projected to rise 1000% in the next decade) into our Sandalwood Investing Report. You can research this business on your own (the company is called TFS Corp. and it is listed on the Australian Stock Exchange) or to save you endless hours and numerous calls to Australia you can order the report at Amazon.com.

TFS Corp. shares were $1.19 per share at that time and the price skyrocketed to over $2.00 per share but (as the chart above shows) has fluctuated wildly since then.

In February 2017, three Australian analysts (2) in Feb all maintain buy recommendation with expectations of share price over $3.

Then in March, the company rebranded and changed its name to Quintis as it expanded its focus from growing trees to marketing its product to the perfume, pharmaceutical and skincare trade.  The company controls around 80 per cent of the world’s rare Indian sandalwood and because of its rarity there is a lot of fraud in the industry.  Quintis wants a brand that assures consumers that the products are sustainable and ethical.

Natural resource companies have long been the targets of stock manipulation and the TFC (now Quintis) shares are no exception.  They are one of the most shorted shares on the Australian stock exchange… one reason for the volatility .

During the name change one big short selling form took advantage of the confusion and produced a report that was sure to create volatility.

A Barron article “Short Seller Glaucus Takes Aim At TFS, Says Shares Are Worthless – TFS Fires Back, Reiterates Guidance.”(3) tells the story.  In a report issued Wednesday, the U.S. research firm criticized TFS – which this week changed its name to Quintis – for having a “Ponzi-like structure.” The Perth-based company says it’s the world’s biggest manager of commercial sandalwood plantations. Indian sandalwood is used in incense, perfumes and traditional Chinese medicine.

The shares plummeted.

Quintis responded: ” The report is a self-serving report by a shorter of the stock in an attempt to drive TFS’s share price down for their own financial gain.  There are substantial and egregious inaccuracies littered throughout the report which could have been avoided had the report’s author contacted the Company”.

I checked with the analyst who helped me originally assess the value of this company.  He wrote:  “The Glaucus report isn’t worth the paper it’s written on in my view. TFC  (now QIN) have put out a detailed rebuttal which appears valid. Nonetheless, Glaucus did a great job of launching a bear raid, with superb timing.”

Then the founder and CEO of Quntis (TFS) resigned and is working with a third party to launch a takeover.

The shares rose on this news.  Fools were slaughtered by this sideways move.

The key to value investing, is to spot good value and buy for the long term.  Do not get caught up in the short time economic news.  Share prices are manipulated everywhere, especially with volatile shares.

Good investing requires three assets; comfort, value and time.  In my investment with TFS Corp, I have comfort due to my understanding and knowledge of Sandalwood.  When I invested, my analysis was based on financial news that suggested that over ten years the shares could rise to be worth $10 per share.  In the $1.20 range, they were great value.  I made the investment knowing that there is always something I don’t know, but with a ten year time frame, the true underlying value will direct the ultimate share price. I rarely look at the fluctuations.

Risk is always with us and is our friend when we use math to see through the economic noise and invest in mathematically based financial data.  The data has not changed and suggests that the shares are worth over $3 per share now.  When they sell in the US $1 range, that’s good news!

Gary

(1)  Sandalwood, A Most Valuable Investment

(2) Quintis.com.au: Broker research

(3) blogs.barrons.com: Short seller Glaucus takes aim at Quintis

“If I Live Long Enough, I’ll Really Cash In Next Time”

Periods of good investing performance are always followed by periods that are bad.

Think about this…

The US dollar has risen over 50% above its lows of 2011.   The greenback is at its highest level versus the Chinese yuan since 2008.  India’s rupee is at an all-time low against the buck.  Other Asian currencies, the Singapore dollar and Malaysian ringgit have plunged to depths not seen since the financial crisis of 1997-98.  The euro, Mexican peso and Canadian dollar have crashed.  In other words, the US dollar is in a period of high performance.

What happens is the greenback is in a free fall.  Smart investors can cash in huge profits.

Yet there is a bigger economic problem that can ruin the purchasing power of your cash faster than you can imagine.

While the dollar was rising non US governments and businesses accumulated almost ten trillion dollars of debt denominated in US dollars.

The terror in this debt is that it acts as a destructive and very rapid financial amplifier.  Dollar debt is like a short position.  When the dollar rises, borrowers scramble to short-cover their position by selling their own currency.  This defeats the purpose of their hedging as it increases the strength of the dollar.  So they short even more.  Those short sales create an upward dollar spiral.  The buck rises higher and higher, based entirely on fear and speculation.

When that leverage energy is spent the currency stalls and plummets out of control… like now.

The last time we saw such a upwards spiral was from 1980 to 1985.  The dollar rose 50% in those five years.

Guess what?

Then it collapsed 50% in just two years.

The US dollar is in a similar position as at the beginning of Ronald Reagan’s first term in the 1970s.  This was a time of widening budget deficits, rising interest rates and a US dollar surge.  This created a problem then, as it does now, and creates huge opportunity for those in the know.

The rise of the dollar, the debt and the US stock market creates an especially dangerous conflict because Donald Trump wants to balance America’s trade.  A stronger dollar makes this impossible because it pushes up the cost of US material, US labor and US exports.

The overpriced dollar, the poor value of the US stock market (compared to other markets) create a dollar crisis and a special opportunity for you and me as investors.

“If I Live Long Enough, I’ll really cash in next time”.    I made this promise to myself in the 1980s.   A remarkable set of economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  I invested as much as I could handle then as the profits rolled in for about 17 years.  I had wished I could have invested more.

Now those circumstances are here again.

And I have…

invested more… a lot more… betting again the dollar.

The swollen stock market prices, huge dollar denominated debt and weakening dollar are three patterns that can create a fast 50% profit.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.

There is a way to accumulate good value equities denominated in the following currencies of special strength, including the Euro, Canadian dollar, Singapore dollar, British pound, New Taiwan dollar and Chinese yuan.

The report reveals 21 special non dollar equities that have the greatest opportunity for safety and appreciation.

I kept the report short and simple, but include links to 153 pages of global stock market and asset allocation analysis so you can keep this as simple or as complex as you desire.

The report shows 22 good value investments and a really powerful tactic to use that allows you to inexpensively accumulate these bargains now even in very small amounts (even $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

Research shows that most people worry about having enough money if they live long enough.   I never thought of that.   I just wanted to live long enough to see the remarkable economic opportunity that started in 1980 come again so I could hit the jackpot.  This powerful profit wave has begun.  I have made the investment myself  suggest you investigate this in my report “Three Currency Patterns For 50% Profits or More.”

Order the report here $29.95

My Guarantee

Order now and I’ll email the online report “Three Currency Patterns For 50% Profits or More” in a .pdf  file right away. 

I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free purposeful investing.  If you are not totally happy, simply let me know within 60 days and I’ll refund your subscription fee in full, no questions asked.

You can keep the report “Three Currency Patterns for 50% Profits or More”  as my thanks for trying.

You have nothing to lose except the fear.   You gain the ultimate form of financial security as you reduce risk and increase profit potential.

Order the report here $29.95

Or get this report free.  Subscribe to the Purposeful Investing Course (Pi) described below.