The Good Morning Report – 4th of June

1. Roaring Kitty is roaring again…. It was disclosed overnight he is behind the mega $65 million Gamestop $20 call option purchase which expires in June (a super leveraged punt). He now has the right but not the obligation to buy millions of GameStop shares at $20; last sale $28…. Another mega short squeeze could eventuate and if so, Kitty aka Keith Gill, will become a billionaire….Wild!!

2. OIL prices dropped around 3.5% as OPEC agreed to phase out voluntary production cuts. Chevron and Exxon both fell around 3%…I highly doubt this move is going to usher in a new era of cheap energy.

3. PALLADIUM is trading well below mining production costs….ETPMPD is cheap.

4. ZeroHedge reporting that COCOA shortages are way bigger than expected. COCOA futures have recently surged around 30%.

5. Guzman y Gomez is set for an IPO on the ASX….It will be impossible to get stock with existing owners only selling off around 10% or $220 mil worth. Apparently Guzman will be sold on an initial multiple of 16 to 17 times profit which is a significant discount to Dominoes (DMP).

ASX 200 up 59 points to 7761

Our market had a strong session thanks to the positive lead out of Wall Street but we underperformed due to SILVER (ETPMAG) and PALLADIUM (ETPMPD) both falling 4%. On the positive we did see some good buying in the coal stocks. WHC added 2.3% YAL put 1.7% and SMR increased 1.5%.

Our COAL stocks are cheap….And now that AI is becoming reliant on COAL, let’s see if the narrative shift to something like this: studies show that with technological improvements, the latest coal fired power stations are much better than previously thought for the environment.

  • Our SPI is down 18 points
  • Bitcoin up 2.5% to $69,388
  • BHP in US down 0.9%
  • Newmont in US up 0.11%
  • URNM down 2.5%

Movements affecting our resource stocks today (USD)

  • Gold up 0.93% to $2367
  • Paper Silver up 0.92% to $30.72
  • Platinum down 1.9% to $1022
  • Palladium up 1.49% to $926
  • Copper up 1.39% to $4.66
  • Brent Crude down 3.5% to $78.27
  • Iron ore down 4% to $110.32

Japan up 1.13%, Hong Kong added 1.79% and China off 0.27%

BYD is selling way more Plug in Hybrids (PHEV) than EVs….Little wonder China is hoovering up the world’s PLATINUM and PALLADIUM on the cheap.

DOW down 115 points to 38,571

A stack of stocks were initially halted on the NYSE due a technical glitch….I bet some trader’s hearts were in their mouths.

Barrick Gold did close out the session 1.9% higher.

Germans up 0.6%, Brits off 0.15% and Frenchies FLAT

British pharma giant GSK fell 9.2% on news it was set to face a jury trial over it’s heartburn drug Zantac which is claimed to cause cancer….It’s going to be bloody hard to prove as it would appear everything causes cancer these days. The silk for GSK will probably just turn around and ask ‘have any of the alleged victims worn blue jeans or gym gear before – we rest our case your honour.’

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