The Evil Diaries: Orosur, Redt Energy and Glencore

Just as the broken clock is right twice a day one has to admit that the gold price, now $1,173, is bonging along very cheeringly. It is also true that the effect upon junior miners which are definitely in production is electric. In the case of my longstanding obsession, Orosur (OMI), the effect is even more remarkable in that a higher gold price enables mining of an ore body which had hitherto been cut out from production. Anyway, I paid 7.35p on Friday last.

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Redt Energy (RED) is showing delightful resilience this morning and now stands at 8.75p offer. It’s a gamble but probably a good one. After all, a twentyfold rise from here would give the adventurous investor a warm feeling.

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I made a quick £5,000 on being long Glencore (GLEN) last week and, rather to my surprise, find that the price has not retreated this morning. However, there is a huge short position in this stock – perhaps 1bn shares or c. 7% of the issued equity, where it is capitalised at around £14bn. Given that I am assured that this company is making $2.5-3.0bn a year on basic trading and, at the same time, bringing its debts under control, one can begin readily to see that Glencore might well double on, say, a two year view. Now 100p.

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Oppression corner (1): Tom Hayes is now to take his case to the Criminal Cases Review Commission. I hope that this will free him. To recap., he has been found guilty of criminal conspiracy when in fact all possible conspirators have now been found not guilty of that same charge. This is a legal nonsense. In any event, there remains the extraordinary fact that Tom merely carried out his masters’ bidding. How on earth is it possible that they have never been called to account? The fight goes on.

Oppression corner (2): Navinder Sarao, an entirely separate and different case, seems not to have broken any UK law when trading as he did. This should mean that, regardless of any curious twists in American law, he cannot be extradited there. Goodness knows what all this has cost Mr Sarao so far.