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The rotation trade back into growth and big tech, what it tells us about investor mentality

Cory댊
June 22, 2021

Joel Elconin, Co-Host of the Benzinga Pre-Market Prep Show joins us for a broad look at the US markets and the rotation trade that is now back to favoring growth and big tech. Even though these sectors get hit hard by rising rates the current rotation is telling us that investors don’t see those higher rate in the near term. We also look at Bitcoin’s drop below $30,000 and quick rebound this morning.

Click here to listen to the replays of the Benzinga Pre-Market Prep Show.

Discussion
53 Comments
    CFS
    Jun 22, 2021 22:33 AM

    Globex Mining Enterprises Inc. has completed its previously announced sale to Yamana Gold Inc. of the Francoeur/Arntfield/Lac Fortune gold property in Abitibi, Quebec, as well as 30 claims in Beauchastel township and three claims in Malartic township, Quebec. The Francoeur/Arntfield/Lac Fortune property adjoins Yamana’s Wasamac gold mine project.
    At closing, Globex received an initial payment of $4,000,000 from Yamana, satisfied by Yamana issuing 706,714 shares to Globex at a deemed price of $5.66 per share. As previously announced, the Purchase Agreement provides that Yamana will make the following additional cash payments to Globex, which Globex may elect to receive in Yamana shares:
    First anniversary of closing — $3,000,000
    Second anniversary of closing — $2,000,000
    Third anniversary of closing — $3,000,000
    Fourth anniversary of closing — $3,000,000.
    Globex retained a 2-per-cent Gross Metal Royalty on all mineral production from the properties, of which 0.5 per cent may be purchased by Yamana for $1,500,000.

    Jun 22, 2021 22:58 AM

    Maybe sell some AUY puts, ease into the stock.

    Jun 22, 2021 22:15 PM

    Labrador Gold..Taylor Dart has a negative article on this at SA. Maybe there is too much fat in that hamburger and not enough lean.

      Jun 22, 2021 22:53 PM

      Not sure if Taylor Dart or Jay Powell held back Labrador today. Labrador kind of a New Found Trendy thing and the drill results getting better. On a non-Fed day, it might have gone up instead of down. Thanks for finding the TD comment.

    Jun 22, 2021 22:34 PM

    At least Platinum…. up $20….. way under valued….. jmo

      Jun 22, 2021 22:49 PM

      A lot people thought this was platinum’s year. I thin k it is down.

        Jun 22, 2021 22:29 PM

        So far it was Rhodium’s year, but Platinum & Palladium have both been doing great over the last year.

        We have featured 3 different Platinum/Palladium/Rhodium?Copper/Nickel/PMs stories on the KER in the last few weeks:

        Group Ten Metals, Generation Mining, and New Age Metals.

        We are working on getting on a few more as well to keep highlighting the moves in the PGM & Battery Metals sector.

          Jun 22, 2021 22:34 PM

          Group Ten Metals – A Focus On The 10,000 Meter Drill Program At Stillwater West And Recent Rhodium Results

          Michael Rowley, President and CEO of Group Ten Metals Inc (TSXV: PGE – OTCQB: PGEZF) joins us to detail how the gross proceeds are to be used from the $6,000,000 brokered private place, announced June 1st. The near term focus will be on exploration at the Company’s flagship Stillwater West PGE-Ni-Cu-Co + Au project in Montana, USA. The upcoming 10,000 meter step-out drill program will be focused primarily on 3 of the most advanced targets – the Chrome Mountain, Camp, and HGR/Iron Mountain Target areas.

          The Company is also reviewing options at its secondary projects, the high-grade Black Lake-Drayton Gold project, adjacent to Treasury Metals’ development-stage Goliath Gold Complex in northwest Ontario, and the Kluane PGE-Ni-Cu-Co project on trend with Nickel Creek Platinum’s Wellgreen deposit in Canada’s Yukon Territory.

          http://www.kereport.com/2021/06/03/group-ten-metals-a-focus-on-the-10000-meter-drill-program-at-stillwater-west-and-recent-rhodium-results/

          Jun 22, 2021 22:36 PM

          An Exclusive Company Introduction To Generation Mining

          Korelin Economics Report – June 15, 2021

          Kerry Knoll, Executive Chairman and Director of Generation Mining (TSX.V:GENM – OTCQB:GENMF) joins us to introduce the Company’s palladium-platinum-copper-gold Marathon Project in Northwestern Ontario. We start by reviewing the economics highlighted in the Feasibility Study released on March 4th. We also unpack the options available to secure the capex needed, as the Company moves towards a construction decision. Next we discuss the potential paths forward, based on how Sibanye decides to proceed with its option to back into a 51% stake in the project over the next 5 weeks. Lastly Kerry outlines how things are progressing with the 8,000 meters of drilling aimed to expand the resources, and the goals of this exploration program.

          http://www.kereport.com/2021/06/15/an-exclusive-company-introduction-to-generation-mining/

            Jun 22, 2021 22:37 PM

            Rhodium reminds me of bitcoin…..

            Jun 22, 2021 22:44 PM

            Well… except that Rhodium is a real commodity, used in catalytic converters, and has some intrinsic value; and not just based on the herd value placed on the network of computing behind crypto mining, along with the energy consumption required.

            In addition, Rhodium is not getting the kibosh and prohibited in China, like Bitcoin is… 😉

            Jun 22, 2021 22:52 PM

            I should have said……… considering the Price Point…… a little to rich for my liking….
            I would rather have the BULK, in GOLD….. 🙂
            Like catalytic converters…if, Porsche has it’s way…. will be a thing of the past
            OOTB Jerry says:
            Battery Change……. I see an opportunity…. 🙂
            https://www.zerohedge.com/markets/porsche-signs-jv-make-high-performance-battery-cells-germany
            The new Porsche cells will allow charging in less than 15 minute

            Jun 22, 2021 22:06 PM

            Haha! I hear ya OOTB, and I agree the pricing is nuts at these levels and Rhodium has pulled back some from those highs, but for sure – it’s been crazy. That is why some of the smaller juniors with some palladium exposure really shot higher in valuations over the last year. It is normally just a co-credit, and that is if the smelter gives the mining company credit for part or all of it. Some companies give that value up to the smelters, and so a lot of hype has gone into Rhodium for some time, but the main drivers of economics for the miners are Palladium/Platinum/Nickel/Copper/Gold/Silver in most mining scenarios.

            As for the metal, if Rhodium goes too high then at one point it risks substitution, as you pointed out with the new Porsche fuel cells. I’ve been investing in the trend in new batteries along side these commodities so that trend is fine by me. It won’t change overnight, so there is still plenty of need for PGMs, and they are also used in some new fuel cells. There are also the new Silicon based batteries that could displace the Lithium/Nickel/Cobal/Copper batteries and the PGM fuel cells. There are also all the hydrogen “blue gas” fuel cell companies. I’ve been investing in Lithium, Copper, PGMs, Nickel, Lithium Battery companies, Silicon based battery companies, and trying to cover all the bases with future supply from resource companies. I even have Vandium redox energy storage covered via the Uranium mining company Energy Fuels in case Energy Storage with Vanadium Redox Flow Batteries take off.

            Jun 22, 2021 22:09 PM

            Redox……… now that is interesting……

            Jun 22, 2021 22:13 PM

            Crazy times….. trying to keep track of all the technology changes, ….
            Obviously some of the technologies will not happen, …depending on what the
            cabal wants, ….and who’s pockets get lined,… govt will push one over another,
            Whole new game going forward.

            Jun 22, 2021 22:36 PM

            Agreed OOTB. It depends on which lobbyist groups, or which political cronies, or which bureaucrats with agendas get their palms greased, as to which technologies get implemented, but there are some interesting innovations going on in the energy space, in particular around batteries that are worth following.

            Yes the Vanadium Redox Flow batteries are considered an option for larger scale energy storage, capable of offloading energy from renewables like Solar or Wind into a battery bank that can power during downtimes in those intermittent power sources.

            https://en.wikipedia.org/wiki/Vanadium_redox_battery#:~:text=A%20vanadium%20redox%20battery%20consists%20of%20an%20assembly,felt%2C%20carbon%20paper%2C%20carbon%20cloth%2C%20and%20graphite%20felt.

            Jun 22, 2021 22:38 PM
            Jun 22, 2021 22:51 PM

            thanks for the info…. interesting on the different types of application …..

            Jun 22, 2021 22:00 PM

            Glad to share “energizing” thoughts….

            Here’s a company working on the Silicon based batteries that has caught my eye. As discussed, these ideas may not all get embraced as they hope for, but it is still some interesting science and work going into this new battery tech.

            https://hpqsilicon.com/wp-content/uploads/2021/06/HPQ-NEW-DECK-JUNE_21_2021_AGM_VERSION_LR.pdf

            Jun 22, 2021 22:11 PM

            again….. another interesting material ….. for long life… more miles ….

          Jun 22, 2021 22:39 PM

          New Age Metals – An Introduction To This Exploration Company Focused On Platinum Group Metals And Lithium

          Korelin Economics Report – June 17, 2021

          Harry Barr, Chairman and CEO of New Age Metals (TSX.V:NAM – OTCQB:NMTLF) joins us to introduce the Company which is focused on the palladium and lithium exploration and development. We focus on the three Projects, especially on the flagship River Valley Palladium Project, in Ontario.

          The Company is working through a Pre-Feasability study at the River Valley Project as well as a 5,000 meter program that is planned to start in late summer. The other PGM project is the Genesis Project, in Alaska, where the Company is working to bring on a joint-venture partner. For the lithium division the Company holds 7 properties in total in Manitoba, some of which have drilling planned for this year.

          http://www.kereport.com/2021/06/17/new-age-metals-an-introduction-to-this-exploration-company-focused-on-platinum-group-metals-and-lithium/

        Jun 22, 2021 22:35 PM

        Yes David……… this should have been Platinum’s year………
        Still a good long term investment…. compared to palladium….
        When the EV’s get in full swing, I wonder which will come out on top….?

          Jun 22, 2021 22:47 PM

          Overall Platinum has had a great last year from mid 2020 to mid 2021.

          click on the (1W) One Week chart and look at the last year in Platinum. It did pretty good, and the mining stocks had a great run with many going up 300-500% off their pandemic crash March 2020 lows.

          https://www.investing.com/commodities/platinum

            Jun 22, 2021 22:55 PM

            Platinum……….is just playing catch up……for the last 10 yrs……….

            Jun 22, 2021 22:57 PM

            Well that is a good point OOTB, but even if Platinum is playing catch up, it’s still had a nice slope higher for the last year or so and I’d anticipate Platinum to even play more catchup on both Palladium and Gold over time.

            Jun 22, 2021 22:01 PM

            I think you are correct on platinum vs. palladium …..
            Not sure that platinum, will catch up to gold in this next run up…..
            I do like platinum…. as I have mentioned before…. just hate to see it drag behind and be so slow in catching the bid……… JMO

            Jun 22, 2021 22:40 PM

            Yeah, Platinum should gain on Palladium, and while it may not catch gold, it may narrow the spread more. Hopefully it keeps trending higher, and get’s it’s draggin’ hind end moving sooner rather than later…. Haha!

            Jun 22, 2021 22:49 PM

            ditto….. on the hind end… lol.. 🙂

    Jun 22, 2021 22:40 PM

    FEDS …………..humm
    First Time!
    Jeroen Blokland: 8 trillion! The Federal Reserve balance sheet just hit USD 8 trillion for the first time. (Se

    Jun 22, 2021 22:48 PM

    Silvercorp mentioned yesterday and I wonder if they have a good relationship with Chinese gov’t. Management are all Chinese so it is a Chinese company, listed in Vancouver. Anybody know about SVM?

      Jun 22, 2021 22:55 PM

      Hi Terry – I’ve been following and invested in (SVM) Silvercorp since late 2015, and they are a Canadian company that is lowest cost Silver producer on the planet; currently operating in China at a few Silver/Zinc/Lead/Gold mines, and also have strategic positions in 3-4 smaller companies including a 28% stake in the Bolivian silver explorers NUAG New Pacific Metals, and a 19% stake in Guatemalan gold explorer (VG) Volcanic Gold.

      They have a fine relationship with the Chinese government and just won a mine at a Chinese auction. They’ve received their permits, have operated there for a decade, and continue to pile up cash at these current or even lower metals prices.

        Jun 22, 2021 22:09 PM

        (SVM) Silvercorp Corporate Presentation – June 2021:

        http://silvercorpmetals.com/_resources/presentations/corporate-presentation.pdf

          Jun 22, 2021 22:12 PM

          Here is the news about the auction Silvercorp won in China that I had referenced:

          (SVM) Silvercorp Won Auction to Acquire the Zhonghe Silver Project in Luoning County, Henan Province, China

          British Columbia – January 21, 2021

          “The Company will utilize Henan Found’s existing management team at the Ying Mining District to manage the future development of Zhonghe. As the largest taxpayer in Luoning County, Henan Found has established a good working relationship with the Luoning government, has an excellent reputation within the local community, and intends to bring in the local government and community as 8% – 10% partners on the project. The Company expects full support from the local government and community in the future, converting the exploration right to a mining license and developing operations at the Zhonghe Project.”

          http://silvercorpmetals.com/news_and_media/news/silvercorp-won-auction-to-acquire-the-zhonghe-silver-project-in-luoning-county-henan-province-china

          Jun 22, 2021 22:16 PM

          Here’s another data point showing the good relationship Silvercorp has with the local & regional Chinese government, with regards to their long permitting renewal.

          ______________________________________________________________

          (SVM) Silvercorp Receives Mining License Renewal and Extension

          Vancouver, British Columbia – February 9, 2021

          Silvercorp Metals Inc. (TSX/NYSE American: SVM) announces that the Tieluping-Longmen Mining License for the TLP, LME and LMW mines in the Ying Mining District has been renewed and extended for a period of 20 years (expiration February 26, 2041) by the Department of Natural Resources, Henan Province, China.

          http://silvercorpmetals.com/news_and_media/news/silvercorp-receives-mining-license-renewal-and-extension

          Jun 22, 2021 22:18 PM

          Silvercorp Reports Receipt of Three Exploration Permits and Negotiation of Mining Contracts Renewal at the Ying Mining District

          Vancouver, British Columbia – April 28, 2021

          “Silvercorp Metals Inc. (TSX/NYSE American: SVM) announces that the Company has been granted three exploration permits of 48.8 square kilometres in area, covering depth extensions of three mining permits, SGX, HPG, and TLP-LME-LMW, at the Ying Mining District. Previously, the exploration activities underneath the mining permits were covered by a joint venture agreement between the Company and the Department of Natural Resources of Henan Province.”

          http://silvercorpmetals.com/news_and_media/news/silvercorp-reports-receipt-of-three-exploration-permits-and-negotiation-of-mining-contracts-renewal-at-the-ying-mining-district-

        Jun 22, 2021 22:20 PM

        (SVM) Silvercorp Reports Net Income of $46.4 Million, $0.27 Per Share, and Cash Flow from Operations of $85.9 Million for Fiscal 2021

        May 20, 2021

        http://silvercorpmetals.com/news_and_media/news/silvercorp-reports-net-income-of-464-million-027-per-share-and-cash-flow-from-operations-of-859-million-for-fiscal-2021-

          Jun 22, 2021 22:23 PM

          If a Canadian or US explorer had put out a drill result like Silvercorp’s recent one, then people would have blown their minds. Yes it is narrow, but the high grades are quite stunning, and again, this is a long time producer that can actually monetize these discoveries into their future mine plan.

          _________________________________________________________________________

          (SVM) Silvercorp Intersects Vein LM5 with 0.91 Metres True Width Grading 6,455 Grams Per Tonne Silver and 10 Grams Per Tonne Gold at the LME Mine, Ying Mining District, China

          June 22, 2021

          http://silvercorpmetals.com/news_and_media/news/2021/silvercorp-intersects-vein-lm5-with-091-metres-true-width-grading-6455-grams-per-tonne-silver-and-10-grams-per-tonne-gold-at-the-lme-mine-ying-mining-district-china

            Jun 22, 2021 22:55 PM

            Thank you Ex for all that, SVM looks like a good one. What have I been waiting for?

            Jun 22, 2021 22:26 PM

            Well, I’ve done well with Silvercorp coming out of the bear market of 2015 to present, and have traded around a core position, buying on dips and selling on rips for years. It’s got the best economic margins, was doing fine even at much lower Silver/Zinc/Lead prices, and it is printing cash. It is clear it want’s to expand out of Asia with it’s strategic stacks in South America and recently in Mexico, but it is has also picked up that other mine in China recently, so Silvercorp is in growth mode, with a lot financial strength to do any more accretive acquisitions. Some shy away because of the jurisdiction risk, and that likely does keep it more muted, but longer term SVM has continued to make progress year after year, which is refreshing for a mining company.

    BDC
    Jun 22, 2021 22:56 PM
    Jun 22, 2021 22:15 PM

    The time bell rings! The O’Biden administration has already played its hand. The price of PM’s even today smells a diplomatic RAT. That’s crap! The rest is people talking…

    Jun 23, 2021 23:31 AM

    The Most Important Chart in Gold Right Now

    by Sean Brodrick | June 17, 2021

    “Shiny gold and silver babies got thrown out with the bathwater as a majority of Fed governors said they might/kinda/sorta start thinking about hiking benchmark interest rates by the end of 2023 rather than waiting until 2024, as had been the plan.”

    “That’s short-term noise. What you should be watching is this chart — a chart of the price of gold versus real interest rates.”

    https://wealth-wave.com/wealth-wave/important-chart-gold-right-now-2/?mkt_tok=ODM0LU5VTi0zNzcAAAF9uWg9bd15a7xxrCeVKZuWKvjHIvEJXqCosKBmEswgmJxlEAv067gNprrAZRVRVf0FyhDMUudbOdcTrrY8HjtVHNSk7Dhp5pIv1l4FLfQ6mZFC3A

      Jun 23, 2021 23:15 AM

      What Sean is missing is that the gold price is the single best measure of inflation so manipulating it down paints a picture of rising real rates. Smart money knows this while dumb money hangs its hat solely on government numbers.
      Here’s the 10 year yield vs GLD. It gives the impression that yields are not done rising in real terms but I bet that bull flag-looking pattern will soon fail. Note that, based on this chart, real rates can spike further without budging nominally if gold drops.
      https://stockcharts.com/h-sc/ui?s=%24UST10Y%3AGLD&p=W&yr=5&mn=0&dy=0&id=p39183889466

        Jun 23, 2021 23:18 AM

        I should have pointed out that I basically agree with Sean, especially beyond the short term. Way too many small investors live and die based on the short term which is why market interventions are deemed worth the effort.

    cfs
    Jun 23, 2021 23:47 AM

    FTC commissioner admits silver price is “controlled”

    https://www.youtube.com/watch?v=7WoYOdzyTHo

      BDC
      Jun 23, 2021 23:27 AM

      Bill Murphy (2000): “I don’t care, I’m buying more!”

    Jun 23, 2021 23:40 AM

    Ex……Silicon based batteries ….. check this one out….. NEO Battery Materials Ltd
    Bobby M. gave a review on this one….. in his LIKE PILE…. 🙂

    BDC
    Jun 23, 2021 23:57 AM

    Equinox: How much pain? https://postimg.cc/ZBQk9xsq

      BDC
      Jun 23, 2021 23:59 AM

      Mr. T’s pick of the day!

        BDC
        Jun 23, 2021 23:01 AM

        Rocky: 7.25 buy

          BDC
          Jun 23, 2021 23:28 AM

          1% trailer TKO 7.24

    Jun 23, 2021 23:04 AM

    Good moves today from Tartisan Nickle and Big Ridge Gold in my account. And so far so good with Emerita.

      Jun 23, 2021 23:58 AM

      Just curious: Does anyone own Emerita other than me?