India amends gold tax laws
The Finance Ministry in India has proposed wide-ranging amendments to tax laws for gold ETFs and gold funds that fall under the non-equity mutual funds.
As per the new law, gold ETFs and gold funds will be charged long-term capital gains tax of 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in place of the current 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. In addition to doubling the long-term capital gains tax, the new tax…
The Finance Ministry in India has proposed wide-ranging amendments to tax laws for gold ETFs and gold funds that fall under the non-equity mutual funds.
As per the new law, gold ETFs and gold funds will be charged long-term capital gains tax of 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in place of the current 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. In addition to doubling the long-term capital gains tax, the new tax regime also has increased the minimum holding period to qualify for long-term capital gains tax has been raised from 12 months to 36 months.
The new tax law takes due care of fluctuations in inflation by allowing indexation benefits. By doing so, the capital gains could be reduced, which in turn may result in net tax impact of less than 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. However, the investor should hold the gold funds or gold ETFs for at least 36 months in order to qualify for the 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} capital gains tax. If held for less than 36 months, they would be taxed according to investor’s tax slab.
Gold ETFs and funds don’t attract wealth tax unlike gold in the form of bars, coins and jewellery. However, a holder of physical gold is liable to pay wealth tax at 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the total assets exceeding Rs 30 lakhs, held as on 31st March.
The industry participants fear that the newly introduced tax laws may take away the advantage of gold funds and ETFs over physical gold.
According to Finance Ministry, the new tax laws will be applicable for units of gold funds and gold ETFs sold after July 10.
Article source: http://feedproxy.google.com/~r/resourceinvestornews/~3/KkIU1JbHMwE/india-amends-gold-tax-laws
Read more http://financialpress.com/2014/07/31/india-amends-gold-tax-laws/
- Published in Mining
CFTC charges Florida metals dealer with illegal scheme
CFTC Charges Florida-Based Southern Trust Metals, Inc. and Robert Escobio, and His BVI-Based Entity Loreley Overseas Corp., with Operating an Illegal Precious Metals Scheme, among other Violations
Defendants Solicited over $3.5 Million from Customers in the Precious Metals Scheme and in a Separate Unlawful Commodity Futures and Options Scheme
Washing…
CFTC Charges Florida-Based Southern Trust Metals, Inc. and Robert Escobio, and His BVI-Based Entity Loreley Overseas Corp., with Operating an Illegal Precious Metals Scheme, among other Violations
Defendants Solicited over $3.5 Million from Customers in the Precious Metals Scheme and in a Separate Unlawful Commodity Futures and Options Scheme
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement Complaint in the U.S. District Court for the Southern District of Florida against Defendants Southern Trust Metals, Inc. (ST Metals) andRobert Escobio, both of Coral Gables, Florida, and Loreley Overseas Corp. (Loreley), a British Virgin Island entity that Escobio incorporated in 2004. The CFTC Complaint charges that, from at least July 16, 2011 to May 1, 2013, the Defendants operated a scheme that defrauded retail customers in connection with illegal, off-exchange, financed precious metals transactions. In operating the precious metals scheme, the Defendants received more than $2.6 million from at least 135 customers, who collectively lost $600,000 of the funds invested with ST Metals, according to the Complaint.
In a separate unlawful scheme, the Defendants, between February 2011 and May 2013, solicited and accepted more than $900,000 from customers for the purchase or sale of commodity futures and options, without registering with the CFTC as a Futures Commission Merchant, according to the Complaint.
ST Metals solicited retail customers to engage in off-exchange leveraged, margined, or financed precious metals transactions. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), these transactions are illegal unless they result in actual delivery of metal within 28 days. The Complaint alleges that metals were never actually delivered in connection with these precious metals transactions. Instead, the Complaint alleges, ST Metals engaged in a series of transactions that ended with over-the-counter derivative trades in margin trading accounts in the name of Loreley with two U.K.-based trading firms. Additionally, according to the Complaint, ST Metals told customers that it was making loans to purchase precious metals in connection with these transactions, but in fact, no loans were made, no metals were purchased, and the transactions were illegal commodity transactions under the Dodd-Frank Act.
In its continuing litigation against ST Metals, Loreley, and Escobio, the CFTC seeks disgorgement of ill-gotten gains, restitution for the benefit of customers, civil monetary penalties, permanent registration and trading bans, and a permanent injunction from future violations of the Commodity Exchange Act, as charged.
The CFTC thanks the U.K. Financial Conduct Authority for its assistance in this matter.
CFTC Division of Enforcement staff members responsible for this action are Carlin Metzger, Heather Johnson, Joseph Konizeski, Scott Williamson, and Rosemary Hollinger.
Article source: http://feedproxy.google.com/~r/resourceinvestornews/~3/NARxabfrk84/cftc-charges-florida-metals-dealer-with-illegal-sc
Read more http://financialpress.com/2014/08/03/cftc-charges-florida-metals-dealer-with-illegal-scheme/
- Published in Mining
Cannabis Oil Cures Infant of Cancer, Dissolves Inoperable Tumor
Guest Writer for Wake Up World
According to Dr. William Courtney, the western medical mind has a very hard if not impossible time trying to understand the diverse actions of Cannabidiol.
A Doctor of Medicine with extensive education and experience in microbiology, psychiatry and forensic medicine, Dr. William Courtney explains how his 8 months old patient had a massive centrally-located, inoperable brain tumor. The child’s father pushed for “non-traditional” treatment utilizing cannabis and put cannabinoid oil on the baby’s pacifier twice per day, gradually increasing the dose. Within two months there was a dramatic reduction in the size of the baby’s tumor.
Dr. Courtney pointed out that the success of the cannabis approach means that “this child… is not going to have the long-term side effects that would come from a very high dose of chemotherapy or radiation”.
Cannabis Cures Inoperable Tumor
While 10,000 year old cultural practices involve drying then heating cannabis to effect a nearly complete decarboxylation of THC-Acid into THC, the creation of massive amounts of THC is compounded by the introduction of a psychoactive side effect that has a 10 mg dose limitation secondary to CB1 receptor stimulation.
Research conducted in Bethesda Maryland led to Patent 6,630,507 held by the United States of America since 2003 that teaches that the lack of psycho-activity in CBD allows doses that are 100-200 times greater than the tolerable dose of THC. The articulated “effective oral human dosage schedule is 20 mg / kg body weight” requires a considerable amount of cannabis. The simplest approach is to consume the trichrome-laden fully-mature flower along with the 80-day leaf. Patient responses have exceeded any expectations.
Historically, dietary use of the entire raw cannabis plant brings us back in line with 34 million years of cannabis evolution. Lipid messenger molecules preceded cannabis by billions of years. The 4 billion year old development of lipid messenger molecules not only regulated resource management in the most primitive life forms, but were central in the earliest autocrine and paracrine modulation of cellular function. I believe autocrine cross talk was the necessary precedent to symbiotic, then multi-cellular life forms. Tissue specific or paracrine cluster regulation is the domain of the lipid messenger molecules and is the path to comprehending the incredible diversity of function that are only now beginning to be understood. While our perception / publication of these physiologic properties are new, the phenomenal beneficial affects were there yesterday, last year, if not hundreds of millions to billions of years ago.
Researchers have now found that the compound, called cannabidiol, has the ability to ‘switch off’ the gene responsible for metastasis in an aggressive form of cancer. Importantly, this substance does not produce the psychoactive properties of the cannabis plant.
Cannabinoids can prevent cancer, reduce heart attacks by 66{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and insulin dependent diabetes by 58{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. Dr. Courtney recommends drinking 4 – 8 ounces of raw flower and leaf juice from any Hemp plant, 5 mg of Cannabidiol (CBD) per kg of body weight, a salad of Hemp seed sprouts and 50 mg of THC taken in 5 daily doses.
Learn more: 5 Diseases Proven To Respond Better To Cannabis Than Prescription Drugs
“If you heat the plant, you will decarboxylate THC-acid and you will get high, you”ll get your 10 mg. If you don’t heat it, you can go up to five or six hundred milligrams & use it as a Dietary Cannabis… and push it up to the Anti-oxidant and Neuro-protective levels which come into play at hundreds of milligrams”, stated Dr. William Courtney.
“The Hemp plant is actually an excellent plant because the THC content can be low, that’s if you’re treating a condition for which appears CBD food supplement is in order… The plants we’re using in Luxembourg have only 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} CBD, a 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} CBD plant is providing you with 19 times more CBD per pound than Oranges provide you of vitamin C. A 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} is an excellent source, you can make tremendous concentrates you can eat the plant raw – and the absence of the THC – you can heat Hemp, which you can’t do with other strains because the THC acid comes out and you end up with a psycho-toxic substance”, says Dr. Courtney.
27th July 2014
By Marco Torres
- Published in Medical Marijuana
Ignore the bears and you could bank a 22 stock market gain
The bad news bears are back in town, and that could be good news for U.S. stock market bulls.
With so many market experts predicting that the S&P 500 SPX -0.29{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} is set for a 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} slide, and the small-stock Russell 2000 will fare even worse, it’s easy to ignore one closely watched investor sentiment measure that keeps flashing a bright “buy” signal.
Bank of America Merrill Lynch’s proprietary “Sell Side Indicator” — the average recommended equity allocation of Wall Street strategists — puts Wall Street’s bullishness at a 13-month low. In fact, pessimism is even more extreme than at the market lows of March 2009. In true contrarian fashion, this is positive for U.S. stocks , BofA Merrill says — to the tune of a 22{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} total return over the next 12 months.
“Given the contrarian nature of this indicator, we remain encouraged by Wall Street’s ongoing lack of optimism and the fact that strategists are still recommending that investors significantly underweight equities, at 51{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} vs. a traditional long-term average benchmark weighting of 60-65{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce},” Savita Subramanian, the firm’s head of U.S. equity and quantitative strategy, wrote in a research report published Friday. The Sell Side Indicator would give a “sell” signal when strategists raise their recommended stock weighting to 66{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}.
After the grilling stock investors got in July, it’s difficult to fathom the S&P 500 at 2313 at the end of July 2015, but that’s what the Sell Side model currently predicts — though this is not the firm’s official S&P 500 target. Moreover, when the Sell Side Indicator has been this low, total U.S. market returns over the next 12 months have been positive 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the time.
Adds Subramanian: “Even though the S&P 500 has risen by over 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} since sentiment bottomed in 2012, history suggests that strong equity returns can last for years after the indicator troughs.”
- Published in Business
10 best cities for millennials to buy a home
Slow job growth and student debt have made it harder for first-time home buyers
- Published in Blog
Increased Markdowns Hits Margins at Michael Kors
Luxury Lifestyle Brand Posts Strong Results, Lifts Guidance for Year
Industry insiders have said the brand risks overexposure, and fears of discounting hit Kors stock this summer. Bloomberg News
Shoppers continued to snap-up handbags and accessories from Michael Kors Holdings Ltd., but the fashion retailer said increased markdowns were a drag on its retail margins in its fiscal first quarter.
Shares declined nearly 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} premarket, reversing course from a double-digit percentage gain earlier in the morning.
The fashion retailer, which has reported robust bottom-line growth recently as demand in its retail and wholesale merchandise grows, has had to fend off concerns that the brand has gone too far with its version of luxury populism.
Industry insiders have said the brand risks overexposure, and fears of discounting hit Kors stock this summer after Barclays BARC.LN +1.09{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and Citigroup C -1.66{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} published research reports estimating Kors roughly doubled in June the square footage in its stores devoted to discounted goods from a year earlier.
Kors lifted its guidance for the year and now expects per-share earnings of $4 to $4.05 on revenue of $4.25 billion to $4.35 billion. The company had previously guided for earnings of $3.85 to $3.91 a share and revenue of $4 billion to $4.1 billion
As for the current quarter, the handbag maker and retailer said it expects per-share earnings of 85 cents to 87 cents on revenue of $950 million to $960 million. Analysts polled by Thomson Reuters had expected per-share earnings of 89 cents and $959.5 million in revenue. Kors is also assuming same-store sales growth in the high teens.
Overall, Kors reported earnings for the quarter ended June 28 of $187.7 million, or 91 cents a share, up from $125 million, or 61 cents a share, in the prior year.
Net sales jumped 44{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to $887 million, while total revenue—which includes licensing revenue—climbed 43{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to $919.2 million.
The company in May had forecast earnings of 78 cents a share to 80 cents, on revenue of $840 million to $850 million.
Retail net sales jumped 47{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to $480.2 million, pushed higher by a 24{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} increase in same-store sales and 115 net new store openings since the same period a year ago. Kors had previously forecast a 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} increase in same-store sales.
Retail operating margin, meanwhile, narrowed to 29.7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} from 31.7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, though the drop was significantly smaller than the nearly seven-point decline Kors posted in its fourth quarter.
Wholesale net sales climbed 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to $406.8 million.
North American revenue rose 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to $718.9 million, as same-store sales grew nearly 19{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. Revenue in Europe more than doubled to $185.5 million as same-store sales about 54{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}.
- Published in Blog
Warning: That plunge in stocks is just the beginning
Investors brace for the return of volatility
NEW YORK (MarketWatch) — If the ups and downs of the past week have taught investors anything, it’s that there are cracks in this 5 1/2-year-old bull market.
The lesson for investors? Tread carefully.
Stocks took a tumble as a raft of economic data sparked fears the Federal Reserve could speed up its timetable for raising interest rates. The S&P 500 index SPX -0.29{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} took its biggest weekly hit in more than two years, losing 2.7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The Dow Jones Industrial Average DJIA -0.42{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , meanwhile, sliced through its 50-day moving average and erased the gains that had tenuously built up this year.
“It reminded people that the stock market can actually go down. It seems like a lot of people had forgotten,” said Mike O’Rourke, chief market strategist at JonesTrading.
This past week saw a number of economic indicators: a robust 4{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} expansion in second-quarter GDP suggested a resurgence in economic activity, while a jump in a highly-watched wage index was a sign that employee earnings, the holy grail of labor market growth, was finally picking up. Even Friday’s soft jobs report didn’t undo the worries about the Fed.
Bracing your portfolio
Indeed, investors should expect more volatility, not less, as the Fed moves closer to rate hikes, analysts say. The central bank is generally expected to begin raise its key lending rate in the middle of next year.
“Every time we see data really heat up, it will really spook investors and keep a cap on the equity market for the time being.” said O’Rourke.
That’s not to say all market participants are calling for a steep drop. “We see the mid-cycle rally as having plenty of room to run before we get a 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}-plus correction,” said Binky Chadha, a particularly bullish strategist at Deutsche Bank, in a Friday report .
Read more on the debate: Jonathan Burton says ignore the bears and bank a 22{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} stock market gain while Mark Hulbert sees 3 market warning signs that predict 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} stock tumble.
Still, the trepidation in the market may leave it open to the kind of knee-jerk reaction seen on Thursday, when the Dow skidded 317 points for its biggest one-day loss since February.
“A very small impetus can have an exaggerated effect. That may be the kind of market we are in for the rest of the year,” said Scott Clemons, chief investment strategist at Brown Brothers Harriman Private Banking.
Given that murky outlook, strategists are advising caution. O’Rourke notes investors appear to be rotating out of riskier small-cap companies back toward stalwart large-cap stocks.
That’s represented in the relative performance of the Russell 2000 index RUT -0.46{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , which is more heavily weighted to companies with smaller stock-market capitalizations, versus the large-cap S&P 500. The Russell 2000 is down 4.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} on the year, while the S&P 500 is still up 4.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} during that time frame.
- Published in Blog
Want to invest like Buffett and Soros? Try this
Warren Buffett (L) and George Soros
The iBillionaire Index ETF: brilliant or gimmick?
The easiest way to “invest like a billionaire” would be to start with a billion dollars.
Since you don’t have that, your latest way to invest like the super-rich involves a new exchange-traded fund with an appealing methodology.
The question is whether it’s a gimmick or if it actually works.
The Direxion iBillionaire Index ETF IBLN -0.37{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} debuted Friday, tracking an index made of 30 large-cap stocks that — when viewed through the lens of filings made with the Securities and Exchange Commission — appear to be the favorites of guys like Warren Buffett, Carl Icahn, David Einhorn and George Soros.
You could make a case that having rich successful guys “select” stocks — even if the iBillionaire index is a reflection of their public trading activity rather than any actual purchase recommendation — is a better idea than having three guys (one of them a newspaper editor) picking the stocks that make up the Dow Jones Industrial Average DJIA -0.42{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} . In fact, iBillionaire president Raul Moreno makes just that case.
If you buy that argument, then you might believe that the folks at Direxion have found the proverbial “better mousetrap,” and that money will flock to the iBillionaire fund.
Red wine for a summer’s night
Red wine for a summer’s night? It’s not as much of a stretch as it may seem.
A few years back, however, Andrew Hargadon, an entrepreneurship expert who teaches at the University of California-Davis, noted that the U.S. patent and trademark office had issued over 4,400 new mousetrap patents since it opened in 1828, but that only two dozen of those ideas “have made any money, and only two designs have ever dominated the market.”
In short, even if you have designed a better mousetrap, the world may not agree and rush to your door.
And in the case of the iBillionaire ETF, there’s a good chance that investors will come away feeling like this is more marketing ploy than something to buy.
Moreno, however, disagrees. In an interview that will air next week on MoneyLife with Chuck Jaffe , Moreno notes that investors are already trying to follow investment geniuses, but that “this makes it much easier to do,” and it doesn’t force the investor to rely on any one particular expert.
The fund equal-weights the stocks, meaning each of the 30 holdings accounts for 3.33{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the overall portfolio. That means it’s making high-conviction bets not only on Micron Technology MU +0.74{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} — which amounts to 0.17{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Standard & Poor’s 500 SPX -0.29{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} — but on big names like Apple Inc. AAPL +0.39{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , which represents 3.14{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the S&P.
But with names like Apple, eBay EBAY -0.57{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , Mastercard MA +1.43{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , Dow Chemical DOW +0.43{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , Halliburton HAL +0.12{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and Google GOOG +0.34{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , it’s hardly like the billionaires’ secret sauce is delivering unique ideas.
In fact, the iBillionaire holdings seemed pretty similar to me to the issues in the latest myMom index. You won’t find that one online or anybody making an ETF about it soon, but it would be the index of 30 names that my own mother either owns or is most interested in chatting about every time we get together.
If you called the iBillionaire benchmark what it is, it would be known as the “30 stocks that rich guys like” index.
That may or may not be better than the process that’s behind the Dow Jones Industrial Average, though it will take years to know.
Moreno pointed out that the index itself has been a solid performer since it was launched last November, comfortably beating the S&P, and that he expects that to continue because “if you look individually at billionaires’ portfolios – like Warren Buffett, Carl Icahn, George Soros – they have outperformed the S&P over a long period of time, and that’s why people follow them and why we created the index.”
One place to look for a quick comparison is similar funds, and IBLN is a variation on a theme started by the Global X Guru Index ETF GURU -0.16{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} , which opened in 2012 and now has about a half-billion dollars in assets. The Guru fund tracks an equal-weighted index that attempts to mimic concentrated equity positions taken by large hedge funds, as reported in SEC filings; that’s the same basic concept as iBillionaire, but with 75 experts instead of 20 billionaires.
In 2013, the Guru fund was the top issue in its category, according to Morningstar Inc.
This year, it ranks dead last.
It hasn’t lost money — and it is still outperforming the S&P sharply since inception — but it’s pretty much in line with the average large-cap fund since it opened, despite one year of superior results.
In other words, thus far, it has mostly proven to be a “different” mousetrap.
Whether the iBillionaire fund can escape that label and prove to be superior to the competition is a long way off.
First it must attract enough assets to survive, which in the world of ETFs means luring in excess of $50 million in short order; there, the success of GURU would be a strong positive.
Then, it must deliver performance that inspires confidence, that makes the public feel that “invest like a billionaire” is an actual strategy, rather than a slogan, the kind of numbers that show that when you put these colorful big names together — and none of the billionaires is actually affiliated with the index or the fund in any way — you get the best of their insights rather than a puddle of mud.
Given enough time, the strategy indeed may prove itself to be better than the Dow Jones and/or S&P, but right now it feels like an idea for people who don’t want to do research or homework themselves, but who want to invest like that guy they know with a lot of money.
If that feels like a schtick instead of a strategy — and it does to me — then avoid the fund until it’s proven. If you love the idea, however, you can take a chance and dive in; just remember that the experience pool is shallow and that nifty ideas may make for good marketing hype but they don’t always turn into good funds.
By Chuck Jaffe, MarketWatch
- Published in Business
If Big Pharma Isn’t Nervous, It Should Be; Early Stage Cannabis Technologies…Potentially the Next GW Pharma
VANCOUVER, British Columbia, July 31, 2014 (GLOBE NEWSWIRE) — Deep in the brain, buried within the central nervous system as well as lymphatic tissues and organs throughout the body are cannabinoid receptors; patiently waiting to help address a myriad of diseases. With the advent of cannabis research and therapy development many patients will likely trigger them very soon.
Two known receptors in the Endocannabinoid system are CB1 and CB2. There is mounting evidence that there are many more. Simply put, this system of receptors is involved in dealing with a variety of physiological processes including appetite, pain-sensation, mood and memory.
Activating these receptors by introducing the appropriate drug based on a specific formula of cannabis, primarily utilizing Cannabidiol (CBD) and Tetrahydrocannabinol (THC) has already shown remarkable potential efficacy, albeit somewhat anecdotal, in the treatment of a host of afflictions ranging from cancer to epilepsy, glaucoma, MS, Tourette’s and even eczema.
To date there have been approximately 100 cannabinoids identified; each with the potential to be an integral component of a lower cost treatment; countering the expensive and frequently toxic Big Pharma drugs and therapies.
The current level of research and development of cannabis therapies is analogous to where the Internet was in the mid 1990’s. What is known is that the introduction of targeted phytocannabinoid formulations, such as those with CBD and THC, signal the body to make more endocannabinoids and open more cannabinoid receptors enhancing the body’s ability to fight pain and disease.
“At this point, we don’t actually know how many therapies are possible utilizing phytocompounds, but we suspect hundreds, if not thousands,” stated Craig Schneider, President and CEO of Cannabis Technologies (CAN: CSE, CANLF: OTCQB). “To that end, CAN has developed a proprietary Cannabinoid Drug Design Platform (CDP) to identify new bioactive compounds within the cannabis plant that interact with certain genes responsible for specific diseases.”
The poster stock in this Life Sciences sector is GW Pharmaceutical. The Company IPO’d at $8.90 in May 2013 and traded as high as $107 in 2014. When investors compare the metrics of peers GWPH and CAN, the case for the latter appears compelling.
While it would be easy to draw the usual David and Goliath analogy, in this case the participants, while competitors are really more peers, working toward the same therapeutic goals. And, as a result of the focused CDP development process, cannabis therapies can be on the market in 4-6 years versus 10-15 years as is the norm through the Big Pharma pathway.
GW currently trades at $87 has a market cap of $1.5 billion and had trailing twelve-month (ttm) revenues of $50 million, is virtually debt free and has approximately $163 million in cash. Cannabis Technologies trades at $0.37 is pre-revenue and has a market cap of $12 million with roughly $600k in cash. CAN shares have a 2014 high of $0.71 and low of $0.33.
GWPH market cap is 30 times revenue. Translating that multiple to eventual revenues to early stage CAN evidences compelling growth potential.
GWPH, as CAN, decided early on to dedicate R&D to therapy development and plant their respective flags firmly in Life Science space instead of the class of ‘Medical Marijuana’ companies with all the different connotations.
These companies are involved in serious and life saving science. There are others as well, including AbbVie, which makes the FDA approved chemotherapy nausea treatment Marinol, which is a synthetic formulation of THC. Valeant Pharmaceuticals produces Cesamet, which is a like treatment. The best known to investors is likely GW’s vapor delivered Sativex, used currently in 25 countries outside the US for treatment of the spasticity associated with MS. Sativex is currently in clinical trials for approval as a treatment of cancer pain.
CAN’s Schneider notes: “The media has categorized CAN as an early-stage GW Pharma, a comparison we welcome. We are currently entering Phase 1 trials for our glaucoma treatment CTI-085, which showed great therapeutic promise in pre-clinical trials relieving the ocular pressure associated. This initial therapy is much more, being a proof of concept of the ability of our CDP to identify specifically engineered treatments to deal with many debilitating and deadly diseases.”
For context, the $12 billion ocular disease market includes $5.7 billion for glaucoma.
Other drugs in development include GW’s Epidolex for the treatment of rare diseases as well as other compounds in clinical trials for treatment of autoimmune, diabetes and schizophrenia.
The key to therapy going forward is this specific engineering and the ability to replicate the compound for quality and consistency. Sativex is basically 50{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} CBD and 50{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} THC. The CBD component has the dual task of being the active ingredient as well as damping down the psychotropic effects of the THC. CBD comes from the hemp plant and has only trace THC.
As new cannabis drugs develop, individual formulations will be more therapy specific, have non-cannabis ingredients added and undergo stringent quality and consistency controls.
Big Pharma has a right to be nervous. Side effects from cannabis therapies are virtually non-existent, development costs are extremely low by comparison–$5 billion on average per Big Pharma drug—and companies like CAN are confident that as it progresses it can develop therapies in a period of 60-90 days instead of decades.
Part of the strategic engineering is not just how much of this and that goes into a compound. The key is to develop plants that produce the right material for each formulation. It is not inconceivable that if there were 500 cannabis therapies, there would be 500 different strains of cannabis plant as ‘feed stock’.
The label of Medical Marijuana companies, when referring to enterprises such as GW, CAN, AbbVie and Valeant, are the exception to what appears to be a wild west show at times. These are serious life science companies. To include them with the plethora of Medical Marijuana initiatives, whether junior mining companies looking for a new direction or those that feel simply growing generic marijuana is a sound business plan, many will likely fail or be swallowed.
Like the Internet of old where there are few survivors today from that era, the cannabis space will eventually be littered with casualties as it builds out. What is not in dispute, is that the efficacy of cannabis appears undeniable and therapy development will continue and likely speed up, building on early successes. GW and CAN will likely be among those to grow and prosper; a good thing for both shareholders and, more importantly, those millions of patients suffering from particularly nasty diseases and conditions.
Innovative science requires scientists. Rounding out CEO Craig Schneider’s 20 years of capital market and biopharmaceutical experience CAN has two world-class scientists. Dr. Sazzad Hossain Ph.D, M.Sc., Chief Science Officer, brings two decades of experience in new drug discovery and natural health product development. His practical experience includes senior scientist at the NRCC bringing and has generated over $500 million in revenue from therapies he has been involved in developing from the discovery to commercialization.
Key as well is the Company’s breeding, genetics and cultivation division led by Dr. Hyder Khoja, Ph.D., M.Sc., A.Ag. who brings 17 years of extensive research and business provenance in life sciences and business services.
Management has spoken frequently about addressing larger therapy markets including cancer, metabolic diseases and pain and inflammation. On par with GW, CAN has plans to produce medicines in-house initiated by its CDP technology, breeding and cultivation division and proprietary formula engineering. Even at this early stage, the Company is keenly aware of the need for not just the development of therapies but the ability to replicate each with strict quality and consistency.
Further adding to shareholder value is a patent pending for CAN’s CDP and a plan to protect IP by filing patents as therapies are developed.
If you are considering investing in the cannabis space, buy the science. Hype has a very short shelf life.
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CONTACT: Cannabis Technologies #350-409 Granville Street, Vancouver, BC Canada, V6C 1T2 Tel: 604.669.7207 Fax: 604.683.2506 info@cannabis-tech.com
- Published in Life Sciences, Medical Marijuana
Sirona, Bloom Burton makes anti-inflammatory compound
Mr. Howard Verrico reports
SIRONA BIOCHEM ANNOUNCES SUCCESSFUL SYNTHESIS OF ANTI-INFLAMMATORY COMPOUND FOR BLOOM BURTON & CO. JOINT VENTURE
Sirona Biochem Corp. has achieved the first batch of compound in the joint venture with Bloom Burton & Co. Compounds developed within the framework of the JV will be entering development in the areas of rare inflammatory and infectious diseases.
At present, there are unmet market needs in the areas of rare or neglected inflammatory diseases and bacterial resistance. Sirona and Bloom Burton are identifying and designing a library of compounds to address these substantial markets which combined reach nearly $2-billion (U.S.) each year globally. Sirona is responsible for the chemistry and Bloom Burton for the financing, clinical validation as well as the commercialization of the compounds.
“We could not be more pleased with the completion of the first synthetic compounds. This is a major milestone in the development of our portfolio for rare and neglected diseases,” said Howard Verrico, chief executive officer of Sirona Biochem. “The team at Bloom Burton will plan for the testing of our new anti-inflammatory compounds in the near future. In the next several months, we will be working on the development of further compounds for our JV with Bloom Burton as planned.”
© 2014 Canjex Publishing Ltd. All rights reserved.
- Published in Life Sciences