Monday, November 21, 2005

All I Want For Christmas is My Two Gold Teeth

All I Want For Christmas is My Two Gold Teeth
Monday, November 21st, 2005
Baltimore, MD * Jackson, WY * Missoula, MT

In this Issue...


* Go-Go Gold
* Put a Fork in GM: Cause it's Done

Quote of the Day

"The markets work on fear and greed. The fear factor on central bankers
is such that they are buying. That is a very positive thing that's
happened in our industry."

- Kevin McArthur, chief executive Glamis Gold Ltd.

_____

Dear Wealth Daily Reader,

Note from the Publisher:

One of the hallmarks of the team at Wealth Daily is that we try to stay
ahead of the curve.

You already know about Mike Schaefer's Cassandra-like calls on the
energy sector. In 1997, Mike published his groundbreaking 131-page
report titled Oil Shock: How to Protect Yourself and Profit from the
Coming Oil Crisis.

A year later he followed-up Oil Shock with another prophetic report,
Natural Gas: Invisible Gold.

Mike has continued his winning predictions 8 years later, calling for a
commodities bull market to last for another 8 to 10 years. So far he's
been spot on.

However, I don't want to talk about Mike in this issue, as he gets a lot
of exposure already in Wealth Daily.

I'd like to turn your attention to a budding guru who lately has had
Cassandra-like predictions.

His name is Jeff Siegel, and we've been colleagues since our days at
Agora over 10 years ago.

Jeff is an expert in renewable and alternative energy, which makes him a
natural for Green Chip Stocks, an investment advisory service that
focuses on the emerging boom of renewable energy stocks.

Jeff told me something today that was confirmed an hour later. And it's
something you should listen to, because you can make quite a bit of
money from it.

He told me to completely erase the word "alternative" from alternative
energy. "It's no longer alternative, Brian. It's mainstream now."

It's hard to argue with him when you see commercials from the big
automakers talking about hybrids and fuel cells. Even more telling, the
advertisements from the big oil companies seem to suggest they're
looking "beyond petroleum."

Another case in point:

Suncor Energy (SU - NYSE), a $25 billion oil and gas giant with massive
holdings in the Canadian tar sands, just announced today where the
future of energy is heading.

Check it out:

"Suncor and ACCIONA Energia, through its wholly owned subsidiary EHN
Wind Power Canada, announced they have been selected by the Ontario
government to build a 76-megawatt wind power project near Ripley,
Ontario. The Ripley Wind Power Project will include construction of 38
wind turbines east of Lake Huron in Huron-Kinloss Township. Project cost
is estimated at approx $165 million."

Last week's solar IPO of Sun Power is all the evidence you need that the
bull market in renewable energy stocks is here. Originally priced
between $12 and $14 a share, Sun Power opened at $25 and never looked
back.

Sun Power now has a market cap of $1.6. and that's on $54 million in
annual sales.

Jeff believes that renewable energy stocks will be the market leaders in
2006-2007 as Wall Street pumps cash into the emerging industry. The
proof is in the pudding: His latest solar energy stock has soared 40%
since his recommendation in early October.

To get Jeff's latest analysis of the renewable energy market, go to: [
Green Chip Stocks <http://wealthdailymail.net/cntdir.asp?name=118> ]

You'll thank me later,


Brian Hicks
Publisher, Wealth Daily

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_____

More Cassandra Musings

Over the summer we mentioned that gold might hit $500 by year's end. And
it looks as if we are going to be right on target.

Today gold surged above $490 for the first time since 1987 on the COMEX.
These record prices further validate Wealth Daily's bullish outlook
towards the yellow metal.

And it looks as if the upward trend will continue over the next few
days.

Gold will most likely meet support at $484 with a bit of resistance at
$492 today.

Today's highs came after reports of strong demand and major fund buying.

Earlier this month gold demand appeared dried up around $455 an ounce.
But over the past two weeks the yellow metal has seen a renewed surge in
investor interest.

Futures have since risen by some 12% in the past four months and up over
50% over the past three years.

Last week the World Gold Council reported that global gold demand in the
third quarter of 2005 rose 7% from the year-ago quarter.

And that demand is expected to continue rising. With Christmas right
around the corner, demand for jewelry could push gold up over the $500
mark.

Gold is riding on its own fundamentals and ignoring recent gains in the
dollar against other currencies.

At last look Gold was holding steady at $488.

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_____

The Collapse of GM

As I told you last week, GM's got problems. Big problems. And today I
want to give you a quick follow up to the story.

Today the once-celebrated automaker announced that it will eliminate
30,000 manufacturing jobs and close 9 North American assembly, stamping
and powertrain plants by 2008.

These layoffs and closings are a last ditch effort for GM to get
production in line with demand and return the company to profitability
and long-term growth.

The company said it plans to achieve $7 billion in cost reductions on a
running rate basis by the end of 2006.

GM is plagued with several predicaments. And I don't believe that the
company will recover on it's own.

Like I told you last week, the company has been bled by high labor,
pension, health care and materials costs as well as by sagging demand
for sport utility vehicles, its longtime cash cows, and by bloated plant
capacity.

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_____

The company's market share has taken a beating worse than Mike Tyson's
bank account.

GM lost nearly $4 billion in the first nine months of this year. Not a
pretty picture.

The automaker could be also facing a strike at Delphi, which filed for
bankruptcy protection last month. GM, which spun off Delphi in 1999,
could be liable for billions in pension costs for Delphi retirees.

And if things weren't bad enough for GM, the company is also is under
investigation by the SEC for accounting errors.

So what does all this mean for GM? In one word.Fold.

There's only one way out of this mess for General Motors. And I don't
like it.

That's if the U.S. government bails the company out.

Sincerely,


Luke Burgess

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