Often wrong, never in doubt. – Bill Fleckenstein

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Fleck's Thoughts

Ask Fleck

Q: Hi Bill, could you help me understand the nuance or implication when a mining company files for "a mixed shelf offering up to" some set dollar amount? Is it usually bad news for the shareholders? Does it automatically mean the miner intends to take on debt? Thank you.

Q: I read somewhere that we should expect high inflation for many years. If that were true does that mean that S&P or Russell shorts cannot work for the foreseeable future? Thanks.

Q: "Price-insensitive (aka Passive) investing:

…in 1989, when the Japanese stock market was trading at close to 100 times earnings, a passive index portfolio of global equities would have had roughly 40% allocated to Japanese equities."

- Rudy Havenstein

Q: Hi Bill,

The market didn't react positively to the Lumina streaming agreement with Wheaton for Cangrejos. I know how you feel about bought deals and ATMs, but is a streaming agreement a good financing option at this stage in the project?

I noticed they might need $1 billion in required construction capital. How do you see the company raising that capital (perhaps a strategic partner)?

Source: Lumina Gold Announces US$300 Million Metals Streaming Agreement with Wheaton Precious Metals

Q: Hi Fleck, at what point do you reverse your bearish outlook? I.e what would make you think you’re wrong? The market bottomed in October and it’s been over 8 months and despite nearly everyone seeming to call a recession and saying markets are in denial and should head lower we are grinding higher. I’m curious as to what you look for?

Q: i am adding to the tiple flag today. I figure with Ross Beaty, you, and Paul Singer in it my chances of success could be ok
The last time i asked you about it was about 30% lower. It is my biggest position in metals. you said it should be ok to buy more. Do you think it should still be ok?

Q: Fleck, maybe you'll write about this in the Rap but I'm reading the news about Lumina doing the streaming deal with Wheaton and don't understand why the market reaction is so negative in response to something that seems like good news. Wheaton commits $300 million (~2x Lumina's market cap) for only a 6.6% royalty stream and Lumina's stock drops? Is this deal not a positive?