Here’s a good summary of Chinese bubble and why miners are will head lower, by Roger Montgomery. It’s based around coal due to the current M&A in that area, but does extrapolate to all miners.
In summary, China property bubble bursts, Chinese Government lowers the current 55% contribution to GDP occurring through build-out of infrastructure, demand falls, miners fall.
My view is that secular cycles last longer than most predict and commodity cycles can last twenty years, so I’m sitting on the sidelines waiting for the eventual fall to start rather than wasting …

Regular readers of this blog know that I seldom talk about actual trades, I mentioned the reason for that in this post. Ironically the trade on Leucadia I spoke about ended up being my dumb trade of the month, talk about confirmation. So to invite disaster I thought I’d discuss what I’m currently up to, in case it’s not clear from my other musing.

Sandisk jumped $3.53 (12.11%) to a new 52 week closing high of $32.68 after hitting a 52 week high of $32.75 intra-day. The jump was sparked by upgraded revenue and margin guidance, followed by a bevy of analysts upping their estimates.
I’m not one for conspiracies, but it’s very difficult to take Sandisk’s low ball guidance during their earnings release on January 28th and Friday’s raised guidance at face value. Sandisk had a great fourth quarter and blew estimates away. However, due to low ball guidance the stock was heavily sold …

Top Tech Stock of 2009, Sandisk is forth. Tech is leading sector followed by materials and consumer discretionary. Can we chalk that up as a win for sector rotation? I think so. No matter what happens with this recovery the market action over the last nine months has reflected a growing optimism for an economic recovery and tech has lead.

Speed musing on CSL, Sandisk, Hunter Hall and Platinum Asset Management.