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Archive for the ‘Uncategorized’ Category

Prime Meridian Resources Corp.

Posted by nexvucapital on June 9, 2018

Nexvu Capital offers a new opportunity to invest in Prime Meridian Resources Corp. (PMR:TSXV) which is investing capital into production opportunities supported by good infrastructure in historical mining regions.

Overview of Prime Meridian Resources Corp.

PMR Overview

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Industrial Electricity Usage and Stock Returns

Posted by nexvucapital on April 30, 2015

Tracking simple electricity usage is a helpful predictor in discerning broader market movements, according to a paper released this month by a team at the University of Notre Dame.

“Simple year-over-year industrial electricity usage growth rate has strong and significant predictive power for future stock market excess returns in horizons ranging from one month up to one year,” wrote the team led by Zhi Da and including Dayong Huang and Hayong Yun.

What they found specifically, when looking over data from 1956 to 2010 in the U.S., Japan and U.K., is that each 1 percent increase in electricity usage corresponds to a 0.92 percent decline across broad stock market measures over the next year.

Electricity usage predicts stock direction: Paper

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Small Caps and Micro Caps

Posted by nexvucapital on April 15, 2015

Further to our previous comments…the evidence…as the TSXV makes a run for a 4 month high and potential breakout from the bottom along with a new one-year high for the Russell 2000. The TSXV needs to tackle the old low resistance in the 750-825 range potentially falling back to what should be support at 700 if this takes longer to unfold. A break above 825 in the TSXV will be the beginning of the bull market in the Canadian Micro-caps. This will require out-performance by the Canadian dollar which looks to have bottomed v USD at the historic 10Yr support of $0.80. Firming energy prices (we are a petro-currency) are causing a breakout from the $0.80 range.

TSX V

Rus 2000

CAD$ Short

CAD$

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Market Psychology and the TSX Venture Exchange

Posted by nexvucapital on February 27, 2015

We see some similarity in the following…and suggest we are moving from ‘Depression’ to ‘Disbelief’ on the TSX Venture Exchange Index.

Hist

5-Year TSX Venture Chart v. Psychology of a Market Cycle

Investor_psychology_070210

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OIL PRICE MOVEMENTS AND THE GLOBAL ECONOMY

Posted by nexvucapital on December 9, 2014

We have attached two NBER papers that address the effects of oil price movements on the Global Economy:

THE EFFECTS OF OIL PRICE CHANGES ON THE INDUSTRY-LEVEL PRODUCTION

In this paper, we decompose oil price changes into their component parts following Kilian (2009) and estimate the dynamic effects of each component on industry-level production and prices in the U.S. and Japan using identified VAR models. The way oil price changes affect each industry depends on what kind of underlying shock drives oil price changes as well as on industry characteristics. Unexpected disruptions of oil supply act mainly as negative supply shocks for oil-intensive industries and act mainly as negative demand shocks for less oil-intensive industries. For most industries in the U.S., shocks to the global demand for all industrial commodities act mainly as positive demand shocks, and demand shocks that are specific to the global oil market act mainly as negative supply shocks. In Japan, the oil-specific demand shocks as well as the global demand shocks act mainly as positive demand shocks for many industries.

OIL PRICE MOVEMENTS AND THE GLOBAL ECONOMY

We develop a five-region version (Canada, a group of oil exporting countries, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices. In the presence of real adjustment costs that reduce the short- and medium-term responses of oil supply and demand, our simulations can account for large endogenous variations of oil prices with large effects on the terms of trade of oil-exporting versus oil-importing countries (in particular, emerging Asia), and result in significant wealth transfers between regions. This is especially true when we consider a sustained increase in productivity growth or a shift in production technology towards more capital- (and hence oil-) intensive goods in regions such as emerging Asia. In addition, we study the implications of higher taxes on gasoline that are used to reduce taxes on labor income, showing that such a policy could increase world productive capacity while being consistent with a reduction in oil consumption.

Source: NBER

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Goldman Sachs Report on the Internet of Things

Posted by nexvucapital on September 30, 2014

The Internet of Things: Making sense of the next mega-trend

The third wave of the Internet may be the biggest one yet!

Source: Goldman Sachs

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Rotation within the Cycle continues as the Miners outperform

Posted by nexvucapital on April 11, 2014

The Miner’s have outperformed in recent weeks as reflected in the performance of the Nasdaq 100 Index versus the Metals and Mining Index over that time period:

Q100 Metals

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Copper – Bullish Divergence after Selling Exhaustion

Posted by nexvucapital on April 7, 2014

Copper

Source: Adrian Vlad – Trading View

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Real Price of Gold since 1791

Posted by nexvucapital on March 29, 2014

 

GoldPriceSince_1791_2013 (1)

Source: Visualizing Economics  

Why Gold Sold Off and It’s Major Threat Going Forward

 

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Copper – a Growth Opportunity with Downside Protection

Posted by nexvucapital on March 1, 2014

Rarely in the equity world does one find an opportunity to expose their capital to growth without the unfortunate burden of downside exposure – RISK.

We would like to hi-lite an opportunity in the Copper growth space which (subject to approval of the transaction) presents exposure to the copper cycle in a growth-oriented company that has strong financial backing and an instrument in place for downside price-protection over the medium to long-term. We have attached the Corporate Overview and an overview of the shareholder Put-Right protection.

 

Mercator-Intergeo

Corporate Overview

PUT RIGHTS

  • Mercator’s existing shareholders will receive one put right for each existing Mercator common share
  • Each put right will entitle the holder to sell one common share of the combined company to the combined company at a price of C$0.10 (pre-consolidation price)
  • Exercisable during period between 18 to 30 months from date of issuance
  • Daselina, or designee, will deposit cash or an irrevocable letter of credit in the amount of approximately C$31.7 million with a trustee to be available to support the combined company’s put right obligations

 

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