We’re pleased to be able to reveal that we have a sister website well on the way to being up and running. Initially, the website will bring you all the latest information regarding our Brazilian based eucalyptus projects but there are plans afoot for further additions.
The aim is to give our clients unrestricted access to annual project reports, plantation updates, live charcoal prices, and various other company information, whist also providing industry related news. We’ll also provide regular photo updates and video footage too (that’s the TV bit). Will keep you posted.
Have you been contangoed?
Back in the good old days I’d have a little ritual. Buy a paper, grab a coffee and check the stocks to find out if I was a little richer that day, being the eternal optimist.
One day I read that one of my stocks had doubled, then halved in the course of the days trading (a takeover rumour fueled the spike up, a company denial, then a profits warning. Ouch!). I should have made a killing that day, I didn’t. No, back in those “good old days”, if you wanted to “invest”, a phone call was needed to the broker. Fingers crossed, he’d get you a good deal, less his handsome percentage. Cheque then dispatched and share certs would wing their way over in a month or so. No live streaming share prices, no virtual trading platforms, just the morning periodical, a telephone and a coffee to settle the nerves. All very civilised.
Now trading is live and online. Investment forums ramp up the next hot share tip. Multiple alias de-rampers talk stocks down, circulating gloomy “inside” info for willing buyers. A sinister underworld to navigate, but once through, a 15 second countdown starts and hey presto, you’re in business. Having a punt costs a fiver.
The internet and computer software has changed the way we think about making money. A whole new investing generation exists with new skills and mindsets. Time horizons are in days, hours, minutes. A quick turn, and on to the next killing…. bring it on!
But wait a minute, if there is a winner, doesn’t there have
to be a loser, and if there is, who is it?
In the past, the world of technical analysis had always been labour intensive. Examining charts, testing strategies, technical analysis has always needed hours of dedicated research in the past to get an edge on the competition. But now software systems are now harnessed and in full control.
Slightly worrying is the fact that many computer systems often employ
similar models and as a consequence trigger a kind of self-fulfilling
meltdown. Automated stop losses trigger more automated stop losses,
and the domino effect kicks in when the pressure is on the markets.
An “orderly market”, in which bid and ask prices are continually
available and the spreads between transactions are relatively small,
can get knocked down like a house of cards. Futures markets can go into
various forms of seizure, and terms like “backwardation”
and “contango” start getting bandied about.
In relation to futures markets, the terms describe the relationship
between the spot price rice of a commodity, the cost of purchasing the
commodity to have it today, and the price of the same commodity at some
time in the future. The commodity is said to be in contango when the
actual future price is higher than the expected future price. It’s
in backwardation if the actual future price is lower than the expected
Green Steel for a Green Future… a footnote
In our January newsletter we briefly mentioned that the Brazilian government has just put through a proposal to only use charcoal from afforested areas to produce pig iron (steel with impurity). In addition, it’s been decided that the timber used to make the charcoal must only involve exotic species like eucalyptus. Ring any bells?
What’s surprising is that the news has had such little coverage in the press.
Occasionally we run a marketing campaign at Greenwoods, with words to the effect of
“Brazil’s best kept secret”
Well, never has our little slogan been more apt than now.
Just in case you missed the Brazilian Presidents comments after Copenhagen
“We will work for the utilization of charcoal and not mineral coal, also with the objective of reducing greenhouse gases; and in our energy mix, which is already the cleanest in the world - considering electric energy alone, we have 85% of clean power generation.”
“…the governmental decision we have submitted to the National Congress was approved and is now a law. Therefore, this is no longer the will of President Lula. Now, whoever is governing this country will have to comply with it.”
So there you have it straight from the horse’s mouth. This proposal will not just disappear when President Lula leaves his post, it’s here for good still seems to be “Brazils best kept secret”.
Greenwood Management Offices
DenmarkGreenwood Management ApS
2100 Copenhagen Ø
CVR No 31 62 93 73
Tel: 00 (45) 36 95 37 44
Greenwood Management ApSBarreiras Brazil
CPF No 843.988.685-34
Republic of IrelandTel: 00 353 (0) 1452 0326
Fax: 00 353 (0) 1452 0341
Southern EuropeTel: 00 34 971 729 178
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Pasquini & Pasquini
S.F. GLOBAL INVESTMENTS Ltd
Fuehrende Investition Limited