Inflation Jitters?

Sorry for my absence yesterday, but I was out of town on a family emergency and unable to get any internet access. But the world merely goes on blissfully unaware of your existence whether you’re online or not. Looking back over the days I was away, I see SCUR is still over $7.00 and CLRK announced a $100 million stock shelf.

SCUR looks like it is strong, but looking at the futures this morning, today will be a test of support. The futures are all negative this morning and we expect the market to decline. Two reasons for this are the price of oil has climbed back to the $60 mark and the core wholesale prices have risen higher than expected. Both these things point to inflation and potentially higher rates, which the market doesn’t like. So look for the market to at least open low and then we’ll see if SCUR can hold $7.00.

CLRK announced that they filed for a $100 million stock shelf. They plan to use funds for general corporate purposes including acquisitions, marketing and research and development which is standard language for these filings. Basically what it means is that the company is setting aside a certain amount of stock that it may sell in the future to raise money for any number of things. So I’m hoping that management will be smart about the extra shares. I have some faith in them as so far they have managed the company well.