Tuesday, July 14, 2009

Bastille Day

Congratulations to the French on their national holiday - Bastille Day. The celebration harkens back to the storming of the Bastille on July 14, 1789, at which time the Third Estate as the regular folk were called, had pressured Louis XVI to recognize their loosely defined legislature. Nonetheless, Parisians were feeling uneasy and decided guns and powder would still be useful. So they went to the best storehouse in town - the famous Bastille prison.

Like most acts of rebellion, making the move on the Bastille ammunition was more symbolic than anything - sort of like dumping tea in the Boston harbor.

Our governments and economies need a good “storming action” every once in while to sort of shake things up and get peoples’ attention. By late August that year, France abolished feudalism through the Declaration of the Rights of Man and of the Citizen.

There was no "storming action" against the CAC 40, the Paris Stock Exchange Index, which closed up just under 1%. Of course, the Paris Stock Exchange is now known as NYSE Euronext following the consolidation of national exchanges. Among our favorites in the index is Veolia Environnement (VIE: NYSE Euronext or VEOEF: OTC/PK), a provider of water and waste water management services and products. Veolia is finding new ways to clean up and recycle precious water resources, putting it high on our list of stock in the conservation sector.

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.

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