Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,324 and $1,333 so far today…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,330…traders are eyeing the minutes of the Fed’s January 30–31 policy meeting which will be released in a few hours…a hawkish tone out of the FOMC minutes could push bond yields even higher…Silver is up 15 cents at $16.57…Copper, Nickel and Zinc are off slightly at $3.18, $6.16 and $1.61, respectively…Cobalt is unchanged at $36.51…Crude Oil has slipped 25 cents to $61.54 while the U.S. Dollar Index has added another one-tenth of a point to 89.84…flash PMI readings from research firm IHS Markit for the U.S. manufacturing and service sectors came in better than expected this morning…
2. Bloomberg reports that Apple is in talks to buy long-term supplies of Cobalt for iPhone batteries directly from miners…the iPhone maker is seeking contracts to buy several thousand metric tons of Cobalt for 5 years or longer, according to a Bloomberg source…while many manufacturers are trying to increase the proportion of Nickel used in electric vehicles, which is more economical and helps increase energy density, Cobalt remains an essential element of electric car batteries given its positive impact on cycle life and the batteries’ ability to recharge quickly…it’s simply not possible – and it won’t be for perhaps 2 or 3 decades according to many experts – to remove Cobalt from the battery equation…
3. Kirkland Lake Gold (KL, TSX), our favorite Gold producer, is higher this morning after reporting robust 2017 net earnings of $132.4 million (U.S.) or 64 cents (U.S.) per share, a major improvement over 2016 as the company enjoyed record production of 596,405 ounces which exceeded guidance…all-in-sustaining costs averaged $812 (U.S.), a 13% improvement from 2016…meanwhile, cash flow from operating activities in 2017 totaled $309.8 million, a 66% increase from 2016…cash at December 31 totaled $231.6 million with no debt…by focusing on 3 key pillars of value creation – operational excellence, disciplined organic growth and shareholder returns – KL was the top-performing stock on the S&P/TSX Composite Index on a full-year basis in 2017…given its production profile over the coming years, KL should continue to excel…
4. Wolfden Resources (WLF, TSX-V) has delivered high-grade results over significant intervals from each of its first 3 drill holes (infill) at Pickett Mountain, one of North America’s highest-grade undeveloped VMS projects in the state of Maine…the first 3 holes supported historical data and included 18.4% Zn, 8% Pb, 1.9% Cu, 207 g/t Ag and 1.6 gt Au over 8.7 m (111 m to 119.70 m) in PM-17–002…the 10,000-m program is designed to confirm historical results, in preparation for a resource estimate by year-end, and will also focus on expanding the mineralized zones at depth and along strike…previously defined massive sulphide mineralization occurs in two lenses approximately 400 m in length, 4 to 10 m in width and up to 800 m in depth…Wolfden will also be carrying outdetailed ground and airborne geophysical surveys to further assist in the drill targeting process…
5. Canada’s self-inflicted wound as climate change extremists try to “save the planet”: Lack of pipelines and massive discounts for Canadian heavy Oil could cost the economy as much as $15.6 billion this year, or three-quarters of a point in the country’s GDP, according to economists at Scotiabank in a damning report released yesterday. “Reliance on the existing pipeline network and rail shipments to bring Canadian Oil to market has a demonstrable impact on Canada’s well-being, with consequences that extend well beyond Alberta…the sooner governments move to allow additional pipeline capacity to be built, the better off Canada will be,” stated Scotiabank senior Vice-President/chief economist Jean-Francois Perrault and commodity economist Rory Johnston…unfortunately, the new government in British Columbia – the Green Monster – is determined to kill the federally approved Kinder Morgan pipeline expansion, and many Green Monster followers are prepared to break the law in order to help make that happen…
6. The Dow’s 6-session winning streak was snapped yesterday but the index is up 74 points through the first 30 minutes of trading this morning…interestingly, 6-day win streaks have been a highly reliable predictor of short-term future gains over the last 5 years…improving commodity markets and a strong performance from its trading arm have allowed Swiss-based Glencore to post its best results ever as annual adjusted profits rose by 44% to $14.8 billion (U.S.)…just 2 years ago, at the bottom of the commodity cycle, Glencore was forced to raise $2.5 billion through an emergency share placing…senior executives showed their confidence by buying a large proportion of the shares and have seen their bet handsomely rewarded…in Toronto, the TSX has added 99 points while the Venture is flat at 833…Castle Silver Resources (CSR, TSX-V) begins trading Friday as “Canada Cobalt Works” with a new trading symbol of CCW…Barkerville Gold (BGM, TSX-V) released additional results this morning from its Phase 2 Island Mountain exploration and infill drill program…7 rigs are currently exploring and delineating the Shaft zone…highlights include 104.5 g/t Au over 1 m near-surface in IM-17–201; 23.9 g/t over 6.65 m and 12.2 g/t over 13.3 m further down the hole in IM-17–215; 28.7 g/t over 4.45 m in IM-17–226; and 24.8 g/t Au over 5.1 m in IM-17–231…Alamos Gold (AGI, TSX) now has Proven and Probable mineral reserves of 9.8 million ounces of Gold…the 28% increase reflects the addition of the Island Gold mine (through the acquisition of Richmont Mines), further growth at La Yaqui Grande and the declaration of an initial mineral reserve at Lynn Lake…
7. Governments and central banks sure seemed worried about Bitcoin…the cryptocurrency has backed off today but remains above $10,000 after a strong rally from its lows earlier this month…the Dhaka Tribune in Bangladesh is reporting that local police are “on the hunt for Bitcoin users”…the report adds that the government has warned people not to make any transactions using Bitcoin, and according to Bangladesh Bank, “Bitcoin is neither accepted nor considered legal tender anywhere in the world”…meanwhile, Mark Carney, the governor of the Bank of England, said at a talk at a university in London Monday night that Bitcoin has “failed” as a currency. “It has pretty much failed thus far on…the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange,” Carney said, according to Reuters…
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Can someone please fill us in on how much Paper is going to hit us in March ?? Down now to .41 and really, the floor could be .30 ……… so much for the Support Theory. My Printing Machine has no more ink !! Farmer T
Comment by farmer — February 21, 2018 @ 8:36 am
I find it hard to believe that ais will pull out of this mess, all I have is hope! It sure would be nice to know if BMR has had contact with management and maybe throw us a bone here!
Comment by Gregory — February 21, 2018 @ 9:52 am
AIS – aould be from the general belief that the venture and the companies that make up the venture will NOT make that run to 1000/1100 … the weed stocks have cooled… and thus the volume on the venture has as well…
wish I knew what to make of it… seriously thinking that the micro and small cap space is doomed for the short term.
AIS crashed the bottom bollinger band… and oversold.. but again not sure what it all means!!
Comment by Jeremy — February 21, 2018 @ 10:48 am
AIS – aould be from the general belief that the venture and the companies that make up the venture will NOT make that run to 1000/1100 … the weed stocks have cooled… and thus the volume on the venture has as well…
wish I knew what to make of it… seriously thinking that the micro and small cap space is doomed for the short term.
AIS crashed the bottom bollinger band… and oversold.. but again not sure what it all means!!
Comment by Jeremy — February 21, 2018 @ 11:36 am
AIS getting killed. Nasty.
Comment by Dan1 — February 21, 2018 @ 11:50 am
Gregory, you nailed it, AIS just ridiculous…
Comment by flyinthruu — February 21, 2018 @ 11:54 am
Looking like final capitulation selling in AIS today. Record volume. Started to buy back in the low .40’s.
Comment by DBReese — February 21, 2018 @ 12:09 pm
Ya AIS info please lol
Comment by Shawn — February 21, 2018 @ 12:12 pm
I’m Buying… This is more than just a gift!
Comment by Patrick — February 21, 2018 @ 12:17 pm
February is certainly a month to forget. Hopefully March well fare better. With companies starting their exploration and drilling programs, things should improve.
Comment by Dan1 — February 21, 2018 @ 1:04 pm
I’m starting to wonder myself Gregory, however it’s the same old story ” what goes up, must come down ( however in this case, enough is enough ), and at some point we should see gains once again. Lots of Promotion on the way up, and finally the spirit is broken and the collapse follows. Even News of Drilling soon underway will not stem the Tide here …….. so I guess now it’s time to find out how much Paper will be hitting us Longs over the coming weeks, and I guess it’s time to decide on holding on or giving in and believing in what we were hearing for weeks and weeks on end, thus holding our Positions. Very brutal indeed, and I know I’m not the only one bleeding now ….. Farmer T …….. yessss, some one throw a bone or two !!!
Comment by farmer — February 21, 2018 @ 3:02 pm
Colorado Announces Appointment of New President and CEO
WEST KELOWNA, British Columbia, Feb. 21, 2018 (GLOBE NEWSWIRE) — COLORADO RESOURCES LTD. (TSX-V:CXO) (“Colorado” or the “Company”) is pleased to announce the appointment of Robert P. Shaw as President and CEO effective February 26, 2018.
Mr. Shaw holds a M.Sc. in Economic Geology, earned at the University of Alberta in 1990 and has over 30 years of mineral exploration experience throughout the Americas. Recently Mr. Shaw was President of the Western Canada Greenfields Group pursuing project generation and mineral exploration opportunities in the North American cordillera, focused on British Columbia from March 2016 until January 2018. With Golden Star Resources/Cambior Inc, he worked on the generative and development teams at Omai (Guyana) and Gros Rosebel (Suriname). He was a founding member and Exploration Manager of Metallica Resources Inc. (Cerro San Pedro, Mexico; Gramalote, Colombia; Mara Rosa, Brazil; El Morro-La Fortuna, Chile). In Peru he was co-founder of Compania Minera Phosphex and was responsible for the re-discovery of the giant Mantaro phosphate deposits (Sprott Resources Corp – Stonegate Agricom). From 2002 to 2010 he worked for AngloGold Ashanti where he served as Chief Geologist, Colombia and consultant for the Americas and was a formative member of the generative team which identified and advanced numerous projects including Gramalote, La Colosa and La Quebradona which, collectively, contain drill indicated resources exceeding 40 million ounces Au.
Lawrence Nagy, Chairman of the Board stated: “The Board of Directors welcomes Mr. Shaw to the Company in this very important leadership role. Robert has an impressive skill set that he has acquired during his 30 years of experience in worldwide mineral exploration, project evaluation and project generation and advancement. We look forward to Robert bringing a new perspective and sound leadership to Colorado’s exploration team as we continue to advance our impressive exploration portfolio in the Golden Triangle of British Columbia whileseeking project acquisitions elsewhere that will provide year round exploration opportunities.”
The Company would like to thank Mr. Travis for his contributions over the years to Colorado as President and CEO and wishes him the best in his future endeavors. Mr. Travis remains a director of the Company. Colorado has filed on SEDAR the notice for its annual general meeting set for April 6, 2018.
Grant of Options
Upon his appointment, the Company will grant a total of 500,000 stock options to Mr. Shaw in accordance with the Company’s stock option plan. The options are exercisable for a period of five years at an exercise price of $0.15 per share.
Mr. Shaw’s appointment and grant of options are subject to TSX Venture Exchange approval.
Comment by david — February 21, 2018 @ 3:14 pm
Does BMR have an update on AIS for us?
Comment by large — February 21, 2018 @ 4:30 pm
Hey large, I think we are being ignored here, and I’m getting irritated to say the least
Comment by Gregory — February 21, 2018 @ 5:06 pm
BMR can only update so often… They can’t do much about the SP or where it’s headed. I’d appreciate an approximation of how many warrants are left though. Are we even halfway through what can possibly come free-trading on AIS?
Comment by Matt — February 21, 2018 @ 5:27 pm
Looking at the L/T AIS chart we see that between June 2014 and Dec 2015 SP had a downtrend from a high of 80c down to a low of 3c and then between Jan 2017 and Aug 2017 it suffered another downtrend from a high of 84c to a low of 11c. NOTE. EACH TIME IT RECOVERED to reach new highs.
The next FIB support levels are at 33c and 22c with a strong chart Resis. at 20c.
ADX still indicates the L/T Trend is bullish.
Based on its history strong downtrends are a characteristic of this company. To my knowledge the fundamentals have not changed.
Comment by John - BMR — February 21, 2018 @ 5:38 pm
AIS – Difference this time is fundamentally it is even stronger. Their project is much further advance than ever.
Comment by Dan1 — February 21, 2018 @ 5:42 pm
Aside from AIS, John, I’ve been wondering about CSR’s plans for promotion for the past little while. Did Frank mention any specifics as to how they were going to promote the name-change to Canada Cobalt Works, or was it just vaguely implied that there’d be some kind of promotion? I didn’t see specifics about this mentioned in any of the sizzlers, although I do expect news releases from CCW in the coming weeks.
Comment by Matt — February 21, 2018 @ 5:49 pm
AIS I said it a week or so ago, not a good idea to be buying when a stock is dropping to average down, never works out and it didn’t this time either. Way upside down now in AIS and BLOC. Hopefully AIS management will do something to try and stop the bleeding…
Comment by Gregh — February 21, 2018 @ 6:07 pm
BMR did it not occur to you to mention this characteristic historic downtrends when AIS was trading at a high?? If nothing else, purely for full disclosure purposes. Quite a significant bit of information I think should have been mentioned at one of your AIS promotional reports.
Comment by Lady — February 21, 2018 @ 6:26 pm
Hey Matt, CCW and FCC management are in contact with a publication – for the past several weeks. I can tell you it’s not Palisade or Wealth Research Group. Figured I’d do some investigating. I’d love to hear more from BMR. I just want to know the companies I own are doing the right steps
Comment by BigBid — February 21, 2018 @ 6:39 pm
Hi Lady,
BMR doesn’t do “promotional reports” and AIS “characteristic historic downtrends” are available for all to see at anytime. Just look at the charts! I would never buy a stock without looking at long and short term charts first.
Hi Farmer,
Now is not the time to sell AIS. As Warren Buffet says it is wise to be fearful when others are greedy and greedy when others are fearful.
Judging by the reaction on this board to the decline in AIS stock price I would say we are into the fearful stage. Instead of thinking about panic selling now is the time to think about buying. I bought a tranche in the low $.40’s and have bids in in the low $.30’s and the low $.20’s. Sure we can still go that low and I look forward to buying at those low prices if we can get there.
Remember the fundamentals haven’t changed. If one puts a lid on one’s emotions and embraces the low share price this could be a terrific opportunity.
Good luck.
Subscriber John
Comment by John — February 21, 2018 @ 6:56 pm
Greg, this is a paper (supply) problem, plain and simple, with 20 million cheap shares at 20 cents (plus warrants) impacting the market. Has nothing to do with the fundamentals. It’s the company’s responsibility to make sure they have an effective program in place to soak up that paper, and on that note Skanderbeg has performed poorly. AIS should dump them.
You can look at this in 2 ways – negatively, of course, or positively in the sense that a new opportunity is opening up. The question is, what’s the lowest price these day traders will unload their PP paper at? Hopefully they’ll be squeezed out as low as possible – therein lies the huge opportunity on the buy side.
Remember GGI and BLO going thru the same thing? – investors who focussed on the fundamentals, and didn’t get emotional over the trading action, made fortunes. Most investors, unfortunately, were so rattled and lashing out on the boards, they totally missed the blessing that was unfolding.
The second tranche of the AIS PP becomes free trading officially March 5, but that paper is being sold NOW by pro day traders – and warrants at 30 cents are also being sold into the market (putting cash into the till of course).
We’ll have an updated AIS chart in the morning.
Comment by Jon - BMR — February 21, 2018 @ 7:08 pm
Jon, any idea what the “Venture 50 TM 2018 on GGI’s website is all about? Would like to now what your thoughts are.
Comment by pole — February 21, 2018 @ 7:55 pm
AIS- so at what price range is the bottom, based on what you know?
Comment by Johnz — February 21, 2018 @ 7:55 pm
pole, looks to me like GGI is being honored by the TSX…isn’t that nice!
Comment by Jon - BMR — February 21, 2018 @ 8:37 pm
Thanks for that Jon. I’m sure the accolades will be well deserved once the drills start turning!
Comment by pole — February 21, 2018 @ 9:49 pm
Have a plan or the market will eat you up, take emotion out of the plan its not a game
make some rules about your investing, risk reward , keep your risk low and reward high
I don’t mean to tell you what to do I set rules and sometimes I break them and 99% of the time I pay the price. good luck and happy investing
posted in BMR at least once a week ,
Tips For The Bull Market
Given the events of the past month, it’s a good time to review some basic rules about investing in speculative stocks on the Venture and CSE in order to improve your odds of success:
Always have cash on hand and maintain liquidity to take advantage of sudden pullbacks in the broader market or individual stocks, or great new opportunities that “pop out of nowhere” – that means selling some paper into strength on occasion;
Never buy on margin or invest more than you can afford to lose;
Let your winners run, but locking in some profits along the way is critical during a Venture bull run (as the saying goes, bulls and bears make money but pigs get slaughtered);
For the Venture, an ideal diversified portfolio would consist of about 10 to 20 stocks across some different sectors. Keep it simple – a portfolio that is too big is too hard to manage for most retail investors;
Always aim to make money serve you – not the other way around;
Never allow yourself to lose big on one stock – that means don’t be afraid to cut your losses short on a deal if it’s not working out the way it’s supposed to (you will always have some losses, limiting them is key);
Liquidity and the ability to quickly adapt to changing circumstances are really important;
When it comes to the Venture, long-term buy and hold strategies very seldom work – stay on top of each stock in your portfolio, technically and fundamentally – you do need to trade!
Be aware of “sector rotation” on the Venture – occurs regularly. If you can get in early on a particular sector that’s starting to heat up, profits can be extraordinary;
The “Efficient-Market Hypothesis” (EMH) is a farce, certainly when it comes to juniors – a Venture stock is either undervalued or overvalued, and investors are making mistakes and overlooking things all the time. You can make a lot of money in this business through patience, discernment and “vision”, and when you remove emotion from your trading;
Most Venture companies aren’t worth investing in – focus on the top 20% of companies who have strong management teams, high quality and exciting projects, and the ability to communicate and promote to the market!;
In a strong bull cycle, always look for Venture support at the EMA(8) and EMA(20) – the same with many individual stocks (those short-term exponential moving averages, and the 50-day SMA, are great buying opportunities on pullbacks as long as they continue to rise).
Comment by robtr31 — February 21, 2018 @ 10:03 pm
AIS cheerleading turns to blame game. Guys/gals, please take responsibility for your own investment decisions. Am I the only who reads the Weekly Venture Update that keeps hammering on about paying yourself first / taking profits on runups? AIS has tripled since BMR put it on our radar and there was plenty of opportunity to take profits and to at least cover the cost of your initial investment. It also makes any potential downturn in sp/markets far less painful. I am as disappointed as anyone, don’t get me wrong, but I’ve learnt pretty quickly (with GGI) that greed can get the best of me at times, so it is important to define a strategy for yourself and to stick to it. Best of luck to everyone!
Comment by adrobyshev — February 21, 2018 @ 11:21 pm
Jon, what makes you confident CCW will perform in regards to promoting/marketing?
Comment by BigBid — February 22, 2018 @ 5:20 am
Well, BigBid, just look at how that stock has performed since the beginning of 2017. They’ve come a long way and they’ve done a lot of the right things – the name change being the latest example.
Comment by Jon - BMR — February 22, 2018 @ 6:14 am
Thanks robtr31 and adrobyshev for your comments! RE: AIS I have found some of the comments directed at BMR very HARSH!
I too have shares in AIS and am disappointed in the drop in price but BMR doesn’t have a crystal ball! They don’t need me sticking up for them but I am amazed at the time they spend helping us achieve our goals! In the last 4 years that I have been with BMR I don’t ever recall them ever taking even a weeks vacation…this is dedication for US! I also don’t know of a newsletter that gives replies instantaneously throughout the day and evenings!
Comment by Ciara — February 22, 2018 @ 7:15 am
Thanks for the info, BigBid. I had heard similar rumours on ceo.
Comment by Matt — February 22, 2018 @ 7:42 am
Thanks to post 28,29 and 32. What are we? Back in kindergarten and someone took our ball away! As it was so succinctly put on another board ” the whiney babies are crying on BMR” Our true character comes out in times like this and we start playing the blame game. But it’s never our fault for being to greedy. We expect them to research all our pet stocks, and respond quickly or we ask again and again. How about let them do what they do best! research, reports, TA and keep the personal attacks out of the equation.
Comment by DJD1 — February 22, 2018 @ 8:30 am