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March 9, 2018

7 @ 7:00

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 $1,312 and $1,323 so far today…as of 7:00 am Pacific, bullion is down $2 an ounce at $1,320…Silver is up slightly at $16.53Copper and Nickel are both rebounding, up 4 cents and 12 cents, respectively, at $3.12 and $6.12 after bullish news on the U.S. economy…Zinc is unchanged at $1.46…Crude Oil has jumped $1 a barrel to $61.13 while the U.S. Dollar Index is off slightly at 90.13…the booming U.S. economy added a staggering 313,000 jobs in February, crushing expectations, while the unemployment rate remained at 4.1%…economists surveyed by Reuters had been expecting non-farm payroll growth of 200,000…construction firms added 61,000 workers, the biggest increase in nearly 11 years for the sector…wages, however, grew at a slower rate compared with January which will temper inflation expectations…average hourly earnings for all private sector workers increased 4 cents last month to $26.75…wages rose 2.6% from a year earlier in February while the average wage gain in January was revised down to 2.8%…Wall Street loves it but CNN keeps talking about Russians and Stormy Daniels…

2. Cobalt is up again this morning, trading at another new decade high of $37.88a powerful group of top mining executives, including Robert Friedland, has failed to derail the momentum of a controversial new tax code in the “Democratic” Republic of the Congo…the miners held a 6-hour meeting with Congolese President Joseph Kabila on Wednesday, but the government said it will proceed with its planned tax increases without any changes…the government did agree, however, to “listen to the concerns of the miners” after the tax code is signed into law…how generous of them…the DRC is an unstable regime, to put it politely, that currently supplies more than 50% of the world’s Cobalt…all the more reason why investors need to be looking at Cobalt opportunities elsewhere, particularly in North America where so much geological potential exists for new Cobalt deposits and mining of historic ones…at the top of that list is the northern Ontario Cobalt Camp where multiple companies are active…Canada Cobalt (CCW, TSX-V) appears to have the most attractive current valuation and we’ll be explaining why in the days ahead…

3. The left-wing mainstream media in the U.S. and Canada had difficulty dealing with the bombshell announcement regarding North Korea last night – the news that “Little Rocket Man”, who has been squeezed hard by tough sanctions and the credible threat of annihilation from a U.S. military strike, is now prepared to potentially denuclearize and requested a near-term meeting with President Trump…this development underscores how no one understands the “Art of the Deal” better than the book’s author who’s now applying that business acumen in the Oval Office in matters of national security and trade…Trump has agreed to meet with the North Korean leader by May in what would be an historic moment of international diplomacy…there has never been a face-to-face meeting, or even a phone call, between sitting leaders of the two nations…Trump’s unpredictability has helped move the needle on North Korea more than any other American President before him, and Republican Lindsay Graham had another message for “Little Rocket Man” in an official statement last night:  “The worst possible thing you can do is meet President Trump in person and try to play him.  If you do that, it will be the end of you – and your regime,” Graham said…

4. Alberta needs to take a page out of the Trump Playbook and become much more aggressive in its dealings with British Columbia which is deliberately and illegally standing in the way of the Kinder Morgan pipeline expansion (a threat not just to Alberta, by the way, but all of Canada with the feds remaining virtually silent)…there needs to be some serious push back against the unrepentant Green Monster, similar to how former Alberta Premier Peter Lougheed threatened to make Eastern Canada freeze in the dark (and made that threat credible) when Pierre Trudeau introduced his disastrous National Energy Program in the early 1980’s…Lougheed passed legislation allowing him to reduce Alberta’s Oil exports to Ontario by 15%…he didn’t turn off the Oil taps completely, but adjusted the flow so central Canada felt the pinch – and Ottawa agreed to renegotiate the program…Alberta Conservative and Opposition Leader Jason Kenney has been a strong proponent of the Lougheed approach when it comes to British Columbia, and yesterday Alberta Premier Rachel Notley raised the specter of such action in the government’s throne speech.  “In the past, when workers in our energy industry were attacked and when the resources we own were threatened, premier Peter Lougheed took bold action.  We will not hesitate to invoke similar legislation if it becomes necessary owing to extreme and illegal actions on the part of the B.C. government to stop the pipeline.”  Whether Notley The Snowflake has the courage to act on those words is another question (with Kenney there is no doubt – British Columbia will freeze in the dark and gas prices will go through the roof, even if it means short-term pain for Alberta)…meanwhile, anti-pipeline protesters, broadly encouraged by the Green Monster, have kept Burnaby RCMP busy this week – police have made 6 arrests in the past 4 days with individuals doing everything from chaining themselves to trees to jumping on work vehicles and blocking access to the Kinder Morgan site…

5. Interesting allegations from Maricann Group (MARI, CSE) CEO Ben Ward who’s taking aim at the underwriters who terminated the company’s $70 million bought deal announced at the end of January…Eight Capital and Canaccord Genuity served as the lead banks…they each had agreed to buy 40% of the deal from Maricann and then resell those securities to other investors…last week, the syndicate of underwriters formally cancelled the deal after The Globe & Mail reported that Maricann had not disclosed a probe by the Ontario Securities Commission into Ward…the OSC has also made inquiries into recent trading by company directors…Ward alleges that an unnamed underwriter sought to tank the deal because pot stocks tumbled shortly after the financing was launched.  “We believe the underwriter in question was working with clients that shorted our stock in the wake of the deal collapsing with the intention of destroying Maricann’s shareholder value and making off like bandits at the same time…there was clearly something nefarious afoot,” Ward told the Globe

6. The Dow has climbed 172 points through the first 30 minutes of trading following the encouraging jobs report and President Trump’s tariff announcement yesterday…in Toronto, the TSX is 15 points higher…a bad week for Bitcoin…the cryptocurrency has fallen back below $10,000, a drop of about 25% for the week after a slew of negative headlines hit the cryptocurrency market this week…Aurora Cannabis (ACB, TSX) has been successful in its offer for all the issued and outstanding common shares of CanniMed Therapeutics (CMED, TSX)…the number of CanniMed common shares tendered as at the close of business yesterday totaled just over 17.8 million, representing approximately 71% of the total outstanding CanniMed Shares on a fully diluted basis…the Venture is unchanged at 829Pascal Biosciences (PAS, TSX-V) is close to wrapping up its financing after announcing last night that the PP is now over-subscribed and is being increased to $5.2 million at 40 cents per unit…

7. Wearable technology leader Kopin Corp. (KOPN, NASDAQ) is up for the 7th straight session in early trading…Daniel will have more regarding the company’s Q4 financials released yesterday in today’s Daniel’s Den…after a 78% jump in revenue in Q4, vs. the same period a year earlier, Kopin is forecasting strong demand in 2018 with revenues expected to increase by as much as 50% to $40 million…as CEO Dr. John Fan stated, 2018 could be the “tipping point” for enterprise adoption of augmented reality (AR)…

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14 Comments

  1. Hearing rumours of more financing for ais at .30…….if ais needed more money why wouldn’t they Of financed when this was over a buck? Must be just a RUMOUR

    Comment by Gregory — March 9, 2018 @ 10:42 am

  2. BMR…This is not a criticism but only an observation, as you guys do great work. When I refer back to your post of Dec 30/17 “Venture Locked And Loaded for Powerful Q1”, which was so positive, I just have to ask what went wrong so far in 2018 which has been brutal. Seems like good stocks, good news, but the stocks have no idea which way north is. I know we have been hit with a lot of cheap paper being exercised because of PP, on more than 1 stock, but there must be more to it than that.I hope it’s not time to start waving the white flag.

    Comment by dgambler — March 9, 2018 @ 1:24 pm

  3. Are you guys still staying with AIS?

    Comment by Carl — March 9, 2018 @ 2:17 pm

  4. I worked the whole winter in Saskatchewan oil patch instead of my home province Alberta thanks to the Snowflake lmao

    Comment by Shawn — March 9, 2018 @ 3:19 pm

  5. Anon bought 174k shares of DBV in the last 5 minutes of trading on a Friday afternoon. Something up? Any thoughts on dbv?

    Comment by Sameer — March 9, 2018 @ 3:33 pm

  6. Jon or John…. Any idea when we can anticipate a stop to the decline in AIS? Are we getting close to a reversal?

    Comment by Raffi14 — March 9, 2018 @ 4:17 pm

  7. Jon: hoping you will provide updates on the Venture/MOON/IMR/AIS. DOW up over 400pts today! Thanks!

    Comment by MERIDEX — March 9, 2018 @ 5:36 pm

  8. Nothing has changed in our view regarding AIS since our last update, Carl…the market continues to deal with the free-trading paper from the fall financing and the turnaround will come when that paper has been fully absorbed – as simple as that…if you look at the chart, very oversold conditions have prevailed for a few weeks now…most of that 2nd tranche has come through the market if you look at the number of shares that have traded since Feb. 21…another week to go, perhaps, we’ll see…

    Comment by Jon - BMR — March 9, 2018 @ 7:36 pm

  9. dgambler, it hasn’t helped that various governments across the country (provincial and federal) have negatively impacted sentiment in the resource sector…Canadian markets are under-performing vs. the U.S. and today was another classic example of that…cryptocurrency/blockchain stocks have cooled off big-time, of course, and they were significant drivers of the Venture in late 2017…we’re into a selective market again but there’s still plenty of speculative money searching for unique opportunities…in that environment we saw some spectacular action in certain plays last year…

    Comment by Jon - BMR — March 9, 2018 @ 7:52 pm

  10. Jon:
    What happened to IMR?
    Did you visit them?
    Still following them or on the shelf?
    Thx

    Comment by GoldenFalcons — March 9, 2018 @ 10:25 pm

  11. Going shortly, GoldenFalcons, in other words within the next week approximately…hoping to finalize exact timing and arrangements by Monday…

    Comment by Jon - BMR — March 10, 2018 @ 3:39 am

  12. Jon:
    Thank you.

    Comment by GoldenFalcons — March 10, 2018 @ 6:15 am

  13. The Selling continues on GGI , yesterday as low as $2.06 and hopefully the next Short List is down under 200K ….. CIBC has been a big Buyer the past couple of weeks, and all indications are looking positive to an early start to the 2018 Program on Nickel Mountain. Gotta look after the Shorts it seems, but at the same time it’s great for some of us who are still picking up Shares under $2.35 …….. nice to see CCW possibly turning the corner, while AIS has not mopped up just yet. Farmer T

    Comment by farmer — March 10, 2018 @ 12:21 pm

  14. I hope we hear more in the Sizzle about when GGI is drilling.

    Comment by GoldenFalcons — March 11, 2018 @ 3:07 pm

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