Markets are getting hit hard across the board today…Gold was as high as $1,468 overnight but fell as low as $1,443 within the last hour…as of 7:45 am Pacific, the yellow metal is down $10 an ounce at $1,453…Silver has been volatile as well but is currently unchanged at $40.22…crude oil is off another $3.52 per barrel to $106.40 while the U.S. Dollar Index continues to weaken…it’s off one quarter of a point to 74.82…for what it’s worth (they’ve been wrong before), Goldman Sachs is now advising clients to cash out of oil which contributed to crude’s drop yesterday and more selling today…Goldman advised investors to close the “CCCP basket” trade it recommended in December, which encompasses bets on rising oil, copper and other commodity prices, according to a report from Reuters…the trade has returned clients 25% in four months…”Although we believe that on a 12-month horizon the CCCP basket still has upside potential, in the near term risk-reward no longer favors being long the basket,” Goldman’s commodity team, led by Jeffrey Currie in London, said in a note…the International Energy Agency stated yesterday that high oil prices are beginning to dent oil demand growth…however, tight supply remains an issue…”Hypothetically, if global supply were to chug along at March levels for the rest of 2011, OECD inventories could slip to near five-year lows by December”, the Agency stated…profit taking came into the CDNX yesterday as the Index fell for the first time in nine sessions, shedding 42 points to 2447…but the Index is off another 45 points this morning as of 7:35 Pacific to 2301 with commodity softness and weakness in New York and Toronto…2300 is a major support area that the Venture really needs to hold on a closing basis…Richfield Ventures (RVC, TSX-V) released results on nine more holes this morning from its Blackwater Project in central British Columbia…holes #127 and #129 “greatly enhance the potential of the southwestern part of the deposit,” stated Peter Bernier, President and CEO…#127 returned an interval (from 52 to 104 metres depth) grading 2.95 g/t Au and 30.4 g/t Ag (it also ended in good mineralization) while #129 cut 124 metres (from 179 to 303 metres depth) grading 1.89 g/t Au and 19.5 g/t Ag…Richfield and New Gold Inc. (NGD, TSX) announced a plan of arrangement April 4 whereby New Gold would acquire Richfield in an all-stock transaction (0.9217 of a New Gold share for each Richfield share)…since the buyout deal was announced, New Gold has dropped from $11.26 to $10.04 …Richfield is accordingly off 49 cents this morning to $9.21…good news from Gold Bullion Development (GBB, TSX-V) yesterday as the company announced after the close that it intends to spin off its Castle Silver Mine asset into a separate publicly traded company…GBB has also engaged GENIVAR to prepare a technical report for the property…a 6,000 metre drill program continues at Castle which has silver, cobalt, copper and nickel potential…spinning off the Castle project is a strategically wise move on Gold Bullion’s part and will also help unlock the value of that asset…Castle is a former significant silver and cobalt producer…GBB is currently unchanged at 53 cents…Visible Gold Mines (VGD, TSX-V) is off half a penny at 40.5 cents…with a strong cash position ($8 million or 17 cents per share) and an aggressive game plan we expect Visible Gold to soon emerge as an exploration leader in northwestern Quebec where it’s currently drilling two properties and has others in the pipeline including the recently acquired past producing Joutel Property…VGD has cut a deal for a 50% interest in that project from Agnico-Eagle Mines (AEM, TSX)…from a technical standpoint, the stock has tremendous support at the 200-day moving average (SMA) of 40 cents while the 50-day SMA has just reversed to the upside which is a very positive development…
This picture was taken very close to the Cadillac Break Property now being drilled by Visible Gold Mines (VGD 60%, CQX 40%) which we recently visited - four holes are testing for an extension of Vantex Resources' Moriss Zone discovery. The sign points the way to two famous mining communities, Rouyn-Noranda (east) and Kirkland Lake (west).
White Tiger Mining (WTC, TSX-V) is down 9 cents to 74 cents…visuals released on hole #23 yesterday from its Marshall Lake Property in northern Ontario are very encouraging and the stock hit an all-time high of 98 cents yesterday…it had support at 80 cents and now the next major area of technical support is in the upper 60’s to 70 cents…Great Panther Silver (GPR, TSX) has has closed the bought-deal financing it announced March 24 at $4.20 per share, raising $24.15 million with the overallotment option exercised… GPR is currently down 18 cents at $3.80…
Hello Jon, This just isn’t profit taking is it? Now down below 2300 and huge volume for a current drop of over 2%. Japan upgraded the scale of the nuclear power plant disaster to equal Chernobyl. I’ll stay on the sidelines today and see what develops.
Comment by Andrew — April 12, 2011 @ 7:09 am
Hi guys, with RVC showing more great results,and about to be taken out, I would think that money would be pouring into area plays, like VGN. Especially so, the McKay and Associates are the same Investor Relations firm for both companies. Any idea what, if anything VGN will do with their stated plans to acquire an advanced stage gold property, ” somewhere in the Americas”? What about their promising Nevada properties? Will they drill their own Nechako property anytime soon, or just leave it to rot, like some of their other properties? VGN sure works at a snails pace.
John.
Comment by john — April 12, 2011 @ 7:23 am
This sure does not feel like profit taking, amazing how last friday it appeared we were going to break 1500.00 in gold and then on monday we sell off, what happened over the weekend for the big change? I saw nothing, this is just manipulation in both the gold and silver markets and no one does anything about it and never will, it is amazing that gold and silver have been able to rise as much as they have with all of the manipulation that takes place in these markets. This is so frustrating.
Comment by GREG H — April 12, 2011 @ 7:47 am
Greg – I feel your pain! We all do. I still think we could be in for a bigger pull back in PMs. I think that PMs will heat up again in August / September time frame. The debt ceiling will be hit mid summer and the slide in US bonds will accerlerate. That’s when the flight to PMs will increase JMHO. But its hard to predict anything with all the Fed / Banker Cartel manipulation these days. I remain long the PMs for now the trend is your friend and its very much intact. As Jessie Livermore said, be right and sit tight 🙂
Comment by Herb — April 12, 2011 @ 8:13 am
The TSX Gold Index is holding up quite well and the CDNX is hanging in very close to 2300 which is important support, so at this point IMHO I would say this is profit taking and a normal pullback………
Comment by Jon - BMR — April 12, 2011 @ 8:15 am
I suggest you consider a support band between 2275 and 2300 rather than just the 2300 level. This was the resistance band and is now support Remember. “Two days trading does not a trend make”. Sit tight and wait.
Comment by John - BMR — April 12, 2011 @ 8:19 am
Thx Jon and John..:)
Comment by Jeremy — April 12, 2011 @ 8:40 am
Seems market manipulation is something we will continue to live with. One week up blue sky potential, next week, gloom and doom end of the world…….I guess the trick if picking the right week and the right stock. Over sold, over bought, and it continues.
Comment by alec — April 12, 2011 @ 8:54 am
Time is 2.30pm EST. Since around 11.30am the CDNX has held steady at the support band of 2275 to 2300. The volume at this time is only 286 million shares. If this was a selloff I would expect a volume at this time to be about 400 million. I believe this down move is profit taking due to weakness in other markets and precious metal prices. We could see some firming up between here and the close.
Just wait it out, and all will be well.
Comment by John - BMR — April 12, 2011 @ 10:34 am
at 3:27 pm volume is 325 mil and cdnx is at 2302…. above the band.. this is real time as well…
Comment by Jeremy — April 12, 2011 @ 11:28 am
Thanks for your comments John, Jon and everyone else. We’ll see what tomorrow brings. Today’s volume was heading for in excess of 400 million but it slowed down. In the first hour from opening volume was approaching 100 million! I think there was some panic selling, not just profit taking, (this was across world markets) followed by restoration of reduced fears as the day progressed.
Comment by Andrew — April 12, 2011 @ 3:57 pm
I recommended V.INT here a week ago and people said it was overbought at 70 cents, it’s now at 92 the highest daily close ever and news is imminent. They’ve already turned down two buy-out offers. This will be the last chance to get in under $1.00.
Here’s some quick math and DD:
Microsoft made a 1.6% stake in Facebook in 2007 based on 50 million active users for $240 million.
100 / 1.6% = 62.5
62.5 X $240 million = $15 billion
$15 billion valuation for 50 million users for Facebook
Ortsbo has 11 million active users as of last week.
Just to make math easy we have 10 million active users or 1/5 of Facebook’s users.
Based on 10 million active users we should then have a valuation of 20% of 1/5 of Facebook which would be $15 billion X 0.2 or $3 billion.
We currently have 125 million shares oustanding, 125 million X 24 = $3 billion dollars.
Therefore if we were being given the same premium Facebook did when Microsoft took a stake in 2007 we would be valued today at $24.00 a share or more.
Do yourself a favor and do the DD now, once mobile rolls out this stock will be off to the races and $1 will seem cheap.
Comment by Taylor — April 12, 2011 @ 9:27 pm
Hi Jon,
what is your thoughts regarding Brigadier Gold which is exporing in Argentina.
Thanks in advance
Brgds
Comment by Peter — April 13, 2011 @ 12:31 am
BMR,
why are you guys keep deleting my posts? I just had a question regarding a company? 🙁
Comment by Peter — April 13, 2011 @ 4:58 am
Hi Peter. We’re not deleting your posts at all and we rarely if ever don’t approve a post unless it is offensive in some way. Posts sent late in the evening or fairly early in the morning may not get posted until about 5 or 6 am Pacific time when the system is first checked.
Comment by Terry - BMR — April 13, 2011 @ 5:29 am
Hi Terry,
can you please answear my earlier post regarding Brigadier Gold.
Thanks in advance
Brgds
Comment by Peyman — April 13, 2011 @ 5:50 am
I’m not that familiar with BRG, maybe some others who post here are…I will look into it as soon as I can.
Comment by Jon - BMR — April 13, 2011 @ 7:38 am
Thank you Jon. Much appreciated.
Brgds
Comment by Peter — April 13, 2011 @ 8:08 am