Gold has traded between $1,704 and $1,723 overnight…as of 6:00 am Pacific, the yellow metal is off $5 an ounce at $1,713…silver is 61 cents lower at $34.90…Copper is off a penny at $3.89…Crude Oil is down 77 cents at $108.77 a barrel while the U.S. Dollar Index is up more than half a point at 79.32…
We`re off to Toronto and PDAC this morning, so hence an abbreviated edition of Morning Musings but we have plenty in store for Monday on several fronts…
Stock index futures are pointing toward a slightly negative open on Wall Street…Asian markets did well today with China`s Shanghai Index gaining 35 points or 1.43% to close at 2461…
John has technical updates on three situations this morning – Cap-Ev Ventures (CEV, TSX-V), Wildcat Silver (WS, TSX) and Corvus Gold (KOR, TSX)…
Cap-Ex Ventures (CEV, TSX-V)
CEV has good strength at the moment and closed up 3 pennies yesterday at $1.15. Below is John`s chart update on this exciting iron ore play.
Wildcat Silver (WS, TSX)
It has been a solid week so far for Wildcat Silver – up 25 cents to $2.16…the stock has now broken above a pennant as John shows in the chart below.
Corvus Gold (KOR, TSX)
Corvus came out with more encouraging news this week on its North Bullfrog Project in Nevada, and the stock is up about 15% for the week after closing yesterday at 95 cents. KOR has broken through a resistance band, and the next major resistance is around the $1.20 level as John shows below in this 2.5-year weekly chart update. Note the change in buying pressure that started in late January.
Note: John, Jon and Terry do not hold positions in CEV, WS or KOR.
BMR
Have a good trip.
Comment by Bert — March 2, 2012 @ 6:23 am
BMR – the Rainbow Resources‘ (RBW, TSX-V) chart is looking phenomenal
Bert – 95% overbought. Although it could trade in o/b territory for a
period of time, we shall see. Enjoy your trip anyway BMR.
Comment by Bert — March 2, 2012 @ 6:28 am
CEV – News out — Cap-Ex Strengthens Management Team
Comment by Bert — March 2, 2012 @ 6:32 am
Extremely high risk play I came across, pharmaceutical company on U.S. boards trading at $1.20 per share. Under $60 M market capitalization.. I usually don’t look at these companies nor U.S. side but I noticed some news that I couldn’t ignore on the stock and took a position.
I just want to reiterate that this is a very high-risk play. I took a position of 1600 shares ($2,000) and that’s all I will pick up.
I added @ $1.22 today given the strength but the news coming has me interested…
It sounds far too good to be true and this is why I’m exercising extreme caution in this play by putting on a minimal and using stops @ $1.00 per share.
The news that’s coming which interested me is special one-time 1 for 1 share distribution scheduled for March 7, 2012. So in 1 week any shares bought in GALE will be matched with 1 share of the new company.
Worst case scenario I see unfolding here is the stock doesn’t do anything, it opens up @
.60 cents since there are no bids whatsoever for
.70 cents below the share price and you get free shares but lost 5% on your initia investment. Best case scenario is the stock runs to $1.60 – $1.70 on anticipation or does nothing and you get free shares and the price drops to $1 or slightly lower still giving you a gain on initial investment.
It sounds fishy and far too good to be true but as long as I get a fill on my stop above 65 cents… I’m assuming there is 2000 shares on the bid between $1.00 and 65 cents, then I’m still up on the investment in less than a week.
Upside: 100%+ depending on performance of GALE after spin-off as well as new stock
Downside: 40-50% if both stocks get sold off hard in the morning but stops I feel will protect the downside… just worth a look if you’re interested but once again I warn to be cautious and don’t ask why the stock went down if it did. I rarely see 1/1 share distribution so figured I’d take a small lottery ticket to see how it works out
Comment by Don — March 2, 2012 @ 6:34 am
Bert, I’ll let John answer this one with Monday’s chart but I’m not sure if you’re looking at the same technicals as I am….
Comment by Jon - BMR — March 2, 2012 @ 6:36 am
Lots of volume in VGD this morning. Is it coming out of hibernation ? R !
Comment by Bert — March 2, 2012 @ 6:38 am
Jon
I am not trying to compete with your analysis, you use charts,
i use tea leaves. I would therefore suggest you board that plane
& leave your site to us. R !
Comment by Bert — March 2, 2012 @ 6:43 am
RBW – I have a current RSI of 71.5 on daily 6 month chart, so lots of room to move up before being overbought? Anyway, we’ll see, all I know is the chart and SP looks good to me! 🙂
Comment by Andrew — March 2, 2012 @ 6:52 am
Don – thanks for posting your comments on GALE:US. I had a peek and it’s in the 1.30s now. Also scanned through the press releases – looks interesting just wish I understood it more.
Comment by Andrew — March 2, 2012 @ 6:56 am
Andrew
Anything over 70 is overbought, but i agree it still has room.
We shall see. R !
Comment by Bert — March 2, 2012 @ 6:59 am
Yes, and anything under 30 is oversold – but it’s an art not a science and if I strictly adhered to >70 being overbought I wouldn’t make much money! I look at the other indicators for an overall picture and to me it looks pretty good! The way it trades with ‘control’ is encouraging. Any weakness could be an opportunity to purchase as I’m hoping RBW will be trading in the .30s next week. 🙂
Comment by Andrew — March 2, 2012 @ 7:12 am
Bert – ur priceless my man!!:) thx for the morning smile… so how are you gonna change the site:) ????? too funny:)
Comment by Jeremy — March 2, 2012 @ 7:20 am
Andrew
So do i look at all other indicators, in particular the slow
stochastic & williams % R when determining overbought conditions.
Although it takes awhile, but those indicators are as good as
any. As i mentioned, we shall see, but i do agree news, or
something positive to focus the market in on our stock will
do it. We do have a good chance of it going over 30 next week,
mainly because of the pdac , BMR’s report and/or promised news.
I don’t mind eating my words for an increase in any stock i own. R !
Comment by Bert — March 2, 2012 @ 7:25 am
GALE:US flying, nice one, Don!
Comment by Andrew — March 2, 2012 @ 7:50 am
BMR – Hi –
I saw that you have an intresting company CMC Metals (CMB, TSX-V) on your watchlist. But I have never heard you taking about it. Can you tell us something about that company and why its on the list?
Kind regards
Bosse
Comment by Bosse — March 2, 2012 @ 8:27 am
Rainbow Resources Party on Tuesday evening – hope they have something new to celebrate and wish I could attend! 🙂
Comment by Andrew — March 2, 2012 @ 10:39 am
what do you mean Andrew? wich party? at pdac?
Comment by Martin — March 2, 2012 @ 10:47 am
Andrew
If RBW is having a party, maybe we will get some buying then.
We are holding, so that’s good. Not that i thought it would
retreat that much, but being in overbought territory, the
market may be reluctant to pay anymore than it thinks its
worth, at this time.. We are doing well considering no
drilling yet & all we have to go on is historical data,
which has not been fully disseminated as yet. I give BMR
credit for the price being where it is today. Good luck !
Comment by Bert — March 2, 2012 @ 10:51 am
Oui, Martin, PDAC Party by invitation only at Mercatto on Bay, 330 Bay Street. Voulez vous attendez?
Comment by Andrew — March 2, 2012 @ 11:01 am
as of Feb 29 list of exhibitors Rainbow is not listed
do you know their booth number
thanks
Comment by ChartTrader — March 2, 2012 @ 11:10 am
Chart Trader – I don’t know that RBW has a booth (they should!). Maybe message IR?
Comment by Andrew — March 2, 2012 @ 11:30 am
Does somebody heard of or know anything about PJX Resources?
Comment by Kalkan - Sweden — March 2, 2012 @ 11:44 am
If only i can get Andrew to smile
DEB’S DITTY:
Irish priest was transferred to Texas. Father O’Malley rose from his bed
one morning. It was a fine spring day in his new Texas mission parish. He
walked to the window of his bedroom to get a deep breath of the beautiful
day outside. He then noticed there was a jackass lying dead in the middle of
his front lawn.
He promptly called the local police station. The conversation went like this:
“Good morning. This is Sergeant Jones. How might I help you?”
“And the best of the day te yerself. This is Father O’Malley at St. Ann’s
Catholic Church. There’s a jackass lying dead in me front lawn and would ye
be so kind as to send a couple o’yer lads to take care of the matter?”
Sergeant Jones, considering himself to be quite a wit, replied with a smirk,
“Well now Father, it was always my impression that you people took care of
the last rites!”
There was dead silence on the line for a long moment……. Father O’Malley
then replied: “Aye, ’tis certainly true; but we are also obliged to notify the
next of kin first, which is the reason for my call.”
Comment by Bert — March 2, 2012 @ 1:42 pm
My forgetter’s getting better,
But my rememberer is broke
To you that may seem funny
But, to me, that is no joke
Or when I’m ‘here’ I’m wondering
If I really should be ‘there’
And, when I try to think it through,
I haven’t got a prayer!
Oft times I walk into a room,
Say ‘what am I here for?’
I wrack my brain, but all in vain!
A zero, is my score.
At times I put something away
Where it is safe, but, Gee!
The person it is safest from
Is, generally, me!
When shopping I may see someone,
Say ‘Hi’ and have a chat,
Then, when the person walks away
I ask myself, ‘who the hell was that?
Yes, my forgetter’s getting better
While my rememberer is broke,
And it’s driving me plumb crazy
And that isn’t any joke.
CAN YOU RELATE???
Comment by Bert — March 2, 2012 @ 1:45 pm
Martin – this may interest you if you haven’t already seen it:
GoldQuest Mining Corp (TSX VENTURE:GQC) Closes Oversubscribed CAN$660,000 Private Placement
A good financing (no flow-through) and no finder’s fee.
AGE took a knock on news of the deep hole being abandoned – but not really news; I assumed that would be the outcome from the previous update. I’ll see what the reaction is like on Monday am – may switch, temporarily for RBW. Presumably RBW will have news next week. IR said expect news last week and this week and we got nothing. 🙂 So, what’s new!
If you go to the RBW party get me a chip off the Galena block for a souvenir! 🙂 Passe une bonne fin de semaine.
Comment by Andrew — March 2, 2012 @ 5:50 pm
Andrew I have sold GQC, and i am fully invested in RBW at the moment, from the time they start drilling to the news the time frame is usually 2 mounths. fo feb 23 to april 23, time to get back in before anything append.
Also sod BAT with a lost of 3%.
I see a powerfull move in RBW judging by the chart.
Bonne fin de semaine!
Also there is a new company that reasonabletrading on the venture, Silver Mountain Mines SMM.V same area.
Trading at about 4 millions market cap, their projets doesn’t compare at all to those of RBW.
Comment by Martin — March 2, 2012 @ 6:18 pm
Read “Also there is a new company that started trading on the venture, Silver Mountain Mines SMM.V same area”
Comment by Martin — March 2, 2012 @ 6:21 pm
Martin – thanks for the info, I’ll check out SMM. I like the RBW chart too. Sorry about BAT – it was that or GUY and GUY was the better bet in the short term. You’ll make up the 3% in RBW on Monday! GQC could be a long haul – that’s the problem with AGE but it was looking really good. No point in parking money in a stock that doesn’t move significantly or is thinly traded, so that’s why I may switch to RBW on Monday. Then go back to AGE after some profit taking and before they are bought out. 🙂
Comment by Andrew — March 2, 2012 @ 6:31 pm
Andrew
I’m getting a feeling that i may have offended you in some way along the way. I hope not,
but if i did, i should be told. Thanks in advance.
Bert
Comment by Bert — March 2, 2012 @ 6:39 pm
You will have plenty of time to get back in AGE Andrew.
Comment by Martin — March 2, 2012 @ 7:22 pm
Hi BMR and all the others at this forum.
What’s your thoughts on vgd at the moment. Good volume last trading day. Is it possible that vgd finally has flattened out?
Comment by Kalkan — March 3, 2012 @ 10:48 am
Hi Kallan, There could be a rally to 0.145$. For myself i have lost confidence in management. They are wealth distroyers. They doesn’t care about investors as they hide everything from them. For instance, if you are going to invest in a 10 cent gold stock, GQC offer much more upside value, high grade open pit prospect within a terrific land package.IMHO
Gold luck
Comment by Martin — March 3, 2012 @ 1:07 pm
gold luck lol, i mean good luck
Comment by Martin — March 3, 2012 @ 1:08 pm
Hi Martin,
Yeah I have been checking both out. I understand your thoughts regarding vgd. But on the other hand I think we can see a jump like we did in cqx recently if some good news will be released. I’m in rbw and will be there for a while before I move on… Lol Gold luck wasn’t that bad 🙂
Comment by Kalkan - Sweden — March 3, 2012 @ 1:40 pm
Hey guys, posted a question re SD Sidon Resources inc on Feb 27th 2012, still no reply, anyone there know of what’s happening with this Co.? are they going to do anything or just close dwn?
Comment by nikolay — March 3, 2012 @ 7:37 pm
re:SD
They have approved a reverse stock split of 30 to 1 which went through on February 15th. They are changing their name from sidon resources to cameo resources.
Their new trading symbol is CRU.
Thats all i know.
Comment by Ed — March 3, 2012 @ 8:25 pm
To all RBWrs…take a look at what DV did last week on 20m of 11.3oz/t. Plus 12c in 2 days. 80million shares outstanding. Cant wait to see Rainbow’s numbers and how the market will react…
Comment by db — March 4, 2012 @ 7:19 am
Db
I notice it hasn’t been trading that long, thus strange it has that many shares o/s.. Except for the
gap up Friday, an ugly looking chart, but your point is noticed as to what can happen in a hurry.
Bert
Comment by Bert — March 4, 2012 @ 7:31 am
Hello Kalkan – I would have to agree with Martin on VGD. If Mineralfields are an insider I generally stay away from the stock. The last exploration update was 20th January with the balance (17%) of the assays still due. They had found nothing after the first hole at Wasa Creek – now they think the trend across cadillac is in another direction (and they are supposed to have the best geologist). Why didn’t they test this when their assays weren’t hitting gold? There financing is poor and their drill programme significantly reduced from last year. With nearly 7 weeks having passed without further assays, either they are going to release good news during PDAC or they have nothing.
CQX – was it not confirmation of a historical hole a la SFF 2010! 🙂
With Saint Patrick’s Day coming up, I think the Leprechauns have fled Joutel and Cadillac and heading for BC to be at the Rainbow so that they can fill their pot with silver and gold – that’s assuming that the Moose Mountain report will be favourable, if not those little Leprechauns will be left holding a crock of thit (Leprecahuns have a lisp)! 🙂
Comment by Andrew — March 4, 2012 @ 10:33 am
Bert – Not sure if you mean me or Andrew M.? You’ve not offended me and I can’t imagine that you would. Messaging is not a great way to communicate but it’s better than nothing. Often the recipient interprets the message incorrectly, so emoticons can help. <3 🙂
Comment by Andrew — March 4, 2012 @ 10:37 am
Andrew
I may be different, but with time, you may get to understand me more, but one thing
is for certain, that is, i will never intentionally hurt anyone. Anyway, that will
do it for now, i am reborn again, onward, forward BMR followers, in particular,
RBW. R !
Comment by Bert — March 4, 2012 @ 11:36 am