Gold is surging higher…as of 8 am Pacific, the yellow metal is up $9 an ounce at $1,543…Silver, however, is off 44 cents to $38.03…crude oil is down 96 cents at $101.74 while the U.S. Dollar Index is slightly negative at 74.44…physical demand for Gold continues to be strong in Asia while reports overnight said Russia and Mexico added to their reserves in April…Russia added 441,000 ounces while Mexico added 190,320 ounces, according to the International Monetary Fund…U.S. private-sector payroll growth slowed sharply in May, coming in far below expectations and falling to the lowest level in eight months, according to the ADP national employment report released this morning (the Labor Department’s non-farm payrolls report comes out Friday)…this, along with other economic data including weaker than expected U.S. manufacturing numbers, has put some downward pressure on the markets this morning…The ADP report showed private employers added only 38,000 jobs last month…factory growth eased in Europe and Asia in May, surveys showed today, feeding concerns that the world’s main economic engines are cooling fast as richer countries curtail orders….purchasing managers indexes (PMI), measuring the activities of thousands of factories across the world, sank to multi-month lows in China and Europe, where even regional pacesetters France and Germany showed fresh signs of sagging…the CDNX, which has declined the last two days, is off another 12 points at the moment to 2082…the Index climbed 150 points or 7.7% after touching a correction low of 1957 May 17…a minor pullback after that kind of a run would be a normal development, so investors shouldn’t be concerned if that were to occur…the 10 and 20-day moving averages are expected to provide support as we’ve seen after previous major corrections including a very similar one in 2005…the CDNX 10-day SMA is currently at 2060, a few points above the 20-day SMA…Currie Rose Resources (CUI, TSX-V) continues to hover around the 20-cent level…a little patience is the key here…technical indicators clearly show that CUI has started a new uptrend given last Friday’s volume surge and the strong move past 18 cents…the 50-day SMA has reversed to the upside and the 100-day SMA is expected to do the same within a week or so…the likelihood of a push through resistance at 22 cents will increase substantially in our view once news flow kicks in with the company’s exploration activities at its Sekenke and Mabale Hills Projects in Tanzania…while Mabale Hills has some very attractive targets, Sekenke is the project that could really light a fire under Currie Rose given its close proximity to two former high grade Gold producers and the structures that have already been identified through the prospecting stage…CUI is currently unchanged at 19.5 cents...Visible Gold Mines (VGD, TSX-V) is up a penny at 27 cents…VGD will be giving a presentation at the World Resource Investment Conference Sunday afternoon at the Vancouver Convention Centre…the company, which is already active on two projects, is expected to start exploration soon at its Joutel Property which is a joint venture with Agnico-Eagle Mines (VGD is the operator)…Joutel is a significant former producer and the company’s flagship property, so we see better days ahead for VGD which has been under pressure the last couple of months…Spanish Mountain Gold (SPA, TSX-V), which we’re quite bullish on as we mentioned again last week, is up 3 pennies at 71 cents…this is the first time the stock has been above 70 cents since April 14 when it got a recommendation from an analyst on CNBC…Gold Bullion Development (GBB, TSX-V) is unchanged at 47 cents…the stock ran into resistance Monday at 54 cents, its 100-day SMA, but the technical pattern continues to look very promising as John outlines below…
The reversal in GBB’s 50-day SMA is a very encouraging development…there are several fundamental factors that could contribute to a very strong summer for GBB…New Gold Inc. (NGD, TSX) has closed the acquisition of Richfield Ventures (RVC, TSX-V)…we added Richfield to the BMR model portfolio in December, 2009, when it was trading at $1.20…it closed at $9.03 yesterday for a total gain of 653%…we like New Gold a lot as well and the RVC deal appears to be an excellent fit for NGD…in the non-resource area, we continue to like iSign Media Solutions (ISD, TSX-V) which made a nice run to begin the week…it climbed as high as 66 cents yesterday before reversing…this has been a volatile stock but its chart gives us plenty of comfort…due to the breakout, as John shows below, the blue line which was resistance is now support…
ISD fell as low as 52 cents this morning and is currently unchanged at 55 cents after the first 90 minutes of trading today…
Well, it’s noon so I would imagine that Tony Rottenburg has gotten out of bed and headed down to the office.Must be hard for him to drive that Porsche with those heavy wooden shoes…LOL I noticed a few days ago that someone got excited when the MD&A came out, and the notice of the annual and special meeting, and ran the share price up to .22 on MASSIVE 22,000 volume..LOL but after they read it and were DISAPPOINTED they sold it back down to .185, but don’t worry it is still up 53% since BMR first mentioned it…LOL….. So, VGN management wants to fix their numeration for the up coming year?? What a bunch of NON-SENSE!! What has management accomplished in the past 12 months ( other than enrich themselves) to deserve FREE shares? Hey, Rottenburg and Pirie, how about EARNING those shares? Ever heard of WORK and CREATING share holder value?? These fools at VGN just sit around and collect their $ 12,500 per month for what? sticking their thumbs up their asses? Now, I am NOT advocating violence, BUT, If I were not a good Christian, I would definitely have thoughts about throwing them off the top floor balcony of the office tower. It is ALMOST the end of Q2 and we have yet to hear a PEEP about any new developments, that were PROMISED by management, and BMR sticks their necks out by stating MORE than once that ” sometime by Q2 VGN will have made higher highs than the previous share spike”. Nothing ” Explosive” happening here Jon. Looks like a few folks at BMR will be eating crud for making those statements. Mr.Rottenburg, if you’re reading this, take off the wooden shoes, and do ALL VGN share holders a HUGE service and RESIGN!!
Comment by john — June 1, 2011 @ 8:15 am
Hello Johnny
Not much good to gripe & lay blame now, it’s something you may regret later, as i have found out many
times. No doubt, BMR were also sidetracked by Rottenburg, but we will have our day, because it’s how the
game is played. Remember GREED will eventually take over their minds’ & they will find a way for us to
at least, get our cash back & move on.
R !
Bert
Comment by Bert Coish — June 1, 2011 @ 9:15 am
Looks like Tony Rottenburg MAY have pulled a fast one on Douglas McKay and Associates. I have heard rumors that DMA has BAILED on VGN. Curious that when the announcement was 1st made that BMR stated that ” you don’t hire a company like Douglas McKay and Associates if you have nothing to announce” HA! The SILENCE is almost DEAFENING!! So Mr.Rottenburg is happy to join the board of directors in a company based in Zimbabwe?? That HAS to show all the world just how DESPARATE he must be, I mean really? Zimbabwe? Let’s do business in a country where they run off all the productive farmers, INVADE these said farms then let the soil rot, raise inflation to the MILLION percentile and watch the people starve… Good move Mr.Rottenburg. How about ” since you have been trying since 2009 to ease your way out of SFF, that you concentrate on ALL the FANTASTIC properties you have in North America? Tony must have had his atlas upside down, because the ” AMERICAS” is NOT anywhere NEAR where he is planning his next move. ( zoo.h) Kind of fitting that the new company he joins has the call letters ZOO, because now he can go monkey around over there. Perhaps Tony is planning retiring in Zimbabwe with Bob Mugabe?? LOL What a pair they would make.
Comment by john — June 1, 2011 @ 9:41 am
Hey, Herb, are you going to attend the Special Metting of share holders? I must admit, I have read and re-read the booklet, and for the life of me, I cannot find a sinlge reason for the SPECIAL meeting. Anyone have any thoughts or comments? Someone REALLY must have needed beer money for this week, for selling a WHOPPING $ 550.00 worth of stock..
Comment by john — June 1, 2011 @ 9:53 am
Hello Jon, did you manage to determine anything on Pinetree’s and Sheldon’s financing with ABI? I’ve written to Renaud Hinse but had no response. There are just a couple of very large asks and bids stalling ABI. They are raised as they are traded – similar pattern to Mineralfields but they’ve gone so it’s likely another “insider” with the intention to reduce insider status? Thanks. 🙂
Comment by Andrew — June 1, 2011 @ 10:00 am
Great charts – thanks John, the explanations are clear and easy to understand. 🙂
Comment by Andrew — June 1, 2011 @ 10:05 am
Jon, I had a reply from Renaud Hinse but no information offered – not too impressed with the IR. I’ll wait a couple of days to see if you can determine anything and then sell ABI and move on to something that has more immediate potential such as CUI, GCU or GBB. I just don’t see the point of holding a stock that is in a strangle hold – may as well have my investment work for me and review ABI later – it doesn’t look like its a stock that’s going to breakout before Autumn anyway.
Comment by Andrew — June 1, 2011 @ 10:48 am
your call on SFF was very bad thank you i am off almost 60 percent,i will never lesson to BMR.
Comment by claudette — June 1, 2011 @ 11:27 am
Hello Claudette, It’s difficult to make money on the CDNX and worse when dealing with a Roodenburg/Pirie Company. Your down 60% and that feels bad but obviously you are holding for the long term. Everyone needs to have their own trading style but using stop losses and adjusting as the stock goes up will give some protection. Another way would be to trade SFF, for example when it went to .33 the other day you could have sold (all or a portion) and then when it dropped back you could have bought (the same number of shares or more to compound). It’s a long haul, unless one is lucky, but you may be able to recoup your loss and make a gain. Good luck! 🙂
Comment by Andrew — June 1, 2011 @ 12:10 pm
Claudette, you really should never be in a position where you are down 60% on one stock. With this speculative junior resource market, one wise strategy we’ve pointed out is to always cut your losses short…..that may mean selling on a loss of 10 to 20%…….we first uncovered Seafield at a nickel……those who jumped in at 30 to 35 cents last year thought we had made a bad call until of course it ran to 77 cents……..as Andrew pointed out, there are ways to trade these plays as well….
Comment by Jon - BMR — June 1, 2011 @ 12:32 pm
So, is Tony Rottenburg ” still going to make something happen”?? Looks like Doug. McKay has BAILED on tony too… Rottenburg is NOTHING but a 1 hit wonder, PERIOD! This is all my opinion ofcourse, but it looks like he is NOT interested in ANYTHING but collecting his 12,500 per month. He and his side kick, eat up 25% of all the revenues, so why would he want to endanger his little cash cow? NOTHING will ever happen as long as Rottenburg is the ceo.
Comment by john — June 1, 2011 @ 1:21 pm
I am confident that GBB will go beyond the resistance with 60+ cents to be more reasonable. Watch out the news from SD very very soon………. this stock can fly……
Comment by Theodore — June 1, 2011 @ 7:59 pm
Hi BMR,
I would suggest that you tone down bullishness a bit. Greece restructuring its debt will have a huge cascading impacts. Wording like “a minor pullback after that kind of a run would be a normal development, so investors shouldn’t be concerned if that were to occur” may not go well with the readers if the market does not turn around as anticipated.
I’m writing this in hopes for the better site.
I do my own DD and am mindful about reading opinions so I don’t have anything against you.
Comment by Bruce — June 1, 2011 @ 8:24 pm
You know, i have been reading this site for over a year now and i miss the days when comments where generally positive and informative. Lately, i have been reading a lot of negative comments, and quite frankly it’s annoying. If you do not like BMR’s analysis, you do not have to read. As with anything, you have to do your own DD.
I very much enjoy reading your daily musings on a daily basis! I have only entered into two BMR plays, made money on one and lost on the other (so far). The one i lost on so far is GBB, so i am not too worried and will definitely wait that one out.
I am a fairly new investor (its only been a year), but your site has really helped me understand alot. So too have some of the people posting informative comments. I enjoy this site because it isn’t full of the crap that is on other sites.
BMR…keep up the good work and thanks for your analysis and insight.
Comment by Mat — June 2, 2011 @ 4:32 am
Thanks, Bruce….we never said we were expecting the kind of powerful move experienced last year from July thru December, but all indications are that an important bottom was put in at 1957 and based on all the technical evidence we’ve been looking at, it makes sense to conclude that moving forward things look positive – at a time when there is a lot of gloom and doom…….plus, the overall bull market remains very much intact…….I love days like yesterday – when there’s fear, there’s opportunity……..it’s funny, we had a lot of comments like you just made in July of last year when we made a bold call then in the face of a lot of bearishness…..I guess that’s another good sign…….
Comment by Jon - BMR — June 2, 2011 @ 5:47 am
Hi all and bmr , i too must say that i like bmr for what it is now, maybe tone down bullishness on spiking stocks to avoid huge loss and mention stop loss when you do ..but all in all don’t change .. freedom of speech.
I would like to say one thing about gbb ‘s lack of drills, try to find a drill in rouyn -noranda now ?
Even with R. Gogen on the board !
All ldi’s drills are turning , they can’t even spare one to gbb, they’re looking to add 26 more 2011,so i guess some of them will be going to gbb…I too would rather see more drills , but it is impossible to have at the moment in Rouyn..so please tone down the lack of drills at Grenada …ldi ‘s very good q1 is are today ,up 15-20% but still under the radar..you guys should get in while it’s still time …
Comment by Dude — June 2, 2011 @ 7:59 am
Hello Mat
If i may & not to offend, i must state the same thing must apply, if a reader don’t
like certain poster’s comments, he or she do not have to read. One of our freedoms,
which i cherish, is freedom of speech. We must hear both sides & although i don’t
agree with nastiness, i welcome constructive criticism. The BMR group are big boys’
& if they feel some comments are inappropriate, they can handle themselves. I am
down on several BMR picks, but here i am, reading everything, hoping for something
positive on my downers. Good luck to us.
R !
Bert
Comment by Bert Coish — June 2, 2011 @ 7:01 am