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1. Gold has traded between $1,571 and $1,585 so far today…as of 7:00 am Pacific the yellow metal is up $9 an ounce at $1,582 as it closes January on a strong note…Silver has climbed 9 cents to $17.90…Copper, in extreme oversold conditions, is off another 3 pennies at $2.53…long-term uptrend support, which held during the depths of the bear market in 2015, is in the mid-$2.40’s…Nickel has retreated 4 cents to $5.69 while Zinc is steady at $1.01…Crude Oil has fallen another 29 cents to $51.85 while the U.S. Dollar Index is off one-quarter of a point to 97.61…the United Kingdom leaves the European Union today for a potentially better future under Brexit, the most significant change to its place in the world since the loss of empire and a blow to 70 years of efforts to forge European unity from the ruins of war…an hour before midnight the country will officially leave the dysfunctional club it joined in 1973, moving into a transition period that preserves membership in all but name until the end of this year…“This is the moment when the dawn breaks and the curtain goes up on a new act,” Prime Minister Boris Johnson will say in a television address, though he has given few clues about his post-Brexit plans beyond inspirational words…we should be much more concerned about the future of Canada, how we can reduce regulation, cut taxes, get our resources to market, and create a more competitive economy that builds lasting prosperity…and here’s yet another issue that has come up this week…the Broadcasting and Telecommunications Legislative Review Panel’s report tabled Wednesday advocates for a sweeping series of interventions that would make all on-line media in Canada, in any language, subject to government regulation…indeed, if you transmit, for commercial purposes, words, video or voice through the Internet, text messages, fax or phone line, you would do so only with the permission of a federal agency…the state will determine what constitute’s “trusted” news when we have already have a state-sponsored broadcast network that pushes out Fake News…Canadians need to reject the increasing level of federal government intervention across all sectors of the economy…
2. Caterpillar (CAT, NYSE), considered a bellwether for the global economy, reported a revenue miss in the 4th quarter, citing “global economic uncertainty”…the industrial giant’s quarterly earnings came in at $2.65 per share adjusted, compared with an estimate of $2.37 in a Refinitiv survey of analysts…however, revenue fell 8% year-over-year to $13.144 billion, below the consensus estimate of $13,412 billion…Chairman and CEO Jim Umpleby noted persisting risks around the world that weighed on the company’s revenue…
3. Wall Street wisely never bought into the Trump impeachment scam, and this “Schiff Show” will thankfully come to end this weekend…Republican Sen. Lamar Alexander of Tennessee will oppose calling more witnesses in President Trump’s impeachment trial, all but dashing Democratic efforts to hear more testimony and pushing the Senate toward a vote to acquit Trump within the next few days…California House Democrat Adam Schiff led the impeachment circus and of course he was also one of the lead architects and propagandists behind the debunked “Russian Collusion” hoax – the biggest disinformation campaign waged against a sitting President in American history…Senator Alexander stated last night, “The framers believed that there should never, ever be a partisan impeachment. That is why the Constitution requires a 2/3 vote of the Senate for conviction. Yet not one House Republican voted for these articles. If this shallow, hurried and wholly partisan impeachment were to succeed, it would rip the country apart, pouring gasoline on the fire of cultural divisions that already exist. It would create the weapon of perpetual impeachment to be used against future Presidents whenever the House of Representatives is of a different political party. Our founding documents provide for duly elected presidents who serve with ‘the consent of the governed,’ not at the pleasure of the United States Congress. Let the people decide”…
4. The World Health Organization has declared a “global health emergency” with the viral novel coronavirus, named 2019-nCoV, due to “weaker health systems” of other countries” – not for China’s handling of the outbreak…“Let me be clear, this declaration is not a vote of no confidence in China,” stated WHO director Tedros Ghebreyesus…“Our greatest concern is the potential for the virus to spread to countries with weaker health systems”, as if the Communist government’s health system is a model for the world…the number of cases outside China remains relatively small, with 98 cases in 18 countries, including 8 cases of human-to-human transmission in Germany, Japan, Vietnam and the United States…meanwhile, as the mainstream media sensationalizes the coronavirus, impacting markets, there’s another virus that has infected 15 million Americans across the country and killed more than 8,200 people this season alone…it’s not a new pandemic – it’s influenza…the 2019–2020 flu season is projected to be one of the worst in a decade, according to the National Institute of Allergy and Infectious Diseases…in the 2019–2020 season so far, 15 million people in the U.S. have gotten the flu and 8,200 people have died from it, including at least 54 children…flu activity has been elevated for 11 weeks straight, the Centers for Disease Control (CDC) reported, and will likely continue for the next several weeks…the CDC predicts at least 12,000 people will die from the flu in the U.S. every year…
5. Amazon (AMZN, NASDAQ) has pushed above the $1 trillion valuation after reporting yesterday that Q4 sales were up 21% to $87.4 billion, leading to blowout earnings…the stock opened at $2,051 a share this morning…in crossing the $1 trillion threshold, Amazon joins Apple, Alphabet and Microsoft, all of which have hit that key milestone…Amazon reached a $1 trillion market cap for the first time in September 2018…the company’s 4th quarter results proved its investments in 1-day shipping are paying off, as it pushed consumers to purchase more products during the holiday shopping season…Amazon posted Q4 earnings of $6.47 per share, which crushed estimates of $4.03 per share…Amazon also gave upbeat guidance for Q1 and provided updates figures on Prime subscribers, saying it now counts more than 150 million paying members in the program…
6. The Dow has fallen 251 points through the first 30 minutes of trading…the last time Tesla (TSLA, NASDAQ) shareholders had a month like this, the electric vehicle maker was delivering fewer than 5,000 cars a quarter…now, the number is more than 20 times higher…as January comes to a close, Tesla shares are up 53% for the month (through yesterday), the best month since May 2013 when the stock surged 81%…in Tesla’s 10 years as a public company, the only other month with a bigger gain was a 62% jump in November 2010, 5 months after the IPO…in Toronto, the TSX has lost 101 points while the Venture is up 3 points at 578…despite a sell-off in base metals, the Venture is holding up well and has a chance to eke out a small gain for January…high-grade Gold and high-grade Silver plays will continue to be in favor…Osprey Gold (OS, TSX-V) is this morning’s early volume leader, up half a penny at 8.5 cents after yesterday’s strong gain following news of a 1-m intercept grading 517 g/t Au at its Goldenville Property in Nova Scotia…MegumaGold (NSAU, CSE), which holds 19.9% of OS, is up a penny-and-a-half at 15 cents after announcing that it has nearly doubled its land position in the Goldenville district…keep an eye on this company about to make its debut on the CSE – Sixth Wave Innovations…Sixth Wave has just closed the final tranche of a $13.9 million financing package at 75 cents a share…Sixth Wave is focused on Gold extraction and cannabis extraction…it also currently has patents and products that address mining and environmental cleanup applications as well as other life sciences applications…Antibe Therapeutics (ATE, TSX-V) has broken out above measured Fib. resistance at 50 cents on its 5-year weekly chart…it’s off a penny at 58 cents after a strong session yesterday…
7. Benchmark Metals (BNCH, TSX-V) has extended the Cliff Creek resource area at its Lawyers Property in north-central B.C. to more than 1 km along strike…drill hole 19CCDD010 intersected 1.2 g/t Au and 22.2 g/t Ag across 102 m core length, including 6.3 g/t Au and 60.4 g/t over 8 m…CEO John Williamson commented: “The Cliff Creek South zone is providing the grade, consistency, and continuity of Gold and Silver mineralization that we have also recognized at the main Cliff Creek zone. This new zone will be a focus of 2020 expansion and definition drilling”…the Cliff Creek South (CCS) zone lies approximately 1 km south of the Cliff Creek resource area, within the same structural corridor that is coincident with a major northwest-trending magnetic anomaly…BNCH is up 4 cents at 43 cents through the first 30 minutes of trading…
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Jon–While we wait for the coming news releases from CCW, could you comment on any Platinum/Palladium “investments” you currently favor with brief explanations. thanks
Comment by BILL — January 31, 2020 @ 9:22 am
We’ve highlighted some of those recently, Bill, but just to quickly review a few situations – Canadian Palladium (BULL, CSE) is looking strong, just completed a PP with E.S. and will be drilling in February ahead of PDAC…a “sleeper” we like with a strong chart at the moment is Transition Metals (XTM, TSX-V) which holds a 25% free-carried interest in Impala Canada’s advanced Sunday Lake Project where drilling is happening right now…they’re drilling into the heart of an anomaly that returned some excellent PGE results in 2018…low market cap ($8.5 million) for XTM, no reason this can’t turn into an easy double…they hold a few dozen projects, several of very high merit, including an interest in Janice Lake in Saskatchewan which Rio Tinto is drilling this winter…Group Ten Metals (PGE, TSX-V) has an interesting project in Montana and has perked up (support at the 20-day SMA) and of course Palladium One (PDM, TSX-V) has had some success in the market the last couple of months…has corrected but will recover no doubt…of course the Palladium price is key to all of these plays, so new highs in Palladium this quarter would be very helpful after this healthy retreat…
Comment by Jon - BMR — January 31, 2020 @ 9:43 am
Jon,
Do you always maintain cash in your trading account, or will you deplete it and buy a stock if something too good comes up?
Comment by David — January 31, 2020 @ 12:20 pm
CCW – really? Pretty disappointing finish to the month. Still waiting for the catalyst to take us to the next level. Sure hasn’t happened “sooner than I think” !! Sure hope Frank doesn’t revert back to his old self!
Comment by Phil — January 31, 2020 @ 1:06 pm
That’s a golden rule, David, that I try hard to adhere to, or at the very least have a really liquid instrument you can easily turn to for instant cash when something unusual suddenly pops up…
Comment by Jon - BMR — January 31, 2020 @ 1:39 pm
Is there a percentage of cash, minimum and maximum you like to keep at all times and would you be willing to share what that is? This could be for Daniel as well.
Comment by David — January 31, 2020 @ 3:09 pm
Hardly, Phil…it was a great month for CCW, actually, with a 5% share price gain (its 5th consecutive monthly advance) vs. a slight loss for the Venture…even better, we now know enough about the Castle East discovery to make the determination that the super rich zone of massive native Silver is situated within a broad productive horizon that carries high-grade Silver from the top of the Nipissing contact with the Archean to the bottom…we were correct in our call on CCW when it was trading at less than half its current price, and we’ll be correct on this call as well – CCW is the best Silver play in Canada right now because that super rich zone featuring a vein that’s carrying an amazing 1,500 to 2,000 oz/ton will more than pay for an exploration ramp to extract it…this in turn will drive cash flow into CCW that’ll make your head spin, and open up Castle East for additional new Silver (and Gold) discoveries…it’s the same strategy that allowed Hall of Famer Paul Penna to build Agnico Eagle (and partly through the Castle)…High-Grade Halliday won’t miss a beat this coming week…there were 10 news releases during December-January, and it’s safe to assume we’ll see a similar pace in February leading into PDAC…
Comment by Jon - BMR — February 2, 2020 @ 5:56 am
Hi Jon. Following your reply on Phil’s comment, you were correct on your call when CCW was trading at less than half its current price, but remember summer 2018…that’s why I’m a little on the edge right now. Of course the fundamentals are much stronger in 2020, but sometimes the trading price will not follow? So like Phil, I’m hoping to see the next level soon. I follow your lead.
Comment by Sylvain — February 2, 2020 @ 11:36 am
Keep in mind, Sylvain, the Venture plummeted 30% from the summer of 2018 to year-end, and of course Cobalt prices got whacked big-time as well…combined with a warrant overhang, this precipitated a substantial correction within the context of a continuing long-term bull cycle in the stock (annual gains for each year of CCW’s existence)…the situation now is very different with a game-changing new discovery, a major infrastructure acquisition for pennies on the dollar, bullish Silver and Gold markets, and new faces that provide important new energy to the play (this is what GGI lacks at the moment, for example)…if improving fundamentals come with high energy and excitement, that’s what helps build and sustain the share price…do u see another Silver opportunity like this at the moment in such a great jurisdiction as Ontario?…
Comment by Jon - BMR — February 2, 2020 @ 12:16 pm
Big drill hole for Moon, announced by platina in Australia this morning …Jon any thoughts on this one?
Comment by Mark — February 2, 2020 @ 3:15 pm