Gold has traded between $1,222 and $1,236 so far today…as of 9:30 am Pacific, bullion is up $9 an ounce at $1,231…Silver has added 55 cents to $17.39…Copper is flat at $2.60…Crude Oil has gained $1.50 a barrel to $52.72 while the U.S. Dollar Index is relatively unchanged at 94.13…
Holdings in the SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, fell 0.23% to 771.51 tonnes yesterday, but that’s up considerably for the year…meanwhile, Chinese buying remained stable ahead of the Lunar New Year holiday next week..premiums on the Shanghai Gold Exchange traded unchanged today at $3-$4 an ounce…
Mineweb’s (www.mineweb.com) ace writer Lawrence Williams, who has an exceptional understanding of demand/supply trends in Gold, had these important comments this morning on yesterday’s World Gold Council (WGC) Global Demand Trends report…
“The latest report from the WGC does indeed suggest that total ‘consumer’ demand for the precious metal in India last year did exceed that of China after falling behind in the previous year. But the report is careful not to actually state that India’s total Gold demand exceeded China’s due to the substantial amount of Gold flowing into China’s banks, which falls outside the GFMS calculated ‘consumer demand’ parameters. At last we have an explanation for the huge disparity between the apparent Gold demand figures in the GFMS reports, which the WGC utilizes, and the continuing huge levels of Chinese demand suggested by the reported withdrawals from the Shanghai Gold Exchange (SGE).”
ING Bank senior strategist Hamza Khan summed up Gold’s current state quite accurately in our view in comments to Reuters: “We are in a holding pattern between $1,150 and $1,300 just because there isn’t enough clarity around when the Fed is going to be hiking interest rates and what is going to be happening with Greece. So until we see what is going to happen in the long term, Gold is likely to remain in this range.”
Oil Update
Wishful thinking, self-serving comments or insightful analysis?…Royal Dutch Shell PLC Chief Executive Ben van Beurden sees Oil demand outpacing supply growth this year, and is warning that supply may decline if Oil prices stay low…he said said a rapid recovery in Oil prices could occur “if projects are postponed or even canceled. This would lead to less new supply – not so much now, but in 2 or 3 years. Combined with economic growth, the market could tighten quickly in this scenario.”
Today’s Equity Markets
Asia
China’s Shanghai Composite, on a 5-session winning streak, closed up 1% overnight while Japan’s Nikkei average fell slightly…
Europe
European stock markets finished in positive territory today, ending a volatile week at 7-year highs…there were signs of stabilization in the euro zone economy today and renewed hopes that Greece would reach a deal with its creditors…
Barclays says it’s uncertain if a Greek exit from the euro zone would create financial instability across the region, but the biggest contagion risk would be Spain. “While the direct exposures of other member states to Greece appear manageable, a Greek exit could leave the door open for speculation that other EMU members may follow, especially where the election of new governments hostile to the current policy approach appears likely,” they stated.
A strong pickup in Germany led an acceleration in euro zone economic growth in the final 3 months of 2014, but large parts of the currency area were either close to stagnation or still contracting…
The EU statistics agency said today that the combined GDP of the 18 countries that then shared the euro was 0.3% higher in the fourth quarter than in the third…that was a stronger outcome than the 0.2% rate forecast by economists who were surveyed by The Wall Street Journal last week…on an annualized basis, the economy grew by 1.4%, a much weaker performance than the 2.6% rate of growth recorded by the U.S. during the same period…
North America
The Dow is up 29 points through the first 3 hours of trading today…the TSX has added 83 points while the Venture is up 2 points at 694…Canadian markets are closed Monday for Family Day in most of the country…
U.S. import prices recorded their biggest drop in 6 years in January as prices fell broadly, a sign that domestic inflation pressures could remain muted for a while…the Labor Department said today that import prices tumbled 2.8% last month…this was somewhat less than expected but nonetheless represented the largest decline since December 2008…it was the seventh straight month of declines in import prices…
Nasdaq Updated Chart
All indications are that the Nasdaq, as John speculated earlier, is on its way to a new all-time high, especially after a breakout out this month above chart resistance at 4800 (a series of Fib. resistance levels have also been overcome)…the retail market might wake up after news headlines of the Nasdaq recovering all of its losses after the 1999 high of just over 5000…
Venture High-Lows – Long-Term Chart
Below is an interesting chart that provides a comparison between the value of the Venture spanning the last 13 years and new 52-week highs minus new lows (referred to as CDHL) in individual stocks…
“The way I see it,” says John, “since 2008, all but 2 months (outliers) the CDHL low has been between 0 and 50. When it exceeds 50, the Venture is in trouble. Interesting in that it does not occur in 2 consecutive months. Notice that the CDHL led led the Venture in every major trend change, including the one right now.”
In other words, what this chart seems to confirm is that the current uptrend remains firmly intact…the Venture needs a catalyst, however – a new discovery, a jump in commodity prices – to pick up steam…Venture new highs started to gain momentum after the market’s 2013 low…there are early signs that this is occurring again following a record low in the Index reached in December…
Cannabix Technologies Inc. (BLO, CSE, BLOZF, OTC) Update
What a volatile week for Cannabix Technologies (BLO, CSE, BLOZF, OTC) which broke out massively to a new high of 77 cents on the CSE before retracing sharply to an intra-day low of 34 cents yesterday…that was a healthy, necessary pullback given how far this moved in such a short period of time…
Below is a an updated 5-month daily chart in U.S. dollars (Stockcharts.com does not yet provide charts for CSE-listed stocks)…
BLO found support just above its 2014 high on yesterday’s pullback, and RSI(2) – which was in extreme overbought territory – substantially cleansed itself by falling to 32% yesterday…looking good…
HGD (Gold Index Reverse ETF) Updated Chart
The HGD, which is essentially the TSX Gold Index in reverse (double short ETF), has started to stir this week, showing signs of a possible near-term modest spike higher which would be consistent with the current consolidation in the TSX Gold Index after a 50% run-up between early November and the beginning of this month…
The HGD has pushed above an RSI(14) downtrend line…important chart resistance is at $10…if a confirmed breakout were to occur above the $10 level, this would suggest the TSX Gold Index may test 1 of 3 Fib. support levels that John outlined in Wednesday’s chart – 175, 166 or 158…keep in mind, however, that the Gold Index appears to be in the early stages of a major new uptrend, so any pullback shouldn’t frighten anyone…
Cadillac Trend Update
We are approaching a return visit to northwest Quebec and the Cadillac Trend, our first in several years…there are some highly interesting situations there, not the least of which is a major resurgence we see unfolding in Gold Bullion Development Corp. (GBB, TSX-V) which is focusing on expanding its LONG Bars Zone resource (major upside exploration potential still) and preparing for a high-grade rolling production start (many permits have been received, just 1 remains outstanding)…
Updates on 2 other situations…
Integra Gold Corp. (ICG, TSX-V)
Integra Gold Corp. (ICG, TSX-V) continues to make significant progress with its high-grade Lamaque Gold Project in Val-d’Or…an updated resource estimate was released earlier this week and the market responded well…
In John’s most recent ICG chart in December, he pointed out how the stock had managed to hold important support in the 15-17 cent range and was likely due for a new uptrend after bottoming at 14 cents in early November…
ICG has performed exceptionally well so far this year and is now grappling with 1 more Fib. resistance level at 30 cents, after clearing 3 earlier levels…this remains an important play to keep a close eye on through the balance of 2015…
Falco Resources Ltd. (FPC, TSX-V)
We’re bullish about what may unfold here – Falco Resources (FPC, TSX-V) has commenced an initial drill program on the Horne 5 Gold-Silver-Copper-Zinc deposit in Rouyn-Noranda…this program is intended to confirm historical drill data, upgrade the size and confidence level of the mineral resource estimate, and provide material for metallurgical testing…
The Horne project area encompasses the former-producing Horne and Quemont mines, as well as the Horne 5 deposit…the Horne mine, of course, was operated by Noranda from the 1920’s to 1976 and has an incredible history as we’ve previously documented…it produced 11.6 million ounces of Gold and 2.5 billion pounds of Copper…the Quemont mine is located 600 m north of Horne, and produced approximately 2 million ounces of Gold and 400 million pounds of copper between 1949 and 1971…
Technically, FPC broke below an uptrend line in late September when the overall market went into a tailspin, but the stock has been clawing its way back since November…an important development is a reversal to the upside in the 200-day moving average (SMA)…
Note: John and Jon both hold share positions in BLO. John, Terry and Jon hold share positions in GBB.
Caddy Break looks to be opportune due to safe jurisdiction , government support ,Cdn currency advantage , infrastructure and labour market underutalized …producers and near term producers there are fantastic bargains ….I have GBB , AZX , TME , and GWA ….from Timmins to Val D’or ….
Comment by franky — February 13, 2015 @ 9:53 am
Franky
Have to agree, GBB is in the sweet spot, with a calculated resource and production only one final permit away. No need to worry about drill results.Once the permit is granted, it’s only reasonable to assume the Market Cap will take off. Just a no brainer at this point!
Comment by Bob — February 13, 2015 @ 10:44 am
MTO in the area north of Val D’Or has news out now ,their production will be over 40,000 oz gold per year and their mill is in a cat bird situation regarding surrounding ground and other claims …..Stock is at rock bottom 6 cents …..
Comment by franky — February 13, 2015 @ 10:55 am
I actually just a few minutes ago found this video of Peter Shiff giving his perspective on how gold performed last year and where its going, and he also comments on the phony US economy and the likely hood of the Feds raising interest rates.
It’s an informative 9 min video. I think it would be worth your time to give it a listen
I couldn’t find a single thing to disagree with him about…
Watch at youtube website… State of the Gold Market 2015: Exclusive Forecast & Charts – Peter Schiff’s Gold Videocast
Comment by Robin — February 13, 2015 @ 11:57 am
This is just my opinion – GBB, the selling is done by National yet there are enormous sell blocks above. Almost 300k shares out. GGI – investor fatique starting to set in. They need some great news to spark this stock soon.
Comment by dave — February 13, 2015 @ 1:09 pm
Robin
I think you would enjoy reading Bullionbullscanada.com, if you don’t already!
Comment by Bob — February 13, 2015 @ 1:31 pm
Interesting views!! Thanks, Robin.
Comment by Greg J. — February 13, 2015 @ 5:19 pm
Dave, GBB has traded over 20 million shares so far this year and is actually up 10% in the first 6 weeks of 2015. So “enormous” sell blocks have been met with “enormous” buy orders. Those might be “enormous” sell blocks for a stock with 50 million outstanding, but they’re peanuts really in the context of GBB. I personally like the fact they have that many shares O/S because of liquidity and the fact I believe the current resource, the upcoming high-grade production start and the potential to add several million more ounces easily justifies the current $13.5 million market cap. Also, the daily volume that I think is possible in GBB as the year progresses could be staggering.
A lot of unused capacity in mills in the area. Ultimately I see GBB getting bought out, and and what do u think the buyout would be for a multi-million ounce deposit in this area? Way more than $13.5 million, I can assure u of that. In the case of GGI, well, to use a hockey analogy, they need to come out swinging – you’re right, I agree with you on that. I’m sure they’re wise enough to realize this, and no doubt they’re getting ready to drop the gloves. I wouldn’t underestimate them any more than I would underestimate Farshad. Sometime within the next year or so, I see GGI and DBV both being bought out, along with previously mentioned GBB. So if you’re thinking in terms of flipping these for a few pennies each, it might be the equivalent of buying BLO at a nickel and turning around and selling it for a 50% profit at .075. Think big, not small.
Comment by Jon - BMR — February 13, 2015 @ 9:05 pm
Thanks for the URL Bob I thought it was familiar but went to the website anyway to find I already had it bookmarked but I haven’t visited it for a while.
I read the article on the home page ” The US Economy is Dead” and read it and found yet another person who “knows” what is going on. It was a good read. I think I will move it up on my list of bookmarks lol.
By the way I told my co-workers 6 yrs ago when we went through the 2008 financial crisis that the US had an old,tired Economy and will NEVER be what it once was again.
I wish I had the list but the US is just the latest of a list of countries over the millennia that for usually about a generation (ie 50-70 yrs) were the power house economic centers of the world. The US took over from England during the second world war and in no order before England was Spain, Portugal, Netherlands etc.
So it has been about 70 yrs the US has been on top it had its time and now its time they relinquished this set to take over as the economic power nation.
The problem is the US does note reins to a more superior economic power. That would be China of course. The problem here is the US will not let it go. They are going to do what ever it takes in desperation to hang on to it.
This is the reason the Feds will not report the true facts but devise and scheme different ways to present fraudulent positive economic figures and low unemployment
And for the record I believe Obama does not know and is not aware of of this stuff as the information and the speeches themselves are composed by the think tank collection of party partisans in the back room.
Anyway, if this plays out as badly as I think it will, then I want to be in precious metals as when the stuff hits the fan I believe there will be a stampede out of the stock markets to buy gold and silver and pour into the best PM stocks. This is where I will be …patiently waiting. 🙂
Comment by Robin — February 13, 2015 @ 9:38 pm
Jon
What do you think is a realistic market cap for GBB once they start producing gold, not taking in account the possibility of finding more gold?
Thanks
Comment by Greg — February 14, 2015 @ 10:46 am
Greg, a lot of course will depend on the direction of Gold, the Canadian dollar and Oil prices. Gold has clearly broken out in CDN dollar terms, and a period of sustained low Oil prices helps open-pit producers the most. Based on a resource estimate that is more than 2 years old, GBB has an all-category 43-101 resource of 1.55 million ounces @ >2 g/t Au. Data from over 400 historical holes (pre-GBB) is not part of that resource yet. I personally believe that with just 20% of the LONG Bars Zone systematically explored to date, and the historical data to be added, the actual number of ounces that can be proven up in the LONG Bars Zone is 5 million or more – open-pit, plus there’s underground potential. Now if Gold were to take off over the next couple of years, even if it’s trading at $1,700 CDN or better (currently just over $1,500 CDN), Granada will be worth MULTIPLE times more than $13.5 million. This stock had a market cap in excess of $100 million in 2010. It could get there again and beyond IMHO.
Comment by Jon - BMR — February 14, 2015 @ 11:24 am
Jon
100 million market cap is about a 33 cent share price correct? So from these levels about 10 times your money..?
Comment by Greg — February 14, 2015 @ 11:40 am
I expect GGI to release news next week. It will be an interesting week in my opinion. There must be many drill holes sunk into Rodadero and we should see some interesting assays, along with a possible corporate development (Joint venture maybe?) because the last financing was directed to Grizzly.
Comment by Dan — February 14, 2015 @ 11:48 am
GBB will shine in the future, but you will have to be really patient with it. I’ve been keeping an eye on the company for about a year, but never pulled the trigger because of the share count….I don’t want to be caught in a R/S.
BLO had a good day on Friday…I must say the stock is consolidating quite nicely. What is encouraging is that there is still demand for shares. Now the only thing that is on my mind is how big a pop the stock will have once the prototype is unveiled.
Comment by chris — February 14, 2015 @ 12:38 pm
GBB became a 10-bagger in 2010. All I’m saying, Greg, is that I’m looking at this and wondering why it can’t go a whole lot higher just based on the fundamentals. There is going to be a scarcity of substantial gold deposits in safe, friendly jurisdictions where it’s easy and relatively inexpensive to carry out mining. GGB has 1.55 million ounces @ >2 g/t (using a 1.0 cut-off) and that’s just the beginning. How that can’t grow in a major way is beyond me. The historical holes alone should make quite a difference. Plus they have a PFS (based on proven and probable reserves) on a high-grade rolling production start (>4 g/t) with robust economics that can finance an expansion of the resource (they now have every permit for the rolling start with just 1 more pending). 300 million shares? I don’t care. The project can support that. And massive liquidity in the market.
Comment by Jon - BMR — February 14, 2015 @ 12:41 pm
GGI has so much going for it, Dan, it would be hard for them to disappoint the market. We’ve seen many companies make missteps. These guys know what they’re doing and that’s why I’m personally very confident. There could be excitement on more than 1 front.
Comment by Jon - BMR — February 14, 2015 @ 12:52 pm
O well another week has come and gone
To ggi I say you can do no wrong
So then I wait till next week with great desire
For the big news to come so that I may retire.
Comment by Tombc — February 14, 2015 @ 1:17 pm
Jon- some food for thought for your DBV update……
Abdul Razique is a new addition to the DBV team….it is significant imo.
Looking at his profile in linkedin the title says it all…..”Senior Geologist, Seeking New Opportunities”
This is it also from his linkedin profile:
“Currently working as “Consulting Geologist” (August 2013 – present) focused on the geology and exploration potential of porphyry, skarn, IOCG type copper-gold projects in BC and Quebec Canada, and New Mexico, Arizona USA on behalf of Antofagasta Minerals Canada and its J.V partners.”
Antofagasta Minerals is a major producer of the world’s copper and a very big company. Abdul Razique works for Antofagasta Minerals as a consulting geologist and he looks for new growth opportunities on their behalf. Ask yourself, why would he get involved with a small $10 million dollar junior market cap company if it didn’t have something interesting in the ground???????? Some think our results are insignificant but they are not looking at the big picture and what is developing here so far. Yes, it very early but the signs are starting to show something and its attracting some attention but not by the market yet…..that will come when its very obvious.
A little bit on Antofagasta Minerals linkedin website…
From the company web site…
Antofagasta Minerals is the leading private mining group and ownership is mostly Chilean. It was the fourth largest copper producer in the country and the ninth worldwide as of 2011.
Antofagasta Minerals is the corporate center of the mining division. Its main offices are in Santiago, Chile. In 2012, its operations produced 709,600 tons of copper concentrate and cathodes, in addition to 12,200 tons of molybdenum concentrate and 299,900 ounces of gold.
The Group is developing many projects with a high growth potential in coming years. There are prefeasibility and feasibility projects under way in both Chile and the USA and the company is implementing a plan for a global search for mineral resources.
Comment by d4 — February 14, 2015 @ 6:32 pm
that`s great Tom thanks
Comment by brian — February 14, 2015 @ 6:37 pm
Pat, appreciate your comments but we had to remove them temporarily as they included information (although not pertaining to drill results) that has not been confirmed by the company (DBV) in the public domain. Having said that, I totally agree with your assessment of how encouraging things look at the moment with the Hat.
Comment by Jon - BMR — February 14, 2015 @ 9:05 pm
Jon- I disagree as there was no need to remove my information. I got the information from the “public domain” and not through the company via telephone (matter of fact I NEVER call the companies I invest in as to me they are in the same category as a used car salesman and I prefer not to be tainted or influenced by them). Since it appears on the company’s corporate power point presentation (technical team page) on their web site it can be assumed that it is confirmed……unless a hacker got on their web site and posted information which I doubt. I posted the info on another site and will not remove them since its posted on their web page but on your site you have freedom of speech.
Comment by d4 — February 15, 2015 @ 4:13 am
Sorry, d4, my mistake – I was just acting out of an abundance of caution, so please accept my apologies. I didn’t realize this had already been posted on the company’s web site (corporate presentation), perhaps Friday, I don’t know. We will repost your comments. I spoke with this individual the other day and I must say I was flabbergasted by his knowledge of porphyry systems. He is among the best in his field in the world with numerous discoveries under his belt. Pat McAndless knows him and has the utmost respect for him. Take note, folks, at the company Dr. Razique is coming from. I see this as a game changer for DBV and the district as a whole.
Is it reasonable to read into this that Antofagasta is eyeing the Hat and perhaps preparing for an entry into the Sheslay district? Yes. This is potentially huge. Hole 23 has changed everything, and there is more to come on that hole. We encourage all of our readers to think outside the box and very big about how the Hat and the district can become a world class Canadian discovery area – not many of those occur in our lifetimes. When they do, they create multi-millionaires. An immense amount of work is yet ahead for DBV and GGI and others, but this has evolved to a higher level now and should really sink in with the market over the next few weeks. Game on again at Sheslay and DBV and GGI will lead the charge.
Comment by Jon -BMR — February 15, 2015 @ 6:49 am
Jon- yes, this is a game changer for DBV once again. Why would someone of his experience join the DBV team?
What I find very interesting is what he does for a living and who he works for. DBV has attracted a lot of attention from the “experts” and we have the best team in the region imo. Patrick McAndless came out of retirement after a very successful career to join the DBV team and his own personal team followed him and now Dr Abdul Razik. People need to do some due diligence on these guys and see how important and experienced these people are to connect the dots!
Unfortunately, the market is blind to what is happening and only a handful of investors see the light. The ones that make the most money on these plays are the ones that take positions early before the market wants a piece of it. Luckily, due to the current market and people looking for big grades in the PR titles instead of doing their DD, it has allowed me to continue to add to my position as more pieces of the puzzle are revealed which reduce the risk and increase the odds of success.
I do believe that this year the people will see the light and the next phase of drilling could make a lot of believes in this play. The remaining 250m if mineralized will made a few believers imo but that will not be enough for the market just yet.
BTW, I have a very close friend that works in this sector and a few of his close friends personally know Dr Razik and have worked with him. These geos have been following DBV closely and instantly became bigger believers of DBV’s potential just because Dr Razik is involved. They say that if there is something to discover on a property, they know that DR Razik WILL find it and they have no doubt about it! They know that Dr Razik wouldn’t get involved unless there were very good reasons and his involvement suggests that his is very optimistic on the HAT Project or he wouldn’t waste his precious time. That is a big vote of confidence! We also know that Patrick McAndless is going to find it as well and both know each other and as a team there will be a lot of synergy between them. If DBV is on the verge of a major discovery (I do believe there are), these two will definitely find it very quickly. Really look forward to the next phase of drilling with the new team DBV has in place! No wonder I hear that Farshad is excited to go back to drill!
Major discoveries don’t happen often and only a select few are luck enough to say they did but when one identifies these early it is a life changing experience!
Comment by d4 — February 15, 2015 @ 8:27 am
Jon- look forward to reading the DBV update and the interview. I am sure there is nothing new one can say on DBV which I am not aware of as my DD is thorough but I like how you put these things together for those that haven’t followed it as close or haven’t done as much DD. Its always good to hear other people’s opinions on something to help validate ones own thoughts.
Comment by d4 — February 15, 2015 @ 8:55 am
I can vouch for that d4. I was in Dia-met at .17 and Kinross at $1.10 and Diamonds Fields at 2.80 – All of those back in the 90’s were babies in share price compared to where they went. Speaking of Kinross, WRR is extremely close to thier Road Mountain Mine in Nevada. I see 2015 shaping up to be a breakout year in metals and money being driven back to the market. The best of this gold boom still lies ahead.
Comment by dave — February 15, 2015 @ 9:32 am
Speaking of WRR, Dave – you’ve had your boots on the ground around that area. I know geologist Tom Shuster has, too (on WRR’s property) and he loves what he sees. Correct me if I’m wrong, but I can’t help but think they should be able to efficiently target the first few drill holes into some high-grade gold to get this play sizzling right off the bat?
Comment by Jon - BMR — February 15, 2015 @ 9:57 am
If anyone cares.. I met Chuck Fipke and a couple if his dentist buddies iin 1994, he helicoptered in to the area i was placer mining, (Selkirks) Quite the colourful character, and plastered.. Lol, wasnt driving, so, no harm!!
Comment by Greg J. — February 15, 2015 @ 11:04 am
Did DBV take down Dr. Razik being added to the technical team? I went to the power point presentation and looked under the technical team I do not see his name?
Comment by Greg — February 15, 2015 @ 8:05 pm
I just saw it, Greg, on page 6 (Technical Team)…Abdul Razique. His work was instrumental in the discovery of 1 of the world’s largest (top 5) copper-gold porphyry deposits in the world (Reko Diq in Pakistan). Even more importantly, his current relationship with Antofagasta, one of the world’s largest copper miners and part of the FTSE 100. It’s safe to assume their eyes are now on the Hat and the Sheslay district. What does that tell you?
What’s also interesting is that assays are pending from “Anomaly A” (see page 9). That leads me to believe something was overlooked there in the original few holes, roughly 1.5 km north of H-23. The pieces of the puzzle are coming together at the Hat, and our call right now – I am certain of this – is that the Hat is going to be much, much bigger than anyone (including us) first imagined. And that also has major implications for the Grizzly and may help explain the sudden $1.25 million that was recently parked into GGI, targeted for the Grizzly. More dots are connecting. This is the type of thing that can lead to multiples of 30, 40, and 50 or more on a stock, and some people are focused on a penny or two? Get with it. Start to think big here or forever regret that you didn’t. This is playing right before our eyes.
Comment by Jon - BMR — February 15, 2015 @ 9:21 pm
Thanks Jon found it….
Comment by Greg — February 15, 2015 @ 10:13 pm
The general market is always last to get into these explosive upside moves and with DBV it will be no different. The market waits until things are so obvious to them on what is going to happen that they miss out on 90% of the gains. The common investor doesn’t do their due diligence and waits for someone they trust to tell them its time to buy and by then its too late.
I try to identify these grass root plays early. The odds of success are low as only a handful of the 5000+ juniors on the TSX-V will make a discovery and be taken over by a major. With the way things are unfolding ……the people they are attracting to the team and their background/who they worked for and the circumstances of why they are with DBV. The early drilling data and the geology of the area is telling us something. The way things are unfolding is text book perfect. Some plays its the monster glory hole that comes first (this is what the market chases) and sometimes like DBV its the small pieces of the puzzle that come together over time and require a lot of due diligence to see it…..this is where one can make the most money if right as one can accumulate well before the market can understand it!
In all my years of investing solely in the junior explorers (approx. 20 years now), I have never seen the dots clearly connecting so early in a play where one can buy at grassroot discounts. I guess we can blame it on the fact that the market is different and the juniors are out of favour but I expect gold and copper to move much further with all the financial turmoil. This sector has been dead since 2008 and since it cyclical its just a matter of time before it wakes up. Last time the juniors were in play I had many stocks move from below .10 to $2.50. These cyclical sectors provide life changing moves and being in early in the quality front runner plays is key to reaping the most rewards. Its been 7 years now that this sector is dead and based on history/trends our day will come…..when it happens even the most useless junior with a plot of land and bad management will move but the quality ones that people are talking about will be the biggest movers and will only be the ones providing life changing rewards.
I am a firm believer that juniors will soon rally and that DBV will be one of the stocks that will be life changing. I have been accumulating DBV since .06 and continue to average up with each small piece of the puzzle. Some would say that being overloaded or having most if not all eggs in one basket is crazy but I have played this method for a very long time and do so when I really think I have a winner. It is not something I recommend unless one has done a lot of DD and has a very high tolerance for volatile portfolio swings but when one is right the pay off is huge.
One can play the area plays around DBV but I will not touch them unless they too start revealing that they have the potential for something otherwise to me they are a waste of time and too risky. There is a lot of potential in the Sheslay Valley but right now only one has demonstrated worthy of my hard earned money even though the magnetic map data show that the possible mineralization spills over onto PGX’s property who would want to invest in that company after what they did last year (not me!)? If others show potential and some pieces of the puzzle I will diversity.
Comment by d4 — February 16, 2015 @ 5:57 am
Re: DBV you would think that DBV would put out an NR announcing the relationship with Dr Razique….
wonder why they haven’t?
Comment by Greg — February 16, 2015 @ 10:21 am
Maybe it’s coming, Greg? Good question. I would think they would NR this for sure. Maybe they wanted to wait until after the long weekend, so let’s keep an eye on the wires in the AM.
Comment by Jon - BMR — February 16, 2015 @ 11:42 am