Gold has traded between $1,265 and $1,274 so far today…as of 9:30 am Pacific, Gold is up $1 an ounce at $1,268…Silver is flat at $17.61…Copper has added another 3 cents to $2.17…Crude Oil is up 67 cents at $49.85 while the U.S. Dollar Index has jumped one-third of a point to 98.96 as it continues its journey to major resistance at and just above 100…
Holdings in SPDR Gold Trust fell by 1.49% yesterday to 942.59 tonnes…
All the dire predictions about doom-and-gloom in Britain following the Brexit vote have so far turned out to be false…it was reported overnight that the U.K. economy grew by 0.5% in the 3rd quarter from the 2nd, and 2.3% year-on-year…the numbers exceeded market expectations…also, retailers in the U.K. saw stronger than anticipated sales in October…the upbeat GDP and consumer spending data came despite the U.K. Brexit vote in June which many said would cripple the British economy…
The official numbers out this week on how much more Obamacare premiums for many will cost in 2017 have stunned Americans from coast to coast (they should not have been surprised), and may also have shaken up the Presidential race as several polls are starting to tighten considerably…have you thought for a minute how Gold might react if the liberal mainstream media, the pollsters and most of the pundits were proven wrong (like with the Brexit vote) and everyone woke up November 9 with Donald Trump as President-elect?…Gold should finish the year strong no matter happens on Election Day in less than 2 weeks, but a Trump victory would immediately send bullion through the roof…if you’re looking at “shorting the system” with a huge potential payout and rather limited downside risk, our recently recommended double bull Gold Index ETF – already up 12% in less than 3 weeks – is worthy of consideration…
U.S. & China Data Disappoint
New orders for U.S. manufactured capital goods unexpectedly fell in September amid weak demand for computers and electronic products, which could temper expectations for an acceleration in business spending in the 4th quarter…the Commerce Department said this morning that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 1.2% after 3 straight months of strong gains…
The big data point for this week, which could spark some significant volatility across a broad spectrum of markets, will be Friday’s U.S. GDP report for Q3…it’s expected to show a rise of 2.5%, year-on-year…
In overnight news from Asia, profit growth in China’s industrial firms slowed in September from the previous month’s rapid pace as several sectors showed weak activity, suggesting the world’s second-biggest economy remains underpowered despite emerging signs of stability…
Tesla Beats Earnings Estimates But JP Morgan Skeptical
Tesla (TSLA, NASDAQ) shares firmed up today after the company posted its second profitable quarter ever and beat analysts’ expectations for the 3rd quarter by a wide margin…the earnings come weeks after Tesla announced record delivery and production numbers, beating out 2nd-quarter delivery and production numbers by 70% and 37% respectively…for the 2nd half of 2016, Tesla continues to back its forecast of 50,000 new vehicle deliveries, with a 4th quarter plan of just over 25,000 deliveries…still, JP Morgan put out a sell recommendation on Tesla this morning, saying the earnings report “is not as good as it looks”…
Crude Oil Update
Crude inventories posted an unexpected drop of 553,000 barrels last week, and stocks of gasoline and distillates fell more than expected, raising hopes that a long-awaited market rebalancing is finally underway…the good news on inventories was tempered, however, by doubts among some investors that OPEC will be able to implement a production cut…we believe the Saudis are determined to make that happen, and will, even if they have to absorb most of the cut…
Meanwhile, keep an eye on escalating protests in Venezuela against the rule of President Nicolas Maduro, although there’s no sign yet of any impact on the OPEC member’s Oil output…Venezuelan production has been falling this year as low prices hit investment, but the socialist country is also an economic basket case…
Suncor Energy (SU, TSX), Canada’s largest Oil and gas company, reported a better-than-expected 3rd-quarter profit yesterday thanks to strong upstream production and record Crude throughput at its refineries…
In Today’s Morning Musings…
1. Another junior jumps into the Cobalt space…
2. AMZ chart – wow!…
3. Two companies with certain similarities but very different market approaches – why one has twice the valuation and much more liquidity…
4. Clean Commodities (CLE, TSX-V) firms up on Lithium find south of Whabouchi…
5. Seabridge Gold (SEA, TSX) identifies “Quartz Rise” target in Heart of Gold Camp…
6. Aben Resources (ABN, TSX-V) has started a fresh climb from a recent bottom…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
Jon – house 34, Maison Placements. Have you ever heard of them. Are they a mutual fund house
Comment by dave — October 27, 2016 @ 9:40 am
For those who don’t mind holding for a little while (2 months), you may want to look at KNX.
They started drilling and are next door to Wesdome (WDO). The mineralization (according to some experts) runs onto KNX property. They just started a financing, but KNX should do real well here in the next few months. WDO made a significant discovery couple months back. I do not own, but figured I would throw this one out there.
Comment by dave — October 27, 2016 @ 9:48 am
Thanks for the update on DVR. I will call the CEO.
Is CXO looking at Nevada? my guess
Comment by Mmurphy — October 27, 2016 @ 10:19 am
Daniel
I missed the call on CRR this morning, I guess it wasn’t good by looking at the share price, is now a good time to pick some up at this all time low?
thanks
Comment by GREGH — October 27, 2016 @ 11:13 am
Dave – You are a chartist. What’s it saying? Do you think RTM retreats to 10 or 12 cents before results?
Comment by Dan1 — October 27, 2016 @ 2:55 pm
Dave, what’s your thoughts on “BHS” Bayhorse Silver?
Thanks
Comment by Jeff — October 27, 2016 @ 3:36 pm
Ditto on the DVR update!! Much appreciated .Anyone follow and have an opinion on CanasIl..CLZ..looks interesting after being dumped all week to .27 cents .Another 6 million shares become free trading on Monday or Tuesday, so caution.. I guess??
Comment by GregJ. — October 27, 2016 @ 3:36 pm
Jon… DVR – really??? When I spoke to David M last week as I mentioned, they are capital conscious which includes all currencies including sweat equity. they dont expect a big SP jump and have a 3 year horizon.
I dont know who they have talked to if anyone.. except the people that they need and want to execute their biz plan..
I would like them to be a buck too!!
am I missing something??
Comment by Jeremy — October 27, 2016 @ 4:16 pm
Really, Jeremy. When a CEO tells me or shows me he doesn’t care about his stock price, that’s a problem for me and I’m sure a lot of other investors. We’ll elaborate on that, in a general sense as it pertains to the issue we brought up this morning, in a special piece in the near future.
Comment by Jon - BMR — October 27, 2016 @ 4:47 pm
JEFF – I like BHS a lot and mentioned it here once a while back. I do not own it, but only for the simple reason Jeremy brought up. wish we had a ton of money to be in many. If I did, I would own BHS.
Dan1 – I am going to give you the facts first, and it involves TA just as Jon or John would do. ONLY a news release will change what the TA is showing, and you can be the judge from there. I contacted the company and had what I would call a very interesting conversation. Sorry, I can’t give names. Now, the assays are expected back next friday. As we all know, the labs are always late and nothing happens when anyone from a company says they will happen. IT IS ALWAYS LATER. So, we are looking at better than a week away before assays. RTM correcting today. I am going to tell you what the TA shows and then give my opinion. TA – RSI under 70 now, but not to 50. With the time frame, I think the RSI will come back to 50. The 50sma is at .10 and the 200SMA is at .13. The 20sma is at .11 – The reason for the 200 higher than the others is because it did a death cross a while back. The MFI was oversold and is dropping.
I have said this over and over and BMR preaches it with the charts. They are put up for a reason. The only thing that is going to change the TA is a News release, good or bad. You have heavy resistance at .18 and moderate support at .13, with stronger support at .10. I hope that I have painted you a picture. Yes, it CAN come to .10. Not saying it will. If it breaks below .13 tomorrow, it is more probable. Charts are hard to guage after such a run up with only one day’s correction.
My gut feeling for what it is worth. I believe they have found kimberlite. I do not know if diamonds will be present or to what grade. This is important for the stock to motor into the 20’s and beyond. I believe it can come to .10 and might. I believe that it is going to have another momo run before the end of next week, but I doubt the run breaks past the last one it just had on Tuesday. It’s a speculation run, not a confirmed material run. Sorry this is so long.
Comment by dave — October 27, 2016 @ 5:22 pm
I would like to add one thing. TA works until that NR changes everything, up, down, or no change in price at all.
How do you think I knew PMA was going to move up, or EXO is about too soon. If it did not work on pennies, stockcharts and all the other sites would not waste their time with them.
Comment by dave — October 27, 2016 @ 5:25 pm
Greg – CLZ, if it doesn’t bounce when it hits .25, it is in trouble, even though oversold. Keep in mind a bounce does not mean you will see 70’s anytime soon. .43 to .49 a possibility, but with those warrants coming free, not likely.
Comment by dave — October 27, 2016 @ 5:49 pm
Interesting news from IANTHUS CAPITAL (IAN, CSE) today, shows you how hot the marijuana sector is. Bought deal for $15 million at $2.10, half a warrant with an accelerator clause that can be triggered if the stock trades above $4 for 15 consecutive sessions. If the warrants on this deal gets exercised, company takes in another $20 million.
They raised $6.5 million to list on the CSE and have only 5.7 million shares outstanding. Closed at $3 today, up 53 cents.
Mr. Julius Kalcevich reports
IANTHUS ANNOUNCES $15 MILLION BOUGHT DEAL FINANCING
iAnthus Capital Holdings Inc. has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp., and including Beacon Securities Ltd., pursuant to which the underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of units at a price of $2.10 per unit for aggregate gross proceeds to iAnthus of $15,015,000.
Each unit will comprise one common share of the company and one-half of one common share purchase warrant. Each warrant will be exercisable to acquire one common share for a period of one year following the closing date of the offering at an exercise price of $3 per warrant share. The warrants will be subject to a 30-day forced exercise provision if the company’s daily volume-weighted average share price is greater than $4 for 15 consecutive trading days.
The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 1,072,500 units at the offering price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing date. If the overallotment option is exercised in full, the aggregate gross proceeds of the offering will be $17,267,250.
The units will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Quebec. The company intends to use the net proceeds from the offering for working capital and general corporate purposes. The offering is expected to close on Nov. 17, 2016, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.
About iAnthus Capital Holdings
iAnthus Capital Holdings, through its 100-per-cent-owned subsidiary, iAnthus Capital Management LLC, delivers a comprehensive solution for financing and managing licensed cannabis cultivators, processors and dispensaries throughout the United States.
We seek Safe Harbor.
Comment by Jon - BMR — October 27, 2016 @ 5:49 pm
Well Jon… stock promotion is one thing, company building may be another.. I submit that the comments may be premature.. just sayin..
I for one am in for the long haul with DVR…
and yes Dave… where do we find a brinks truck:)
Comment by Jeremy — October 27, 2016 @ 6:48 pm
Anybody following LIB? Marijuana space and moving! Broke thru 20 today! Maybe one of the cheapest valuations out there comparatively.
Comment by STEVEN1 — October 27, 2016 @ 7:54 pm
Thanks Dave, appreciate your comments on RTM
Comment by Dan1 — October 28, 2016 @ 4:42 am
Third quarter GDP jumps to 2.9% right before the election. Sounds like more bs to me. Wonder how much it will be revised down next month?
Comment by Sameer — October 28, 2016 @ 4:48 am
Presto, Hillary can argue U.S. economy is roaring ahead at the fastest quarterly pace in 3 years…amazing, isn’t it, how these numbers just conveniently pop out, 12 days before an election?…definitely smells a little cooked up…I guess they thought the number would look too rigged if it came in at 3%…watch for a downward revision to reality later (after the election)…the 2.9% number was fueled by what the Commerce Department said was a major surge in exports (10%), at a time of course when the manufacturing sector has been struggling with a high U.S. dollar…anyway, consumer spending is supposed to make up 70% of GDP so this GDP number this morning is on a weak foundation, on shifting sand, if it’s resting on U.S. export growth at a time when the dollar is so strong…that might be why Gold initially went down slightly after the number but has strengthened since once people figured this out…
Comment by Jon - BMR — October 28, 2016 @ 4:52 am
Makes me sick. Can’t wait to hear trump’s take on it.
Comment by Sameer — October 28, 2016 @ 5:12 am
Thanks Dave.. really appreciate you.. taking the time!!!
Comment by GregJ. — October 28, 2016 @ 5:23 am
Jon – Those are nice samples by GGI on zinc, but they don’t mention anything about drilling, will it be next year, or is their area accessible during winter.
Comment by dave — October 28, 2016 @ 6:14 am
Astonishing Zinc grades (55.9% and 44.2%) from sampling of a new area within the E&L package with massive sulphides (includes also Gold, Silver, Copper) outcropping in volcanics 2700 meters east of the Ni-Cu-Au deposit, interesting…says something about this overall area…dress rehearsal I suspect for much more regarding the Ni-Cu-Au deposit very soon…E&L will be a game-changer for GGI, thankfully…
Comment by Jon - BMR — October 28, 2016 @ 6:19 am
Dave, I bought into PMA. What do you think? Still a nice move coming based on the chart?
Comment by Dennis — October 28, 2016 @ 6:21 am
PMA – strong support at .06. It came to life off the bottom of .05 – If the contract deal gets done with South, this stock soars. Lets see what happens by christmas. If you have a 2 month patience, its a hold, and add more at .06
Comment by dave — October 28, 2016 @ 6:52 am
ya maybe chopper that camp over from the grizzly,looking good,this one still a bargain,bout time jon…..
Comment by Laddy — October 28, 2016 @ 7:15 am
Dennis – go back to PMA’s NR back on 09-23. It will give you an idea of the situation. Sound energy on the London exchange is SOU. Sound has received 4 of the 5 license and are awaiting the final one. The deal is for Sound to go in partners with PMA on their Sid property and issue PMA 22 million shares and 50% of the profit. Sound made a major discovery right next to PMA and they want to work their property. The story is interesting, but as we all know the deal has to get signed. I think Sound is waiting for the final license to start on their property and then the deal gets done with PMA. Sound Energy share price soared up I believe to 380% this year. The shares to PMA and 50% of production would value them around $5 a share. But before you make out your Christmas list, I would be happy with .20 – there is always risk and the deal has to get signed.
Comment by dave — October 28, 2016 @ 7:24 am
Jon – I have done some research on BEX and I like it for a longer term play. I also like MEK. Osisko, for whatever reason went on a sale of its Jr’s that it held shares with and it took MEK’s price down to an attractive level. I think good things are going to happen in that area.
Also like WPQ. The Lupin mine and mill deal gets signed and .08 will not be starring at you. I understand it is any day now.
Jeremy, you found a brinks truck yet?
Comment by dave — October 28, 2016 @ 7:45 am
Dave, yes, BEX has been a good stock to accumulate in recent months and that Daniel has really been on top of. MEK is prospective for a high-grade drill hit, and WPQ with the Lupin mine does have a chance to charge before year-end…
Comment by Jon - BMR — October 28, 2016 @ 8:00 am
It is hard for me to keep up with all your recommendations. I was not aware that MEK was mentioned. Cool. I like both of them.
Comment by dave — October 28, 2016 @ 8:18 am
http://gis.gov.nl.ca/mrinquiry/new_claims_w.asp – Thats a lot of claims going on around Altius – BEX, MEK
Comment by dave — October 28, 2016 @ 8:45 am