Gold is off $7 an ounce as of 8:30 am Pacific to $1,828 after dropping as low as $1,811…Silver is up 16 cents at $41.51…Copper has gained another 8 pennies to $4.21…Crude Oil is up 24 cents at $89.14 while the U.S. Dollar Index is flat at 73.95…a couple of U.S. economic reports came out this morning that contained no major surprises…the pace of business activity in the U.S. Midwest fell in August to its slowest level since November, 2009…the Institute for Supply Management-Chicago business barometer dropped to 56.5 from 58.8 the month before…however, it was better than economists’ forecasts for a reading of 53.5, according to a Reuters poll…the U.S. private sector created 91,000 jobs from July to August, a shade below expectations, according to a report from ADP that sets the stage for a likely weak report on non-farm jobs the government will release Friday…ADP and Macroeconomic Advisors said service-sector jobs rose 80,000, down from an average increase of 115,000 over the past two months, while the goods-producing sector saw a gain of just 11,000…consensus estimates are that the government will show the economy created about 80,000 jobs overall in August, including the public sector, though some economists say the report actually could show a loss of jobs…a leading Fed policymaker called for more monetary stimulus yesterday as it emerged that staff at the U.S. central bank have significantly reduced their growth forecasts…in an interview on CNBC, Charles Evans of the Chicago Fed said that he would “favour more accommodation” and became the first policymaker on the rate-setting Federal Open Market Committee to explicitly countenance letting inflation rise above the Fed’s target of 2% in the short-term…the Canadian economy shrank 0.4% in the second quarter of the year, a weaker showing than expected, as supply disruptions slammed exports…the country’s gross domestic product registered a sharp slowdown in the April to June period after a revised 3.6% reading in the first quarter of the year, the Stats Canada figures showed…however, the economy did expand 0.2% in June on a monthly basis…the second quarter slowdown stemmed from weaker activity in oil and gas extraction, along with a pullback in the manufacturing and finance sectors…
Quite a day for Richmont Mines‘ (RIC, TSX) yesterday with strong drill results adding further credence to our view that Wasamac is a rapidly growing deposit and one of the most exciting and important plays along the entire Cadillac Trend…7.28 g/t Au over 31.40 metres (true width) in the Main Zone helped Richmont jump $1.48 per share to close at $10.75 yesterday…the results demonstrate a robust system at Wasamac and will help draw a lot more attention to this emerging new mine west of Rouyn-Noranda and the immediate area surrounding it…of course that’s bullish for both Visible Gold Mines (VGD, TSX-V) and Cadillac Mining (CQX, TSX-V)...VGD got highly encouraging assay results from its first hole drilled at Wasa Creek, immediately to the west of Wasamac, and more results are pending from additional holes…VGD has been aggressively drilling Wasa Creek with two rigs and is also planning drill targets for Wasa East (both properties optioned from Cadillac) while CQX holds a 100% interest in 7 claims adjoining the northern boundary of the Wasamac deposit where the Main Zone could plunge at depth onto Cadillac ground…Visible Gold Mines, which is also expected to start drilling its very promising Joutel Project beginning in September, has broken out technically on the charts and is currently up 1.5 cents at 38 cents on 650,000 shares on the CDNX…CQX is also strong, up 2 pennies at 14.5 cents for a total market cap of only $3.9 million…Getting back to Richmont for a moment, RIC is now up 4 cents at $10.79 after profit-taking took it down to $10.38 in early trading…the Richmont chart is looking extremely bullish as John outlines below…
As of 8:30 am Pacific, the CDNX is up 3 points at 1806 after a strong performance yesterday on increased volume…Spanish Mountain Gold (SPA, TSX-V) has commenced a pre-feasibility study (PFS) for its Spanish Mountain Gold Project…the PFS will refine the estimates of capital and operating costs that were the basis for the preliminary economic assessment (PEA) completed by the company in December, 2010…SPA has resource definition, geotechnical, metallurgical and power supply studies underway, the results of which will form part of the PFS…SPA is currently off a penny at 68 cents…Silver Quest Resources (SQI, TSX-V) reported this morning that a 26,000-metre diamond drill program (75 holes) has commenced at the Davidson claims (SQI holds a 25% interest) that form of New Gold Inc.’s (NGD, TSX) Blackwater Project in central British Columbia…four more rigs are expected to join the one now on site by the end of September with the 26,000 metres expected to be completed by year-end…SPI is off a penny at $1.05…one of our favorite Silver stocks, Great Panther Silver (GPR, TSX), enjoyed a strong day yesterday thanks to positive drill results…GPR gained 23 cents to close at $3.10…it’s currently off a penny at $3.09 and John updates the chart…
11:49 700 000 Shares in volume, are we going to challenge alL time volume record for VGD?
Comment by Martin — August 31, 2011 @ 7:51 am
TYP…. moved to $1.02 with 1.2 million shares ….
Comment by Theodore — August 31, 2011 @ 7:52 am
Anon & Jitney trying to drive the sp on VGD down. Don’t give way! 🙂
Comment by Andrew — August 31, 2011 @ 10:29 am
VGD
The chart last evening showed a good possibility that VGD would go up today
& it did (0.395), but it failed to show it closing at 0.365, a loss of
momentum says me. I disagree with Andrew that brokers 1 & 99 (varmints) were
looking for cheaper shares, they usually do that with small lots (500). They
had an agenda, so what’s new with the Venture exchange. I hate to see those 2
houses selling, which brings to mind, that the news may not be that good. I was
occupied today, but you can be sure, my eyes will be all over it tomorrow. R !
Comment by Bert — August 31, 2011 @ 12:19 pm
GBB closed at 37 cents with low volume. BER lost one cent to 15.5 cents and my sixth sense for this one is another TYP with sky high potential. My personal choice for this one. TYP closed at 92 cents and I mentioned about this one … with the good news came out today. If you follow my sixth sense… you can buy me a cup of coffee. CQX as I said it will go to 15 cents when I talked about it last Friday, 3 days you got 40% profit …. today’s high 14.5 cents and today, it is closed at 13.5 cents. MTU went up a little bite with low volume… . SD will begin to have some activities very very very soon….. do not dump any shares unless you want the cash immediately. NAR… very quiet… nothing to mention about here. VGD I believe that this one will go further up … beyond 40 cents….in days.
Comment by Theodore — August 31, 2011 @ 1:59 pm
Further my previous post, today’s trading has taken some of the shine off VGD, i feel the
company could have, through whomever, kept the momentum going. I, like a good many more out
there, are not privy to inside information, so we depend on the market action & when i see
anonymous selling 264K on a given day, it raises a red flag & begs to question, is someone
wanting to hide their transactions. They use all kinds of so called tricks, minimum share
trading & large share offers, which leaves some with a feeling of despair. I lost shares
sometime ago by using a stop loss. The following day they swooped down, took me & others out
& didn’t the stock, with news, turn around & the sky was the limit. I follow BMR because they
state they are not obligated to anyone & i have no reason to disbelieve them. As already stated,
my eyes will be all over VGD tomorrow, hopefully it will hold, otherwise i may not be responsible.
Why am i writing this ? we are a cyber family aren’t we ? Good night ! R !
Comment by Bert — August 31, 2011 @ 4:43 pm
Bad news for SD…. wonder what it will be worth tomorrow?
Comment by alec — August 31, 2011 @ 5:03 pm
Theodore,
Your daily portfolio updates are very amusing. My sixth sense tells me you need to diversify from this full boat of junior explorers or you’re going to get your arse kicked. Buy some solid producers that actually benefit from increases in the price of bullion! Scooping the likes of SD is a recipe for poverty.
Comment by Roger — August 31, 2011 @ 5:04 pm
Bert, with all due respect, you might be “over-thinking” this a little. Today was very positive in many respects for VGD. There was certainly some aggressive accumulation of the stock and the increase in volume shows a lot more investors are beginning to look at this. The offers at the end of the day were quite thin. VGD has been moving up in a very steady and orderly fashion since the start of July. The chart is very bullish and with everything that’s going on at and around Wasamac, and of course drilling starting soon at Joutel, VGD can only draw even more interest in the days ahead. For the month of July, VGD was up 49%. For August, in a poor overall market, VGD was up another 10%. The fundamentals are strong and the chart is very positive, so I believe patience continues to be the key here. I suspect September will be a stellar month for VGD.
Comment by Jon - BMR — August 31, 2011 @ 5:06 pm
Alec,
What’s the bad news on SD. Can you provide us a link … I was not able to find any updates.
Comment by Paul — August 31, 2011 @ 5:41 pm
Roger, thank you for your comments. BMR provides us many useful information unfortunately, they are not in a position to comment here for Buy, Sell or Hold situations. As an investor, we need to buy the stock at the right timing and you will have maximum return. Most of the stocks commented by BMR and other readers have potentials to go higher. I bought some of the stocks – holding 4-5 different kinds …. but will not hold for long. The only exception is GBB which I bought since 6 cents period and I never have a single day with zero holdings. I did a lot of same day trading in the past. For SD, I only bought them at 3.5 cents and I have sold 75% out with the same price… I don’t know about the bad news but it will probably go to 2.5 cents if Alec’s bad news… CQX … quiet some time and I bought at 10 cents and now I have sold all. VGD , I never buy this one but I believe it can go above 40 cents. TYP which I mentioned recently, less than 2 weeks… it should go up but this time is more than I expected…. BER is my personal favorite but my portfolio does not have an impact to the price. Most of the junior stocks are risky and you see from their high/ low during the year. It does not matter which one you buy… the current price can be 20-50 % of their 52 weeks peak…
Comment by Theodore — August 31, 2011 @ 6:51 pm
Here it Paul, it doesnt sound good IMO.
Sidon to file financials late, requests management CTO
2011-08-31 16:38 ET – News Release
Mr. Kamal Alawas reports
SIDON INTERNATIONAL RESOURCES CORPORATION FILING FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED APRIL 30, 2011 AFTER DUE DATE
Sidon International Resources Corp. will not be able to file its annual financial statements for the fiscal year ended April 30, 2011, and its management’s discussion and analysis by the filing deadline of Aug. 29, 2011, and as a result will be in default of its obligations under National Instrument 51-102 — Continuous Disclosure Obligations.
On May 10, 2010, the company agreed to acquire an option to earn an 80-per-cent interest in a prospecting licence covering an area of 60.9 square kilometres located in the Morogoro rural district of Tanzania (the MEG gold property). The company is encountering some difficulties in completing its consolidated financial statements because of the current development of its development properties. The company expects to complete and file its financial statements on or before Oct. 28, 2011, and does not expect default to be recurring.
The company intends to satisfy the alternative information guidelines set out National Policy 12-203 — Cease Trade Orders for Continuous Disclosure Default by filing biweekly default status reports, as required, until such time as the financial statements and MD&A are filed.
The company advises that there are no insolvency proceedings to which the company is subject and there is no material information concerning the affairs of the company that has not been generally disclosed.
The company has requested from the applicable Canadian securities regulators that a management cease-trade order related to the company’s securities be imposed against some or all of the persons who have been directors, officers or insiders of the company. If granted, such an order would not generally affect the ability of persons who have not been directors, officers or insiders of the company to trade the company’s securities.
Canadian securities regulators may impose an order that all trading in securities of the company cease, either permanently, or for such period as is specified in the order, if the company does not file its audited annual financial statements and management’s discussion and analysis by Oct. 28, 2011. The company further acknowledges that an issuer cease-trade order may be imposed prior to Oct. 28, 2011, if the company fails to file its biweekly default status reports on time.
Comment by alec — August 31, 2011 @ 8:50 pm
Alec,
Thanks for the information. Much appreciated!
Will BMR now drop this from it portfolio in light of the information posted?
Comment by Paul — September 1, 2011 @ 3:02 am
Paul, Alec, you’ll notice the exact same situation occurred with KOK (same group basically). KOK now has everything in order, and in fact, new stronger players have stepped in with KOK and are financing it to $7.5 million.
Comment by Jon - BMR — September 1, 2011 @ 3:23 am
Good morning Bert, I’m not pessimistic about VGD. I don’t like to see Jitney and Anon controlling the majority of the trading. However, they didn’t start to have an impact until after 2:00pm. A lot of positive action in the morning. I’m sure there was some profit taking, after all it’s gone from .22 to .395 in a short time and many retail investors now trade as soon as they have a gain. I didn’t sell and I intend to hold unless indicators show otherwise. SS %K has turned down and CMF dipped into red yesterday indicating increased selling pressure. However, VGD had their 6th highest volume day in 12 months so that has got to be positive. If the impending news on the assays from Wasa Creek was not going to be good I think that maybe VGD would have mobilised two rigs to Joutel and only kept one at Wasa Creek? Time will tell, but I really like the prospects with VGD.
Comment by Andrew — September 1, 2011 @ 4:54 am
I will wait for SD’s official announcement as my sixth sense… do not blindly dump the shares… It is not because I am holding a portfolio but do not panic…. It may go down to 3 cents but still a lot of buy lots there….
Comment by Theodore — September 1, 2011 @ 5:05 am
I would agree, Andrew….volume is key with any stock and the trendsince early July is higher trading volumes with VGD….this is very bullish, particularly with an increasing share price…it’s not totally surprising there was some reaction on the stock’s first test of the 40-cent area (at 39.5)……that is perfectly normal trading behavior and nothing to be concerned about IMHO……I noticed Haywood stepping in as a buyer yesterday which is interesting and very positive…….the VGD story has a lot of legs to it and interest should continue to build in September……you’ll notice the 100-day SMA has flattened out and I’m anticipating a reversal to the upside this month – very bullish………
Comment by Jon - BMR — September 1, 2011 @ 5:12 am
I believe we have a Sunridge (SGC/V) investor among us, if so, a good NR out this morning. R !
Comment by Bert — September 1, 2011 @ 5:13 am
Andrew
Appreciate your optimism, thanks ! As for #1, #99 selling after 2 p.m., that’s normal for the varmints, they
waited for a price buildup. Anyway, we will wait to see. Good luck ! R !
Comment by Bert — September 1, 2011 @ 5:15 am
Varmints…that’s a good word for them, Bert. I’m adding to my personal position today.
Comment by Jon - BMR — September 1, 2011 @ 5:42 am
Thanks Jon,
Appreciate your comments as always (including those who post information and opinions).
Comment by Paul — September 1, 2011 @ 5:52 am
Does anyone knows when is the next bernanke speach?
Comment by Martin — September 1, 2011 @ 7:31 am
SD going to 0? BMR comments please!!!
Comment by marc — September 1, 2011 @ 8:10 am
Hmmm, my 7th sense tells me that Theo has dumped all his shares at 3 cents and is looking to buy them back lower? But he s telling you to hold yours so he can sell his? Am I far off?
cheers
Comment by alec — September 1, 2011 @ 8:59 am
Alec… this is not me…. I did not sell at 3 cents this morning…. I only sell at 2.5 cents…. This is not me… and I am sure I will buy back if it is lower than 2.5 cents…..
Comment by Theodore — September 1, 2011 @ 11:30 am
Bernanke’s speech over two days, September 20 & 21, I believe.
Comment by Wayne — September 1, 2011 @ 1:18 pm