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February 7, 2012

BMR Morning Market Musings…

Gold has traded between $1,709 and $1,730 so far today…as of 5:30 am Pacific, the yellow metal is off $4 an ounce at $1,716…Silver is 26 cents lower at $33.42…Copper is down 6 pennies to $3.80…Crude Oil is off 85 cents to $96.06 while the U.S. Dollar Index is up slightly at 79.03…

Hong Kong’s shipments of Gold to mainland China in 2011 more than tripled from a year earlier, confirming China’s rapidly growing appetite for bullion, data released by the Hong Kong Census and Statistics bureau showed today…this came despite the Gold flow from Hong Kong to China dropping about 62% in December on the month to 38,605 kilograms, its lowest level since July…”The 38.6 tonnes shipped… might be interpreted by some as Gold-negative,” said UBS in a note…”We, however, think the real outliers were shipments in October and November, which were greatly in excess of previous months’ volumes…And while December’s activity is the lowest since July, it’s still 245.2% higher year-on-year…Here’s a statistic that should lay to rest any doubts over Chinese Gold consumption: the 2011 trend of imports from HK was up 258 percent from 2010“…

Fed Chairman Ben Bernanke is likely to repeat his case for a long period of low rates and will probably keep markets guessing about whether the Fed will do more quantitative easing as he appears before a Senate Committee beginning at 7:00 am Pacific

Stock index futures are pointing toward a slightly negative open as of 5:30 am Pacific

The TSX Venture Exchange closed at 1664 yesterday…the 10-day moving average (SMA) at 1640 and the 20-day SMA at 1600 are two support areas to keep in mind on any minor pullback…the Index will likely have to digest its recent gains before gathering the energy needed to blast through the 1675 resistance area…a very encouraging sign is that the 100-day SMA, in decline since last May, is flattening out and should reverse to the upside later this month which will add fresh fuel to this bullish new wave…the action in the Venture bodes well for Gold and commodities in general…

Canadian Prime Minister Stephen Harper has started an important visit to China where he’ll likely find greater interest in Canadian oil than from the White House…with four cabinet ministers, seven MP’s and 40 business executives and academics, Harper hopes to build on rapidly expanding ties that have pushed bilateral trade to nearly $60 billion U.S. a year in 2010…the Prime Minister has done quite the switch on China after refusing to attend the Beijing Olympics in 2008 and saying when he first came to power in 2006 that he didn’t think Canadians wanted him to “sell out” to China over the “almighty dollar”…from 2006 to 2009, China made no major investments in Canada but over the past two years the country has poured well over $16 billion into Canada which is counting only the largest energy deals alone, according to a report this morning in the National Post…China has a hugely growing appetite for resources and Harper’s visit also comes at a time when both countries are trying to give their respective economies a jolt…

Though it was down 39 points today to close at 2292, China’s Shanghai Composite Index has been looking healthier in recent weeks and we find that to be very encouraging in terms of the big global picture…there has also been a fairly close correlation between this Index and the Venture Exchange…John updates the chart for the Shanghai this morning – the “magic number” appears to be about 2400…a move through that yellow resistance band shown below would be a very bullish development…

It’s always important to keep a close eye on the direction of Crude Oil which has calmed down recently…this is stock market-positive and beneficial for Gold producers as well given that Oil is such a big component of their cost structures…for now, Crude appears to be stuck in a trading range between $90 and $100 a barrel…an Iran premium is certainly built into the current price even though Crude has been a little weaker lately…

We have one company chart this morning which is a new situation for our readers to check out – Newstrike Capital Inc. (NES, TSX-V) which has been reporting good results from its Ana Paula Project in Mexico, central to the company’s 90,000 hectares in the Guerrero Gold Belt…Ana Paula is at an advanced-staged exploration level…the company has a healthy market cap ($300+ million) but the chart is positive and a breakout at some point during the first or second quarter this year certainly seems possible…

Note: John, Jon and Terry do not hold positions in NES.

News just out on Cap-Ex Ventures (CEV, TSX-V) at 5:15 am Pacific…more positive drill results from the Northwest Zone of its Block 103 Property near Schefferville, Quebec…all three holes reported encountered significant near-surface iron mineralization including 148.4 metres at 30.6% Fe…the Northwest Zone is wide open to the south where thickness increases…more results from the Greenbush Zone (two kilometres from the Northwest Zone) at Block 103 are pending…this is truly a world class iron ore discovery and the company expects to have an initial NI-43-101 resource estimate by the end of the year after an aggressive 2012 exploration program…

A company under 20 cents we’re keeping an eye that we like is Cascadero Copper Corp. (CCD, TSX-V) which closed yesterday at 17.5 cents…there’s no need to “chase” CCD at the moment but we do like its prospects for 2012 and we suggest readers check into it…

37 Comments

  1. Regarding BMR comments on the price of oil, i notice Saudi Prince
    Alwaleed stated on CNN., that they will not allow oil to go over
    $100.00. You heard it first on BMR (Breaking Morning Reports).

    Comment by Bert — February 7, 2012 @ 6:17 am

  2. It appears the market just don’t care. Greece is shut down, unions
    have called strikes. They are holding us hostage & they need to get
    their act together, otherwise we ain’t going anywhere.

    Comment by Bert — February 7, 2012 @ 6:48 am

  3. Yet again, does BMR still own cev? Is this question being dodged?

    Comment by Moosey — February 7, 2012 @ 6:56 am

  4. PG on CEV

    More good drill results out today but the real fun starts in May with a super large-scale drill program. The share price has been in a good consolidation phase (Point A). I suspect the share price shall take out the highs of late last year before the drills are turning.

    Comment by Bert — February 7, 2012 @ 7:00 am

  5. moosey, they mentioned a week or so back no one held CEV.
    Weird time to buy/sell tho, buy when its risen big and sell when its in consolidation. Each to there own tho.

    Comment by Mark — February 7, 2012 @ 7:08 am

  6. Moosey
    BMR as such does not own stock. The 3 participants of BMR Jon, Terry and John may or may not own certain stocks at any one time. We trade all the time. When we present a chart we always state if we own stock at that time, but we do not state when we buy and sell. It should not matter to anyone if we own the stock or not, these are personal accounts. We, at BMR, do not have knowledge of each others accounts.

    Comment by John - BMR — February 7, 2012 @ 7:11 am

  7. GBB….what’s the meaning of the shareholders right plan? anyone see a take over coming soon? Or it’s just smoke and mirrors??

    Comment by M. — February 7, 2012 @ 7:29 am

  8. BMR

    Thanks for the chart on NES

    Greg

    Comment by GREG H — February 7, 2012 @ 8:00 am

  9. M

    A shareholders right plan means that the Shareholders will have their
    say in case of an unfriendly takeover attempt.

    Comment by Bert — February 7, 2012 @ 8:09 am

  10. John

    Your response to Moosey bothered me somewhat. We all realize
    that you have the right to say nothing, but i always felt you
    started this site to be of assistance to readers. Once you
    tell readers you have a position in a certain stock, i feel
    it would be prudent to advise them when you sell, especially
    since we feel more secure when you hold. As for ye guys not
    letting each other know if & when you buy or sell a stock,
    especially if you profited. My response to that is, “YE MUST
    BE ONE OF A KIND”. You may not appreciate my comeback, but i
    am willing to accept the consequences. Respectfully !

    Comment by Bert — February 7, 2012 @ 8:20 am

  11. Andrew

    CEV up .07 at this moment, ZNR down 0.015, leaves you better off
    at this moment.

    Comment by Bert — February 7, 2012 @ 8:40 am

  12. Looking foward to read “Rainbow Resources: From “Shell” To 2012 Success Story” part 2 :-)!!

    Have a nice days BMR!

    Comment by Martin — February 7, 2012 @ 8:51 am

  13. Moi aussi, Martin! RBW holds up well even when markets are red and jittery! I added to my position yesterday. Maybe another opportunity to add today if they don’t announce the closing of the financing? Bonne chance!

    Comment by Andrew — February 7, 2012 @ 9:08 am

  14. YNG (Yukon-Nevada) – I’ve been watching it since yesterday’s news release. I think the chart looks good but 930m Sh OS. Anyone else following this or have comments on the T.A? Thanks

    Comment by Andrew — February 7, 2012 @ 9:14 am

  15. Bert
    Yes you are right, I believe we are one of a kind.LOL

    Comment by John - BMR — February 7, 2012 @ 9:17 am

  16. A milder response from John than i expected, he even wished me lots
    of luck at the end. Anyway, i am still alive & kicking on this board.

    Comment by Bert — February 7, 2012 @ 9:21 am

  17. Martin

    I don’t know how to interpret your post on RBW. If you are getting
    negative, please be advised they didn’t intend to announce the
    closing of the financing until today & very seldom is any company
    on time. It may not even go up immediately after the announcement,
    it’s all according to what they have in mind.. Today, i am more
    optimistic than i was, when i bought my first share. R !

    Comment by Bert — February 7, 2012 @ 9:34 am

  18. Bert

    Martin is looking forward to part 2 of Jon’s interview in Vancouver – nothing negative about the post at all. I replied that I’m looking forward to it too! 🙂

    Comment by Andrew — February 7, 2012 @ 9:47 am

  19. Andrew/Martin

    I read it wrong, sorry !

    Comment by Bert — February 7, 2012 @ 9:57 am

  20. On the subject of BMR holdings: You originaly had a portfolio of stocks,regularly updated on weekends, now you just mention a random list of stocks which may or may not be mentioned again and none of you seem to own…VERY confusing!!!

    Comment by mike — February 7, 2012 @ 10:54 am

  21. Andrew

    CEV up 0.13, ZNR down .01. I hope i was of assistance.

    RBW is breathing some life, people are having to take positions
    at a little higher price.

    Comment by Bert — February 7, 2012 @ 11:22 am

  22. Bert

    I think you missed the point of my post? I’m sure there are traders today who have bought ZNR at .135 and sold at .14 perhaps 3 or more times and compounded their gains in addition to what they did yesterday. It’s not what you own its how you use it! 🙂 I could have sold and bought CEV a couple of times today but it would have been at a higher risk than flipping ZNR.

    Comment by Andrew — February 7, 2012 @ 11:43 am

  23. Andrew

    Maybe.. As long as we do ok, that’s the main part.

    Comment by Bert — February 7, 2012 @ 11:49 am

  24. Andrew

    Easier said than done, that is, to sell/buy,sell/buy the same stock
    the same day. I speak for myself now, i am a real expert after the fact.
    This stock started off this morning in the dumps, but patience paid off
    & it finally found it’s legs & now we have a more positive attitude.

    Comment by Bert — February 7, 2012 @ 11:59 am

  25. Definitely! Do you think CEV will close at or above 1.10?

    Comment by Andrew — February 7, 2012 @ 12:02 pm

  26. Andrew

    The high for the day so far is 1.16, it would be strong to close at
    it’s high or higher. I have a few for sale at $1.16… Although i
    realize patience pays off, one has take some off the table, as we
    move along. Good luck !

    Comment by Bert — February 7, 2012 @ 12:10 pm

  27. Andrew

    I should have said it would be very very positive to close at it’s
    high or higher, because it showed strength during the evening.
    Anyway, no doubt, you usually know what i mean. I talks fast, ha.

    Comment by Bert — February 7, 2012 @ 12:15 pm

  28. Hey BMR, when can we expect part 2 of interview with Johnston from RBW?

    Comment by db — February 7, 2012 @ 12:27 pm

  29. Previous work done by Braveheart at international properties,

    http://aris.empr.gov.bc.ca/ArisReports/31253.PDF

    Comment by Martin — February 7, 2012 @ 7:31 pm

  30. Should be ready within a few days, I’m thinking likely Monday….

    Comment by BMR — February 7, 2012 @ 7:53 pm

  31. Merci beaucoup, Martin – I shall take time to read the report and try to interpret it correctly which will be difficult. I wonder if the road that was upgraded but still only good for an ATV is the same one that is good for a Mercedez? 🙂

    Comment by Andrew — February 8, 2012 @ 6:12 am

  32. i posted the same report at 945am yesterday… post 19…

    Comment by db — February 8, 2012 @ 6:37 am

  33. Excellent work, Martin, thank u…..lots of good stuff in there…..from what I understand, there was another report done on the International from another geologist, and Moose Mountain is producing an updated report which is due soon as RBW has stated. Rumor has it, from a couple brokers I spoke with this morning, that RBW has indeed wrapped up its financing, so news should be coming out on that I suspect any day now….

    Comment by Jon - BMR — February 8, 2012 @ 7:24 am

  34. “i posted the same report at 945am yesterday… post 19”

    Thanks, db – but it doesn’t show on my screen? I’ve noticed that sometimes posts appear later? Did you draw any conclusions from the report, that you would like to share? Jon says there is lots of good stuff in it but I don’t recognize too much. 🙂

    Comment by Andrew — February 8, 2012 @ 7:35 am

  35. Jon I talked to Murray yesterday. He didnt give me a day but said this week for sure closing of financing. As far as Moose Mnt report he said they r still collecting data but by end of month there should be something out…db

    Comment by db — February 8, 2012 @ 7:46 am

  36. The thing that intrigues me most about the international property is that it is mostly untouched…metal price were at a low in the late 90s so it wasnt economically wise to mine, especially with the limited access. Braveheart has done a great job of prepping the property and as Jon has stated RBW will be hitting the ground running. Some of the historic grab samples look very promising.

    Comment by db — February 8, 2012 @ 7:56 am

  37. Thanks, db – I appreciate your input.

    Comment by Andrew — February 8, 2012 @ 8:03 am

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