Gold is off slightly in overnight trading…as of 2:00 am Pacific, the yellow metal is off $7 an ounce at $1,767…Silver has lost 9 cents to $35.32…Copper is 2 pennies lower at $3.82…Crude Oil, which has advanced for 7 straight sessions, has shed $1.09 a barrel to $108.68 while the U.S. Dollar Index is up slightly at 78.49…
European shares are weaker in early trading while stock index futures in New York, several hours ahead of the opening bell, are pointing toward a marginally lower open on Wall Street…due to unexpected travel, tomorrow’s “Morning Musings” will be posted later than usual at approximately 8:30 am Pacific…
Saddle Up For The Silver Ride
Silver jumped over 5% last week and is on the cusp of a breakout…for many weeks now, we’ve been emphasizing how bullish the “big picture” is for Silver which is why we’ve been encouraging readers to perform their due diligence on numerous good quality Silver stocks (exploration companies plus producers)…below is another chart update from John on Silver (this was completed on Saturday, by “next week” he means this week) that clearly shows increasing momentum in this market…
“Strong Plays”, “Watch Lists” And The “Sleeper List”
We’ve mentioned a lot of good companies over the last few months, and since we started in the summer of 2009, so to provide some focus going forward (especially considering how bullish the markets could be) we’ve created five separate lists (the “BMR Group”) which include a total of 35 companies…the categories are as follows…
“Strong Play” Group A
“Strong Play” Group B
“Watch List” Group A
“Watch List” Group B
“Sleeper List”
The “Strong Play” groups are those companies that we believe (based on fundamental and technical considerations) have the best chance of superior market performance over the short to medium term and, in particular, over the next six to nine months…from a technical perspective, each of them also has a rising 300-day moving average (SMA) which shows they are already market leaders and out-performers…the “A” list is considered to be marginally superior to the “B” list in terms of potential price appreciation…
The “Watch Lists” (also separated into “A” and “B” levels) are excellent prospects for the balance of the year that should be watched closely for additional news and developments that may warrant an upgrade in our system…
The “Sleeper List” consists of companies whose market caps have been knocked down considerably for various reasons but could rebound abruptly and therefore offer excellent potential…as the saying goes, buy low and sell high…Cadillac Mining (CQX, TSX-V) was a great example of that recently…
We will periodically update our lists (perhaps once a week) and that may include deletions and/or additions…please read our disclaimer…we are not making “buy”, “hold” or “sell” recommendations…we are merely putting companies forward that we believe are worthy of our readers’ due diligence…we will be commenting on each of these 35 situations over the coming week…
Strong Play Group “A” (5)
Rainbow Resources (RBW, TSX-V), Wildcat Silver (WS, TSX), Cap-Ex Ventures (CEV, TSX-V), Focus Metals (FMS, TSX-V), Adventure Gold (AGE, TSX-V)…
Strong Play Group “B” (5)
Richmont Mines (RIC, TSX), Great Panther Silver (GPR, TSX), Scorpio Mining (SPM, TSX), Alexco Resources (AXR, TSX) and GoGold Resources (GGD, TSX-V)…
Watch List Group “A” (10)
Cascadero Copper (CCD, TSX-V), Gold Bullion Development (GBB, TSX-V), Abcourt Mines (ABI, TSX-V), Kaminak Gold (KAM, TSX-V), ATAC Resources (ATC, TSX-V), RJK Explorations (RJX.A, TSX-V), Corvus Gold (KOR, TSX), Gold Standard Ventures (GV, TSX-V), Canaco Resources (CAN, TSX-V), Sprylogics International (SPY, TSX-V…
Watch List “B”(15)
Spanish Mountain Gold (SPA, TSX-V), Arian Silver (AGQ, TSX-V), Geologix Explorations (GIX, TSX), St. Andrew Goldfields (SAS, TSX), Seafield Resources (SFF, TSX-V), Amarc Resources (AHR, TSX-V), Sunridge Gold (SGC, TSX), McEwen Mining (MUX, TSX), Volta Resources (VTR, TSX), Golden Predator (GPD, TSX), Hana Mining (HMG, TSX-V), Prodigy Gold (PDG, TSX-V), Encanto Potash (EPO, TSX-V), Huldra Silver (HDA, TSX-V), iSign Media Solutions (ISD, TSX-V)…
“Sleeper List” (5)
GoldQuest Mining (GQC, TSX-V), Currie Rose Resources (CUI, TSX-V), Greencastle Resources (VGN, TSX-V), Rackla Metals (RAK, TSX-V), CMC Metals (CMB, TSX-V)…
Comments…you’ll notice there are two non-resource companies on the above lists – Sprylogics International (SPY, TSX-V) and iSign Media Solutions (ISD, TSX-V)…yes, there are a number of companies we have probably overlooked but as we mentioned at the top, our system has some built-in flexibility for additions and deletions as the weeks go by…as always, perform your own due diligence…
John has two “Strong Play” company charts to share this morning…Great Panther Silver (GPR, TSX) has a growing production profile and will be a fabulous performer if Silver does what we believe it could do – hit a new all-time high – sometime over the next 12 months…at the moment, the technical action in GPR is bullish and suggests Silver could make a nice upside move in the very near future…
Note: John, Jon and Terry do not hold positions in GPR.
Adventure Gold (AGE, TSX-V) is a company with a strong management team that we have been following closely since it was trading in the low 20’s in September, 2010…AGE held up very well in a bad market last year…it holds a large portfolio of properties in Quebec and Ontario, some of which are very promising, but AGE’s “company builder” project in our view is Pascalis-Colombiere (Gold) near Val-d’Or…Pascalis is strategically located (immediately adjacent to Richmont’s Beaufor Mine) and the mineralized system keeps expanding – now believed to be over a 3-kilometre strike, up to 900 metres’ depth and 500 metres wide…we made a site visit to Pascalis last summer, which confirmed our bullishness on this project, and just recently AGE commenced a 15,000 metre Phase 3 drill program…we hope investors took note of a sentence in Richmont’s news release last Thursday on its 2011 financial results…President and CEO Martin Rivard stated, “I would also note that Richmont management continues to actively evaluate external sources of growth for the corporation through our strategic evaluations of potential acquisitions and partnerships”…we know Richmont is paying close attention to results at Pascalis…this is pure speculation on our part, but additional good results from Pascalis may convince Richmont to try to acquire the property or make a takeover offer for all of Adventure Gold…Pascalis encompasses the former producing (and very profitable) L.C. Beliveau Mine…Adventure Gold also holds a 100% interest in the Beaufor West and Beaufor North Properties which also may be of interest to Richmont…the AGE chart is looking strong and once resistance is cleared at 60 cents, look out…AGE has been waking up recently and closed Friday at 50 cents for a modest market cap of $31 million…we were impressed with the company’s completion in late December of a $1.75 million financing above the market (45 cents) and all in “hard” dollars…
A company not on any of our lists yet, though it probably should be, is Newstrike Capital (NES, TSX-V) which on Friday announced a $24.8 million bought deal financing…NES is having some great exploration success (Gold) in Mexico and could certainly still move higher (see John’s chart below) despite an already healthy market cap in excess of $300 million…
Note: John, Jon and Terry do not hold positions in NES.
Thanks BMR for the strong plays & watch lists.
Your tip for the day
Buy a few when Jon takes a position in a particular stock
Buy more than a few, when Jon & John takes positions in a particular stock
Sell the farm & put it all in any stock that Jon, John & especially Terry takes positions.
Comment by Bert — February 27, 2012 @ 4:57 am
CJC and GCU halted. A day that many CJC investors have been patiently waiting for, but which way will it go? 🙂
Comment by Andrew — February 27, 2012 @ 5:51 am
My tip for the day is not to follow anyone and do your own dd.
Comment by Mark — February 27, 2012 @ 5:57 am
Mark – My tip for the day is not to follow anyone and do your own dd.
Bert – Of course, you know i was joking. What you suggested is right on,
except unless, you see Warren Buffett buying into a particular stock.
Have a good day. R !
Comment by Bert — February 27, 2012 @ 6:11 am
CJC
I never did have a position in CJC, but i am not optimistic,
when looking at pre-bidding, that the news, whatever it is,
will drive the stock. I hope so for the sake of those holding.
Comment by Bert — February 27, 2012 @ 8:54 am
Here is the news
Today, Canada Rare Earths Inc. (“Canada Rare Earths” or “the Company”) (tsx.v:CJC) /quotes/zigman/4257491 DE:YXEN +42.06% (otc-bb:CJCFF) introduces a new strategic direction with the acquisition of three (3) promising new graphite project acquisitions, all located in southern Quebec
Comment by Paul — February 27, 2012 @ 9:03 am
Market did not like GCU news, down 20 cents was down 30 cents earlier…
Comment by Greg — February 27, 2012 @ 9:17 am
Newstrike is way undervalued compared to its peer,Torex, in my opinion.. which is not worth much, 43-101 coming out by the end of march, recent financing, no warrants.. could be very exciting over the next 30-60 days.
Comment by Greg — February 27, 2012 @ 9:20 am
Bought 42000 GQC average cost 0.11148$, lets wait the gap up :-)!
Comment by Martin — February 27, 2012 @ 10:17 am
Just notice I didn’t attach the following news on the Goeland Project
“THE GOELAND RARE EARTH PROJECT
In relation to the Goeland rare earth project, the Company’s exploration focus over the past year, the Company has now received all results from its phase 1 drill program as of late last week. Although the Company has encountered and tested a complex and dynamic rare earth bearing system through a widely spaced 13 hole phase 1 drill program at Goeland, with these complete results the Company has concluded that this program has failed to encounter a system that displays the requisite rare earth grade, consistency and thereby economic potential to warrant further exploration and development work on the property. In the interests of full disclosure, the Company will be publishing the full results on the Company’s website for further review in the coming days”
Comment by Paul — February 27, 2012 @ 10:26 am
cjc, OUCH! might want to hold on here though, graphite very hot,getting hotter.
Comment by mike — February 27, 2012 @ 10:30 am
Mike – cjc, OUCH! might want to hold on here though, graphite very hot,getting hotter.
Bert – That’s what i am being told about graphite. I’m in at 0.20, suppose
it is only for today/tomorrow. R !
Comment by Bert — February 27, 2012 @ 10:35 am
CJC
Difficult to judge the bottom & 0.20 wasn’t, therefore i averaged down. With only 18 million
shares o/s, 8 million less than RBW and a new graphite life, i feel fairly comfortable holding
this stock for awhile, that is, if the price don’t improve over the short term. R !
Comment by Bert — February 27, 2012 @ 2:11 pm
Why didn’t you mention Trueclaim TRM on your list ? Thank you.
Comment by Banny — February 27, 2012 @ 2:28 pm
Hi BMR, any comments about GCU NR? Why this sell out?
Comment by Peyman — February 27, 2012 @ 2:39 pm
Bert- Check out GXY. Upcooming graphite play. Only 6 million OS. HAve to still do some research on this one, stumbled on it today…db
Comment by db — February 27, 2012 @ 3:06 pm
Maybe a dead cat bounce on CJC but my due diligence tells me this is a stock and company to avoid. The management team bounce from one failed venture to another. But I wish anyone holding it the best of British! 🙂 Having said that it’ll probably be back to high .20s in short order.
Comment by Andrew — February 27, 2012 @ 3:11 pm
db – Mark mentioned some Graphite juniors on Friday including GXY (Galaxy Capital Corp), it has 12,042,500 Sh OS. It had a nr on Thursday: Galaxy Capital Corp. Acquires Sun Graphite Project in Quebec
Comment by Andrew — February 27, 2012 @ 3:20 pm
Looks as if everyone has gone sour on management, are they the same bunch, who
watched the price move up considerably awhile back. I haven’t completed any dd,
jumped in for a quick play. I win some & i lose some, time will tell. I will
state though, that someone bought over 2.6 million shares today, so i have
lots of company.
Comment by Bert — February 27, 2012 @ 3:24 pm
Peyman – I was really surprised to see the market’s reaction to GCU’s nr. I guess it just didn’t have 4 or 5 million ounces and maybe that’s what was expected? It was, however, a sell on news day. Nearly took a position on Friday and relieved I didn’t!
Comment by Andrew — February 27, 2012 @ 3:25 pm
sorry 12million OS on GXY
Comment by db — February 27, 2012 @ 3:26 pm
Bert – this management team have hopped, skipped and jumped through, South America, Central America, Canada, Tanzania – all failures (so far). I guess if they keep trying they’ll eventually succeed. Research Animus and Sun Tzu Ventures in your DD and Canada Gas, Canada Gold, Canada Rare Earths etc.
Comment by Andrew — February 27, 2012 @ 3:30 pm
Richmont Mines Announces Management Change
MONTREAL, QUEBEC, CANADA–(Marketwire – Feb. 27, 2012) – Richmont Mines Inc. (TSX:RIC)(NYSE Amex:RIC), (“Richmont” or the “Corporation”) wishes to announce the resignation of Martin Rivard, its President and Chief Executive Officer. Mr. Rivard’s resignation will be effective August 31st, 2012. The Corporation has commenced a search for a new President and Chief Executive Officer and expects to have the position filled prior to Mr. Rivard’s departure.
Comment by Andrew — February 27, 2012 @ 3:39 pm
Andrew
For goodness sake, if we are looking for future producers on this exchange, we may have
a long wait. Most teams out there have been hopping, skipping & jumping, since i have
been involved in the stock market. Anyway, i have put some cash forward & you can be
sure i will be watching closely. I only need a one penny gain for another successful
trade. I’ll take any amount, if it’s a profit. R !
Comment by Bert — February 27, 2012 @ 3:48 pm
BMR- now when are we getting the second half of RBW interview? Are you guys trying to wait until an NR to release it? MMR must be very near…db
Comment by db — February 27, 2012 @ 3:57 pm
DB
I’m not making much headway with Galaxy, i don’t think
they have a website as yet… A company coming out of a
shell, which has set up a deal to earn 100% interest in
3 properties in Quebec. Similar to CJC except they don’t
have as many shares out. R !
Bert
Comment by Bert — February 28, 2012 @ 4:21 am
Gentlemen, so what ever became of SD.V , are they regrouping are they still going to do ANYTHING other than take everyones Cash whom invested with them?
Comment by nikolay — February 28, 2012 @ 5:36 am
Hi db, I had some unexpected travel yesterday, and I’m away again today, so that interfered with my plans…..I will be able to reassess the timing today…..my hunch, and others’ as well, is that RBW will be putting out news in time for PDAC…….we may want to interview Johnston again as a result, I’m not sure……..in any event, RBW is our #1 pick out of 35 and that says a lot…….there is a chance this could really explode very soon if the news is positive from their geological consultant and there’s no reason to believe it won’t be based on everything that has been reported so far…….
Comment by Jon - BMR — February 28, 2012 @ 6:03 am
Silver confirming long term trend, breaking 40 weeks sma on 2.5 years charts wich is very encouraging as well
Comment by Martin — February 28, 2012 @ 6:18 am