Gold, after a dip down and a move back up yesterday, is off $8 an ounce as of 4:45 am Pacific…Silver is 6 cents lower at $31.65…Copper is off a penny at $3.67…Crude Oil is down slightly at $104.08 while the U.S. Dollar Index is up one-quarter of a point at 79.80…
Thomson Reuters GFMS looks for Copper prices to remain constrained in the short term before improving in the second half of the year…Sanjay Saraf, research director for base metals at Thomson Reuters GFMS, outlined the consultancy’s outlook yesterday during the release of the Copper Survey 2012 in conjunction with CESCO Week in Santiago, Chile…
Crazy Things That Governments Do
As individual investors, one of the biggest risks we face is government…that was clearly in evidence again this week when Argentina decided to nationalize local oil company YPF, controlled by Spain’s Repsol, which apparently scuttled years of planning by China’s Sinopec Group to buy the South American company (the Argentinian government holds a 40% interest in YPF which is the original mistake)…anger mounted in Europe and Latin America yesterday at the nationalization…on a visit to Mexico, Mariano Rajoy, the Spanish Prime Minister, expressed “deep unease” with Argentina’s move and said it lacked “any justification or economic reason”…Mexican President Felipe Calderón, said it best when he called the nationalization “lamentable”…he added, “No one in their right mind is going to invest in a country that expropriates investments”…not surprisingly, shares in companies with interests in Argentina have been affected the last couple of days…Lumina (LCC, TSX-V), for example, has shed $1.29 or 7% the last two days…
Canadian Common Sense
On rare occasions a government will actually do something sensible when it comes to the resource industry…the Canadian federal government will limit the ability of environmental groups to intervene in reviews of major resource projects…Natural Resources Minister Joe Oliver said yesterday that Ottawa will soon table legislation that will reduce the number of projects that undergo federal environmental assessment by exempting smaller developments completely and by handing over many large ones to the provinces…the government, thankfully, will also bring in new measures to prevent project opponents from delaying the assessment process by flooding hearings with individuals who wish to speak against the development…
Today’s Markets
Asian markets were up sharply overnight with China’s Shanghai Composite gaining 46 points or nearly 2% to 2386…as John’s chart pointed out Monday, the Shanghai Index is looking bullish and a major breakout in the coming weeks seems very possible – it’ll be important to watch that market closely…
Shares are down in Europe this morning…minutes out of the Bank of England showed that only one Monetary Policy Committee member still supported quantitative easing , with ultra-dove Adam Posen giving up his long-standing call for more stimulus…also today, European Central Bank policymaker Jens Weidmann told Reuters that Spain should take care of its own debt woes and ruled out a third long-term financing operation (LTRO)—or injection of liquidity—from the ECB…
Stock index futures in New York as of 4:45 am Pacific are pointing to a mildly negative open on Wall Street…the Venture Exchange closed down 10 points to 1422 yesterday…for the year, the Index is now down 4% and has shown a trend very similar to 2005 when it rose significantly in January and February, and then plunged in March and April…from mid-May onward in 2005, however, the Venture was exceptionally strong and gained 40% by the end of the year…
Strike Graphite (SRK, TSX-V)
Graphite plays are performing well in this current environment – they have certainly been the “flavor”…an excellent example is Strike Graphite (SRK, TSX-V), which has a fabulous chart as John outlines below…as a result, we’re adding SRK to our “Watch List Group A”…SRK, which has approximately 42 million shares outstanding, gained 7.5 cents yesterday to close at 38.5 cents on volume of just over 1 million shares…
Note: John, Jon and Terry do not hold positions in SRK…
Rainbow Resources (RBW, TSX-V))
Encouraging technical signs are showing up in the chart for Rainbow Resources (RBW, TSX-V) which reversed intra-day yesterday to close at 20 cents…an insider buying trend is beginning to emerge, with CEO Brian Murray and director Jim Decker adding to their positions just recently…John’s 4-month daily chart below shows a potential reversal in momentum given the positioning of the RSI(14) and Slow Stochastics…
Note: John and Jon both hold positions in RBW (Terry does not).
Spanish Mountain (SPA, TSX-V)
Spanish Mountain (SPA, TSX-V), like many stocks, has taken quite a beating in recent weeks but the chart is now clearly giving encouraging signs and that may also be an indication that this decline in the Venture could be drawing to a close…SPA is developing a world-class asset with its Spanish Mountain Gold Project in central British Columbia, and current infill drilling is expanding the resource…SPA is down about 40% for the year but appears to have found strong support in the low-to-mid-40’s…
Note: John, Jon and Terry do not hold positions in SPA.
SRK – we discussed it in comments last Friday. Monday was the entry, for those new to SRK, at .315 – a nice gain followed in 24 hours.
Comment by Andrew — April 18, 2012 @ 4:06 am
The Wooden Bowl (posted to let you know i am still alive & kicking)
A frail old man went to live with his son, daughter-in-law,
and four-year-old grandson.
The old man’s hands trembled, his eyesight was blurred, and
his step faltered.
The family ate together at the table. But the elderly grandfather’s
shaky hands and failing sight made eating difficult.. Peas rolled
off his spoon onto the floor.
When he grasped the glass, milk spilled on the tablecloth.
The son and daughter-in-law became irritated with the mess.
‘We must do something about father,’ said the son.
‘I’ve had enough of his spilled milk, noisy eating, and food on
the floor.’
So the husband and wife set a small table in the corner. There,
Grandfather ate alone while the rest of the family enjoyed dinner.
Since Grandfather had broken a dish or two, his food was served in
a wooden bowl.
When the family glanced in Grandfather’s direction, sometimes he had
a tear in his eye as he sat alone.
Still, the only words the couple had for him were sharp admonitions
when he dropped a fork or spilled food.
The four-year-old watched it all in silence.
One evening before supper, the father noticed his son playing with
wood scraps on the floor.
He asked the child sweetly, ‘What are you making?’ Just as sweetly,
the boy responded, ‘Oh, I am making a little bowl for you and Mama to
eat your food in when I grow up. ‘
The four-year-old smiled and went back to work.
The words so struck the parents so that they were speechless. Then
tears started to stream down their cheeks.. Though no word was spoken,
both knew what must be done.
That evening the husband took Grandfather’s hand and gently led him back
to the family table.
For the remainder of his days he ate every meal with the family. And for
some reason, neither husband nor wife seemed to care any longer when a fork
was dropped, milk spilled, or the tablecloth soiled.
On a positive note, I’ve learned that, no matter what happens, how bad it
seems today, the stock market does go on, and it will be better
tomorrow.
I’ve learned that you can tell a lot about a person by the way he/she handles
four things: a rainy day,the elderly, lost luggage, and the stock market.
I’ve learned that making a ‘living’ is not the same thing as making a ‘life.’
I’ve learned that life sometimes gives you a second chance & the stock market
will do just that.
I’ve learned that you shouldn’t go through life with a catcher’s mitt on both hands.You need to be able to throw something back sometimes.
I’ve learned that if you pursue happiness, it will elude you.
But, if you focus on your family, your friends, the needs of others, your work
and doing the very best you can, happiness will find you.
I’ve learned that whenever I decide something with an open heart, I usually make the right decision.
I’ve learned that even when I have pains, I don’t have to be one.
I’ve learned that every day, you should reach out and touch someone.
People love that human touch — holding hands, a warm hug, or just a friendly pat on the back.
I’ve learned that I still have a lot to learn.
Comment by bert coish — April 18, 2012 @ 5:23 am
Nice post – Bert, thank you and welcome back. 🙂
Comment by Andrew — April 18, 2012 @ 5:46 am
thank you Bert… engaging words for the youngins….
Comment by Jeremy — April 18, 2012 @ 6:03 am
“””Always in a rush, slow down please !!!””””
What is this life if full of care,
We have no time to stand & stare,
No time to stand beneath the boughs,
And stare as long as sheep & cows.
Comment by bert — April 18, 2012 @ 6:09 am
Thanks Bert – Needed that today – good timing
Comment by pete — April 18, 2012 @ 6:11 am
thank you Bert…for the reality check that some times we all need
Comment by Charles — April 18, 2012 @ 6:18 am
Bert THANK YOU for a wonderful reminder
wonderful post
Comment by ChartTrader — April 18, 2012 @ 6:26 am
nice to see you back
Comment by ChartTrader — April 18, 2012 @ 6:27 am
It’s a game my friends, where the 1% vs 99%. When the 1%
get their fill from the weakest amongst us, they will find
a way to do it all over again. As BMR stated this a.m., it’s
all about stories, but stories do lose their lustre & that
is when we bail. I am far from perfect playing this game, in
fact, i may be able to tell the story better than i am able
to play the game, but i do know that we need something to
prompt the writers to tell their stories. I have stated
before, that i feel the Yukon will propel us forward & may
i remind you, there are lots of stories to be told up there.
R !
Comment by bert — April 18, 2012 @ 7:37 am
yes, srk, been in since .28. the tsx.v will no doubt touch 1400 for a recent double bottom. if it breaks below that we may have the market crash that some analysts called for in november. it can be a long summer.
Comment by dave — April 18, 2012 @ 7:55 am
just a reality check… in 3 months, I have lost a sister in law, my mum, a second sister in law with ovarian cancer, and a daughter who has cystic fibrosis is in hospital with a lung infection… where the final recovery bar is never known… and my wife is freaking since her son of 16 died from the disease…
so give your kids a hug, your wife/husband a hug and a smooch, and call your mum if you can… and your dad too!!!
we never know when TAHT call will come… life is not in the markets or in the stories… its in your hands… be an artist!!
Perspective …. simply perspective…
see what you started Bert!!!!
Comment by Jeremy — April 18, 2012 @ 8:21 am
i think we are going to the crapper, not so sure srk will stay up if this continues. charts and ta are great but can change in a flash on the venture. we may be approaching the “cash is king” stage again
Comment by dave — April 18, 2012 @ 8:22 am
GBB is very likely that it cannot keep up at 12 cents level… suggest not to touch at this point… my prediction is : it will go 10 cents level very soon. TYP seems to be in a stagnant pool and this is my favorite.
Comment by Theodore — April 18, 2012 @ 8:25 am
just as I thought. That huge bid on srk at .36 of 127k just got pulled. careful with the money people.
Jeremy, I feel for you, your in my prayers.
Comment by dave — April 18, 2012 @ 8:30 am
Dave – I think you’re right, the countdown is about to start. There’s nothing out there that I want to touch right now, even though many stocks are at fire sale prices. I need out of RBW but its got no liquidity, if I sell then its down below .13 in a flash and I know that gap is going to close.
Comment by Andrew — April 18, 2012 @ 8:35 am
Jeremy – for what it’s worth you have my sincere sympathy and empathy. My brother has just been released from several weeks of a hospital stay following a brain haemorrhage. He is not doing well and I’m trying to get him back into hospital – he’s in England and I’m in Canada so its not easy. My sister has COPD and needs lungs, I have a lung available. I offered it to my father but he was not strong enough for the transplant. I hope your daughter is quickly over her infection and that the rest of the year is good to you and your family. 🙂
Comment by Andrew — April 18, 2012 @ 8:51 am
Andrew- I feel for you 2 on both counts. My prayers for you too. As for RBW, I said 2 weeks ago it was coming down. One poster told me I was wrong and it was in an uptrend. I always stated back to last year, aside from charts and TA, get a feel for what is happenning forward with markets and any individual stocks. My blessings to ya.
Comment by dave — April 18, 2012 @ 9:03 am
thx all… didnt mention it for that but it is accepted with gratefulness… Andrew… well.. you cant know what you havent experienced…. and distance with family can work with you or against you.. emotional currency is expensive isnt it!!:)
Dave – thx mate..
on a side note with the fomc mtg next week.. will QE be brought back onto the table…????? just a question..
Comment by Jeremy — April 18, 2012 @ 9:33 am
Andrew – sorry… meant to suggest that we both have experienced and thus know… and many others have as well … allows us to understand… cheers
Comment by Jeremy — April 18, 2012 @ 9:34 am
KEX had news of a 43 meter zone of graphite bearing zone on its property in new zealand.
Comment by Ed — April 18, 2012 @ 9:35 am
Jeremy — See what you started Bert.
Bert — It’s about time we learned of what others’
have to go through & that puts the stock market in a
different light. In fact the dismal market pales in
comparison to health problems. We & that includes me,
often complain about trivial matters, but what really
matters in life is life itself, being able to fully
enjoy the wonders which surround us. Unfortunately some
are unable to do just that, because of illnesses, worries
& concerns inflicted on them. I feel sorry for any troubled
soul out there. R !
Comment by bert — April 18, 2012 @ 9:58 am
Major support at just above 1400. I would just as soon
see it move down there today & have it over with. At
least, we would know if there’s any way of supporting
this troubled market. R !
Comment by bert — April 18, 2012 @ 10:12 am
Countdown is on 10 points to go. 🙂
Comment by Andrew — April 18, 2012 @ 10:56 am
Thanks for your note on your intentions to sell RBW Andrew.
I’ll put my order at 15 so that when you flake out and sell, I pick up your shares.
You need balls of steel to steer through this market – not for people like you.
Look at the big picture – don’t let your nerves get the best of you – that’s what separates the men from the mouse.
Comment by Alex — April 18, 2012 @ 11:51 am
Some further downside will happen. We will challenge support at 1400 and perhaps even as low as 1300 by summer. I think the US markets are currently creating a H&S pattern as did the TSX and CDNX so we should see the US markets correct in May-Jul. July should be a great month to pick up some beaten up stocks.
I cant believe how cheap the gold stocks are. VTR, CAN, LVN, KAM, ATC are all great stock that should have an abrupt V-shape recovery once the sell off materializes. Own the bigger names first to capitalize on the rebound and invest in the laggard names (micro-caps) thereafter. RBW may see additional downside to come.
Other stocks to watch: MAY, LEX, KEX, KSK, CEV, WS, RGT, AAA, RIC, GIX, LMR, AAA, FED, PPI.
Start to dabble into the fertilizer stocks. FED has been brutally beaten up, but should have a huge run up in Q3-Q4. I’m predicting that fertilizer stocks amongst the gold stocks will be the best investments for Q4.
Comment by Andrew M — April 18, 2012 @ 1:46 pm
Bert – well said mate…. and Andrew M … it will be like throwing darts in a fish barrel… I invested 100K in Dec 2008 .. I wrote some s/ware to track the stocks I bought, and checked the $$ that they were trading at in July 2008…. wonder what that number was….. hmmmmmmmmm
1.3 million……. true story…. and now THATS a story!!
Comment by Jeremy — April 18, 2012 @ 3:49 pm
Sunridge (V.SGC)
Keep an eye on SGC next week,which is one of my favourites:
The information provided below is from analysts, newsletters and other contributors.
Please contact the company and visit its website before making an investment decision.
Expert Analysis
Jeff Wright, Global Hunter Securities (4/16/12) “Sunridge Gold Corp. is making
significant progress at the Asmara North projects in Eritrea; we are anticipating
the company will publish two studies in the coming month: a feasibility study on
the Debarwa project and a prefeasibility study on the larger Asmara North projects.
We are encouraged by the progress the company has made in a challenging jurisdiction.
We believe that Sunridge will begin to stand out from the pack as it makes significant
progress toward production in the coming year.”
Adam Lucas, Ocean Equities (2/22/12) “Sunridge Gold Corp. has announced a new higher-
grade independent resource on the Adi Nefas zinc-gold-copper volcanogenic massive
sulphide deposit, part of its Asmara North project in Eritrea. The new Indicated resource
in the primary zone includes 1.8 Mt at 10.05% zinc, 3.3 g/t gold, 1.78% copper and 115 g/t
silver. . .the level of drilling and detail that has been completed as part of the
prefeasibility study on Northern Asmara assets has the potential for at least 90% of the
Indicated resource to convert into reserve during the completion of a full feasibility study.”
Christopher Welch, Ocean Equities (2/16/12) “The location of all of Sunridge Gold Corp.’s
assets are within close proximity to the capital city of Asmara, and pending feasibility
studies are due in Q112 on all of its advanced projects. Entry to Sunridge at this valuation
offers significant upside potential throughout 2012.”
The Gold Report Interview with Peter Grandich (2/10/12) “The Chinese have announced a major
investment in Eritrea and are talking about doing more. It’s extremely good for Sunridge Gold
Corp. . .once Sunridge’s studies are in, Nevsun, another company or Sunridge will develop it.
It’s close to getting updated resources on multiple projects, so it’s just too compelling. Even
though they’ve moved up somewhat, Sunridge shares are still substantially lower than their 52-week
high. This is a key year for Sunridge. It’s gone through tough times. Its stock went down to pennies
on the dollar. If it demonstrates what I think it’s going to in these reports, no matter that it’s
in Eritrea, it should have a much higher valuation. Some people that I’ve met who are familiar with
Sunridge believe its Emba Derho zinc-gold-copper VMS deposit is bigger than Nevsun’s Bisha project.
That says a lot.” More >
Stefan Ioannou, Haywood Securities (2/6/12) “Sunridge Gold Corp. released an updated NI 43-101 compliant
resource estimate for the company’s 100%-owned Emba Derho copper-zinc-gold-silver volcanogenic massive
sulphide (VMS) project in Eritrea. . .the deposit features a substantial near-surface gold oxide cap as
well as a high-grade copper supergene enrichment zone.”
Comment by Bert — April 18, 2012 @ 4:35 pm
Alex – If Andrew was looking at the big picture, he would have sold it at .28.
Who wouldn’t mind buying it at a price of .15 – that is strong support area.
Comment by dave — April 18, 2012 @ 8:00 pm
8:15 Nfld time.
Wake up B-M-R-ers, we should have a good day today, that is, if the weekly jobless claims,
due out later this a.m. is positive. Spain had a good auction, but it is difficult to
predict with accuracy anything these days, ask Jon and/or John. Anyway, we are still alive
& that’s a positive. R !
Comment by Bert — April 19, 2012 @ 2:54 am
damn its 7:07 in Ontario.. and all is well too… wow… who knew:)
Comment by Jeremy — April 19, 2012 @ 3:17 am