8:00 am Pacific
The Venture “December Reversal” has clearly started after the intra-day all-time low of 494 Tuesday, December 15, the day prior to the Fed decision to raise interest rates for the first time in nearly a decade.
Below is a 6-month daily chart from John with several important highlights:
1. RSI(14), which became very oversold this month, has broken above a downtrend line going back to October and is showing strong up momentum at 50% after yesterday’s close;
2. The Venture this morning has pushed above a price downtrend line also going back to October;
3. The Index has broken above its EMA(8) and EMA(20) moving averages which are also reversing to the upside…
4. Sell pressure (CMF) is declining significantly and should change into buy pressure soon;
5. A bullish +DI cross appears imminent.
The 515 support should reassert itself on a monthly basis. Note the Fib. resistance levels – the first “wall” to come down should be 517.
The Venture is up 2 points at 513 as of 8:00 am Pacific. The TSX has gained 28 points while the Dow is down 36 points. North American equity markets close early today at 10:00 am Pacific.
Gold continues to look solid, perhaps preparing for a breakout above $1,080 resistance. The yellow metal is up $5 an ounce as of 8:00 am Pacific.
Comments Section
We have been experiencing some intermittent technical issues with regard to postings in the comments section since Tuesday. We are working on addressing this issue and we appreciate your patience and understanding. For now, please try using this post for all comments.
We wish all of our subscribers and readers a very Merry Christmas. We will be posting a separate Christmas message later today.
BMR Morning Musings resumes Tuesday, December 29, following the Christmas break.
Test. Folks, hopefully we have found at least a temporary fix to the comments section postings issues that arose intermittently beginning Tuesday. Please use this post for all comments for now. We appreciate your patience as we work toward solving this problem ASAP, especially given the fact it’s Christmas Eve.
Comment by Admin - BMR — December 24, 2015 @ 8:07 am
Maybe the selling was to participate in the PP?
Comment by Sameer — December 24, 2015 @ 8:13 am
Merry Christmas to you all.
Comment by ConcernedCitizen — December 24, 2015 @ 8:13 am
Jon, now is a good time to release the Regoci interview. It should keep investors interest up while waiting for the results.
Comment by Dan1 — December 24, 2015 @ 8:16 am
GGI
I guess we now know the assay results must not be that good or why would you do a financing right before they come out?
Comment by Greg — December 24, 2015 @ 8:19 am
To me, as David commented earlier, Sameer, looking at all of Tuesday’s rather strange GGI trading, it appeared to be institutional-related—and probably year-end related at the same time. Now that we know GGI has completed a financing, it’s possible Tuesday may have been the result of a last-minute entrant who had an existing position but wanted to grab the warrant. At least that explains the unusual market that day, which can put some minds to ease.
Comment by Jon - BMR — December 24, 2015 @ 8:19 am
Greg, again, they could not have completed a financing or granted stock options with any knowledge of assay results. One can look at it just the opposite, in fact – if Regoci was approached on a financing by some individuals who liked what they were seeing with regard to both Grizzly Central and Rodadero, it may have made perfect sense to grab the opportunity. It also puts him in a position of strength going into the New Year. If GGI hits big, these folks are rewarded handsomely, and Regoci doesn’t even have to worry about another imminent financing as he already has cash and the possibility of getting the 30-cent warrants exercised. So in my opinion, a smart strategic move. He’s a former broker. He knows what he’s doing on these issues. He’s put himself in a position of control, and that’s always a good thing. In terms of stock options, they certainly wouldn’t grant themselves 20-cent options, significantly above the current price, if they thought they could get much cheaper options anytime soon.
Comment by Jon - BMR — December 24, 2015 @ 8:23 am
Greg, I thought the same thing but I guess if they knew results were poor then whoever participated in the PP would be pissed knowing the company allowed them to participate in a PP knowing the results were poor, would make for bad relations. Does that make sense?
Comment by Danny — December 24, 2015 @ 8:24 am
Jon
But if he is so confident about what he was seeing why not wait and do the financing at a higher price? Plus I thought Regoci didn’t have any idea about the unusual trading the other day … Usually stuff like this is not good .
Comment by Greg — December 24, 2015 @ 8:29 am
NICE call on financing.
Comment by Barry R — December 24, 2015 @ 8:31 am
Jon/Danny
Read the rest of your post Jon and yours too Danny
Yes it does make sense
Comment by Greg — December 24, 2015 @ 8:31 am
The amount of financing is not that much Greg. It makes sense to get something in to the bank when you have run low on funds. We can rest easy now knowing that come the new year, GGI will be able to start drilling as soon as they want.
Hopefully future financings will be done at a higher level. I think that Regoci was right in taking some cash in now.
Comment by Tom UK — December 24, 2015 @ 8:39 am
Isn’t it a lot easier, Greg, just to plow ahead aggressively and not have to worry about getting bogged down in an open financing like so many companies destructively do? Think about it. He wants to keep the momentum going. Also, when I spoke with him regarding the Tuesday morning trading, he had absolutely no idea what it was related to. He assumed it was year-end related, that’s what it certainly appeared to be, and at the end of the day I believe he was correct. There’s no reason at all to believe he would have known about someone selling a position on Tuesday IF it was connected to the financing, otherwise I’m sure they would have lined up a cross. These things sometimes just happen and CEO’s don’t necessarily get a heads-up.
There are a lot of companies in this market that would love to be able to just announce a nearly $1 million financing. That can only be positive, Greg. They would only be getting that money if things were looking very good at the Grizzly, short of actual assays, so it’s a demonstration of positive developments and an expectation of success. A vote of confidence as indicated by nearly 6 million shares.
Comment by Jon - BMR — December 24, 2015 @ 8:39 am
I spoke to the IR company for GGI on Wednesday regarding drilling results and Mexico. In passing they told me that they had an idea as to why the sell order at market rate came in before the market opened. It has nothing to do with any rumours, tax loss selling or the private placement.
Jon, when do you think we will get the results? Are the labs on complete closedown between Christmas and new year, or will there be some progress with the testing during that time?
Comment by Tom UK — December 24, 2015 @ 8:46 am
The more I think about, the more I am good with the financing. It’s not a great deal of dilution and it gets it out of the way so they can move forward easily. Yes, hopefully the next financing is done at much higher prices.
Comment by Danny — December 24, 2015 @ 8:46 am
$200k of that financing is non-flow through. That can be used for drilling in Mexico. Having two drilling campaigns on two different properties will lead to plenty of news flow. If they can get enough holes drilled and reported at Rodadero, maybe this will be a source of cash in the not too distant future which could mean much less dilution of our share holding.
Comment by Tom UK — December 24, 2015 @ 8:52 am
No money = no drilling. The timing is odd since the company’s expecations of the results are high…..maybe this is why it’s a small PP and a bigger one later at higher prices?
Comment by DDD4 — December 24, 2015 @ 9:05 am
Is this the last day for tax loss selling?
Comment by DDD4 — December 24, 2015 @ 9:07 am
You’re right, DDD4. They did keep it relatively small – it’s not like they grabbed $2 million at these prices to create huge dilution. Regoci took just enough to put himself in a strong position, with a chance to do a much larger financing at significantly higher prices, or have the 30-cent warrants exercised, or both. It was a very wise move on his part IMHO. Cash is King in these markets, it really is.
Comment by Jon - BMR — December 24, 2015 @ 9:10 am
Jon
Did GGI have a million dollars to spend on drilling before they started at Grizzly? If so do you know if the entire 1million has been spent? We know they have drilled 5 holes right? So how many more holes do you think they can drill before they run out of money?
Comment by Greg — December 24, 2015 @ 9:13 am
They’ve obviously topped up their bank account, Greg, and they certainly would not have spent $1 million on 5 holes. They can keep hammering away, and raise more later at higher prices in a better overall market to limit further dilution. When you’re in a position of financial strength, there are so many advantages, and you create the best upside conditions for your stock price and not get jacked-around by vulchers who prey on weak situations.
Comment by Jon - BMR — December 24, 2015 @ 9:16 am
DDD4, yes, the last day for tax loss selling in Canada. In the US it will be Monday.
Comment by Danny — December 24, 2015 @ 9:31 am
Thanks…..last day to pick up some bargains….raised my bid.
Comment by DDD4 — December 24, 2015 @ 9:46 am
GGI – 1) I am hopeful results are out soon and will be good
2) The finance seemed to be taken down rather easily and shows confidence.
3) The PP now(which was minimal) leaves the shares to trade more freely after the results
4) I hope they didn’t take the money in anticipation of poor results.
5) CEO has remained very confident and has pumped up what he expects I hope this isn’t just another venture ploy
6) Being a ex broker im sure he knew the reason or likely reason of the weird trade a few days ago which doesn’t make me very happy
Merry Christmas
Comment by George — December 24, 2015 @ 9:53 am
Great call on the Venture, Jon! Merry Christmas!
Comment by STEVEN1 — December 24, 2015 @ 9:55 am
Noticing that WRR looks stronger as we approach year end?
Comment by STEVEN1 — December 24, 2015 @ 9:55 am
It should rock come January, Steven1. It was frustrating waiting for them to get to the drill stage this year, but they finally did, and I believe our patience will be handsomely rewarded over the next couple months.
Comment by Jon - BMR — December 24, 2015 @ 10:00 am
Canadian markets should be closed now, tax loss selling in Canada is over!!
Comment by Danny — December 24, 2015 @ 10:05 am
And it looks like a powerful finish to the year for the Venture, Danny, and a potential Gold breakout. Merry Christmas to everyone!
Comment by Jon - BMR — December 24, 2015 @ 10:15 am
have a great christmas jon & bmr staff,and all posters,ggi lineing up nicely,full steam ahead for the new year,should be a rewarding january and ukrainian christmas for me…..
Comment by tombc — December 24, 2015 @ 10:20 am
Wishing everyone a great Christmas and a healthy and prosperous New Year! My gut tells me 2016 is going to be much better for the Venture Exchange.
Comment by Danny — December 24, 2015 @ 10:20 am
Merry Christmas and happy holidays to Bullmarketrun people (Jon, John, Terry) and to all the posters here. Hope all your homes are filled with family friends and love this time of year and throughout the year. We are having a white Christmas here in northern B.C. And our home will be filled with the sounds of laughter and joy between great family and friend. We are truly blessed and give all the glory to God who sent his son to die for us and take away our sin and shame that all mankind will have a chance to be with him in glory. God bless you all.
Comment by Ed — December 24, 2015 @ 10:28 am
Amen Ed
Comment by Greg — December 24, 2015 @ 10:41 am
Steven1 yes WRR finish good !
Comment by Guy Delisle — December 24, 2015 @ 11:00 am
Merry Christmas to all. May you enjoy a long, healthy, and prosperous life. We are so blessed to be born in this country.
Cheers!
Dan
Comment by Dan1 — December 24, 2015 @ 11:24 am
Amen Ed as well, Merry Christmas to all!
Comment by DJD1 — December 24, 2015 @ 11:31 am
#6-We won’t know until the results come out,but EQT did the exact same thing before their results came out.They weren’t very good,so it’s possible that’s why they did a PP now.
Not saying this in hopes of that happening,but it does seem suspicious.Imo,if the results were expected to be very good,they would wait for any PP.
This same conversation was had before the EQT results on Stockhouse.I won’t be buying any GGI until I seen the results now.I’d been looking at buying before the results,but I won’t now.If they come out good,I can jump in then.
Comment by robinandthe7hoods — December 24, 2015 @ 11:52 am
robinandthe7hoods, there are many examples of strategic financings that have occurred very soon prior to a company delivering some outstanding assay results. One of the most famous examples here in B.C. of course was Eskay Creek, just before hole 109 (did they carry out that financing because they weren’t expecting good results? – hardly). Of course a lot of controversy later revolved around that, so companies are especially careful these days. As another reader pointed out, this situation with GGI is completely different than the one with EQT (apples and oranges comparison) and comes with a lot more information concerning the drilling than EQT ever provided. And rumor now has it, one of the biggest mining names in the world was involved in this particular GGI financing. Grizzly and Rodadero will both deliver the goods for GGI, and I believe this move by Regoci already demonstrates that. He understands leverage and he has put himself in a very strong position going into the New Year, results, and more work. Most CEO’s would give their left nut to be where he is at the moment with this.
Comment by Jon - BMR — December 24, 2015 @ 12:06 pm
That’s funny Jon. Left nut – but I agree. GGI, provided as much information that they legally could before assays. We are pretty much in the know with the exception of the XRF analyzer numbers and very little info on hole 5 other than the photos. It is interesting that Regoci’s year end message included the core photo from hole 5.
Comment by Dan1 — December 24, 2015 @ 1:24 pm
Here here Jon, fortunately for Steve he will be able to keep both of his, starting now, this is going to get very very, very interesting. Beauty!!
Comment by Tombc — December 24, 2015 @ 1:30 pm
If a major has taken up a fair chunk of the shares, will they have to give an early warning statement? I don’t know the percentages (1% being 1st threshold?) but with dilution of around 9% in new shares there could be a possibility of the major easily having 5% of the company.
If a major has taken a position then Regoci has certainly made a smart move in getting them on board.
Comment by Tom UK — December 24, 2015 @ 1:47 pm
Lol Jon
But please tell us how you really feel…..
Merry Christmas to you and the rest of the BMR staff and all the great people that post here too!
May 2016 be the year of the Grizzly!!
Comment by Greg — December 24, 2015 @ 2:37 pm
Robin – why would GGI Wait if they could raise some cash now with minimal dilution if it’s available? Less of a hang over on the stock now.
Did you buy GEM.V? Deal is imminent. This will be a huge mover if and when a deal get signed finally.
Comment by George — December 24, 2015 @ 4:13 pm
Merry Christmas to all. I wisk that I could be enjoying a White one, but being home with my daughter is the most important. I thank the Lord for all he gives us. I saw on the WC a 7 year old boy lost his life in Mississippi yesterday in that killer tornado. Many lost their lives but it was so sad to think his presents were wrapped and in the attic ready to be brought down for santa and he will never see them. We dont know why the Lord wanted him so early, we can only be thankful for each and every day he gives us. God bless everyone on this board.
Comment by dave — December 24, 2015 @ 4:47 pm
Jon, one of the biggest mining names in the world taken a position in GGI. Could it be Tech ressources? After all they are butted right up against the Southern border of GGI’s property. If that’s the case then I suspect they are in it to make a sizable gain.
Comment by Dan1 — December 26, 2015 @ 8:48 am
Dan1, I was referring to an individual, not a company, which is why I believe this particular PP was very strategic in nature. As far as Teck is concerned, there are some obvious potential future synergies between the major and GGI given that Teck borders GGI on not just the Grizzly, but the Red Lion in north-central B.C. Teck is very bullish on its optioned Kliyul Project which they drilled over the summer, so at some point the entire area (Kliyul-Red Lion) will come into play. You can be sure that Teck is watching developments in the Sheslay district very closely at the moment.
Comment by Jon - BMR — December 26, 2015 @ 10:36 am
Could that individual be Robert Freidland? Rob McCewan?
Comment by George — December 26, 2015 @ 7:10 pm