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| Blue Pearl Mining (BLE TSX $9.49) and Tara Gold Resources (TRGD Pink Sheets $1.25) |
| Thursday, December 28, 2006 |
Recently on MCM, I mentioned an explosive molybdenum company called Blue Pearl Mining (BLE-TSX $9.49), at $9.31.
 After recommending BLE, it went for a run, before pulling back to as low as $8.80. Today, we are up incrementally, because of comments on ROBTv from Peter Hodson, a fund manager for the well reputed alternative investment company – Sprott Asset Management.
Mr. Hodson’s comments can be found here, http://www.robtv.com/shows/past_archive.tv
*scroll down the page from the above mentioned link and click on the 12:30 pm show, as well as the 1:25 pm segment where BLE is again mentioned by Hodson as a top pick
Yesterday, Jean-Francois Tardif of Sprott Asset Management (SAM), conservatively pegged BLE at $15 to $18 and as high as $30 if the price of moly were to rise in 07. Hodson’s comments reiterated Tardif’s bullish outlook for BLE. Hodson calls BLE “the cheapest stock on the TSX” with Hudbay Minerals coming in second. Hodson also mentioned BLE in a report in the Financial Times today, where he praised BLE's blockbuster acquisition of Thompson Creek Minerals earlier this year. (Financial Times P8) Hodson went on to say that an NYSE listing is likely for BLE and that they have masses of stockpiled moly, in fact, BLE has $100,000,000 worth of extra stockpiled moly laying around after business expenses.
This year alone, BLE has catapulted from a penny stock, to the largest publicly traded moly company in the WORLD and the 15th largest mining company in Canada by revenue.
So much is going on with BLE, such as a feasibility study, NYSE listing, 4th Quarter 06 financial statement coming out and analyst coverage coming online, I am reiterating my recommendation on BLE.
Jean Francois Tardif’s comments can be found here, http://www.robtv.com/shows/past_archive.tv?day=wed
*Scroll down to the 12:30pm edition of Market Call
Another flyer, which is up HUGE over the last 52 weeks is Tara Gold Resources (TRGD Pinksheets $1.25).
 I have owned Tara off and on since $0.15. Today, Tara broke resistance and made a new all time high. I have a feeling that Tara may run tomorrow, so I would recommend taking a closer look as soon as possible.
Tara’s joint venture partner, Paramount gold (PGDP Pink Sheets), was last year’s high flyer and ran from under a buck to over $4 in short order, as I expect TRGD will do as well. The acquisitions keep on coming as the potential for Tara grows and grows. Remember, with Pink Sheet stocks you do NOT get the luxury of audited financial statements and the exchange can be ruthless. Be careful, but don’t miss the train. |
posted by MicroCapMayhem @ 11:20 PM   |
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| Strateco, Uranium and Everything In Between (RSC-TSXv) $2.92 (PTU-TSXv) $1.07 |
| Monday, December 18, 2006 |
Well, I'm going to keep this short and sweet - uranium is hot!
Uranium juniors these days are a dime a dozen and like many other juniors in other sectors, some make it and some don’t.
We are not interested in sticking around to see if ABC Uranium Corp. builds a profitable mine in 2009, we want to take advantage of the white hot money pouring into the junior uranium market - today.
Previously on MCM, I recommended 2 uranium juniors, Strateco Resources (RSC-TSXv) and Purepoint Uranium (PTU-TSXv) and both have gone on to see very nice gains.
With the sudden recent spike in the uranium spot price (which can be found at the top-left of the MCM site) and the way junior uranium stocks were trading today, I am reiterating my buy on Strateco Resources (RSC-TSXv). After massive gains this year, Strateco hit new all time highs today and closed at its high of the day. RSC is inching its way towards the psychological $3.00 mark and with MACD on the cusp of a bullish cross-over, it should make new all time highs within the next few trading days.
In my opinion, it’s a good risk/reward scenario and bodes well for a swing trade. Sometimes these stocks trade down in the morning, which can be the best time to buy them, as they tend to pick up steam right after lunch and close green.
For me, picking entry points is not on the top of my priority list. Instead, I choose stocks which have a lot of up-side potential and just buy at the ask. It makes things a lot easier and eliminates a lot of the guess work.
PTU, which was featured in a recent MCM article, is also starting to move again. When we last looked at Purepoint, we were waiting upon drill results, which still have not been released. With the way PTU trades with no news, I salivate at the idea of juicy drill results – this could be huge.
I will keep MCM readers updated and try to release trading alerts if news is released on either company, or other share price drivers occur.
Good luck and Happy Holidays. |
| posted by MicroCapMayhem @ 10:55 PM |
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| Blue Pearl Mining (BLE-TSX) $9.31 - An Excellent Way to Play the Molybdenum Market. |
| Thursday, December 07, 2006 |
Well, I just got back from vacationing in Whistler B.C. and it's time to get back to real life, trading and more importantly, MicroCapMayhem. I know you all missed my excellent commentary and were totally lost without me, Right? I hope? Oh well, let's get to the stock.
My play of the day may be considered a "CORE HOLDING", or one could play it as a trade, lasting anywhere from the next few weeks to the next couple of months.
If you haven't already heard of the stock, it is called Blue Pearl Mining (BLE-TSX $9.31) and is up approximately 1300% this year alone. Holy Jeepers! Blue Pearl recently acquired Thompson Creek Minerals, a private moly company, which automatically catapulted BLE to the world's fifth largest molybdenum producer and the world's largest publicly traded pure-play molybdenum company. Usually molybdenum is mined as a copper by-product. This is not the case with Blue Pearl, as they are a pure-play moly company.
Even though this stock is slightly out of my normal buy criteria - it costs $9.31 - I feel that it is the best way to play molybdenum at the moment.
If you aren't familiar with molybdenum, refer back to my articles on Roca Mines, one of our other "CORE HOLDINGS" with absolutely excellent prospects and potential for 2007.
Blue Pearl is poised to move higher in the coming weeks and months. I know what you are saying, "it's already up so much, is it really going to keep going?” Well, the answer is that there are many catalysts, which will drive Blue Pearl higher, asides from its outstanding fundamentals and low cash-flow multiples.
Some of these drivers include:
• A recent inclusion in the S&P/TSX composite index, which becomes official on December 18 and will open BLE up to more funds.
• They are expecting a feasibility study in early 07 for their 100% owned Davidson project, which is Canada's largest molybdenum mine.
• Analysts are going to begin covering BLE.
• Thompson Creek alone cash-flows $1,000,000 a day after taxes.
• Chart looks fantastic.
BLE's management team has an excellent track-record as they were behind Silver Wheaton Minerals (SLW-TSX), another success story.
I’d advise that anyone interested in playing the molybdenum market take a closer look at this gem. |
| posted by MicroCapMayhem @ 10:25 PM |
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| MCM Featured Stocks Averaging 30% Gains in Under a Month! |
| Saturday, November 25, 2006 |
What a month it's been so far at MicroCapMayhem! After our launch, we have gone on to see a beautiful recovery in resource stocks and the TSX blasting into uncharted territory! On top of that, we have seen phenomenal gains with MCM's own featured stocks, as illustrated below. Check it out!
The following update outlines the progress our featured stocks have made, since being recommended on the MicroCapMayhem site, throughout the month of November. I have calculated our gains using the highs, rather than recent closing prices.
*For original recommendations, check the archive section of the MCM site.
We have seen stellar gains so far this month and with the TSX firing up again, MCM will continue to look for tomorrow’s winners today! |
| posted by MicroCapMayhem @ 3:20 PM |
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| New Section: "TSX WATCH" All Time Record Highs Achieved |
| Tuesday, November 21, 2006 |
"TSX WATCH" is a new section being added to MCM. Periodically, we will be technically analyzing the S&P/TSX Composite Index, which is considered the leading indicator of market activity for Canadian equity markets and also acts as a benchmark for Canadian funds, similar to the S&P 500 for American equity markets.
Generally, most Canadian equities and particularly resource stocks, move in unison with the S&P/TSX Composite Index. Anyone holding Canadian equities during the correction in May, probably suffered losses in their portfolio, as we saw stocks across the board take a beating.
The purpose of "TSX WATCH" is to analyze the TSX (S&P/TSX Composite Index) and hopefully anticipate broader market moves, which will trickle down to individual resource stocks that we can capitalize on.
Just prior to the massive correction, which began in May, the TSX was at record levels, reaching a high of 12,494.72. Today is especially exciting, as the TSX has catapulted to a new all-time high of 12,600.83 and continues to stay above the psychological level of 12,500.
The proceeding annotated weekly chart illustrates the channel, which the TSX has been trading in, and today, has just broken out of:
A channel is created by drawing two parallel trend-lines. In an up-trend, the upper trend-line acts as resistance and the lower trend-line acts as support. In the preceding weekly chart, you’ll notice that the TSX is at its upper trend-line. The following annotated daily chart shows that the TSX’s upper trend-line has officially been broken, called a break-out. If the TSX closes above its upper trend-line, which would also be above the psychological 12,500 mark, we may continue to see strength in the days to come.
The TSX is heavily correlated with commodities and oil. Today spikes in the price of oil, gold, copper and commodities across the board, as well as more consolidation in the resource sector, has been responsible for the rise in the TSX.
We will approach this breakout with skepticism and wait for further confirmation before becoming overly bullish. I tend to use a bottom-up approach for my “CORE HOLDINGS” and a mixture of bottom-up and top-down for my trading alerts. Using a bottom-up approach simply means that I look for quality companies and am not so concerned with the macro environment at the moment. This mitigates some risk, as quality companies with real prospects tend to out-perform in times of economic down-turn. However, as the old Wall Street axiom goes, “when the wind blows, even the turkeys will fly”. This just goes to show that when the markets are ripping, a top-down approach can be used with more confidence, as even the more speculative of the speculative stocks will do well, just based on over-all market sentiment. |
| posted by MicroCapMayhem @ 2:56 PM |
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| Uranium Exposed: Update: Purepoint Uranium (PTU-TSXv) $1.07: 1 day gain +21% |
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I introduced Purepoint Uranium (PTU-TSXv) yesterday at $0.88, since then it has gained 21% in 1 day. If you entered a long position for a simple trade, you may want to think about liquidating part of your position and buying back either when news is released, or on a pullback. PTU still appears to hold potential and could release some stellar results. However, with such a big move in the last two days, we could see a buy the rumour sell the news scenario if drill results don't meet expectations.
Just stay tuned. |
| posted by MicroCapMayhem @ 11:00 AM |
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| Uranium Exposed: How to Make Radioactive Profits in the Athabasca Basin |
| Monday, November 20, 2006 |
Uranium as an investment and source of power, is it ethical? Well, that’s subjective.
Is it safe? Maybe, but we’ll leave that up to the environmentalists to decide. Could it be just about the most lucrative investment right now? .....
Well, hell, I’d thought you’d never ask – Of Course!
Uranium is a unique situation. It’s an element which is in ever-increasing demand and has been appreciating in price non-stop for years. Uranium is made of 16 different isotopes, being comprised mostly of the isotope U-238 (99.3%) and U-235 (0.7%).
 Uranium isotope U-235 is isolated to be used in nuclear reactors all over the world – and nuclear weapons when used in high concentrations. It’s pretty simple actually; U-235 is fissile, meaning its atoms can be split under the right conditions. Leave it to the scientific geniuses of the world to come up with reactors that arrange the Uranium fuel in such a way, so that a fission chain reaction occurs. This reaction creates heat, which makes steam, the steam powers a turbine, which in turn drives a generator and delivers electricity to millions of happy citizens. Its bi-product, the less radioactive isotope U-238 referred to as depleted uranium, is used in many other applications like tank armor, radiation shielding, counter-weights for large planes, an alloy in steel and even to produce plutonium. Well, to avoid sounding like a mad scientist, let’s get to the heart of the situation – how’s we goin’ to make some money from this radioactive super metal?As quickly as uranium atoms split in a nuclear reactor, uranium juniors are popping up claiming to hold the next ultra deposit. Well, I’m only going to focus on one company right now, which I feel holds some real potential and exhibits traits of a high-quality company, with great growth potential. I’ve only recently become aware of this company, so I am only skimming the surface in this report. Going over its fundamentals with a fine-toothed comb would be advised, but let me clue you into why I think its share price could see some rapid appreciation in the near future. The company is Purepoint Uranium Group Inc. (PTU-TSXv) $0.88 +23.94%
Purepoint is a uranium junior exploring Saskatchewan’s Athabasca Basin. If you’re not familiar with the Basin, many of Cameco’s projects like Cigar Lake and Macarthur River are located there. In fact, Purepoint’s 100% owned Turnor Lake uranium deposit is located 12 km east of Cameco’s La Roque Lake Project. Other majors in the area include Cogema and Denison Mines. A uranium mine can be economical at grades as low as .03%, with mines grading on average .15%. Well, in the Basin, grades are a little more economical, like, say, Cameco’s Cigar Lake and Macarthur River projects, which grade 17-18% going as high as 80% in some pockets. The average ore grade in the region is 3%, well above the norm. Purepoint conducted a 3,400 meter summer drill program on its 100% owned Turnor Lake property, for which the results are still pending. Today PTU rallied $0.17 or 23.94% on heavy volume and interestingly with no news release. In my experience, when a company makes a nice move on heavy volume for seemingly no reason, a positive news release is imminent. Putting two and two together, one would gather that summer drill results for PTU’s Turnor Lake project will be released soon and be favorable. PTU’s chart looks good with periods of consolidation followed by periods of explosive growth.  MACD - is in bullish territory. Negative divergence in the histogram, but only because of today’s abnormal trading. CMF - shows good sentiment and that PTU is under accumulation. MA - 50 day SMA is about to cross 200 day SMA RSI - is good for now, above the 70 line, but should be watched for a bearish crossover. The November issue of the Northern Prospector contained an article entitled “ Who’s Leading the Race for the Next Uranium Super Deposit?” This article went over the Athabasca Basin, uranium and miners in the basin and created criteria for which the uranium companies in the area were rated on and given a score based on their potential at discovering the next uranium super deposit in the Basin. Purepoint Uranium topped the pack, coming in the lead, just above Nuinsco/Trend’s Diabase Peninsula Project. It’s still anyone’s race, but Purepoint Uranium seems to have something to it. I’m going to monitor tomorrow’s price action and possibly buy on a pullback, unless we see news released by PTU illustrating favorable drill results, in which case I may buy at the ask and try to ride it as a trade. Depending on where PTU ends up, it may turn into a “CORE HOLDING” and be featured periodically on MicroCapMayhem. |
| posted by MicroCapMayhem @ 6:08 PM |
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| How to Profit from Aurelian's Monster Deposit Without a Monster Bank Account |
| Monday, November 13, 2006 |
If any of you have been following the phenomenal story of Aurelian Resources (ARU-TSXv), an Ecuadorian Gold company, who recently hit the mother-load and watched its share price appreciate from $0.40 to a high of $43.00 in under a year, you are probably curled up in the fetal position, sucking your thumb and crying because you didn’t pull the trigger when you had the chance – tough luck!
Well, maybe it’s too late for you to make a quick double or triple on Aurelian stock, but there is a plethora of junior companies popping up like weeds in close proximity to Aurelian’s key properties trying to be the next company to bask in the limelight.
Aurelian has found a world-class deposit, which in all probability, will not be duplicated by anyone else. However, other juniors moving into the area may have a chance at some of the high-grades of gold that Aurelian has become famous for.
What I have found, is that after the rapid price appreciation of ARU stock this year, people have become almost manic about finding the next company to duplicate Aurelian’s results. What this has created is a multitude of volatile junior exploration companies, whose share prices swing wildly up and down, based upon drill results and property acquisitions in the area.
Although I wouldn’t recommend buying and holding these juniors in hopes of them metamorphosing into a $40 stock, I would recommend taking a closer look at the following stocks, getting to know them and their trading patterns, and trading the news, which can be very lucrative.
What you have to remember is that good news can send these stocks soaring and bad news can send these stocks plummeting. In my experience, one of the best times to pounce on these stocks is after the market has over-reacted and punished them too much for less than satisfactory news.
What freaking stocks am I talking about already? The following is a list of the most popular area plays around Aurelian’s properties:
Plexmar Resources (PLE-TSXv)
Skeena Resources (SKE-TSXv)
Goldmarca Limited (GML-TSXv)
Oremonte Resources (ORR-TSXv)
Lateegra Resources (LRG-TSXv)
At times, these companies can provide excellent trading vehicles if you’re quick and ready to pounce – but be forewarned, holding these stocks for too long can be a mixed blessing. Although at times very profitable, holding can lead to imminent losses in your portfolio.
Example: You wake up one morning and go to check how your new shares of Oremonte Resources (ORR-TSXv) are doing. You notice there is a trading halt on the stock. Then news comes out, touting drill results below that which the street was expecting. Oremonte then resumes trading after gapping down 20% and striking a devastating blow to your portfolio.
The following chart illustrates the frequent gaps on Oremonte's chart created by good and bad news:
Just remember that these are news driven stocks, so be diligent in your approach and don't get too comfortable holding them for the long haul.
I will be providing periodic up-dates and trading alerts related to these companies, who have acquired properties around the Peru/Ecuador border and more importantly – near Aurelian’s monster deposit. |
| posted by MicroCapMayhem @ 10:42 PM |
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| MicroCapMayhem mentioned in article on Roca Mines, Resource Report: There’s something about Moly Stocks (ROK-TSXv) $1.58 |
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MicroCapMayhem mentioned in article on Roca Mines, Resource Report: There’s something about Moly Stocks (ROK-TSXv) $1.58
It has been a busy time for Roca Mines lately and they appear to be making phenomenal progress at their MAX mine site. Roca’s share price has been performing equally as well, blasting to yet another 52 week high of $1.68 today, before closing at $1.58 - its highest close ever.
One of Roca’s strong points is that they are gaining recognition without paying a promotional marketing firm, like many other junior resource companies have do to create a buzz. Roca seems to be on the cusp of getting recognized, having been featured in many prominent publications recently, including: Northern Miner, Stockinterview.com, International Research Partners LLC, etc.
Today, MicroCapMayhem was mentioned in a Stockhouse editorial called Resource Report: There’s something about Moly Stocks. Below is an excerpt from this report, which I highly recommend anyone who is interested in molybdenum and Roca Mines read:
“The MAX deposit is NI 43-101 compliant, with a resource of 113 million pounds. It is also open at depth, and Roca hopes to further explore the deposit in 2007. Analysts (such as Sprott Asset Management) and small-cap reporters (StockIntervew.com, MicroCapMayhem) following the project have pointed out the similarities between this deposit and Phelps Dodge's Urad/Henderson mine, which is to date the world's largest molybdenum deposit.
Another upside to the Roca project is that the company's share dilution is minimal. The company plans to mine its high-grade molybdenum deposit using its cash flow and further explore the property's potential for a much larger deposit.
Take a good look at the company's chart. There is strong indication that this uptrending junior is an excellent prospect.”
Moly looks like it is just starting to heat up and gain recognition with investors. So next time you hear about the metal with the funny name, take a closer look and ask your-self how you are going to profit from it. |
| posted by MicroCapMayhem @ 8:49 PM |
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After recommending BLE, it went for a run, before pulling back to as low as $8.80. Today, we are up incrementally, because of comments on ROBTv from Peter Hodson, a fund manager for the well reputed alternative investment company – Sprott Asset Management.
