daytrade diaries... november 12, page-4

Todays Picks
BCC/BCCO: A very strong performance yesterday with the price climbing on significant volume of nearly 100m shares as people get set for the Lee county well. The price is now outside the top Bollinger band so I wouldn’t be surprised to see a consolidation day today. That being said the price did close near its highs indicating the conviction of the buyers. Prices north of 10 cents look close now. News Due: Spud date for Lee County well, confirmation of production ramp up at Pompano well to 6-7 mmcf/day.

MHM/MHMO: Yesterday produced a spinning top which indicates that a period of further consolidation may occur. Placement stock is still working its way through the system which is holding the stock back. However news due should propel the stock towards its previous highs and onwards into the 40’s. News Due: Completion of the acquisition of the Aluminium Salt Slag plant and progress on the establishment of a silica plant in Tasmania.

CCU: My short term expectations have been exceeded with a close just below the days highs. The chart is signaling the run could be about to end with indicators nearing overbought levels. The temptation of the company to raise funds in the mid 20’s must be strong now. I am looking out for a placement to occur any time. News Due: Further silver exploration drilling results should begin to flow in coming weeks.

ATI/ATIO: A low volume dragonfly doij day on yesterday didn’t change the overall picture. Hopefully there will be more action on ATI today. News Due: Potential expansion of the Bao Loc project. New project acquisitions to be brought into the company at any time.

ADN: According to the company today is the day the SPP stock is hitting people’s accounts so it will be interesting to see how much of a sell off occurs. I will look to start accumulating stock from now on in preparation for their December announcement. News Due: Assay results due in early to mid December from the diamond drill hole at Rover 1 next to Westgold resources discovery. Indications are the grades will be very good.

MEU: The trading halt was lifted with some outstanding results released from the Junction Dam project. Once the share purchase plan is finalised hopefully the stock will begin to climb. As planned I sold some shares at 15 cents yesterday and replaced them with SPP stock at 14 cents. News Due: Exploration results from Junction Dam (Close to the Honeymoon uranium mine).

ARM: Another day, another high for ARM at 49 cents. I expect 50 cents to fall today with the additional news just released relating to more Manganese potential. The chart looks good with the only question mark being that the slow stochastic is high at 90+ but that can remain in overbought territory for long periods of time. News Due: More sampling results from the company’s manganese project. Presentations to US, Canadian and European investors taking place over the next three weeks could demand to an already tightly held stock (top 20 63% held).

UEQ: I bought more yesterday because I viewed the announcement as being very positive and firmly believe that the price is undervalued. An up day today is really important to maintain momentum.

BGD/BGDO: Todays trading formed a Marubozu candlestick that is a bullish signal and indicates that the buyers were in control of the stock from the opening bell to the close. BGD could be good for a quick trade in the near term but keep in mind placement stock at 13 cents will hit the market shortly. The 10 cent options at 7.4 cents look the safest bet here. I do not hold.

Good luck today everyone.