mickqld, page-12

Firstly: even if there is a really good announcement, it will rally, fall back and then (if the announcement was good enough) rally again, giving you a second chance to get in. Lets say the announcement is so stratospherically good the stock makes a V shaped recovery and somehow gets over 25c in one go (I'm trying to remember whether I've ever seen one from a stock that has slipped below the 30 week EMA, happy if somebody can find me one), if this happened, the announcement must be so good that you wouldn't mind getting back on at 26c, because the announcement is SO GOOD that it would take it to $1 within months, and you would hardly have missed any of the gains. Frankly, this just doesn't happen. Stocks that have gone down that far, that fast, have to have lots of sideways movement before they can take off again. The sideways movement sometimes looks like it is up, but it is just up and down (sideways).

OK, coming to the point about Steinepres et al: Steinepres interests stepped down form the board in June 06. The last capital raising for WMT wasn't done through Ascent investors, it was done through Tricom Equities. Most of the Ascent investors are no longer in the stock in any substantial way (I don't think any hold more than 5% now). The company has been, particularly since April of this year when Hearne stepped down as secretary, free from its Ascent apron strings. Ascent investors wouldn't be burnt if it fell below the Tricom placement price. Sure it wouldn't be a good look for Ascent if it went broke, but that's not the problem. It won't go broke because its got plenty of cash in the bank to generate more announcements. The issue is, for you, that it can fall to 12c and stubbornly stay there for the next three years while they develop Jorc compliant resources. Even if Ascent wanted to push the value of the company upwards, this would be very difficult given the cost of the stock now. Its one thing to buy and hold stock tightly in a company with a market cap of $20 million to get it to $200 million, quite another to keep it there (especially if you've sold most of your shares), because you have to keep buying at higher and higher levels. So for it to get back to 40c and maintain or grow from this point, it needs to convince really, really big investors (institutions) that it can justify this level, especially now that Ascent parties have given up so much stock.
Even putting aside these essentially fundamental (as opposed to technical) issues, no matter what Ascent does, it would be very hard to generate a V shaped recovery back to 40c from this point. The chart has gone from looking as though it could generate some sort of dish bottom continuation, to as though it is in a diabolical downtrend. And for those who might use the "hold for the long term PDN analogy", PDN never ever spent a full week below the 30 week ema in its rise to $11 as WMT has just done.

For those a bit light on in the maths dept: a fall from 19c to 12c is more than a third of your remaining capital.

RMG is attractive at 3-3.1c, but if you already have RMG you might want to look at SSC which also has a chart that is about to go off, just to give some diversity. CHZ might also be OK if it comes back to 35c.

CUL looks as if it is pennanting, but the market cap is $33 million so not quite as leveraged as the other two.