daytrade diaries... november 25, page-2

Todays Picks
BCC/BCCO: Provided the market isn’t too weak today BCC is a buy from these levels for the much anticipated spud of the first Lee County well. An announcement confirming the spud is due today or tomorrow and should reignite interest in BCC. News Due: Confirmation that the Pompano well has increased production to its target range of 8-10 mmcf/day. Spud of Lee County Well due on 26th of November (Australian Time).

ADN: At 8:05pm last night further positive results from WGR’s Rover 1 prospect (near the boundary of ADN’s project) were released so I expect the spotlight to be firmly on ADN and WGR today. With the chart indicators still looking positive I wouldn’t be surprised to see the price build towards the recent high of 37 cents in the next day or so. 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.

EXM: Director related selling means I am dropping EXM from my list. It is a golden rule of mine not to invest or recommend a stock in which there is director selling. I know results are due in the next week or so I’ll try to time my exit with a positive announcement. News Due: Further assay results from their gold exploration property in Tennant Creek within the next few weeks but after speaking to the company they could come at any time.

RED: Well my short term price target of 20 cents was not achieved yesterday but one of the two gaps created by the recent run has now been filled. With the slow stochastic looking set to cross down and the RSI falling there may be further weakness in the next day or so, but the risk is that at any stage the company could announce a financing package for the Siana gold project and I expect that would propel the price to a new trading range, potentially above 20 cents. Given government approval has now been granted, that is looking very likely in the near term. News Due: Progress on financing for the Siana gold project in the Philippines and drilling results on the Mapawa project.

LRC: I am still holding my trading parcel from 2 cents but in hindsight should have sold at 2.2 on the open yesterday morning. Unless I see renewed signs of strength today I will close the position even at a loss. The chart still looks okay provided we see a rise in the price today. News Due: Details of drilling program on project in Chile.

UEQ: The stock still appears to in the bottoming phase around 16-17 cents. The Bollinger bands are tightening very quickly indicating that a fast move might me coming soon. Given the underlying fundamental value of UEQ (5 cents cash, JV’s potentially contributing a minimum of AUD$33m) I am prepared to back my judgment here that the move will be up. The 2 year daily chart has a cup and handle formation with the bottom of the handle currently being formed. The target for the right side of the handle is about 28 cents and it should complete in the next 1.5-2 months. The target should the pattern complete is approximately 50 cents. News Due: Commitment to the first PhosEnergy uranium extraction project. Discussions with large phosphate producers are well underway.

Good luck trading today everyone.