ADN: A very bullish marubozu candle formed yesterday which showed the buyers took control yesterday afternoon. The chances of the gap closing in the immediate future have now declined and the chart looks bullish with the stochastic looking set to cross todayand the RSI and MACD rising, . News Due: Assay results from deeper sections of the Rover 1 hole to reveal whether gold/copper mineralization continues deeper.
MHM/MHMO: No changes to yesterday’s comments apart from the fact that the stock is in suspension pending the signing of legal documents by all parties to the agreement. The stochastic is now falling but the RSI and MACD are still flat and no where near overbought. The Bollinger bands are very tight indicating the potential for an explosive move. I expect the share price to strengthen on the completion announcement because it will signal the beginning of revenue and profit generation for the company. However there is the potential for SPP stock to hit the market from Friday onwards so it may be prudent to take some profits. News Due: Completion of acquisition of Aluminium Salt Slag plant outside Geelong. Update on silica project including a potential silica plant in Tasmania.
ARM: Yesterday the stock performed much better than I expected with a new all time high of 79 cents meaning we are now in blue sky territory. On the chart the stock is starting to show signs it is heading into overbought territory so a retrace must be expected at some stage (it’s only healthy). However whether that happens today or not depends largely on how good the announcement is that is due to be released this morning. I await the announcement. News Due: Further Manganese sampling results, drilling approvals and details of upcoming program.
BCC: The Lee County well is probably likely to spud in the next day or so because the rig should have arrived on site by now so watch for an announcement. Yesterday’s price action was weaker than I had hoped with the price closing at its low of the day on reasonable volume. There is still some work to do before the chart gives oput a clear buy signal. News Due: Spud of Lee County well. Ramp up of pompano gas production to a target level of 8-10mmcf/day.
GOA/GOAOA: With the gold price up strongly overnight I am hoping for a better day for GOA. I still think some of the placement stock is working its way through the market. At some stage I expect some news will put GOA back onto traders radars and the stock should start to move up. Given they will be in production by March next year I see little risk to the downside from here. News Due: Progress on building of plant for the Sao Chico project in Brazil. BFS progress for Fergusan island project in PNG. Confirmation of drilling program at Crater Mountain scheduled for January 2010.
LRC: The company put out a timely update about drilling progress at the Arqueros Gold Project stating initial results should be through in the next two weeks. That created a reasonable amount of demand for the stock with the price quickly heading back to 1.8 cents. With the gold price up strongly overnight I expect another good day today. I bought on the open yesterday and plan to trade out of them in coming days, hopefully above 2 cents. News Due: First assay results from the drilling program currently underway at the Arqueros Gold Project in Chile.
