daytrade diaries... december 16, page-9

Todays Picks

ADN: Another strong day yesterday with the price closing just under the days high of 37 cents. The chances of the gap closing before the next announcement is now very low. The chart still looks very bullish with the stochastic having crossed and the RSI and MACD rising but no indicators are anywhere near overbought. I expect new 52 week highs to be reached today and have an immediate target of 40 cents. News Due: Assay results from deeper sections of the Rover 1 hole to reveal whether gold/copper mineralization continues deeper.

MHM/MHMO: A very disappointing performance by MHM yesterday. Worry over SPP and escrowed stock would have contributed to some weakness but I would have thought that the announcement of completion of the acquisition would have more than offset this. The chart now looks like a short term sell so I wont be buying any more shares until it turns around. News Due: Settlement of the Aluminium Salt Slag plant due mid January. Update on silica project including a potential silica plant in Tasmania.

ARM: Well the retrace came yesterday afternoon. I sold a few at 78.5 cents yesterday morning but bought them back at 70 and 68 cents. Overall I was a net buyer for the day. The announcement that came out yesterday morning was fantastic and upgrades their Manganese Project to another level. Based on the 70 sq km laterite discovery, basically every 1m depth of the deposit at economic grades would equate to approximately 115m tonnes of contained manganese (or 3 OMHs which is currently capped at A$900m). ARM has outstanding prospects for 2010 and I will continue to build my position further in the lead up to drilling during the latter part of the first quarter. News Due: Further Manganese sampling results, drilling approvals and details of upcoming program.

BCC: The first Lee County well commenced drilling yesterday which was a relief. Yesterdays price action was much more encouraging with buyers showing some enthusiasm for the stock. I expect interest to build as we get closer to results. On the chart things are looking more positive with the stochastich having crossed up, the RSI rising and about to cross 50 and the MACD looking like it has bottomed with the histogram rising. It should be an exciting few weeks for this stock. News Due: Initial results from the first Lee County well. Ramp up of pompano gas production to a target level of 8-10mmcf/day.

LRC: I sold some stock at 1.8 cents yesterday when the price failed to move ahead. The chart still looks positive but with rights issue stock due to hit the market later this week I am a little cautious of the short term direction. News Due: First assay results from the drilling program currently underway at the Arqueros Gold Project in Chile.

Good luck with todays trading.