Today’s Picks BCC/BCCO: The waiting continues. I suspect peoples level of concern is rising with each day that passes. I would be amazed if we don’t get a release today regarding the delayed spud due to the hunting season. News Due: Confirmation that the Pompano well has increased production to its target range of 8-10 mmcf/day. Spud of Lee County Well updated timing.
ADN: The chart now has a falling stochastic, RSI and MACD so there could be more weakness in the short term. However the assay results from Rover 1 could be released any time from now on and I expect the news to be good enough for a gap up on recommencement of trading. 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.
GOA/GOAOA: There is still a lot of buying interest in the stock but that will no doubt be effected by the big fall in the price of gold on Friday night. I can still see positive divergence on the stochastic, RSI and MACD on the chart but that is likely to disappear if the price falls too much today. News Due: Further news regarding startup of production at the Sao Chico project. Exploration plans for the Crater Mountain project in PNG.
MHM/MHMO: Friday was another reasonable volume day and the chart looks set for a breakout. The bollinger bands are quite tight indicating the potential for a large move in price is near. The stochastic is rising, the RSI is about to move up through 50 and the MACD is looking like a positive cross could occur in the next few days. News Due: Completion of acquisition of Aluminium Salt Slag plant outside Geelong.
BCN/BCNOA: I have no doubt that BCN will be effected in early trading by the gold price but given the news flow that is coming in the short term this should present opportunities to enter for a trade. There are some drilling results due out later this week with the initial JORC likely next week. Because of these upcoming announcements I expect BCN to hold up better than other speculative gold stocks. News Due: Initial JORC resource estimate for the Barlee gold Project. First exploration results from the current drilling program at the Barlee Gold Project.
ARM: The global roadshow has come to an end and the level of interest shown has supposedly been significant. The price retraced 50% of the recent increase last Thursday and that was the time I began buying again. With further good news the next stop should be a test of the all time highs in the mid 60’s. On the chart the gap was closed on Thursday and the stochastic has crossed up. I expect this to be a star performer in 2010 once drilling begins. I am also keeping a close eye on what OM Holdings are doing. They recently bought a stake in Shaw River Resources on market and I see the possibility of a similar move by OMH onto the ARM register. News Due: Further Manganese sampling results, drilling approvals and details of upcoming program.
