daytrade diaries... february 2, page-2

Today?s Picks

Well I picked a good time to go away with the biggest falls in six months occurring over the past week. At this time it is best to focus trading activity on shares in companies which have strong fundamental value to back up their market capitalisation because I believe these will be the first to recover when the market turns again. I have chosen not to spend too much time analysing charts at the moment, purely because most of them look the same, ranging from very bearish to oversold. Good luck trading today.

ORD: Like most stocks ORD has been battered in the past week falling for 5 of the past seven days. The chart looks bearish but the stochastic and RSI are getting closer to oversold levels. Given the potential of their Bauxite project in Laos combined with the strength of the management team I am happy to add further ORD shares to my long term portfolio of strategic investments at around 5 cents. News Due: Development plans for the Bauxite project in Laos. Commencement of ground EM surveys at the Copper Flats project.

VLA/VLAO: I decided to buy a few options at 2.6 cents yesterday. The stock has now given up 80% of its recent gain from 4 cents to 12 cents. However after promising Phase I results I am willing to back my judgment that further news in relation to next steps for the company?s development plans, including the filing on the Investigational New Drug (IND) application to the FDA, will be sufficient to generate a decent bounce. It is also significant that the latest partial conversion of the convertible note to share announced on the 28th of January was done at 5.92 cents, above today?s close. Yesterday?s article in the BRW will also help increase the awareness of the potential of the new drug, Cavatak. News Due: Progress of Application for IND status with the US FDA. Application Further details of program for phase II trials.

ARM: I read the independent geologist?s report last night and it reinforced to me the potential which ARM has to host multiple deposits of Manganese which could be large enough to significantly impact the global market. The commencement of drilling is not too far away now and I expect the majors will be keeping a close eye on the results flowing in from the Capricorn Southeast project. The likes of BHP and IOH will most likely wait for initial drilling results before making their first move, but should the drill bit deliver then I believe the temptation for these companies to join the register will be overwhelming. News Due: Details of upcoming drilling program for the company?s Capricorn Manganese project. Outline of future plans for the Camel Hills Magnetite project.

PNX: The announcement on the 27th of January about anomalous gold grades at Princess Royal, combined with the previously reported copper grades, was enough to spur me into buying more today. I will be happy to accumulate a larger holding at or below 20 cents should the market weakness continue in coming weeks. News Due: Further drilling results from the Black Hill Gold project where significant intersections have previously been announced. Commencement of further drilling at the Princess Royal prospect.