daytrade diaries... february 4, page-2

Today's Picks

VLA/VLAO: I spoke to the MD yesterday because I had some issues about future funding. Anyway they have access to a total of $8.0m in cash at the moment (Cash $1.3m, convertible note $4.0m and listed options exercise $2.7m). According to the MD this should be enough to fund the phase II trials which will be conducted under the FDA's protocols. Note that the convertible note converts to shares at the average VWAP of the past 5 days. The last conversion was done at 5.92 cents meaning that it would be reasonable to conclude that the holders consider VLA represents reasonable value at that price (otherwise why did they choose to convert at that price). For this reason I think a short term bottom must be close and selling pressure should ease soon. I'll continue trading VLA/VLAO when opportunities arise. I am currently only holding VLAO. News Due: Update on IND application status with the US FDA. Further details of program for phase II trials. Results from other Phase I trials on different cancers.

ARM: The bots were very active in ARM yesterday and the price, although positive, is yet to confirm another move up is underway. The chart is starting to look better again with the RSI rising, the stochastic starting to turn and the MACD also showing early signs it might be about to reverse. Confirmation of the reversal will still be important in the next few days if momentum to the upside is to continue. News Due: Details of upcoming drilling program for the company?s Capricorn Manganese project. Outline of future plans for the Camel Hills Magnetite project.

GGP/GGPO/VIL: VIL and GGP had fantastic days yesterday with both stocks closing near their highs (at the days high in the case of GGP). There were certainly no signs of nerves by holders as the buyers chased the stock higher following the announcement that the testing will commence over this weekend. Based on this we should get an update as early as Monday morning and this is the reason why people are most likely taking positions now. Based on previous announcements during the drilling of the Fausse Point well I expect testing will result in a move towards production. News Due: Results from testing of the Fausse Point well.

ADO/ADOO: There was a powerful marubozu candle yesterday finally signaling a reversal of the downtrend in ADO?s share price. The candle showed that the buyers controlled proceedings yesterday right up until the close. I expect the momentum will continue into this mornings open with a strong likelihood of further gains during the day. My preferred investment here is the options because I have continuously been able to buy them at a discount compared to the share price plus the 1.2 cents exercise price. From my research I see good potential in this stock over the short to medium term and plan to meet with the CEO on Friday to learn more about the company. News Due: Further licensing deals for the company?s Mix&Go technology.