daytrade diaries... november 13, page-2

Todays Picks
BCC/BCCO: Profit taking saw the price come back within the Bollinger band yesterday. The drilling of the Lee County well is scheduled for the 25th on November, which is a delay of about 2 weeks. Prices could fall back to the long term uptrend line at about 7.4 cents. If they do I’ll be there to take advantage because I expect a price of more than 10 cents at spud time. This could also explain the short term weakness. News Due: Confirmation of production ramp up at Pompano well to 6-7 mmcf/day.

MHM/MHMO: Still plenty of selling in MHM as placement stock continues to work its way through the system. I maintain my belief that news due will propel the stock towards its previous highs and onwards into the 40’s. News Due: Completion of the acquisition of the Aluminium Salt Slag plant and progress on the establishment of a silica plant in Tasmania.

CCU: The CCU train keeps on climbing with a new high of 40 cents. After such a stellar run I would recommend people take profits since the temptation by the company to conduct a capital raising must be building. News Due: Further silver exploration drilling results should begin to flow in coming weeks.

ADN: The stock held up well yesterday with selling pressure not too great despite the SPP stock becoming available. I still haven’t bought and will watch for a few days to see where the price settles but hope to buy around 23 cents. 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.

MEU: Once again I was buying yesterday and will continue to do so. I spoke to the MD of the company and there should be another drilling update next week. The drilling will be complete in about 2-3 weeks and then the samples from the holes will be logged and sent to the lab for assays. News Due: Further exploration results from Junction Dam (Close to the Honeymoon uranium mine).

ARM: We smashed the 50 cent barrier as I expected yesterday with a positive announcement about the potential for channel Manganese deposits at their Capricorn project. It looks like an attempt on the all time highs of 65 cents will not be too far away. The chart looks great although there are a couple of gaps left below so I guess the question is whether these are breakaway gaps. News Due: More sampling results from the company’s manganese project. Presentations to US, Canadian and European investors taking place over the next three weeks could demand to an already tightly held stock (top 20 63% held). News Due: More sampling results from the Capricorn project.

UEQ: I purchased again yesterday at 17.5 cents. The stock fell again yesterday although prices did recover late in the day. The chart still doesn’t look too bad with the MACD about to cross and the RSI and stochastic indicating the potential for a rise in the near term. One strong day and the UEQ chart will be signaling buy. I have found out from the company that Lagoon Creek Resources planned to sell down their stake from 22.5m to about 20m shares. I would say they sold down on the 5m volume day two days ago when the announcement was made. News Due: An announcement regarding the first Phosenergy plant could come at any stage. Further uranium exploration results.

OVR: A high volume day out of the blue yesterday with 1.5m changing hands. The chart looks good with the MACD about to cross and the RSI rising past 50.Once the 10 cent mark is convincingly broken I can see prices quickly advancing to 15 cents and from there the next mild area of resistance is around 30 cents. News Due: The company is currently revising the mine economics to take account of reprocessing lower grade ore and lower transportation costs. These should impact the project economics significantly. Results are due at the end of November.

GOA/GOAOA: I took the opportunity to sell out of GOAOA yesterday on the spike because I did not like the way the stock has been performing of late. Looking at their latest cash flow statement a placement soon seems highly likely. Although I agree there is potential here I’d suggest care needs to be taken.

Good luck today everyone.