Given the environment that now prevails I think extreme caution should be exercised in today’s market. Therefore I will only be looking for opportunities to acquire shares which have been sold down to what I consider extreme levels. Any stocks I buy must also have very strong potential for near term positive news.
Todays Picks BCC/BCCO: It will be very interesting to see how well the price holds up in the second significant sell off day in the past week. Given the potential size of the falls I expect the price to weaken back towards the low to mid sixes but I would not start to buy until close to six cents. News Due: A spud date for their well in Lee County is due with a target date of around two weeks.
MHM/MHMO: The placement stock comes out this week so I would expect a retrace to at least 30 cents and possibly further given market conditions. As I have said before the temptation to take 50-75% profit will be too strong for many. MHM is a buy for me below 30 cents. News Due: Completion of the acquisition of the Aluminium Salt Slag plant and progress on the establishment of a silica plant in Tasmania.
CCU: I have moved my bid down to enable me to wait and see where the price settles. I won’t be surprised to see prices in the mid teens again if the market weakness continues. News Due: Further silver exploration drilling results should begin to flow in coming weeks.
WCP: I exited my position on Friday when the price failed to continue its move up.
SFR: I bought a few more on Friday and will probably accumulate more this week. I like the potential size of the discovery unfolding here. News Due: More drilling results could come at any time.
Be careful out there, it will be a difficult day to trade.
