Today’s Picks BCC/BCCO: The price stabilized yesterday and today or tomorrow we should receive an announcement from the company regarding the spud of the first Lee County well. After weeks of strong buying and price increases BCC was overdue for a significant retrace and we are finally getting one. The slow stochastic is heading quickly towards oversold levels, the RSI has flattened in the low to mid 60’s and the MACD has turned down but not yet crossed. Today I’ll be looking to buy some more BCCO’s to add to my collection and will aim to hold until we get close to results. News Due: Confirmation that the Pompano well has increased production to its target range of 8-10 mmcf/day. Spud of Lee County Well due on 26th of November (Australian Time).
ADN: The reaction to WGR’s drill results was muted for both company’s yesterday and highlights the weakness currently being experienced in the small end of the market. ADN’s price is now back on trend and the indicators are looking a little less favourable. When it looked like the price would stall yesterday I sold a few at 32/32.5 cents and will be looking to buy those back over coming days. A new broker presentation was released last yesterday which further highlights the potential of ADN. 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.
RED: The stock managed to hold onto recent gains yesterdat and with the indicators still looking positive and gold being up sharply overnight I expect more gains in coming days. I have not given up on my 20 cent target yet and news on financing can’t be too far away which should see even higher prices achieved. News Due: Progress on financing for the Siana gold project in the Philippines and drilling results on the Mapawa project.
LRC: I decided to double my holding at 1.8 cents yesterday following a discussion with the broker supporting the stock. I think we’ll see strong support at these levels with a possible move back into the 2’s to ensure the current issue receives good support from shareholders however I don’t intend to hang around in the stock for long, and given my average is just upder 1.9 I shouldn’t have to. The chart looks pretty average so I wouldn’t be recommending that folks here jump on LRC until the indicators turn. News Due: Details of drilling program on project in Chile.
UEQ: It is now 12 days since we had a white candle in UED, indicating to me that there has been a seller or seller selling into any strength. To me the fundamentals of the company justify a price of at least 25 cents and I will continue to accumulate stock over time. For now I have stopped buying until I see some positive indicators on the chart. The Bollinger bands are still very tight indicating that a fast move might be coming soon. Given the underlying fundamental value of UEQ (5 cents cash, JV’s potentially contributing a minimum of AUD$33m) I am prepared to back my judgment here that the move will be up. The 2 year daily chart has a cup and handle formation with the bottom of the handle currently being formed. The target for the right side of the handle is about 28 cents and it should complete in the next 1.5-2 months. The target should the pattern complete is approximately 50 cents. News Due: Commitment to the first PhosEnergy uranium extraction project. Discussions with large phosphate producers are well underway.
