daytrade diaries... november 27, page-2

I expect a very tough day today with markets rattled by the news that Dubai World has suspended debt repayments. There is nothing like a reminder of what we have been through to jolt confidence. It is interesting to note that on CNNMoney there is no mention of events in Dubai. I will not be surprised if we see an initial sell off in the US tonight followed by a recovery on Monday. No doubt if most Americans were told about events in Dubai the common question would be “Dubai, where’s that?”

Today’s Picks
BCC/BCCO: Today we should receive an announcement from the company regarding the spud of the first Lee County well. The price rose little stabilised yesterday which has done wonders for the chart because it looks like a turn could be close. Despite current problems in the market I still expect BCC to perform well in the next few weeks. I added a few more BCCO’s to my collection yesterday with the plan 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 price is still on the uptrend line with the chart indicators and the indicators now looking neutral. I’ll be looking to buy under 30 cents and if we get a bad start to the market today that could lead to some good opportunities here. 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: It looks like the price will fall in the short term but any weakness is a buy in my opinion. When project financing is finally announced I believe RED will finally get the rerating it deserves with strong potential returns for investors. News Due: Progress on financing for the Siana gold project in the Philippines and drilling results on the Mapawa project.

LRC: I am still holding LRC and hope to see strong support at the 1.7/1.8 cent level. The chart still looks pretty average so therefore I wouldn’t be recommend that people here jump on board LRC until the indicators turn. News Due: Details of drilling program on project in Chile.

UEQ: Another flat day which means it is 13 days since we had a white candle in UEQ. The fundamentals of this company justify a price of at least 25 cents and I will continue to accumulate stock over time however for now I have stopped buying until I see some positive price action and the indicators on the chart turn up. 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.

PNX: This looks like a very well managed company run by strategic thinkers. I’d suggest that people take a look at the Presentation to the SA’s Explorers Conference lodged with the ASX yesterday. I am looking to buy a few of these for their upcoming 6 month drilling program. News Due: Commencement of drilling program at various projects.

Good luck trading today everyone.