daytrade diaries... november 5, page-2

Todays Picks
BCC/BCCO: Had a nice bullish close yesterday with plenty of buyers in the last hour giving us a bullish dragonfly doij. Today we should see renewed interest in BCC with a push well into the 7’s. The only concern is the MACD looks like it is about to cross down. News Due: Spud date for Lee County well, announcement of successful production ramp up at Pompano well to 6-7 mmcf/day.

MHM/MHMO: It was clear that placement stock was hitting the market yesterday with volume increasing to more than 1m shares. Keeping in mind that the placement was 15m shares at 20 cents and that my target of below 30 cents has been achieved, I commenced buying yesterday. I do not want to get caught without MHM shares when they go into pre-open. Since it is always difficult to pick exact bottoms I will buy more each day until I reach my target holding. News Due: Completion of the acquisition of the Aluminium Salt Slag plant and progress on the establishment of a silica plant in Tasmania.

CCU: Silver was up another 2 % overnight so CCU should have another good day. perform well today. I didn’t manage to pick up any yesterday but will be on the lookout again today. News Due: Further silver exploration drilling results should begin to flow in coming weeks.

ATI/ATIO: There is a nice pennant forming on the daily chart. It could potentially breakout if prices get above 4.8 cents on high volume. The target after the breakout is close to 6 cents. News Due: Potential new projects to be brought into the company at any time.

BCN/BCNOA: A little disappointing yesterday with the price only rising 0.1 cents. Still as we get closer to the drilling program interest in BCN will increase. The chart is starting to look enticing and I have my eyes firmly on the gap between 2.8 and 3 cents. News Due: Confirmation of commencement of the new drilling program at the Barlee gold project.

RED: With I tried to buy on the open yesterday at 12.5 cents. My order is still there close to the top of the queue. News Due: News on project finance could come through at any time which would propel the RED price to new levels. They are also due to start exploration on their second Philippines project, Mapawa, shortly which should generate added interest.

QHL: An outstanding ASX news release highlights the potential of QHL. I bought yesterday at an average of 50.7 cents. The potential here is astonishing with the MOU relating to potential sales of $700m over at least 20 years, and possibly more; this just from one contract. With only 164m shares on issue the potential for capital appreciation is clear and for that reason QHL has gone straight onto my list of strategic long term investments. News Due: There is potential for news on more supply contracts at any time.

ADN: I managed to trade this a few times yesterday for a nice profit. There are similarities to THX’s recent performance in that we now have assay results to come and we know they are highly likely to very good. Therefore ADN should provide us with a great trading opportunity in the next month. However, a word of caution for the period between now and the 11th of November, when the scrip from the share purchase plan is sent to holders. Given that this stock was issued at 19 cents it will be tempting for some to take profits. Hence I believe we will get the opportunity to buy in the low 20’s again prior to the release of the assay results. News Due: Assay results due in 3-4 weeks from the diamond drill hole at Rover 1 next to Westgold resources discovery.

Good luck today