Market Trends – Wed 21 Mar, 2012

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Featuring:
Roger Wiegand

Comments:
  1. On March 21, 2012 at 2:56 pm,
    Clay says:

    Gold Lease rates are rising rapidly. Could it be the banksters are running out of German and Swiss gold?

    http://www.kitco.com/charts/popup/au0030lr.html

    • On March 21, 2012 at 3:32 pm,
      Matthew says:

      That is a very good sign for the longs. Thanks for posting.

      • On March 21, 2012 at 5:17 pm,
        Marc says:

        Matthew,
        As we stand right now, what would you say are your top few minors with the most IMMEDIATE upside? Would you care to divulge? Is Impact still one of those?
        Thanks and all the best,
        Marc

        • On March 21, 2012 at 6:18 pm,
          Marc says:

          BTW,
          The reason I asked is that you mentioned Impact several weeks ago….I am thinking about selling out of one position and picking up shares right now. Any thoughts?

          • On March 21, 2012 at 7:38 pm,
            Matthew says:

            To clarify, I like Impact more than Claude and the others for it’s relatively low risk and fantastic upside. The stock is under-owned and misunderstood in my opinion.

        • On March 21, 2012 at 7:31 pm,
          Matthew says:

          I still like Impact a lot. I believe it has huge immediate upside. After dipping as low as $1.26 on December 30, it went as high as $2.18 on February 29 -the day the metals were smacked down. It was starting to melt up, and am glad it wasn’t “allowed” to just yet. A slower rise is healthier (at least when a stock isn’t responding to good news). It’s now sitting at $1.70 and looks like a great opportunity for an initial purchase (at least).
          I like Claude Resources (CGR; CRJ.TO) more than ever at these levels. Unlike Impact, this is a new holding for me driven almost entirely by the belief that it is way too cheap. I believe that the paper overhang of late was due mostly to a couple of factors. First, CGR recently acquired St. Eugene Mining. Under the terms of the deal, each shareholder of St. Eugene received 0.0789 of a Claude share per St. Eugene share. Close to 10M shares were issued. Given that St. Eugene was about a 13 cent stock with less than one-tenth the market cap of CGR, it makes sense that most of the new CGR holders would probably sell their shares in order to replace St. Eugene with a similar spec. Then, Claude was recently deleted from the S&P/TSX Global Gold Index and the S&P/TSX Global Mining Index because it fell way below the required $300M market cap. This action would, of course, force selling by funds that track those indicies. Now throw in the current investor sentiment in this sector and we can see how many investors might have sold in disgust. Most probably had no idea why CGR was under so much pressure. A good opportunity is now a great one.

          Although it’s a little “safe” for me, I couldn’t help but buy Aurizon (AZK; ARZ.TO) last week when it went under $4.50. If you take a look at their numbers and press releases lately, you’ll probably wonder, as I did, “what are the sellers thinking?!”

          I bought more Golden Predator today, and a little more Riverstone Resources yesterday. I still like Alexco (AXU); Niogold (NOX.v) which I’m convinced will be bought by Aurizon; Typhoon -which has very good potential for a “take out”; Constantine (CEM.v) is undervalued, but I wouldn’t count on it for immediate upside; and Almaden remains a long term holding. And there are many more that I like. Quality junior producers will probably do the best, first. Then, I would look to undervalued juniors that have graduated to the development stage, but still have exploration upside. Then the explorers with assets in the ground. And last to blast off are usually the drill plays that have nothing yet.

          I now like natural gas a lot, too.

          Best,
          Matthew

          • On March 21, 2012 at 9:04 pm,
            Marc says:

            Matthew,
            Thanks for all your help and insight…I am trying to ramp up as fast I can without causing to much damage to my portfolio…..all the help is, of course, greatly appreciated! You are generous with your information and quite a gentleman – like others on this site! i wish I could sit in class with you while you lecture on all your wealth of knowledge. I would even pay. :)
            All the best,
            Marc

          • On March 21, 2012 at 10:04 pm,
            Matthew says:

            Thanks Marc, you’re too kind!

          • On March 22, 2012 at 7:55 am,
            Big Al says:

            Morning Marc and Matthew,

            Great interaction between the two of you which is of value to all of the folks here.

            Thank you,

            Big Al

      • On March 22, 2012 at 8:43 am,
        Jerry O^OTB says:

        Clay…..thanks for the post……

  2. On March 21, 2012 at 4:03 pm,
    Silverbug Dave says:

    Maybe they just finished selling all the 100 tonnes of Greek yellow stuff…

  3. On March 21, 2012 at 4:49 pm,
    Tex says:
    • On March 21, 2012 at 9:15 pm,
      Jerry Mabie says:

      I liked the comment below the article. “Silver will go nowhere until the metal runs out or the financial system collapses”. I couldn’t agree more.

    • On March 22, 2012 at 8:41 am,
      Jerry O^OTB says:

      Tex…..that sure is a lot of charts…….thanks…..

      • On August 27, 2012 at 12:53 am,
        Fahad says:

        Ryoga2K / @AJBiskit Actually that was true for most of europe but to be hoenst it wasn’t like a Master System kicked NES ass type of thing, the Master System was more popular than the NES, yes, but at that time europeans had really sparse tastes about videogames so some people had the Master System, other the NES, other had computers (some Amiga, some others had Atari ST) then there were the ones that still played on the commodore and the Sinclair ZX,and even some people still had their Philips Videopac

  4. On March 21, 2012 at 8:55 pm,
    mary says:

    Al, Can you have Yale Simpson on and talk about Extorre, that stock
    has been in a free-fall for several weeks. It has been a while since Yale
    has been on and there have been a couple of press releases which
    have had an impact on the shares I’m sure.

    • On March 22, 2012 at 7:54 am,
      Big Al says:

      Of course, I will call him this morning.

      Big Al