A technical outlook on 4 resource companies
Rick shares his insights on four resource companies that we have not touched on recently. Here are the companies and symbols…
- Canasil – CNSUF & TSX-V:CLZ – www.canasil.com
- Pan American Silver – PAAS & TSX:PAA – www.panamericansilver.com
- Energold Drilling – EGDFF & TSX:EGD – www.energold.com
- International Tower Hill Mines THM & TSX:ITH – www.ithmines.com
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Fwiw, PAAS, FCX, HL, NEM, RGLD, SWC, and TCK were revised up today.
Not exactly raving upgrades!
number of equities research analysts also recently issued reports on HL. Scotiabank upgraded Hecla Mining from an “underperform” rating to a “sector perform” rating and boosted their price target for the company from $3.75 to $6.15 in a research note on Wednesday, July 13th. BMO Capital Markets restated a “buy” rating on shares of Hecla Mining in a research note on Tuesday, July 12th. Zacks Investment Research upgraded Hecla Mining from a “hold” rating to a “buy” rating and set a $6.75 price target for the company in a research note on Monday, July 11th. Royal Bank Of Canada boosted their price target on Hecla Mining from $3.25 to $4.00 and gave the company a “sector perform” rating in a research note on Tuesday, May 31st. Finally, Sterne Agee CRT restated a “neutral” rating on shares of Hecla Mining in a research note on Monday, May 16th. Six investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $4.13.
It’s the direction of these frequent and numerous revisions that matter to me. The bears are clueless if they can’t see that the sector has changed dramatically this year.
For the record, I am much more likely to sell items that are rated a buy and buy those that are rated a sell and even more likely to buy companies that have no significant analyst ratings at all.
Interesting point, Matthew~
Matthew, I agree, most analysts are always late to the game in their revisions and coverage.
Agreed.
You nailed it again Matthew! Great point
This is better.
Zacks Investment Research upgraded shares of Pan American Silver Corp. (NASDAQ:PAAS) from a hold rating to a strong-buy rating in a research report sent to investors on Tuesday. The firm currently has $22.00 price target on the stock.
VANCOUVER, July 5, 2016 /CNW/ – Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) announces the closing on June 29, 2016, of the second and final tranche of 6,475,000 units for proceeds of $2,072,000 in the non-brokered private placement (the “Placement”) of total 8,000,000 units (the “Units”) at a price of $0.32 per Unit, previously announced on 7th and 20th June 2016, for total gross proceeds of $2,560,000. The TSX Venture Exchange has accepted for filing documentation with respect to this tranche of the Placement and all shares issued pursuant to this tranche are subject to resale restrictions for a period of four months from the closing date to October 30, 2016.
Each Unit consisted of one common share of the Company and one-half of one non-transferable share purchase warrant. Each whole warrant (a “Warrant”) entitles the purchase of one common share of the Company at a price of $0.50 within two years of closing, to June 29, 2018, for warrants issued under this tranche. If, commencing after the fourth month after closing, the closing price of the Company’s shares exceeds $0.80 per share for any period of 20 consecutive trading days (the “Acceleration Trigger Date”), the Company will have the right to accelerate the expiry date of the Warrants to the 20th trading day after the Acceleration Trigger Date by the issuance, within three trading days of the Acceleration Trigger Date, of a news release announcing such acceleration.
Finder’s fees of $38,400 and 60,000 finder warrants was paid to Sprott Private Wealth LP, and $85,920 and 134,250 finder warrants was paid to Sprott Global Resource Investments, Ltd. Finder’s warrants have the same terms as the Unit Warrants. The proceeds of the Placement will be used for continuing exploration programs on the Company’s mineral exploration projects and for working capital.
Thanks, Rick. I bought PAAS for $2 and change after the crash of ’08, and think it will go over 100 one day. I’m holding.
BB, $2 ticket on who gets to $100 1st, Pretium or PAAS.
Interesting bet. I own both, but as I like silver most I’d bet on PAAS to get to 100 first.
Rick must have been looking at the wrong symbol for PAAS.
Other things being equal, the issuance of a full warrant guarantees suppression of upwards price movement for several months.
Leech-like Canadian brokers tend to buy units in public offerings, then sell the stock but keep only the warrants.
Scum brokers also naked short the stocks close to the trading date for warrants, to further increase profiteering.
These comments are solely my own, resulting from 40+ years of observation.
However, were documented on financial sense.com over a decade or so ago.
Indeed the naked shorting of several stocks at that time drove them down to zero (bankruptcy), so the shorting never had to be covered.
e.g. Not in mining stocks, but Google Overstock, a stock for which at one time the number of shorts exceeded the number of shares issued…..which is impossible without naked shorting.
CFS:
Naked shorting has always been a problem with stocks. And your observations about Canadian brokers shorting shares 3.5 months into a hold period and then dumping at 4 months to sit on the warrants is 100% correct.
That is why I check REG SHO info whenever i make any single investment over about $10K.
I’ve learnt in the school of hard knocks!
But resource investing is still the easiest to analyse, and offers great opportunities.
Hi CFS :
Where would a person go to check the REG SHO info for stocks listed on the TSX.V?
Much appreciated.-jk-
JohnK, sorry. I don’t know. I only buy stocks in US and UK.
of course it is, Robert.
Great comment Bob.
A real tough lesson for newbies.
A common practice CFS.
Great comment CFS.
PAAS is not trading at $30 but rather trading at $18. And Al, the symbol for Mckewn is MUX.
McEwen Mining has the symbols MUX, MUX.TO and an obsolete MCEEF.
Thanks John and CFS
In case no one noticed Pd is up $18 since 00:00 GMT.
This to me indicates PMs are only suffering transitory COMEX manipulation.
I Did. Things should get interesting with Pd around the 700.00 level.A strong break through this level should put 800 into play one would think.
Thanks Rick. I’d like to request your views on GPL.
And I’d like to request NSRPF again.
Al, Here is some investment advice: If MUX ever goes down to .65 again load up the truck. It’s run by Rob McEwen, one of the smartest men in the business. He owns 25% of the company and works for $1 a year. He took GG from nothing to one of the biggest miners in the world and hopes to do it again with MUX. I’m betting on Rob.
Rick:
Your insight is invaluable. There are hundreds of good stocks out there and looking into them for Kereport is a wonderful thing for you to do. Investors need different viewpoints.
thanks Robert.
+1
I was following 3 of 5 companies covered yesterday, thank you very much guys this is a big improvement!
Bgg.v and tkk.v I’m very interested in if there is room to cover them in the future. Wwpw is also very interesting.
CBG gained 17.39% today.
This short interview probably had something to do with it:
That was a good interview and I like review of their their Copper/Gold/ and Gold/Zinc deposits, and didn’t realize they had that unmined quarter-billion-tonne iron/titanium/vanadium deposit.
I also like that they don’t have debt and own their properties, so that they only need to pay the taxes, but they know where they will be drilling on older proven targets that were abandoned from a prior cycle when gold was $35-$60.
A very interesting exploration project indeed.
svm?