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Daily Digger - Fryday Oct. 1, '04


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Well another nice week lead by goldstocks in euros

Since january 1st gold is up 2% and stocks are minus 16% and trying to catch up

Under these circumstances no anal cyst is talking about gold

Good

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I'm looking at the same thing Ander. GSS and the HUI that is. The HUI seems to come back a little. If this is the worse friday afternoon sellers can do, then one would think there may be more in store next week. Anyway, fingers crossed.

 

Charmin I reread my previous post, and may have sounded somewhat harsh. That surely wasn't my intent. It's just hard not to notice when you look at the chart. Anyway, you've been charting for along time without timelines. I will not mention it again. :rolleyes:

 

Have a good weekend, gents.

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I was looking at Profunds and noticed the basic materials fund broke the highs from January - BMPIX. That would be XLB also.

 

guess what happened last year about this time.... at Stock Traders Almanac

October 5th, 2003 - MACD Seasonal Buy Alert (DOW and S&P 500)

October 7th, 2003 - MACD Seasonal Buy Alert (NASDAQ)

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(CFTN) Very interesting bottoming pattern last five or so days.

Yep, ominous. Bought below 0.90. :)

 

Clifton's subsidiary also makes that wonder Silver medication.

Yes, it freaked me out every time it broke under .85. It definitely looks like a bottom.

All those candles were hammers, signalling a bottom, and every day closing back up above the 0.85 support.

B) We now have a minor reversal though, with a shooting star counterattack, possibly an evening star.

 

Luminous ! :blink:

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All those candles were hammers, signalling a bottom, and every day closing back up above the 0.85 support.

B) We now have a minor reversal though, with a shooting star counterattack, possibly an evening star.

 

Luminous ! :blink:

Definitely!

 

Its a great bottoming pattern, I look forward to getting back to even in this one. ;) <- Sucker who bought near the top, and will never buy a .PK, .V, or .OB miner again. (Or anything else).

 

They can get on a real exchange if they want me to invest, dangit!

 

Anyway, since I bought CFTN, I have become less hopeful about their mining prospects and much more hopeful about their biotech prospects. I bought expecting some great drill results to come out this year, and instead almost nothing. But I held on because the ASAP solution results have been excellent, and ABL (they own 28% of), has real revenues, and enormous potential.

 

I now see it as biotech, not mining. When I bought it I saw it the other way around. It was definitely one of my mistakes (along with badly timed buys of GSS, VGZ and CEF in march, all of which I had to sell at a loss in mid april after things started to fall apart). Not that they wouldnt be good buys now, they just werent in march.

 

CFTN may well be a great buy now at $1 or .90, I dont know. But it wasnt good at $2 or over, having run from .25 without a major correction. I've learned my lesson, and now seek to buy only after deep corrections, buying the pullbacks after it starts rising again after a bottoming formation....like the action we are now seeing in the HUI.

 

 

Last week on the financial sense newshour, Puplava had a seciton on what to look for in juniors, and what times in the life of a junior are the times to buy, and when the stocks tend to be overpriced. He also talked about the importance of quality of ounces, not basing things on inferred ounces, but rather measured and indicated. I wish he had done it last year, maybe it wouldve kept me away from the 'throw darts at Jason Hommel's list' strategy. :D

 

 

I wouldve done better if I had just stuck everything in SSRI, instead of messing around with these little one property, bulletin board juniors, which had already been run up.

 

So theres my ramble on juniors...

 

Anyone else have experiences they want to share?

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Ander I agree with your assessment of the jrs. I bought a basket in '03 at good prices in hindsight and at the right time. Glad it was only a small position in total. My mid tiers flew along with the prices of the metals while a good majority of my jrs. laid like dogs. I sold out in disgust only to watch the majority of them more than double a few months later. I would prefer a stock which more or less followed the underlying investment. Not lock step but at least some reason to the price movement. If I'm wrong on a market I'll take my medicine but if I'm right on direction I expect to make money on my stock purchases. I'm done with the jrs.

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CFTN etc

I think the Bear Market in general equities, and the volatility in the tiny manipulated PM sector, force us to develop our technical analysis skills.

Buy and hold is for vanilla Bull Markets, and this is definitely not Kansas anymore ...

(Do I dare confess that I held some DROOY from 1 to 6 to 2 ... :( ).

One has to learn to buy when everybody pukes (and the technicals are right), not when everybody rushes to buy just to sell in disgust around the lows. Tough education, for a tough future ...

 

As to the fundamentals, not only is/was it hard to keep general faith in the sector in this age of disinformation, but judging these smallcaps remains quite difficult because of lack of information. Diversification is important in juniors, and specialized newsletters do help.

 

Hommel has a great screening tool and compiles a lot of useful and sometimes rare information, but his method disregards a lot of information, to fit everything under one number. Which is ok if one understands the limitations.

He tends to pump a bit now, probably like most newsletter writers, making money on the sale of his personal portfolio list to readers, on the "sale" of his readers' list to companies anxious to finance privately (or was it the reverse ? :huh: ), and on the momentum of his portfolio. Note that he cannot warn either before he sells, the little star just disappears from beside the company name. You really have to "DYODD".

E.g. all those juniors will need to finance and dilute, maybe by several 100 %, and this should be reflected in a "Hommel" index.

The latest monthly pump, Capstone (CSG.V) (which grew its price by 60 % in a few weeks on Hommel's "revelation") gets more than half its Silver potential from "inferred" resources at only one field (Claudia), and foresees a dilution (presently of about 400 %), which should be reflected in its relative evaluation to other smallcaps. There is probably a tendency to underestimate all the possible risks even in some of the best choices.

 

There was a whole thread about Clifton on GoldIsMoney.com, going from apocalyptic revelations (another RGLD-like shorter job ?) to their refutation. It seems they do have significant mineral properties ...

(I bought some, long time ago, around 0.30 I think. I did hesitate to buy around 0.35, waiting for something like 0.32 which never came back :o . It had meandered endlessly in the 0.20s - 0.40s, and all those smallcaps seemed a very long shot even while the "big" caps were leaving the station.)

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