an excellent article, hooray for Hammond Power !, a quick recap, and buying RSG, NDM
We begin with this excellent article. If you read only one thing today, let it be that.
If you read further however, join us in celebration of Hammond Power Solutions' latest numbers. Since we already hold two positions in the stock per this blog, curently +225% and +36% in 9 months and 3 months respectively in addition to a +23% score in two weeks on a swing position in February of this year, we didn't try for yet another play on the expected jump in share price once earnings were reported, but on June 20th we did say "low bidders may consider $11.11 for Hammond Power shares" and the subsequent low was only slightly below that level so we hope some did buy at those prices as this past Friday it closed at $13.50 with an intra-day high of $13.90 which is not far off its all-time high of $14.00 which we hope to be bested soon.
For us this means we'll gladly continue to hold both our open positions in Hammond Power Solutions, and will possibly accumulate on any weakness as in our view Hammond stock remains relatively unknown and undervalued.
Now a quick recap on a few of our open positions, most of which we do not normally review.
FRP, Frontier Pacific Mining we write about often because its chart is so uniquely compelling. Very rarely does such a long and almost flat consolidation of this type resolve other than firmly in the original direction of the primary trend which is certainly upwards for this stock. We have two positions already, otherwise we'd be buying or adding still.
We took a position in ADI, Adriana Resources, in early November '06 and had the good fortune of the share price being double what we paid not 5 months later. The stock has been in a down-trend since then, however we still enjoy 26% paper gains on this open position. We don't like to see this stock trading below $1.00 but expect resolution shortly of its consolidation, hopefully in our favor if the current drill program excites the market. If so, we'll hold and if not we'll still book respectable gains. Until then, we are neutral on the stock.
DNT, Candente Resource Corp. has risen in a gradual steady up-trend since our purchase in late November '06 and we now enjoy paper gains on this stock of 38% and the trend and news remain bullish for this company.
We purchased CDU, Cardero Resource Corp., in late March of this year and enjoyed an almost immediate 50% paper gain however the stock subsequently sold off to what is now a paper loss of 15% as the price of gold slid. The pospects of this company seem very good to us and the long-term up-trend remains intact, so with the price of gold recently appreciating we still view CDU as a good hold and worth accumulating below $2.00
AVL, Avalon Ventures Ltd. we mentioned accumulating a few times through April and March of this year below $1.50 and with its steady rise now enjoy a paper gain of 62% We remain happy to hold a position in this company, which closed Friday at $2.18 after a recent high of $2.34 For further accumulation we'd place bids circa $1.88
Of SU, Suncor we wrote on June 20th that "we have been long-term holders of this stock, and note that it has challenged the $100 level recently as part of a familiar pattern that we believe indicates that the share price will soon rise above that $100 level and realize it as a new support price. Those wishing to bid low may consider $93.30"
The stock was then at $95 but the subsequent low was a few days later at $91.85 The stock closed Friday at $100.09 and we remain confident in the belief that soon $100 will prove to be a distant support level for this stock. We reiterate that "if, like us, you believe in the long-term scarcity of oil, increasing depletion of current reserves and the diminishing frequency of significant new discoveries along with global increases in demand, then Suncor appears to be a smart buy." Note that Suncor releases its 2nd quarter financial results on July 26.
On SNO, Snowfield Development Corp. we realized an 81% gain in just over 4 months earlier this year and just this past Thursday renewed our position at $0.30 citing what appeared to us to be a resumption of its up-trend. It closed Friday at $0.315 and if it continues to close above $0.30 this will be a strong technical confirmation and very likely a signal of an imminent appreciation in share price. To technical traders, this is a strong "buy" signal.
Speculative buys in light of rising gold and silver prices :
We're attempting a highly speculative bottom fish by going long RSG, Searchgold Resources at $0.165 After a run to $0.43 this March, the stock has dropped to its former trading level and is exhibiting the kind of quiet sideways accumulation we like to see. We wish to catch a bottom here in anticipation of hopefully good drill results forthcoming, while low bidders may wish to consider catching any sudden drops to $0.125 per the long-term trend though we'd prefer not to see the stock closing much below $0.15 in which event we'd consider limiting losses.
Rumors persist of a possible buyout in the works for NDM, Northern Dynasty Minerals. We don't put much faith in such talk, however coupled with the steady rising trend on low volume and the company's excellent prospects we're compelled to take a position going long NDM at $13.42 with plans to hold on closings above $12.00
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posted by C. Guinness @ 1:10 PM
