Holy Buying Spree, Batman!
January 20, 2011
– Comments (16) |
RELATED TICKERS: GG
, AUY
, CDE
That's about all I can say about that. Sinchi was a busy buyer on the pink sheets today.
Here's one I can discuss because I have not purchased shares this week: Primero Mining.
Have you Fools been tracking the share value on this thing, even after the company laid out its hugely bullish 2011 production targets and exploration program? I mean, I was excited by the value proposition when I first wrote about the transaction last year when I had the $5 to $5.50 IPO target in mind. But at a dollar cheaper, the opportunity there is phenomenal. Volume on the pink sheet (MNOCF.PK) remains miniscule, so liquidity is a legitimate concern, but I expect the current lack of attention the company receives to be a waning phenomenon as they deliver on plans for San Dimas.
Those of you fortunate enough to live or trade in Canada, I recommend Primero ("P") with both thumbs up and my big toes to boot. Those like me forced to utilize the pink sheets, I recommend some caution on both the illiquidity of the security and the underlying uncertainties surrounding these unsponsored proxies in general. With that said, I want to own this company before they decide to offer a U.S.-exchange listing.
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Here is the latest from Alf Fields, whose big-picture chart work on gold is second to none:
He appears quite confident that we're more likely to shoot higher than continue lower. [Go to the link to see the charts that accompany his discussion]. I don't really care either way ... I'm just going about my gradually scaled-up process of buying into weakness.
With a somewhat less bullish near-term outlook, here's the latest from Trader Dan:
On the weekly chart, gold is forming what can be viewed as a potential rounded top formation with support evident near the $1320 level. That is why this level is important for the metal to hold to prevent a deeper setback towards $1285 – $1280. It will take a closing push past $1370 to now turn the tide in favor of the bulls with $1380 to uncover buy stops from fresh shorts.
Silver’s breach of $28, a critical chart support level, casts a negative pall over that market. It had been uncovering some decent buying support near the 50 day moving average but that simply evaporated in the general rout among the metals today. Tightness in the physical market is apparently no match for the paper market. Used to be that in the childhood game of rock, paper, scissors, that paper covered rock so I suppose the same applies with the Comex paper market. It now needs to hold $27 or it will drop to $26.40 or so with the potential for $25 in the cards should it fail to stabilize near that level.
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