Wednesday, December 30, 2009

Trading Post (shoot first ask questions later edition)


Those waiting for the big waterfall downmove on gold this morning have been disappointed. Au now at $1,094/oz and getting picked up in light trading. Silver a bit weaker and the gold/silver ratio back to the 65X level. The last week of the year isn't the time to make any trading decisions, really. Window dressing going on and year-end bonuses being traded into.

Riverside Resources (RRI.v) down 18.2% at $0.63 on heavy volumes and getting sold off after this news release today on its Sugarloaf Peak drill results. Subscribers to The IKN Weekly got a Flash update about this stock earlier in the day. They'll also get an interesting mail received by way of reply from CEO Staude as long as I get the dude's permission to pass it on. I own this stock and I'm not selling it today, not at these knockdown prices.

Animas (ANI.v) down 2.9% at $0.66. The action in RRI today reminds me of that overdone drop in ANI to 55c last week. Both of these stocks have been unduly whacked by a market that acts first and thinks later. That's all you're going to get from me on the blog.

Chariot Resources (CHD.to) down 1.3% at $0.37 today, but the stock saw a big run up yesterday on the back of the Corriente Resources sale (and the vertical copper price moves seen these last few days). The world is looking round and trying to find the next big deposit to catch a deal, it seems. Subbers know my thoughts on this; although this stock is tradeable there are at least two other LatAm copper explorers that make more appeal.

New Gold (NGD) down 2.2% at $3.57. Riddle of the day: How are you able to run an open pit mine in Mexico if the authorities have banned you from using explosives? (hint; you can't). NGD was quick to tell the world about the injunction it got from Mexican courts that allowed its Cero San Pedro mine to stay open while enquiries continue into its operating licences. However, it must have slipped their mind that a few days later, another Mex court banned them from using explosives at the mine, thus putting a stop to any real work. But who in Canada gives a damn about a Mexican court anyway? NGD obviously doesn't cos just nine days after being told that they can't use explosives at Cerro San Pedro, NGD just went ahead and blew up its hill, with six detonations registered on December 27th at 12:15pm. Want to know why Canadian mining companies have such a bad reputation in LatAm? Check the facts, note the way "upstanding corporate citizens" like Pierre&Co ride roughshod over countries' laws..... and DYODD.

Amerix Precious Metals (APM.v) UNCH at 6c. Interesting little stock, totally under the radar. Check it out and DYODD as I own a very small amount of these at 5c and 6.5c.