Created: 07/09/2002 02:12:33 PM -
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Gold, and especially micro-cap gold companies, look like they are in the process of starting an incredible second big upmove move here, in a huge Elliot Wave 3 take-off.
Micro-cap golds, especially Cusac (CUSIF.ob), Benguet (BENGB.ob) and Commerce Group (CGCO.ob) look ready to launch a Wave 3 advance, after a dramatic 4X up Wave 1 and a 50% hair cut Wave 2.
Typically one looks for Wave 3 to be 300% X the %of Wave one advance.
That means that we expect a 900% upmove on this run in these three stocks, by this fall. These are stocks I am currently playing aggressively.
CUSIF.ob, CGCO.ob and CUSIF.ob.......... all have four key things in common that make them a huge buy right here:
- They are each outside the U.S. (CUSAC - Canada, BENGUET- Philippines, Commerce Group - El Salvador)
- They each have just come off multi-year bottom, had a huge 3 bagger+ Elliot Wave spike up Wave 1 up and have NOW completed Wave 2 down. They are lagging the majors, and RIGHT NOW they are entering Big Wave 3 up. We all know this is the biggest and most attractive part of a bull mover. From examining the charts I expect each to have a 8 to 10 bagger.
-All three are idle mining companies with good reserves, which is like buying an out of the money call, HUGE upside leverage. None have significant callable debt, and basically need $350+ stable gold prices to be 10-20++ baggers. Each has proven out and high probable reserves, ready to crank it up as things improve. If you believe we are in a bull market for gold this is how the dough is made.
- All three are not really followed by "The Street" yet. Sure a couple of newsletters mentioned Cusac, but no one, I mean no one but me remembers CGCO.ob and BENGB.ob in their glory days of being 30-50X higher in price then they are now.
Cusac, which I have 250,000 shares of, is prone to being highly promoted as bull markets progress, it has great fundamentals, but a little push from the blabber-mouths doesn't hurt. Big range of gold ore inherited from Cyprus Amax (Cyprus had to abandon option due to financial problems), plus Table Mountain mine in place (all it needs is a little higher gold prices, and the latest in mining tech will make this baby hummm). The symbol you would use in your brokerage account to look up Cusac would be CUSIE (possibly need to add .ob, depending on the service).
BENGB.ob. I have followed the stock for decades, currently own 200,000 shares.
It trades at $.15, but go to www.bigcharts.com and pull up a quote for bengb for the past 20 years, you can see it has traded as high as $8.
There are 2 "wild cards' that will make this one pop:
- It inherited, free of charge, the massive KingKing copper and gold range from Echo Bay, when Echo Bay had proved it up, but did not have the money to bring it into production(again, a forfeited option). Effectively Benguet has a lot more ore/share going into this bull market than last.
- The Philipino Peso, like the South African Rand, has totally collapsed, meaning mining at Benguet will be done cheap in Peso, and sold in more valuable $US, which is what has made DROOY move like it has due to Rand collapse.
I see it moving from $.15 to at least $3 in the next 15 months, or around a 20 bagger.
All the elements that took this thing to $6-7 are still in place, all we need is a little higher gold prices. The added KingKing will insure success.
I have 115,000 shares of Commerce group (CGCO.ob), El Salvadoran national mining company basically. Mothballed by low gold prices, they have 5+ existing mines in place, 1.5 million ounces of proven + 3.5 MM probable. They are like buying gold for $3 an ounce. This stock was $10 last time gold traded over $500, it is currently $.22. I expect $3+ this year on a gold move over $400, from the current .22, or a 50-100 bagger in three years as gold goes past $600. It has happened several times before with this one in gold bull rallies.
CGCO.ob is my first choice for the big money right here. Am positioning to add more. No one is paying attention to it.