full-time investing; total portfolio up over 130% in 2009; but 2010 sucks!
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AGM & other fed loan agencies: 09:42 (from Briefing Trader)
Likely Actions by S&P in the next few days
On July 21, S&P published a list of the likely ripple effect on ratings associated with the U.S. sovereign ratings. This should provide us with a blue print of upcoming announcements. The ratings agency outlines three scenarios at the time of its July 21 report and has obviously gone with scenario 2 (Downgrade long term to AA+/negative and leave short term at A1+).
In scenario 2, reflecting the U.S. downgrade, we would downgrade the debt of Fannie Mae, Freddie Mac, the 'AAA' rated Federal Home Loan Banks, and the 'AAA' rated Federal Farm Credit System Banks to correspond with the U.S. sovereign rating. We would also lower the ratings on 'AAA' rated U.S. insurance groups, as per our criteria that correlates insurers' and sovereigns' ratings. In addition, we would lower the ratings on clearinghouses Fixed Income Clearing Corp., National Securities Clearing Corp., and Options Clearing Corp. as well as on The Depository Trust Co., a CSD. This reflects our view that their clearing businesses are concentrated in the domestic market and they are correlated with the U.S. economy. We assess the impact of this scenario as moderate for funds and low for all other financial institutions sectors.
In scenario 2, the ratings implications for FCQRs and PSFRs would vary. Scenario 2 would have an impact on funds with exposure to long-term U.S. Treasury and U.S. government securities, but not on funds with short-term investments. For FCQRs, we apply a lower credit score on investments in short-term (365 days or less) U.S. government securities than longer-term investments (more then 365 days). The 73 FCQRs that we placed on CreditWatch negative have significant exposures to U.S. Treasury and U.S. government securities that mature in more than 365 days. So in scenario 2, we would downgrade these 73 funds to reflect the lower long-term rating on the U.S. Principal stability funds, on the other hand, seek to maintain stable and accumulating net asset values, and they invest in short-term debt instruments. As long as the short-term U.S. sovereign rating remains at 'A-1+', as we outline in scenario 2, we believe that lowering the long-term rating into the 'AA' category would not have an impact on the ratings on these funds because the credit quality of the U.S. would still meet the credit quality standards for all PSFR categories. Furthermore, we do not expect the knock-on effects of the lower U.S. sovereign rating in scenario 2 to lead to additional downgrades immediately in the financial services industry. In both these scenarios, we would evaluate each company on a case-by-case basis, taking into account macroeconomic conditions and their own financial strength.
SSN appears to be hit hard today with the drop in oil prices. Not sure if the Aussies took it down or Americans, but SSN down about 20% before the open.
Of course all oils and oil service stocks will probably be down today, but this may turn out to be a nice buy opportunity on SSN unless there is some yet-unannounced reason for the drop.
OT: TradingChief working on major upgrade to their website.
We have been working on a new site for almost a year now. We have tested the bulletinboard portion of the board and everything is working perfectly. We have no formal date for release of the new site because it is truly a work in progress. We could itemize all the things you will find different about the new site. But, the easiest thing to remember is it is "TOTALLY" different.
We are accumulating the largest database of Canadian stock info on the internet. We are creating tools for Daytraders, Shortterm Swing traders and also Longterm Traders.
We will have three levels of Technical Analysis avaliable constantly. Daytrade, Shortterm Hold, and Longterm hold. We intend on including ALGO(hidden Pivots) on all charts. ALGO will calculate Pivots for Daytraders, Longterm holders and for Swing Traders (the Pivots Change for all three traders because there are intraday pivots that do not impact a daily chart for Swingtraders. In the same token, there are swingtrading pivots that do not impact Longterm Holders, so do not appear on the Longterm Charts.
Each group will benefit by them. People from this site can attest to the uncanny accuracy of ALGOs ability to call hidden Pivots (Resistance and support points on the DOW. TSX, S&P500 and also in individual stocks like CEN-V, UCU, etc etc. ALGO can and will assist Longterm holders to take advanatage of pulls in their stock to add more or sell some at the peak of a run. The example I use is RVX-T we played all of ALGO Pivots to profit over $40 on RVX since its initial pop. We can do pivots on every index and every stock, but because it was manually drawn and calculated by TradingChief it was not physically possible. Well we think we have figured out the way to do it automatically. So ALGO will be on all charts daily, weekly and monthly.
The New Board
It is State of the Art, it will allow private forums, public forums, paid forums. What will make us different is we will have "immediate" and breaking news and information for each stock readily available in a format not used on the interent before. It will keep members in touch with their stock holdings as if they were watching the stock 24 hours a day, which benefits both Daytraders and Longterm traders.
When we are finished, we will remove all of the past restrictions that we had on this site and open the site to everyone again. So if you were banned or blocked for any reason, you get a second chance. Not so much because we are "sweet" people, but because the purpose of the site is evolving. We now know how to separate the pumpers, dumpers, hypsters and longterm / daytraders from each other in a way that will satisfy both groups. So we intend on starting off fresh and that means anyone that got banned will get a second chance.
We have created some very remarkable things that are exclusive to TradingChief.Com, the functions and the functionality is all cutting edge. You will be able to post to "friends", add friends, link to twitter and Facebook. It is a complete and very useful Social Network for traders.
We are not rushing into this because of the extensive change and we want as smooth a transition as possible.
TradingChief
Bernanke on a binge ...
Hiccup; enjoy!
http://www.theonion.com/articles/drunken-ben-bernanke-tells-everyone-at-neighborhoo,21059/?utm_source=recentnews
OT: Bubba gets a loan
His name was Bubbha..Take a short break. It's probably been a long, hard week and
you need and deserve a little chuckle!.
His name was Bubba, he was from Mississippi and he needed a loan, so he walked into a bank in New York City and asked for the loan officer. He told the loan officer that he was going to Paris for an international Redneck festival for two weeks and needed to borrow $5,000 and that he was not a depositor of the bank.
The bank officer told him that the bank would need some form of
security for the loan, so the Redneck handed over the keys to a new
Ferrari. The car was parked on the street in front of the bank.The
Redneck produced the title and everything checked out. The loan officer
agreed to hold the car as collateral for the loan and apologized for
having to charge 12% interest.
Later, the bank's president and its officers all enjoyed a good
laugh at the Redneck from the south for using a $250,000 Ferrari as
collateral for a $5,000 loan. An employee of the bank then drove the Ferrari into the bank's private underground garage and parked it.
Two weeks later, the Redneck returned, repaid the $5,000 and
the interest of $23.07. The loan officer said, "Sir, we are very happy to
have had your business, and this transaction has worked out very nicely,
but we are a little puzzled. While you were away, we checked you out on
Dunn & Bradstreet and found that you are a Distinguished Alumni from Ole
Miss University, a highly sophisticated investor and multi-millionaire
with real estate and financial interests all over the world. Your
investments include a large number of wind turbines around Sweetwater,
Texas . What puzzles us is, why would you bother to borrow $5,000?" The good 'ole boy replied,"Where else in New York City can I park my car for two weeks for only $23.07 and expect it to be there when I return?" His name was BUBBA....
Does anyone know how many Rock-Tenn facilities we are talking about, or what size and quantity of machines JBII will need to build?
The longterm agreement is a good step to allow rampup over time rather than all at once, but that brings up the question ...
Who does most of the funding for the manufacture and operation of the equipment? Since JBII doesn't have millions to throw at the deal, they will have to build equipment and increase operations over time. If funding were in place up front from Rock-Tenn, things would happen faster and revenue would begin to flow faster.
Details on this deal may cause investors to realize it will be a slow process to get things up and running, rather than a major windfall that verifies JBII manufactures a money machine. Hopefully the news was not more hype than substance. We'll know shortly, no doubt.
Symbol OIH:
Last 142.04
Change -8.86
Haven't seen this much blood in the crude for a long time.
TRGD must think they do not have to file the missing qtrly reports because they have filed the final 10K for the year. In other words, they think the annual report removes the requirement for the missing quarterly reports.
The SEC probably still expects the missing quarterly reports must be filed.
GORO still getting high grades:
August 4, 2011
NYSE Amex: GORO
GOLD RESOURCE CORPORATION’S ARISTA MINE DEVELOMENT REACHES LEVEL SEVEN BAJA AND ARISTA HIGH-GRADE VEINS
COLORADO SPRINGS – August 4, 2011 – Gold Resource Corporation (NYSE Amex: GORO) reports its Arista underground mine development has now reached level seven and intercepted the deposit’s primary Baja and Arista high-grade veins. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $22 million to shareholders in special monthly dividends since declaring commercial production July 1st, 2010.
The Arista deposit is a polymetallic epithermal vein system consisting of multiple en echelon veins. Mineralization has previously been drilled over 500 meters of lateral extent and 500 meters of vertical extent. The Arista deposit remains open both laterally and at depth. Mine development work at the deposit to date is within the upper part of the mineralized system with level seven being only 54 meters of vertical extent from the top of the deposit. Level seven mine development confirms two strong veins that fit with the Company’s deposit model representing the Baja and Arista veins. (see Main Decline Level 7 Map below).
The Arista vein exposed in the crosscut on level 7 has a vein width of approximately four meters.
Initial level 7 Arista vein selective channel sample highlight assays include*:
Sample # 113228
5.3 meters of 11.91 g/t gold, 3499 g/t silver, 1.47% copper, 2.04% lead, 3.78% zinc
Sample # 113213
3.4 meters of 16.11 g/t gold, 1419 g/t silver, 1.32% copper, 2.62% lead, 4.46% zinc
Sample # 113235
3.3 meters of 9.92 g/t gold, 1092 g/t silver, 0.92% copper, 2.33% lead, 3.71% zinc
Sample # 113219
2.5 meters of 12.5 g/t gold, 2615 g/t silver, 1.94% copper, 4.50% lead, 6.76% zinc
Sample # 113160
2.3 meters of 7.97 g/t gold, 1419 g/t silver, 1.75% copper, 1.76% lead, 3.97% zinc
Sample # 113180
1.7 meters of 21.86 g/t gold, 5344 g/t silver, 1.09% copper, 7.07% lead, 6.59% zinc
including,
0.8 meters of 45.45 g/t gold, 10904 g/t silver, 2.04% copper, 6.69% lead, 9.12% zinc
Sample # 113203
3.6 meters of 2.93 g/t gold, 426 g/t silver, 0.87% copper, 5.12% lead, 6.74% zinc
Sample # 113146
4.6 meters of 2.59 g/t gold, 491 g/t silver, 1.09% copper, 2.43% lead, 7.35% zinc
The grades of both veins are impressive, including the Baja vein’s 1.8 meters of 70.17 grams gold and 2594.7 grams silver per tonne (selective channel sample on vein), and appear to be increasing with depth.
To read the press release in its entirety click or cut and past the following link to your web browser:
http://www.goldresourcecorp.com/releases/GRC-2011-08-04-1.pdf
SHOM ... well, bought yesterday, but somebody dumped it today ...
Probably down because it's a healthcare-related company that may be impacted by reduced Medicare reimbursements?
Anyone else thinking buy more here?
RG.v fate depends on NG's proceeding at Galore Creek ... however ... decision could take awhile:
"Novagold's Galore Creek study fails to impress"
af.reuters.com/article/metalsNews/idAFN1E76S04I20110729
Analysts concerned by higher cost projections on project
* Co says its assets are being undervalued by the market
* Co hires JPMorgan, RBC to help bridge the valuation gap
TORONTO, July 29 (Reuters) - Novagold's preliminary study on its Galore Creek copper-gold-silver project in British Columbia has raised concerns among analysts about increased cost projections and delays.
The project, jointly owned by Novagold and Teck Resources , could become one of the largest copper mines in North America, but the prefeasibility study indicates that building the mine will cost $5.2 billion, or about 20 percent more than some prior estimates.
The study, released earlier this week, also indicates that commercial production from the project is unlikely to begin before late 2017, or early 2018.
"We have adjusted our model for the increased capex and the later production start date," said Dahlman Rose & Co analyst Adam Graf in a note to clients. "We had previously modeled for production to ramp up in 2016."
Galore Creek is projected to produce more than 320 million pounds of copper annually, more than 200,000 ounces of gold and more than 3 million ounces of silver over a 18-year mine life.
National Bank analyst Paolo Lostritto noted that while the proposed plant size at Galore Creek is in line with his own expectations, the reserves have been trimmed to focus on higher grades.
"The higher-than-expected capital costs have negative implications for other remote mega-projects currently being considered and reinforces our view that companies which have successfully locked in capital costs during 2008 to 2010 stand to benefit," said Lostritto in a note to clients.
While the new study highlights the potential of the project, analysts say it also indicates that much more work needs to be done before a final construction decision is made.
Novagold, which also owns the Ambler copper-zinc-gold project in Alaska and a stake in the massive Donlin Creek gold project in Alaska, believes that its assets are being undervalued by the market.
The company said it has hired JPMorgan Securities and RBC Capital Markets to identify and explore various alternatives to help bridge the perceived valuation gap.
COSTS WEIGHING
Novagold is just one of many Canadian miners that are now forecasting huge jumps in capital expenditure costs. In this week alone, Barrick Gold , Goldcorp and Agnico Eagle warned that higher capital expenditures are becoming a growing concern.
Barrick said on Thursday it expects capital costs for its Pascua Lama project on the border of Chile and Argentina to be between $4.7 billion and $5 billion. The midpoint of this range is 40 percent higher than Barrick's earlier estimate.
Goldcorp, which is partnering with Barrick on the Pueblo Viejo project in the Dominican Republic, said on Wednesday that the capital cost of the project is expected to rise nearly 10 percent to between $3.6 billion and $3.8 billion.
"This rise in capital expenditures is definitely a trend we are seeing from all the miners that have reported so far," said Morningstar analyst Joung Park, discussing the cost increases that gold miner Agnico outlined in its results announcement on Wednesday.
POE.v took a 10+% tumble this morning after announcing another non-economic Indonesian well. They also said:
The results at SE Tiung-1 have no bearing whatsoever on the prospectivity of the upcoming three well program and we remain confident in the overall hydrocarbon potential of the Batu Gajah PSC.
Question: Awhile back someone (cl001, I believe ???) suggested POE may have some big potential upside if they hit their Indonesian wells. Is it time to sell POE.v or is the potential of the Batu Gajah wells worth staying invested or adding to POE.v after totay's 10+% correction?
Opinions appreciated,
'peeker
SHOM ... added some today ...
On Sale @ a penny a share ...
We'll see if the CEO can make SHOM shine ...
Sleeper stock ... Sleeper of a day ... zzzzzzzzzz
'peeker
Quiet here today. Everyone out celebrating Civic Day in Canada?
Gapping up
In reaction to strong earnings/guidance: HUM +5.4%, HBC +3.9%, HMC +1.8%, (ticking higher), CYOU +1.1%, SOHU +0.9%, .
M&A news: PAET (stock halted; PAETEC Holding to be acquired by Windstream for 0.460 shares of Windstream common stock; transaction valued at ~$2.3 bln), WWON (stock halted, Westwood One One to Merge With Dial Global).
Select financial related names showing strength: DB +1.7%, BCS +1.5%, RBS +1.3%, .
A few China internet related names are lifting following SOHU results: SINA +3.5%, BIDU +3.1%, YOKU +1.6%, NTES +1.0%.
Casino/gaming names seeing modest strength following Macau results: MPEL +4.8%, MGM +3.2%, WYNN +2.8%, LVS +1.8%
Other news: TLB +9.3% (Sycamore Partners discloses 9.33% position in 13D filing), MILL +8.1% (rebounding after the co filed 10-K Friday after the close), RCL +4.5% (still checking), GMCR +4.4% (continued strength), SD +3.7% (SandRidge Permian Trust launches initial public offering of 31.5 mln shares; will trade under 'PER'), PLX +3.1% (has submitted its reply to the Complete Response to the FDA after its review of its New Drug Application for taliglucerase alfa), F +2.4% (strength attributed to positive mention in financial newspaper), MT +2.1% and BTU +0.7% (Peabody Energy and ArcelorMittal submit all cash offer to acquire Macarthur Coal for AUD4.7 bln), AMZN +1.5% (strength attributed to positive mention in financial newspaper).
Analyst comments: SPF +6.6% (upgraded to Buy from Neutral at UBS), RSH +4.9% (upgraded to Buy from Neutral at Goldman; also added to Conviction Buy List), DAL +4.6% (upgraded to Buy at Dahlman Rose), APOL +2.8% (added to Conviction Buy List at Goldman), EMC +2.4% (upgraded to Outperform at Oppenheimer), UAL +2.1% (upgraded to Buy at Dahlman Rose), VOD +1.2% (upgraded to Buy from Neutral at UBS), JAZZ +0.6% (ticking higher, upgraded to Buy from Hold at Jefferies).
AMY.v interview with CEO in Segment 7.
States plans for future and expresses optimism that prefeasibility study (late fall) will help lift the stock. Also mentions that recent Frankfurt listing has helped the price of the stock.
http://www.kereport.com/2011/07/30/interdependence-politics-economics-investing/
Also talks about uses of Mn in the market.
Mn market demand and price will go up, and AMY.v will be there to enjoy the rise.
RG.v situation: DigiTech, what's your view?
Here's mine:
The capital raise was a good idea, and they got good terms, but NG developing Galore Creek is probably the biggest prerequisite for RG to be able to go beyond the current drilling program.
RG.v news this morning (basically just patting NG on the back) was not material. Romios needs to establish that they have some good core data. Supposedly they do have some good grade ores that they can tell us about fairly soon.
NG development of Galore Creek seems probable, regardless of the high capital requirement (>$5billion) indicated in Prefeasibility Study. To move forward they must arrange reasonable terms for loans to start the development. Chances are the Prefeasibility Study was heavy on cost (maybe even intentionally), and the eventual Feasibility Study will show some substantial cost savings and use better price estimates for Cu and Au. In other words, to go forward the Feasibility Study must show improved economics/ROI, and careful phasing of expenditures.
Not sure how long the final NG Feasibility Study will take to get written, but until that happens, RG.v will probably float in limbo here w/ less volatility that we had over the last two weeks.
JMHO,
'peeker
RG.v capital raise? Gee, didn't expect this right away.
Romios Gold Resources Inc. (TSX VENTURE: RG)(OTCBB: RMIOF)(FRANKFURT: D4R) ("Romios" or the "Company") is pleased to announce the closing of a non-brokered private placement of $3,250,000 with the MineralFields Group.
Romios placed 4,999,997 flow-through units of the Company at a price of $0.60 per unit, for gross proceeds of $3,000,000. Each unit (a "FT Unit") consisted of one flow-through common share of the Company and one-half (1/2) non flow-through share purchase warrant (a "Warrant"). Each full Warrant entitles the holder to acquire an additional common share at $1.00 per share until the earlier of: (i) the date which is twelve (12) months following the Closing Date; and (ii) in the event that that the closing price of the common shares on the TSX Venture Exchange is at least $1.25 for ten (10) consecutive trading days, and the 10th trading day (the "Final Trading Day") is at least four (4) months from the Closing Date, the date which is thirty (30) days from the Final Trading day (the "Trigger Date").
Romios also placed 480,769 working capital units of the Company at a price of $0.52 per unit, for gross proceeds of $250,000. Each working capital unit (a "WC Unit") consisted of one common share of the Company and one (1) share purchase warrant (a "WC Warrant"). Each WC Warrant entitles the holder to acquire an additional common share at $1.00 per share until the earlier of: (i) the date which is twelve (12) months following the Closing Date; and (ii) the Trigger Date.
Limited Market Dealer Inc. received a finder's fee of $162,500, a due diligence fee of $65,000 plus H.S.T. and 548,075 Broker Options exercisable into a common share @ $1.00 for a period of twelve (12) months after the Closing Date.
Securities issued pursuant to the above referenced private placements are legended and restricted from trading until November 29, 2011.
The Company plans to leave the WC Units offering open and may place up to a further 3,819,231 WC Units for up to a further $1,986,000.
The funds will be used for exploration on the Company's properties and for working capital.
"We are very pleased to be renewing our relationship with MineralFields Group" said Tom Drivas, President and Chief Executive Officer. "This is an important milestone in the growth of the Company and we look forward to working with MineralFields Group as we develop our projects."
NG feasibility study on Galore Creek Project (they will develop it):
http://finance.yahoo.com/news/NovaGold-Announces-iw-2661180973.html?x=0&.v=1
Good for RG.v: It's right next door to Romios' Teck property. RG.v drill results should not be far away, so it will be interesting to compare RG.v and NG copper and gold values.
GLTA,
'peeke
Question:
How many congressmen does it take to screw in a light bulb?
Answer:
They don't have time to do it; they're spending all their time trying to screw each other.
DigiTech, Thanks for bringing Romios to our attention. Great move today.
Steve
Cliff, thanks for the headsup on GURE. I own a little and wondered who was throwing the stones.
RG.v assays on which property, Trek, that is, the property next to Novagold?
Nice to see the price surge on good volume increase today.
PCY still looks good, but John Lee, the CEO and Chairman, is also pretty busy with NKL.v, thus he's been unable to complete negotiation on coal off-take agreements (somewhat overdue, since they've been working on this for awhile now).
That's the high level answer. I hope someone else will fill in any additional details they know.
You are right the 25% haircut on PCY yesterday seemed excessive. Both "prophecy" companies bouncing back a bit today.
Regards,
Steve
cl001, the NKL.v and PCY.v have had a great run. The conf call today seems to have included a catalyst for today's selloff. I couldn't figure out why; perhaps just the lack of any new short term catalysts, or concern over the answer to question about 2008 vs 2011 grades (many 2008 cores samples were used in 2011 along with the new ones).
What are your thoughts after the conf call today?
Yep, BER.v got stopped pending clarification of news, and some are thinking there was some kind of math error in the published estimates.
Meanwhile NKL.v had a nice confcall today and must have overwhelmed the audience with technical details on ore bodies and underwhelmed the audience with general info (like any short term catalysts, whether they will do a pp or borrow from the bank for operating capital when they run out in Sept).
NKL.v had a good conf call, but one tough question was asked about how the large increase in metal concentration was achieved where value almost doubled while they were still using cores from 2008 drill campaign. Answer indicated more samples taken from the 2008 cores were used in the current metal estimates.
John Lee said there will have to eventually be a capital raise to fund additional work as existing funds only get them thru September. No indication how they'll do it, but probably a PP (my guess), and they also are short a CEO, I believe, as John Lee is Chairman, but not CEO of NKL.v, so they must be talking to someone about taking the CEO slot (unless they work something out to sell the whole thing short-term).
CC slides are available at prophecyplat.com investor area, and the conf call audio is also to be archived.
Bad news: Prophecy Platinum now off a dollar (-18%) on the day, and Prophecy Coal down 13% as well.
Why would Mr. Rao choose to trash TARM?
Well, he shorts stocks and thinks TARM is overvalued. On top of that, TRGD is not currently trading, but TRGD owns most of TARM shares, thus TARM float is limited. If he can get TARM holders to panic, he can watch the price of TARM go down fast.
The only point I'm really trying to make is that he may have trashed TARM to take advantage of limited TARM float (due to TRGD de-registration) to make money shorting TARM.
On top of everything else, I like to think he's a young punk doing the bidding for someone else. But then again, he graduated from the Wharton business school with emphasis in finance. Mr. Biscan will probably have extreme intellectual problem (not enough intellect) trying to counter Mr. Rao's arguments.
'peeker
SSL.v good results announced:
Sandstorm Gold Announces 19 Metres of 4.67 g/t and 53 Metres of 2.09 g/t at Luna Gold's Aurizona Mine
http://finance.yahoo.com/news/Sandstorm-Gold-Announces-19-ccn-3530521389.html?x=0&.v=1
BER: Mineweb article over the wkend about the big run Friday.
(Thanks to KevinKT for bringing BER and STI to our attn.)
http://www.mineweb.com/mineweb/view/mineweb/en/page103118?oid=132117&sn=Detail&p
id=102055
Rare earth intercepts send shares of junior explorer flying to eightfold gain
BE Resources caught fire on Friday after reporting a batch of rare earth oxide drilling results, though the extent of mineralization was unclear.
Author: Kip Keen
Posted: Saturday , 23 Jul 2011
VANCOUVER, BC -
It was a heady day for BE Resources (TSX-V: BER) as its shareprice gained close to 800 percent after it announced a handful of intercepts bearing rare earth oxides from its Warm Springs project in southwest New Mexico.
With a trading volume of 31 million, BE Resources far outstripped the activity of any other company on the Toronto Venture Exchange Friday. The New Mexico-based junior started the day out with a market capitalization under C$5 million but finished it at just shy of C$40 million.
As a mineral explorer BE Resources had set out to explore for beryllium at the Warm Springs property. However, earlier this year BE Resources reported that along with some beryllium intercepts, it had hit anomalous grades of rare earths in a number of drillholes.
At that point BE Resources decided to pursue what it called a "two prong strategy" focusing on both beryllium and rare earth elements. It would appear that the latter caught the attention of investors Friday.
Among other intercepts, BE Resources reported hitting as much as 30 metres @ 19.6 percent total rare earth oxides (REO) in drillhole 3; 31 metres @ 15 percent REO in drillhole 19; 7 metres @ 8.9 percent REO in drillhole 1; and 2.4 metres @ 10.3 percent REO in drillhole 2. The ratio of light to heavy rare earth oxides was between two thirds to three quarters in favour of light rare earth oxides, BE Resources stated.
But some details on the drilling results were scant and BE Resources had not responded to phone and email requests for comment as of presstime late Friday afternoon.
BE Resources did not describe the extent of REO mineralization in its latest press release, nor was that readily apparent from a map found on the company's website Friday showing the location of some but not all drillhole collars. Drillholes 1 through 3 were not on that map, though the company did say they "were drilled on the periphery of a half-mile diameter circular structure for rare earth mineralization."
But it was still impossible to gauge how far apart those drillholes were and how far they were from the main beryllium zone where BE Resources collared drillhole 19 and most of its previously reported drillholes.
As for REO in the main zone, BE Resources has said drillholes were on a 75-foot grid, which suggests that it hit REO from drillholes collared in a roughly 75 by 100 metre area.
It was also difficult to compare the latest results with those from the previous drillholes BE Resources reported on in late April, as it presented the data in two different ways. In the first set it reported REO by each individual element and by parts per million over five-foot intervals in comparison to the raw percentages it used in the latest batch of drilling results.
Though some questions remain about the scope and nature of the REO mineralization, the REO grades were clearly compelling, as BE Resources' skyrocketing shareprice suggested.
Gareth Hatch, a founding principal of Technology Metals Research, while noting that he generally preferred to wait to comment on mining projects until after they have National Instruments 43-101 or JORC compliant mineral resource estimates, did say in an email that "if the total rare-earth-oxide (REO) content of some of these drill holes turned out to be indicative of the wider mineral resource estimate, then they would potentially have commercially significant grades of REOs, overall, and of heavy REOs in particular."
That said, Hatch stressed, "as with any project, we should not read too much into these or any drill results, until the company is able to produce at minimum, an inferred mineral-resource estimate that complies with 43-101 or JORC guidelines."
Does SHOM sell great tasting Kool-Aid or what? Nothing personal, just noting that many posts here are highly hopeful and optimistic and filled with great expectations, but I have trouble finding a lot of meat and potatoes in this company with estimated revenues of only about $1.3million for 2011.
I do own some but am reluctant to add w/o getting some more info.
Would like to know how soon they hope to be able to uplist to better exchange as they have announced. My guess is the company would be too small to qualify for uplisting prior to the merger with DC clinics?
Particularly, they haven't clarified much about the letter of intent to merge with the DC clinics. Awhile back they announced an agreement to sell their Encore division as well, but that didn't happen, so it's not clear whether this deal will happen either.
If they do merge, will the new entity be brought under the SHOM stock symbol? If so, what kind of dilution should we expect to pay the owners of the clinics for their share of the deal? In other words, they could more than triple outstanding shares, so what would that do to share price?
Is the CEO the best person to talk to about the business and plans for future or should I ask for the lady who runs operations?
Concern: The CEO tends to put out some carefully worded and very optimistic "implications" in his many news releases.
Kozuh, that sounds like something Joe Namath would do ...
As Martha says, "That's a good thing".
If you see Elvis at the next JBII stockholders meeting, tell him I said, "Viva".
If you see W, tell him the new famine in Africa is all his fault.
10bagger, SHOM does sound like an interesting company with a growing footprint in the Southeast.
When you spoke to the company did they indicate the partnership they were forming (estimated to have $7million in annual sales) would combine into a single company under their SHOM stock symbol, thus SHOM would increase annual revenues to $7million? I assume that would not be the case. Did the person you spoke to provide estimate of total 2011 revenues?
Do you like it just because it's a small, profitable company with good growth (and projecting record second half of 2011)?
Would like to understand what you consider to be the biggest positives for owning this stock, other than your already mentioning that the share count (221.7million) is fully diluted.
It appears mktcap/2011annualsales is only about 2.2 right now.
Not much volume on this one really, so any decision to buy the stock drives the price up (buying a million shares to own $10,000 worth of a 1penny stock drives the price up).
Regards,
Steve
The company would not distribute TARM shares to TRGD shareholders under these conditions. The SEC is watching Mr. Biscuit.
GRVY has a nice low float and annual revenues exceed MktCap (ratio of about 1.1). Only downside I can quickly find is it seems to have a yr/yr comparison problem. Below comment is from its TradeStation Profile:
"Gravity Co., LTD. (ADR) For the nine months ended 30 September 2010 Gravity Co.,Ltd.'s revenues decreased 19% to W36.11B. Net income decreased 52% to W3.49B. Revenues reflect a decrease in income from online gaming royalty & licensing fee & lower online games-subscription revenues. Net income also reflects an increase in research & development expenses and lower interest income. Gravity Co.,ltd is a developer and publisher of online games."
JBII: Well, yes, a stock you own going up feels much better than a stock you own going down. You are right about its crazy volatility. Good luck!
Steve
SHOM sounds like an interesting company. When you spoke to the company did they indicate the partnership they were forming would combine into a single company under their SHOM stock symbol, or do you like it just because it's a small, profitable company with good growth? Would like to understand what you consider to be the biggest positives for owning this stock, other than that the share count (221.7million) is fully diluted. Are you assuming mktcap/2011annualsales is only about 2?
Regards,
Steve
MMT.v/MAUXF.pk: UMU-8 Well Reaches Total Depth and Identifies 385 Feet of Oil Pay
CALGARY, ALBERTA, Jul 20, 2011 (Marketwire via COMTEX News Network) --
Mart Resources, Inc. (TSX VENTURE:MMT) and its co-venturers, Midwestern Oil and Gas Company Plc. (Operator of the Umusadege field) and Suntrust Oil Ltd are pleased to provide an update on the UMU-8 well in the Umusadege field.
The UMU-8 well has reached a final total drilling depth of 8593 feet. Open hole wireline logs have been run with results indicating a total of 16 hydrocarbon bearing sands. The well logs indicate a cumulative gross pay of approximately 385 feet in the 16 sands encountered by the well.
All of the UMU-8 well's primary objectives, including the IX, XI, XIIa, XIIb, and XV sands were hydrocarbon bearing sands based on well log interpretation with results indicating gross oil pay of 32 feet, 14 feet, 39 feet, 26 feet and 11 feet respectively. 9 5/8" production casing has successfully been run and cemented.
The next phase of operations will include perforating the five sands and the installation of completion equipment consisting of a dual tubing string (3 1/2 inch and 2 7/8 inch) configuration. The 3 1/2 inch tubing will have the XV, XIIa and XIIb sands completed and the 2 7/8 inch tubing will have the XI and IX sands completed allowing for future multi-zone production. After the completion equipment is installed, testing on the five individual sands will be conducted. While the dual string will allow for completion and testing of the five sands, it is anticipated that only two sands will initially be produced at any given time.
By way of update, negotiations with the operator of the export pipeline to increase export capacity for the Umusadege field are ongoing and have not yet been finalized. Mart and its co-venturers are continuing to evaluate new pipeline and export options to provide an alternative for future production capacity.
Chairman's comment:
Wade Cherwayko, Chairman and CEO of Mart, said "Initial interpretation of the logs for the UMU-8 well indicate the primary objective sands are hydrocarbon bearing, including the XI and XV sands that have no proved or probable reserves assigned to them. If testing of the XI and XV sands is successful, the Umusadege field reserves could be increased from previously disclosed reserve estimates."
Has anyone gotten thru to Mr. Barefoot or Mr. Biscuit about the de-registration "situation" to learn what the company plans to do about it?
Also, an update by TARM or TRGD on their "negotiation" status with their "letter of agreement" partners would be highly pertinent as well.
Cannot get a quote on TRGD currently; I'm wondering when Ameritrade replaces the TRGD stock symbol in my portfolio with an appropriate way for a de-registered stock.
Geeeeeesche!
Don't know how to answer your questions.
Management needs to put out some sort of explanation.
Anybody got a good email address for Mr. Biscuit? All I have is taramineralsir@gmail.com which I believe is for Mr. Barefoot(?).