DGRI up 11%. Nice to see some well followed individuals in the gold space find Dutch.
Trader Tracks Trading Alert 05-21-07 9:45am
NEW JUNIOR HIGH FLYER JUNIOR GOLD STOCK- DUTCH GOLD RESOURCES, INC.
DGRI) $1.43(US) PRE-OPEN THIS MORNING.
The company is USA based and is a developer and operator of PROVEN GOLD MINES. The company has opened an old mine in Oregon, upgraded the existing mill to 330 Tons Per Day from 120 Tons Per Day. The mill is fully operational and is expected to be operating at 100% within the next two quarters. This is not an exploration company. The first month of production, March 2007 produced 985 ounces of gold worth roughly $640,250 at $650 per ounce.
The company has reported finding free gold in its current mining operations which is unusual and is being checked by geologists for further reporting. During this quarter, the company expects to average four shipments of concentrate per month. Most importantly, they announced a plan to be become fully reporting with the SEC. Upon completion of this event, they would be posted on the USA OTCBB.
The company was merged into Tombstone Western Resource, Inc. in January, 2007. SEC filings were expected to be completed by the middle of this month. The shares on the 52 week range traded between $.25 and $3.00. Posted volume on Bigcharts today is 27,600. The highs and lows have been $1.35 to $1.44 per share.
There have been a steady stream of posted announcements from March through this date on Bigcharts and also Yahoo Finance.
THIS IS A HIGH RISK FLYER STOCK. WE NORMALLY DO NOT RECOMMEND PINK SHEET STOCKS AND
PREFER BULLETIN BOARD LISTINGS AS A MINIMUM.
However considering they are fully permitted and in production, we think they are more advanced into development than many junior OTCBB listings. There is strong price resistance at $3 per share. We recommend buying the stock at the market and holding it IN ADVANCE OF THE OTCBB APPROVED LISTING. UNDERSTAND THE GOLD AND SILVER MARKETS RIGHT NOW ARE IN THE CORRECTION MODE AND ARE NOT FINISHED AS YET. PRECIOUS METALS CAN SELL LOWER FOR ABOUT ONE MONTH AND WE EXPECT IT. IN JANUARY THIS YEAR, THE SHARES WERE TRADING NEAR $2.40
AND HAVE BEEN DECLINING IN PRICE EVER SINCE BUT HAVE NOW STABILIZED NEAR $1.50. TRADERS CAN WAIT TO BUY LATER AFTER THE GOLD CORRECTION OR BUY NOW IN ADVANCE OF THE PROPOSED OTCBB LISTING APPROVAL.
WE ARE EXPECTING SHARES TO RISE AFTER THE LISTING IS APPROVED AND THE METALS CORRECTION IS OVERWITH. IF YOU BUY SHARES NOW, EXPECT THEM TO SELL DOWN SOME MORE FOR AT LEAST A MONTH AND PERHAPS MOST OF THE SUMMER. HOWEVER, IF YOU WAIT FOR A FEW WEEKS, THE SHARE PRICE MIGHT BE CONSIDERABLY HIGHER BASED UPON NEW PRODUCTION AND THE SEC FORTHCOMING LISTING. IF YOU BUY NOW, DO NOT USE SELL STOPS.
WE THINK YOU MUST ENDURE A CURRENT POTENTIAL TEMPORARY PRICE DECLINE. WE THINK THE STOCK CAN SEE $3 RESISTANCE BY SEPTEMBER, 2007 OR SOONER. CONSIDER THIS STOCK HIGH RISK. WE ARE LOOKING FOR A DOUBLE BY FALL.
Roger Wiegand
Editor Trader Tracks Newsletter
& The Rog Blog at webeatthestreet.com
