Replies to post #3835 on UNICO INCORPORATED (AZ) (fka UNCO)

[LOLOMAI]

You brought back a memory. An artist friend of mine once told me that to be an artist you must first learn all the rules of your craft. You become an artist when you begin to break those rules. His name was Pablo. A hell of a guy.

[AAAtrades]

I agree this has a lot more potential than FMNJ... it is definitely worth it to research exactly why FMNJ had such a nice run like that..

I have studied it quite a bit... and my conclusion?

well yes, FMNJ had some news that they had an offical agreement with COMIBOL to start mining the cerro rico in Potosi Bolivia, and also they were officially going to start and oil and gas operation...

but IMO a lot of this was hot air...

Yes it was good news... but where is the beef so to speak?

If you plot the stock price of FMNJ on the same chart as the gold price you will discover some interesting clues...

FMNJ did not start is stratospheric run from the start of the 9 month gold rally which started 8/31/2005

instead the FMNJ rally started somewhere in the middle of that run..

more interesting, the FMNJ rally blow off peak run from .012 cents to .14 cents happened only during the most speculative BLOWOFF portion of the gold price run up.....

so why am I mentioning this? what is my point?

my point is that the most spectacular profits in FMNJ was achieved during the FINAL most persistent speculative leg in the price of gold move... 3/24/2006 to 5/11/2006

there were plenty of times to sell before that... sure you could have made a profit, but would you have made the motherlode profit? no.. not unless you held for that final price spike and blow off peak..

so I do see a similar thing happening with UCOI.. it will roll along going forward... trending higher... not making too much noise... 3 steps forward... 2 steps back..

but only in the final most speculative leg of this next gold price run up will UCOI blast off with very rapid price movement and price spikes... and the only people who will be able to reap those profits will be the ones still holding their shares...

so what is the best strategy?

it is simple for me anyway... sit tight with shares in the early trend... and all the while keep a close eye on the gold price..

clearly the major most awaited move in gold is to take out the all time high 850 or so...

to SELL UCOI at any time before this event is in my honest opinion a huge huge mistake!

The level of bullishness at that time will start to become so high that people will be scrambling to buying anything that has to do with precious metals..

so anyway, a key point to watch is when the gold price peaks out.. that will be a good time to identify a price peak in UCOI

the great thing about UCOI right now is that I have studied the chart and what I see is a superb bottoming formation...

UCOI has bottomed out... so then final sellers were washed out...then we saw some HUGE buy volume spikes after ucoi has bottomed out.. this was initial accumulation before the mark up stage...
we had a decent base and now the mark up phase appears to have begun as evidenced by the heavy volume accumulation in an uptrending price pattern...

the nice thing about the move in UCOI that impresses me is that we are seeing UCOI start to move up in a very positive uptrend before the gold price has even begun to breakout of it it's one year long symmetrical triangle! this is unusual and very positive.

the reason why I say it is unusual, is because many times or most times I see the penny stocks as being the LAST ones to move in the overall bullmarket... that was the case with FMNJ...

but ucoi seems to have an early start which is very positive going forward.

I really do think that .50 cents target is very possible.. especially as we get into the later phase of the gold price bull and gold exceeds 850+ per ounce...