Tuesday, April 26, 2011

Gold/Silver Continues Up - Get some Corn and Wheat!

Goombarh 55 - April 26th, 2011
Good Afternoon,

Been busy, have not sent out anything recently.  Sorry about not notifying for the Gold Precious Metals (PM) volatility yesterday and today; because it is options expiry for the month again.  Therefore sit tight with your positioning, the PM will recover.  Silver has touched $50USD and then drops 10%.  Gold reaches new heights and then drops 1%.  Comex has decreed new margin requirements:  http://www.zerohedge.com/article/cme-hikes-silver-initial-and-maintenance-margins-9; but it is to no avail, as there is still strong buying coming in with each decline.  Check the strength in the daily moves up, even as the day starts negative, in the chart following of Goldcorp.
My sense, is that there are further gains in PM ahead still and the May factor is not here yet.  Look at the trend of the GLD being supported by the SPY, so as regular markets move up, so will the precious metals.  See the following chart of GLD compared with the SPY.

What about the Gold miners, you ask?  Well, I just bought GG.ws Goldcorp warrants, as I think only the strongest of the strong leaders, they will still move up.  As for the others, such as GBG, I believe the moves will only come after strong production reports, and that is only likely this fall.  This time here is for accumulating the Great Basins and Silvermexes of this world.

As previously mentioned, I have bought DAG, the double bull agriculture ETF because there will be a wheat and corn shortage this summer.  This will serve as my cash holding until the fall metals runs start, later this summer.

Until next time,
Marco G.

Tuesday, April 12, 2011

Westernzagros if you believe in the Kurd Oil story - I do

Goombarh 51 - April 12th, 2011
Good Afternoon,

Well isn't that bad timing, the minute I recommend Westernzagros (WZGRF, TSX:WZR), they announce:
Not exactly sure, what they mean by this.  All drilling in Kurdistan, by all other companies, as far as I know has been extremely difficult, due to the folded carbonate structures of the mountains and the extreme high pressures in this prospective area. 

This was probably the spark of the report by Reuters...reporting from Bangalore of all places...and stating "WesternZagros shares closed at 6 Canadian cents on Monday on the Toronto Stock Exchange.", an obvious error that was not corrected.  This is the link to the financials released this morning.
The Reuters news summarized the financials with the "going concern" statement possibly in error, or possibly as ineptitude, as this is standard public company disclaimer.  My read of this is to buy more at the bargain price.

Until next time,
Marco G.
Further to yesterdays selloff on Westernzagros, Reuters have withdraw their item:

ADVISORY-Alerts and story on WesternZagros withdrawn
12 Apr 2011 12:30 ET
April 12 (Reuters) - Please be advised that the alerts and story on WesternZagros raising going concern doubts is wrong and is withdrawn. The 'going concern' qualification was part of the company's routine disclaimer and had been previously published.
There will be no replacement story.
((Bangalore Equities Newsdesk +91 80 4135 5800; within U.S. +1 646 223 8780))

I bought more shares.

Monday, April 11, 2011

Top Safe Picks @ Bargain Prices - GBG, GGCRF/SLX

Goombarh 50 - April 11th, 2011
Good morning,

All is well with Great Basin Gold (GBG), though the market does not appreciate this emerging mid-tier producer.  News this morning:
More exploration finds at Hollister with high grade extensions off their existing gold veins and surface exploration startup.  This I believe will be the key to unlock the future potential of GBG.  It is possible to find another deposit similar to Hollister at their claims! At Burnstone the ramp up is on-going, and they are finding more Gold in the Kimberly layered sediments that is the reef.  The thickness is greater than expected and the grades are higher than expected.  However, as the mine is in South Africa, the market will just ignore this, and will wait for the expected Gold output information before re-rating the share price, this fall.  Great Basin is just a great bargain at this price level!

As stated in the Silver article sent out yesterday, I believe Silvermex (GGCRF, TSX: SLX)is a great bargain at this price level also!

Those are two, underestimated strong precious metal stocks, while Gold and Silver prices are pursuing higher prices.  One can do no better that these two for a relatively safe, yet prospective stock.  I would not be concerned about the ups and downs, as multiples are in store for these two.

Further thoughts for readers, I do understand that there is a varied background out there.  On the one hand, I advocate paying attention daily, as I try to do, yet on the other, I say the buy and hold is dead.  Many readers would not have the time available to perform daily monitoring of your positions, nor would you wish to, as there are other things to do in life.  Do not try to emulate, the jumping in and out of stock positions, as I seem to be doing recently.  For a longer term hold, meaning over 1 year, the above two stocks cannot be beat in my opinion.  Their strong management coupled with their prospective mining properties are an ideal mix for the rising environment for equities, precious metals rising and demand growth stemming from the emerging markets middle classes.

Enough said, and now I am looking for more risky and volatile situations for myself and other traders.  As disclosed previously, I have positions in:
·         Pacific Wildcat Resources (PWCRF, TSX: PAW) - Rare Earths in Kenya Africa.
·         Ethiopian Postash (TSX:FED) - KCL in Danakil basin in Ethiopia.
·         Compliance Energy (CPYCF, TSX:CED) - Coal in BC Canada.
·         Shore Gold (SGHDF, TSX:SGF) - diamonds in Saskatchewan, Canada.
·         Anvel Gold (ANVZF, TSX:AVK) - gold miner in Mali, Africa

Until next time,
Marco G.

Friday, April 8, 2011

Goombarh Gets Luck with Century Mines - up 20%

Sometimes, one gets lucky, ya buys a stock and next day it starts moving.
Century Mining has the high-grade Lamaque mine in Quebec Canada, but try as they might, the ore even though high grade veins is ornery to mine consistently for a profit.
Now their San Juan mine in Peru, has regulatory sniffing around their tailings dam, causing stoppage and concern.
Well, what better to buy, during a Gold spike, than a beaten down Gold mienr?
Marco G.

Goombarh Flash 20,  April 6th, 2011
Quick flash to you.

Century Mining (CMNZF, TSX:CMM), has fallen 12% on the back of news in Peru, curtailing mining temporarily:

Now, previously, this Russian White Tiger Gold was going to buy them out:

I haven't done my full DD, but this company was what saved me in the 2008 crash coming back from 2 cents.

Gold mine with 2 operations both high grades supported by Gravity of Fran Scola, when Gold is hitting all time highs?  I believe all the bad news is now out.  Only up from here.

Disclosure:  I have bought shares.

Until next time,
Marco G.