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Looking at the Venture Exchange's chart for the past 6 months, it really has been a good ride.

I hate calling downturns because they are so hard to call but it seems to me like we might have a little one still for a week or two.

Just looking at the commodities themselves, Gold recently hit around $730, Silver over $15, and Copper over $4.

These are massive gains all around and we all know that everything doesn't go straight up. It goes up for a while then retreats a little, only to move past its previous high.

So there could be an ~10% correction in many markets over the coming week or two.

Of course I can't predict the future but that is just what the charts are showing me. They aren't always right but many times they are.

This doesn't mean to liquidate all your positions and hold cash. It simply means to keep your eyes open to new buying opportunities. Always keep in mind (during a bull market) these two phrases:

1. Buy on the Dips

2. Sell into Strength, Buy into Weakness

After reviewing my Capstone cash flow analysis from the past weeks, I noticed I made several errors. First I didn't factor in the cost of transporting the product after it is mined and milled which more than doubles the production cost. Then I forgot to apply taxes to the earnings along with a share of profits being sent to their 10% partner.

The bad news of course is that my revised cash flow estimates will be lower than before.

However, since metals prices continue to surge to new heights every week, the impact is not that large.

Capstone is still mighty cheap and I cannot believe it is trading this low. Here are the revised numbers.

Revenue:

16,000,000 lbs copper x $3.9081= $62,529,600

4,000,000 lbs zinc x $1.7131= $6,852,400

700,000 ounces silver x $15.15= $10,605,000

Total Revenue= $79,987,000

Costs:

Warren Buffett used to be the King of Investing. Used to?

Well he hasn't been able to achieve his market beating returns for a while now so that's why I am using that terminology.

Anyways, he has an annual shareholder's meeting that is very popular. It was held over the past weekend. Here are some of his comments:

On the real estate bubble

Buffett: "What we see in our residential brokerage business [HomeServices of America, the nation's second-largest realtor] is a slowdown everyplace, most dramatically in the formerly hottest markets. [Buffett singled out Dade and Broward counties in Florida as an area that has experienced a rise in unsold inventory and a stagnation in price.] The day traders of the Internet moved into trading condos, and that kind a speculation can produce a market that can move in a big way. You can get real discontinuities. We've had a real bubble to some degree. I would be surprised if there aren't some significant downward adjustments, especially in the higher end of the housing market."

Like I told you after the Calgary Resource Conference about 2 weeks ago, 2 central themes that most writers were expressing were: "take some money off the table" and "buy on the dips".

In hindsight, it would have been pretty smart to take 20-30% of your more speculative positions off the table eh? Hindsight is always 20/20 but nonetheless it's always interesting to look back at what we could have done differently.

Now the next tip was buy on the dips. I am looking at the Silvercorp share price right now and it stands at $17.20. That is about 10% cheaper than the financing that just closed.

Sprott Securities Inc. and GMP Securities L.P. as co-leader managers and co-book runners, together with a syndicate of other dealers including, CIBC World Markets Inc., MGI Securities Inc., Salman Partners Inc. and BMO Nesbitt Burns Inc. (the “Underwriters”) , collectively bought 2,501,250 units from the Company (“Units”)at a price of $19.10 per Unit. Each Unit is comprised of one common share of the Company and one half share purchase warrant. Each whole warrant is exercisable for a period of eighteen months from the closing date at a strike price of $24 per common share.

I fired off a quick email to Capstone regarding the Dividend record date and I got the following response:

Normally there is a 3 day settlement so you should be ok.

Please call us with any further questions.  604.684.8894.

Thanks

Sarah

So if you buy today you should get the dividend. Do some of your own research on the company and if you like it then you know what to do...