StockBullz.com: Your Daily Stocks Blog - Weekly Stock Newsletter

Stockbullz.com Weekly Stock Newsletter #18

Fri, 14 Jul 2006 21:02:18 -0400

Stockbullz.com Weekly Stock Newsletter #18

July 14, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

It has been a very interesting week for me.

I missed out on the BVE superspike in volume and price on the supposed recommendation by the legendary James Dines.

As you may know, I became very interested in Bayswater during its previous volume spike a little over a week ago. I was very puzzled by this and thought something must be up. I did buy but I had to stick to taking a 25% slice in the subsequent period of weakness.

Stockbullz.com Weekly Stock Newsletter #17

Fri, 07 Jul 2006 20:11:28 -0400

Stockbullz.com Weekly Stock Newsletter #17

July 7, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

The overall Venture market crossed its 30 day moving average this week which is something very good to see.

This indicates that until something changes (a drop below the 30 day moving average), our trend for the overall market should be up.

I don’t know how long but anybody who tells you they know is just guessing.

I think you should start slowly accumulating positions in some quality speculative securities.

I will try to recap what are some of my picks that could do well in the coming months.

First off, let me start with BVE.V, Bayswater Ventures. It is now down more than 20% off the huge volume spike last Friday. I thought that this volume spike might spark a new interest and uptrend in the stock but that has not happened yet. The current share price is only one cent above the 30 day moving average so unless it moves higher on Monday you should acknowledge the stop and sell your position. Taking a small loss here is a good idea because we may have been fooled by a one day only stock distribution. We won’t know for sure until next week. But for sure if the stock moves higher on Monday stick with it because things look promising. But if it falls again, let me repeat, don’t be shy to pull the trigger and sell your position. The market is telling us that we are wrong for the time being. We must take a small loss and either wait for the next bullish trend or shift our capital elsewhere.

What other options do you have?

Well I am still cautiously bullish on Aurelian (ARU.V). The stock is up by unbelievable amounts since the beginning of the year but it can go higher. The price is still well above the 30 day moving average which currently stands at $16.89. I have also not yet seen any massive volume spikes that would signal a distribution of stock by the pros. So I say buy with a stop loss that moves up with the moving average. If the share price breaks the previous high then I recommend we average up because that means we will be going to a new all time high.

On the flipside though, be very cautious. The current upswing is scarily parabolic and most times when share prices go parabolic, they fall down parabolically to where they were before the ascent or even lower.

If the stock price loses steam and falls below the 30 day moving average, make sure to liquidate your long position and even think about going short a little. There are so many gaps upwards in such a short period of time that if even one drill hole disappoints or the Ecuadorian government decides to play a little taxation trick on us, the share price could literally tank.

Also watch the volume carefully for a volume spike because this could signal a top with the pros cashing out massive gains and selling to the euphoric masses who always lose in the markets. So just be cautious.

With all my chat about accumulation and distribution, what are some possible candidates that are currently being accumulated?

Well first of all there is Strateco (RSC.V). They had a beautiful run up from $0.36 to $1.75. In other terms, a 386% return from bottom to top. That is the best case scenario of course but I think we are currently setting up for another run like this.

The volume is low as is the occurrence of news. In other words, it could be the “calm before the storm”. The share price is currently flat lining between about $0.80 and $0.90. And it has stayed like this for over a month.

In my opinion that signifies a strong chance of professional activity. The pros always accumulate in low volume and when public interest is lowest.

The last time the share price flat lined like this was in February and March. We have currently been flat lining for about a month. That means that there could potentially be another month of flat prices while the pros continue to accumulate cheap shares. We could get a price break out sooner but I think by September it will have occurred.

Those are just musings, not predictions. I am mainly a trend follower so I shouldn’t be buying RSC. However, I am pretty sure that if the price explodes, it will really explode and even the first day could offer gains of 20%.

Therefore I think it could be wise to buy ¼ to 1/5 of the position you would feel comfortable holding eventually very soon. $0.80 seems like the bottom of the flat range so if the price dips there, establish the test position. Keep a 20-25% stop loss in case I am terribly wrong in which case you are only losing 5-7% of the position you wanted to eventually establish.

A 5-7% downside compared with a triple figure upside seems very attractive to me.

However, if the share price does break out like I think it has the potential to do, start to pyramid your holdings up. Buy another ¼ on the breakout day. Then another ¼ if the price goes higher. And the last ¼ a few days later if the price is still rising. Then keep you adjusting your stop loss with the 30 day moving average which will help us ride the winner as long as possible.

Using the above mentioned techniques, I think another stock that may currently be being accumulated is Wavefront (WEE.V). I am very optimistic about the potential of the company’s technology. The share price has recently trading in a narrow range between $1.96 and $2.20 approximately on low volume. This again opens my eyes to potential accumulation strides being made by the pros. The last time the share price flat lined like this, it subsequently rose approximately 20 fold. Don’t think this will happen again but it’s not impossible.

Once again, let’s see if we can buy in around $2.00 with a small test position with a 20-25% stop loss. If the stock breaks out like I think it has the potential to, we simply average up and shift our stop loss to the 30 day moving average.

Those are the fascinating four stocks I am watching most closely at the moment. I am very interested to see how they fare in the coming weeks and months in view of my opinions.

That’s about it for this week. Thank you for taking the time to read this and I wish you luck in your investing decisions,

Mike

Disclaimer: This letter is merely someone’s opinion. It should not be taken as investment advice. Through viewing this publication or accessing our site, you agree to hold Stockbullz.com, its operators, owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. It’s your money, so you are ultimately responsible for any gains/losses you may incur. Do your own due diligence! Writer may own positions in some of the mentioned stocks.

Stockbullz.com Weekly Stock Newsletter #16

Fri, 30 Jun 2006 21:15:12 -0400

Stockbullz.com Weekly Stock Newsletter #16

June 30, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

Today I flashed a speculative buy on Bayswater Ventures (BVE.V). Why?

Well because it experienced a huge volume and price spike that suggests to me that someone might know something big might happen soon in the future.

At the close, the stock ended up almost 51% and on volume that was good enough to be the fifth most active stock on the TSX Venture exchange. I should also mention that this volume was more than 50 times the volume of the day before. Very intriguing indeed.

Stockbullz.com Weekly Stock Newsletter #15

Fri, 23 Jun 2006 18:24:47 -0400

Stockbullz.com Weekly Stock Newsletter #15

June 23, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

This week featured a nice recovery on many of the resource stocks.

The HUI and XAU for gold stocks, 2 well tracked indexes are approaching their 30 day moving averages.

I will be watching very closely if they cross the moving averages or if they don’t garner enough steam and continue their downtrend.

I won’t try to predict what will happen because I don’t know. And any single analyst or writer who attempts to convince you with whatever evidence that he knows exactly what will happen in the future, you should take with a grain of salt.

Stockbullz.com Weekly Stock Newsletter #14

Fri, 16 Jun 2006 18:53:29 -0400

Stockbullz.com Weekly Stock Newsletter #14

June 16, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

I think you are going to see many changes occurring with the StockBullz website and the way I run it.

The main reason is the identification of a real trading strategy called Trend Following. I don’t like to admit this but beforehand I feel we were buying and hoping. Yes, I did do my due diligence on most of the stocks I talked about but timing is much more important than which stocks you buy and sell.

To add to that, I never put forward any logical exit strategy which was a big mistake. I did sometimes sell half my position at a double or 120% but it wasn’t a consistent and disciplined system.

Stockbullz.com Weekly Stock Newsletter #13

Fri, 09 Jun 2006 18:11:21 -0400

Stockbullz.com Weekly Stock Newsletter #13

June 9, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

It’s been a depressing market recently, I won’t lie about that.

It is hard to keep on waking up, looking at the markets and prices and keep seeing them lower almost everyday.

But in my opinion, this is the price we have to pay for having such a positive and profitable market for too long the first few months of the year.

When this negative time is done, I am sure we will have another prolonged rally to the upside.

StockBullz.com Weekly Stock Newsletter #12

Fri, 02 Jun 2006 17:22:06 -0400

Stockbullz.com Weekly Stock Newsletter #12

June 2, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

The overall Venture market for the past week has been quite flat. The volume has also been very low overall. Volumes are hovering around 100 million shares whereas 2-3 weeks ago we were easily passing 250 million every day.

I think the summer doldrums are coming, maybe even a little early. I think a lot of speculators have taken their speculative positions off the table and collected their profits. Now they are going to invest those profits in vacations and toys.

I think there will be some little breakouts in some stocks but overall I think in 2 months time we will be at similar levels as we are right now.

StockBullz.com Weekly Stock Newsletter #11

Fri, 26 May 2006 22:32:07 -0400

Stockbullz.com Weekly Stock Newsletter #11

May 26, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

As I had predicted last week, we had a bit of a rebound this week. Now the key question is will the strength continue or will we drop off lower or at least trade sideways for a while.

In general, I believe a sideways pattern until somewhere around August could make sense. Volumes are usually lower during the summer because the big money managers are treating their families to holidays in Europe and on the Beaches.

There could be a lot of choppy pricing and short term up and down moves because of this low volume. One trade could move the stock up 5% and the next would bring it down back 5%. And that could be as little as one or two thousand dollars moving a small stock’s price 10%!

StockBullz.com Weekly Stock Newsletter #10

Fri, 19 May 2006 19:06:54 -0400

Stockbullz.com Weekly Stock Newsletter #10

May 19, 2006

“It’s my opinion but it’s your money!”

Dear Canadian Stock Investor,

It hasn’t been a fun week in the markets (unless you're shorting). Prices were slashed on many stocks by up to 50% in this very short time period.

I am not too worried long term because this commodity bull market should last another 5-10 years but in the short term perhaps we need a little bit more time to take out our old highs.

I think we might have a “fake” rally next week that might look like a resumption in the uptrend only to fall lower towards the end of the week and/or next week.

StockBullz.com Weekly Stock Newsletter #9

Fri, 12 May 2006 18:21:32 -0400

Stockbullz.com Weekly Stock Newsletter #9

May 12, 2006

“It’s my opinion but it’s your money!”

- Anonymous

Dear Canadian Stock Investor,

The markets overall and my picks have been trading in somewhat of a 10-20% range for the past couple weeks. They go up a little, then they take back the gains.

You can’t expect everything to go straight up but even so it is always disappointing when your portfolio either moves sideways or moves down in value.

I share the same emotions as I’m sure most of you do and I think the best remedy is to watch the market less often and remain patient.

We are in the midst of what some people are predicting to be the “biggest bull market of our lifetime,” so I recommend you stay on your positions but still keep your eyes out for emerging opportunities to make more money.

StockBullz.com Weekly Stock Newsletter #8

Fri, 05 May 2006 19:01:55 -0400

Stockbullz.com Weekly Stock Newsletter #8

May 5, 2006

“It’s my opinion but it’s your money!”

- Anonymous

Dear Canadian Stock Investor,

The buzz on StockBullz this week for sure Capstone Mining. I don’t know how many of you decided this would be a wise investment but if you did buy, at this point you may be feeling a little uneasy.

Well I am too! I have a 29% paper loss. But I would hate to sell my shares at levels this low. Since my mention on Monday, Copper is up about 16%, Silver even, and Zinc up about 3%. So why is Capstone down?

Well of course it is partly due to the fact that it had to trade down because of the special Silverstone dividend. I still don’t know what that will be valued at but I think it will be able to appreciate in value extremely quick because there will only be around 20 million shares out. Plus we will get our bonus warrants that will help us cash in extra if the shares do well.

StockBullz.com Weekly Stock Newsletter #7

Fri, 28 Apr 2006 21:27:18 -0400

Stockbullz.com Weekly Stock Newsletter #7

April 28, 2006

“It’s my opinion but it’s your money!”

- Anonymous

Dear Canadian Stock Investor,

I have a tiny confession to make. Some of you may have read my short comment in response to a question on Thursday on what my position is with Nova Uranium. I said that I sold it but that is not the case. I am still holding on to my position. I have a very solid gain but I think that Nova still has room to move…especially after the recent tough times. (Yes I did say that you should always have a 25% stop loss but I am doing this as an experiment to see what happens when I don’t obey my stop loss.)

StockBullz.com Weekly Stock Newsletter #6

Fri, 21 Apr 2006 21:37:05 -0400

Stockbullz.com Weekly Stock Newsletter #6

April 21, 2006

“It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything.

But there is only one side to the stock market; and it is not the bull side or the bear side,

but the right side. It took me longer to get that general principle fixed firmly in my

mind than it did most of the more technical phases of the game of stock speculation.”

-Jesse Livermore

Dear Canadian Stock Investor,

It was quite a rollercoaster ride the past week on the market. We dropped over 170 points on Thursday and then we recovered most of it on Friday.

It is yet another piece of evidence that our raging bull market is not going to be straight up. Sure the trend is up, but not straight up. I am sure we will have many more 150+ down point days in the future. But I think we will also see some 150+ point up days as well.

The factor that is going to decide how much you make or lose in this market will be yourself. That’s right, do you have the guts to stay in the game with this type of volatility? I know it won’t be easy at some times but I think this will be the key to making the most money possible over the next year or two.

I think a great example of this will be my top two picks: Nova and Silvercorp. For the past two weeks, they haven’t been moving much. Nova is even down quite a bit off its highs.

Now some of you may be getting impatient and you might want to start investing in faster moving stocks. But like I said, you usually can make the most money if you find very high quality stocks and stick to them for a while.

Short term stock movements are extremely unpredictable so you should try to do yourself a favor and try to stick with your picks for longer periods of time.

Of course, I’m not the one making your choices. They are yours to make. I’m just suggesting strategies that have made me and many other successful investors a ton of money over the years.

This flows into my next topic. Whatever investing decisions you make, you must understand that they are solely your own.

So, if you read about a stock I’m researching or liking, and it tanks, it’s not my fault, it’s yours.

If you read about a stock on my site or somewhere else and you buy it and it goes up, you shouldn’t give too much credit to the source of the pick. You should mainly congratulate yourself for making such an outstanding pick.

StockBullz.com Weekly Stock Newsletter #5

Fri, 14 Apr 2006 17:44:15 -0400

Stockbullz.com Weekly Stock Newsletter #5

April 14, 2006

When I'm bearish and I sell a stock, each sale must be at a lower level

than the previous sale. When I am buying, the reverse is true.

I must buy on a rising scale. I don’t buy long

stocks on a scale down, I buy on a scale up.

Jesse Livermore

Dear Canadian Stock Investor,

I mentioned that I would tell you about another 2 possible picks but I’ve decided to outdo myself and mention 3 this week.

[April 16, update: DON'T BUY CANWEST; HERE'S WHY: LINK]

StockBullz.com Weekly Stock Newsletter #4

Fri, 07 Apr 2006 18:39:47 -0400

Stockbullz.com Weekly Stock Newsletter #4

April 7, 2006

“Wide diversification is only required when investors do not

understand what they are doing”.

Warren Buffett

Dear Canadian Stock Investor,

Quite a bit of things to talk about for this week so let me get right to it.

First off, I want to let you know that I am removing 4 stocks from the recommended table. They are PLY, CEK, CNS, BSKO.

I have not like how PLY has been moving ever so slowly downwards for the past month or so. I don’t like their chart and even though some news has been released, it doesn’t appear to have much effect on the share price. PLY was always intended as a speculative trade and I more than doubled my money on it in about a month. Now I’m moving on, looking for a better place to invest my money in. I hinted at this last week and this week it’s off the chart.