StockBullz.com: Your Daily Stocks Blog - One Canadian Investor's Opinions on Silver, Uranium and Resource Stock Speculating

Worst Over?

Thu, 24 Jan 2008 10:11:33 -0500

I think there is a good chance we have reached a bottom. The day the Venture was down around 9% was the panic selling day and since then it looks like we are on track for a 3rd day of good gains.

If you sold out your test position in Mega, consider coming back in again. It may seem weird to exit a stock then come back into it but nobody can ever predict 100% what will happen in the future. So we have to test our theories with smaller positions and then increase our position as the stock goes up.

Because if the price is going up that means we are right. And until the stock stops going up we should continue adding to our position.

If you are not familiar with this technique, try it out and see if it gives you results. I have found this technique to be the most effective in minimizing losses while still providing good gains because we try to ride out positions as long as possible.

Mega Buy

Thu, 17 Jan 2008 10:53:39 -0500

Oh no! It's the end of the world! Big News was that TSX loses 623 points in just a couple days.

It's funny that right before this everything was so positive with Gold hitting new highs and newspaper articles talking about fund manager's "herd mentality".

So what does this all mean?

Well we are at a very volatile time in our markets with large moves up and down with a general flat trend. I myself am holding put in my positions and establishing some test postions in some beaten up stocks.

What stocks?

Well the first I want to talk about is Mega Uranium (mga.to).

If you look Mega's chart there is nothing bright about it. The stock is off of its highs in the 9 dollar range to its current price below $3!!!

So yes you can say it has taken a beating!

But the thing that I find very positive about it is that Sheldon Inwentash, its CEO has been buying up the stock hand over first the last month or so in the $3 level.

This is a man who has made money time after time with stock after stock. In other words, this is a man who has a very good reputation and who's actions we should watch closely.

Time To Get This Show Back On The Road!

Wed, 02 Jan 2008 19:01:57 -0500

Happy New Year!

Boy I just looked at the time I posted last and it has been almost a full year since my last post. The past year has been a very challenging one for resource stocks but I am very optimistic about 2008.

Oil is over $100, Uranium is bouncing back to $90 but where are our dear share prices?????

In the pits!!! And more than half of Canadian fund managers are predicting drops in the TSX.

But remember folks, monkeys have a better chance of outperforming the TSX than fund managers do, so whatever they say to do, we should be doing the oposite!

So how did I do in 2007 you may ask??

Well here is a little rundown of what I was in:

KXL: Huge gains, I am very satisfied. Stock went up sharply, then down sharply. I started buying when it was flatlining. The stock is now hitting new highs and I still in but with my finger ready to pull the trigger if it drops 10-20% from current levels.

NUX: Was a large holding of mine. Am slowly downsizing but the management team is still great on this dormant stock. Good news will definetely boost this stock very fast. Right now sitting at about two bucks off highs of around 3.50 so it'll be interesting to see how long it will take to run higher.

The Contrarian Approach Right Now On Uranium Stocks

Tue, 23 Jan 2007 15:42:41 -0500

This past weekend, one of the biggest resource conferences was held in Vancouver again this year. I was not there but I know several people who were.

Here is a quick comment that is very interesting to me: I just got home from the Gold Show. A quick comment. There was a panel on uranium and the general consensus was that the sector has had a really good run and it was time to get careful.

Although I agree that uranium has had a nice run the analysts are all just looking out for their own necks. Nobody wants to stick it out and take a different view.

The way they are thinking is that some profits have been made so now I can't go wrong at all by telling somebody to take profits. But they don't even go that far. They say "get careful". What does that exactly mean? Sell some? How much? So many questions...

Anyways, I am going to stick my neck out and say to stay fully invested in uranium and keep on buying more. I think when these boys all join up again with the stocks up much higher than they are now and encouraging everybody to keep buying more, then that will be the time to start selling.

Thoughts

Wed, 03 Jan 2007 19:00:54 -0500

The Uranium sector as a whole has been quite hot for the past couple months and our favorite size of stocks, juniors, have been performing very nicely, with many posting triple digit returns.

However, instead of chasing the hottest stocks, I am looking for companies in the right resource sectors (such as uranium) that are lagging.

Most small cap resource stocks, due to their speculative nature, go in cycles. That is, they go up and then they come down. Therefore, to profit the most and on the most consistent basis, it is preferable to buy small cap resource stocks after they have fallen from their highs and are either flat lining or beginning a new upward trend.

Then after you have made some decent profits (you decide what you want), cash in your profits because there is a very high chance that the stock will come down after a while.

So in summary, try obey the ever lasting principle of "buy low, sell high".

Before I conclude this posting, keep in mind that patience is very important. It can sometimes take weeks or even months for your stock to bounce from its range. Stick with it for a while and you will often be rewarded. If you cut too fast and start to chase the fastest moving stocks at the moment you will undoubtedly get caught on the downfall of most of these because they drop as fast or even faster than they rise.

Unpredictability Of The Future

Tue, 24 Oct 2006 21:31:32 -0400

In the past 3 days we have witnessed what I think is a wonderful (or not so wonderful) example of the unpredictability of the future; that is, nobody can successfully predict the future on a consistant basis.

In case you have not read the news yet, here it is:

Cameco Corporation reported today that all underground areas of the Cigar Lake project are expected to be filled with water following a rock fall yesterday. Efforts to protect the main shaft and key underground infrastructure by closing bulkhead doors were not successful. Everyone was safely evacuated by 11:30 a.m. today. There were no injuries and no impact on the environment.
Cameco will now investigate options to restore access to the mine. Production startup was previously planned for early 2008 and we will assess a new production timetable after remediation plans are developed. Cameco is operator and majority owner of the Cigar Lake uranium project located in northern Saskatchewan.
The incident began at 1:10 p.m. on Sunday, October 22, 2006, in the future production area that previously had been dry. At 8:45 p.m., in accordance with existing contingency plans, the company decided to close two bulkhead doors to contain the water inflow within the future mining area. The doors were closed at 5:00 a.m. on Monday, October 23. While monitoring the area, we found that one of the doors did not seal properly which allowed significant water to flow into the processing area. Efforts to fully seal the door were not successful and the inflow exceeded capacity to pump out the water.

What The Contrarian Would Do Right Now:

Thu, 05 Oct 2006 11:58:30 -0400

Contrarians almost always make money because they do exactly the opposite of what the masses are doing.

Let's see what the masses are doing:

"Gold in New York

tumbled the most in three months as plunging energy costs reduced the

appeal of the precious metal as a hedge against inflation. Gold

is down 21 percent from a 26-year high of $732 an ounce on May 12,

partly because the price of oil has dropped 24 percent from a record in

July. Crude oil fell below $60 a barrel to a seven-month low."

"'Everybody is getting out of their positions,'

said Nick Ruggiero, a trader at Eagle Futures. 'Crude came off almost

$3 this week, and gold is following.' Losses accelerated after gold

fell below $600. 'That was a big number,' Ruggiero said. 'We had a lot

Massive Uranium Merger!

Tue, 19 Sep 2006 02:06:56 -0400

TORONTO, Sept 18 (Reuters) - Denison Mines Inc. (DEN.TO: Quote, Profile, Research) and International Uranium Corp. (IUC.TO: Quote, Profile, Research) have agreed to merge in an all-stock deal that will create a mid-tier uranium producer, the companies said on Monday.
Under the terms of the agreement, Denison shareholders will exchange each share for 2.88 IUC common shares. Based on IUC's Monday closing price of C$5.91 on the Toronto Stock Exchange, that places a value of C$17.02 for every Denison share. Total value of deal is about C$522 million, based on 30.7 million outstanding Denison shares.

Buy, Buy, Buy??

Fri, 15 Sep 2006 12:44:05 -0400

With this so called "melt down" in commodities right now, you should be really thinking about buying instead of selling.

Why? Because everybody is scared and panic selling.

The media is doing its part by proclaiming the commodity boom is over and everything is going to go down.

I highly doubt it. Nothing is impossible of course but our supply-demand situation is still out of whack. China and India are still building and creating a new middle class with much money to burn on luxuries that require value commodities.

Keep in mind that the people (contrarians) who will always make the most money are those who do the opposite of what the masses and media are doing.

Don't expect to be able to perfectly pick the bottom of this "blowout". To play it safe, perhaps wait until commodities are bouncing up 5-10% off their lows are starting a (possible) new uptrend.

Now my previous comments were related more to trading commodities directly. Many of you probably don't have such capabilities and/or don't want to trade commodities.

Market Looking Good For The Near Future

Fri, 01 Sep 2006 14:28:12 -0400

Here is my analysis:

Buying depressed shares of speculative juniors seems like a good idea and this is what I am doing with my own portfolio.

Sold IEA.V

Fri, 25 Aug 2006 12:53:30 -0400

This morning for a quick 20% profit. It might continue to move higher but a 2 day 20% profit is nothing to be ashamed about I think.

International Arimex Breaking Out!

Thu, 24 Aug 2006 13:57:16 -0400

This stock had a great flat chart until it broke out yesterday. I put in a limit order yesterday morning but it did not execute. Today I tried again and I did get some.

As long as volume is higher tomorrow it should continue to go up for several days.

Look at a 6 month chart of URA and you will see that it is almost identical except for prices. More detail to come very shortly...

My Current Holdings

Tue, 22 Aug 2006 13:40:32 -0400

I won't elaborate too much but here are my current stock holdings in no particular order:

RSC.V

BCF.V

CAO.V

SST.WT.V

LBE.V

NUX.V

KXL.V

I believe they all have good upside to them or else I wouldn't be in them!

And The Winners Are...

Wed, 16 Aug 2006 10:43:00 -0400

Robert from Omaha

Arjun from Surrey

Will from Vancouver.

Thanks to all those who entered. I wish I could give you all free DVD's but I only have 3! :(

I just came back from the post office so you should get your dvd's in about a week.

3 More Gold Rush 21 DVD's To Give Away!

Tue, 15 Aug 2006 21:32:10 -0400

I have 3 more gold rush 21 dvd's to give away to 3 separate people. There is no catch here folks, the first 3 people who send their mailing address through the contact form will get a dvd sent out tomorrow in the mail.

Rules:

-you must not have won the past contest ;)

-your mailing address must be in canada or the usa.

That's about it. I'm feeling too lazy to organize a contest etc so here is your lucky day if you're reading this.