Tuesday, December 4, 2012

Sprott – We Will Go Public If They Don’t Send Us Our Silver

from King World News
Today billionaire Eric Sprott spoke with King World News about his latest silver offering and how much physical silver it will vacuum out of the market. He also issued further warnings on the crumbling financial system. This is the third and final in a series of interviews with Sprott which reveals what is going on behind the scenes with the increasingly desperate Western central planners and their gold and silver price suppression scheme.
Eric King: “The financial system, the central planners are struggling to keep it together here, Eric. How do you see this playing out because the crises always accelerate in a phase like this?
Continue Reading at KingWorldNews.com…

Is Olivut The Next 100 Bagger? :OLV.V

There are few opportunities in the market for a 10 bagger, but what about a 100 bagger? Yes that`s right, having a share increase in price by 10,000%. Obviously any such investment does involve a very high degree of risk, but sometimes the reward outweighs it.
One such stock is Olivut Resources, OLV.V, and they are drilling for diamonds in Canada. One big plus this company has going for it is Pierre Lassonde, a mining legend invested his own money in it.
They are expecting drilling results from their property any day.

 In a recent interview with Pierre Lassonde, who owns 18% of Olivut Resources (OLV), we were reminded of the recent developments at Olivut Resources. Olivut Resources is a development stage exploration company which primarily holds a 100% share in the HOAM project in Canada, which is a huge kimberlite deposit. The value of this deposit could control the top end of the diamond market. Pierre Lassonde talks about a possible 100 times increase in the share price because the site could contain an in situ value of $20 billion and a net present value of $2 billion. The market capitalization of the company is currently just $36 million.
Based on extremely positive indicator mineral chemistry, geophysics and drill results to date, management believes that there is a high probability that economic kimberlite pipes remain to be discovered in the project area. Drilling (10-hole drilling program) has…concluded for the year…with results known by the end of 2012. Investors can speculate on these pending results at a bottoming price level as seen in the chart below. "

More can be found here

Top 10 Reasons Why You Should Invest In Mining Stocks

In consideration of the muted share price performance of the mining sector...here are the top ten reasons to consider investing in mining stocks...

1. They Go Down – The extreme share price volatility expressed in the mining sector represents probably it's best attribute. As we both know, volatility scares the heck out of people, and extreme volatility shakes out the fair weathers…creating amazing buying opportunities for those who understand what volatility offers.

2. Nationalization of Mines - It is true many countries in the world today are taking action against qualified companies developing natural resource deposits. Their actions usually include appropriating the property, removing competent developers, and installing incompetent developers. Once the asset begins to crumble, the country again opens it's doors, and asks for outside help. Large, influential companies may effectively navigate these waters, but most lack the financial power to handle such an assault. Therefore, strong premiums will develop in the share prices of companies in favorable jurisdictions. The safest in the world might include the U.S., Australia, Mexico, and of course Canada, which might be the safest.

3. It's Just Paper - In a period of growing concern over paper assets, financial firm and stock brokerage bankruptcies are becoming common. The level of anxiety in the Western financial system is growing, with the gold and silver community representing those with the most distrust towards the system. However, the accumulation of this distrust over time…results in simply weaker share prices. This equates to cheaper shares for investors to purchase, and potentially cheaper acquisitions for companies and funds looking to buy. One might also say…"But if the broker goes bankrupt…your paper will be worthless." Sure, if there is fraud on behalf of the broker, that can happen. But in a recent conversation with a transfer agent at ComputerShare, I was told, "It's mostly financial firms and corporations who use direct registration and paper share certificates,"--both of which, are available to individual investors (to read my report on these methods, please see my website). This indicates smart money is aware of systemic/brokerage risk, and is actively using these free defensive ownership methods.  (more)

Here Is What Will Break The Massive Silver Short Positions

from King World News
Today John Embry spoke with King World News about the recent action in gold and silver, and what will overcome the massive paper short positions in the silver market. Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say: “I was struck by a comment from Tim Geithner that the US is going to be fazing out pennies and nickels in early 2013. The reason he gave was that it costs a great deal more to make them than they are technically worth.”
John Embry continues:
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Three cash-rich copper, gold & silver ideas for 2013

2013 ideas - ARL at 44 cents, VIT at 27 cents, and LVN at 36 cents  

I. Note: This past week The Gold Report published an interview with Rick Rule that provides some excellent insight into junior resource stock investing. It is worth taking five minutes to read.


II. This weekend I am throwing out a few alternatives for 2013. Small company (micro cap) valuations across the board continue to defy normal logic and I must admit there are many days when I shake my head in amazement (or disgust). I am hoping this comes to a head over the next few weeks once tax loss selling is removed from the equation.

I have been buying penny stocks for almost 30 years so this isn’t my first rodeo. However I am finding it a real challenge even bottom fishing stocks because normal valuation logic doesn’t apply right now. I can fully understand when I hear people say they are throwing in the towel for the time being. This is a rough environment to be a penny stock speculator.

The three companies I am commenting on this weekend all have large bank accounts and proven reserves or advanced exploration programs. Cash continues to remain king as it is very difficult for companies to finance.

I was going to leave Africo out of the report because liquidity is horrendous – the stock rarely trades. However, some of you may have an interest because of the large discount to cash value.  (more)

These $5 Stocks Could Make You Double-Digit Profits in the Next 2 Months

The January effect is well-known among traders and finance professors. Years ago, it was discovered that small-cap stocks tended to outperform in the month of January. Of course, it is possible to prove almost anything with data, so we should only trade based on ideas that are supported by logic, and there is a logical reason why we should see this pattern.

Experts believe that investors sell their losers before the end of the year and that creates bargains. Small-cap stocks are more volatile and would be expected to sell off more under the pressure of tax selling. Since the selling will probably push some of these stocks well below their fair value, a quick rebound after the end of the year is likely to occur.

Since the January effect was first noticed in the 1940s, it seems like it has been occurring earlier and earlier. In most years, small caps now outperform in December as well, and with the extraordinary focus on taxes this year related to news about the fiscal cliff, now seems like a good time to start hunting for bargains among small caps. To reduce risk, we want to find stocks that are beginning to recover after a sell off. We found two drug stocks that look like great trades.

Amicus Therapeutics (NASDAQ: FOLD) is a company with several drugs in various stages of the approval process. The company is already generating revenue and has a partnership with GlaxoSmithKline (NYSE: GSK) that is doing well in the $1 billion market for the treatment of Fabry disease (a rare disease that can lead to early death from heart or kidney failure). The company is losing money for now, but analysts have set a price target of $8.40 on FOLD, more than 45% higher than the recent price.

The chart supports the idea that gains are likely.

FOLD Chart
The price has bounced off support and the pattern shows a price target of $7.16, about 25% higher than the current level. The stochastics indicator at the bottom of the chart confirms the buy, and the Bollinger Bandwidth in the center of the chart shows that a large price move is likely to occur soon.
The Bollinger Bandwidth is near a six-month low and volatility often increases when this indicator declines. While the Bollinger Bandwidth does not forecast the direction of the price move, other indicators do point to potential gains in FOLD.

Recommended Trade Setup:
-- Buy FOLD at the market price
-- Set stop-loss at $5.30
-- Set initial price target at $7.16 for a potential 25% gain in two months

Raptor Pharmaceuticals (NASDAQ: RPTP) shows a similar chart. The pattern provides a price target of $6.61, which is about 27% above the current price level. Again we see a low Bandwidth, indicating that increased volatility is likely, and a stochastics buy signal.
RPTP Chart
Analysts that follow RPTP have set a price target of $9, a possible gain of more than 70% from where it's trading now. The company should make a big move before late January when the Food and Drug Administration (FDA) is expected to announce an approval decision for a drug RPTP is testing. This announcement could lead to a large gain if the news is favorable or a large decline if the drug is not approved or requires additional testing. The risk should be managed with a stop-loss at the 20-day moving average (MA), currently at $4.73 and moving higher along with the stock price. Raise the stop once a week if the MA continues to rise.

Recommended Trade Setup:
-- Buy RPTP at the market price
-- Set initial stop-loss at $4.73, and use the 20-day MA as a trailing stop if the price rises
-- Set initial price target at $6.61 for a potential 27% gain in two months
These two stocks could benefit from the January effect and they are each buys even without that seasonal tendency. RPTP has more risk than FOLD, but also offers much greater potential long-term gains if the company receives good news from the FDA. Because the risks in these stocks, and small caps in general, are so large, be sure to use stops when trading them.

First Solar, Inc. (NASDAQ: FSLR)

First Solar, Inc. engages in the design, manufacture, and sale of solar modules using a thin-film semiconductor technology in the United States and internationally. The company is also involved in the design, construction, and sale of photovoltaic solar power systems. Its solar modules employ a thin layer of semiconductor material to convert sunlight into electricity. The company's integrated solar power systems activities include project development; engineering, procurement, and construction services; operating and maintenance services; and project finance. First Solar, Inc. sells its solar modules to solar power system project developers, system integrators, and operators; investor owned utilities; independent power developers and producers, commercial and industrial companies, and other system owners.

To review First Solar's stock, please take a look at the 1-year chart of FSLR (First Solar, Inc.) below with my added notations:
1-year chart of FSLR (First Solar, Inc.)
FSLR imploded in February and fell from a high of $50 down to a June low of $12. Since then, the stock has been slowly trending higher (blue). From the end of August until mid-November FLSR has created a $26 resistance level (navy). Last week the stock finally broke through that $26 resistance and did it on a nice increase in volume (red). As the saying goes, “Volume adds validity”.

Sprott: Shorts May Need To Deliver 40 Million Ounces Of Silver

from King World News
Today billionaire Eric Sprott spoke with King World News about key players on the Comex that may be standing for delivery of as much as a staggering 40,000,000 ounces of silver. This is the second in a series of interviews with Sprott that will be released today which reveals what is going on behind the scenes with the increasingly desperate Western central planners and their gold and silver price suppression scheme.
Eric King: “We have the LBMA eliminating reporting on silver lease rates, we covered that extensively with James Turk. There is frustration out there. How much longer can they keep gold and silver effectively manipulated? Are we getting very close to where they are going to lose control of these markets?”
Continue Reading at KingWorldNews.com…