OceanaGold Chart

Its looking like there will be a play here. We will have to wait and see if it breaks through the resistance line or not come Monday.

Don't know much about this stock to be honest...I've been pretty indifferent to the mining sector as of late, just stopping by for a few laughs here and there.

I have a feeling it will not break. A couple of the other indicators I like lead me to believe it will bounce back down to the support level, or somewhere near it. before attempting it again. Last days close did touch it on its interday trading high but, although closing higher on the day, was not able to break through.

My PLI trade worked out pretty well, and this is a similar set up. I will be keeping my eye out over the next couple of days to see what it does.

Clearwater Seafood

I was involved in the Aquaculture industry and for this reason any company selling seafood does interest me.


I have come across a company called Clearwater Seafood. I like them. They have a 660 million dollar market cap and have only 55 million shares out. They just released solid 3q financials.


Stock has gone up substantially this year but I believe there is still long opportunity to be made. Take a look at the chart.


Disclaimer: As of now, I do not have a position in Clearwater Seafood.

Ah...once again Sphere and Mexivada at the Same Old Game

I've written on Sphere resources a number of times now; in fact it is getting quite embarrassing that I would spend so much time talking about it. But...I like to point things out.

Remember when I called Mexivada a "real estate company"? Meaning that they basically option out moose pastures for the 10-40k cash that comes along with the option agreements, and any free shares they (Redfern) might be able to sell on the market. Well, they have done it again.

The Poker Flats is a property they have been screaming about for years now. It is adjacent to Gold Standard Ventures Railroad property where in the past they have hit some very nice grades. The border of the poker flats is actually about 75 meters from where where a series of promising holes were drilled by GSV, leading Mexivada/Sphere to believe that they could, or at least talk like they could, have drill few decent holes themselves.

Now...one would think that if they were actually serious about it, if they really thought they had a discovery, they would raise the cash to drill 3200 meters, but no, in over 4 years they have done only a aerial magnetic scan and nothing else.

Well, the option agreement ran out, I actually just wrote about it a week or so ago; the post where I pointed out that Sphere publicly stated they had earned in on their initial 51% interest, and then retracting the statement by saying they had renegotiated the option agreement.

So, lets begin with the stupidity:

Mexivadas Sept 8th news release regarding the newly negotiated terms of the option agreement.

"Optionee can earn a 51% interest in Poker Flats (the "Property") by compensating Mexivada and underlying lessor in 1) a payment of$10,000 in cash on signing to Lessor(paid), 2) Payment of $10,000 to Mexivada on or before October 31, 2014, and 3) issue to Mexivada Mining Corp. 750,000 common shares of Sphere Resources Inc. to Mexivada within 60 days of its earning a 51 percent interest in the property and 750,000 common shares of Sphere Resources Inc. within 60 days of the Optionee acquiring a 75% interest in the Property"

 So, they have renegotiated the terms on a property that, while holding such "promise", has seen no work done to it at all in 4 years? You would think that they would prefer to actually explore the property themselves, given Spheres current track record of actually doing exploration work.

But no, the $20,000 cash and the 1.5 million of 0.005 cent shares is preferred.

Interesting, because here is Mexivadas Dec 22nd 2010 release which states the original terms of the option agreement 4 years ago.

 "Optionee can earn an 51% interest in Poker Flats (the "Property") by compensating Mexivada in 1) a payment of $25,000 in cash on signing (paid), and 2) issue to Mexivada a) 200,000 common shares of Sphere within 60 days of the Effective Date of December 20, 2010, and b) investing a sum of $500,000 into the property in exploration and development expenditures (inclusive of assessment work) over a 36 month period from the Effective Date. Optionee must issue 300,000 common shares of Sphere Resources Inc. to Mexivada within 60 days of its earning a 51 percent interest in the property."

So, I reiterate, no interest at all at in conducting exploration on this property. Redfern from Mexivada is happy with the cash payments (which have totaled $40,000 so far) from the option agreement and the cheap paper he can sell. Sphere is happy to be able to continually tout the Poker Flats property to retails investors, hoping to raise some cash for "management fees" and sell their free paper as well.

To further make my point, lets take a look at some of Spheres press releases. One will notice that these PR are purely IR hype rather than the release of any material information. Lets begin with 2013...

-September 04 2013: Sphere resources confirms strategy and updates efforts to identify existing gold and silver resources in Nevada. If you find yourself asking what this actually means, you are not alone. I would recommend reading the press release as it is quite hilarious. GSV had put out some decent results that day so Sphere used it as an opportunity to use a publicly dessiminated news release as an IR move. Seriously..read it, it sounds like a bad junior PR move, which it is. You will find that no material information is announced.

-September 23 2013 : Sphere Resources Has Engaged a Senior Geophysicals Consultant to Initiat a CSMAT On Its Poker Flats Property. Of course, engaging doesn't really mean a whole lot, nice choice of words. And did this scan ever happen? No.

-September 19 2013 : Sphere Resources on its Poker Flats Property Adjacent to Gold Standard Ventures Railroad Property. Another news release put out the same day as GSV releases exploration results on their Railroad property. Again, no material info is being disseminated.

- October 2 2013 : Sphere Resources on Its Poker Flats Property Adjacent to Gold Standard Ventures Railroad Property. Yes...same release following another GSV drill results release. Not that I need to say it, but no material info.

-October 23 2013 : Sphere Resources Outlines Specifics On Its Phase 1 Drill Program On Poker Flats Nevada. Here they outline nearly $500,000 in projected exploration costs, of course, they still have no money with which to conduct said "outlined specifics", although it does mention something about their "new york advisers" and their $10,000,000 bond financing (Another funny news release which can be read Here )

- September 18 2014 - Sphere Resources Outlines Financing Approach and Phase 1 Drill Program at Poker Flats: Still outlining financing and drill programs a year later. Not a single whole drilled...


There are more releases to this effect, and some starting before 2013, but for the sake of brevity I chose only enough to make my point, which I think can be clearly seen.


To give further evidence to my claim that Mexivada is a "real estate company" lets take a look at some releases from Mexivada regarding their "properties" and how they have optioned them out.

- February 1 2008 : Mexivada options Jefferson Options Gold/Silver Project to Stoneshield Capital. The release states " Under the terms of the Option agreement, StoneShield can acquire an initial 51% interest in the Property by incurring a total of US$3,500,000 in exploration expenditures on the property as follows: a minimum US$100,000 in expenditures on the Property to be incurred in the first year following TSX Venture Exchange acceptance....In addition, StoneShield will make cash payments of US$50,000 to Mexivada on Acceptance and US$50,000 to Mexivada on the first, second and third anniversary dates of Acceptance". Much like Sphere, stonesheild "commenced" work on the Jefferson Property but...no results to be found.

- December 22 2009 : Mexivada Options Goldstorm Gold Project to West Kirkland Mining. From the news release "Under the terms of the Option agreement, WKM can acquire an initial 56% interest in the Property by incurring a total of US$2,900,000 in exploration expenditures on the property, $340,000 in cash payments". The payment scheme is broken down into payments over 4 years, with a 90k payment upon "acceptance". Kirkland has a release stating it has commenced drilling, but I cannot find a release where any results are stated.


- May 31 2010 : Mexivada Options Yecora Gold/Silver Property. They optioned it to a company named District Gold inc. In addition, DG will make cash payments of $50,000 to Mexivada within 30 days of the Effective Date and $50,000 to Mexivada within 90 days of the Effective Date, and $25,000 on the first anniversary of the Effective date, and the sum of $40,000 by the second anniversary of the Effective Date, and $50,000 by the third anniversary of the Effective Date, as well as issue to Mexivada 200,000 shares of DG


- May 25 2010 : Mexivada Executes options of Tellurium Gold/Silver Property : They optioned this property in Mexico out to a company called California Gold Corp, which traded on the OTC board. The structure was the same, cash payments of 40k and 50k. This company is actually quite funny as well, as they ended up becoming part of their subsidiary MV Portfolios; a companies whose current corporate activity includes suing Google over a virtual realestate mapping/viewing program that was, allegedly, stolen from them . The agreement between CLGL and Mexivada has since been terminated.





 

Trading Prometic (T.PLC)

I've been watching Prometic for a while, trying to get a feel for it. It seems to be on an intermediate uptrend. The Bollinger Bands contracted before the last move towards the intermediate line of resistance, which it tested before bouncing off.

Notice how at 1.70 the price moved up to the diagonal resistance line, bounced off it and came below its 20 day moving average before going above it again and repeating the same process. It has done this twice now, and has tested resistance 3 times.

Here we will see if it breaks the line, as the third time is generally considered the charm, or if it goes back down below its 20DMA to again test the diagonal support line before moving up. It does seem to be in a trend, making higher highs as well as higher lows in this trend which has lasted a bit under a month.

The TSI does indicate that it is running out of steam, and its exit of the BB and subsequent lower close does ssuggest it will retest the support level again before breaking out of its trend. Either way, I cannot tell and will have to wait for confirmation. If it breaks the resistance line by an amount equivalent to 3% or more of the stocks price, and opens higher on the following trading day after that break, I will see it as a strong up movement and would go long. If it goes back down and resumes this intermediate trend I would assume it to be doing just that and play it as such.

One last item to consider is that the stock is testing is year-to-date high as well. As can be seen, it failed in its first attempt to go higher, closing lower the following day, albeit with a very small candle body (and no higher than opening price). Either way, whether it goes through a small down movement or goes to new highs right away, I see a long opportunity here (the stock has been in an uptrend for the last couple of years so, either way...not a hard call).

Anyhow, here is that chart.

 

EDIT:

Was helped by a bit of news, but today it has seen a good break through. Very good Long opportunity in my opinion (please read disclaimer at bottom of blog)

 

A Post about Joran Van der Sloot

Yes..I'm a little late to the party when it comes to the whole Van der Sloot case. I heard about the case when it was receiving news coverage but never really looked into it.

Natalee Holloways' unsolved disappearance, the murder of Stephani Flores, Van der Sloots strange confessions, their subsequent retractions, and schemes, has been of great interest to me as of late.

Having spent the last 3 years living in Nicaragua, I have seen a number of foreigners who are not quite right in the head commit rather serious crimes and become the subject of local interest for it. The majority of these people, I found, had many similarities to what has been written about Van der Sloots character, basically a problem with vices (whether is be Gambling, booze, drugs, or women).

Anyways, I ended coming across a copy of the love letters that he had sent to a women he impregnated and married while in one of Perus toughest prisons..or supposedly so.

So..what does it say?

For the love of my life:

Each day that passes I realize something very, but very, important, the beauty that you are, the extraordinary that you are with me, you make me very happy. I truly love you, and it is not only an obligation, I have already decided to love you with all my soul. I want to spend the rest of my life together with you, and for this I am very happy. I can imagine, think, believe but there is nobody better for me then you, in my eyes you are perfect. I only ask one thing of you, that I be your reason to be and exist as well, that you love me with madness if possible and that you give all of yourself to loving me. That you don't let anything stop you from loving me (I'm going to translate it this way as I think its the closest thing to what he is trying to say in English) and that you do not lie to me.

I know that it sounds very egotistical; it is only because I as as well am ready to do the same, love you with madness, passion, respect, compassion, support, and all that is necessary and that you ask of me. I am going to give you all that is within my reach to make you the happiest women in the world, that you do not desire anything but to be together in this life with me.

By yours always, Joran

Quite fantastical indeed. Granted, it does sound a little less up in the clouds in Spanish then it does in English, as Spanish does make much more room for romanticism that English, but still...a bit much for a women he only met through the visiting hours.

The women to whom Joran is writing has stated that she does not fear him, that she sees him as a changed man. Many believed that his marriage was an attempt to circumvent extradition to the USA, and, apparently, the Peruvian laws change if the person is a resident.

I knew a guy in Nicaragua who ran over a man in his truck one morning after a night of drinking. He owned a hostel outside of the city in the woods which was notorious for the same things that he was known for, drinking and drug use. He ran over the man, then assaulted a few people who tried to stop him from fleeing the scene. Rumors also state he assaulted police officers when they arrived and tried to detain him.

Either way, he went to jail, and they put him in the worst of the cells, before his lawyer finally got him moved to a better place.

When the man was released (his family had paid the victims family some amount of money was the story) there was a large group of people waiting outside with rocks and bottles, which they threw at him as he got into his transportation.

He was public enemy number one for a while. The man was not right, he had issues which were obvious to any half way sane person who had spoken with him. Like Joran, he was a compulsive liar who was victim to him own vices but, above all, by no means a stupid man.

Anyways...there was no point to this post, but its my blog and I can write what ever I want on it!

Pentagon Briefing Suggests Canada to Buy 4 F-35 Fighter Jets

I guess we need some now, we can't wait for out 65 planned jets in 2019...with Putin making all his claims to the Arctic, maybe we do need them.

Either way, Canada will be part of a handful of nations to have these radar evading air crafts.

Have a read here!

USD Chart

I don't post a whole lot about currencies because it was out of the scope of this blog but, as previously stated, I'm going to start writing about things outside of the junior mining/resource sector because, frankly, not a whole lot to write about in regards to the juniors.


Anyways, I pay close attention to the USD for obvious reasons.


The Fed printing the inflation apocalypse aside (and, pardon me, but where is that all that inflation exactly?) the USD does not actually look bad. A number of the economic indicators are actually very encouraging, but there are people who do cover that stuff better then I. Anyways, heres the weekly chart for the USD.

As you can see, it played around with that resistance/support channel for a while before breaking through with some authority, hitting the next resistance level, bouncing off of that back down to the new support, retesting the resistance level and breaking that (looking at it now, the horizontal line should be a bit lower, my mistake. I thought it would need to test it 3 or 4 times, as it did previously, before it broke through, but just one test then through.

I have decided to use the TSI here because it shows less lag than the RSI and shows a point more clearly that I would like to make. The initial breakthrough and testing of the 87 line was accompanied with quite a surge in the TSI and the second test, which broke the resistance line, was characterized by much less activity in the TSI, having it reside in a much more convincing area then it was when it tested (do you follow me?). May be a bit over bought, but I believe it will settle down as the support is subjected to a quick test or two before continuing up to the next test at 89-90.

Here is the monthly chart, which I think shows the R and S zones more clearly. Used the RSI becuase given the fact that it is a monthly chart it seemed more appropriate. Here, the RSI is much more tame, being almost in the middle of the indicators index despite the break through.

The USD has looked really quite good since 2011, despite the common rhetoric of many writers, commentators and analysts. It is hitting its 5 year high and gives no reason to believe it will not push above it. Of course what do I know..the whole thing could crash and burn tomorrow..but I don't think so.