Are the Mahdia Gold Posts Getting Old Yet?

I'm sure they are, but this company is just so fun to kick around the mud..they make it so easy.

That being said, I should clarify that I was once invested in the company as I felt that there was actually a project there. Unfortunately, as I have outlined in some depth before, the company is run by the likes of those who prefer to scam a bit of money out of retail investors then put in some honest work and develop a project. It was a good lesson and digging deeper into the past of some of these guys hiding out on venture/CNSX.

Now, the issue with Mahdia gold has always been its inability to spend the money they raise, something that a few years ago they did in no small amount (even getting Mike Wekerle to drop in 4 mill), on anything actually meaningful. Its been over 5 years now and with over 14 million raised in this course of time, not even a lousy 43-101 report. As I'm sure most would assume, the vast majority has gone to management costs, with Zaakir himself having years where his salary as CEO was close to a million.

I imagine that the end of Mahdia's time with the Omai property is coming to an end. In 2011 they entered into an agreement with the government of Guyana for a prospecting license. In January 2012 they were "officially"awarded the license and details of the agreement were released; the company was the pay an overal sum on $11,500,000 to the Government of Guyana Mines Commission (GGMC). So..go back a few months when the payment was due. The GGMC comes knocking saying they have not made agreed upon payments. Zaakir negotiates and extension, the terms of which were released on December 9th 2014. The terms of the extension state that they have until November 16 2015 to have the ten million paid off...in installments...the first of which is to be made March 15th 2015.

So...in a month and a half's time the company will have 9 months to pay off $10,000,000, assuming they are able to make the first payment come March 15th. The news releases do not state the exact structure of the payments; likely they do not want to scare of any dummys left who think this might be a good thing. Oh...and as per the last financials, the company had 67k cash in the kitty.

Managment "scoured the very difficult and trying financial markets" (their words not mine) for months and the best they could come up with an alluvial gold JV with a local "mining" company. The pictures on their website show just how small time their operation is. Of course, Zaakir has his hand in this company (there is now actually 2 JVs in place...). The company has cited thievery from the projects as reason for the consistantly dissapointing numbers. The highest yield yet was 118.5 ounces. The Mahdia stake in the two joint ventures is 25% and 50%. Needless the say..not a lot of money ending up in the Mahdia bank account.

I'll be paying attention to the March 15th date to see if they end up making a payment or if they defualt. I bet on default.

Checking in on Biosyent

I wrote this post on December 26 in which I outlined what I thought was a biosyent swing trade opportunity. I was right that it would break through resistance, wrong in thinking that it would go through some sideways movement before continuing up, it just continued up.

I exited today. Everyone has their stocks that they play, stocks which they have watched long enough that a certain variety of intuition begins to become clear and is truly a special feeling.

I have been posting more direct trades lately and should take a moment to make it clear that I am not, nor am I qualified to, giving financial or investment advice. Anything I write on here is merely a personal blog which tracks my personal investments, investment opinion (mostly related to the mining sector), and anything else I feel like posting.

Anyways...Updated chart.

Kim Jong Un and His People at Their Best.

Daaaaaamn! I got a laugh out of a few, as they are truly creative and a nice change from typical political rhetoric. A real show of prose by the North Korean government. My personal favorite being...

"The United States, with its large physical size is oblivious to the shame of playing hide and seek as children with runny noses would"

Now, I've been thinking this one over and over and have come up with a couple of theories.

A) He is referring to a kid so engrossed in his game of Hide and Seek that he is oblivious to his runny nose, a over sight of personal hygiene that is, by all accounts, shameful.

B) He is claiming that hide and go seek is a shameful game per se, adding the kids with runny noses as literary imagery.

C) He is using hide and seek as a metaphor for the supposed attack on their 3G network. Implying that the states are like little kids, playing games, when really they should be a man about things. You call your enemy "a wicked black monkey" to their face and then promise "inescapable deadly blows", None of this internet hacking bullshit.

D) He is comparing the United States to a fat kid playing Hide and Seek; the kid being to fat to really play the game well, and the runny nose coming from the difficulty that fat kids experience when they physically exert themselves...and that it is all very shameful.

UPDATE: A friend of mine who majored in Asian History and Language Studies, specializing in North Korea, took the time to translate what Kim Jong Un actually meant by the above statement.

"The United States, with its large physical size is oblivious to the shame of playing hide and seek as children with runny noses would"

Translation: "TROLOLOLOLOLOLOLOLOLOLOL"

Biosyent Trade Opportunity

Looks like there will be a swing opportunity here from the $10.20 range up to the $10.90/11.00 point. The stocks' sideways movement over the last three months has been range bound between ~$10 too $11 with a few quick and short lived breakouts from the R/S levels. The last break had greater longevity, which can be seen by the relatively longer and slower climb back up to the $10 mark. It has now broken through the R line, closing just a bit above its 50 DMA. I expect it to climb up towards the $11 dollar mark and bounce around in a sideways movemeent before breaking out and up.

Like I have stated before, I came along this company from PS Daves now defunct blog "Vancouver Venture" where he claimed it to be a pump job. I've had a number of successful trades with V.RX and hope that it keeps on giving.

T.PLI Once Again

Going to get into this upon Monday morning, depending what happens of course. I think it could be prepared for another 15-20 cent run here, hoping I can play it off the 1.85 line a few more times.

Fairly simple chart, although I am drawn to the large amount of volume that occured on November 18th, where 30 mill shares were traded, inter-day trading from 2.06-2.21. Investor psychology can be very stubborn in regards to "getting out even" (actually I recall Edwards and Mcgees book having a good section on investor psychology and its role in creating resistance/support lines). I have a feeling that any advance will get held up there.

OceanaGold Update

Waited to see if it would break the line of resistance at 2.60 after taking a good and quick run up to it; it didn't, falling fairly quick through the previous support line. Interesting to see how quickly the price broke down once dipping below is 50DMA.

I suspect it will bounce off support at 1.90, which is also the bottom of its bollinger and retest the 2.07 level.

Anyways, this trade didn't pan out, but I strongly believe in an upturn once it hits the next line of resistance. This stock is swinging quickly here between zones.

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.