Visible Gold Mines - VGD.V
August 11 - last trade .34
47.5 million shares o/s
I've been watching Visible Gold for a while now, and finally bought a few after their recent news release of August 11 on their Wasa Creek Property.
http://www.visiblegoldmines.com/press-release/detail-42.html
The company is in northwestern Quebec, in the Rouyn-Noranda region. There are 4 properties, the Joutel Project, Cadillac/Lucky Break, Stadacona East, and Silidor-Capricorne.
Of interest is the Cadillac/Lucky Break property which is near Osisko's Canadian Malarctic (OSK.T) open pit mine. As of mid-July, three drill rigs are operating in the northern portion of the Lucky Break Project over the newly-named Wasa Creek Property which covers claims immediately south and west of Richmont Mines' growing Wasamac deposit, 15 kilometres west of Rouyn-Noranda.
Their Senior Geologist and Vice-President Exploration, Robert Sansfaçon, was involved in the discovery of Osisko's Canadian Malartic deposit, and has over 30 years' experience as an exploration geologist which includes more than a decade as a project manager for Lac Minerals Ltd.
The company is well funded, with over $5 million in cash (last time I checked), and 47.5 million shares o/s. Funds own approximately 30% of the outstanding shares and Inwentash (Pinetree Capital) bought in February 2011.
Click to view a QUICK FACT SHEET on Visible Gold Mines.
When I wrote this in early August, the chart showed weakness after reaching a high of .375. Major support is at .26 and I thought .30 might be a decent entry level.
But, did I buy at .30?? nooooo. totally ignored my own technicals and didn't buy. The stock has jumped on the news from August 11th and will have resistance at .36. I was filled at .345.
I don't think this is one that will skyrocket overnight, so there's plenty of time to put in some stink bids on lousy trading days.
VISIBLE GOLD CHART
The company has been covered by Coffin Brothers research, Jay Taylor, Bullmarketrun, Jim Dines, Lawrence Raulston and others.
Click HERE to read Bullmarket Run's latest update on VGD.V
As always, do your own due diligence and visit the company website for more information.
Visible Gold Mines Homepage
The latest interview can be found here
mms://media.kitco.com/weeklyreport/Fulp&Graham20110802.mp3
Friday, August 12, 2011
Sprott Canadian Equity Fund
This makes a nice addition to those with longerterm RRSP's that are difficult to trade, especially if held with a financial advisor. (the trade fees are usually too high)
The Sprott Canadian Equity fund is a decent longterm hold for those interested in an equity fund that usually outperforms. It's composed of 80% materials, and 14% energy stocks, cash and "other".
The interesting thing about this one is they also hold silver and gold bullion. 20% silver, 7% gold. Those are the 2 top holdings in the fund. The MER is 2.8% which is high, but it's an outperformer. I've held this since late 2009 and it's up over 52%.
79.7% is invested in Canada, 4.6% U.S., 14.8 International and .9% other.
Top holdings as of March 31, 2011 (it's really hard to get recent holdings for the Sprott family)
Silver Bullion & Certificates - 20.9%
Gold Bullion - 7.1%
SLG-X Sterling Resources Oil and Gas Producers Canada 2.4%
AVR-T Avion Gold Other Mines Canada - 2.3%
EAS-X East Asia Minerals Metal Mines Canada - 1.9%
CDH-T Corridor Resources - Canada - 1.8%
YNG-T Yukon-Nevada Gold Precious Metals Canada Stock - 1.6%
FR-T First Majestic Silver Precious Metals Canada - 1.6%
- South Boulder Mines - Canada - 1.5%
CSI-T Colossus Minerals Precious Metals Canada - 1.4%
http://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/summary/?id=54788
Note: considering the slide in SLG - Sterling Resources it is unlikely that Sprott continued to hold this equity after March, so use caution.
The Sprott Canadian Equity fund is a decent longterm hold for those interested in an equity fund that usually outperforms. It's composed of 80% materials, and 14% energy stocks, cash and "other".
The interesting thing about this one is they also hold silver and gold bullion. 20% silver, 7% gold. Those are the 2 top holdings in the fund. The MER is 2.8% which is high, but it's an outperformer. I've held this since late 2009 and it's up over 52%.
79.7% is invested in Canada, 4.6% U.S., 14.8 International and .9% other.
Top holdings as of March 31, 2011 (it's really hard to get recent holdings for the Sprott family)
Silver Bullion & Certificates - 20.9%
Gold Bullion - 7.1%
SLG-X Sterling Resources Oil and Gas Producers Canada 2.4%
AVR-T Avion Gold Other Mines Canada - 2.3%
EAS-X East Asia Minerals Metal Mines Canada - 1.9%
CDH-T Corridor Resources - Canada - 1.8%
YNG-T Yukon-Nevada Gold Precious Metals Canada Stock - 1.6%
FR-T First Majestic Silver Precious Metals Canada - 1.6%
- South Boulder Mines - Canada - 1.5%
CSI-T Colossus Minerals Precious Metals Canada - 1.4%
http://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/summary/?id=54788
Note: considering the slide in SLG - Sterling Resources it is unlikely that Sprott continued to hold this equity after March, so use caution.
Tuesday, August 9, 2011
Mining for quality shares backed by gold
Globe & Mail article from July 26
Excerpt:
Take New Gold Inc. (NGD-T10.190.484.94%) as an example. At current gold and copper prices (HG-FT4.010.051.29%), according to analysts, the company could produce cash flow of between $2.60 and $3 a share in five years. Using an average historical multiple of 15 times, for big producers, yields a stock price between $39 and $45 a share.
Where’s the stock today? About $10. Investors clearly aren’t interested in producers or they’re skeptical about the gold price. And some caution is warranted. Mining gold is a tough business, notwithstanding every yahoo who claims to have the mother lode and a mine plan.
http://www.theglobeandmail.com/globe-investor/investment-ideas/fabrice-taylor/mining-for-quality-shares-backed-by-gold/article2110483/
Excerpt:
Take New Gold Inc. (NGD-T10.190.484.94%) as an example. At current gold and copper prices (HG-FT4.010.051.29%), according to analysts, the company could produce cash flow of between $2.60 and $3 a share in five years. Using an average historical multiple of 15 times, for big producers, yields a stock price between $39 and $45 a share.
Where’s the stock today? About $10. Investors clearly aren’t interested in producers or they’re skeptical about the gold price. And some caution is warranted. Mining gold is a tough business, notwithstanding every yahoo who claims to have the mother lode and a mine plan.
http://www.theglobeandmail.com/globe-investor/investment-ideas/fabrice-taylor/mining-for-quality-shares-backed-by-gold/article2110483/
Saturday, August 6, 2011
U.S. rating downgraded, and Obama's smoke & mirrors
A close friend of ours is involved in commercial real estate, and they are very successful. I thought you might be interested to hear some of his comments about what he sees in the market, the U.S. economy, and the housing crisis.
First, let me say that he does think there will be a pullback in real estate in Canada. This does not mean a crash like the U.S. had in the housing markets. He has spend weeks travelling back and forth throughout areas of the U.S. looking for deals in the commercial real estate and he hasn't been able to find one. He said that the houses that are going for fire sale prices are quite a distance from any industry and are in areas that people don't want to live. These homes were slapped together, and sold to people who couldn't afford to even buy a home...I'm sure most of you are aware of the rest of the story and how it unfolded. His point is that commercial real estate is still going strong, and is healthier than we are led to believe.
He went on to say that Obama's spin to the media, was total hogwash about the U.S. government not being able to send out cheques if congress didn't raise the debt ceiling. This was priced into the market prior to any announcement by the government raising the debt limit. The last few days of selling may have been an over reaction, and was driven by fear, short selling and hedge funds needing to unwind positions that were heavily leveraged.
Bottom line is, commercial real estate is still going gangbusters in Canada and properties are holding their value in the U.S. The only trouble might be down the road. You see, much of this commercial property is being developed for companies like Walmart, Costco, and other superstores. This is big business, but what are they really selling us?? Cheaper and in many cases inferior products made in China, Japan or Taiwan. What will happen when the Chinese suddenly realize they can demand a pay increase? We will end up the losers, as we pay more for goods that could have been manufactured at home.
If we are to survive in this global economic environment, it's time to bring back manufacturing to Canada and the U.S. The unions need to realize that in order to compete, they must have common sense on what are reasonable pay rates, medical and other benefits. If we don't, China will be the next world power as we fall behind.
Canada cannot rely on natural resources, that are finite in nature and do not replenish. We must bring back manufacturing and actually "produce" something.
First, let me say that he does think there will be a pullback in real estate in Canada. This does not mean a crash like the U.S. had in the housing markets. He has spend weeks travelling back and forth throughout areas of the U.S. looking for deals in the commercial real estate and he hasn't been able to find one. He said that the houses that are going for fire sale prices are quite a distance from any industry and are in areas that people don't want to live. These homes were slapped together, and sold to people who couldn't afford to even buy a home...I'm sure most of you are aware of the rest of the story and how it unfolded. His point is that commercial real estate is still going strong, and is healthier than we are led to believe.
He went on to say that Obama's spin to the media, was total hogwash about the U.S. government not being able to send out cheques if congress didn't raise the debt ceiling. This was priced into the market prior to any announcement by the government raising the debt limit. The last few days of selling may have been an over reaction, and was driven by fear, short selling and hedge funds needing to unwind positions that were heavily leveraged.
Bottom line is, commercial real estate is still going gangbusters in Canada and properties are holding their value in the U.S. The only trouble might be down the road. You see, much of this commercial property is being developed for companies like Walmart, Costco, and other superstores. This is big business, but what are they really selling us?? Cheaper and in many cases inferior products made in China, Japan or Taiwan. What will happen when the Chinese suddenly realize they can demand a pay increase? We will end up the losers, as we pay more for goods that could have been manufactured at home.
If we are to survive in this global economic environment, it's time to bring back manufacturing to Canada and the U.S. The unions need to realize that in order to compete, they must have common sense on what are reasonable pay rates, medical and other benefits. If we don't, China will be the next world power as we fall behind.
Canada cannot rely on natural resources, that are finite in nature and do not replenish. We must bring back manufacturing and actually "produce" something.
Friday, August 5, 2011
Sinking stocks, emotions and the puke factor
I've had a very difficult time in the markets these past few months and the past 2 days have my stomach in knots. The TSE hit a high of 14329 back in early March, and closed today at 12,162 after hitting an intraday low of 11, 894. That's a 15% correction.
Anyone who's an investor knows that sinking feeling. You know what I'm talking about...the feeling of euphoria when your stocks hit highs and do well and you're on top of the world celebrating. You look at the charts, and see that slowly there's a downturn signal but keep telling yourself when it hits a certain level, you'll get out. The summer weather hits and you're off to the cottage, or whatever else you do in the summer and lose track of those support levels you had marked. You hear all the bad news around the world, and then choose to ignore it...to our investing peril.
Well, that's what happened to me. My level was 13000, and before I could blink an eye, I wasn't looking at the "big" picture and failed to take action. It's happened more than once and I'm just about ready to throw in the towel. Is this worth it?? really??
I'm not so sure. Maybe in days gone past, investing had a different "flavour". You saw an undervalued company, you bought and then held. We now have computerized trading, and the big wigs are trading for fractions of pennies!! how the heck can you make anything, when they're churning the stocks for 1/10th of a cent! We had the meltdown in the banks, then real estate along with "Joe's" personal wealth and his job. Now it's entire countries melting down along with their fiat currencies. Political turmoil in the Middle East, a meltdown in the European countries added to the mix creates uncertainty, and as we know the markets despise that..big time.
I'll always trade a few stocks here and there, but our savings in RRSP and for those of you in the U.S. it would be your 401K's just might be better off in guaranteed fixed income. My parents did it that way, averting any downtrends and slowly but surely their nest egg is safe, secure and continually grows. If we had done that from the beginning I'm guessing our entire savings would be double or triple where they are today just by NOT participating in major corrections, like the one we had in the past month...or 2008..or 2000, all three of which I was caught.
These are just my thoughts and I'm venting. Mad at myself for seeing the writing on the wall, seeing the charts, knowing we were in for a correction and then doing nothing about it. That my friend, is human nature as we pat ourselves on the back for a job well done in stock picking. Nothing could be farther from the truth. When there's a bull market on, most stocks will rise in that environment.
Which then brings me to the future. If the average "joe" has just about had it with these markets, and wants out..if baby boomers ready to retire start yanking cash out of mutual funds, then who is left to buy?? The Feds can't support this market (as they've been doing in the past) because of a massive debt load. The funds might even be hit with MORE redemptions which will create more selling. So you tell me, how the heck can we rally from here??
The only thing I see going up in the future is gold, and even that can tank if those in control want to get the POG down.
As I reflect on all of this, the question keeps coming up again, "Is this worth it"? I'm beginning to think it isn't, and ready to take a conservative approach. It doesn't matter how low the yield is, at least it won't go down. It may not keep up with inflation, but I'll be able to sleep at night, take off on a trip or go to the cottage and enjoy life.
I'm sure the mutual fund managers, and financial advisors of the world have been doing just that. Even if the markets go down, they still get paid their "fee".
Maybe it's time for a performance based fee schedule for the industry or this is going to die a slow death.
For those that think there'll always be younger, fresher blood who haven't seen the carnages in the market and hope to entice them into mutual funds, think again. I can only go by what I see with the younger generation including my own children and they have already seen the large drops incurred. In fact, my son calls the markets a "gamble", and he loves poker games but not ready to see the wisdom in placing money in a manipulated market. There's a new generation of investors and they're very smart!
Just my 2 cents FWIW, as
Anyone who's an investor knows that sinking feeling. You know what I'm talking about...the feeling of euphoria when your stocks hit highs and do well and you're on top of the world celebrating. You look at the charts, and see that slowly there's a downturn signal but keep telling yourself when it hits a certain level, you'll get out. The summer weather hits and you're off to the cottage, or whatever else you do in the summer and lose track of those support levels you had marked. You hear all the bad news around the world, and then choose to ignore it...to our investing peril.
Well, that's what happened to me. My level was 13000, and before I could blink an eye, I wasn't looking at the "big" picture and failed to take action. It's happened more than once and I'm just about ready to throw in the towel. Is this worth it?? really??
I'm not so sure. Maybe in days gone past, investing had a different "flavour". You saw an undervalued company, you bought and then held. We now have computerized trading, and the big wigs are trading for fractions of pennies!! how the heck can you make anything, when they're churning the stocks for 1/10th of a cent! We had the meltdown in the banks, then real estate along with "Joe's" personal wealth and his job. Now it's entire countries melting down along with their fiat currencies. Political turmoil in the Middle East, a meltdown in the European countries added to the mix creates uncertainty, and as we know the markets despise that..big time.
I'll always trade a few stocks here and there, but our savings in RRSP and for those of you in the U.S. it would be your 401K's just might be better off in guaranteed fixed income. My parents did it that way, averting any downtrends and slowly but surely their nest egg is safe, secure and continually grows. If we had done that from the beginning I'm guessing our entire savings would be double or triple where they are today just by NOT participating in major corrections, like the one we had in the past month...or 2008..or 2000, all three of which I was caught.
These are just my thoughts and I'm venting. Mad at myself for seeing the writing on the wall, seeing the charts, knowing we were in for a correction and then doing nothing about it. That my friend, is human nature as we pat ourselves on the back for a job well done in stock picking. Nothing could be farther from the truth. When there's a bull market on, most stocks will rise in that environment.
Which then brings me to the future. If the average "joe" has just about had it with these markets, and wants out..if baby boomers ready to retire start yanking cash out of mutual funds, then who is left to buy?? The Feds can't support this market (as they've been doing in the past) because of a massive debt load. The funds might even be hit with MORE redemptions which will create more selling. So you tell me, how the heck can we rally from here??
The only thing I see going up in the future is gold, and even that can tank if those in control want to get the POG down.
As I reflect on all of this, the question keeps coming up again, "Is this worth it"? I'm beginning to think it isn't, and ready to take a conservative approach. It doesn't matter how low the yield is, at least it won't go down. It may not keep up with inflation, but I'll be able to sleep at night, take off on a trip or go to the cottage and enjoy life.
I'm sure the mutual fund managers, and financial advisors of the world have been doing just that. Even if the markets go down, they still get paid their "fee".
Maybe it's time for a performance based fee schedule for the industry or this is going to die a slow death.
For those that think there'll always be younger, fresher blood who haven't seen the carnages in the market and hope to entice them into mutual funds, think again. I can only go by what I see with the younger generation including my own children and they have already seen the large drops incurred. In fact, my son calls the markets a "gamble", and he loves poker games but not ready to see the wisdom in placing money in a manipulated market. There's a new generation of investors and they're very smart!
Just my 2 cents FWIW, as
Thursday, August 4, 2011
Trader Dan's Market Views: Extreme Volatility in Gold as market digests rumor...
Trader Dan's Market Views: Extreme Volatility in Gold as market digests rumor...: "Very early this morning, gold shot up to another all time record high above the technically significant resistance level near $1680 as sover..."
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