Weekly Close Highlights
Silvercrest gets bought, ISO acquires Anfield, SPUT breaks out and more.
Gold and Silver
Good couple of weeks from Sprott and Sprott products. Company breaks out and with tailwinds of gold, silver and uranium. The stand to close back up to ATH around $53!
BTG holding the top of its break from a few weeks ago. This looks like a legitimate low risk entry:
Silvercrest… this trade is coming to a close bending shareholder vote to merge with Coeur (deal annouced today at 1.6 CDE 0.00%↑ shares). I was accumulating last year under $5 based on project timelines and economic fundamentals. Would have loved to ride this for 700% or so, but as it is a nice profit.
Sell or hold CDE? TBD. Its a constructive looking chart:
Discovery Silver - of note, Mexico removed open pit mining from its 100 things list (official name omitted). The market took this and SILV acquisition as noticably absent. Congrats to the dumpster divers that bought the failed breakout (I was not one of them). It is my opinion that there will come a day in the near future that even the socialists will realized what they have (as tax revenue) and approve a lot of things they would otherwise be ideologically opposed.
Base Metals
Rio - those old enough to remember the last commodity bull will remember RIO 0.00%↑ was on CNBC nearly every day for a few years. Well, the company is 5th touch of this wedge and may break out here during 4Q… keep and eye out. The company is generous with dividends.
Uranium
SPUT - $SRUUF, $U.UN. Breakout! Don’t fall asleep uranium is back! The OTC version of sput’s measured move is to $37.50 area or the $140s in the spot market.
Speaking of spot, this was the chart from last months review (that I didn’t finish :( ) of Uranium juniors.
zooming in:
The short version of the unfinished piece is this: buy on weak/down days. Most of these near term developers are likely to suffer the same “fate” as silvercrest did today.
Speaking of which, ISO Energy, which is the former combination of consolidated and ISO, bought Anfield Energy for 90+m US. I have some additional work to do on this in terms of understanding how ISO will raise its case (I think bought deal and PPs most likely). I thought the purchase was acretive as I expect Phil Williams to get the smaller, mom and pop style uranium producers going over the next 24 months while ISO funds its Hurricane deposit development and derisking. I still need to cruch the numbers. While the ISO chart isn’t particularly bullish, the floor seems to be in. I think its current price of the 3 year MA is likely a steal.
Conventional Energy
Tourmaline - Breakout!
Canadian oil and gas play grabbing our attention this week. I need to do some deep research on their projects but I conservatively have their net present value near the peek high of $85C or so. Canadian energy and natural gas are very bullish long term.
IF we get follow through on TOU, then we likely get break and resumption on $CNQ. Keep your eyes peeled:
…and permian play $SM:
While we are on NA nat gas… CNX 0.00%↑ shows us how a cup and handle should play out for max gain (almost). Sometimes it helps to fast forward the movie (setups). Nothing to do here but watch. This trade has almost played out.
Peyto canadian nat gas - another good breakout! This could stand to give us a follow on week.
Similarly, watch $BIR.TO. It wants to join:
Coal
BTU - Breakout and confirmation. US coal play. I think there will be more good looking coal plays to come. I don’t see Peabody at super deep value (all coal stocks are relatively cheap), so I’d keep a stop below 3Y MA or so.
Super busy week, but I wanted to update what the charts say. Cheers!
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thanks!