Had a rather strong day, but not willing to part with my positions in AVR.TO and AVL.TO just yet. I think they both have some room to run. I prefer Avion if I had to decide. Avalon and the rares sector is just so volatile you never know which direction your 5-10% is going day in/out. I will risk it for one more day as it is BTFO.
Uranium One Inc (TSE:UUU):
This is a uranium beauty. See where Cameco trades? Give this pup 4 years. They own substantially better reserves and with the Armz transaction in their back pocket and no resistance from the US Government – she’s going to be quite profitable in the future. I am very bullish uranium long term – India, China, and first world development of Nuclear power plus the already prevalent shortage of medical isotopes (common knowledge/priced in). You may disagree with my strength of reserves comments. But, who decides to build a mine in a flood plain, next to a “permanently frozen lake” on perma-frost (queue global warming). Answer: Cameco.
Anyways, it has had a phenomenal run since November, released a dividend in December causing a pull back, but has exploded since. $7.00 is a big resistance level, but it held its $6.00 support into the close and is forming a near perfect bull flag. I think you could squeeze a dollar out of this one in a week. Its MacD and RSI 5 are turning around into the close.
Bard Ventures (CVE:CBS):
Book value on this beauty is a measly $0.07. If you look back a few days to their previous news release, you see strong volume growth, and a substantial burst creating hideous candle from January 21st. If you haven’t heard of this company I am not at all surprised. It popped up on my radar when I read the news release. Estimates for their 15km2 are outrageous. An expected mine lifetime of over 20 years producing (conservatively low moly and copper prices and a 0.95 CAD) $3.8 billion of product (note this does not include operation costs, financing, etc.). Where do I see this stock in a year? I have absolutely no idea; I don’t know where it will be next week. However, something sparked someone’s interest this afternoon when over a million shares were swapped in less than 5 minutes. This leads me to believe good news is on its way (some of these junior miners have serious leaks when it comes to conference calls, releases etc.). If you ever had the urge to just throw $1,000 into something and turn around a year or 5 from now and see 1-2000% gains, this may be the micro cap you’re looking for. Their mine is forecasting extremely high-grade molybendium – a particle strengthening additive to structural steels as a deterrent to crack propagation – and did I forget to mention medium grade copper as a byproduct? I expect to see this company travel in a similar fashion to TSE:ZAZ. By that I mean at some point in the future we will see Bard sign a financing deal, dilute with more shares, or secure a private brokered deal. Either way when Bard gets money, they will start digging for billions.
Disclaimer: Don’t trade anything without doing your own studying. I am not responsible for you losing money.