Mooter Media (MMZ) - Breakout!

In a market that is still very jittery and susceptible to fear driven selling, the best approach is to cut back on your long term holdings, sit on cash until the market settles, and look for short term trading opportunities.

Mooter Media (MMZ) is a stock that I know very little about, but it presented a short term trading opportunity today.

The above chart shows the previous upper level of a trading range at 1.2c being broken, and then a clean break past the previous high of 1.3cn was made. The buy signal was at 1.4c and as you can see a high of 1.7c was made today before the share price closed at 1.5c for a 36% gain.

As I mentioned already, I have limited knowledge of the stock and I am ignorant of the reason why the share price is going up, but the trading action today was telling me to buy, and the chart is also showing a clean breakout with significant volume.

Macquarie Harbour Mining (MHM) - Sorell Silica Project

Macquarie Harbour Mining (MHM) is a small listed explorer that we have been keeping a keen eye on for quite some time.

Late last year we heard of some quite stunning news of the possible development of a silicon smelter by German chemical conglomerate Wacker Chemie AG in Tasmania and a company making off-take agreement with Macquarie Harbour Mining to supply the silica from their world class Sorell Silica Project.

Then a few weeks later, the company went on to announce the  acquisition of an aluminium smelting business that would be profitable and cash flow positive with months. So that is two company making projects from a small company with a very tight market cap. The aluminium project has now been secured and is in actual production, with news for the silica project due imminently.

The most recent investor presentation is worth reading in full!

One thing that has annoyed me about this company however, was the way the share price has traded with buyers showing a distinct lack of interest. The above chart shows a broad trading range of 25c and 38c being traded since the initial spike in early October when news of the silica deal first broke.

That annoying range bound trading should change very soon with news on whether Wacker Chemia AG commits to the construction of the silica smelter due, and as the chart shows, that last two days have seen growing buyer interest with very strong buying being witnessed this afternoon in particular.

We should see a solid breakout from the trading range tomorrow so good luck to all who are holding.

Verus Investments (VIL) - Early Flow Test News Sparks A Rally

We have been following Verus Investments (VIL) for quite some time now as the company began to drill the Inc # 1 well at Fause Point, and then we had success with numerous gas zones being found, and as of my most recent post last week, flow testing was set to commence.

On Monday the company released their first update on the flow test and the results were impressive with a high percentage of high quality light sweet crude oil being encountered.

As you can see from the above chart, the market reaction was strong with the share price making a solid break above previous highs of just above 5c, and today we actually saw a new high of 9.5c being made. We have seen an almost doubling in the share price over the last few days but those who bought the options did even better with some managing a profit of over 200% in the space of a few days.

We should continue to see higher price in the near term but one obvious concern for me is that trading gap that has been left at 5.6c. At some stage that gap may get filled and I suspect it may occur sooner rather than later. Also today's candle shows a long upper wick with afternoon selling from profit takers driving the price back to a modest close of 7.8c.

Debt Contagion Fear Eases

Last week I gave an brief update on the market in general and talked about the strong economic data from the US overcoming the selling. In that update I also showed two charts, one of the Dow Jones Index and the other of the local All Ordinaries Index. The above chart shows the 140 point bounce we saw last week which started just above a key support line of 4,520, and then the renewed selling into this week.

The renewed selling was a direct result of renewed debt concerns from Greece and several other small European nations. In reality concerns over the sovereign debt of such small countries was overblown as their debt default would have minimal impact on the greater scheme of things but the market still reacted negatively due to a fear of the problem spreading. Hence the term debt contagion.

I always thought the selling was silly and I still maintain that view but it is always prudent to listen to the market and react accordingly so that past few weeks has seen the forum take an extremely cautious approach with a focus on just taking short term trading opportunites on stocks that were jumping.

Today we saw more selling and going back to the above chart, we actually saw that key support line at 4,520 get broken, with the All Ordinaries hitting a low of 4,483 before renewed buying drove back up to close right on support at 4,520.

My feeling is that for now we should be out of the woods as far as the selling and the debt concerns go, and that the markets should start to rally from here but I still think it would be prudent to continue to tread warily.

Smarttrans Holdings (SMA) - Strong Buying!

Two weeks ago I posted a quick blog about Smarttrans Holdings' (SMA) stellar share price gain on the back of the signing of a Memorandum Of Understanding with China Mobile, the worlds largest mobile phone company.

As you can see from the above chart, we have seen a retrace after the initial spike with a solid base now being found at 2.5c.  Whilst there is still no news of the deal actually being stitched up just yet the trading over the past week has seen some very large buy orders get filled, and that to me suggests that somebody big is building up a stake in the company. In particular Friday afternoon saw some aggressive buying on a day when panic selling ruled the market.

There is still a possibility that nothing will come of MOU with China Mobile, but the trading on Friday suggests to me that news is imminent.

If the deal with China Mobile is realised it will be a company making event so this is a stock to keep a keen eye on over the coming week.

Botswana Metals (BML) - Discovery Causes Huge Jump!

Yesterday we tipped Antisense as a trading opportunity and we saw a 200% + rally in that stock before the sellers came in drove it back toward its open price. Today it was Botswana Metals (BML) that staged a very impressive 300%+ rally after the company announced drilling results that had intersected high grade copper and silver at their Airstrip Copper Project in Botswana.

I could tell from the beginning that the news was significant and after quickly checking the market capitalisation (which was ridiculously cheap), I posted the stock as a buy on open trading opportunity. Botswana Metals opened at 7.5c and then after a brief jump if started to slide as some traders began to hesitate. The share price fell to a low of 6c before common sense started prevail and people started to see the real value and the true prospect that the project presented.

Confidence started to return and the buying remained relatively strong throughout the day with a high of 18c being reached a few minutes before the close. Botswana Metals closed at 16c with a very impressive 320% gain. The above chart shows the huge price jump as well as the volume spike with over 100m shares changing hands (the entire market capitalisation is 106m shares on issue).

The results are impressive, however the discovery is still at a very early stage of development. The company is well funded with circa $6m in cash and the discovery is located near existing mines so the prospects truly are very strong.

Further drilling results are due and the company has said that another follow up drilling campaign is set to commence so the future definitely  looks very good here. Over the longer term we should see higher prices being made here but in a market that continues to be overcome by stupid fear driven selling and risk aversion the best option is to just trade the opportunities as they come.

Those that did trade this have made over 100% profit for the day.

Verus Investments (VIL) - Flow Testing

Last week I gave an update on Verus Investments (VIL) and the approaching commenement of testing of the Inc # 1 well at Fause Point.

Today we recieved news that flow testing was expected to commence this weekend, and as the above chart shows, the share price is continuing to push higher ahead of the news. Verus managed a relatively decent 15% gain today but the key technical news was the new high of 5.4c being reached and the breaking through of previous high at 5.2c.

The chart now shows blue sky and Verus Investments should continue higher!

Strong Economic Data Overcomes Market Fear

Two weeks ago I posted a blog about another possible stockmarket crash on the back of the US President's rants against the large US banks, and threats of added restrictions and increased regulation. In that blog post I mentioned that the selling was irrational as the economic data coming from the US was very strong and that US GDP was strong.

I also mentioned that fourth quarter GDP was forecasted to be strong with a link to a new article reporting J.P. Morgan predicting a growth rate of 5.7c. That prediction was dead on the money with the official number coming in late last week but amazingly the selling did not stop.

Yesterday we saw further strong economic data come from the US with factory sector activity showing the strongest gains in 5 years!



That strong growth in US manufacturing was what finally stopped the nonsensical selling which I suspect was driven by the US banks as a payback of sorts to Obama's banking reform agenda. You can see the technical indicators on the above chart of the All Ordininaries Index, with support being found just above 4,500 and candles showing a Bullish Engulfing Pattern, which has now been confirmed by today's gain.

The big news that stopped the panic selling was the US manufacturing data but this morning it was also helped along by positive home sales data as well strong numbers from a number of bellwether stocks that beat analyst estimates.

Antisense Therapeutics Ltd (ANP) - A Quick Trade

I didn't think much of the announcement that Antisense Therapeutics(ANP) released this morning but I could see that buyers were very keen in the opening auction so I posted it onto the forum as a trading opportunity.

As you can see from the chart, Antisense opened at a strong premium of 8c and then rallied strongly from there on. With a little hesitation at 12c -13c I suggested to forum members to take profits as I knew that the announcement was a bullshit announcement and that it would fall, but buying momentum pushed it higher with 15c being reached soon after.

The strength was astounding and a high of 20c was actually hit before the selling started, and as predicted the afternoon saw a complete collapse with the share price closing just off the days low at 6.6c.

Not many people took the opportunity but those that did took an easy 50%-100% + gain with 20 minutes or so and in a recovering but still patchy market it was an opportunity that was too good to miss.