Play of the Day: EPO.TO WPX.TO

2 very interesting speculative play in the world of Potash.

This element is in great demand and no matter what, it will continue to be in the future.

Now for those 2 companies the question is: will they get the partnership they both need?

If the answer was to be YES before year end, BOTH share price could run sky high and even a minimal type of agreement would definitely send those share price rocketing.

Why?  They both have great opportunities and in regard of the largest possible one WPX is the winner and lately they were still in talk with at least one great possible partner and the company is still trying to have something agreed upon before end of december.

The other question is : Will they need another private placement diluting share price again?

Based upon market price these days, it would seem that market has decided that WPX will need another round of financing and if that was to be the case it would be around 50 cents a share and would start another dip to around 40 cents.

So these 2 stocks are still highly speculative and they are not the place to be all in BUT expect a great price run up to over 1$ if a partner was to be signed and for EPO expect a 0,50 if a partner was to even only show interest.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2
  

The Play Of the Day: GSR.TO (This is speculative picks week)

Yukon: what a nice place.

Interestingly this area is filled with gold and without a doubt GSR.TO is making discoveries one after the other.

In the last week only, they reported two very interesting discoveries: the first one last week in their grab samples where they found 8,18 ounces of gold per ton and today they announced that their samples taken from their Lucky Strike property revealed (after a fire essay) a good 3,2 grams gold per tonne.

This is still in the first preliminary sampling and they are not at full scale drilling yet BUT these numbers seem more than enough to go ahead and explore a lot more even if those samples are very selective by nature.

We must understand that it is Yukon and getting the ore drilled into production is another story that will be known after a feasibility study is completed.

But at this time results are really encouraging and at the 0, 65 cents per share it is a good speculative buy as i expect that more and more discoveries will be announced in the coming months.

If those results were to be as positive i would not be surprised to see that company share price goes well over 2$ for a very nice return on the investment.

But remember that this is speculative in the sense that even if resources are there, nothing has been produced so far and no profit has ever been generated. To get into production it will most probably have to get into some kind of financing deal that will dilute the actual share count.

But, as a speculative stock, if it is played properly, there is good chunk of money to be made there and you could accumulate tons of share at cost near 0.

So at this price, it is worth a try.

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day: DIP DIP DIP

NO...........do not look up for a company with a ticker symbol DIP....

I am looking for a dip in the construction sector for the following companies:  BZH   HOV   KBH

All of those 3 companies are now in overbought territory and could correct  a 3-6% opening the door to another very good trend up.

Those 3 companies are to continue they strech for another 10-15% due to the very agressive move from Bernanke and if it is combined with some very good results and great outlook on the coming earning releases, i can't see what would stop them from another leg up for 15-20% , if not more, before year end depending of market overall condition.

At this stage, i would even think that construction stocks are now a defensive play and that they will continue to perform relatively nicely even if market was to correct severely trying to re-test the 1400 level on the S&P.

So i will take another bit of profit today if those companies stay above friday level where they closed at about 3% lower than their actual high of Friday. I will now supposed that the level they could reach, before correcting, is their last friday high.

For BZH  it would be 3,92$

For HOV it would be 4,02$

For KBH it would be  13,63 as they closed at their highest level of the day being an exception.

So anything above these levels is a signal to take in some more profit awaiting the dip. Remember that if you have for example 2000 shares of BZH and you sell them at 3,95$ to buy them back at 3,85$ you just made 200$ in profit and could be re-invested in more shares of BZH awaiting the next up cycle to increase your profit.

To protect your investment, do not play with all your shares...keep a core (so this way if your thinking was wrong and shares continue to climb you will still make more profit) and then sell some to buy back later trying to time a bit the market and lower your overall investment cost. Whenever you do that, make sure that the company fundamentals have not changed as otherwise you could end up trying to catch a falling knife and most of the time you lose.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

 

The Play of the Day :Take some profit

Oh boy was i wrong yesterday when i mentionned that the reaction to Bernanke report would mean a sell off...

The QE3 is something really agressive in MBS at a rate 40B$ a month UNTIL such time needed.

WOW. That was a game changer and still is today.

So from here we will now be navigating into uncharted territory where we have a chance to see construction sector climb higher very rapidly, were gold and silver should follow due to inflation worries but if plan works, it mean job created rapidly and so on.

So ALL sectors will be touched.

BUT being prudent also means that sometimes we have to take some profit (not all but some) and put it asides in case of a correction and for sure we will have one. Will it be Monday, next week, next month? Well based on my yesterday comment, i will not predict when but it will come a day where the profit you took off the table will be needed to buy back some of those high flyer companies.

 ''When everybody is buying, this is the right time to sell'' and the opposite is true.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

 

The Play of the Day: The Fed decision

It will be very interesting to see the market reaction today after the decision at 12:15.

My guess is market will be down no matter what. We have been on a strong rally recently and this will most probably be a sell on the news and definitely a nice time to go shop for a nice discount.

Any one of those at a 5-10% dip would be more interesting:

GPL:  under 1,90$ is a heck of a deal especially with the recent news

UUU.TO : Anything under 2,40 is a very good deal.

QTM:  if it was to dip under 1,50$  Great buy

AC.B.TO: under 1,05$ this is a great one

FBP: get ready under 3,90$. Please remember that the US government is still owning tons of shares that they could sell at any time.

DRL: around 1,07$ is still a good deal but be careful here

MPEL: under 12,25 is a very good deal

So as you can see, i will be watching a lot of them today hoping for a break as i still think that those one are totally undervalued and could give you a fast and nice return on investment and still a good price to accumulate some more especially the one in bold. WAIT FOR THE FED DECISION.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play Of the Day RSH UUU.TO INT EPO.TO

Another day where market direction is uncertain and i am still looking for some dips in the above companies:


RSH       : any dip under 2,60$ and exit price 2,86$

UUU.TO: to dip near 2,44$ and exit price 2,57$

INT.TO  :  A small dip or a major increase in bids. Would not be surprise to hit 0.18 and exit price 0,205

EPO.TO : Highly speculative and unpredictable. Any dip at 0,22 and exit price 0,24 

I still expect market to correct a bit themselves after the last week rally. May not be the right time to be ALL IN. Good time to have some liquidity on the side to profit from a sudden dip.
 
As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2


 

The Play of the Day: BZH HOV GPL PXLW FBP QTM INT.TO

These are the stock that i am watching today for the next interesting dip allowing to accumulate some more. Expect a market lacking direction until thursday after the last week great run. This is fantastic for short term traders.

BZH:  nice run recently. Watching for it to break 2,95 then hope for 2,80$

HOV: What a great run. Watching for it to break 3,00$ but it could be too agressive.

GPL: That's a good return on investment in a very small length of time...Now HOPING for a small dip around 2,00$ but seems far from being achieved. That one is not done yet adn i am ready to accumulate way more.

PXLW: Welcome back to this new kid. Will they finally get profitable? The market thinks that it is highly possible. Be careful as not to liquid as volume is low but as in the case of FBP, expect rapid price changes. I will get back in on the next dip.

FBP: Very large moves last week. When it hit's 3,69 it then went back up well over 4$. Now watching for it to dip again in the 3,69$ area.

QTM: I would like it to break under 1,55. It is a nice longer term move but should be very profitable.

INT: Watch for a break under 0,19. If it does, be careful but i am still under the impression, as last week, that it should be climbing back around 0,23- 0,25 for a 25% return from last week. Do not forget to take some profit and then wait for the next dip. DO NOT SELL PART OF YOUR CORE HOLDING. I expect at this time to see INT moving from it's lower trading range (0,19) to it's upper range of (0,24-0,25). If it breaks 0,25 WAIT FOR THE 0,29 BEFORE TAKING TOO MUCH PROFIT. Actually INT is tricky to trade but could be profitable for any short term trader or to lower original cost by buying at the lower band and selling at upper band.

As usual  DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2


 

The Play of the Day: PROFIT DAY

Well, it has been a pretty good short week and very profitable on most of the plays this week and it is time now to NOT be too greedy.

It is always a good idea to get some profit off the table when you see weeks like that. That does not mean to sell them all but hey, get some back and get ready for opportunities next week. Nobody has ever been in trouble by making a profit.

There is nothing worst than seeing a great deal goes by and being unable to profit due to a lack of $$$

When there is fear get greedy but when everybody get's greedy, start to fear !! (this is not from me )

Have a great week-end

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day TO:WPX (Western Potash

After hitting a many months low of 0,60 recently, it looks like it could have bottomed out and ready to start a good rally.

When they issue yesterday the NR in regard with talks still under way with Indian Rashtriya Chemicals, it seem that they may have revived the bids for this company.

What they want is a solid partner to build a 2,8M tonnes a year potash mining site by 2016 and they will need 2,5B$ in investments.

I would not be surprise that talks lead to a major investment in it and not a take over as Canadian regulation could make it difficult for any foreign country to do so.

So i am still accumulating with a stop losse at 0,58 and i expect WPX to get back over 0,80 before end of october as their feasibility study is due in late november and that speculations will be high.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

 Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day TO.MB (Mega Brands Inc)

It is very surprising how that company has turned itself around in the last year. When many counted it for dead, they found the right way to get back on track and can now work on increasing sales and footage at many retailers.

MB share price saw a nice run recently (a bit over 1$ gain) and i think that it is now the time to get back in on any possible dip. Even at actual price, it seems a good price.

My expectations for the rest of the year is to see MB break the 10$ barrier and before year end. Remember that Q3 is the best quarter of the year due to inventory build up for Xmas time.

So it is now time to accumulate again at a slow but steady pace.

As usual DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play Of the Day FB (Facebook)

Ok ok ok. I am a contrarian and i think FB is ready to go higher.

Why???

Everybody is trying to put a bottom price on FB and looking at indicators we may well have reach it.

Indicators are pointing now to an oversold condition and last trading day was not really nice when it gap down from 18,70 to close at 18,06 and to me it did look like some capitulation.

Volume was high especially at last minute where almost 2M shares were traded to bring down price.

So what is to be expected?

Some kind of short term rally where price should move over the 19$ and this, rapidly.

The problem is that Facebook is not providing enough details on how they will start monetizing mobile customers and until such a time, they will have problems getting back to their IPO price.

Will they ? Yes they will but the road will be bumpy unless they can show investors interesting results and a good plan for future earnings growth.

I feel that at this price the loss potential if far less than the upside potential and even if i would not get all in on this play, it may well be a good time to start accumulating and taking some profit off the table whenever the occasion arise.

This is a social media play and should be played in consequence. A bit at the time and most buying done on the dip and especially NOT CHASING the share price. If it goes up rapidly: great you made some profit then sell some. Again DO NOT CHASE this one as it could be the ideal way to lose money.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2