Oil gaining again

With the recent up moves for oil, the next level to watch for is the 40$.

This level will create a lot of resistance due to profit taking and world oil demand.

I do not see major road blocks to achieve that level but again nobody has ever been in trouble to cash in a profit.

My next sector still under watch is construction and my next stock is AC.TO as this one could be an easy gainer!

Have fun

Air Canada What's wrong ?

Profit numbers and then the stock plunge like hell with a whopping -12.03 on high volume.

What the hell is going on?

If you listen to the conference call there was one thing that was said that did not pleased investors: the end of monthly reporting and the comment that ''We do not run our company for short term investors....''

Could that be the only problem ?

I would guess so and tomorrow will be interesting based upon mid day volume.

I am expecting AC.TO to rebound aa lot from this 7.39 level back to 9$ in a day or two.

So if you have some liquidity and not afraid of volatility, this could be the moment we were awaiting for.

Have fun

Iran agree on oil freeze

So again i was correct on my call and Canadian oil companies did reacted the way i expected.

Is it time to cash in ?

If you don't believe that oil production freeze will stay, then taking some profit could be a good call but i personally think that even if it will be very volatile for the next coming days, i would wait just a day or two before making any exit of those Canadian companies like SU.TO as SU.TO for example could easily reach the 36$ plateau without that much trouble.

On the other hand, nobody has ever been in trouble by taking profit.

Have fun

Deal on oil freeze or cut coming?

Today was a bit of a surprising day as oil price did not went into the direction expected.

It would seem that Iran does not want to freeze or cut production under pre sanctions production and refuse to talk until that level is reached.

I don't believe that for 1 cent. I do think there are talks behind close doors between major oil producers and Iran to grant Iran some advantages should they decide to go with its neighbours.

There is simply no way Saudi Arabia (and many other) will let their country goes bankrupt and continue to cut their annual budget because of oil price or should i say over production.

That is the main reason i do not short this market as it is actually in a phase where even a slight cut would send oil price sky rocket in a blink of an eye. Remember Friday......12% one day on a rumor. Imagine a real cut from all parties....oil would climb back to 38-40$

The rest of the week will be interesting to say the least and i will keep my ears to the ground in case of any rumble.....

Have fun

Asian markets are sending gold down down down

Gold is down 45$ at 1194$ from Asian markets

Will that continue during the night of will gold recoup some of its losses?

I think gold will retest some lows as stocks will be on the rise this week.

So be careful before opening new position on gold companies.

So what's in store for Feb 16th 2016

I think this one is an easy one.....

Gold down
Oil up
Stocks up

I will watch carefully the home sector in the US as it seems that even if selling season for homes is starting now, the overall inventory is down.

If that is to be the case, that sector will be interesting and i will start accumulating.

Especially KBH ,a bit of BZH and HOV

These should have a good momentum is market stays as it is: many buyers bit not that many sellers at this time.

Have fun

Last trading day of the week

I am expecting an interesting session today before a 3 days week end (us and Canadian markets are closed on Monday).

With all the rumors going on actually in the oil sector i would not want to be short comes Monday morning as the potential gain to short this sector is now less interesting than the potential of gain on the buy side.

Gold will most probably end the week on a down note and it is too early to get back in because if oil was to rebound massively on Monday due to a production cut deal, gold would suffer dramatically and could erase most of the gains in 2016. So be careful here.

On the stock sides, at this time we have to factor in the unknown: interest rate hike, negative interest, inflation, oil companies going belly up etc etc etc. So this is too much to think about and i am not convinced we have touched the bottom for this sector.

There are 2 companies that i like a lot for gains in medium terms and they are AC.TO and CHR.B. TO.

2 great aviations companies almost ready to get picked up.......I will start buying back CHR.TO whenever it touches a bit under 5$ and AC.TO at about 7$. Both are offering a great return medium term and CHR.TO is even offering a nice dividend.

Enjoy your long week-end and watch for rapid alerts on tweeter @investman2

 

ALERT SU.TO

Today at 6.21pm something strange did happen on Suncor.

Normally after hour trading is quiet and low BUT SUNCOR is now trading at 1.78$ OVER closing price at 22.90$ (on NYSE )

Is this caused by the persistent rumor to the fact that OPEC have almost conclude an agreement to cut the oil output or only coincidence as other companies did not move?

In any case it will be very interesting to watch out very closely for news tomorrow about Suncor OR about oil deal with OPEC.

Don't forget also that markets are closed in Canada and in the USA on Monday so expect a very very very interesting sessions tomorrow and no doubts the shorts will try to cover their backs.

Have fun.

Bottom in oil and top in gold

It did happen this morning.

On a short term basis, i would now say that oil has bottomed at 26.50$ and gold has peaked at 1240$

That being said it does not mean that volatility is out but we had capitulation at the opening with volume simply incredible on gold and oil.

This week-end could bring in interesting news that will either keep volatility high and even short squeeze some in the oil sector.

Simply imagine this scenario: Yellen meeting today could indicate no more interest rate hike this year bringing some stability on stocks and sending sell signal to gold.

Now simply imagine that the talks looks like in the direction of reducing interest they just raised recently and BANG there you are with gold going down like crazy to value of 3 or 4 weeks ago and would likely help oil stabilizes around 30$.

Put that into Canadian oil producers perspective and there could be large profit looming on a very short term basis.

Let see now how the day goes!

I am out off gold for now

I just sold out my positions on gold in canadian gold companies and will keep an eye on oil especially SU.TO as i still think this morning was the day to profit the most from gold and being ready to increase position in the oil sector.

As expected there is a rumor to the effect that major producers could put a freeze on production and would this way reduce the oil pile up without cutting production.

If that was to be true, it would be a great step in the right direction.

As for Suncor (SU.TO)we shall not forget that this is a totally different companie after they acquired Canadian Oil Sands participation to almost 85%.

Any small increase in oil price will be reflected into Suncor profit.

Watch carefully and have fun!

Watch out for capitulation day

Here we are.

Today could really well be capitulation day and beware of that trap.

This is most probably not the day to get in gold as it is the day to profit cashing on it.

Watch for volume on oil as it could also be the day to get in from gold profits.

Not the time to panic but right day to be excited.

Have fun.

SU.TO short interest

Very interesting to note that short interest on SU.TO has now surpassed 13M shares on January 29th.

What is also interesting is to note the trading that has taken place since then.

It is absolutely incredible to see huge blocks of 200k, 400k and 500k shares moving rapidly at the bid and often at 1 or 2 pennies under the last price.

That looks to me a lot like machine programmed selling and short selling.

That being the case, i would expect the total short interest as of today to be over 15.5M shares (a record for the last 12 months ) and a double from last year.

That being said, look carefully for volume over 6M shares on a uptrend as it could signifies a short covering or even better a short squeeze.

Remember that a short squeeze is the effect of excessive buyers and not enough supply. That could also come from a margin call.

If i was a trader, i am not sure i would stay short when the benefit from these levels are far less than any positive news on the oil side.

I would not be surprised to see very high volume from tomorrow midday to end of session Friday.

We never know what a week end could bring.

Have fun

What to expect tomorrow February 11th 2016?????

For the rest of the week, trading will be highly interesting especially for stock.

I expect stocks to rebound on Thursday and shorts will cover on Friday especially in the oil sector.

Gold will zigzag but should remains mostly down.

Here is why.

In the oil sector, OPEC countries are not at this time interested to cut oil supply to avoid Iran and USA to profit from the upward price movement HOWEVER come countries will easily figure out that they cannot any longer pump oil at a loss on every barrel and will start acting accordingly.

I would not be surprised to see numerous rumors to start in the effect of a 5% output drop and that being the case, shorters will be more interested to cover their butts and avoiding getting squeezed on a Monday morning trying to cope with a 5 to 10% increase on oil barrel meaning a 15 to 20% increase on oil producing companies.

I may be simply dreaming in here but Monday will come fast enough.....

Have fun trading

wow. Gold call was right on

In regard of YRI.TO and G.TO i think the call was right on.

I would wait a bit tomorrow to see if a new entry point is created but it is a bit pricy over 3$.

For the oil sector, traders got a lot of fun today with large volume orders as they probably expect oil to touch 25$.

I do not believe that this will happen tomorrow.

US numbers will most probably show a increase in US oil reserve and if by any luck oil was to go around 25$, well, (no punt intended) that could be a great signal to get in and start getting out a bit over 30$ before the week end.

Have fun

Entry point in gold

I mentioned the fact last week that it was time to get some profit off the table and great if you did even if gold took another good leg up today.

I expect stock to  get back on gains as of tomorrow and gold should retreat creating another good entry point.

Just be cautious as we never know the kind of move stocks can do like the -400 today ending down 177 less than half of early losses.

Be careful as we are on high volatility here.

Value of Canadian Gold companies

Stock value has risen a lot since the past 10 days especially for G.TO and YRI.TO

Now it's time to take profit off the table and wait for retracement as i think gold will retest its low before going back on a up leg.

For YRI.TO expect around 2.60 to 2.70 range and for G.TO expect a range between 16.25 and 17.00$ retracement.

Enjoy your week end

Have we found the bottom in oil?

Well not yet and we need to test the recent lows in a v shape recovery then we could say we bottomed out.

Oil is a different beast. With all the supply right now, we could easily drop to a near 25$ BUT i do not think some OPEC members will let that go and we could be experimenting now kind of retreat from the shorters who are trying to cover their butts before something like that happen.

Pay close attention to the volume as it will be the key indicator of a covering!

Another great day for G.TO and YRI.TO

If you were invested recently in those companies your return has been close to stellar with a 50% return  (almost) from January 18th

I did took some off the table today as i think it is now ahead of itself and a small retrace could happen tomorrow in early trading.

But with all that instability out there, no doubt gold will continue to rise.

So who's next?

We will have a clearer view tomorrow morning.

Very interesting spike for gold

Are you invested in gold companies (G.TO   YRI.TO   KGC.TO  etc) ?

If so, the last couple of days have been good for you. It is not a surprise as normally gold is considered a parking lot for your money when stock market is highly volatile and going in all directions.

Like today where somewhat great numbers came out from ADP payroll number and stocks took another dive.

This is by far the most interesting period for gold especially because of where it stands.

If you did invested in gold and you have a great return % why not take some off the table. There should be great opportunities coming soon on a long term view.

On my radar screen actually are the following: DAN (nyse)  AC.TO   KBH (nyse) to only name a few.

Stay tuned!

ALERT YRI

Unusual trend and volume on YRI.TO

Already 6% gain with high volume.

Could be trader's game but seems interesting.

Are we going into another recession ?

Well, by looking at recent US data, i would stay away at this moment from durable goods corporations and concentrate on gold and oil.

Not exactly the right time for constructions companies like BZH, KBH or alike and even if car sales are really great, avoid parts manufacturer and car makers because the best could been history based upon actual readings.

Naturally it's Friday so anything could happen and traders will probably try to get as much cash possible by taking some profit off the table.

Have a great week-end

Will OPEC members cut down on production

That could create a run for cover for shorters.

If Russia decide to get along with them, well i would imagine pretty easily a 40$ barrel oil and this could mean a great run for companies like SU.TO that has been shorted a lot recently.

That would mean a close to 25% return in a couple of weeks. Not bad actually.

Also watch gold carefully as it could be the next biggest runner up.

Watch companies like YRI.TO and G.TO. they could be great winners especially YRI.TO if you nave the stomach to digest their rolling coaster value especially since they smashed their dividend to 2 cents a year instead of 2 cents per quarter..... Be carefull...

UWN

That gambling (no punt intended) has been interesting lately as it did doubled from my last recommandation.

When you look at their filings it is interesting to note that they did obtain some new licenses and i think 3$ is not that far from being reached.

Not much volume but interesting Corp. to have a look into.

I am back....................

Hello everyone,

Almost 3 years since the last post and must explain that i had to restrain from posting due to past job restrictions (company was a public listed Corp. and had to adhere by their rules). These restrictions have now expired.

While not posting here, it did not mean that i was not following the market and some of the companies i had expressed interest into.

During the coming days and weeks i will revisit all of them to see where they are heading and some of my new finds.

The first one that i would like to discuss is INT.TO but will avoid discussing too much due to some legal actions that could be coming soon in regard of what happen and the incredible number of investors who lost their shirts ''investing'' in that company. I have seen on many other blog sites, questioning as to why no legal actions had ever been taken against them. My answer would be that some time it takes longer than expected but there are rumors.

I was criticized and accused of being an INT.TO  pumper but never did and as a matter of fact never did for any companies nor will i ever.

Time will tell what will happen and what will be the course of actions against them.

NOW........

We have entered a strange market pattern and surprisingly the logic is not there with oil at 29$, gold almost not moving and stock going in all direction.

I suspect that this pattern serves some kind of geo-political agenda and the pressure on the market is not over.

During these time you have the choice of being cash only or invest on the largest corporations in the market as it is a lot more dangerous with smaller cap Corp. that do not have the needed cash to get through these thought times.  

If you like Oil you can go with SU.TO and if you like gold, G.TO is probably a great choice.

If you are still a bit adventurer, YRI.TO is a great choice but be careful as they just cut their dividend by 75% and i expect their last quarter to have been catastrophic (profitability speaking).

2 interesting picks for today

Have a look at ORT.TO and GPR.TO (GPL on amex)

These 2 have been hammered recently with a strange volume that looks more like a short attack than dropping for good reasons.

In the case of ORT, that company is close to getting in full production and was well above 3$ recently. They also got new patents and new contracts signed (please do some dd on it...absolutely fantastic company with a bright future)

GPR  Great panther has been knocked down close to 30% in just a couple of days. Sure silver price is low and it is a profit eating problem BUT remember that GPR gets paid 3-4 months after shipping. So whatever is shipped today will get paid at the next 90 days price. I find it hard to believe that silver will go down much lower.

Remember to  never invest more than you can afford to lose and always do your won due diligence before investing in any companies.
 

URGENT INT update

Well, the least we can say is that the financials for INT ending Dec 31^st were far from being stellar…

So, what is to be done on Monday morning?

There are 2 possibilities: you can sell if you think that INT share will be tanking rapidly and that there are simply no possibilities for any come back OR you can look at the storm comes in (if there is any) and hope for better days.

The actual problem is not only revenues but very high expenses that do not seems to stop and the payables that seems to be accumulating at high speed.

Any simple look at the documents filed on sedar shows that INT is in a very difficult situation at this time (based upon Dec 31^st results). Even if I will not go into them all, I would definitely suggest you do so at this time.

Now is there any hope? It might well be some IF contracts really start generating very good income. Based upon the last AGM and some NR, INT was indicating that all new opportunities will be geared toward generating revenues.

Will they be able to sign those deals? Will they be able to spin off Itibiti as they have mentioned?  Will they be able to spin out Ortsbo as everyone is expecting it?

There are actually too many questions unanswered and if I was only looking short term I would say that INT will have major difficulties coming back, from where they are actually, toward profitability.

Is this impossible, no  but odds are now against them and unless something major happen, I do not see share price going back to the level it was 1 year ago and it could even be difficult to get back over 25 cents.

On the other hand and as far as I am concerned, I would not be selling early on Monday because the storm that may start could be simply kind of tree shaking. The reasoning behind that is that normally market knows that kind of bad results and we should have seen already a major sell-off on Thursday or Friday but nothing major happened.

What is still interesting is the private placement of an extra 1M$ that should be closing soon and the 2,5M$ that just closed a couple of weeks ago. It is very difficult for me to imagine that those who subscribed the last one did not know the exact INT financial position and if future was not holding anything positive for INT why in the world would they invest that kind of money in INT?

So, in conclusion, INT was at Dec 31^st in a very bad financial position and I think that contracts signed may have generated some income in Q3 2013. To what extend? Very difficult to know and can only guess at this time.

One thing is sure, if INT does not reduce expenses dramatically and increase revenue rapidly, they will be facing difficult decisions to be taken and their future could be compromised.

So at this time I will recommend HOLDING any position that you are comfortable with still knowing that INT is now HIGH RISK and speculative.

As usual, do not invest more than you can afford to lose in ANY COMPANY and always take some profit when possible.

UPDATE UWN

Since a couple of weeks, trading on UWN was a lot higher than usual with a very good upswing from low 80's to over 1$ then back to mid 90's.

Well this sudden interest could come from GodStar slots playable on Facebook.

This is a new application that could be a great marketing tool for UWN. For example this morning on their Facebook site, they had posted an invitation to visit them in Seattle.

Well, if this advertising and promo tool is well exploited, it could definitely bring some more customers and profit to UWN.

This is another example showing that they are not sitting simply on their actual slot machines route and their mini casinos: they want to expand and I think they might be having a shot at that.

We also have to remember that UWN could explode rapidly if they were getting a casino license in Washington.

As usual, do not invest more than you can afford to lose.

Great Panther: time to get in?

Well, I do not recall seeing that panther at that price for a long long time. Thanks to silver price, we have now a very good and solid entry point into that PROFITABLE silver producer.

There has been many articles written about gpr.to  (GPL on Amex) recently on Seeking Alpha:

http://seekingalpha.com/article/1200601-finding-a-small-cap-alternative-in-great-panther

http://seekingalpha.com/article/1163221-bullish-on-silver-prices-why-this-panther-could-be-great-for-you

http://seekingalpha.com/article/1060611-silver-bug-7-stocks-for-you

As far as I am concerned, GPR.TO is not a speculative buy. That company has been producing silver for a very long time and in a profitable way and their last report where it shows intersecting high grade gold-silver mineralization will simply add again more reserves to it’s portfolio.

On their last reported quarterly results, GPR shows a cash on hand near 27M$ meaning that their cash position PER SHARE is over 20 cents PLUS a 4,5M$ in recoverable taxes totalling 31.5M$ or close to 25 cents per share. Strictly on a cash basis GPR.TO is actually trading only at less than 6 times on hand cash. When you add receivables (another 12,8M$) you then end up with Cash on hand and cash equivalent of 43M$ or 30 cents per share. This is very high for a profitable producing mining company. It is still a junior company but a highly profitable.

The real value of GPR.TO  is their properties because you may have the cash you want, if it sits in the bank and you do nothing with it, there is simply no leverage associated.

On the property side, well GPR.TO  has developed (or is the process) 3 more: San Ignacio. Santa Rosa and El Horcon.  Those 3 properties will add up again resources

So, why would the share tanked that much over the last 6 months from a high of 2,33$ in mid-September to a low of 1,39 on Friday February 15^th?

In my opinion, I believe that it is only a question of Silver price. What is interesting to compare GPR.TO to is NYSEARCA:DSLV that tracks silver. Without going too much into details, let’s simply say that when there is a net difference between those 2, GPR.TO has a tendency to fill the gap and actually there is one that has been amplified recently and GPR.TO will have to fill it pretty soon. The correlation between the 2 is interesting (but naturally not an exact science) and if it does, as it has done in the past, I expect GPR to get back closer to 1,85 to 2,00 range in the coming weeks. By doing so, there is a potential gain of close to 40%. That is really good as it will allow taking the profit on some shares and keeping the rest running at a cost close to 0.

So, am I bullish on this one: YES I am.  I own shares of GPR.TO since early 2012 and that company has been one of the most profitable companies I have ever traded. As I said, I always take some profit when possibility arise BUT I always keep most of them only selling some to reduce my cost base.

I fully expect a great future for GPR and can only imagine what will happen when silver goes back to 40-50$ range.

As usual, do not invest more than you can afford to lose.

A new platform is born from INT

Very interesting release this morning from Intertainment Media announcing a new platform where you will be able to chat in respect of your preferred topic AND without any language barrier.

For the past many months we have seen Ortsbo concentrating on business development and many investors were under the impression that the personal user segment was gone for good.

Well I must admit that I was taken by surprise this morning when INT  announce the birth of ''YAPPN'' .

That new platform seem to have all of INT trial test done over the last many months combined into 1 single place.

Those used to do some DD on Ortsbo must remember Fantalk where you were able to have a look at tweets or Facebook messages from other fans around the world and automatically translated into your own language. It was fun BUT it was missing something: you were unable to chat with those people. Based upon the release of today, it would seem that they found a way around that problem and that with the new platform you will be able to chat with all of those fans in your own preferred language.

Interestingly also is the fact that it is kind of a join venture where Ortsbo (INT) will get 60% revenue sharing.

This news release is really good and it is indicating that INT is still developing and testing new products.

How about the release also yesterday of the agreement with one of the major call centers to use Ortsbo Platform for their customer care business. Naturally no value was indicated and I must say that for competition reasons I would tend to agree with INT in that regard and we will see after Q1 release if it did increase revenues and by how much. My guess is that this simple contract will increase revenues by 100% over the year.

So with only 2 news release, INT / Ortsbo have now indicated that they have the intention to dominate the automatic translation world in the general public AND commercial area.

Will it help the share price. Yes it will and I would not be surprised to see a nice POP within a couple of trading days.

As usual do not invest more than you can afford to loose and it is always prudent to take some profit off the table whenever it happen.

UPDATE DRL (Doral Financial)

This is getting interesting. For the past couple of weeks, DRL was almost seem to be in a very narrow trading range with relatively slow average trading volume.

Not sure about this one but it seems that yesterday the volume picked up mid afternoon and ended up over the infamous 0,70 that we have seen very often.

This morning we see some pre-opening volume that does not make the usual day for DRL and again with a higher pre-opening price.

May not mean a lot BUT remember that BPOP did a great profit during the last quarter and its shares went up dramatically yesterday well above what I could have expected as being a great day.

Now, what is that volume and pop up in price for DRL ??? Is this a leak (they will release quarter numbers on the 28th) or short covering in case of a great quarter???

What was interesting from BPOP results is the lowering of provisions for bad debts and this could affect positively DRL also.

One thing is sure, with the nice profit realized by BPOP, if DRL does not show the same kind of improvement, well they maybe in big trouble BUT  if they were to disclose a meaningful profit then it could be the start of a great stretch upward.

I will paly a bit the momentum that seems to be happening now and will most probably get some out before the numbers are release just in case and still make a good profit (in my opinion).

As usual, do not invest more than you can afford to lose and always take some profit when possible.

You can follow me on twitter: @investman2

UPDATE INT.TO

Well, the least we can say is that it is exceptionally quiet at this time with Intertainment Media and especially in the wait for updates on contracts that everybody are waiting for.

It has been a long time since INT has promise news about contracts to be signed that will generate good revenues.

It is very curious not having hear from them in a long time and I suspect that things are still moving in the right direction and until the actual placement is close we will not get finally what we all expect: profit generating contracts.

The shares have been hammered down since last year with some rapid up's that traders could have used to make a quick profit and at the same time reducing the core base cost.

INT is a venture play meaning that it is a start-up company with all the risks that do comes with a tech company.

I do still think that this could be a great profit generator this year for the shareholders that have been patient for a long time and that ANY new contract will change the share price instantly moving it higher in a blink.

Naturally the last time it hits 3$ INT did not had that many shares so 1,50$ would be a great achievement and this number is easily achievable: they need 1 or more profitable contracts and that would do the trick.

Will INT succeed: yes they can and now the ball is in the management team.

As usual do not invest more than you can afford to lose and it is always safe to cash in some profit when the occasion arise.

You can also follow me on twitter at:  @investman2

ALERT UUU.TO

I have been supporting that company for a long time and knew that uranium spot price will get back to a more acceptable price in the next 12-18 months.

This morning UUU advised us that they will go private for a meager 2,86$ per share.

That offer is far below the real value of UUU.TO and anything under 4$ should not even be considered.

I will definitely say NO to this one even if chances of blocking the deal are minimal.

When you get your special shareholder meeting material, be sure to follow the instructions and vote.

François 

Merry Christmas

I would like to take this opportunity to wishes you all a great Holidays season. May you get great time with your loved ones. I wish everybody health, joy and happiness.

François

Where do we stand now???

Well since last post markets have been going nowhere and it was very difficult to establish some good entry points.

As of today, there are many interesting stocks at huge discount price to what they should be trading.

GPL  (GSR.TO) : Anything under 2$ is a real good medium term value. It is now trading near it's 52weeks low and even if overall silver production has been a little less than last year and that overall cost per ounce has increased, they have good and solid plan to reverse it all. At today's price, it definitely means a good time for accumulation.

HOV: This stock is trading in a good range and toward it's 52 weeks high. Higher highs and higher lows seems to indicate a good move to the upside. Construction sector has been very good lately and based upon today's results release from  their competitor, it seems that this trend is there to continue for a good period of time.

 UUU: This stock does not reflect the real value and is now trading under book value. Sure uranium market is in a slump for another quarter or 2 BUT this also signals a good period to accumulate. I would not get all -in on this one but this is  a great long term play.

AC.B (TSX): Simply incredible that this airline is still trading at this level. Air Canada still has one thing to resolve and it is in regard of pension plans deficit. IF they were to fix it, expect a sudden and very interesting price increase and honestly, do you think the Canadian government  will let them go down???

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 GPR.TO / GPL GSR.TO

Well, those 2 plays are totally different one but they both offer something really interesting.

Ok, let's start with a pure silver play that i like a lot. GPR.TO (GPL on the us side) is a great play on silver and the kind of company that you buy for a long run.

At the current level this is one that you can count on to rebound whenever silver will. They are very profitable, very stable and far from being out of resources.

So at this price you have 2 options: you can buy on the short term to get a good return on investment whenever silver price reverse actual course (that could be very soon) OR you can buy for a long shot and continue accumulating. Actual silver price will not last and many are expecting silver to hit 50$. So, Great Panther being a pure silver play it is easy to figure out the real value of this play.

Now for the speculator in you, GSR.TO  (Goldstrike) located in Yukon just release some preliminary results and needless to say they are simply incredible. Not sure how you can get it out of there but surely Yukon seems to become rapidly THE best gold reserve discovered recently if those essays were to be confirmed by a complete drill program that should start next season (i would guess April or May 2013).

The potential is high and so will be the volatility but it may worth a couple of $ just to be in that play early.

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 WPX.TO (Western Potash)

Well, after the shocker of a 15M$ PP at 0,48 the stock has been really oversold.

First and fore most it is very good that WPX was able to raise 15M$ in a private placement and at a good price.

Yes it is dilutive to actual shareholder BUT this is a speculative play and the actual share price is not the main important factor to consider.

The real question is: Will they find a partner ?

My answer is that the probability are really high otherwise  who would invest 15M$ in a company where there is simply no chance of success???

One thing is almost sure is that WPX will rebound at least over 0,50 for a close to 15% gain on the short term unless a very bad new comes out of WPX.

So at actual level i am in to add a small position to play the rebound without selling to much of my core investment and at the same time trying to lower my overall share cost.

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

 

Play Of the DAY: 1st day of new quarter. Where do we go from here?

Well, it has been a great September and this is the first day of trading in the last quarter of the year.

What should we expect?

I think we will now have to face the reality: corporate profit in manufacturing will have increased slower than originally thought. My actual feeling is that transport sector should be leading the way as of now but it is still not. So caution is need in those 2 sectors

With elections coming, the infamous fiscall cliff still not fixed and Europe creating a roller coaster of stock market emotions, this quarter could be very rocky and bumpy to say the least.

At least one sector is still showing great signs of improvement: the construction sector. More and more houses are build and now they are looking for new land and sign of these times, their price has increased. But if job creation was to stall, this could be the first sector to retreat and lose some of it's steam.

BUT: there is still a fantastic sector that will do very well and it is minings where great operating companies will continue to do well and with metal prices increasing, they will do even better.

And in the same dierection, the JUNIOR exploration companies will perform excessively good as their resources will be valued higher and higher. There were some articles this week-end projecting silver to raise over 50$. Imagine the reaction on the actual producers as their expenses will not increase that much but their gross revenues would skyrocket.

So as of today, my plan is simple. I am overweight in housing until some bad job reports comes in. But as long as job creation will be as is it (about 100K per month) i expect construction sector to perform very well. The last week drop was mainly a profit taking opportunity and it is ready to rebound now.

I will also be overweight in the metal producers and some junior exploration companies for the mentionned reasons above.

Here are my companies for the beginning of this 4th quarter:

Metal producer:     GPR/GPL   Great panther has a great return on investment and would benefit a lot from a silver base price increase. That company is one of the great one on the market and at a very cheap price.

Metal exploration:   GSR   ORT   GCU as they are doing a lot of exploration and first essays results are simply incredible more expecially GSR actually.

Mining speculative:   WPX  and EPO. Potash is a needed one and if one of these 2 was to sign a JV agreement, watch out for share price to sky rocket.

Housing: My usual suspects are BZH   HOV   KBH. With those 3 you are covering US west, central and East.

Enjoy your quarter.

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

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
 

The Play of The Day Bernanke Speach

No matter which company you own, want to own or sell, this morning speach will have a ripple effect on the stock market.

Looking at actual futures there is no way we will not feel the consequences of the speach and what it could reveal.

Also important that dollar index is showing a declining US dollar toward Canadian $ by almost half a cent and this is large by all means.

No matter what happen at it's 10am speach, you will be able to monitor in direct the impact of it by looking at actual Dow and S&P charts. Minutes by minutes the impact of whatever he will say will be reflected in terms of gains or losses on those indexs.

But what really matter is the kind of moves we will be able to do during this day and if a little bit of luck is added to the speach, well it will be fantastic for the usual stocks that i follow as they are more often highly volatile.

Whoever has some powder on the side ready to invest will have a great day if the fingers are as fast as Lucky Luke was shooting.

So my list of suspects for today is:

BZH  (Another nice run and ready to get back to 3,37)    

HOV (Huge run this year and ready to shoot higher or get hammered if bad news on the horizon)

RSH (Whatever good news customers can get to spend more (or less) will affect RSH highly) 

FBP( getting back on track to achieve the lowest side of my trading range)

Have a fantastic trading day and a nice long week-end

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: RSH RAD FBP HOV BZH

Today i am simply watching for buying signs on the above stocks at these entry point:

RHS            2,45

RAD            1,21

FBP             3,65

HOV            2,64

BZH             2,89

Any move under these prices will signal me to accumulate some more.¸But be careful as Bernanke speech could change the game completely.

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

Investor trust

In the past when you were interested in buying some company stocks you had to call your broker (the one you trusted the most) and have your order goes through him over the phone.

Now, retail investors are facing many many more challenges.

We are actually getting access at the speed of light to news that are happening almost in real time. We are faced with high speed transaction and many sites where you can get information or dis-information.

So how can a retail investor trust the market?

The market by itself has not changed a lot: the companies that are making the most profit OR the one that can generate that profit will be rewarded with an increase in share price and the one lagging behind will get hammered. And with the internet or social media ones, profit is no longer a requirement during the first years but users is the new norm.

Nothing has changed. Well, almost nothing BUT

Rapidly growing is a bunch of individual currently named the pumpers and the bashers.

Those 2 categories are using bull board and social media to either destroy (or try to) a company and sending its shares to very low price or the opposite by trying to give attributes to a company that does not deserve it and propping the share value to some high levels.

I have even seen co-ordinates attack on companies with only 1 goal in mind: either profit by ‘dumping’ stock or profit by buying cheaply price stocks.

You can also get emails stating black on white which companies they will target and very often these are penny or sub pennies stocks.

The problem is that in both case the retail investor does get penalized and ripped of it's own money by either selling at a panic price or buying at an inflated price.

To complicate the problem, sometimes these people are associated with a broker or work in group to profit from those bad trades: by sending share prices very low, they can buy in at these levels and make a nice profit on the way back up OR by inflating prices, they can sell (dump) their shares at the high level and let the retail investor suffer the loss when share price goes back down.

There is multiple organisations that supervise or control such conduct and they are keeping their eyes open with their mandate to investigate any complaint they receive.

There is still some hope for the retail investor and it is called: due diligence.

ANYBODY that want to buy shares of ANY company MUST do some research by himself to confirm the value in the company he wants to acquire. DO NOT LISTEN to anybody giving you advices to buy or either sell. Buying AND selling is a personal decision and by relying on those individual to commit some of your money in a company recommended by them is almost suicidal.

Those bull boards are for entertainment only and can give you hints on how the company is performing. Many posters on those bull boards will have valid arguments as to why they think the company is performing or not BUT a lot of them will not.

These guys are easy to identify: no arguments either way. Only comments like 'This company will be a 5 bagger' or 'Game over for this company' and much much much ALWAYS without giving the reasons behind their advice.

Why would someone post on those bull boards (bashing or pumping) if they have no financial reasons to be there??? That does not make any sense.

They will try to tell you that they know the market; they want to save you money (or make sure you will make tons of money) and they all look like a scam.

Imagine that you would place an ad in the local newspaper stating’ How to make 1M$ by investing only in 1 company’ would you do that?

Would you sell your house on a so called friend that was telling you that the street where you bought your the house will be valued at 0 without any further explanation?

So why would you listen to those without arguments?

And what do you do if they are arguing about things and always finding the negative side of any good news or the best side of any bad news?

RESEARCH ON YOUR OWN.

Don’t try to be an expert on all companies you will be investing into but at least, go into reliable data sources, do some reading and when comfortable with it, hit the buy or sell button.

NOW: if you ever encounter what looks like a group of individual working together to bash or pump a stock and if you feel something is going on: FILE A COMPLAINT to the appropriate organization. Don’t accept these games and report them.

There are many scams over the internet and some of these posting groups can be linked to that.

Over the years, I have reported many of them and will do it again when I think it is needed.

Do not let those groups waste your time and your money. Investing in the stock market is STILL by far the best way to get some reasonable return on your money BUT you have to be careful. A lot more than before.

 

The Play of the Day TO:CHR.B (Chorus Aviation)

In the airline industry, sometime small is beautiful...

Chorus aviation (operating under Jazz) and affiliated with Air Canada is a small but very profitable regional airliner.

This is an undervalued company with a PE of only 5 and when you compare to others in the same industry, it could 'fly' a lot higher.

An when you include a 15 cents dividend (16% annually) it become an easy one to pick...

It has had a good run recently and a small pull back is possible. Originally i was trading it between 2,80$ and 3,30$ but the recents quarter results have made me change the range in which i will be trading it.

I will be in under 3,50$ and out over 3,80 for a close to 9% profit on each trade and at the same time capturing some time a very juicy dividend.

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 QTM (Quantum Corp)

Cloud services and safe backup is the coming reality. Anybody that is trying to do backup on other secure media has faced the same problem: how do i get it back when needed? Do you do your backups on dvd's and are limited to a 4,7G storage?

Ever had a computer crash where you very important data had to be recovered?

If so, you know that it is absolutely a today's necessity to have a protected copy 'somewhere' that you can access rapidly.

This is what Quantum is offering and with their new technology, at a very low cost affordable to anybody.

Yes their shares have been hammered and they have trended lower for a good period of time but i suspect that with this new product, it is time for a trend reversal with an expected price target of 1,99$ before year end.

So i will start accumulating at this level slowly and gradually hoping for some dips along the road.

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 (Radio Shack)

Radio Shack has been in a very narrow trading range recently and the question is:

How bad can it goes???

It would be very difficult to understand that a company like that would have another very bad quarter after the last 2. That would mean that management is unable to fix the problem and return to the good old times profitability speaking.

The whole sector has been in a very difficult position for the last 12 months but we have to remember that this is a pure US play (including some stores in Puerto Rico) and their problems is to fix the competition problem.

Margins are lower, cell phones profitability is gone so they are left competing against all other electronic retailers including internet based discount sellers.

Radio Shack has established themselve as being the 'convenience store' in electronics and customer service was their best card toward the other players. Have they lost it?

I do not believe so and i also think that they have in their share price a good pourcentage removed due to investors being excessively nervous about retail in general.

When you look at some fundamentals their share price to book value is simply incredibly low: 0,35. This means that actual book value is about 7,60$ and that expectations from the market is another 50% cut in their overall value. I don't buy that.

We should also remember that at this price Radio Shack could be a target for a take over.

So at this level, i am in and will add to my existing position. My expected target price before year-end is 6$.

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 extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of The Day HOV (Hovnanian Entreprises)

As i have already mentionned this week the construction sector is one of the most interesting sector for a mid term investment and this is really a great time to buy on the dip.

HOV was one of the worst hammered stock since 3 years and many were under the impression that this company would not be able to survive the US crisis.

HOV is a new position to me and i will get in this morning if it dips a bit as i would prefer the 2,50$ range to get in (i detest paying too much for any given stock...)

For those who would like to buy many construction companies but lacking a bit of funds, i would suggest ITB the Dow Jones Construction sector ETF and again i would wait a bit this morning to let the market stabilize as i think we could have a lower open.

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: Construction section !

Well, with results this morning from Toll Brothers, it would be very difficult not to look at the construction sector where many players could generate a lot of profit especially for the long stock market players.

TOL (Toll Brothers results were impressive to say the least and that trend should easily reflect on the others:

BZH   (Beazer Homes)

KBH (Kb Homes)

HOV (Hovnanian)

With results like this TOL has now started a trend for the next couple of weeks and ALL of the sector companies will benefit.

If you go with TOL i would wait a bit this morning as there could be some profit taking and shares could dip from the pre-opening price.

But if you are long, it is the right time to open a small position and one of my preferred one is BZH as it has been the underdog for almost a year now and it has huge upside potential.

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 MPEL (Melcro Crown)

Saying that MPEL has been suffering recently would be an understatement...

From a high of 16$ to it's recent low of 9.37$ investors in this one have seen all the spectrum of emotions.

But the recent report showing potential increases of 7% and more from Macau revenues could change the share price direction rapidly. We should not forget also that MPEL is generating profit.

MPEL P/E is lower by far when compared to it's peer by a large margin and this gap should close very rapidly. (MPEL  15, LVS  25, WYN  20)

I will be in again at around 11,75-12.00$ and maybe wait a little bit for some pull back from the recent increase (profit taking for many) to add to my position.

If all data coming till the end of the year are as expected, i think we could see 16$ back again.

We must stay prudent here due to the European situation as if we were to get negative reports again it could affect MPEL (and all other casinos play in the Macau area) for some time.

This is why i would buy MPEL but slowly and gradually by profiting of any dips that could come across. Be careful about chasing the price. Better to make a small profit on a small number of shares than trying to buy on the way up and finally end up in the red.

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 UUU (Uranium One)

Vacations are now over.

UUU has been hammered lately as there is no way this stock whould be trading under 3$ based on fundamentals or value.

Incertainty in markets surely did not help but there was very low volume in the last 3 months until last week where it seem to have pick up  a lot.

This is a great stock for accumulation at this price toward an objective price of around 3,25$ before year end for another very nice profit.

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. Always play with caution.

 Get THE PLAY OF THE DAY on Twitter : @investman2

The Play of the Day RAD (Rite Aid)

A drug store chain with over 4600 stores at that price? Why?

Well, simply stating it: no profitability and lower guidances.

Have they bottomed? I think yes even if last week they dip down to about 1,05 (i supect it could have been part of the trading glitch because volume was huge at the opening then stopped at about 10:00 (like many other one)

So they are in trouble and outlook is not that great but i still think it could raise to 1,25$ to 1,35$ in a rapid way when actual resistance goes away.

At actual level, i will open a small position and add on the the next dip with a exit target price between 1,25$ and 1,35$.

This is actually mostly a trade play and not an accumulation type of play. It may become but not yet. My position will be also a bit smaller than usual as i am still awaiting a good dip to buy in large qty. This week in the markets has been really good so i am expecting a bit of giving back...

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 (GPL) Great Panther Silver USA

How about a great play on silver???

If have chosen GPL instead of GPR (the canadian issuer) for a reason: usa/can exchange rate, as i expect the US dollar to be a bit stronger over the next couple of weeks and trading ''at par'' is another good profit opportunity here.

Let's get back to GPL. If you look at the chart it has been relatively stable over the last couple of weeks and i suspect it is ready to jump higher any day now.

Especially this morning where market seems to open lower, it could be a great entry point under 1,65$. There is no need to rush in as i think silver price will still continue to climb but at a slower speed and GPL is more an accumulation play than a trade play.

But in any ways with the financials coming soon it could also help a bit the stock climb further.

So when you combine with silver going higher, good financials (imo) and US showing strenght, this is a perfect combination for a nice profit.

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: UUU.TO (Uranium One)

UUU is one of the largest uranium producer in the world and is now into oversold territory.

At 2,18$, i expect a major rebound within the next week or so. The 52 week low being at 1,85$ and major support at 2,10$ the possible downside is very low on this one.

They will be reporting results on august 14th and i think that it will be good. Not great results but better than last year with an increase in production.

Their production guidance have been re-affirmed in May and with many hundred of new reactors being at some phase of building, the demand will not go away for Uranium BUT the supply will diminished in the coming year. Many states will try to put their hands on Uranium and will have prices settle well over 60$ in the near term (it trades actually around 49,50$). This will increase sharply the gross profit of the actual producers and even if news guys come on the block, the time needed to build infrastructure will not be a factor to lower price.

So at actual level, i am in and will continue to add on dips.


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