Sold some Ratel Gold on this upwsing @ $1.19/share

I sold some more Ratel Gold today at $1.19/share, I bought the stock back on October 18th. at $0.40/share. This last position represented a 200% return for me. I still have one small position left and now that I am cashed up I will look for an opportunity to re-enter the stock if the price drops lower.

I have tried to predict a trading range for Ratel Gold but to date the Company has surprised me to the upside. One thing that I have noticed over the years is when a stock makes a large run up it can only sustain that run for about 3 days. After 3 days the buyers gets fatigued. Ratel Gold is in its second day of its run up.

I should add this to my list of rules and call it the "3 day rule".

54% return on Mineral Mountain Resources MMV.V

I profiled Mineral Mountain Resources back on October 6th and since then the Company has had a string of positive news releases. I decided to sell half my position that I originally bought at $0.37/share, I sold it at $0.57/share for a $0.20/share gain.

I left the other half of my position in an open sell order at $0.70/share. I have effectively reduced the risk of my original investment money by taking some money off the table today.

It looks to me like the market has given Mineral Mountain full value here and there needs to be a news catalyst to get it to the next level. Sometimes this can be called "news fatigue". News fatigue can happen when you put out so much news that the market is completely full or that you put out a string of releases and then there is a lull in news for a few months.

Mineral Mountain has definitely put together some highly prospective properties but it will take time run the usual exploration techniques and define some drill targets.

At this point it is difficult to tell if there is room for MMV to go higher hence the decision to take some money off the table.

Further update on Petrodorado's warrants

I dug into the news history on Petrodorado on Sedar and on November 3 2009 as a condition of the Cap-Link take over of Petrodorado, Cap-Link canceled 43 million warrants that were exercisable at $0.12/share.

The $75 million financing done at $0.35/share that consisted of a share and warrant was done with an acceleration clause on the warrants. Technically this means that if Petrodorado trades over $0.90/share for 20 days the company can shorten the warrants expiry to 30 days upon notice to the shareholders. This in effect will force shareholders to exercise their warrants. From a technical point it could handicap the stock price at the $1.00/share until these warrants get digested by the market.

Rumor has it that  there is big news coming down the pipe, judging by the volume I guess I am not the only one to hear that. Stay tuned..

Ratel Gold: A stock darling....

I like it when stocks prove me wrong on the upside. The market has definitely agreed with me and the potential of this Company by driving the stock price past $1.15/share today. I did not sell all of my position and I had one of those woulda, coulda, shoulda moments. I wish I had more, that's always the way with the good deals. I hazard a guess as the Ratel's next stop but I am going to continue to purchase this stock on any down swings.

If you actually read my blog and bought Ratel congratulations on the win. I like it when I make money for people.

Canadian Energy Exploration follow up XPL.V

I called my broker today to see if I was able to participate in the $0.22/share finance offering that was recently announced by the Company. Unfortunately there has been exceptionally strong demand for the paper at this price and there no more to be had.

A lack of news and a lack of buying momentum might allow a pullback in the stock in the near future. If this happens I will take the opportunity to add to my position before the drill bit turns.

Up next Canadian Energy Exploration XPL.V

About a month ago I went for a beer with one of my brokers, we went to a regular industry hang out, Smileys Pub on Pender Street. I was pressing him for a few new stock ideas to invest in.

Canadian Energy Exploration XPL.V listed on the TSX Venture exchange was a suggestion. I got home and did a bit of due diligence, but nothing got me too excited to jump in at $0.22/share.

My broker had informed me that there was some very competent management put in place and I should look closer at the deal.

Today I got a call from him to take another look, trading volume was way up and there was a nice price spike. I had taken some money from both Emgold and Ratel Gold off the table this week and threw a bid in for 7000 shares at $0.33 in one of my accounts.

Why pay $0.33/share today than when he told me about it last month at $0.22/share?

Well a month ago the Company had no real assets, that all changed on October 21st. with a news announcement of an option to earn 100% interest in 35,200 acres of 40,000 acres in Southeast Saskatchewan. Included in the agreement is the right to review 3D seismic covering the agreement lands. With all this in place I am happy to pay a premium for a stock that now has some potential.

Canadian Energy Exploration was a former shell company (Talon International Energy) that had run its life cycle on the Exchange and was subsequently suspended. The new management cleaned up the share structure and brought all the filings up to date. They also re-capitalized the company after consolidating the old share structure.

Upon completion of the reorganization of the two of the insiders David Stadnyk and George Tsafalas hold approximately 30% of the outstanding shares.

Strengthening the management occurred on July 15^th, the Company announced that Mr Buzan agreed to become the President and CEO of Canadian Energy Exploration. Mr Buzan’s credentials span from Dome Petroleum, AEC Oil, Burlington Resources and Crew Energy.

Further board appointments include Mr. Allen, a Geologist with extensive experience in growing oil and gas production in SE Saskatchewan. He was a key consulting Geologist to Probe Exploration’s during their growth from 25 barrels of oil per day to 7500 barrels per day.

Experienced management combined with a reorganized share structure and the announcement of a decent oil and gas prospect solidified my decision to take a position in Canadian Energy Exploration at $0.33/share.

Further to my purchase at $0.33/share earlier in the day, my broker offered me an opportunity to partake in the recent $0.22/share financing. This stock will be subject to a four month hold period.

I will look to add more to my free trading position in the near future as I take money off the table from other stock trades.

Sold Emgold at $0.25/share today

I sold my shares in Emgold today for a small profit, at this point I am going to throw Emgold on the watch list for the time being. I will look again at the stock come the third or forth week in December.

Petrodorado Energy PDQ.V. The wall of paper

Petrodorado Energy PDQ listed on the TSX Venture exchange is a classic example of the wall of warrants that limit the potential upside of a great deal. In fact Petrodorado has 2 walls to digest.

I have owned Petrodorado since it was a Capital Pooled Company (CPC) on the venture exchange. My original price in Cap-link Ventures was $0.10/share and I was pretty excited when there was a reverse take over of Petrodorado Energy. So excited I added to my position in the $0.40/share range.

Today’s Petrodorado has managed to farm into Pacific Rubiales Energy Corp PRE.TSE exploration blocks in Colombia and Peru. This is pretty exciting considering that Pacific Rubiales trades at over $30/share. One would think that there is plenty of upside for Petrodorado.

Petrodorado secured a very competent management team that raised $75 million dollars at $0.35/share with a full warrant at $0.35/share. The capital issue upon completion of the reverse take over was 214,285,000 units containing one share and one warrant.  The who’s who of insiders at Canaccord participated in the deal including Peter Brown. Sound good so far!!

I was impressed with what Cap-Link ventures had matured into. I thought for sure we got the pieces in place for a “company maker”. The properties that Petrodroado has managed to farm into are “company makers” as Colombia has elephant style oil and gas discovery potential.

When Petrodorado was still trading as Cap-Link Ventures a private placement was completed for 46 million shares at $0.06/share with a full warrant at $0.12/share. This was a total of 92 million shares out there waiting to come out. When the transaction was complete PDQ traded as high as $0.60/share, then came the 92 million cheap shares and warrants. Seven months of continuous selling pressure managed to drop the price to $0.20/share, Ouch!!

Judging by the graph the seller ran out of steam by July and the selling pressure was off. I had thought about averaging down but as I like this deal but at what price? It appeared that this stock was going to be sold down to $0.12/share.

Fast forward 3 months and the stock recovered to $0.35/share (the $75 million financing price). The last few days the stock has traded up into the high $0.40/share range, this looks great as I have recovered my original investment that I bought in the 40 cent a share range.

You would think all is great but now there is 214,285,000 warrants in the money and judging by the volume they are being exercised by the millions.

Petrodorado has been busy drilling their properties and have yet to announce the flow rate of the exploration wells to date. The catalyst to eat through the warrants would have to be incredible news on a massive discovery.

Just recap the share structure of Petrodorado, there are currently 395,000,000 shares outstanding and another 215,000,000 warrants hitting the market. That is a lot of paper.

Petrodoroado had/has 2 walls of warrants to deal with, the first started back in November 2009 and took 7 months to digest. Now the stock is up against another wall of paper twice the size. From my experience Petrodorado needs to announce a major discovery to make it to the next level.

Meanwhile I expect this stock to be range bound between $0.35/share and $0.49/share for the near future.

Ratel Gold's new trading range

I posted earlier that Ratel Gold might trade back into the $0.30/share range with the announcement of raising $25 million dollars at $0.30/share. It looks like that might not happen.

The market has clearly shown it approval with the recent news of a 60% interest in the King-king project in the Philippines. I would hazard a guess that the Ratel will have the financing closed in the very near future.

At this the current price of $0.70/share Ratel looks appropriately valued and I will look for any opportunity to buy more in the high $0.50's or low &0.60's. 

Re adjusting the exit for Emgold EMR.V

Emgold looks like it is struggling to stay in the current price range, this is probably due to news fatigue. News fatigue is when there is a lack of news and the stock quietly drifts off. I have adjusted my sell price to $0.25/share. Coming into the tax loss season might provide a chance to pick up the shares at a much lower price.

Dumping out the dogs, Strike Minerals

Every stock pick does not always work out to be a winner, believe me I have a few dogs in my account. One of the dogs I got rid of this week was Strike Minerals STK.V on the Venture exchange.

I have to admit I love a $0.05/share company, it gives me a chance to load up on cheap paper and enjoy the run. This is where and why I got long this deal.

Two news releases back in June caught my eye. One was a new director on board and the second was the engagement of a PR firm to help raise $400,000 at a nickel.

A private placement at $0.05/share should be easy to close and should move the stock up to at least 10 cents or even 12 cents a share. Neither of these things happened.

Here we are 4 months later with the company re-announcing the same $0.05/ share financing?  These days money is being thrown around left and right to any company that even mentions gold in its sleep. So why can't these guys complete the transaction? Not only that but they have an old mine that they are going to review to revive and they are still trading at $0.06/share, anyways..

I traded the stock out flat or even for a small profit. Sometimes you just have to move on as there are to many other deals out there. I will throw Strike on a watch list to see if they can ever develop this story in the future.

Once again never fall in love with a stock, it will always disappoint you. Don't forget to cut and run if you bought for a reason but that reason never came to pass.

Good luck if you are a shareholder of this Company.

More comments on my dogs to follow including Hawthorne Gold......What happened there??

Taking some profits on Ratel Gold.

I had to follow my rules and take some money off the table with Ratel Gold. I sold 2/3's of my position today, I will save the rest of the stock to see what happens next. I bought the stock with an average cost of $0.39/share and sold today at $0.66/share. My return on my investment is 67% in 2 days. Better yet is the balance of the position I have is effectively free as I have taken the principle investment money out.

I will buy the stock again if it pulls back into the $0.50/share range.

Ratel Gold trades to new highs on King-king announcement

I Posted a few days that Ratel might trade in the mid $0.30's a share range for a period as the Company closes a large private placement at $0.30/share. Ratel has proven me wrong, it did trade down to $0.36/share but has never looked back since.

It seems to me that the market likes the King-king announcement and subsequently pushed the stock price to new highs. I can't hazard a guess as to how high it will go in the near term, but I will enjoy the ride.

Ratel Gold scores the King-king project, a company maker!!

Taking the money when it is there. 

As I posted on Thursday Oct 14^th Ratel Gold made a significant upward movement that generated a 40% return on my investment. I also posted that I would rebid the stock at $0.40/share and see if I get a fill. Today I got filled at $0.40/share and at $0.39/share.

The run up was on anticipation of a news event which was announced today. Since the news came out the stock has fallen back to trade in a lower range.

Ratel Gold as you know was spun off with the non core African assets of CGA mining on the TSX. CGA mining has  focused on the Musbate Gold Mine in the Philippines that has a resource of approximately 7.7 million ounces of gold. This is significant considering today’s news on Ratel and CGA Mining.

Today Ratel and CGA announced an agreement to acquire a 60% interest in a massive advanced stage Gold and Copper project in the Philippines. The King-king Project, “is one of the largest undeveloped copper-gold deposits in the world, with a measured and indicated equivalent copper-gold resource of 791.5 million tonnes at 0.815 gram per tonne equivalent gold for 20.7 million equivalent gold ounces (0.279 per cent Cu for 4.9 billion pounds of Cu and 0.371 g/t Au for 9.4 million ounces of contained Au), and a further 2.75 million equivalent gold ounces in inferred resources (125.5 million tonnes at 0.237 per cent Cu pounds and 0.308 g/t Au).” A NI 43-101 compliant report is being prepared to confirm the reliability of the above statement.

Today’s announcement is complicated but it looks like the management of Ratel and CGA pulled off a fantastic score.

Ratel Gold and CGA has entered into an agreement to acquire the interest of Russell Mining & Minerals, Inc (RMMI) for their 60% interest in the King-king property in the Philippines. This property was originally a partnership between Nationwide Development Corporation (NEDECOR) and another Philippine miner called Benguet Corporation. Benquet has subsequently failed to meet its requirement in regards to this project and their interest has reverted back to NEDECOR. NEDECOR farmed out Benquet’s interest to RMMI as a new partner to further develop the King-king project. Sure there are a few wrinkles to iron out that you can read about here and here.

Hence this is where Ratel and CGA come into the picture by acquiring RMMI. CGA has expertise in the Philippines with its Musbate project and they will fund all the risk of developing their interest in the King-king property through Ratel. Don’t forget that CGA has a large ownership in Ratel and also shares the same directors. With this announcement CGA will increase it shareholding of Ratel from 20% to 27%.

As a bonus for the shareholders of Ratel, it appears that the African assets that where spun off from CGA to Ratel will once again be spun out to the existing Ratel shareholders in a new company down the road.

Ratel has a long road ahead of themselves with raising the capital to pull off this amazing opportunity. Today they announced another $0.30/share financing to raise $25 million which should provide an opportunity to purchase the shares in this range up until the closing of the private placement.

The caveat is Ratel still needs TSX and shareholder approval for the deal as well as meeting the financial obligations for NEDECOR. There is some serious dilution of the share capital of Ratel but I can live with that due to the opportunity that is upon us.

With today’s announcement I will alter my strategy with Ratel and begin to accumulate a large share position in the company over time. I believe this is could turn out to be one of those home run stock stories that you hear about every once in a while..

Another significant shareholder in Emgold

Last week I repurchased Emgold at $0.23/share with the plan on exiting at $0.28 for a quick 21% return. Today Emgold closed at $0.27/share and I believe I will be off my position tomorrow. A couple of significant events are telling me that I won't be able to buy the stock again below $0.25/share.

Emgold has managed to increase and close it financing at $0.14/share, with a few pro groups as buyers (Stock brokers and insiders).

Gerbino Gold Group a private investment fund also announced that it owns approximately 2.9 million shares and 2.4 million warrants. On a partially diluted basis Gerbino owns 16.85%. Pinetree Capital has also released their holdings on Emgold on a partially diluted bases at 18.4%.

Emgold looks like it will trade up with some good spreads. I believe I will be taken out tomorrow at $.28/ share but my re-entry point is moving up and looks like the new lows will be $0.25/share.

Once again I am planing my trade and trading my plan.

Sold on Ratel Gold's move up

There was a nice move up on Ratel Gold today. I originally bought it back in September and made my first comment on the stock on September 29 2010. Today's 550,000 share volume pushed the stock up a 32% on the day. The last trade did look like a high close as it printed 0.04/share higher than the previous trade 1 hour earlier.

My entry price was $0.35/share and my exit was $0.49/share for a gain of $0.14/share or 40% return. Once again the money was there for the taking. I have picked my re-entry into Ratel at $0.40/share but I am willing to pay up to $0.42 if need be.

The chart has shown previous spikes in the past with a retrenchment. I believe I will be an owner of this company again in the near future.

Once again plan your trade and trade your plan.

Long Emgold again at $0.23/share

As I posted on Monday I made a small trade on Emgold and netted a quick 23% on my money in one week. I also posted that I would bid again at $.23/share and was pretty confident I would get filled by the end of the week. Today my order got filled. I have put the 6000 shares up on the offer at $.28/share. It has traded up there the last few days so I think it will sell. If I do get filled at $.28/share I will be back on the bid.

Mineral Mountain Resources MMV.V The next Rainy River?

Once again my broker asked me my thoughts on Mineral Mountain Resources, a new issue that Canaccord took public back in June 2010. The original IPO was done at $0.25/share for non flow through shares and $0.30 for flow through shares. The IPO filled the treasury with $2,750,000.

 Mineral Mountain Resources

The property that they went public with is the massive Kootenay Arc Property that is 60KM long by 15KM wide, enough to go public with. Although not the reason I bought the stock. 

 

Management is once again the critical factor in my decision to plop down and pick up 10000 shares at $0.37/share. A historical connection to Rainy River Resources RR.T piqued my interest. First off I checked out the chart on Rainy River and liked what I saw. Rainy River has a pretty significant gold resource discovery in Ontario and the chart is going in the right direction.

Rainy River Chart

Mineral Mountain deserved more research. Nelson Baker served as President and CEO of Rainy River from 2005 to 2009. Marshall Bertram served as the CFO, finally Bradley Baker handled the Investor Relations for Rainy River until 2009. Judging by the chart they made a lot of investor’s money in the past. Here we are today with their next project.

Mineral Mountain recently raised another $2,140,000 in September coinciding with the announcement of an option on early stage exploration property in Ontario. The Copper Hill property has had limited holes drilled but has shown potential that warrants further exploration.

Mineral Mountain topped the Copper Hill property announcement 12 days later with an option for 75% in a historical producing gold mine. The Straw Lake Beach property lies approximately 70 KM northeast of Rainy Rivers 5MM ounce discovery.

The pieces are in place for a nice win with Mineral Mountain. My decision is based on seasoned management with a great track record in place. The ability to raise funds through a relatively new issue with limited distribution. Three properties that may have the potential to turn Mineral Mountain into a future producer.

Thanks Marty for the heads up on this one.

Buying management with Stoneshield Capital Corp. STS.V

Here is a company that my broker had asked me to take a closer look into back in May of this year. Stoneshield Capital had approached his firm for financing. Stoneshield had just announced a $750,000 private placement at $0.125/share with a full warrant at $0.185 in the first year and $0.235 in the second year. Due to management credentials demand for this offering was subsequently increased to $915,000.

I participated in 40,000 of the units and have bought a further 6500 shares on the open market, some shares as low as $0.085

At first glance of the chart showed a pattern of low liquidity and no major distribution of stock from the original shareholders. This is in part of having about 10 million shares outstanding before the above mentioned private placement. Once again I was buying near the bottom of the cycle.

Digging into the history of Stoneshield revealed that it was a Capital Pool Company (CPC) that managed to do its Qualifying Transaction (QT) and private placements in one of the worst market down turns in a generation, not bad!

The QT property was soon dropped once the CPC status of the Company was removed, this made Stoneshield Capital a clean shell going forward.

A well respected board of directors is really what got my investment. Allen Ambrose is the past President and CEO of Minera Andes MAI.T, a gold and silver producer of which he is currently a director of.

George Cole experiences includes past VP of Exploration for Cominco American and Hans Rasmussen who worked with Newmont Exploration and Kennecott-Rio Tinto.

Currently Stoneshield has a project in Mexico called the Tabisco property. It has had some decent showings of gold and silver from previous drill holes, nothing that is a company maker yet though. Further development is needed to substantiate a higher stock price.

Five million $0.25 warrants are set to expire on October 29^th 2010 will remove some stock overhang. The four month hold on the private placement is soon to expire in the 3^rd week on November.

In the last week the bids have appeared to strengthened suggesting that some sort of announcement is in the pipeline.

Once again we have in place competent management, money in the bank, buying at the bottom of the cycle and the extra leverage of a warrant that is good for 2 years.

Traded Emgold for a quick 23% return in one week.

I wrote about Emgold in September, I bought 5000 shares at $0.21/share. I have noticed a large trading spread of 5-7 cents due to ill liquidity at these levels. Today I sold 5000 shares at $0.27/share, it netted me a quick $242 after commissions. Not a home run trade by any means but a first base trade none the less. The return on my initial investment is 23% not bad considering I bought a week ago. I am back on the bid at $0.23 for 6000 shares this time and believe I will get filled by the end of the week.

My strategy if filled will be to join the offer and play the spread of Emgold for the time being. Once again I am trading by my rules, the money was there for the taking, I can always buy it again and I am not in love with this stock. I planned my trade and traded my plan.