<TABLE width="100%"><TBODY><TR><TD>Tuesday morning thoughts from Tc</TD><TD align=right>
</TD></TR></TBODY></TABLE>
Good morning. Overseas this morning the major Asian markets are mixed this morning. The Hang Seng in China is up .76% and the Nikkei in Japan is down 4.12%. The unexpected rejection of the $700 billion bailout plan, by the US lawmakers, has sent Japanese investors scrambling out of equities and into the safety refuge of government bonds. Global money markets are frozen, even as central banks are pouring hundreds of billions of dollars into them, fuelling fears that companies may face funding difficulties and that in turn would hurt the overall economies. In Europe the major indices are mixed, banking stocks are showing renewed strength. Investors are talking about expectations that the US Fed will make a surprise rate cut, to shore up investor confidence until they they can regroup and have another vote on a new and improved bailout plan. European investors are also talking that the European Central Banks will have an emergency rate easing meeting, sometime this week. On the economic calendar we get the Chicago PMI numbers at 9:45, followed by the Consumer Confidence numbers at 10 am. The early futures numbers are pointing to a very positive opening for the US indices. George Bush is expected to make a statement on a new rescue/bailout plan at 8:45 this morning. What a difference a day makes. Perhaps a bottom is in after yesterdays capitulation day in the North American indices?
Back in McFaulds Lake, on a day of record losses for the Canadian indices yesterday, NOT's share price couldn't avoid the trend. Investors capitulated and pushed NOT's share price down to a new 52 week low. At one point the share price dropped to a low of $1.30, but rebounded quickly to close at $1.58, down only 6.51% for the day. However, looking at the chart of NOT we can see the stock has been in an ugly downtrend for months now. The failure of NOT to break above it's 13(MA)and use it as support instead of resistance is showing no signs of turning around anytime soon. For today NOT's chart is showing support at $1.14 with $1.90 being resistance. However the real resistance for NOT is at $1.74, it's 13(MA). Until NOT can break above this point and close above it, it is extremely risky to be invested in this stock.
I have been reading other forums that follow NOT and the subject of doing DD is often the topic. So I thought I would wade into this topic also. For instance, anyone that talks about NOT, in anything but a bullish pump, pump tone on Agoracom, is instantly called a basher and the post is rebutted by the permabulls. The poster is told he/she doesn't have a clue what he/she is talking about. The rationale the permabull uses is that he has done his DD, only a fool can't see NOT's share price will soon be going to the moon. Readers are told by the permabull don't sell your shares, what will happen if NOT releases a news release and the stock takes off and leaves you behind. Look at the money you will lose. The permabull never talks about the money you will lose if you don't use proper money management techniques and blindly ride the stock down in share price, to the point your losses are so bad, you can't get out. To the permabull, why does it matter if the stocks share price goes down, he the permabull has done his DD and it is only a matter of time before NOT's share price, will take off to the moon and you will be sorry you weren't on for the ride when it happens. Many investors fall for this, I have done my DD story from the permabulls. They are now sitting as bagholders of NOT, trapped into the stock, from much higher share prices and now can only sit in horror as the stock slides further and further into the red for them.
So I have to question the permabull. Have you really done your DD on NOT? Or have you only looked at one side of the equation and you are using this I have done my DD story, to try and rationale your reason for being a bagholder in the stock. If the permabull had truly done his DD on NOT, he would of realized that fundamental analysis(FA) is only one half the story, when doing DD on any stock. He would realize that technical analysis(TA) is just as important as the FA that he has done. Doing TA would of told him where the support and resistance points are on the stock. He would of done his research and known where the fibonacci retracements points where. He would of known the points where the stock had broken below support and had a clear exit strategy to protect his investment dollars. He would also have known the point where it was safe to get back into the stock. So I caution you when listening to the permabull, has he really truly done his DD?
Today looks like it will be a very positive opening for the markets. Hopefully NOT can get its share price righted and get a close above it's 13(MA). To me, NOT's share price looks to be way oversold at current share price levels and I expect to see it get a bounce. However, for those looking to take a position in NOT, buying in, once it is trading above it's 13(MA), will lessen your risk considerably. Once NOT is clearly trading above it's 13(MA) you can use it as a support level and put in your mental stop loss point and use proper money management techniques to protect your investment dollars.
FNC was one of the few McFaulds Lake stocks to survive yesterdays bloodbath and it actually closed up for the day. I haven't heard much from the rumour mill how FNC is making out in its current drill program. Now that the PP has closed, it appears all these mysterious leaks we were getting on a daily basis, have ceased. I think most of the leaks were started right from Peter Smith himself. Actually it matters not about the leaks, the important things for investors is that FNC hits with the drill bit. Hopefully we hear of a nickel discovery, none of this chrome stuff.
FWR's share price took a hit yesterday during the capitulation sell off on the TSX-v. I suppose it should have been expected as many investors were sitting in a profitable position. Locking in profits is so rare these days, that it is a testament to FWR that at least some investors had that opportunity yesterday. Hopefully FWR can get its share price righted today after yesterdays bloodbath. Yesterday probably offered a great opportunity for anyone sitting in cash, to pick up some shares at bargain basement prices. The story with FWR, is they are supposedly now drilling some of the hot spots gleamed from the VTEM surveys. McFaulds Lake badly needs a stock like FWR, to come up with a nickel discovery of significance, to get investors interested in the McFaulds story again. The FWR story, is just beginning to unfold with this current drill program. Currently this is one of the few stocks in McFaulds Lake that has caught investors attention, showing speculative fever is still alive in McFaulds.
Currently FNC, FWR and NOT are the stocks that investors are showing the most interest in. We are experiencing one of the roughest times in recent memory for junior mining stocks. It is hard for many investors to show interest in some of these speculative stocks when the financial system as we know it, is in complete disarray. No one knows when this financial crisis will pass. We could have bottomed out already, or we may have years left to get some of these excesses corrected in the global financial system. However one thing is plainly clear, the pool of capital for the junior mining stocks has all but dried up. I would like to again caution investors to do their DD very carefully. Make sure the stocks you are buying in the junior mining sector, have money. Avoid stocks that will be needing to raise capital anytime soon, like the plague. If the stock you buy, can't raise money, being invested in the stock will be dead money. No one will buy these stocks from you, the liquidity will be non existent. The stock certificates in these types of stocks will be nothing more than wallpaper. Some investors don't realize when the markets are in a bear market like they are currently, the last stocks to bounce back, will be the TSX-v stocks. There are far too many good bargains on the bigger, more liquid stocks, for investors to be willing to even touch most of these stocks. Only the very elite group of stocks in the TSX-v will get any attention from investors, anytime soon. I would include NOT in this elite group of stocks, they have discovered something of value. Most of the TSX-v stocks are mere wantabees, they don't actually hold anything of real value. So be very wary of holding anything but the elite group of stocks in the TSX-v exchange is my best advice. JMHO
Best of luck to all McFaulds Lake investors.
Al
Good morning. Overseas this morning the major Asian markets are mixed this morning. The Hang Seng in China is up .76% and the Nikkei in Japan is down 4.12%. The unexpected rejection of the $700 billion bailout plan, by the US lawmakers, has sent Japanese investors scrambling out of equities and into the safety refuge of government bonds. Global money markets are frozen, even as central banks are pouring hundreds of billions of dollars into them, fuelling fears that companies may face funding difficulties and that in turn would hurt the overall economies. In Europe the major indices are mixed, banking stocks are showing renewed strength. Investors are talking about expectations that the US Fed will make a surprise rate cut, to shore up investor confidence until they they can regroup and have another vote on a new and improved bailout plan. European investors are also talking that the European Central Banks will have an emergency rate easing meeting, sometime this week. On the economic calendar we get the Chicago PMI numbers at 9:45, followed by the Consumer Confidence numbers at 10 am. The early futures numbers are pointing to a very positive opening for the US indices. George Bush is expected to make a statement on a new rescue/bailout plan at 8:45 this morning. What a difference a day makes. Perhaps a bottom is in after yesterdays capitulation day in the North American indices?
Back in McFaulds Lake, on a day of record losses for the Canadian indices yesterday, NOT's share price couldn't avoid the trend. Investors capitulated and pushed NOT's share price down to a new 52 week low. At one point the share price dropped to a low of $1.30, but rebounded quickly to close at $1.58, down only 6.51% for the day. However, looking at the chart of NOT we can see the stock has been in an ugly downtrend for months now. The failure of NOT to break above it's 13(MA)and use it as support instead of resistance is showing no signs of turning around anytime soon. For today NOT's chart is showing support at $1.14 with $1.90 being resistance. However the real resistance for NOT is at $1.74, it's 13(MA). Until NOT can break above this point and close above it, it is extremely risky to be invested in this stock.
I have been reading other forums that follow NOT and the subject of doing DD is often the topic. So I thought I would wade into this topic also. For instance, anyone that talks about NOT, in anything but a bullish pump, pump tone on Agoracom, is instantly called a basher and the post is rebutted by the permabulls. The poster is told he/she doesn't have a clue what he/she is talking about. The rationale the permabull uses is that he has done his DD, only a fool can't see NOT's share price will soon be going to the moon. Readers are told by the permabull don't sell your shares, what will happen if NOT releases a news release and the stock takes off and leaves you behind. Look at the money you will lose. The permabull never talks about the money you will lose if you don't use proper money management techniques and blindly ride the stock down in share price, to the point your losses are so bad, you can't get out. To the permabull, why does it matter if the stocks share price goes down, he the permabull has done his DD and it is only a matter of time before NOT's share price, will take off to the moon and you will be sorry you weren't on for the ride when it happens. Many investors fall for this, I have done my DD story from the permabulls. They are now sitting as bagholders of NOT, trapped into the stock, from much higher share prices and now can only sit in horror as the stock slides further and further into the red for them.
So I have to question the permabull. Have you really done your DD on NOT? Or have you only looked at one side of the equation and you are using this I have done my DD story, to try and rationale your reason for being a bagholder in the stock. If the permabull had truly done his DD on NOT, he would of realized that fundamental analysis(FA) is only one half the story, when doing DD on any stock. He would realize that technical analysis(TA) is just as important as the FA that he has done. Doing TA would of told him where the support and resistance points are on the stock. He would of done his research and known where the fibonacci retracements points where. He would of known the points where the stock had broken below support and had a clear exit strategy to protect his investment dollars. He would also have known the point where it was safe to get back into the stock. So I caution you when listening to the permabull, has he really truly done his DD?
Today looks like it will be a very positive opening for the markets. Hopefully NOT can get its share price righted and get a close above it's 13(MA). To me, NOT's share price looks to be way oversold at current share price levels and I expect to see it get a bounce. However, for those looking to take a position in NOT, buying in, once it is trading above it's 13(MA), will lessen your risk considerably. Once NOT is clearly trading above it's 13(MA) you can use it as a support level and put in your mental stop loss point and use proper money management techniques to protect your investment dollars.
FNC was one of the few McFaulds Lake stocks to survive yesterdays bloodbath and it actually closed up for the day. I haven't heard much from the rumour mill how FNC is making out in its current drill program. Now that the PP has closed, it appears all these mysterious leaks we were getting on a daily basis, have ceased. I think most of the leaks were started right from Peter Smith himself. Actually it matters not about the leaks, the important things for investors is that FNC hits with the drill bit. Hopefully we hear of a nickel discovery, none of this chrome stuff.
FWR's share price took a hit yesterday during the capitulation sell off on the TSX-v. I suppose it should have been expected as many investors were sitting in a profitable position. Locking in profits is so rare these days, that it is a testament to FWR that at least some investors had that opportunity yesterday. Hopefully FWR can get its share price righted today after yesterdays bloodbath. Yesterday probably offered a great opportunity for anyone sitting in cash, to pick up some shares at bargain basement prices. The story with FWR, is they are supposedly now drilling some of the hot spots gleamed from the VTEM surveys. McFaulds Lake badly needs a stock like FWR, to come up with a nickel discovery of significance, to get investors interested in the McFaulds story again. The FWR story, is just beginning to unfold with this current drill program. Currently this is one of the few stocks in McFaulds Lake that has caught investors attention, showing speculative fever is still alive in McFaulds.
Currently FNC, FWR and NOT are the stocks that investors are showing the most interest in. We are experiencing one of the roughest times in recent memory for junior mining stocks. It is hard for many investors to show interest in some of these speculative stocks when the financial system as we know it, is in complete disarray. No one knows when this financial crisis will pass. We could have bottomed out already, or we may have years left to get some of these excesses corrected in the global financial system. However one thing is plainly clear, the pool of capital for the junior mining stocks has all but dried up. I would like to again caution investors to do their DD very carefully. Make sure the stocks you are buying in the junior mining sector, have money. Avoid stocks that will be needing to raise capital anytime soon, like the plague. If the stock you buy, can't raise money, being invested in the stock will be dead money. No one will buy these stocks from you, the liquidity will be non existent. The stock certificates in these types of stocks will be nothing more than wallpaper. Some investors don't realize when the markets are in a bear market like they are currently, the last stocks to bounce back, will be the TSX-v stocks. There are far too many good bargains on the bigger, more liquid stocks, for investors to be willing to even touch most of these stocks. Only the very elite group of stocks in the TSX-v will get any attention from investors, anytime soon. I would include NOT in this elite group of stocks, they have discovered something of value. Most of the TSX-v stocks are mere wantabees, they don't actually hold anything of real value. So be very wary of holding anything but the elite group of stocks in the TSX-v exchange is my best advice. JMHO
Best of luck to all McFaulds Lake investors.
Al
RB) ("Probe") are pleased to announce that assay results have been received for core samples from the recently completed drilling program on the Company's 100%-owned McFauld's West property. Although only representative sampling of the peridotite was undertaken during the program, three of nine samples from the 60m intersection in hole MW08-08 returned significant and highly anomalous values in platinum, palladium and gold. A one metre section of peridotite at 136 metres depth returned the highest values with a combined 2.1g/t of platinum, palladium and gold. In addition, a 1.9m section of peridotite starting at 142m depth returned an average grade of 0.36 g/t combined platinum, palladium and gold. Nickel values in the PGE mineralized zones were also anomalous returning values of up to 416ppm. The following table shows precious metal results for the two anomalous intervals:
