<TABLE width="100%"><TBODY><TR><TD>Wednesday morning thoughts from TC</TD><TD align=right>
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Good morning. Overseas in Asia the major indices continue to trade in positive territory this morning, with the Hang Seng up .84% and the Nikkei up 7.74%. Japan's Nikkei average climbed 7.7 percent in volatile trade with exporters climbing after the yen weakened on expectations that the Bank of Japan will cut interest rates later this week. Japan's central bank is considering cutting rates from an already low 0.5 percent at Friday's policy meeting. The reports about the BOJ's rate cut helped trigger short covering, fueling the rally, however, the euphoria is expected to be short lived as it really doesn't improve global economic fundamentals.
In Europe the major indices opened sharply higher, following the rise in the US and Asian markets, as investors bet on a US rate cut today. Bank stocks are leading todays rally as investors bet on a U.S. rate cut that could help shore up the battered economy. On the economic calendar for today there is the Durable Goods Orders numbers at 8:30am, followed by the Crude Inventories numbers at 10:30am. At 2:15 this afternoon the Fed releases their policy statement and a decision on the interest rate direction will be announced. It is widely expected the Fed will announce a 0.5% rate reduction today. For some reason I think we may be in for a surprise today and get less of a cut than many are expecting. If the Fed cuts by the 0.5%, as expected, the rate will go down to 1% and the Fed will have it's back against the wall, with very little room to manoeuvre in the future. I just don't see the reasoning behind a 0.5% rate reduction, since the banks don't appear to be lending anyways. My thoughts are why not save some bullets until the bailouts are actually working and we see banks lending again, then give the economy the boost it is looking for. Commodity prices, on the back of the expected Fed rate cut, are up this morning in overseas trading, which should bode well for the Canadian indices if the trend continues.
Back in McFaulds Lake, NOT had a disappointing day as it share price was down over 6% and closed at the low of the day. It appears many retail investors were upset with the results of the proxy battle settlement between NOT and Rosseau and those who were buying shares at recent lows took the opportunity and took profits. The chart for today is showing support at $.78 and resistance at $1.16, the 13(MA) is at $1.06 NOT continues to struggle with breaking atop it's 13(MA) showing the downtrend is still intact. Today should be the tell tale on the future direction of NOT, now that the sell on news, profit taking is over. Will Bay St rally behind NOT, now that a change in management has been announced, is the big question.
Unless NOT can come up with some new discovery on the nickel front, or some knock your socks off assays from it's current discoveries, my bet is NOT's share price will do the slow bleed. NOT has been in the news lately because of it's proxy battle, which in turn has led to some above average volume. Now with the proxy battle becoming old news, I expect to see the volume of shares traded to quickly dry up, unless there is a constant stream of news. Then the slow bleed should occur, as it is becoming glaringly obvious, investors have very little appetite for high risk exploration stocks trading on the TSX-v exchange. Investors need not look any further than where the TSX-v sits at this time, it is struggling to hold the 800 level and I don't see this reality changing any time soon. There is nothing wrong with NOT fundamentally, it is just a victim of the economic times the worlds equity markets are facing. At a time when many of the worlds largest and best corporations are trading at 52 week lows and heading lower, it should be obvious to investors there is simply no reason to expect NOT to buck the trend. As much as I believe NOT's share price is severely undervalued in normal times, one must face the reality, that these are far from normal times. Personally I have took profits and sold out my entire position in NOT and have decided to sit on the sidelines, until the turmoil in the equity markets abates. To be blatantly honest, I play the markets to make money and have no interest to become a bagholder in stocks trading on the TSX-v exchange, at this time. JMHO
FWR and FNC appear to be the only other stocks in McFaulds Lake that are getting any interest by investors. They both have current drill programs that have some exciting possibilities. The problem is at this time, do investors really care what they discover. I like both of these stocks, but own no shares currently in either of them. These stocks have the same problem as NOT, investors simply aren't interested in speculative stocks. As soon as we think these stocks are just so cheap they just can't fall further, we get a dose of reality and watch in horror as the share prices do the slow bleed on lack of interest. I have no idea when the tide will turn and investors will come back into these TSX-v stocks, but until they do I see no reason to own any of these stocks. JMHO
On a daily basis it is becoming increasingly difficult to cover the McFaulds Lake stocks in the morning thoughts posts. It is tough to remain positive on these stocks when it is apparent investors have very little interest in them. What I don't want to happen is to write negative things day after day about stocks that I don't own. I realize that many investors are trapped into these stocks at much higher share price levels than they are currently trading at. To continue to write bearish comments about the McFaulds Lake stocks and crush investors spirits about these stocks is really not my gig. But to sit here and pump stocks that I see very little hope for in the short term is not my gig either. I find myself covering the news what is happening in the worlds equity markets to try and find content worth covering in the morning thoughts posts. I am just not sure that this is what the readers of this board really want to read about on a daily basis. So it is time to do some soul searching here and make a decision if the morning thoughts posts should continue. I will watch and let the readers of these posts make the decision for me.
Best of luck to all McFaulds Lake investors.
Al
Good morning. Overseas in Asia the major indices continue to trade in positive territory this morning, with the Hang Seng up .84% and the Nikkei up 7.74%. Japan's Nikkei average climbed 7.7 percent in volatile trade with exporters climbing after the yen weakened on expectations that the Bank of Japan will cut interest rates later this week. Japan's central bank is considering cutting rates from an already low 0.5 percent at Friday's policy meeting. The reports about the BOJ's rate cut helped trigger short covering, fueling the rally, however, the euphoria is expected to be short lived as it really doesn't improve global economic fundamentals.
In Europe the major indices opened sharply higher, following the rise in the US and Asian markets, as investors bet on a US rate cut today. Bank stocks are leading todays rally as investors bet on a U.S. rate cut that could help shore up the battered economy. On the economic calendar for today there is the Durable Goods Orders numbers at 8:30am, followed by the Crude Inventories numbers at 10:30am. At 2:15 this afternoon the Fed releases their policy statement and a decision on the interest rate direction will be announced. It is widely expected the Fed will announce a 0.5% rate reduction today. For some reason I think we may be in for a surprise today and get less of a cut than many are expecting. If the Fed cuts by the 0.5%, as expected, the rate will go down to 1% and the Fed will have it's back against the wall, with very little room to manoeuvre in the future. I just don't see the reasoning behind a 0.5% rate reduction, since the banks don't appear to be lending anyways. My thoughts are why not save some bullets until the bailouts are actually working and we see banks lending again, then give the economy the boost it is looking for. Commodity prices, on the back of the expected Fed rate cut, are up this morning in overseas trading, which should bode well for the Canadian indices if the trend continues.
Back in McFaulds Lake, NOT had a disappointing day as it share price was down over 6% and closed at the low of the day. It appears many retail investors were upset with the results of the proxy battle settlement between NOT and Rosseau and those who were buying shares at recent lows took the opportunity and took profits. The chart for today is showing support at $.78 and resistance at $1.16, the 13(MA) is at $1.06 NOT continues to struggle with breaking atop it's 13(MA) showing the downtrend is still intact. Today should be the tell tale on the future direction of NOT, now that the sell on news, profit taking is over. Will Bay St rally behind NOT, now that a change in management has been announced, is the big question.
Unless NOT can come up with some new discovery on the nickel front, or some knock your socks off assays from it's current discoveries, my bet is NOT's share price will do the slow bleed. NOT has been in the news lately because of it's proxy battle, which in turn has led to some above average volume. Now with the proxy battle becoming old news, I expect to see the volume of shares traded to quickly dry up, unless there is a constant stream of news. Then the slow bleed should occur, as it is becoming glaringly obvious, investors have very little appetite for high risk exploration stocks trading on the TSX-v exchange. Investors need not look any further than where the TSX-v sits at this time, it is struggling to hold the 800 level and I don't see this reality changing any time soon. There is nothing wrong with NOT fundamentally, it is just a victim of the economic times the worlds equity markets are facing. At a time when many of the worlds largest and best corporations are trading at 52 week lows and heading lower, it should be obvious to investors there is simply no reason to expect NOT to buck the trend. As much as I believe NOT's share price is severely undervalued in normal times, one must face the reality, that these are far from normal times. Personally I have took profits and sold out my entire position in NOT and have decided to sit on the sidelines, until the turmoil in the equity markets abates. To be blatantly honest, I play the markets to make money and have no interest to become a bagholder in stocks trading on the TSX-v exchange, at this time. JMHO
FWR and FNC appear to be the only other stocks in McFaulds Lake that are getting any interest by investors. They both have current drill programs that have some exciting possibilities. The problem is at this time, do investors really care what they discover. I like both of these stocks, but own no shares currently in either of them. These stocks have the same problem as NOT, investors simply aren't interested in speculative stocks. As soon as we think these stocks are just so cheap they just can't fall further, we get a dose of reality and watch in horror as the share prices do the slow bleed on lack of interest. I have no idea when the tide will turn and investors will come back into these TSX-v stocks, but until they do I see no reason to own any of these stocks. JMHO
On a daily basis it is becoming increasingly difficult to cover the McFaulds Lake stocks in the morning thoughts posts. It is tough to remain positive on these stocks when it is apparent investors have very little interest in them. What I don't want to happen is to write negative things day after day about stocks that I don't own. I realize that many investors are trapped into these stocks at much higher share price levels than they are currently trading at. To continue to write bearish comments about the McFaulds Lake stocks and crush investors spirits about these stocks is really not my gig. But to sit here and pump stocks that I see very little hope for in the short term is not my gig either. I find myself covering the news what is happening in the worlds equity markets to try and find content worth covering in the morning thoughts posts. I am just not sure that this is what the readers of this board really want to read about on a daily basis. So it is time to do some soul searching here and make a decision if the morning thoughts posts should continue. I will watch and let the readers of these posts make the decision for me.
Best of luck to all McFaulds Lake investors.
Al