Got back into some Microcaps today.
First one was Altius Minerals (ALS.v):In this case, ALS is not a disease, but a junior uranium explorer that is turning itself into a merchant banker for other junior explorers. Paul Van Eden, a newsletter writer and portfolio manager, is head over heels in love with this stock. He claims that this is one of those stocks that you can buy and hold forever.
Riiiiiiiight..... If he loves it so much, he should be glad to buy it from me for .... $18? I mean, after all, if you are comfortable to hold it forever, it just might hit $18 one day. Unfortunately, today is not that day.
I bought Altius Minerals (ALS) when I saw the bullish flag on the daily chart, and volume was picking up and setting up to break to new highs. I plan to hold this for a swing, market conditions permitting.
Next one was Energy Metals (EMU on the NYSE, EMC on the TSX):
Volume was also decent looking, so I jumped in @9.16. My thesis is a play of the pullback pattern. If it doesn't break back above the 20d EMA, I will probably bail.
And last but not least, there is HudBay Minerals (HBM):
I bought my first position in HBM on the break above 22. 22 is one of those round numbers and stocks tend to have an affinity for round numbers (ie. resistance/support tends to be at a round number, as opposed to something like 22.37 being a support level). The next position was on the break above 22.5, another pseudo-round number.
HBM looks to me like it is on the verge of completing a U-Turn reversal pattern. Volume will be the deciding factor, but so far so good.
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Wednesday, December 13, 2006
The Power of MicroCap Wednesdays
Posted by Phileo at 1:38 PM PermaLink This!
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