Monday, May 25, 2009

Gold & Silver stocks

Last week I suggested AUY was breaking out on a very strong chart pattern. Yesterday's post on Platinum made similar observations. Today I'm looking at the Philadelphia Gold & Silver Sector Index.

XAU

The big picture Weekly chart looks to be breaking out above 150 with an initial target of 225:



This is confirmed in the 120 minute shorter-term chart, suggesting about a 10 point risk (Blue Wave stop level) for about a 75 point gain:


The individual stock components of the XAU:


A weak dollar, geopolitical concerns and the potential flight to safety in the next down leg of the global financial markets all contribute to fundamentals underlying the bullish chart patterns.

Odds & Ends

Insider Buying

I received some requests recently to be added to the Insider-buying mailing list, "Sally." Unfortunately, we discontinued the list late last year, due to some time constraints as well as the drying up of quality insider buying. For an excellent summary of what we were doing and what has been happening recently in this area, I recommend the following article by two of the original members of our insider buying project: Insider Buys - Methods and Strategy.


Moderation

Having to moderate comments is a pain and I have temporarily removed moderation to make my work easier and to promote a free and open discussion of topics covered here. The two biggest no-no's are personal attacks and distortion of the truth. If they emerge again, either moderation goes back on, or comments will be disabled completely. There is virtually nothing that can't be said in response to blogs or other comments that can't be written without resorting to personal attacks or misrepresentations. In other words, be engaging without being destructive. The collective ideas and thoughts of the followers of this blog are highly valued by me and would be a terrible loss if a few mudslingers were to ruin it for all.


NNVC

I met with Dr. Eugene Seymour, CEO of NanoViricides a couple of weeks ago. Although we have spoken many times on the phone and through email, this was our first face to face meeting. We talked for about two hours, although Dr. Seymour did most of the talking. Hearing him embrace the company's potential was in a word, breathtaking. My five-year target for NNVC's stock price remains in the triple digits. If anything, it may be at the lower end of ultimate appreciation.


A

12 comments:

Edwardo said...

What is the path to triple digits likely to be? It seems the company needs to first have one of their spectacular in the pipeline products jump through the hoops that all new drugs are required to jump through followed by a....buyout.

Edwardo said...

I left out a step or three. So, aforesaid spectacular product gets onto the market and does extremely well, racking up tremendous profits and then, down the line, a bidding war erupts to buy the company between J&J and Phizer. The rest is glorious history,

Anonymous said...

Path to triple digits would be the 7 or 8 products NNVC is at. Each cap. multi millions......make the math...

Allan said...

Edwardo, I don't know if you were here in 2006 or not, but the stock ran from 10c to 3.75 in a matter of 3-4 months. At the time, it was running on fumes. Three years later they have eight products in testing and interest from big pharma, US government, CDC, NIH and private research universities. Successful testing is begetting expanded testing. A run similar to 2006 is in the making. By the time a cleared product hits the shelves, triple digits will have already hit. The new class of shares is to prevent a hostile takeover. Management is all over this one, they have their sites set far and above a simple takeover by big pharma. This will be the ride of an investing lifetime.

Ilene said...

What new class of shares? How would that work? poison-pill thing?

I can see it running into a single digit but not a triple or even double digit. Well, let me take that back, I can see it in a bubble-type insanity situation.

Secondly, Allan's readers, we're talking about this on twitter. I'm trying to teach Allan how to use twitter though I'm new at it myself: Go here: http://twitter.com/allanpharris

You can follow by clicking on follow Allan.

gwac0 said...

Excellent source for insider buys and sells. It's free and they send out an email nightly with the daily buys and sells.
http://www.j3sg.com/index.php

Greg

Anonymous said...

They have 8 products "in testing" and zero products in clinical trials. "Interest" from an unnamed "big pharma" company. Vaporware.

Anonymous said...

To Mr. Vaporware...

The "interest" from a Big Pharma is in the form of an MTA (Material Transfer Agreement) and testing of the "material" is underway.

Anonymous said...

Allan,

Any views on ENMD

N

Anonymous said...

I'm new to your blog. Referred from UnbiasedTrading blog.

I don't understand the comment about hedge fund and managed accounts. I don't see that anywhere. I'm retiring this week and would like information.

How do I find this? Do I subscribe to something?

Dave

Anonymous said...

Dave -

I had the same question several months ago. You have to send Allan a private email to get information on that, he used to have his email up on the Profile page:

apharris@mac.com

- Greg K.

Anonymous said...

Greg,

Thanx.

Dave