Sunday, May 24, 2009

Platinum






Let's start off with a Trade Triangle chart on Platinum. As you can see, a clear uptrend with both Monthly and Weekly Up Triangles:



The best looking Platinum mining stock charts are Stillwater Mining (North America) and Impala Platinum (Africa).


Impala Platinum


This is the world's second largest producer of Platinum, but, it's subject to geopolitical crap, it's traded here on the pink sheets and there's a currency component that is hard to integrate into picture going forward. Chart is there, but a lot of question markets thereafter. If you are comfortable with the contingencies, go for it.


Stillwater Mining


SWC was a $20 stock 18 months ago, now trading for $6 and change. On the above Weekly chart, it is coming out of a nice rounded bottom formation.



The above 120 minute chart is showing a cycle of rally-plateau-rally-plateau. The Blue Wave models says just ignore everything but the trend, defined as blue bars and up on both the Weekly and 120 minute charts.

You don't have to buy into conspiracies or hot tips to go long here. The trend on the Weekly chart is clearly rising and the shorter-term chart and triangle analysis confirms.

You came here to make money trading and this is how its done. You find something going up and you buy it. You find something going down and you short it. Let your profits run, cut your losses short. Take you ideas wherever you can find them.

A

6 comments:

Anonymous said...

Hi Allan
If a perfect storm occures soon, buying any metals may be ill advised.

Go Wings!!!!!!

Mike said...

Glad to see your Wings bury Chicago today.

-Mike

Anonymous said...

Thanks Allan! Much more informative than the Priory of B.S.!

TD said...

Look at Lonmin which is the rump metals part of Tiny Rowland's former empire. Do see Wickipedia or just a good web crawler search about Tiny Rowland and how the British royal family ripped his guts out for running aground the "sanctions" against SA and Zimbabwe so they could take over his life's work. Look at SA and Zim now!

Your "Priory de Sion" folks were part of that ugly coup and are still running LNMIY, a very major platinum company.

The major reason for looking into LonMin is that it is in play,,,has been in play as a takeover condidate now that the "Priory" have ripped off as much as they could from its value without drawing terminal major attention. I'd expect Chinese or US or Russian bidders for LonMin in addition to its innate value.

Anonymous said...

Another topic - NNVC - What's with the stock dilution?

I've been buying NNVC on and off for quite a while, and even with the latest downturn I think it's still a potentially good long term investment. Or should I say "I thought it was .....".

Got a notice from NNVC that NNVC is issuing 20M shares of preferred stock. This amounts to about a 16% dilution, or reduction in value, of outstanding stock. Furthermore it's preferred, not common stock.

Since the majority of shares are owned a relatively few investors, they can do this without a vote.

Likewise they can do what they want with the stock. A worst case scenario is that they merely give it back to themselves, and then continue the dilution process in the future. Meaning they get a higher and higher percent ownership of the company.

A somewhat better case scenario is that they are looking either for an infusion of cash, and they are going to sell it on the open market (the stock price goes down); or to an already established investor (the preferred stock would be a more attractive offering). I say that this can be an OK scenario because sometimes a company needs an infusion of cash to get past a hurdle, and even though each current investor owns less of a percentage of the company, the net value of each share becomes greater simply because the company has now produced its product. Also the current major investors (and management) are equally hit by the dilution.

Another possibility is that they or they are looking to pick up a active partner, and issue them the stock (e.g. Pfizer wants to own some of them).

They are probably many other possibilities, but I'd just like to know what's happening and why now.

--VJ--

Anonymous said...

You should've put your post about SWC after the pull back to the 20 EMA. Dang it, I've been watching it waiting and you screwed me. Now I'l have to wait a few more days..perhaps even weeks before it gets back into the trough.