Friday, July 31, 2009

SRSR update

I have recieved several requests for my take on SRSR in light of it's dramatic reversal in the past few days. For whatever it is worth, here it goes:


SRSR
has fallen to about the price it was when I first mentioned the stock on July 1st. The catalyst for the recent volatility was the issuance of the National Instrument 43-101 Report calculating and analyzing certain company resources.

I have read enough of the report to confirm the story, turning this pick into the proverbial "story stock." As such, I typically loosen my TA rules in deference to stellar risk:reward parameters. In summary, the next 5-7 years should see a maturation of resource development activities generating a significant appreciation of market capitalization. Estimates within this time period range from 50c to $2.00. Buying SRSR under 10c with a 50% stop provides a reasonable approach to realization significant gains, 5-10X returns over the short-term and significantly higher returns longer term.

This kind of speculation is inherently full of risk and is not for everyone. My own basis in this stock is 2.8c so prices are a long, long way from my stop (which is now up at 5.6c for a little over a double if hit). In other words, don't base your analysis on what I do, unless your basis is close to mine.


A

13 comments:

PENN STATE Eric said...

I don't usually like to question non-topic stocks but how does BEHL look to you? I've already realized pretty significant gains and the principal of their Bio-Reactor and successes so far have this one on the move - couple the technology they provide with Exxons $600 million committment into bio-fuels and this has some real upside potential. 6 days straight gains, 20% here, 40% there, any given day...

Me likes. You?

Anonymous said...

LOL!!!

ROB G said...

ALLAN
WHEN DO YOU THINK NNVC WILL BE ABLE TO MOVE TO A BETTER EXCHANGE?

ROB G.

Anonymous said...

ROB G., If, or when they sign a deal and stay above $3-5.

PENN STATE Eric said...

Exchanges are based on specific criteria. Some exchanges couple volume with price, some are heavily price drive, others are "invite only" indexes - think NASDAQ. NYSE for example wants a stock to maintain a min $1 value along with a certain volume - neither of which NNVC meets.

Anonymous said...

Allan,

is SRSR the same stock that traded as high as $380 over the last few years?

Anonymous said...

"is SRSR the same stock that traded as high as $380 over the last few years?"

no, NNVC traded as high as $3.80 (did you leave out a decimal point?)

CM

Mike said...

>Looks like you suggested INO a day late and lots of $ short...down what 40-50% in 2 hours?

>Guess charts don't always work

Worked today....+42%

-Mike

Anonymous said...

Seems like we should all blame Allan for all our problems tonight?

Anonymous said...

Allen, thanks for what you do, I've been learning a lot. What is your take on CEP? Quite a drop since you talked about it. Thanks!

Anonymous said...

Allan, what's your latest take on SRSR? It seems the stock found a bottom and the story only gets better and better. The recent news displayed a hint of a business plan and it appears they are looking towards a partnership in either China or India.

Allan said...

I see that someone on the iHub board has a problem with my commenting on SRSR. I guess that's his problem.

When it comes to these speculative penny mining stocks, it's management, management, management. In the case of SRSR, it's probably going to run again, at least testing the 20c level from 2009. When? That's almost impossible to determine, but suffice to say its coming, probably sooner then later.

A

Anonymous said...

Allan I appreciate your input on SRSR as well as others on the ihub SRSR board. I apologize for on behalf of the board, and you are more than welcome to comment on SRSR. Your expertise is well respected. I look forward to good days to come with SRSR. I have been holding since Nov 2007. I have much faith in Scott Keevil. Management is the reason I entered this stock. Well, that and having a world class niobium mine. :)