Year: 2013

SFF, Seafield Resources update

Hamilton

sff feb 8 2013 bsff feb 8 2013 s

As of Jan. 1 2013, the company reported cash on hand at 3mln. A month and a bit have passed and at their burn rate of about 8.mln a year, the cash should now be in the order of  2.25 mln. to 2.5 mln. As there are 191 mln shares outstanding (248 mln. fully diluted), the enterprise value based on the cash alone should be about 10+ cents which is where the stock trades. This implies that no value is put on the exploratory activities to date! Not a heart warming sign given very recent drilling results.

The EW take is that we are on this ski slope that can stop anywhere. The gyrations over the past few months suggest some form of triangle forming This is very tentative given the proximity already to zero. Taking the smallest possible degree for this triangle a price of about 6 cents would be indicated.

AOI, Africa Oil Corp. update

Hamilton

Then, about a month ago, and now charts as usual;

aoi.v jan 15 2013aoi feb 7 2013 b

and in detail we are now;

aoi feb 7 2013 s 

So we remain of the opinion that wave 4 of a 5-wave up sequence ended recently and therefore wave 5 should take us to new highs. We have not yet completed wave 1 of 5, it seems to need another leg up but this is somewhat tentative as it is possible to count the first up leg of 5 as complete. In any event we should go higher. A drop below $6.75 would cast some doubt on this interpretation. The target would be about $15 if the channel holds.

RUS, Russel Metals update

Hamilton

rus feb 2012rus feb 2013

Then – a year ago – and now charts. A year has gone by and the price is still the same at about $28 but the timing is off by a whole year. The error might be that the c part of the a-b-c B-wave traced out a time consuming wedge that has its base at $16, so that is where it should go in the first round and new lows in the second round. A sell by all means.