Year: 2015

ELD, Eldorado update

Hamilton

eld june 12 2015 beld 12 june 2015 s

See also our Feb. 2015 previous blog. The $4 target has always been in the back of our mind. It fits well with an a-b-c correction from the top with c equal to a. Also on a smaller scale there was a multi-month triangle starting in Feb. of this year. This one has to be a 4th wave of a 5th wave of C in a slightly different count. The triangle measures a little less than $2 which places the ultimate low at about $4.50. By that time the RSI should be in clear oversold territory.

The stock has traded in an idiosyncratic way, certainly a bit off from what other gold stocks have done. This may be due to political troubles with their Greek operations plus , of course, the specific challenges of operating in Greece at the present time. This gives the stock a binary character which could change any moment. An initial target would be at $7 (top of triangle) and then $10 (4th wave). Lots of upside with relatively little further downside!

BBT, Branch Banking & Trust

Hamilton

bbt june 9 2015 bbbt june 9 2015 s

Never heard of this bank? Well after B of A it is the largest bank in the Carolinas and B of A really belongs to California, just came to the Carolinas as a corporate fluke.

In any event the charts are pretty clear so we will let that speak for itself. Just in case you do own it, we strongly suggest you de-own it immediately and certainly between now and when it double tops, if it ever does.

WFC, Wells Fargo update

Hamilton

wfc jun 8 2015

Back on the 5th of Dec. last year we suggested to sell this stock if not immediately then at the $58 price target that I thought was the max. leeway this stock had given the upper trend-line. The high , so far was $57.22 and neither the RSI or MACD appear to confirm this. The wedge with it’s overlaps is clear as a bell. First target, as always, is at the base of the wedge at just under $46, or down roughly 20%. It took  about six months to add the last $3 but it may only take 2 months to subtract the next $11. Time to get out.

JMAT, Johnson Matthey (trades in London, in pence)

Hamilton

jmat june 8 2015 linjmat june 8 2015 log

You have to read the name twice to get it right. These guys have been around for over two centuries. I know them from the time I did the funding for Bank of America in Amsterdam, around 1975. At the time they were , among many other things, money brokers. They are best known for there precious metals refining and assaying business. In 1852 the company was appointed as the Official Refiner and Assayer to the Bank of England. That is the equivalent of being invited to tea by the Queen, only more durable. It is a very prestigious company, comparable to the likes of Barings that started with that other precious commodity, wool. Both met, or almost met, their end as a result of reckless and speculative financing activities. Both were sold for one pound, JMAT in 1984 by the Bank of England that could not bear the thought that one of its few chosen banks might go under and display all the dirty laundry. Since then it has all been uphill.

We show both the linear  and the log-scale charts. Some of the performance may be due to the company’s involvement with the auto/truck industry. It makes all kinds of catalytic convertors  which is a logical extension of the platinum/palladium refining biz. The count is not perfectly clear but the channel is. The stock has now been creeping along the upper trend line for some time. From the recent lows it has more than tripled and consequently the risks are exceptionally high. Time to exit.