The anticipated triangle actually happened, even if it is not particularly clean. We should see a new low over the next few days and that might complete wave 1 down of 3 of C. The rebound should be good for about 300 points depending on how low it actually goes. Why is anyone’s guess, perhaps more rumblings about QE3.
See also the Jan. 2012 entry.
At about $50 the C and A legs of the rebound are just about equal. Also the “gap” is pretty well in the middle. We would sell now on any bounce.
The above is the blog from Oct. last year; here is what actually happened;
So it went to 24.5, not 24, close enough. Now what? Wave 5! This could take the stock down to $16.85 as previously predicted , or even lower. WTI trades at a discount to Brent of roughly $30 or so, but so does Canadian oil relative to WTI, by approximately the same amount which would put the price at around $75. Break even is at around $ 65/$ 85 depending who you believe. Costs are rising rather dramatically so the earlier mentioned possibility of having “stranded costs” is not pure phantasy but is becoming increasingly real. With Alberta politics shifting to the right it might get harder to find a compromise on things like pipelines etc.
CuOro Resources mines, that is, is looking for, copper, CU on the periodic table of the elements and gold or Oro in Spanish, hence the name CuOro I assume. It is relatively new even if management is not. It trades on Vancouver where it has traded on and off for the last few years. It also trades in Germany. We have no idea how good these people are or how promising this Columbian parcel of land will prove to be.
What is relatively clear is that the incentive for management will soon be sharply reduced should the stock drop below $1 or so. There are 9.5 mln options and warrants held by various parties, most being management, that all but 1.2 mln have strike prices of $1 or higher and mature, for the most part, in about a year. This is the “dig or die” phase the only question remaining is whether or not you want that “other-people’s-money” to include some of yours. Presently the company has about $18 mln. in cash which it is burning at a rate of about $10 mln. per year. HudBay is a partner to the tune of about 14% but is also the beneficiary of a non-dilution agreement.
At today’s low of $1 the stock is down 62% from the recent high of $2.60.