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R, Romarco update and ZJG

Hamilton

R feb 2014 lR feb 18 2014 s

See also previous blogs. From the big picture it is clear that this stock could easily go higher than the $2.80 that it reached three years and a bit (not on the lower chart) ago. There is no prospecting or any of that kind of uncertainty attached to this stock, just the permits and the improved technologies that allow more of the precious metal to be leached out of the tailings. Our best guess here is that a wave 2 (A-B-C or A-B-C X A-B-C) was completed either in July last year or more recently in Dec. of this year. What stands out is a fairly clear triangle (always a wave 4 or B). The stock should normally trade back to the highest point in the triangle ($1.40) as a minimum. The gap recently suggest a wave 3 of minor 1 is in progress. It should complete near the $1 mark, then fall back a bit and then continue up. This may even happen a little sooner as the stock is a bit overbought. The ZJG (BMO Junior golds) more or less confirms the idea of of a large A-B-C down, from $25 to $5.76, see below;

ZJG feb 2014

Ready to break out?

R, Romarco Minerals update

Hamilton

R jul 2012

We have been dead wrong on Romarco Minerals. It is a little late, once you get to 50 cents there is not that much room left after all, but with the benefit of hindsight it now looks like the count should have been a double zig-zag, a-b-c X a-b-c. This is a complete correction which 5-waves down never is. This is very much a binary situation, they either get the needed approvals from US Army Corps’ by way of an Environmental Impact Statement or they don’t. The expectation has always been that they will and if that happens the stock should shoot up. Unfortunately it will take time as the decision is not expected before Aug 16, 2013.

R, Ryder Systems Inc.

Hamilton

r june 2012r june 2012 s

You may want to hold off for a moment to avail yourself of this buying opportunity. The stock has a very clear wedge with all the bells and whistles that has its origin at around $30. Typically such wedges are retraced right down to their base so today’s low of about $35 is still too high.

Looking at the bigger chart, the forth wave of previous degree is at around $17, which is about right for the large A-B-C that is unfolding from the top. However , before we get there there is the $25 level where all lows over the past 30 years connect. $30 may indeed be a good buy for a trade as there the latest two down legs are about equal.

R, Romarco update

Hamilton

R l nov 2011R s nov 2011

Sometimes things just do not do what you expect. Romarco is a good example. I did not expect it to trade much  below about $1.50 (see previous blog) and here we are at around 94 cents having been even lower.

With the benefit of hindsight I now assume that the stock did not do a simple wave 2 correction as an a-b-c, but did a triple a-b-c, that is a structure that follows the basic  a-b-c X a-b-c Y a-b-c pattern. You never get more than three so if this assumption is correct you cannot go much lower. Furthermore the stock has lost 2/3 of its value, roughly, which just happens to be a nice Fibo ratio.

The company recently added almost 95 mln. to it’s cash reserves and at the present low burn rate could continue operations for many years to come. The waiting is on an environmental report by the US Corps of Engineers which should take slightly less than another year. After that things should become very profitable and there is no political risk as this mine operates in NC, USA. Management is also good looking which is seldom the case with miners.