A Virtual Long Call Option on Gold with TGDTGD came up in my Deep Value screeners as one of the highest ranked companies in the screener, so I took a look to see what they were about. Timmins Gold Corp is obviously a gold mining company, so right away I knew their success or demise was closely tied to whatever the price of gold did. Before going into the fundamentals, let's take a look at the charts.
Since late January of this year, TGD has been consolidating nicely around the 0.35 - 0.42 price levels. I liked the length of the consolidation, and the overall chart seemed pretty well set up for a high run breakout if the price action dictated. Liking the chart, I headed over to check out the fundamentals of this company to see if there could be any substance to the breakout, or if the breakout would even be justified.
TGD is trading at 3.77 times earnings, 0.94 times book value, and is trading 3.59 times its free cash flow. Not bad ratios, and it clearly makes this a deep value play within the gold sector. Taking a look at some of the return percentages for the company I was pleased to find that TGD had an Operating Margin of 30%, ROA of 20%, ROC of 25%, and a 21% ROI. Pretty impressive. Next, I took a look at their cash positions, because I love investing in companies with a ton of cash (RGR is a perfect example of this idea of tons of cash, no debt, and it paying off). TGD's Current Ratio is 3.01, more than enough cash to cover its debts.
Taking everything into consideration, this is virtually a long call option on the price of gold without the theta (time decay). I am looking for it to break that consolidation pattern, perhaps the 0.46 price level, at which I would go long, and place my stop right below the consolidation pattern at 0.30. Once again, I want to stress that although the company appears to be solid fundamentally, they are very correlated to whatever the price of Gold does. If gold goes south, TGD will most likely follow. However, if you're long term bullish on the price of gold like I am, this could be a way to expose yourself to gold without having to invest purely in gold or gold futures.
As always, critiquing and disagreements on my theses are encouraged.
All the best,
RC
Smallcap
Long idea PARRYSUGARI will buy this above 64 with sl of 60 with a potential target of 94-130.After decline for months, stock has given breakout, pulled back and then given a candlestick buy signal
#PSTB TRIANGULAR BREAKOUT TRIANGULAR BREAKOUT. BULLS AND THE BEARS ARE STUCK LOOKING TO LONG THE BREAKOUT HERE.
SMALL CAP STOCK. BREAKOUT IS LOOKING BULLISH BUT IF IT DOES BREAK DOWNWARDS CAN ALWAYS SHORT
IWM could not renew 13-year uptrend and broke below 7-year trendSmall Caps (IWM) - It seems IWM is having a hard time making it back above the black line (13-year trendline) this week and closed right below the purple line (since-2009 trendline) today. Note that in early January IWM broke below the purple line for the first time and dropped a lot.
ABCD setup cont pattern on ATVSimply a very clean ABCD pattern forming, get long in C or above the neckline at D.
ICLD Revenue Hype playFormer runner after the CEO announced that this year will be a good year of revenue and reform. He also mentioned, how ICLD has reduced debt into the close of 2015. The CEO here is hyping the shareholders after this junk stock has been crushed quarter after quarter. This can spike again and there is dip buying volume as i point out. TradingView doesn't receive small cap stock quotes so the chart is choppy, use your brokerage platform.
Long at .70 with about a 2 cent mental stop loss. Now my target here is aimed for .84 cents which is where all the shorts were entered, so I'm assuming either one of two things will happen. Either we lose against the resistance in the mid .80s or we overcome it and we see a short squeeze to the next exit: 1.00. Swing trading this for hopefully at most two-3 days. Not going in with a large position because im trying to capture a volatile and large range move. Good risk reward and good profit opportunity here.
HART: Going back up so soon?Harvard Apparatus Regentive Technology is a bioscience company working on more natural heart valve replacements and other pretty cool biotech stuff. However my interest is because the way they are ramping up for another go after moving from $0.60 to $3.25 in less than a month. This is shaping up to be your typical "head and shoulders" scenario. HART's 1day MACD only crossed into negative on 12/7, giving the appearance that they are ready to fall back down. However it bounced at the 50% mark ($1.90) and StochRSI is already showing a cross upward.
What makes it really interesting is if you check out the 4hour or 2 hour you can see the MACD already coming back to positive. (see bottom image)
The markets are rough given the fear of a rate hike along with some 'cooling off' given the build up of overheating from past 2-3 years. However, at such a low price HART could be a worthwhile option play at a $5 strike a few months out. The option route would allow a relatively low bet--I need to look at the chain but I'm guessing as little as $20 a contract---with a short-term opportunity if the 2hr/4hr MACDs stay positive and bring the 1 day up; and a medium term opportunity if the indicators and the stock can't handle the bear market---HART has enough room and volatility to pay off later as well.
Even at $2.35 a share it's a good, cheap play.
ACRX- 9 on the horizonContinuing coverage of ACRX this week, we saw ACRX pullback with the market as a whole early this morning. ACRX broke right through support at the .236 retrace, but found support at yesterdays congested zone at the .382 retrace. Uptrend remains in place. $9 remains 1st target. Stop now at 7.70.
