Wednesday, December 12, 2012

BUY CGR - $0.57

I was fortunate to scrape together a few new coins and get them into my trading account yesterday so that I was able to make this purchase of another 10K shares of Claude Resources Inc. (CGR) ahead of the FED announcement this morning at 57 cents.

I would have been very happy to buy something else as I already own a whole lot of this stock. But what to buy? After searching through the 200 or so miners that I keep an eye on, this one made the most sense (for me).

I like that CGR has only 6% debt and trades at 50 cents on the buck (.5X tangible book value). I like that it has shown a succession of profitable earnings years and that the 2013 earnings are projected to more than triple (even with gold priced to go nowhere). I like that it trades on the AMEX and is not a pink sheet OTC. I like that it has been consolidating at this price level for the past 6 months and has made a triple bottom. And finally, of all the miners it is one of the very few with a True Strength Index (TSI) trend line break BUY signal.

My TSI Trading Record has been updated.


  1. Hi John. I'm not sure how you connect the tops on the TSI graph, but it seems to me that there was a similar signal back in early November near the 70 cents level. However, this time, according to what I look at, there appear to be several positive divergences along with a few favorable oscillators. I wonder if the steady downtrend for over two months is saying something that is not evident in the fundamentals, or maybe the insiders are pushing the price down so they can buy more. Possibly you've found the bottom, finally. Hope so.

  2. Hi Loren - I am just beginning to develop a new understanding of using gold's cycles
    to help time buy/sell decisions, in addition to using the TSI. A post or two back I
    referenced the 5 daily cycles of the last intermediate cycle of gold......and questioned
    myself aloud as to what was I possibly thinking taking long positions in the 4th or 5th
    daily cycle last fall? And I admitted, I *wasn't thinking*.

    But I think we are today at an entirely different juncture, this being the early days of
    the second daily cycle of this C-wave's second intermediate cycle. We should now expect
    this daily cycle to be right translated and at the minimum, a third daily cycle to follow
    that is also right translated. With that in perspective, I think this is a great time to buy
    and as I expect that gold will retest $1900 in a couple months - that should be about when this
    intermediate cycle should top. CGR - in *that* environment - could well reach higher than
    $2.00 - the price it achieved when gold was previously $1900+.

    I have read all the company filings and I only see good things - increased resources, lower
    cash cost to produce an ounce of gold, increased production capacity and so on. So if all the
    sellers know something I don't, well, I guess I am toast. Anyway, thanks Loren for wishing me luck!

  3. Hello John!

    I just discovered your blog a few days ago and you can now consider me a daily follower!

    I actually enjoy reading all your detailed thoughts and opinions!