A Tale Of Two Companies

Sep 22nd, 2009 – Comment

Hi Lou, What is your outlook for TWD and RMK? Both seem to have much going for them. Very many thanks, Eric Hi Eric, Lets go through the process of measuring and weighing the prospects and seeing what these two stocks have to offer. When I am looking at a stock, even before finding out […]


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rox

Hi Lou,

What is your outlook for TWD and RMK? Both seem to have much going for them.

Very many thanks,
Eric

Hi Eric,

Lets go through the process of measuring and weighing the prospects and seeing what these two stocks have to offer.

When I am looking at a stock, even before finding out what business that they are in and the back story I like to determine direction and liquidity.

twd

Trade Winds Ventures Inc. ( TWD TSXV) has had a good bounce off the lows and seems to be forming a pennant pattern which suggest a continuation of the uptrend. Average daily volume for TWD over the last three months is 337,340 shares a day. Yesterday they traded 582,000 which suggests that investors are showing interest in the stock. But keep in mind that for an $0.08 stock only $45,000 traded yesterday.

rmk1

Roxmark Mines Ltd. ( RMK TSXV) is showing a bold V shaped pattern which is considered bullish. Average daily volume is 529,152 shares a day over the last three months. Yesterday it traded 1.15M shares for a total value of $264,000.

The research I conducted on TWD tells the story of a junior exploration company that is currently consolidating opportunities around the their Detour Lake property in Ontario . But there isn’t a lot of drilling going on which means that the news stream is thin. When you are a junior mining company the value of the stock moves with new information based on activity.

While it is important to establish a solid land position and working agreements with other companies that have interest in a district, that type of news only goes so far. I would say until there is a new drilling program in the works it would be best to keep TWD on your watch list but don’t chase it at this point.

Roxmark Mines Ltd. ( RMK TSXV) is developing gold and molybdenum projects in the Geraldton- Beardmore Gold Camp of Ontario. I have had occasion to visit Geraldton, Ontario on business and would like nothing more than to see that community benefit from lots of new mining activity.

When I compare the two companies the dividing line is activity. RMK is drilling and prospecting and working towards reopening a mine. When you look at the news stream for RMK in comparison to TWD its clear that they are at different stages in their development cycles.

rmk2

The six month chart shows a nice spike last week on drill results reported on the Hardrock property where RMK has a 30% interest. The stock has pulled back from the spike high and looks like it may test support at $0.20. Roxmark began a drilling program at its Northern Empire Mine in August so expect more news in the coming months.

Whenever you speculate in junior mining stocks make it a practice to grab profits when they are available because mother nature can be cruel!

MAKE IT A BIG WEEK AND HAPPY CAPITALISM!

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