POG

The Iraqi sectarian split is nothing really; more like tribal killings by gangsters pretending to be crusaders.   Oil price might be affected but it should only be temporary.  How far can it spread?

Hence, I don't understand why the POG is rising.  Many things are beyond my comprehension!

BDR

When you have a pure exploration stock telling you how much mineral(s) potentially there is(are) in its tenement, you will only believe it when the drilling is done.

What amazes me is when the drilling is done and on-going and the company has been dishing out good announcements, the share price actually falls soon after a good hit in the ground.  I sent a note to Robin Bromby at The Australian to see if he can shed any light.  He replied that it provides good opportunity for buying which I fully concurred!

I topped up BDR at 66.2c to see it slipping to below 60c.  It provided me with another opportunity to top up so I did at 58.5.  Today, with POG recovering (could be a temporary phenomenon), the share price this AM is 66.5c.  Of course, retrospectively, I wish I bought more when it fell below 60c...

AQO

Only when there is a takeover activity, especially when 2 parties are outbidding each other, then you know the true value of a stock.

So this AM, there is more bidding for AQO and it is nearing 100% profit for me.  Very happy, Jane!  And best of all, I did top up when the market was dumping it... even when The Australian editor wrote a good passage about it.

Where are those smart analysts for the price of uranium?

Before 2013, quite a few analysts predicted that the price of uranium would hit the roof when the Russian contract to supply the USA with cheap uranium (from decommissioned nuclear warheads) would terminate in 2013.

This is 2014.  Starting a uranium mine is not cheap.  There are many hurdles to clear, too.  Yet, uranium producers have been sold down, making losses and mothballing some operations.  Of course, they didn't foresee Fukushima.  But that does not explain the fall in uranium price completely.

So where are these analysts?  None have acknowledged their error!

AQO

There is going to be more activity in the gas/oil sector in Australia.  Last week, Drillsearch lopped a friendly bid for AQO.  Of course, the share price went up. This morning, another company is interested in AQO, so the price had another lift.

It always takes a takeover for people to realize how cheap Australia is going for!

Merger and acquisition activity has been predicted to increase  in Australia; it is not economical to have a small company, especially those with no cash but good tenement.  Presumably AQO is one...

What is potentially and what is actually in the ground...

Yesterday is now one of the rare days where I score a huge alpha.  It is a lesson in investing.  When exploring company using scanning device to tell where the deposit is and what potentially is in the ground, it is better than buying a speculative mining stock with nothing to show.  But when they drill and find something substantial, then it is no longer speculative if there are enough drilling holes to give an estimate of the size of the deposit.  The next phase is to define what is extractable and how much profit it can generate; that is a feasibility study.  The hardest phase at the moment is getting a loan to build the mine.  The early you move into a stock, the cheapest it is...  but this is not necessary so.  When there is so much speculation, it could be overpriced.  This is where I have made big losses.

The lesson is when a stock has confirmed that it has FOUND what it was looking for, especially with good quality results, then unless the price of the mineral has plunged, it is worthy of investing when current shareholders are selling out.  Hence, over the last week, suddenly there is a run on AVB and TON, giving me huge alphas.  But there has a selling out of BDR.  Price of gold has fallen but it has not crumbled.  More gold is being bought than produced on an annual basis at the moment.

KAS has found tin in Morocco and Toyota has taken a stake to ensure it gets its tin in the near future.  While KAS continues to find more tin where it is prospecting, the share price also continues to fall.

So come Tuesday when I am not working, I will be looking for opportunities to top up these stocks which investors are selling out.  My prime investment strategy is still to look for blue chips with good income (ie, banks, banks and more banks...) and I have done well with the small top up on ANZ recently to take advantage of its dividend.

TON

I have never experienced this before.  All my TON shares are purchased at under 7c a share.  And the last lot was the cheapest at 5.6c and the first was the most expensive at 6.8c in May 2013.

I thought it was impressive for it to just 4c this AM but in fact, it shot up by 24.5c a share to a close of 42c.  And it isn't a small parcel but a continuous rise over the day.  Someone wants those shares desperately after it announced this AM a good drilling result with more than 300m of graphite found.

So no speeding ticket issued yet unless I missed it!

AVB TON

Something is going on here but the ASX has not yet issued speeding tickets to these stocks.  Both are running up with their share price.  No further announcement has been made by either recently other than those that should not affect the market price.  (Correction:  TON just made another great announcement!)

These 2 stocks epitomize what I like to buy the most.  Whenever it announces good drilling results, the market either ignores it or some idiots sell them down!  But I only very, very rarely get to buy at the trough so it usually dips a bit more before it turns.

So it is either latecomers or a takeover in the offing... but whenever share price jumps, it can also crash.

AVB

On 17/2/14, it announced an "exceptional intercept" but no one was interested.  Because it was so good, when I have a bit more spare cash, I topped up even more.  And then it announced another "exceptional intercept" but still people are not interested in this stock.

Then it started to move up in May...

Today, it had a jump but I have no idea why...  It is very nice to be correct with my strategy.

TON

It was really puzzling when TON announced a great graphite find but the market chose to mark it down.  But I love that!  I topped up.  Of course, it went further down.  However, while I missed the extreme trough, I have made a great profit since.

Initially, 'experts' think there will be a surplus of graphite explorers in the market.  However, its neighbour has already jumped by leaps and bounds.  And with battery technology imposing big demand on graphite, the attitude is changing.  Hence, another big jump after a presentation by TON in late May....