Stockhouse Ticker Trax
is published to subscribers every Monday (annual cost only $195
). We focus on best-in-class high growth
small companies trading on the TSX and TSX.V between 5 cents and $3 with a market cap below $300 million.
Equity Analyst Danny Deadlock has 30 years of experience speculating on Canadian penny stocks and targets capital gain opportunities and diversification in metals and minerals exploration, energy, and technology.
For the experienced investor, Ticker Trax provides an extra set of eyes and ears (idea generation) and for those learning to invest in micro cap stocks, we provide stock picks and market education.
; (1) new research (stock picks) weeks in advance of being featured on this weekend column (2) exclusive
access to our list of junior gold exploration companies (critical for peer valuation), (3) exclusive
access to our list of Cash Rich micro cap companies (our Virtual Vulture Fund) which contains 80 companies with almost $3 Billion.
Both tables are updated monthly.
A Very Rough Start to Q2 for the Penny Stocks
Higher quality companies rallied strong out of the December basement and this lasted until mid-March. That was followed by a two week period of consolidation but the past month has now seen most penny stocks (microcaps) fall back to early January levels.
So long as the blue chips remain stable, the small stocks should be comfortable at current levels as most investors are unwilling to sell down here. Unfortunately though, buyers have also stepped to the sideline pending strong news or improved sector strength. Few are willing to speculate blindly.
Gold's inability to hold $1300 has also pushed most gold stock speculators to the sideline.
QUICK UPDATE ON FOUR 2014 PICKS
A link to the latest free weekend report on each of these companies is provided for reference.
1) GeoMegA Resources Inc.
, Stock Forum
) (59 cents)
- weak like everything else but nothing fundamentally wrong. A delay in getting news out is “understandably” frustrating most retail investors. GMA is awaiting assays on the latest commercial rare earth separation testing and we should see news on this very shortly. This month should then be followed by the updated resource report (43-101) and the preliminary economic assessment (PEA) late May or early June. They may be targeting late May for the PEA as I know the CEO will be doing an investor tour in Europe late May (this should be with institutional or high net worth investors).
2) Moly Mines Ltd.
, Stock Forum
) (10 cents)
– year end financials were released this week and they confirm net cash near $70 million or 18 cents per share
. The paper cleaned up a bit on this news but now we continue to wait and see if they can put this money to good use in 2014 and rebuild shareholder value. This is a new 2014 speculation for Ticker Trax subscribers at prices ranging from 8 cents to 12 cents. April 25th
I also featured MOL in this weekend column at 8.5 cents.
3) EPM Mining Ventures Inc.
, Stock Forum
) (30 cents)
– I will post an update here in May explaining recent shortages and high prices in the Sulphate of Potash (SOP) market and what is fueling this. EPK owns a large and (potentially) very valuable fertilizer project in Utah that the market is ignoring because this is a little known company and a niche aspect of the global potash industry - yet the supply / demand fundamentals are very strong and growing.
4) Petrobank Energy and Resources Ltd.
, Stock Forum
) (49 cents)
– I will no longer be following Petrobank. The company was introduced to Ticker Trax subscribers this past winter in the low 0.30’s and also in this free weekend column January 3rd
at 36 cents. I was speculating on the large price discount to their $50 million cash (worth 54 cents per share at the time). With completion of their Touchstone merger the stock has now gained 35% in four months
. Lower than I was hoping but still good considering the state of this market. This is a good company but new investors will want to see how this merger plays out over the next couple quarters and what impact new taxation rates are having on cashflow in Trinidad & Tobago.
** TWITTER NOTE: I maintain a twitter page at - twitter.com/tsxalerts
Disclosure: Danny Deadlock owns 70,000 GMA / 150,000 EPK / 200,000 MOL