Portfolio Update – Week ending 22nd May, 2015

Hey guys,

I’ve decided to change the format a little bit and Instead of updating the “My Portfolio” page every week, I’m going to start writing a weekly post. I’ll put a link up to the latest weekly update from the portfolio page, so check there for a link to the latest update.

Summary

This week was a real mixed bag for me. Some of my bigger holdings saw losses whilst some of my smaller holdings had some decent gains. Overall was a bit of a downer week and my holdings were undoubtedly affected by some “sell in May” mentality.

The biggest news is probably that I cut 2 under performing mid term trades – MZI and FFGO to free up capital to acquire two new companies, one I’ve been looking to buy for a long time – RVR, and EDE which presented itself as a good short term trade.

More on these two later in the post.

AJX

My biggest holding – AJX, has had a terrible week and is now testing the last ditch line of resistance in the mid 50 cent range. A bit of a tail on Fridays candle suggests a small degree of short term buying support but I’m not liking the chart one bit.

I sold my trading parcel long ago but still have a substantial long term holding. I believe the fundamentals are sound and I would consider topping up with more should the share price drop into the 40 cent range.

AJX Candle stick chart

Daily candle stick chart of AJX as at 22nd May 2015

CKK

CKK is simmering away and I’m very bullish on for the next couple of months – they announced their pilot plant construction is now complete and I’m expecting an announcement very soon regarding a joint venture to test frack a well using their propant. If the JV is with a big name US oil and gas outfit – watch out as I strongly believe we’ll see one of the runs of the year from CKK. With EAS on board, I’m highly hopeful.

AZK

AZK had a bit of a basing week and looks like it’s trying to put in a low of sorts. Turns out the decision to sell the last of my trading parcel at 29 cents was a good one. I considered topping up in the upper teens this week but didn’t have the funds. I’m expecting a decent bounce and break of the down trend sometime next week, likely to the mid 20’s and possibly to the low 30 cent region.

Conformation of a trend change will be a break of the down trend on volume and will be strengthened by a cross of twiggs money flow above the 0% line.

AZK candle stick chart

Daily candle stick chart of AZK as at 22nd June 2015

MAT

MAT had a reasonably disappointing week as it announced it didn’t really find anything from its first up hole at Symons Hill. The share price dropped a bit, but nothing like that seen by other Fraser Range dusters like WIN and BOA recently. I owe this to the fact that a) we still have another hole which is currently being drilled and b) MAT has plenty of other quality irons in the fire. I will be holding until results from the second hole are released at least, which are likely to be in a couple of weeks.

CL8

CL8 had a disappointing week and I am glad I sold half my holding near the peak. We’ve seen a low volume retrace and what looked to be a pennant formation forming however it now looks to be breaking lower from that formation. I’m still well up, but the chart looks weak at the moment, so I may consider selling next week.

CL8 Candlestick Chart 22-05-15

Daily candlestick chart for CL8 as at 22nd May, 2015

CYY

CYY had a very good week and rose as much as 120% compared to its close last week. It finally came out with its credit raising terms which are very favorable. No volume yet but looks like some interest is starting to return. When the market wakes up to the potential of its Caribou Dome project this could re-rate in a big way.

Adding to my bullishness is the fact that the speculative mining sector seems to be showing signs of awakening from it’s slumber. Case and point are CAV and VAR which both ran 100’s of percent this week on reasonably manufactured announcements. CYY are sampling and drilling starting next month and significant hits could really cause a stir. One to keep a close eye on.

DUO

No change – still well and truly retaining its dog status. Will stay the same until it sorts its captial structure out and acquires a decent project. Only continuing to hold because I screwed up and didn’t have a stop in place and now it’s not worth selling.

Last Weeks New Additions: TTE and AQD

Both have been fairly quiet this week and are basically at break even. AQD looks the better of the two at the moment. It tested the 25 cents resistance level this week and looks like it may slide a little next week, looking for a bounce off the short term rising trend line.

AQD Candlestick chart 22-05-15

Weekly candlestick chart of AQD as at 22nd May, 2015

TTE has kept to it’s short term rising trend line but negative divergence and a cross below zero on the twiggs money flow warns of short term selling pressure. I may look at selling TTE next week should it break below the short term rising trend line.

TTE Candlestick Chart

Daily TTE Candlestick Chart as at 22nd May 2015

Two New Additions to the Portfolio: RVR and EDE

I’ve been looking to buy into RVR for some time now. It’s a great company in a great space – Zinc, which looks like the absolute pick of a potentially rebounding commodities sector. Zinc storage levels have been dropping for the last two and a half years and the zinc deficit is only forecast to get worse with mine closures and and an absence of new deposits coming online this year.

The fact VAR ran 100’s of percent this week based on decent but cherry picked assay results from  historic boreholes suggests the market is starting to get excited about zinc and I think RVR is going to do very well.

Thanks to reading the chart tea leaves, I managed to pick up RVR at 18.5 cents – the low of the week so I’m already up a cool 8% and looking for much more over the coming months. RVR will be a long term hold for me.

RVR Candle Stick Chart

Daily candle stick chart for RVR as at 22nd May, 2015

I brought EDE early on Friday as a short term trade. The chart had been showing a build up in momentum during the previous weeks (increasing volume), before breaking out on huge volume on Friday. The trade has been a good one and so far I’m up 33% from a single days holding. I’m expecting further action on Monday but I will likely sell out at any sign of weakness.

As a side note, I’m also watching TAS which owns nearly 50% of EDE. EDE has a market capitalization of $21 million at 2.3 cents, meaning TAS should be worth over $10 million based on its EDE holding alone. TAS currently has a market capitalization of $7 million, therefore I will be watching for it to “catch up” to fair value next week.

EDE candle stick chart

Weekly candle stick chart for EDE as at 22nd of May, 2015

End of Week Portfolio Summary 22/05/15

Stock Average Buy In ($) Weekly Close ($) Last Weeks Close ($) Weekly Change Overall Change (%)
AJX 0.473 0.580 0.630 -8% +22
AQD 0.022 0.023 0.021 +10% +4
AZK 0.053 0.215 0.220 -2% +304
CKK 0.006 0.008 0.008 0% +33
CL8O 0.011 0.020 0.025 -20% +80
CYY 0.028 0.020 0.016 +25% -29
DUO 0.005 0.001 0.001 0% -80
EDE 0.017 0.023 +34
MAT 0.166 0.250 0.300 -17% +51
RVR 0.186 0.200 +8
TTE 0.037 0.036 0.036 0% -3

 

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