Mar

Research Lab Blog – Investing Systems Market Toolbox Member Update

In addition to our normal Friday morning show, we will discuss a few other stocks on the Live Broadcast in the Research Lab tomorrow morning.

Here are the charts that we will cover.

First, CLNE, which was an AWESOME pick today in the Momentum scan, Alpha scan, and Breakout scan. In other words it was a Focus pick.

We marked up the 5-minute chart to indicate multiple entries based on our intra-day entry strategy. HUGE WINNER for our members today and if you held any overnight, be sure to lock-in more profits on any gap-up in the morning. In other words, scale the heck out ASAP! Keep a few “low-cost” shares if you must…

(Note the last entry is generally not recommended, indicated in yellow, however in some cases, it will work.) We will explain this to you on the show.

The next stock we will discuss is Goldcorp GG

Goldcorp today reported gold production of 601,300 ounces at a total cash cost(1) of $289 per ounce for the quarter ended December 31, 2009. Fourth quarter adjusted net earnings(2) amounted to $182.7 million, or $0.25 per share, and operating cash flows before working capital changes(3) for the fourth quarter was $307.6 million or $0.42 per share. For the year, Goldcorp produced 2.42 million ounces of gold at a total cash cost of $295 per ounce, generating adjusted net earnings of $588.2 million or $0.80 per share and operating cash flows before working capital changes of $1.2 billion or $1.61 per share.
Fourth Quarter 2009 Highlights:
- Revenues increased by 28% over the 2008 fourth quarter, to $778.3 million on gold sales of 573,100 ounces.
- Operating cash flows before working capital changes totaled $307.6 million, or $0.42 per share.
- Total cash costs were $289 per ounce on a by-product basis, and $422 per ounce on a co-product basis.
- Dividends of $33.0 million were paid.

We see a potential opportunity on the chart, but it comes with a caveat. This is not a day trade or necessarily even a swing trade. This is for the patient trader that sees the potential opportunity for a good entry point to establish a position in one of the top-tier gold producers. There are actually several ways we see to trade this, depending on your timeframe. Each item on the chart has it’s own significance.

By the way, IF the trendline breaks and gold stocks roll over, this could just as well be a good short down to 36 or lower. We will discuss this in detail tomorrow.

Next is a crazy speculation that is off the scale when it comes to risk. This is a mega-crapshoot, spin of the wheel, roll of the dice trade in a thin penny stock and quite frankly no one has any business even considering throwing a dime of hard-earned money at something so wildly speculative.

But we do want to demonstrate the symmetry of the chart and we do like to have fun sometimes…so we present:

Let’s zoom in…

Pretend the average daily volume wasn’t 360k and the stock wasn’t a buck thirty’. Notice again the symmetry on the chart. Heck, if it can break up through the green line it might have a shot at a buck fifty’.

We have a couple idea on how one might play something like this, you don’t want to miss it…

As you know, I can talk a lot faster then I type so the good stuff is reserved for the Research Lab Live Broadcast in the Members Area of the Market Toolbox.

See you there in the morning at the market open.

We will be analyzing tomorrow’s stock picks in real-time, as well as providing our witty and irreverent commentary.