Technical Analysis of GCU's great looking CHARTTechnical analysis on a stock like GCU is, in my humble opinion-----
GARBAGE!!!
USELESS!!!
A COMPLETE WASTE OF TIME!!!
I believe it is only good for mid to large cap stocks with a long history.
Technical analysis really doesn't apply to exploration stocks like GCU.
What is important to keep your eye on, and stay focused on are,
in no particular order:
****the power of the drill----news releases and their timing!!
Follow their 'cadence"---Scout does a good job of it for us.
Timing of the releases can be affected by many things and their
pattern of the release can be severely affected.
In Canada WINTER drilling is the busy season---GCU's assaying
is done at RED LAKE. Lots of companies' cores are coming in daily,
and no doubt they are piling up & the assaying company(s) have an
ever expanding backlog. Basically, to be fair, the cores are assayed
on a first come, first served basis---BUT---I often wonder if politics
don't come to play---ie. company size, volume of business, customer history,
favours owed etc. come into play-----BUT---
All exploration companies want their cores done as quickly as possible.
So, besides that, is it possible to move up or jump to the top of the list?
Answer is: YES! Business is business. If you are an aggressive
exploration company, have the dough, and want to fast track your results,
one has only to pay more for a "rush order"----let's say be willing to pay
the assy co. double the going rate. For infill drilling--no big deal or rush.
BUT for aggressive stepout holes it is extremely important to get the
results QUICKLY. One reason is that these holes have a massive impact
on the share price---and another is that they are important for geologists
so they can plan or change the plan regarding more stepout holes!!!
Time and planning is money and the pressure mounts as the winter drilling season is
fast coming to an end---especially if there is an early spring.
So you never really know absolutely about the timing. Investors can get
surprised in regard to timing.
I also believe GCU is such---an agressive CO.---especially as things are
going so well. It makes sense that one would want the share price to get
higher----BEFORE you run out of dough and hence have to do, for instance, a further
private placement to continue, increase,& or fast track the development of
your property. For GCU it is cheaper and easier to drill in the winter, but
expenses mount---added drill rigs, bigger, rigs, barges, setting up for an
expanded Summer drill programme before the road melts, then helicopter
usage etc. etc. NOW I am NOT saying that GCU is running out of money
immediately----but because of the great results so far, I do believe GCU
is fast tracking their work at Springpole---I think Quinton wants to & that is
part of the reason he became a New director---hey as Tom C. says in his many
articles, he is in high demand & respected/wanted by many exploration firms.
More on the probable financing in a later article.
It should be pointed out that unexpected delays can happen--and did---remember
the unforseen technical problems at the assay company late last fall!
It is also important to extrapolate the official and regulated News Releases.
Firms like GCU especially must be very garded in what they say--ie.forward
looking statements etc----NR's are thus conservative in nature---remember
Sargeant Friday saying, "facts m'aam, just the facts!"
****Follow the insider trading---luckily here at this GCU board we have some one
that does an excellent job of it for all of us---many thanks!!!
Oh yeah, remember the guys selling so that they could buy/exercise their
warrants? That I believe was correct---but some one targeted the wrong
warrant issue---it was a much earlier one---the one at 29 cents or there
abouts. I won't go into the added tax implications involved---too complicated!
****Private Placements and WARRANT expiration dates (got a little ahead of myself)
This is extremely important--they come up from time to time (an unfortunate
necessity) The exercise dsoes put added money into the company coffers
though. But their expiry dates can creep up on you, and then, to some, for
no apparent reason at all, there is suddenly a ton of selling all at once, and
thus the stock goes down. Once again someone else, forget the name-sorry,
does an excellent job for us here at the board.
****ANALYST COVERAGE, Iniating Coverages, New Updates to coverages ETC.
These reports cost money and are intended for use of their subscribers and
paying clients. Trust me, there a lot more you haven't heard about---BUT---
a few people here again do an excellent job of getting them and sharing them
with the rest of us---this is also much appreciaqted---many, many thanks.
We can & do get them 'delayed'---be sure to checkout the printed issue date!
****Trading volume and "new brokerages" that start trading the stock. Watch out
for the "KW" symbols & the usual big suspects.
Remember that we aren't as advanced as the "big boys"---Many have trading programmes
that, for example, highlight trading volume unusual increases, as well as sudden price
increases/decreases, and all of a sudden action follows fast--seemingly for no reason to most.
Remember these firms have staffs of experts paid to sit watch and monitor constantly--which
most of us can't.
****DAY TRADER TRENDS---beware of "strange trades at the end of the day!! And for that matter at
the start of the day---notice that the pre opening bids and asks are garbage to the actual opening price?
****TIME ZONES---remember that 12 o'clock NOON is 9:00 AM in British Columbia---when often "strange
things seem to just happen!
****Be on Guard for professional promoters and dumpers---it is a real profession!
****Always check the Company's official website.
There are probably others too that I haven't, or forgot to mention. I am not a professional writer &
that's for sure---it should be obviuos! NOR am I a professional trader. I hope that for some, what I
have said is helpful---BUT---I did want to thank many of the astute and helpful contributors to this
forum. In that regard we, I believe are very fortunate compared to other forums---Again thanks---
you know who you are.
GLTA-----notoriously yours,
BARN BREATH