SKE: THE FUNDAMENTALS ARE WHAT MATTERFirst, I can easily cite a professional technical service if I want to get into a chartist argument on my favorite mining company in the whole world, Skeena (Link below).
But more importantly, I would like to stress how much more important it is to learn about the fundamentals on skinny little mining stock like this.
This means measuring the market cap of the stock and comparing it with others in Ecuador and what they own. It means examining the fundamental background for the many drill results we will be enjoying over the next one to two years. And so on. Prospects, odds, trench results, maps, market cap. Fundamentals.
I think that fundamental picture, as it unfolds, is likely to result in a relatively quick takeover of the Skeena property by a producer eager for ounces. Like IAMgold, already feverishly working its own prospect in the same country. Why wouldn't they want a cash flow machine like Skeena to prop up their Ecuadorian situation while they go for the district-size scale down south? Answer: Don't think they aren't thinking about it.
Anyway, back to the TA: StockTA shows Skeena Resources SKE.V as "bullish" overall, "very bullish" short term, "bullish" intermediate term and "Very bullish" long term.'
Here is the link.
https://www.stockta.com/cgi-bin/analysis.pl?symb=SKE.C&num1=1&cobrand=&mode=stock
But TA does not matter too much in this situation!!!!!!!!
Don't get me wrong. I think TA has merit. It can work when the stock is an "efficient" big cap that is followed with equal vigor by scores of analysts and funds and stakeholders, where management holds conference calls regularly, where analysts have a past earnings record to track and are given clues about future earnings.
Technical analysis tends to fall apart when you're talking about mining stocks like Skeena. That is why a speculator can do so well examining the fundamentals. If you sell at 80 cents hoping to buy back at 50 cents, I am on the other side, looking for chances to add to my position more cheaply. Why? Because I am not stuck on a chart.
Instead, I have examined every single shred of available fundamental evidence, and I don't need a chart to know that this company IS a high grade gold mine with tremendous potential both for surface mining and for undergound mining. It is that simple and that clear to me.
The buy and sell levels you are trying to carefully measure with TA can change in a heartbeat, as one flack pushes the send button on one press release.
And it probably will.
I have gone over all the available info, much of which has finally shown up on Skeena's improved web site. this is another aspect of the stock's relative inefficiency. During the entire multi-million share runup to next week's likely drill results, it has been more trouble than the average speculator would go to to find all the data that is available. Just the "
"underconstruction" web site, I am sure, scared away many potential buyers. Until this week, you had to go to SEDAR to find the technical report. The essence of an inefficient market in today's dot-com world.
Worth reading the technical report of March. Offsite, in addition to SEDAR, I suggest a careful reading of Dr. Richard Appel's reports from 2004 on this stock. Until recently, he published a fine newsletter specializing in PM stocks, called Financial Insights. Now he runs a private hedge fund, undoubtedly with an emphasis on smallcap PM stocks.
You can still find his reports on Google. Just type in Skeena Appel. You will come away with a sense of how hard Rupert Allan and Ron Netolitzky have worked since at least 2003 to make this thing happen, how much they paid, and why. This IS a gold mine, literally. Not someday. Now.
In Summation: If you keep dickering with the cabbie over the price, you're going to end up missing the ride!
Michael