re:BMR update...In case anyone missed it...from yesterdays BMR report...couldnt agree more with the patience is required statement..
..personally on any weakness over the next couple of weeks and i will be adding again,..i know i shouldn't as i am pretty heavy on it for now and who knows.nothing in life is guaranteed....my impatience is showing on the accumulation side :) ... just no loose cash at the moment...GLA
Greencastle Resources (VGN, TSX-V)
Greencastle gained a penny last week to close at 23 cents, its 50-day SMA which continues to decline…VGN’s strong underlying fundamental value is clearly shown in the latest financials which were released March 24…as of December 31, Greencastle held $5.1 million in cash and $2.6 million in marketable securities…some of those securities are likely shares in Seafield Resources (SFF, TSX-V) while the company disclosed it held 1,148,000 shares of Evrim Resources Corp. (EVM, TSX-V), formerly Avaranta, which started trading on the Venture Exchange January 25…at 23 cents, Greencastle’smarket cap ($10 million) exceeds its working capital by just $2.5million…the potential of higher oil prices in the coming months couldbolster Greencastle’s monthly cash flow of approximately $130,000 as it receives royalties from heavy crude production at Primate in Saskatchewan…Greencastletripled in value over a six-week period from late October to earlyDecember…since the beginning of January, though, the stock hasstruggled due mostly to impatient investors frustrated with thelack of news…patience is required here…over the years thesuccessful strategy with Greencastle has been toaccumulate on weakness when the stock is near cash value and then sellinto strength when something develops…with $8 million in workingcapital, three Gold properties (including land near Richfield’s Blackwater Project) and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that Greencastleoffers excellent value at current levels…the long-term chartremains very encouraging with rising 200 and 300-day SMA’s that arein no danger of reversing…it’s also interesting to note thatPresident and CEO Tony Roodenburg, a large shareholder in VGN,has refrained from selling any of his holdings in recentmonths despite the fact the stock price more than tripledin value on high volume…this is different from past runs inthe stock and adds further credence to our view that wehaven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime this year…Pinetree Capital has also accumulated more shares in Greencastle,so there’s every reason to be very optimistic regarding thiscompany’s prospects…investors need to be patient, however, as theyoften do with Roodenburg’s plays…Greencastle is up 64% since we added it back in to the BMR model portfolio nearly six months ago…