Wednesday, October 27, 2010

OnlyDoubles Profit Spotlight for October 27th, 2010

Hello and welcome back to CRI's OnlyDoubles Profit Spotlight.

Here you will find past OnlyDoubles trades that have been recently closed. This blog's purpose is to update the public on recently completed OnlyDoubles trades as a demonstration of the model and a teaser to get you to subscribe. If you would like to learn more or subscribe (for real time access to OnlyDoubles NewTrades) please visit our Subscription page.

When it rains, it pours

Uranium has come back into the spotlight of late and one of our little gems has moved rather dramatically. Subscribers will recall that just a month ago this stock got CRI's attention. It was purchased at .23 (based on the tight double bottom registered) as the chart shows and half of the stock was sold today at more than double our purchase price. Since the company is still trading at a huge discount to its book value, I am more than happy to sit on our remaining 'free shares' and see where the wind will blow this little one. For those readers who are not subscribers, here is a little background on the company and why I thought it was such a great buy a month ago.

PIT-V (Pitchblack Resources - Cdn. Venture Exchange) is a Uranium exploration company that used to be called Cash Minerals. During the crisis of just a few years ago, Cash ran out of money and unfortunately the stock collapsed. Over the past summer the company was reorganized, the shares were rolled back (only 7.5 million outstanding as of writing!) and its old debts resolved. As well, the company graciously offered lots of NEW stock to directors at very low levels. From a valuation perspective, at .23 the stock was trading at a ridiculous .16 times book value per share. Put all these fundamentals together and the story was very compeling. Finally, the technical picture improved dramatically in late September as a double bottom was registered in price as well as Volume studies (here shows OBV) and momentum (here is the 7 period RSI and a slightly modified MACD ROC histogram).

FYI these are setting developed by CRI over the past 20 years and are very helpful in determining if a trend is for real or not! Feel free to try and apply them to your trading...

...speaking of you know which market CRI's OnlyDoubles is trying to take a position in right now? Seems to me it's worth $100/year subscription to find out....

That's all for this issue of CRI's OnlyDoubles,
Brian Beamish FCSI

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