Canadian Penny Stocks Blog

An interesting day on the stock markets with them trying to break through to positive territory but after the strong start Monday morning, we’ve been moving our way downward.  Gold and oil seem to be hold above support levels which is great for the resource investor.

A couple of people have been asking about GWG.V with good reason.  It’s been beat up pretty seriously lately with it closing today at $0.22.  Personally, I’m still a long term holder of the company. There are just not enough companies in this space and it seems as though Great Western has its act together and believes in its business plan.  This might not be a short term winner for many people but the important thing is that management has a vision for the company which is extremely important for the future success of the company.   Here’s some new info just released:

True North options 65% of its Yukon rare earth discovery to Great Western Minerals

True North Gems Inc. and Great Western Minerals Group Ltd are pleased to announce that TGX has granted GWMG an option to acquire up to a 65% working interest in TGX’s True Blue property in the Yukon in exchange for carrying TGX through to completion of a bankable feasibility study.

The True Blue property is located 55 kilometres south of Ross River, Yukon and is accessible via all-weather road to the Ketza River gold mine, followed by 10 kilometers of summer-only road to the property.

The property covers a batholith of Mississippian-age syenite, coeval felsic volcanic rocks and lower Paleozoic clastic and carbonate rocks of Silurian age. During a 2009 exploration program on the property, TGX discovered three new Rare Earth Element (REE) showings which returned assays of up 6.02% Total Rare Earth Oxides + Yttrium (TREO) and 2.52% Niobium Oxide (Nb2O5) with a high proportion of Neodymium and Heavy Rare Earth Elements (see True North Gems News Release Nov. 24, 2009)…..

(source)

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Hello everyone!

Another week and more profits should continue as strong resource prices should see TSX above 12k.  That’s great news for most investors out there.  This past weekend has seen the Canadian Penny Stocks blog putting some finishing touches on its first little e-book.  It’s a teaser of what’s to come and what has been in the works for some time now.  Really looking forward to promoting this so watch for it here on the blog!

Two stocks to watch this week:
CQE.TO – $3.10
ARG.TO – $0.69

Technorati Tags: canadian penny stocks, micro cap stocks, penny stock companies

It looks as though the Bank of Canada has decided to stand firm with interest rates at 0.25% but that rate hikes are likely to occur in June.  It’s one of those good news bad news type situations, but it’s really in the economies best interest to see these rates rise and stimulus slowly removed to see how the economy is really doing.  I suspect that the economy is flat overall at the moment as opposed to the positive growth that has been reported, but flat is better than declining, and we are indeed on the road to recovery.

One stock that has been mentioned on the Canadian Penny stocks blog before has been Western Wind Energy.  They’ve recently supplied a financing update that you should check out: Western Wind Energy Corp. – Windstar financing update.  Currently trading at $1.68 (WND.V).

Although oil is sitting comfortably around $80, it could easily break through resistance and head up to $100 again.  Having an alternative energy company is a great idea to complement any oil/drilling companies that you may also be interested in.

Due diligence always though!

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Nice day on the TSX with more green to start off March and the new week all at once.  Today’s focus will be on the volume makers of the Toronto Venture Exchange.  Volume doesn’t always mean big moves in prices, but it can mean that there is a lot of interest in the stock so sometimes it can be a better indication of something worth investigating more than pure price movements.  Especially in penny stocks where prices can have such huge percentage swings.

Penny Stock Movers
Souther Pacific Resources (STP.V) – Volumes at 6,709,631 – $0.90
Southern Pacific Resource Corp. (Southern) is a junior company engaged in the development, exploration and production of in-situ oil sands in northern Alberta and the development and production of conventional petroleum and natural gas in Western Canada.

Result Energy (RTE.V) – Volumes at 6,197,423 – $0.385
Result Energy Inc. (Result) is an oil and gas exploration and production company. Result has interests in producing oil and gas wells in two main areas of exploration and development in central and north-west Alberta, and has a large undeveloped land position in the emerging Horn River Basin shale gas play in northeastern British Columbia

The Result Energy company has piqued my interest to perform some extra homework to see if it is a worthwhile investment.  There are already a couple of analyst who have positive recommendations on it.

Technorati Tags: canadian penny stocks, penny stock picks, small cap stocks

On the last post here on the blog, the suggested stock to watch was Norwood Resources NRS.V.  As expected the sell off occurred and the stock is sitting around $0.06 which is far off of the close of $0.095.  It would never be in the nature of this blog to say buy this stock, but there will clearly be a pattern repeating with this stock so if you see the pattern in action then you may be able to make money from it.

The two Canadian Penny Stocks to watch for tomorrow are:
NRI.TO – $0.245
OGC.TO – $2.19

Happy penny stock trading into the weekend for all.

Technorati Tags: micro cap companies, penny stock picks, small cap stocks

The TSX had a great week overall, although not so sure that will continue on into this week.  We’re going to be looking at weaker gold prices, as more investors continue to pick up the US dollar in response to their increasing the discount rate.  That doesn’t mean that penny stock companies will necessarily be along for the rough ride though.  Oil prices are hovering around $79 and if they break above that $80 level there’s always psychological support levels around the even numbers that will likely keep prices elevated above that $80 mark.  So with that here’s a junior energy company that was up 46% on Friday.  Watch for this to pull back due to profit taking, but you see this as an improve entry point.

NRS.V – $0.095

Norwood Resources Ltd. is an oil and gas exploration company engaged in the business of acquiring and exploring oil and gas projects, and has interests in properties in Nicaragua and Texas. As of December 31, 2008, the Company had not earned revenues from its oil and gas properties and is considered to be in the exploration stage. Its projects include Nicaragua Project and Bigfoot Prospect. The Oklanicsa Concession consists of 3260 square kilometres (805,268 acres), onshore on the Pacific coast of Nicaragua in Central America. The block extends southwest of Managua from the Pacific shoreline to the Costa Rican border. The block lies on the eastern flank of the Sandino Basin. In March 2008, the Company completed a shallow well to a depth of 650 feet on location at Maderas Negras. The Bigfoot prospect is located over a giant rift margin basement fault block at depth.

Technorati Tags: canadian penny stocks, mirco caps, small cap stock

If you’re a trader of penny stocks you’ll really appreciate the amount of money that can be sucked away by commissions, on large lots of stock.  With some of the larger brokerages you could be paying $100 or more in commissions and ECN fees.  If you’re not looking at cheaper alternatives, then you should be right now!

This blogger uses Questrade and has for a while now.  After receiving many inquiries about what broker I used, it was time to start giving people more than just a positive referral, and actually give them some free money along with it.  More on that later (but if you can’t wait click here).

What Does Questrade Offer?

They pretty much offer every type of investment account out there.  Stocks & Options, Forex, Gold, and Mutual funds.  They’re able to handle it all as well as TFSA and RRSP.  I’m especially fond of trading with their TFSA account.  One really interesting feature they have is that you can trade US securities inside your RSP in US dollars, saving you the currency conversion (more on USD in RSP here).

What Has The Canadian Penny Stock Blogger Experience Been?

Questrade has “democratic” pricing and different trading platforms based on the level of trading that you do.  Since the majority of my trading is based on fundamental analysis I stick with the web-based trading platform but they do have a pretty easy to use desktop platform as well.  I’ve demo’d it.  Sticking mostly to QuestraderWEB. I’ve never had a problem with the platform, executing trades except for the fact that the market orders aren’t always within the bid/ask spread that stated (but never too far off).  I’m a big believer in limit orders though, and Questrade has never let me down executing those at or better than my limit.

The pricing can’t be beat.  I haven’t paid more than $20 in comissions on a trade yet, and when you’re dealing with penny stocks things can get pricey with large ECN fees and volume of shares changing hands.  Check out their democratic pricing.  When they say commissions start at $4.95 they’re not kidding and there isn’t any hidden fees.  That being said, in penny stock land expect there to be added cost per share as well as an ECN charge if you’re trading on the venture exchange.

A Few Things to Note:
- $1000 minimum to open an equities account
- $5000 minimum to trade options
- $250 minimum to keep account in good standing
- You should have an up to date internet browser and anti-virus software installed
- Majority of the application can be completed online. This is a great feature!

Free Money Time!

Questrade is offering you $50 into your brokerage account for people who open an account and trade $100 worth of commissions which is only about 10 trades for a penny stock investor and means you’ll get the money fast and those first trades won’t cost you a thing.

If you’re considering opening an account with Questrade sign up using the link below and you’ll be eligible for this $50 offer.  Otherwise you can use the promotion code “cdnpennystocks” and will also be able to snag the $50 offer.

Sign Up and Get Your $50 with Questrade

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Occasionally we will take the time to look a company in a little more depth instead of just mentioning them.  So for today we’ll be looking at a company that has risen quickly recently but after watching for a little while now it seems like it’s a stock that is volatile enough to buy on dips and profit on peaks, or hold for a longer term investment.  These stocks are great for readers since they can be played both as a trade and as an investment.  Without any further delay.

Atikwa Resources Inc. – ATK.V

The Background (taken from the company website)
The Atikwa strategy is really quite simple. Find existing oil fields with large volumes of oil in place, which have been neglected due to their historically slow recovery (generally referred to as “tight reservoirs”) and then focus on enhancing that recovery through improved drilling and fracing strategies. Many of these pools, which are still being developed by traditional vertical wells can only be expected to recover in the area of five to ten percent of the actual oil in place. Recent technological improvements in drilling techniques for shale oil and gas throughout North America have opened up new opportunities to enhance these historically tight oil formations. A five to ten percent improvement in the recovery of oil from a pool with a large OOIP can translate into significant new reserves without having to expose the Company to the risks of exploration drilling.

The Chart

The Recent News
Atikwa Resources Inc. Announces Final Closing of Equity Financing

In conclusion
Check this one out for yourself.  This company is looking pretty solid, just need to hear back with some more drilling results, but this is one company that could be joining the 100% gainers club this year.

What’s Your take on it?

Technorati Tags: canadian, canadian penny stock, micro cap stock, penny stock analysis

It was a strong day on the overall TSX and indications are that the rally will continue for at least another day.  We’ll be keeping an eye out for gold prices since it’s again trading over the $1100 which is great for a lot of small cap resource stocks out there.  I also tweeted about being interested in learning more about geothermal heat and energy systems.  It’s another alternative energy idea that surely has some small cap and micro cap players that will be making a mint.  Once I do some research I’ll be sure to post some info and links of geothermal investment opportunities.

Penny Stocks to watch for Wednesday:
BXI.V – $2.04
MAA.TO – $0.41 – Hurt by the public offering announcement.  More details on February 24th.  It’s one to keep on the radar as the announcement could come earlier.

Technorati Tags: canadian penny stocks, geothermal heat, Small cap investing

Well Happy Valentines Day to all of you penny stock investors out there. Hopefully this is another day where you’re able to spend time with your loved ones and share with them your time and kind words. So after you’ve done that I’ve just a got a quick little message about investing in penny stocks, and advice that applies to all investing as well.

It seems that when you hear about general investing advice a lot of it has to be amplified when you’re dealing with penny stocks. This is very true for many reasons, but mostly it’s because of the additional risk that you’re taking on. Investing in penny stocks is a high-risk endeavour, but chances are if you’re hear reading this you already know this and have accepted that fact. With that extra risk you’re hoping to profit big time and that’s cool. But there’s something that you should keep in mind once you find that gem of a stock that’s up 400% in your portfolio. Don’t fall in love.

Falling in love with a stock is one of the worst things you can do with an investment because it won’t love you back. It can’t, it’s just a piece of paper at best, and a few pixels on a screen at worst. But seeing that balance on your investment account grow day after day as your company is crushing it can distract you from the task at hand which is finding solid investments.

One of the Top 10 Rules for Investing in Penny Stocks is to have an exit plan and you need to have one for your winners as well as your losers. I sincerely hope you’re not in love with your losers, but you might love your winners and that’s just as bad. Your winners can turn into losers overnight. Again, this is more true with penny stocks than any other class of investments. Since a lot of these are upstart companies they can have wildly good news for a couple of months before lack of financing or lack of approvals kill the dream and the company goes down the tubes and is ultimately worthless. If you’re in love with that stock you’ll keep giving it a second, third and fourth chance, all the while your account balance is on the slippery slope down and your exit strategy along with it.

So on this Valentines Day fall in love with a person, not a stock.

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If you’re looking for an online discount broker, Questrade has some unbelievably low comissions. If you sign up using cdnpennystocks you’ll get $50 in free trades. Read more about it here.

#image credit: Niffty..

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