Monday, August 10, 2009

Mega Silver Inc.

We've had SNS, Sabina and now we have Mega Silver Inc (Public, CVE:MSR).
Pure coincidence...I think?

This one I like right now for a number of reasons.

First we take a look at the chart









I'm looking at the price before there was even mention of the merger with Skybridge. The report about the merger you can read at marketwire :

Shareholders Approve Business Combination Involving Mega Silver and Skybridge

Looking at the stock back then, we were trading around 0.74
The merger took the stock up to around 1.15 and from their it went down to 0.66, that was the 8th of june.
We've hit that low again july 30th.

Now with the latest news released just friday things are looking up again for Mega Silver.

Mega Silver Advances Gold Projects in Red Lake, On., Silver Projects in Keno Hill, Yt., and the Blue Caribou Copper Project in Nunavut

Mega Silver is pleased to announce that it is drilling on two of three high grade metal projects in Canada.

Very pleased about that news. Not only about the fact that they're drilling two out of three highgrade metal projects but also about the fact they're also doing it in Red Lake, known for its large gold deposits...and also the place where Goldcorp made its name.

If you're thinking about investing I would suggest keeping the 0.66 as a guide to know when to get out if things do not work out, if things do work out start taking profits before it reaches 1.00

I'm expecting this one to put on a few points on monday.

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6 comments:

  1. Update

    Mega Silver opened higher at 0.79 which was to be expected. Sadly the prices of gold and silver went down today so there was not very much appetite amongst investors to get in. I still expect this one to go in the coming days when we're in the green numbers again with silver.

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  2. We ended at 0.74 again. The appetite for investment was present in the early hours of trade as we saw a 6% increase to 0.79
    Sadly silver was trading down today as was gold. We'll be waiting to see what the next trading day brings. We could see gold and silver trying to set a new bottom in the coming 1-2 days before starting up again.

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  3. I'm still sticking to my recommendation. If you're in at 0.74 thats still cheap.
    We finished at 0.70 today which means a drop by 5.41%

    Today however they released yet another newsletter talking about mega silver acquiring a 100% option on the Mink lake and the Sunshine lake.
    At least Mega Silver is doing everything they can to position themselves as best they can to wither these troubled times. Still deserves my silver maple leaf and I'm still expecting this stock to pop up. Investor acknowledgement of Mega will come I'm sure of that.

    http://www.megasilver.ca/home/news/20090812

    Mega Silver Inc. (MSR:TSX-V) (“Mega”) is pleased to announce that it has entered into a Letter of Intent in respect of an option to acquire a 100% interest in the “Mink Lake” property in Red Lake, Ontario and the “Sunshine Lake” property in the Dryden, Ontario area from Perry English (“Vendor”)...

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  4. Perfect buying moment today. The stock dropped more than 30% today for no reason. Must be an element of fear, stocks across the board are taking a beating.
    I hope some of you that were already invested were smart enough to accumulate on these dips and provide yourself with a better entry into the stock.
    When you get drops like these today with no news to go with that other than fear its better to wait why before joining the selling rage. as of writing Mega has regained 2/3 of its losses.

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  5. Seems 0.50 was the bottom. My guess would have been 0.47.
    Today Mega closed at 0.56 which was a gain of 12%

    Chart wise this one looks bad at the moment despite the gains.
    I still expect Mega to do well in the long run but those that got in at 0.70 and who didn't buy on the dips might see these up-days as a good time to get out.

    Those who did buy on the dips should soon be out of a loss.

    Although the stop loss of 0.66 was given I'm still following the stock since the 30% drop was so unexpected.

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  6. Another update, yesterday we saw intraday prices go as high as 0.80
    Today a pullback.

    The chart looks way better than last time.
    We've hit a 3 week high, we've had a close above the 20 moving average. It looks like we're breaking out of our downward trend.
    All in all, things are looking up and I expect a continuation now for Mega Silver and higher grounds.

    Still don't really know what happened with the 30% drop but like I explained in my trading tips http://goldandstocks.blogspot.com/2009/08/trading-tips.html
    Don't do at-the-bottom selling, also in my trading tips.
    If there is no negative company specific news then one could consider adding to your holdings to better your position or just hold.

    Those that did and are still holding will have a nice profit by now.

    All in all, good money in this stock.

    One could have entered fresh at the drop around 0.45-050
    One could have entered the stock at 0.74, bought more at 0.45, be at an average of 0.60 and still made a nice profit by now.
    One that entered at 0.74 and who didn't buy at the dip but just held their shares could have sold at 0.80 and still made a nice profit.

    All in a months work. Not a golden maple leaf stock but more than worthy its silver maple leaf.

    Markets is patience, nerve, aggressiveness, calm, clever,...
    Different times call for different measures and approaches.

    The more one trades the better they will understand these simple market mechanisms.

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