Friday, January 11, 2013

WRN and CUU on a tear today

Both have their reasons. WRN surpassed last weeks target and looks to be headed to $2. A straddle here is recommended. CUU is heading towards a buy out and it's also possible the previous announced rumor about WRN being a possible target may have truth.

A while back in discussions with CEOs regarding the Golden Triangle I got the impression that these two counter parts stood out. Obviously I was just interested in the GT but since those were the prominent mention I zeroed in on WRN too. Yellowhead didn't get honorable mention. It was a product of a wider examination of the big deposits in BC.

Returning to the two in question, both are neck and neck for development. In the bigger picture there's not a lot of difference in the ground. However, CUU stands out with its contract with Teck.

Both are experiencing buy back pressure. Their 1 yr charts look like 2009. It's my guess that catalysts are driving the extra pressure more so than the general market cycles. This should lead to new highs. Looking at the development cycle and the chart one could have concluded that both were a bust. The timing of the BFS for CUU may have had a lot to do with its optics. Their problem was that the BFS was completed and without respect to timing they had to publish it. That resulted in a double whammy.

Now look today, the inner market has understood the true relationships and the deposits of both. The same can be said of Yellowhead. They look to be headed back towards a more respectable pricing. Looking ahead, will we see the summer come to an end in April again? Seem that we'll have to change the saying to sell in April and stay away January. I know that doesn't rhyme but it sure was the trend last year.


  1. As an after thought. Lorraine Copper has done nothing except commission an Initial Resource back in May. Teck bought in at a high price and since then no news! 2 cents today.

  2. Man oh man! Did you hear? My people got the call... it's on!