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.

Copper Fox - Buy Out Rumor!

The volume suggests something else is going on! This is exceeding my expectations. It's not a frenzy up but more methodical suggesting someone knows something. The chat boards are swirling. There's extra buying pressure from the insiders and the new houses. Normally the chat boards like agoracom would see a rise in the number of new posters but it seems fairly calm. That suggests the buyers are less pedestrian and more institutional/investment council grade.

If there's this much pressure now then the return of the tax sellers will jolt the sp up. I'm beginning to think gaps. As a retail, you are one of the few whole are reading this. (There's not a lot of retail left.) Copper isn't sexy like gold and attracts a different mind set. Still, with a pending buyout you'd expect more retail. A quick study of the past reveals why there's no retail. They tend not to like these slow giant projects. They don't buy to hold for two years. They would rather gamble for pop.

The smart money bought like crazy at 61 cents. Now I'm betting you are thinking you should have jumped in. Well, you should have. True, there was no way to give you the confidence you have to do your own DD and decide to jump or not too.

You can see that at 94 cents people said it was flying too close to the sun. They took profits. This does not really indicate a decline. The fundamentals and reasons for this to continue are still intact.