"The history of Eureka lies in its future." - Lambert Molinelli, 1878

DISCLOSURE

The author/editor of the Eureka Miner owns common shares of local mining stocks, General Moly (GMO), McEwen Ming (MUX) and Newmont Mining (NEM); together with benchmark miner Freeport-McMoRan (FCX). Please do your own research, markets can turn on you faster than a feral cat.

Friday, October 9, 2009

General Moly Headed for $5?


Morning Miners!

It is 8:00 AM sharp, a little late for the ole Colonel. I was glad to find that someone remembered to go down to the bunkhouse to wake up the Sun. It may have been Friday, she left a note in the break room and fired up our pot of Raine's famous TGIF coffee. She's sure handy and everyone is always glad to see her show up. Oh, what did the note say? ...."Have a good'un buckaroos!"

Gold Stock Trades has an interesting analysis of the latest price action of General Moly. They believe their long term target of $5 is coming sooner than later. Here's the link:

General Moly (GMO) Approaching Another Move, Adding Under $3.10


If you could put 48 economists in a room and ask them a bunch of questions would you know more than asking just one...or none? I'll leave the answer up to you. The Wall Street Journal surveyed 48 the other day and this was their composite view:

"The 48 surveyed economists, not all of whom answer every question, expect the economy to bounce back from four quarters of contraction with 3.1% growth in gross domestic product at a seasonally adjusted annual rate in the just-ended third quarter. Expansion is seen continuing through the first half of 2010, though at a slower rate. But the massive downturn has left an open wound in the labor market that will take years to heal. On average, the economists don't expect unemployment to fall under 6% until 2013; unemployment in September hit 9.8%." (WSJ, 10/8/09)

There is good news on the trade balance front:

"The U.S. trade deficit unexpectedly narrowed in August as exports posted a small gain and imports fell on a big drop in demand for foreign oil. The Commerce Department reported that the trade deficit declined 3.5% to $30.7 billion, surprising economists who had expected higher oil prices to push the imbalance to $33 billion. Oil prices did shoot up, but the volume of shipments dropped sharply in August." (WSJ, 10/9/09)

The broader markets are up, life is good and as sweet Friday said, "Have a good'un buckaroos!"

Enough talk, let's walk the walk:

CAUTION: 4-WD is OFF - the VIX or "fear index" remains below 25, smoother markets expected in the near term (what's this?)

Yellow light is ON for possible adverse regulation/legislation (mercury emissions)

Otherwise, all lights are green on the Eureka Outlook Dashboard (upper right, what's this?)

Oil is down $0.10 in early trading to $70.95 (November contract); Gold is down $5.2 to $1049.1(December contract, most active); Silver is down 0.085 to $17.730(December contract); Copper is down $0.0585 to $2.8400 (December contract); Molybdenum is steady at $13.625.

The DOW is up 67.71 points to 9793.29; the S&P 500, up 9.11 points to 1066.69. The miners are mixed:

Barrick (ABX) $39.80 up 0.73%
Newmont (NEM) $46.68 down 0.70%
General Moly (Eureka Moly, LLC) (GMO) $3.12 down 0.64%
Freeport McMoran (FCX) $74.50 down 0.64% (a bellwether mining stock spanning gold, copper & molybdenum)

Steel stocks are mixed, (a "tell" for General Moly):

Nucor (NUE) $45.31 down 0.48% - domestic steel manufacturing
ArcelorMittal (MT) $37.51 up 0.92% - global steel producer
POSCO (PKX) $107.18 up 2.57% - South Korean integrated steel producer

The Eureka Miner's Grubstake Portfolio is is down 0.23% to $1,247,143.59 (what is this?).

Cheers,

Colonel Possum

Headline Photograph by Mariana Titus

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