Sino-Forest (TRE.TO) - Timber....... Trading Halted

What makes a stock fall 20% in a day resulting in halted trading?  --> This report by Muddy Waters Research

Looking at the front page of the Muddy Waters Research a proverb is quoted: "Muddy waters make it easy to catch fish".  The intro goes on to explain the mandate of the the company: Expose "sub-par" companies and illuminate "well-run and well-positioned" companies.  It appears there is a focus on Chinese companies.

The Muddy Waters report makes very strong allegations.  The first bullet point on the report says it all:
"Like Madoff, TRE is one of the rare frauds that is committed by an established institution."
The stock which traded north of $25 on March 31st 2011, has now come down to below $15.  Muddy Waters has a valuation of sub $1 on this stock. 

Muddy Waters has also just release a 34.1MB zip file with data to back up there claim.  This can be download from their link: here

News links below:
Sino-Forest shares plunge halt trading - BNN
Sino Forest plunges as short seller targets stock - Bloomberg
Sino Forest Shares Plunge 21%

Moved out of TSX: AXR (Alexco) into TSX.V: ENW (EnWave)

7.20 to 8.22, I decided that there is not much upside left so it was time to get out.  I will be looking for an entry point near the end of the week. 

EnWave has formed a base at 2.10-2.12 and is looking to move higher.  I will look for a small gain by thursday and exit while AXR pulls back.

UPDATE: exited EnWave at 2.10. As stock didn't look healthy enough to move higher.  Thursday close @ 2.03

Off Topic: My new Venus Flytrap's First Meal

A Venus Flytrap enjoying a meal (Carnivorous Plant)
This variant is a Dionaea muscipula 'Akai Ryu', Japanese for 'Red Dragon'

TSX: TEC - Technicoil Corporation - Weekly / Daily analysis

I thought I would branch out today and look at some Oil services / Equipment companies.  One reason I think equipment / services will do well is that the new exploration / production companies have had and will have amazing quarters.  This means there will be more free cash flow to spend on expansion projects, increase in cap ex.  Therefore even though the services / equipment players have had a run up, there earnings going forward will continue strong as production and exploration companies demand more support from third parties. 
TEC on the TSX looks promising.

Starting with the Weekly chart. This stock started to get attention in October of 2010 indicated by the volume increase.  The peak was in March and this pull back looks like a correct through time.  The Slow Stoch is flattening out and is in neutral territory, with the MACD descending but rounding out on the Histogram indicating a potential short term momentum shift. The stock is resting on the 20 MA Weekly.

On the short time frame (Daily), the stock looks very promising.  The MACD has crossed over and is pointing up. Some decent buy volume came in last week to hold above the 20 and 50 MA daily.  The one negative is the Slow stoch is over bought however if it states in this state for the next couple of days, this uptrend should be expected to accelerate.

Essential Energy Services Ltd. and Technicoil Corporation Announce Mailing of Meeting Materials for the Annual & Special Meetings

Today there is a meeting about a "proposed arrangement involving Essential".  Essential is listed as ESN on the TSX.

To read more check out this page.

If this proposal is a merger or acquisition, it could have a significant impact on the stock price.  From the above charts the upside potential is large with an easy stop location below the MAs on the daily. I currently owe a small stake in TEC and am looking forwarded the next couple quarters profits.

Yukon's Economy gets a boost from Alexco's first quarter production.

Section that highlights Alexco Resources Corp.:
"The Yukon Economic Outlook forecasts mineral exploration spending to exceed $250 million, setting a record high.
Mineral production is expected to exceed $560 million this year — up from a forecasted value of $284 million in 2010 — due to strong gold, silver and copper prices and the recent launch of Alexco Resources Corp.'s Bellekeno silver-lead-zinc mine and Yukon Zinc Corp.'s Wolverine zinc mine.
The Bellekeno mine officially started commercial mining operations in January, while Yukon Zinc is expected to reach commercial production at the Wolverine mine in the third quarter of this year, according to the government's outlook.
"Current estimates have the total value of production from Wolverine and Bellekeno at almost $300 million for 2011," the outlook report states in part."

Yamana Gold Inc. TSX: YRI - Break above the 50 MA, Strong bullish momentum - UPDATE - 2.15% up

Yamana Gold Inc.  TSX: YRI - Review May 24th, 2011.

Strong move today, however on average volume.  The MACD is signaling continuing upside momentum with the RSI just getting above 50.
With today's move in Gold to 1527, Yamana Gold (YRI) is poised for continuing upside.

Below is a live Gold chart from Kitco:

UPDATE May 25th, 2011:

Up 2.15% today, with continuing momentum.  However, Today's rally seems to be on lower volume so be cautious.

Abercrombie & Fitch Co. (ANF) - Be cautious of today's move - May 23rd, 2011

Abercrombie & Fitch Co. (ANF) had a 0.58% jump May 23rd, 2011.  The the S&P500, Dow Jones, and the NASDAQ were all down over 1% as well.  So here are some reasons to be cautious of this move.

1. Slow stochastics / RSI shows a bearish divergence in May.
2. MACD momentum is pointing down.
3. Low volume move.  This jump had no conviction.


With stocks in general in negative territory, and with GAP INC (GPS) close last Friday, a correction in ANF is likely to occur.