January 20, 2010

Update:

Alexco Resource Corporation (AXU) just announced the private placement (PP) of 3.5 CAD, its stock got hammered. I originally recommended AXU at 1.39 on 5/19/2009, sold for 50% profits in one week, re-bought at 2.36 on 9/3/2009.

Investing in the near term producers is like playing games. The key to success is to invest on or right after the last PP. I have strong evident to believe this is the last PP of AXU, I am adding more shares using the weakness and would recommend those subscribers who didn't own AXU or underowned AXU to use the opportunity to buy AXU on the cheap. One perfect example is Gold Resource Corp (GORO.ob). They did the "last PP" last summer at 4 dollar, now it is trading north of 10 dollars. AXU has a lot of similarities to GORO, high grade silver with base metal, big deposit, low cost producer and strong backer (SLW).

As I mentioned before, I got into margin in Dec because I saw a huge rally in juniors coming. I have been taking profits heavily in the past weeks to reduce margin and some accounts even has extra cash as the result. Today I am using the cash to adding my AXU position.

Regards,

Chen