TAO Minerals, Ltd. | TAON & Extended Watchlist

TAO Minerals Ltd. TAON

TAON maintained higher highs and higher lows on Friday, trading record volume. The stock hit a high of .0134, giving us the chance at a 49% gain, having jumped in after our bottom bounce alert early last week

Judging by Friday’s activity, and a close near the high of day at .0128, we are lead to believe that the momentum could carry into this week.

We witnessed a key break of the 20DMA at .0123, and we’ll need to see this level hold as a key area of support. The next crop of resistance shows itself at .0194 (50DMA).

On the chart-side, we can see that the Accum./Dist. has been on a sharp increase since late-November. The RSI has held support above the 50DMA, and seems to be setting up to punch through the 50-line. The blue bars on the histogram are flipping up to the bullish side, as the PPO is surpassing the 50DMA. We have a Slow STO that has recently crossed and is now trending up as well. All in all, there appears to be a ripe little chart in the making for TAON.

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Dollar General Corp. DG

Dollar General has earnings coming in tomorrow morning. For those like us that like to take part in options trading, we will be looking at the $47 December Calls on DG, and thought we’d pass that along today.

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Extended Watchlist:
ZERO, DEJ, GERN, HEMP, CBIS, GRNH, CIRC, AZFL

HEMP, CBIS, GGSM & Extended Watchlists

We are back to focusing on marijuana-related stocks this morning, as Washington state’s legalization measures took effect at midnight last night. Tens, perhaps hundreds of thousands of happy smokers gathered at locations throughout the state, in a New Year’s Eve-style countdown-to-cannabis! We observed positive moves from several “pot stocks” yesterday, and we expect to see the trends continue as the nation gets used to the idea that the beginning of the end for marijuana prohibition is underway out West.

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Hemp, Inc. HEMP

When we initially began covering HEMP, the stock was as low as .027. It made a solid run all the way up to .09 before consolidating to bounce off of .037, at which point we saw another jump to .065. Consolidation occurred yet again, until late last week the stock found support at .035. It has been bumping into the 50DMA, and yesterday it finally got above it, with the next patch of resistance to come at the 20DMA of a nickel.

We’ve seen what HEMP can do when momentum flows into the stock, and we wouldn’t be at all surprised to catch another breakout in coming weeks, on into next year, especially with all the hype and positive attention that the medical marijuana industry has been getting.

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Cannabis Science, Inc. CBIS

We notice a lot of similarities in the HEMP and CBIS charts. Both stocks had serious runs, only to consolidate and find a higher support level, and are now gearing up for further gains, breaching the 50DMA’s.

The next patch of resistance for CBIS figures to come at the 20DMA (.068) and 200DMA (.072). As you can see below, chart indicators appear to be turning toward the bullish side, so we definitely want to keep CBIS on our scanners.

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Other Marijuana-Related Stocks to Monitor:
ERBB, GRNH, MDBX, PHOT, MJNA, TRTC, SRER

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Gold and GemStone Mining Inc. GGSM

We wanted to relay this morning’s PR from GGSM as well:

Gold and GemStone Mining Inc. and Blue Orange Mining Ltd Sign a Joint Venture Agreement
DRAPER, UT, Dec 06, 2012 (MARKETWIRE via COMTEX) — Gold and GemStone Mining Inc. (OTCQB: GGSM), an alluvial gold and diamond exploration and development stage mining company, announced today a joint venture agreement with Blue Orange Mining Limited.

Charmaine King, CEO of Gold and Gemstone Mining Inc., has announced the signing of a joint venture with Blue Orange Mining Ltd, based in Ghana offering 15 gold concessions, in a 50/50 JV.

Each concession measures between eighteen (18) to twenty-five (25) acres thus producing a total area of about forty-eight (48) acres in Dunkwa-Offin, fifty(50) acres in Pokukrom, and a total of two hundred and seventy-one (271) acres in Bibiani.

Six concessions were chosen for extensive testing, to evaluate the reserves. Results from this program would dictate the safe projection of resource to cover the thirteen mineable concessions for this project.

The concessions were evaluated by conventional polygonal methods to define the potential resources of minerals. Prospected data for the concessions was proven by a close drilling program undertaken by Dunkwa Goldfields Limited, a dredging company that held rights to extensive alluvial terrains along the Offin, Oda and Ancobra Rivers. When the company was declared bankrupt, its concessions were assigned by government for small scale operations. Records from this evaluation reveal an average reserve of approximately 11,083,696 tonnes at a grade of 0.75g/t for the six concessions. This projected over all thirteen concessions confirming a total resource of approximately 258,556 ounces and concluding a net average cost of production $721.45 per ounce for the life span of the project.

Mrs. King goes on to comment on the findings of the geological report, “GGSM is extremely pleased to announce to our shareholders and the public the geological report on our newest JV project with Blue Orange Mining shows over 250,000 ounces of easily extractable gold from the 13 mineable concessions. Even if gold was to drop to $1,500.00 per ounce, this concession would be worth over $380,000,000.00 to GGSM and our JV partners Blue Orange. With an average production cost for GGSM of $721.45 per ounce we are looking at over $200,000,000.00 in gross operating revenue for GGSM and Blue Orange Mining. Furthermore, GGSM is starting negotiations with Blue Orange to locate and finance the heavy equipment needed to begin moving forward.”

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Extended Watchlist:
TAON – We alerted the bottom yesterday at .009, looks set to continue gains.

GGSM | Gold and GemStone Mining, Inc. | Midday Update

Gold and GemStone Mining Inc. GGSM

We wanted to send out an update to outline the news released today by GGSM. We are currently monitoring closely for more bounce opportunities like the one that presented itself this morning as the stock dipped to .11 before trading as high as .135, for a possible 23% intraday jump.

The stock had already doubled the volume of yesterday’s session by lunch today. We’d like to see the support continue to hold off of the 20DMA, currently sitting around .105.

Today’s News:

DRAPER, UT, Dec 05, 2012 (MARKETWIRE via COMTEX) — Gold and GemStone Mining Inc. (OTCQB: GGSM), a gold and diamond exploration and development stage mining company focused on Sierra Leone, West Africa, has commented today on the growing economic opportunity within the mining industry of the Country in which it plans for full scale alluvial mining operations to begin in Q2 2013.

Sierra Leone has emerged as one of the most stable countries on the African continent. Its democracy is thriving, the economy is growing and the climate for investment is being transformed. With its verdant land, stunning beaches, fertile seas, vast mineral resources and innovative people — Sierra Leone is truly a land of opportunity.

In a recent report issued by the Standard Chartered Bank forecasts show Sierra Leone is set for rapid growth; with forecasts at 30% growth in real GDP in 2012 Government forecasts from the Ministry of Finance and the IMF go beyond this and estimate a potential one time surge in real GDP growth of 51% y/y in 2012 owing to new iron-ore production from the Tonkolili mine which would still put Sierra Leone among the fastest-growing African countries.

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Be sure to watch this GGSM spotlight for a peek into operations in Sierra Leone:
GGSM Video

More Info at : www.ggsmining.com

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Extended Watchlist:
REVO, AMBS, HEMP, TAON (Potential Bottom-Bouncer)