Posted by Admin on May 21, 2010 under Penny Stock Alerts Blog | 
Hey guys. Hope everyone is doing well. Boy the markets have been getting absolutely hammered! Really brutal out there. As we saw in the big crash a couple years ago, with a brutal market comes lots of opportunity.
Despite a shaky market we managed to make a big nice 88% gain yesterday, and hopefully we’ll continue to do well with the company I want you guys to check out now.
There is a company I’ve been watching recently that has gone on some nice runs and has been priced much higher than it is now, and it has REALLY been getting pounded into the dirt the past couple of days, so we may have an opportunity for a bounce back on this one.
The alert is on TAON – Tao Minerals. Tao Minerals is a gold and precious metals mining company that was one of the first mining companies to enter Columbia and take advantage of the well known, yet for some reason undeveloped, mining resources available in Columbia.
I think they’re a good company and since they’ve been beaten down so badly the past few days, we may see a bounce back. These bounce back plays have traditionally done pretty well for us, and they’re somewhat low-risk (there’s no such thing as truly low-risk in this game) since the share price is already down so far.
In fact if you follow candlestick chart patterns, you’ll see we have a good technical setup on this one too. Three down days in a row (three black candles) with the final day, today’s candle, looking like an upside down hammer. That kind of candlestick is a signifier of a reversal, meaning the downward move may stop and a new move in the opposite direction may take place.
HOPEFULLY that will happen tomorrow, so keep a very close eye on TAON because it’s due for a nice pop. Even during TAON’s decline over the past few days, there have been some really fantastic day trading opportunities. Like on Tuesday when TAON first started declining, it STILL went from 16 cents to 21 cents during the day, so even though it closed down…day traders still could have made an easy 31% if they bought the dip and sold when it bounced back.
So TAON is definitely a fun stock with lots of action and volatility for day traders.
Here is a bit about why I like TAON’s prospects for the future. Get it, “prospects”…they’re a gold company. Eh? Okay, sorry
Market conditions for financing have improved and with the recent success of Ventana Gold Corporation, the financing prospects for other mining companies in Colombia have also improved.
But what makes TAON so special is the fact that the mineral resource properties consist of very promising exploration claims.
The Potential $990 Million Gold Concession
The El Comillo Mine concession is vein-hosted gold deposit located in Colombia, north of capital Bogotá and has 296 hectares. El Comillo is the focus of TAON’s exploration efforts.
At least three veins have been identified in the El Colmillo mineralized zone. These include the El Colmillo vein, La Muela vein and the Lama vein (a third sub-parallel vein).
Even if only the two main veins – El Colmilla and La Muela – are considered, it is estimated that the total gold content is approximately 900,000 oz. Current gross value of that ore is estimated to be 990 Million dollars at a gold price of $1,100 per ounce.
That’s a lot of potential money for TAON to acquire.
The “Colombian Factor”
The International Finance Corporation (IFC), a branch of the World Bank has identified Colombia as a primary target for mining investment because of the potential for substantial economic impact from it.
PLUS, the Colombian government has been recognized as one of the best pro-business reformers globally by the World Bank. With the US getting a little more anti-business (at least in some people’s opinions) lately, a pro-business government definitely is a very attractive thing.
These factors could enable the TAON to raise large amounts of capital at a low rate, making the venture oh-so profitable.
Rising Gold Prices!
Gold is trading at around $1,183 as of today.
With the global economy yet to recover completely from the recession and worries of Greece and other European countries needing bailouts, money is moving out of equities and bonds to gold, a safer haven. This renewed interest in gold as a safe investment is driving the
price of gold up. Even though gold was down a bit today,
the overall trend is clear, gold is moving up.
Also, the robust economic development in countries like India and China is driving the demand for gold jewelry and thereby gold prices.
With gold mines limited and production declining due to falling reserves, I believe gold prices could continue its upward movement in the near term.
Here is the kicker that I really like…
TAON has recently hired an investor relations firm. Investor relations firms basically promote companies in an effort to drive share prices up. TAON has recently hired a company called Evian IR to start promoting them and to try and get their share price up. I’m always talking about how small cap companies move based on buzz and hype and all that stuff…and that’s exactly what TAON hired someone to do. To go create buzz and hype and get TAON in front of the eyes of a lot of investors. So with an IR firm out there actively trying to get TAON’s share price up…we could be in for a nice ride.
Now again, I want you guys to use extra caution on this one. Overall TAON has been in a down trend the past few days, so be careful. The down trend IS what’s creating the opportunity and why I like TAON right at this moment…but nevertheless, be careful because if it doesn’t turn around, it’ll just keep dropping further. Also watch out for morning gaps up and be careful not to enter TAON at too high of a price. If you play it right TAON could be VERY profitable, but use caution to make sure you don’t get burned.
GOHG, my big 88% winner gave back pretty much all of the gains today. I know it gets annoying and repetitive, but I get a lot of new subscribers everyday so I have to repeat the same annoying mantra over and over “CASH IN YOUR GAINS WHILE YOU ARE UP”. These small cap companies are incredible, the gains can be enormous…but with big profits come big risks. If you cash in the gains while you’re up, you minimize the risk and ensure a big profit. So please always remember to cash in those profits. I know it gets annoying that I say that in every freakin’ email, but I want to make sure you guys make as much money as possible from my alerts. So if you make some great money on TAON, be sure you capture some gains!
Okay guys, I’ll have more info on TAON tomorrow. We’re coming off a big winner with GOHG, let’s make some more moolah with TAON!
PSA – Penny Psycho
Don’t invest based on what I say, do your own research and consult with a licensed professional before investing, don’t invest more than you can afford to lose, etc, etc.
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