The Big Three – Pinetree, Mega and Fronteer

by JDH on December 7, 2006

Well, it’s been an interesting week so far. PNP.TO – Pinetree Capital Corp , collapsed on news of the OSC investigation, then went up when Dines said to buy, and has been falling since, presumably because Dines investors don’t have the cash to keep supporting it. The three month chart looks like this:

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It’s got three distinct tops, each lower than the first, which is not good. Uptrend lines are being broken, and downtrend lines aren’t. Long term I still like this stock, but it’s time to lighten up. I sold a few shares today, and I plan to sell a few more tomorrow to lessen my position and free up some cash. With this volatility, who knows what will happen next.

Next we have MGA.TO – Mega Uranium , which is also looking weak. The chart shows a distinct double top, which we don’t like. This could be just temporary, but I’m setting a mental stop loss at $5.00; if it falls below that, time to start selling.

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The final one of the big three uranium stocks is FRG.TO – Fronteer Development Group. This chart still looks good, and the MACD is improving, so I’d be holding this one.

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As for Laramide, it’s not looking great, since it failed to make a new top. Let’s stand by and see what happens. Other stocks remain unchanged, pending a detailed review as time permits.

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