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9/17/08

Trading Post (WTFDIK edition)

A reader wrote yesterday to say he was considering a position in gold junior Dynasty Metals (DMM.to) and asked my thoughts on Ecuador exposure, the referendum, the new mining law about to be published etc. I replied in a short mail (was busy) saying that I preferred copper junior Corriente (CTQ.to) right now as a short term play.

Dynasty (DMM.to) up 15% today, Corriente flat on low volumes. WTFDIK? Of course, this is all about the flight to safety gold move today. With gold now up U$72/oz on the day and copper down 1% (and under $3.10 again...I'm glad I'm out), there's not much surprise about DMM outstripping CTQ.

Minera Andes up 9.5% and back over a buck. Yay! Cream still rises.

Fortuna Silver (FVI.v) getting some love at long last. Not surprising really, as spot silver is up over 10% right now (and that SLV is doing me fine, after all).

Brazil's Bovespa and Argentina's Merval indices both down over 5% right here right now. General carnage in anything untouched by gold and silver.

Net Servicos (NETC) is down 9.6% on big volumes and a good a good example of the Brazil selloff. Despite Brazilian reatil sales up 11% YoY, the market just doesn't want anything to do with anything today. Total panic stations, and once the dust has settled NETC is a great way to ride the rebound. Why? Because it's a growth company in a growth sector in a growth country. Stockpicking 101.

Telecom Argentina (TEO) is my Argentine example. Off 8.6% today, but don't grab the falling knife. Let 'em panic, wait this out and the bargain hunting can come later. Solid company.