ECH - Echelon Resources

[nizar]

JWBHO1...kennas explains it well. I sold half my BMN and free carried the the other half..I have also done the same with Arrow Energy. I only had to sell 1/4 of my Arrow energy to free carry 3/4 because the price went very close to 4 fold on the price that I got in. They arent exactly all free carried but pretty close to it. I'll continue to do the same with Erongo and Echelon. I'll let them run more than 100% though. ERN is allready close to 100% in profit. I find it the safest way for me to ensure I lock profits in..no matter how much I like the stock. Nothing is a sure thing but if you can sell enough shares in a stock you hold to free carry a decent holding you have the best of both worlds. You can continue to see the rewards of a company you have faith in and you can also look for the next one to target. Thats just my trading plan and I try to stick to it..even though I dont stick to it all the time

Chris, i may be mistaken, but i thought free carried means that you sell enough to get your capital back, and then you let your profit run.
So you dont exactly lock in any profits??
Eg. AOE you buy at 100,000 shares at 50c. It goes to $2. You sell 25,000 to get your $50k back, and you keep your holding of 75,000 and let it ride.

So your not exactly locking in profits?
AOE could go to zero (hypothetically) and you will lose all your profit.

Do you keep a trailing stop loss in place?

I mean, BMNs a great company, but say it started falling, theres no company announcement, so according to you the fundamentals havent changed, but stay it started plummeting, to $3, then straight through it, to $2.80, then $2.50...
When would you just get out and protect some profits?
After all, you could always jump back on when the uptrend resumes? Yeh?

Would you face the situation differently if the correction/crash was only in BMN as opposed to a general market correction?

Do you think about these worst case scenarios?
I always do.

Im just keen to know what you would do. Coz its exits thats determine your profitability, not entries.

Of course, you dont have to answer these questions, they are just there to get you thinking.....

 

[JWBH01]

Chris, Kennas, Nizar,

Thanks for your information. Here is my scenario. I have more than doubled my money with ERNO, but I want to hold on for another 6 months for 2 reasons.
1. I get to 12 months and get discount on CGT
2. Hopefully the SP has aprreciated more by then and I will have to seel less shares to get my capital back, giving me more to free carry. Greedy or not?

Anyway I will read your notes tomorrow. Got to get up early for work. Sorry this wasn't really about ECH. I should have bought in earlier.
Hesitation has cost me a bit lately.

 

[chris1983]

Chris, i may be mistaken, but i thought free carried means that you sell enough to get your capital back, and then you let your profit run.
So you dont exactly lock in any profits??
Eg. AOE you buy at 100,000 shares at 50c. It goes to $2. You sell 25,000 to get your $50k back, and you keep your holding of 75,000 and let it ride.

So your not exactly locking in profits?
AOE could go to zero (hypothetically) and you will lose all your profit.

Do you keep a trailing stop loss in place?

I mean, BMNs a great company, but say it started falling, theres no company announcement, so according to you the fundamentals havent changed, but stay it started plummeting, to $3, then straight through it, to $2.80, then $2.50...
When would you just get out and protect some profits?
After all, you could always jump back on when the uptrend resumes? Yeh?

Would you face the situation differently if the correction/crash was only in BMN as opposed to a general market correction?

Do you think about these worst case scenarios?
I always do.

Im just keen to know what you would do. Coz its exits thats determine your profitability, not entries.

Of course, you dont have to answer these questions, they are just there to get you thinking.....

Ahh yeah your right..I worded it wrong. Sell enough to get your capital back is what I do. I dont keep any trailing stops. I also usually try to hold over 12 months to pay less Tax. I always stick to the fundamentals and my own research. I think all my stocks are going to be great . I wont even sell BMN if they dropped $1. If they dropped $1 off really bad news I would then assess the news and make my decision. It depends on the facts presented to me.

If any of my stocks start to go useless though I sell out. The ones I would consider selling are the "highly speculative" ones such as CFEO/HDGO/ECH. Those three im still not sure on..but after weighing up all the positives I think they will all bring good gains. Companies like BMN/AOE/AGM are ones that are locked in to hold because I feel very positive on them and what they will achieve. When I think the profit is large enough I will probably bail but I have big numbers in my head for all three of those stocks. From the free carried Arrow I bought ECH and HDG. A larger holding in ECH. These are my new "highly speculative" plays. Atm I'm still not sure on ECH but I really don't think any bad news is going to come out. Its going to be all positive IMO. It will be interesting. ERN is another one of my stocks I'm looking to sell once Ive held 12 months. I shouldnt have to sell too many to get my capital back and I can look for some more cheapies. Hopefully that gives you an idea of how I think. I think I wrote too much

 

[chris1983]

Its not slowing down.......

 

[chris1983]

Not many sellers left. Large volume. Increasing signs for positive news? Definately hope so.

 

[chris1983]

ECH got a share price query after the close.

Their explained reasons behind the rise

1) Close to summit resources grounds in Queensland.
2) Improvement in uranium price and market sentiment
3) Recent placement to North American and European investors.

Come on ECH..we all know its in regards to the recent airborne radiometric survey at your Yellerrie south tenements. Thats what I put my money on.

 

[chris1983]

ECH is still trading strongly after the price query. Thats a good sign. No loss of confidence from investors. Its one of my few stocks performing well today and is turning over some good volume.

 

[Halba]

Healthy retrace only down a few ticks. Market may pause till next upleg based on air surveys.

 

[chris1983]

Healthy retrace only down a few ticks. Market may pause till next upleg based on air surveys.

Yeah heading down a little bit now. Not to worry. Few panickers worried about losing their profits

 

[Halba]

Sell off on wa stocks may be the cause?

NEL down 70c.

Reasons: market getting nervous re: WA political uncertainty, and possibly QLD uncertainties. ECH being an explorer won't be affected so much.

 

[chris1983]

Sell off on wa stocks may be the cause?

NEL down 70c.

Reasons: market getting nervous re: WA political uncertainty, and possibly QLD uncertainties. ECH being an explorer won't be affected so much.

Maybe? Everyone seems to think Summit is such a good thing..so ECH should ride off speculation with their tenements to the North of Summit. I'm holding for now..some consolidation for awhile is actually a good thing but I don't know how long this consolidation will last. I think ECH will have another run as they are due for results soon from their Airborne radiometric survey for their yeelirrie south tenements.

 

[chris1983]

Closed at 91. Poor close. Ask is at 98 which sounds about right.

VWAP was at 101.8 so the close is a long way off.

Still expecting good things for ECH in the next 2-3 weeks.

 

[chris1983]

Third Quarter Activities & Cashflow Reports was out today.

Very positive..A little something that we didn't know from the report is below.

EPM12208 (South East Isa (2)) and EPMA15908 (South East Isa (3)) are located approximately 25km south east of Mt Isa and 10km south of Andersons. A review of publicly available data indicates that the tenement has a number of anomalous “channel” like radiometric responses.

During the quarter Echelon planned and scheduled a radiometric and magnetic survey over the tenement and associated application area. The addition of the magnetic data will help aid in the delineation of potential gold/copper targets within the tenement. The survey is currently scheduled to be conducted during May 2007 and consist of a total of 6,430 line kilometres flown at 100m
spacing.

Then we just recently had the Airborne radiometrics being completed over the yeelirrie south tenements. See below

The preparations for an airborne radiometric and magnetic survey over the tenements were completed. The proposed program was designed to significantly increase the radiometric data that is currently available over the tenement areas. Following a review of the region, the Company believes that the high radiometric response is indicative of significant uranium anomalies and the area covered by the tenements has potential to be part of a feeder system to BHP Billiton’s Yeelirrie uranium deposit.

A total of 7,750 line kilometres will be flown at a line spacing of 100 metres. The survey is expected to be completed by late April with the results being interpreted during the May/June. It is expected that mapping and drill targets will be identified for follow up in the second half of the year.

So there is quite a bit happening over the next 3 months. Looking forward to some updates.

 

[chris1983]

Holding very well. Highest closing price this share has seen of late and it is being supported very well. I don't mind if she consolidates at these levels but I think we could be seeing a higher SP in the coming weeks. There are some announcements drawing near.

 

[chris1983]

Very good announcement for Echelon.

FORMER SUMMIT RESOURCES EXECUTIVE DIRECTOR APPOINTED MANAGING DIRECTOR OF ECHELON

The Directors of Echelon Resources Limited (‘Echelon’ or ‘Company’) are pleased to announce the appointment of Mr David Berrie as Managing Director of the Company. Mr Berrie has over 19 years experience in the resources sector and currently holds the position of Director – Corporate for Summit Resources Limited (‘Summit’). He has been closely involved with the development of the Valhalla and Skal Uranium Projects, located directly south of Echelon’s Greenstone tenement, as well as Summit’s various corporate activities.

Prior to joining Summit, Mr Berrie spent over 18 years with WMC, and subsequently BHP Billiton following its takeover of the company in 2005. During this time Mr Berrie had corporate, legal and commercial roles within their exploration, mining and project development groups. Mr Berrie holds Bachelor of Laws and Bachelor of Jurisprudence degrees from UWA.

Mr Berrie’s primary role will be to grow the Company and advance exploration of the Company’s Queensland uranium tenements. In particular, he will focus on deriving value from these tenements using the regional uranium experience he has gained during his time with Summit.

 

[Sean K]

Very good announcement for Echelon.

FORMER SUMMIT RESOURCES EXECUTIVE DIRECTOR APPOINTED MANAGING DIRECTOR OF ECHELON

The Directors of Echelon Resources Limited (‘Echelon’ or ‘Company’) are pleased to announce the appointment of Mr David Berrie as Managing Director of the Company. Mr Berrie has over 19 years experience in the resources sector and currently holds the position of Director – Corporate for Summit Resources Limited (‘Summit’). He has been closely involved with the development of the Valhalla and Skal Uranium Projects, located directly south of Echelon’s Greenstone tenement, as well as Summit’s various corporate activities.

Prior to joining Summit, Mr Berrie spent over 18 years with WMC, and subsequently BHP Billiton following its takeover of the company in 2005. During this time Mr Berrie had corporate, legal and commercial roles within their exploration, mining and project development groups. Mr Berrie holds Bachelor of Laws and Bachelor of Jurisprudence degrees from UWA.

Mr Berrie’s primary role will be to grow the Company and advance exploration of the Company’s Queensland uranium tenements. In particular, he will focus on deriving value from these tenements using the regional uranium experience he has gained during his time with Summit.

Looks to be a good appointment. Perhaps that link with SMM might be of value to get the Mt Isa Project up and running, through a future JV.

 

[chris1983]

Looks to be a good appointment. Perhaps that link with SMM might be of value to get the Mt Isa Project up and running, through a future JV.

Yeah there are all connections in there because PDN own 50% interest in ECH's QLD tenements. As you all know summit is being taken over by Paladin so I'm happy to be holding ECH at this point in time.

 

[chris1983]

Threatening its previous high of 1.125..currently at 1.11 with the ask at 1.15.

This stock has news pending also in regards to the recent yillerie south airborne radiometric survey. Hopefully this will be released in the next couple of weeks. They also Just had the former summit exec director come on board. Two projects in good locations next to very large deposits. Looking good so far.

 

[chris1983]

Powering off low volume. Hitting 1.25 which I think is an alltime high. Hardly any shares for sale. This looks great. It will be interesting to see if any profit takers come in when the airborne radiometrics are released.

 

[Sean K]

What an extraodinary run. Are you still holding all Chris or taken some profits. Just 3 sellers at 130, 148, and 150. Amazing. No one wants to sell. Only see this once in a while.