Tuesday, March 04, 2008

Coeur D Alene Mines (CDE)

Coeur D Alene Mines (CDE) had initially featured as a blog stock pick for December of last year. The Technical picture has improved considerably, although the gold miners have not enjoyed the same exponential growth as seen in base metal prices (this is bearish for the base metal as stocks lead commodities with respect to performance). Given there is a reasonable chance of a breakout failure one could use Monday's move as an opportunity to raise the stop for the December 'Buy'.

The point-n-figure chart has a new price target of $9.25 from the December 17th target of $7.75. The chart is nicely set for a triple top breakout if it can make it to $5.50 (an additional 'Buy' trigger).

On the options front the January 2009 $2.50 calls currently trade at $2.90 from the ask (up $0.85 from December), with the $5.00 calls at $1.20 (up $0.30 from December).

Monday's gains came courtesy of earnings.

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