Dominion approaching key 6p barrier

Previous heads up was published on Dec 20th when sp was 5.6p. DPL has been relatively range bound between 5.5p and 5.9p. Today it is pushing the 6p barrier which has been a test too far on previous occasions.

There is plenty of potential in Dominion and investors looking for small cap exposure at a decent price will be wise to research into the prospects in Uganda and Tanzania. It did test 12p back in Feb 2009 and it’s worth noting that early 2009 was a frightful time in the markets.Technical Analysis (TA) followers will see the previous 12p level as a key target for DPL completing a 24 month recovery.

The markets enthusiasm for small cap commodity explorers has gone banana’s in the last couple of months as speculators see the Commodity sector as the rich area of growth in 2011.

DPL looks like a worthy candidate for a breakout of 6p and onwards to test 9p ranges but newsflow will be required to support any such rises.

Be careful out there and watch out for the banana skins.

Nautical heading for £4 test.

Previous heads up on Nautical was given on Dec 21st. Sp was 380p.

Today, the stock has been moving towards the big test barrier at £4. Sp currently 397p. With Varadero drill now very much under way and due to TD around the 6th or 7th Jan, there’s clearly some speculative buyers getting stock in ahead of the results. Varadero is a lower CoS drill than the previous successful Catcher strike made this summer. If they fail to hit the good stuff in Varadero – then they head off back to Catcher area where the CoS is very high indeed. Some have suggested that it’s a ‘banker’ but I would always be cautious as there’s no such thing as ‘dead certs’.

The second drill will follow immediately after Varadero and should give the stock decent support. If Varadero is a success, then it could raise the oip estimates for the entire area which would be very meaningful indeed. Other partners include Premier Oil and Encore Oil. At £4 range NPE looks good value especially when you account for the recent Kraken discovery which is due an update on OIP. Any followers of XEL will know the significance of heavy oil and Kraken is a cracking licence.

Hotlist 2011 – Update

Thanks to all the investors/posters that sent in their candidates for the last two slots on the 2011 hotlist. The list is now closed and pending some minor tweaks will be published on Jan 2nd.

There were some great comments/posts and I’m please to say that the 2 undecided slots have been filled with stocks that were put forward by investors/posters on TheShareHub.

Any guesses which ones! Would be fun to see if you can guess the final two picks.

Commodities set to be hot in 2011

Some very bullish commentators out there citing 2011 as a corker for commodities.

Some I agree with and others I do not. The following link is worth a look. I think oil at $150 is a bit too optimistic but I agree that Silver and Gold will be strong next year. Watch the video (after the 30 sec ad). Also worth noting is Yahoo finance article.

CNBC’s Fast Money: 2010 Good for Commodities, 2011 Even Better? – CNBC