Sidon International (SD, TSX-V)
Sidon pulled back early in the week but found strong support at 10 cents, as BMR’s technical analyst predicted, and roared higher Thursday and Friday to close the week at 16 cents, a 4-cent increase over the previous Friday…there is clearly a lot of interest in the high grade Morogoro East Gold Property in Tanzania that Sidon has an opportunity to purchase outright in an option agreement with a private company…Sidon was the most active stock on the CDNX Friday, trading a whopping 9.7 million shares (Gold Bullion was the 2nd most active with 4.5 million), after an 8 million share day Thursday…Sidon is currently trading in a zone of resistance up to 17 cents – more huge volume will be required to overcome that resistance either immediately or a little further down the road…we added Sidon to the BMR Portfolio back in March at just a nickel and we took some heat for that from certain quarters as the company has not had a great track record in terms of advancing projects…but Sidon has never had a project with such blue sky potential as Morogoro East which is in an under-explored, highly prospective region of eastern Tanzania along the same geological belt (or a parallel belt) as Canaco’s (CAN, TSX-V) extremely promising Handeni Project which is the focus of a lot of investor attention right now…often with these early-stage situations like Sidon (Gold Bullion and Seafield too when we first introduced them) you see certain blemishes (horrible web sites, projects in the past that may not have panned out, etc.) but you need to look beyond that try to envision how the company’s future may unfold with a really attractive project that it can focus on and develop – something with real merit and a lot of potential sizzle…going forward, we believe Sidon will be able to raise the money necessary to explore and develop Morogoro East and will also beef up its “people infrastructure” which is critical – the right people on the ground (as Gold Bullion and Seafield have) to move the project along successfully and unlock all of its potential…Sidon is very speculative, like many of the other companies we follow, but the geological potential of the area that Morogoro East covers cannot be disputed…could Sidon become another Canaco?…yes, anything’s possible, just like Gold Bullion is now starting to show Osisko-style potential…
