Tsx SVU.TO Thread

[Naamplao]

Spur Ventures Inc (SVU.TO) is a fertilizer Manufacturer in China. Here is a short introduction

Spur Ventures Inc. aims to be the premier integrated fertilizer manufacturer in China, with plans to produce up to one million tonnes per year of high -quality compound phosphate fertilizer for domestic consumption in the central province of Hubei, China. These expansion plans include the development of the largest phosphate deposit in China, located near Yichang City.

China has a shortage of Phosphate fertilizer with few natural deposits compared to those found in Canada (Potash Corporation of Saskatchewan), Russia and Belarus.

This company is not a new company in China, it has had a presence here for about 8 years. This is important to me as I think that it takes time to develop business relationships in this company.

Recently it has added a major partnership to its fold. A major mining company which presumably has the capability of developing the above phosphate deposit.

Spur Ventures Inc. ("Spur" or the "Company") (TSX:SVU; OTCBB:SPVEF) announced today in Beijing that the Company signed a binding Memorandum of Understanding with Zhong Chuan International Mining Company Ltd. ("Zhong Chuan") to complete an equity private placement and to pursue strategic investments in China and elsewhere in Spur's fertilizer business.

Zhong Chuan, a private company, was founded by its current chairman, Mr. Sun Xinming in 1992. It has 18 domestic and overseas direct subsidiaries dedicated to prospecting and developing precious, nonferrous and ferrous metals and energy resources with a focus on gold and coal. This partnership with Spur is its first strategic investment in the booming Chinese fertilizer and agricultural sector.

"It is clear to us that Spur must align itself with an influential and experienced Chinese company to ensure our success in China," Steven Dean, Spur's Chairman said at the signing ceremony in Beijing. "Zhong Chuan's initial investment in Spur will be a signal of its confidence in Spur and in Spur's future in the fertilizer business in China," Mr. Dean continued.

"Zhong Chuan has considerable experience and success in developing mines in China and will work with Spur to advance Spur's interests in China," Dr. Rob Rennie, Spur's President & CEO stated. "Our primary focus will be to ensure that Spur's Sino-Canadian joint venture, Yichang Maple Leaf Chemicals (YMC) can start its two mines as soon as possible."

The success of Potash Corporation of Saskatchewan (POT.TO share price $204), Agrium Inc (AGU.TO share price $88) makes me want to get into the Phosphate fertilizer market but not at such high prices {sigh}

TA Analysis

Here is a line chart from Yahoo



There are lots of positive signals in this relatively inexpensive stock @ $0.90/share. I was lucky to pick it up first at $0.66/share (you may recall I have posted on this stock a week ago but that post has been lost). I made another buy at $0.88/share a few days ago.

The positives in this chart

1. note the positive 50dayMA cross of the 200dayMA.
2. The strong rise of the MACD, RSI, and the share price hugging the upper Bollinger Band

The sharpChart does reveal that there is some profit taking in the plot of the Accum/Dist but this does not bother me much.

The longer view using the P&F chart is very revealing for the future



Great looking chart,eh! The support level now about $0.70 but I doubt it will fall that far.

The resistance line at $0.95 is huge. Breaking this line will be great and the price should then rise to the next resistance line at $1.15....break that and I don't see much stopping it until $1.85...this is an extremely strong resistance point...but at a 100% profit by then I would not mind but first things first...get by this first point of $0.95

A short term view can be had from the Yahoo 5 day chart



The BB's are widening...the share price is at the top...the MACD and RSI are showing positive.

Monday April 21 will show another test of the $0.95 level. This may be the the day we break this level

[ProStar]

This stock is the last of all the fertilizer stocks to move... It's about time. Even stocks like Raytec and Western Potash move much more quickier and they don't have a N101 yet? I am glad I didn't give up on this one. I think it's SP will rise on more news. Patience is a virtue and I know I will be rewarded.

[Naamplao]

well it is time to update this stock after 2 months

Here is the Sharpchart: SVU.TO - SharpCharts from StockCharts.com

As you can see the Share price retreated from $0.90 to its support level near $0.70 which is about where the 50 dayMA was. I did not think it would retreat that far but the support held. Recently the Bollinger bands tightened and the Share price jumped past the $0.90 resistance and hit the next resistance at $1.15 where it passed through it briefly before falling back to $1.11 where it now stands. The Share price is above the upper BB...a good sign, the TRIX and RSI are nicely up. The Accum/dist has plateaued, risen then shows profit taking.

Here is the P&F chart



You can see the strong resistance at $1.15...our support is now at $0.95 If we successfully crack the $1.15 level there is a lot of room to rise.

Here is the 5 day Yahoo line chart



it looks like we are in for some sideways movement...perhaps negative drift. I don't see us assaulting the $1.15 level successfully for a while but nice things like that can happen.