IDCN - It's Bounce Time

Some long time readers may recall a bottom call I had late last year.  The stock ticker was GOIG and it's price at the time was $.0004 a share.  After GOIG had fallen from over a penny to $.0004 a share I stated it was time to take a dip and that the stock was ripe for a big bounce.  Not only did GOIG bounce, it soared from $.0004 to $.06 a share.  If you had purchased $400 of GOIG stock back when I had called the bottom you could have sold it for $60,000 only 4 months later.  How is that for a return on investment?

While I do not foresee IDCN trading at $.06 a share in the near future, I do see it posting a sizable bounce.  One that should take it to $.0019 and beyond.  I mention $.0019 because I think that price point will offer some resistance on the way up.  A break of $.0019 would bring $.0025 into focus.

Today IDCN closed at $.0009 a share with market makers bidding at $.0008 and willing to sell shares at $.0009.  This should change quickly and I think a quick move to $.0015 is order.  From there $.0019 and $.0025.  Why do I feel so strongly about a bounce?

For one the volume on the downside from $.003 has been relatively light, compared to its ascent to $.003.  This alone means there is more upside to come.  Just look at KATX, a stock I have been high on all year.  As the volume decreased the stock has risen.  I view this as shareholders buying and holding for higher prices.  I see the same thing with IDCN.  Shareholders are accumulating, holding, and waiting for this stock to post big gains.  I don't think they will be disappointed.

IDCN released some impressive news just a few days ago.  I think this stock is heading higher short term.  Add it to your watchlist if its not already there.


Indocan Resources & Mid-Atlantic Capital Commit $12M to Bele Mines South Africa
PALMA DE MALLORCA, Spain, May 17, 2010 /PRNewswire via COMTEX/ -- The Boards of Directors of Indocan Resources, Inc. (OTC: IDCN) and Mid-Atlantic Capital Ltd. announce that they have committed to a $12 million minimum initial capital infusion to eight mine sites in South Africa. Bele Holdings has been granted mining rights (new mineral rights) for an area covering some 144 square kilometres in Barberton - Mpumalanga province. The mineral rights comprise 414 base metal claims situated on the farms Hooggenoeg 150 IT, Doornhoek 157 IT, Kortbegrip 168 IT, Laggenoeg 158 IT, Rozentuin 159 IT including the Von Brandis, Heather Bell, Pentland and Thistle section, Soodorst 2, IU Overberg 1, IU and Nooitgezien 3, IU in the mining district of Barberton.
These claims cover the area of the Old Thistle, Heather Bell, Golden Snake, Von Brandis, Queen of Sheba and Pentland mines. The property lies at a mean height of 765 metres above sea level, close to the Komati River.
Bele Mines has substantial infrastructure including a number of shafts and 300 m of underground development and is the most advanced of the projects in the area. The main shaft was sunk to a depth of 50 meters and reef development has taken place on a mineralized shear zone.
Mid-Atlantic Capital advises public companies on funding activities and helps companies become public and get early stage funding. Indocan Resources is working closely with all parties related to this gold mining prospect and will have a carried interest and a slice of the NSR when completed.
Mapping and sampling carried out by previous investigators has established a total resource of 8 million tons of ore at 7.38 g/t down to a depth of 45 meters below the extensive reef development on the 50 meter level, i.e. 95 meters below the shaft collar elevation (this represents circa 1% of the total mining area).
This is equivalent to some 1.4 MILLION ounces of gold from the developed area.
Production of 360,000 tons per annum at 7.38 g/t producing after 29 months revenue amounting to an average of US$60 million per annum. The life of mine is estimated to be over 20 years.
At a discount rate of 15% per annum over a ten year period the estimated Net Present Value amounts to US$233M for the existing developed mining area (this represents circa 1% of the total mining area).
More information can be learned by visiting our website: www.indocan.com.
We seek "Safe Harbor."
Company Info: +1-406-322-3844 Jeffrey R. Bruhjell, president JRB@Indocan.com
CONTACT: Investor Relations, Ken Ash +1-910-300-8189 kenash@indocan.com
SOURCE Indocan Resources, Inc.