Farallon Resources at $ 0.56

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Farallon has published a series of good drill results lately but the stock was dragged down due to a pending judgement by the Nevada Supreme Court. The judgement reaffirmed the decisions of the lower court in favor of Farallon.

The judgment ordered David Hermiston and Wilma Hermiston to pay Farallon a total of US$650,000, plus accrued interest, for compensatory damages, and included an Order in Aid of Enforcement of the judgment for use in Mexico. The current ruling confirmed that the Order in Aid of Enforcement of judgment refers to the Campo Morado property, as described in the 2001 judgment. The Company continues to pursue all legal avenues to recover the proceeds of the judgment until paid in full. END.

After the November 16, 2005 ruling the stock has been moving up and its CEO Dirk Whittington said:

Dick Whittington :

"This ruling, which is final and conclusive, is significant in several ways."

"Shareholders can rest assured that we will leave no stone unturned in enforcing this judgment, and they are encouraged to call the Company directly at any time for updates. Unfortunately, while a case is in progress, we are legally limited by what we can say, but we can and will comment on any developments to the maximum extent possible. On other fronts, the recently announced (October 12, 2005) spectacular drilling results at G-9 continue to reaffirm the ongoing discovery potential of the Campo Morado District as a whole; so undoubtedly 2006 will be an exciting year for the Company."

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So with this positive outcome for Farallon it seems that the downward pressure on the stock is somewhat relieved and that's why we see it moving up ever since the ruling on November 16, 2005.

Now the stock is approaching its long-term down trend (see chart above) and it seems only a matter of days now before that trend will be broken to the up-side. Normally we would have waited before we got a confirmed break-out but due to the sudden spike in volume of traded shares in a rising trend we felt comfortable to move this stock right now to our portfolio list.