Gold Canyon (gcu.v)
After gains of 10.6% on Thursday and 15.4% on Friday, Gold Canyon ended up with a 20% gain for the week. Especially Friday's action was impressive as the volume shot up in a strong way. A total of 2.5 million shares traded yesterday and this is exactly the kind of action one wants to see, high volume going up and lower volume when consolidating/going down.
Even though we are enjoying a 76% gain on our initial investment in GCU, we expect more in the months ahead. Short term no one knows where it will go but we know one thing for sure; nothing goes straight up and every stock on the rise need to consolidate and gain more strength before its next leg up. RSI (Relative Strength Index) just entered overbought territory (>70) and even though it's normal for a stock to stay overbought for several weeks, consolidation will arrive at some point.
After the recent gains, GCU has grown in our portfolio to such extent that we soon will be forced to sell some shares. If/when we do so, it's nothing else but sound 'money management' on our part and does not mean that we have changed our opinion on Gold Canyon's undervaluation in any way. As always, any portfolio changes on our part are updated here.