OTCPK:CFMSF - Post by User
Post by
tooclassyon Jul 28, 2010 4:11pm
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Post# 17304529
Speculative Investor BUY recommendation
Speculative Investor BUY recommendation
Clifton Star Resources (TSXV: CFO). Shares: 28M issued, 38M fully diluted. Recent price: C$4.11
Tardiness in the reporting of drilling results continues to be a source of frustration with CFO. Responsibility for reporting the drilling results lies with Osisko (OSK), CFO's JV partner. As we understand it, a huge number of holes have been completed but not yet reported.
Due to the combination of the unexpected lack of news, the general lack of interest in junior mining stocks and the consistent selling of CFO's largest shareholder (for reasons that have nothing to do with CFO's speculative merit), the stock price has been in a steady decline. A correction low could now be in place given that the stock price reversed upward from intermediate-term support last week, but a solid close above the 50-day moving average is needed to provide the first price-related evidence of a low.
We remain bullish on CFO's prospects and believe that purchases of the stock made near the current price will be rewarded within the next 6 months. More importantly, indications are that OSK remains bullish on the prospects of CFO's Duparquet project. We say this because OSK continues to plough money into Duparquet at a rapid rate, something they wouldn't likely be doing unless they believed that there was a good chance of developing the project into a profitable mining operation.