RE: RE: RE: RE: Christmas in April Financing is not done .. well .. until it is done.
Folks that picked up this stock for less than 10 cents in late 2010 realize a 300% profit selling at 30 cents.
In late 2011 this stock was less 20 cents. Selling above 30 still nets a good profit.
When the knife will stop falling is anyone guess but in general there has been good volume on the way down which will weed out those sellers that bought in at low prices.
Will we retrace back to 20 cents ? I do not know but the longer the Financing is delayed the more chance there is of a continued move downward.
If/when the financing is secured the stock should quickly retest the previous double top highs of 40-45 cents after which there is no overhead resistance until 70 cents.
This move could happen very quickly due to the large amount of exposure this stock has had and the number of institutional investors that have put money into this stock and the low market cap.
In addition the tungston sector is strong. It is not like the Chinese are going to increase output and drive the Tungston price down which is the primary risk. Obviously the Chinese did not tell Wesson and Buffet .. if you guys build that mine we will flood the market.
The last point is that the Dow S&P 500 have had a good run over the last year. The dow moved from under 11,000 to over 13,000. These markets seem to be topping. I would would not count out a further rise due to the election year but come October all bets are off.
There is alot of money out there that will be looking for a place to hide over the next two quarters and there are not many hiding places. Undervalued companies with solid prospects in good sectors could get a real boost due to the large amount of money that will be looking for new homes in the upcomming months.