Great Trades

Great stock trades based on fundamentals and technical analysis.

Saturday, January 07, 2006

 

MMGG Update

In the last 2 weeks, MMGG has rallied over 50% off of the multi-year low level, starting to catch up with other zinc stocks. Normally, one might think a 50% rally would make a stock less attractive for new investors, but in MMGG's case, it has a long way to go just to return to the $3+ level it traded at 15 months ago, and this rally makes the company worth far more than if the stock had continued to languish at the lows.



The biggest issue Metalline Mining had 2 weeks ago was getting financing to retain GTI to complete the feasibility study. Now, with this rally, big investors have jumped on the private placement, as they get an immediate 50%+ increase as well as the warrants. Closing this financing will mean a huge risk will be removed, as they'll have enough cash to complete the feasibility study with the team that's done it before at Skorpion, and they may have extra cash to expedite the development of the silver/copper deposit.

We didn't go into the silver/copper side much in the first report, but one seasoned industry investor who has invested in dozens of different mining private placements over the years told Great Trades that he likes the silver/copper potential even more than the zinc potential. Metalline Mining has essentially ignored the silver/copper side since 1999 when the Skorpion mine feasibility study was completed, but it used to be their primary focus. Since then, the price of silver has almost doubled and the price of copper has tripled, both up more than zinc. Most of the current investors probably have no idea there is any silver/copper deposit, as all the focus has been on zinc.

If the work they restarted recently on the silver/copper side indicates economic value, as the original samples did when prices were much lower in 1999, that should provide a major boost to MMGG's stock price. Watch the news over the coming months to see if they get any good silver/copper results.

Comments:
Hey Fellow, you have a great blog here! I have a web
site & blog about prime rate.
Yours is top-notch!
If you have a moment, please visit my site
prime rate
I wish you all the best!
 
I have to agree that you are good. Technical analysis is professionally done. Please keep the good work
 
Post a Comment



<< Home

Archives

December 2005   January 2006   February 2006   March 2006   April 2006   May 2006   July 2006   August 2006   October 2006   November 2006   December 2006   January 2007   February 2007   March 2007   April 2007   May 2007   June 2007   August 2007   October 2007   November 2007   May 2008   September 2008   October 2008   January 2009   February 2009   March 2009   April 2009   May 2009   June 2009   July 2009   August 2009   September 2009   October 2009   November 2009   December 2009   March 2010   May 2010   June 2010  

Great Trades Home    Email GreatTrades

Great Investments Blog     Great Investment Articles Blog

Disclaimer: Great Trades may have a position in all or some of the stocks discussed in this blog, but is not paid by any company to promote their stock. Great Trades contains opinions, none of which constitute a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. Great Trades does not provide personalized investment advice.

Seeking Alpha Certified

Enter your email address to subscribe:

Delivered by FeedBurner

This page is powered by Blogger. Isn't yours?