Technical analyst Clive Maund talks about some
stocks he will be looking at in coming days.
This a "heads up" on a number of stocks that we will be looking
at in coming days, as time permits. In addition to these we will also be
looking at a range of gold and especially silver stocks, for reasons set out
in USING COTs TO TIME THE 1st BIG PM SECTOR UPWAVE.
Contagious
Gaming Inc. CNS.V, KSMRF on OTC, C$0.125, $0.10
This stock got as high as C$6.40 back in 2014 and is now a paltry C$0.125.
Do not be fooled by the name. The attraction of this company is that it produces
a refined cannabinoid substance that is clear and palatable, unlike the
competition, which produce it as a kind of offensive sludge. Apparently there
are a lot of contenders after this product and perhaps the company itself,
although fundamentally nothing more is known about it. Chart looks very
bullish, with a preliminary breakout in January followed by a reaction back
to support. Thinly traded and speculative, therefore only suited to
experienced traders. Avoid on OTC as volume non-existent.
Distinct
Infrastructure Group Inc.DUG.V, DSTFF on OTC, C$1.33, $1.03
This is a solid company with bright prospects. It supplies 5G internet
infrastructure, which will be necessary for driverless vehicles, that use a
huge amount of computing power, presumably useful for preventing them
mounting the kerb and mowing down cyclists and pedestrians etc. The demand
for this companies' services is expanding rapidly. Regarded as a relatively
sound investment at a good entry point after the long reaction from early
last year. Avoid on OTC as volume non-existent.
Guyana
Goldstrike Inc. GYA.V, GYNAF on OTC, C$0.23, $0.166
After a cyclical reaction back from November, this advance stage gold
explorer is believed to be at a good point to buy for a new uptrend on the
back of a sector advance.
Jericho
Oil Corp. JCO.V, JROOF, C$0.96, $0.74
Jericho reacted back more than expected – if we had expected it we would
of course have taken profits and stood back, like we did after the earlier
rally. The reaction has brought it back to support and with volume having
died down, it should soon turn up again. So we stay long and it is a buy
again here.
New
Pacific Metals Corp. NUAG.V, NUPMF, C$1.66, $1.28
Whilst the sector has reacted back, New Pacific has continued to plod higher,
which is thought to be because drilling results are expected soon, and there
is a chance they will be very good. So we stay long and it is also rated a
buy here with a fairly close stop, in case the results fall short. Volumes
light on OTC.
UGE
International Ltd. UGE.V, UGEIF, C$0.255, $0.193
Just as you should not drive a car by staring intently into the rear view
mirror, you should not get fixated on last year's results when considering
whether to buy this stock. It made a pretty heavy loss last year, but its
performance in the latest quarter is vastly improved and it has a full order
book. Believed to be at the 2nd low of a large Double Bottom pattern with the
low of late 2016, after a long and stubborn downtrend from April of last
year, which is seen to advantage on a 3-year chart. Yesterday's "bull
hammer" on the chart on good volume may signal the final low. Regarded
as a strong buy here.
