Update on Greencastle
Back in February I posted on Greencastle (VGN). It was trading above 20 cents then and was on teh verge of a breakout. It has come down to 14 cents. I am down 22 percent on the position. However, since then its largest asset Deveron (FARM) has maintained its value. Greencasle has a market cap of $5.6 million at 14 cents. It owns 10 million shares of Deveron, plus other assets. Ignoring all those other assets and Deveron warrants, the Deveron position is worth $8.7 million. Greencastle would have to rally 55 percent to recognize the value in the Deveron shares. This is a big discount, bt by itself, it's not much of a catalyst for the stock. However, the chart of Deveron is looking bullish and primed for a potential breakout. If that happens, ceteris paribus I expect VGN will outperform FARM. For some reason I cannot post charts at the moment. Will update later.
TV is a producer, ZNG an explorer. Both based.
Late May Chart Mix
Three interesting charts, all speculative, and one interesting story. The story is OTSO, moving towards production this year. Could be a big winner if gold rallies and they get into production on time.
In the Aftermath
I like the risk/reward here. Aftermath has been beaten down to support. I'm looking for the 3-year moving average to hold.
Rarely Discounted Rare Earth
This is one I liked from research, but it ran away from me. I'm buying because it bounced around the breakout area and it looks like the market overreacted to the scoping study. They have a mine in the making in Uganda and already have a memorandum of understanding from Chinese buyers of rare earths.
Subscribe to: Posts (Atom)