Silver Bullet Opportunity: BANG!
A couple weeks ago I was introduced to John Zang, the CEO of Morro Bay Resources Ltd. After a while of talking about the markets, gold and silver he shared some insight into what his team and company were doing which grabbed my attention.
What he was telling me about the company’s location, its project progress, management team and their connections were all the characteristics of a successful company. More specifically they are on the last portion of their exploration which they plan to finish this summer and allow them to get a PEA (Preliminary Economic Assessment) showing what their property/projects potential value is if mined.
I did a little digging on my own to learn more about John Zang’s track record, which caught me by surprise in a good way. He has been in this industry for 15 years as either a director or officer in many junior companies. He seems to find just the right companies at the right times to add substantial value to shareholders. In fact, he has almost generated 5 times return on investment for the stock price in less than three years.
Proper management is a major ingredient to any successful company. They know which companies to get involved in, when to get involved, are passionate about their business, and they also have the skills and connections to generate success.
Coles Notes/Cliff Notes on Morro Bay:
- Located in the Durango Silver Belt in Mexico (surrounded by Mid and top level silver producers)
- Significant transactions for properties in area by larger companies
- Similar acquisition to Morro Bay that recently took place would put Morro Bay shares at $0.375 (current price $0.055 cents)
- Morro working to complete final drill program to allow PEA and will open the door to be acquired.
Morro Bay Project in Durango Silver Belt
Technical Analysis and Price Forecast
The reality of trading is that only price pays. Meaning, if price of the shares you own do not move in your favor you simply will not make money.
Looking at the chart of Morro Bay (TSX-V: MRB) the price and volume analysis point to a sharply higher share price.
The first thing I like is the fact that Morro Bay is a fresh new company. The all-time high is only 11 cents, very little volume has traded in the past so it should not take much for price to rally to and above the high of 11 cents.
Also, because its new, original investors should still be bullish on their positions and with the final round of drilling to take place this summer I expect the shares to be tightly held. The previous rounds of drilling have been very successful and they expect the next holes to product more great results to boost the value of this property/share price even higher for being acquired.
See the chart below for a visual of my technical analysis.
Last Chance Opportunity
Morro Bay is initiating a private placement financing opportunity for investors which I am plan to take part in myself. They plan to raise up to $1,500,000 and are offering units consisting of 1 common share and 1 share purchase warrant at a unit subscription price of $0.05.
In case you are not sure what a private placement is or what warrants are let me quickly explain. In short, individuals who take part in the private placement are giving the company money to pay for the final round of drilling and other operating expenses. The company in exchange gives you shares at or below the current market value which is $0.05.
Warrants simply mean that for every one share you receive for investing you also have the option to buy the same amount of shares at the same price for a certain length of time. So if the share price increases you can still buy shares at 5 cents, and sell them at market value for a profit. Warrants are huge incentive to take part in private placements.
If you are interested please email me and I will direct you to the proper company representative.
My focus and goal over the next 3-6 months is to have 12 junior resources investments which are primed and ready for action. So when the next commodity bull market starts this basket of stocks will have the potential grow my overall portfolio in a big way with little downside risk.
The brutal truth about junior exploration companies is that most strike out, meaning they don’t have enough resources in the ground to make it feasible to be bought out, or for them to go into production. And even if they do have resources, most go under because of poor market timing or lack of a quality management team.
All of the junior companies I am investing in and sharing are the crème of the crop. They have made it through the hard phases, have the resources and are completing the final steps within weeks-months from an exploration company to being acquired or producing and becoming a true money making company.
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Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Morro Bay Resources Ltd. In addition, the author owns shares of Morro Bay Resources Ltd. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.
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Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997. Chris’ mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility. Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication. Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P500 index, which solves his client’s biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market. He is the author of the popular book “Technical Trading Mastery – 7 Steps To Win With Logic”. He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. Chris is a graduate of Seneca College where he specialized in business operations management.