John Newell: Exceptional Moves From Exceptionally Run Companies; Triumph Gold
John describes his technical analysis methods for their Precious Metals Fund. They screen thousands of companies through a filtering process looking for those that show indications of strength with the potential for a technical breakout. He looks for that strength and then figures out the fundamental reasons behind it.
When researching companies you have to look at their jurisdiction, technicals, management teams, and the infrastructure. John likes to see a trigger point in the chart that brings on the potential for an explosive move upwards. Companies that can benefit the majors that need to replace their declining resource base. Some of these district-sized exploration plays will go through multiple owners and even then the odds of becoming a mine are quite rare.
Triumph Gold (CVE:TIG, OTC:TIGCF) looks good technically, and he has set some price targets. He says, “There has always been a belief that there was a resource on the Triumph site that can be expanded upon. The stock is going to move based on the drilling results and the excellent team that they have put together and what they will show us over the next fifty holes. It’s just a matter of determining the size of the resource. Soon there will be no upward resistance as there will be no sellers. Currently, it’s holding up well in a precious metals market that is tough to thrive in.”
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