Stockchase Opinions

Jeff Parent B. Eng. FCSI CIM Great Western Minerals Group GWG-X BUY Jul 06, 2012

Looks like $.39 is a good solid base for this one. Make sure you have a tight stop loss on this. Don't let it go below $.32. He can see it going back to $.46.
$0.390

Stock price when the opinion was issued

Mining
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COMMENT
In spite of good news such as joint venture, financing and 43101 the stock still hovers in the $0.40’s. How come? He has a long position in their debentures and he feels quite secure with it. Rare earth is all related to China.
BUY

(Market Call Minute.) Rare earths. Likes this one, but the chart baffles her. Vertically integrated. They have a mine that they are looking to bring on production in Africa. Very attractive at these levels.

PAST TOP PICK

(A Top Pick Feb 3/12. Down 46.72%.) The whole rare earth industry has gone through a significant haircut. He sold it in May at about a 29% loss. Thinks this is one of 3 companies that will be the very first to go into production. By the end of March 2013 he thinks you’ll see insights as to the success and the start of construction with the processing.

RISKY

Rare earth that is trying to be a fully integrated company. Nothing like it in that size category. This is about as early a stage as you can be. China is the controller of 90% of the commodity.

HOLD

Rare Earth is a very difficult sector. There has been a sudden change of course in top management. There are bits and pieces that are very interesting. Took some profits a while back but still holds a little bit.

PAST TOP PICK

(A Top Pick Feb 3/12. Down 45.54%.) He got stopped out at about 25%.

WAIT

Processor of rare earths and just going into production in south Africa. He is not a fan of owning companies as they start up new projects. He wants to see margins as they start to ramp up.

HOLD

Rare earth mine in South Africa. International mines require a lot of money and political gesturing to get them up and running. The big question has been financing and when they are going to get it. In this environment, he doesn’t think it looks very good right now and needs a broad rally in the Junior resource sector. Have a good asset and they are not blowing away their cash.

WATCH

With a low volume stock it is hard to make a technical comment. It has a lot of resistance here. See if it goes above $0.10.