Leveling Out After the Run Up: CPGI, KBX, TLR

All three of these companies, China Shengda Packaging Group Inc (NASDAQ: CPGI), Kimber Resources Inc (AMEX: KBX), and Timberline Resources Corporation (AMEX: TLR) have staged strong run ups lately and are leveling out; taking a breather…

And Don’t Let a Little Profit Taking Fool You Into Thinking Their Run Ups are Over…

Let’s start with China Shengda Packaging Group which was trading in the $2 range at the beginning of May, dipped to the $1.25 range, and stayed there through May and much of June, before gaining some support from shareholders and starting a run up. In late June the stock began to move and topped $1.50 earlier this month, a gain of 20% in three weeks.

The stock is currently trading in the $1.49 range. China Shengda Packaging Group, which makes paper cartons and paper products for almost every conceivable product imaginable, has virtually no short sellers to hold it down. News yesterday of a buy back in the works and reiterated guidance are good signs of corporate strength. I think the Company’s run up has legs and isn’t over yet.

So too with Kimber Resources, the Canadian gold mining concern, its run has legs… The stock was trading in the $1.40 range in mid June on a dip and then took off to near $2 earlier this month, a gain of 42.87% in three weeks. With virtually no short sellers to apply downward pressure, I think its run up will continue after a little profit taking.

And Timberline Resources, the Idaho mining company, was near $0.70 at the beginning of this month and ran up to near $0.90 by last week, a gain of approximately 28% in just a few weeks. The shares have settled back down to the $0.80 range, but with the strength of support displayed in its recent up, I think it could easily retest 90 cents in the weeks ahead. Timberline Resources also has virtually no short sellers to hold it down.

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.