A handful of natural recourse stocks have been creating quite the buzz; a couple of them may even be worth looking into. One of them's a penny stock; all of them are micro caps.
Gold Resources Corp. (GORO)The odds of making a textbook cup-and-handle chart are actually pretty low for a stock, but sometimes if you squint just right, you can conceptually see the pattern for a particular stock. Gold Resources Corp. (GORO) may be making one of those loosely-defined patterns right now... and it's a bullish hint.
The stock's been on fire since mid-May, right before the miner announced the La Arista Deposit Vein System was successful with the very first drill hole.
The company's actually found a couple of silver hot spots in recent weeks, though hasn't quite been able to turn it into profits yet. This Colorado dig may do the trick from the fundamental side of the equation.
Technically speaking, there's a shot at a breakout if GORO can break above $5.75, though we also need to let you know GORO hasn't' followed through very well on any of its breakouts. (Then again, the successful digs haven't been happening until very recently.) Worth a look.
Zion Oil & Gas Inc. (ZN)Zion Oil & Gas shares had been getting crushed since late February, possibly (probably?) because this driller was, you know, not finding any oil. A suspicious burst of buying last week and today, however, can't go unmentioned.... especially when it pushed the stock up from a low of $6.70 to a high of $10.10 in two days.
So they finally struck? That's the question - we don't know. We just think it's odd that we got so much buying volume with no news... perhaps somebody knows something. (If the surge had occurred on weak volume, we wouldn't even bring it up.) So, this is another one worth keeping tabs on.
If resistance around $10.70 is broken, it may be a good speculative buy; there's a lot of room to recover what was lost between March and now.
Northern Explorations Ltd. (NXPN)This junior miner is operating in tow industries - oil/gas, and metal mining, though wind energy has been put on the radar recently as well. So far, the company's experienced no fiscal success, but a volume explosion last week and today to top off a 200% gain for this penny stock - since mid-April - merits at least a little attention.
What did we find? We attribute the recent strength (as in the last two days) to the company's recently-inked partnership that gives them an interest in a west Texas gas operation that's reported to be worth $50 million.... which isn't bad for a zero revenue company.
Nevertheless, our mindset is one of "we'll believe it when we see it."
There's no explanation of when the gas line might bear revenue for Northern Explorations, nor how much of it will make its way to the bottom line. Factor in very limited trading volume (until today and Friday), and all you have with NXPN is a lot of dangerous speculation for a fairly erratic penny stock.
If they can put together a couple more projects though (in any industry), maybe then you could make an argument in favor of the stock.
That's it for now, but if you want the highlights of what's hot and not within the world of penny stocks and resource stocks (including specific trade recommendations), be sure to sign up for the free Small Cap Network newsletter. That's where we put the best of the best commentary.
