General Moly (GMO) Ascending Triangle Breakout, Molybdenum Buyout Possible
General Moly is reaching a critical point as it finishes the ascending triangle formation which generally leads to major breakouts. General Moly is one of the few pure molybdenum miners in North America. As oil rebounds and the economy turns around the opportunity to get into the major moly mines for pennies on the dollar will not last much longer.
I believe a GMO breakout is imminent and I have a short term target of $4.25.
One thing of import, General Moly has yet to mine a single pound of molybdenum. They also need in the area of a billion dollars to get their first mine into production. When that money is raised and a mine is built, this column will be accurate.
That is the time when you can buy mining companies cheaply and have huge leverage. The credit crisis has created incredible deals.
Now GMO is breaking out and up about 11%. Exactly according to my post.