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June 15, 2009 / Jeb

GMO (General Moly) Stock Update and Outlook

General Moly had a distribution day and was down 11% to 2.47.  Notice that the down volume was not near the volume where it broke out.

One distribution day shouldn’t shake out a strong holder who understands their potential. World molybdenum production is declining because the other companies primary mines are aging and costs are much higher.  There are low levels of inventory and no other primary moly mines in development in the western world.  Posco paid around $12 to get a 20% interest in its main property.  You can get in at a bargain.

I believe it will find support at the 20 day moving average to make another leg up.  I would buy under 2.40.

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