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July 16, 2009 / Jeb

General Moly Breakout of Bull Flag

General Moly has just broken out of a bull flag after making a correction to shake out a lot of traders.  This is a company with the best pure molybdenum opportunities in North America.  China is buying natural resource and this would be  a key asset to buy on “sale.”  They are in need of financing.

The other pure molybdenum company Thompson Creek is very strong breaking into new highs.  Out of the two I would recommend General Moly at this price level as the credit crisis has made this investment a “steal.”  You will be getting in on GMO on pennies on the dollar as both Posco and Arcelor Mittal paid much higher prices.  Plus this company has close to a dollar worth of cash and is close to book value.  After this market reversal as many traders have been shaken out and buyers are now coming in GMO should go past $3 in the next few weeks.  I expect volume to come in shortly.


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