General Moly (GMO) Poised To Move Higher, Steel Stocks and Molybdenum Moving Higher
In December I wrote about where General Moly was probably going to bottom. It turned out it was a bottom and huge volume pushed the stock higher. Steel stocks are moving higher and at the moment one of the strongest areas in the market.
The best way to play the recovering base metals market and reflation is to buy a stock that is undervalued with major undeveloped assets. General Moly is still undervalued and providing another opportunity to add a position. I do not expect this stock to stay this cheap for very much longer.
I did not expect GMO to provide additional opportunities as I believed that astute investors from a larger copper company, Asia or another molybdenum company would buy them out. This has not yet occurred and this benefits us as we have a second chance to buy before it goes into new highs.
I believe GMO will hit new highs in the next couple of weeks.