In recent days it has been difficult not to sound like a broken record regarding the current hot mining stock of the moment. What was interesting regarding the ongoing re-rerate mining investor Gunsynd (GUN) is that the shares were continuing to squeeze higher in the run up to the Rincon IPO in Australia. Another gain of 25% was notched up in the stock, even though there was an announcement of an update on the Rincon IPO in due course, rather than the end of this week. The implication of the ongoing rise in Gunsynd was that the stakebuilding seen in recent days is continuing.
Market newcomer Helium One (HE1) continued to brush off all the hot air humour, as the shares blew up another 0.5p to 7.5p. This compares to the recent funding under 3p, with it being a feature of the re-rate for the shares that the company with a vast Tanzania resource has attracted more than its fair share of professional investors. The latest driver for the company amongst traders is that we should be treated to a new broker note for the stock. The present “back of a fag packet” valuations regarding Helium One doing the rounds are “25p risked and up to 100p unrisked.” Perhaps more pertinent as far as the share price in the near term may be the start of Helium One trading on the Frankfurt exchange.
It is always fun to see stocks where bears are persistently getting squeezed and unable to knock a stock enough to get on side. In the case of CBD specialist Zoetic (ZOE) the possibility that there is a distressed short still in the market from the 30p’s has been enough to take the shares up to 77p, with another 3p rise. Even without the distressed bear story, the “landmark” distribution deal in the US announced last month appears to be enough to provide support to Zoetic shares for quite some time.
Shares of coal to gold play Contango Holdings (CGO) rallied 9% to close at 6.5p, the best level since the Lubu coalfield project RTO in June this year. The stock continues to firm up in the wake of the announcement of the Garalo Gold Project at the end of October, and the company is starting to attract investor support off the back of the latest social media interview with the company.
Previously somewhat off the radar mining play Panthera Resources (PAT), continued its well deserved recent stellar run, hitting an all time high of 28p with a 6p rise. The joy for shareholders has continued in the wake of the announcement of drilling in the company’s Palmasa Project in Nigeria, which judging by the spike in the stock, great expectations continue to build up. Having hit an intraday high of 30p in the session, a clearance of this zone could point the shares as high as 50p according to some technical analysis methods.
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