EGUANA TECHNOLOGIES INC...

originally published Friday, May 27, 2016

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All Base Metal & Mineral Stocks

This is one of the most favorable situations we have seen for quite a while. Apparently, Eguana had a deal with a large manufacturer, which although good would have been restrictive, so they backed out of it last July, to the chagrin of investors, who dumped the stock. However, they have a good product or products and appear to have now got their prospective customer situation sorted out. That’s as much as I know about it fundamentally – what I am more certain about is that the charts look great.

On the 1-year chart for Eguana we can see how it plunged in July and August of last year, after it backed out of the deal, and then went into a basing period, which it is now starting to climb out of, with technical indications improving all the time. The duration of the base pattern has allowed the 200-day moving average to drop down and close up with the price, and in March the price broke above this average which has now turned up, and we have also seen a bullish moving average cross – the 50-day rising above the 200-day. The volume pattern has been strongly positive all this year, with high upside volume driving the volume indicators, especially the Accum-Distrib line, shown on this chart, sharply higher. The price appears to be being driven higher by a parabolic uptrend which looks set to force a breakout above the resistance shown soon, which means that the dip of the past couple of weeks has presented us with a good buying opportunity.


The long-term 9-year chart makes plain just how cheap Eguana is now, historically speaking, as it got as high as C$6.00 back in 2007. Also on this chart we can see that it appears to be just about to climb out of the 2nd low of a large Double Bottom, with last year’s lows being just about at the lows of 2013. The recent heavy upside volume driving volume indicators higher can also be seen in its historical context on this chart, and again looks highly favorable.


Although it is almost useless technically, it is worth taking a brief look at the very long-term 20-year chart, which includes the entire history of this stock, to see that it got as high as C$42.50 soon after inception in 2000. This chart also makes plain that the stock of this company has been largely a waste of time as an investment up to now, although as we have observed above that now looks set to change fast.


Conclusion: Eguana Technologies is at a good entry point here and is rated an immediate strong buy, and if desired a stop may be placed beneath the parabola, say at $0.128. Of the 167.86 million shares in issue, almost 48% are held by insiders. Eguana trades in light volumes on the US OTC market, so it's best to buy in on the Canadian market if you can.

Eguana Technologies website

Eguana Technologies Inc, EGT.V, EGTYF on OTC, closed at C$0.15, $0.118 on 26th May 16.

This report will be filed under Mineral Stocks in the Archive.


Posted at 8.45 am EDT on 27th May 16.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment or securities advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market technical analyst, Clive Maund is not a Registered Investment Advisor or Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.