It’s always nice to pick up a stock that experts are raving about when, by waiting a few months, you can buy it at a little over a quarter of the price it was at earlier when they started talking about it, and such is the case with this one.
You can read about the fundamental story in WHY FIVE INDUSTRY EXPERTS HAVE THIS GOLD EXPLORER ON THIS RADAR SCREENS. Technically, the outlook for the stock could scarcely look better, as we will now proceed to see.
Our 8-month chart for the US traded stock shows it from when it started trading back in April. After moving sideways for a few weeks from inception it went into a stubborn and rather severe downtrend that was aggravated by the worsening and terminally negative sentiment towards the sector that persisted until very recently, and only really started to improve last week. Notice, however, how upside volume has started to kick in over the past month and especially in recent days, that has driven both its volume indicators shown steeply higher. This is a very bullish development that usually precedes a change of trend, and there is certainly plenty of scope for this stock to recover after its severe decline of the past 5 months, and given that it is a prime takeover candidate as made plain in the article linked above, there is potential for the appreciation of the price of this stock to be very rapid indeed, as when a big buyer shows up.
All this means that there are 3 big reasons to buy this stock. One is that it is cheap, having lost almost three-quarters of its value from inception, two is that it has a highly prospective property in one of the richest gold mining areas in the world, three is that the sector is about to take off higher after a prolonged period of severe depression, and it is a classic takeover candidate. Wait a minute – that’s 4 big reasons.
American Pacific Mining is accordingly rated an immediate strong buy here. It trades in reasonable volumes on the OTC market and there are a relatively modest 32.5 million shares in issue.
American Pacific Mining website
American Pacific Mining Corp, USGDF on OTC, USGD.CSX, closed at $0.08, C$0.105 on 12th October 18.
Posted at 5.45 pm EDT on 13th October 18.