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IGRU: Small Cap Breakout
Oct 31, 2007 - IGRU is on a monumental breakout. Learn to recognize these breakouts before they happen...
IGRU: Some time ago, we made you aware of IGRU. Today we are updating you to the incredible breakout this stock is in. Let’s look at this trade from the Technical and Fundamental point of view:
Technical Analysis: This stock had all the signs of a classic bottom with its high volume sell-off followed by an extended sideways base off the lows. As evidenced by the chart below, IGRU gapped out of its base 2 weeks ago to complete its bottom and enter into its trending phase. This stock had a nice retest of its Moving Average on Monday with a very quick recovery. This shows a lot of strength and great upside potential. We firmly believe this stock is in a serious trending phase with support coming in at the Moving Averages. Fundamental Analysis: The company just made the public aware of a phenomenal development. They believe they have an estimated 30 to 50 million tons of Manganese on their property. What is Manganese? I don’t know either but highly respected industry analyst Behre Dolbear values it at $75 per ton. That's all I care to know. Using my highly advanced Scientific HP calculator from the 6th grade, I compute that to be between $2 - $3 billion dollars in potential revenues. With approximately 100 million shares outstanding, that is between $20 - $30 per shares in potential revenues. What the ...??!!!?!! I am not saying the stock will get to $20, but anyway you look slice it, that is crazy upside potential based on their find. You can probably bet that institutions and industry related companies are taking notice of this previously hidden stock. Our Opinion: This stock is on a major breakout. It is very early in its breakout phase with large short term and long term potential. Looking at the volume on the breakout news, this stock did not catch the main stream media attention. That means we have not seen the major part of this breakout phase yet. We see trending support at the 1.00 and .79 area. Judging from the recent pullback and quick recovery, we suspect we will not see a decent pullback for awhile. We like the stock here and are looking for 3 – 5 in the near future.
Small cap trading can be risky and volatile. For more ideas on how to trade these volatile movers, visit us at SwingTrades.com.
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P.S.- By the way... if you'd like to trade successfully and with simplicity, and recieve an average profit of almost 14% a month on swing trades, and 37.50% a month in day trades... I invite you to come check out our services. I want you to see for yourself what we can do for you! Go here to learn more.. Disclaimer: Please note that charts and commentary provided by the moderator are for educational purposes only. Any trades placed upon reliance on the moderator’s charts or information is taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward trading stocks, futures and options, there is also substantial risk of loss and you must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell stock, futures, options or commodity interests. Most trading systems are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading stocks, futures, and options and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. Never risk more than 2-3% of your account on any one trade. Always define your risk before entering a trade and place a stop to limit your risk. There are no guarantees or certainties in trading. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system’s draw downs. If you are looking for a guarantee, trading is probably not for you. Most people lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. Ironically, worrying about the monetary aspect of trading can contribute to and cause a trader to make trading errors. Therefore, it is important to only trade with true risk capital.
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Ken
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