"The history of Eureka lies in its future." - Lambert Molinelli, 1878

DISCLOSURE

The author/editor of the Eureka Miner owns common shares of local mining stocks, General Moly (GMO), McEwen Ming (MUX) and Newmont Mining (NEM); together with benchmark miner Freeport-McMoRan (FCX). Please do your own research, markets can turn on you faster than a feral cat.

Tuesday, April 14, 2009

General Moly Pegs 5-Month High

Morning Miners!

Grab a cup, we've got some good news to chew on. General Moly (GMO) closed on a 5-month high yesterday at $1.47. It was a high volume day with nearly one million shares traded, twice their 90-day average! In early morning trading GMO opened at $1.60 and is presently $1.82 (7:44am). If you're in town, poke your head in the office and give the Eureka Moly guys a loud "Yee-ha!" from the ole Colonel.

What's going on? Moly prices are at a 5-month low dropping down to $7.95 from $8.20 last week. Maybe the answer is in the steel stocks. I compared GMO price action to Nucor (NUE) and ArcelorMittal (MT). The former represents domestic steel manufacturing and the latter, global steel production. Here are some interesting 1-month results:

GMO up >100%
NUE up 20%
MT up 45%

Don't you wish you'd put a little money on the bar when GMO stock was 64 cents? Similar to the rise in copper prices, I think we're seeing a little blue sky in the demand picture buckaroos!

Enough talk, let's walk the walk:

Oil is back over $50 in early trading to $52.51; the dollar ("Dixie" or .DXY) is up 0.26% to 84.832 and the commodity index (.CRB) is flat at 227.13.

Gold is down $6.0 to $889.8 (June contract); Silver is down 0.168 to $12.600; Copper has pulled back a wire gauge down $.0240 to $2.1015; Molybdenum sits not so fat but dumb and happy at $7.95.

The DOW is down 48 points to 8009.78; the S&P 500, down 3.97 points to 854.76. Gold miners are happy, General Moly is a party animal:

Barrick (ABX) $29.25 up 1.88%
Newmont (NEM) $42.38 up 0.71%
General Moly (GMO) $1.82 up 23.81%!!
Quadra (QUA.T) C$6.40 down 1.23%
Freeport McMoran (FCX) $45.89 up 0.66% (a bellwether mining stock spanning gold, copper & molybdenum)

Cheers,

Colonel Possum

No comments:

Post a Comment