WEEKEND STOCK REPORTER - Momentum Play Alert
ChartPoppers Newsletter <info@chartpoppers.com>
date: Sun, Aug 1, 2010 at 4:17 PM
Company Name: Gold American Mining Corp.
Trading Symbol: SILA
Yahoo! Finance: http://finance.yahoo.com/q?s=SILA.OB
Company Website: http://www.gold-american.com/
In the interest of saving time, I'm going to get right down to the nitty gritty on SILA, and give you the reasons why it's definitely worth putting on your radar first thing tomorrow morning when the Markets open.
The first thing you're going to notice is the price point. SILA is trading at a price that is much higher than many of our recent Trading Ideas. SILA closed last Friday (July 30th, 2010) at .90.
SILA has been rallying as of lately, and just recently had a pullback. Last week SILA hit a high of 1.16 and in very recent times has hit a high of 1.43.
These types of patterns suggest that this Company is going through 'floor building' phases. In other words, we see runs in the price, followed by pullbacks where a new floor is created, followed by runs in the price of the stock, and so on, and so on.
This presents a unique opportunity for us, where we can Trade in a company that's Market appears to be much more stable than some of our recent picks, and although I don't think we'll see the kind of fast % gains we've seen with some of our recent picks, we can definitely take advantage of the pattern changes of this Stock (both Short-Term and Longer-Term)
Take a look at the chart below to see what I mean.
Just last week, the Company put out a press release updating everyone on their funding status that was originally announced on May 11th of this year.
Take a look at the press release for full details (Worth a read) - Gold American Mining Corp. -- Funding Update
There's also a lot of eyeballs on this Company due to recent activity, so as I always say, follow the momentum.
Strong, steady growth is what I'd personally be looking for with SILA, but as always, 'regular' trading rules ALWAYS need to be applied, and strictly adhered to, so make sure you use your Stop-Loss Orders, and Limit Orders.
Let's talk about what SILA does:
SILA is a publicly traded precious metals exploration company, formed in Nevada on July 2, 2007. They focus on the acquisition, exploration, and development of mineral resource properties in North America.
It's no secret that precious metals have gained tremendous attention from investors over the last few years. The economy is a roller coaster right now, and it seems there's more bad news than good news regarding the future. I'm not one of those 'doom and gloom' guys, primarily because even when the market is terrible, there is still plenty of opportunity to make money in a down market, especially with precious metals.
SILA currently has two projects they are working on as detailed below:
Keeno Strike, Nevada Project ;
Guadalupe, Mexico Project.
The Keeno Strike property is located in the GoodSprings/Yellow Pine Mining district, and consists of a continuos block of 12 unpatented, 20 acre lode-mining claims for a total of 240 acres.
The Guadalupe Project contains two historic mines, is currently processing 3 to 4 tonnes of Ore per day, and is located in one of Mexico's oldest Mining districts roughly 5 miles north of the Fresnillo (Proano) Mine, which produced over 24,000 ounces of Gold in 2009.
I think it's really important that you take a look at SILA's website, and click on the 'Projects' section to get a full understanding of what I'm talking about above.
Please goto: http://www.gold-american.com and look around, there's a lot of information available there.
SILA has had a cumulative 158% gain since being at $0.45 on July 1. Investors are pushing heavy volume, jumping in and out of gains. There was very little volume until May, with SILA going through a restructuring period. I believe that we might be on the front end of another run, with this most recent sell off.
With the current price around $0.90 right now, SILA looks like a bargain, considering it was as high as $1.16 just a week ago. The stock continues to show unbelievable short-term gain potential.
According to Emerging Stock report SILA has Support at $1.03, with resistance at $1.15. There is a very good chance that we could see gains of 20 - 40% over the next week. I'm not quite sure it can get to its 52 week high of $1.46, but it still has plenty of opportunity for profits in the short term. SILA has been averaging volume of 800,000 shares traded since mid. July!
Investors are bullish on SILA right now, and the company is positioned very well in 2 potentially VERY wealthy properties. They have outstanding funding, which is critical to a mining company.
As always take the time to research the company over the weekend, but keep a close eye on SILA on Monday, as I believe we could see significant activity due to continued strong investor interest and great news over the last week.
I'll be in touch later in the day tomorrow, so in the meantime, be sure to put SILA on your watch-list first thing tomorrow morning!
Best regards,
~ChartPoppers |
