Aint No Price High Enough

Sep 15th, 2009 – Comment

We would like your thoughts on Cypress Development Corp? Thanks for the assignment. Cypress Development Corp ( CYP TSXV ) is a junior exploration company that is developing their gold properties in the Red Lake gold camp in Ontario. Red Lake is a prolific area and home to Goldcorp’s Red Lake Mine. But being in […]


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cypress

We would like your thoughts on Cypress Development Corp?

Thanks for the assignment. Cypress Development Corp ( CYP TSXV ) is a junior exploration company that is developing their gold properties in the Red Lake gold camp in Ontario. Red Lake is a prolific area and home to Goldcorp’s Red Lake Mine. But being in the right place is only part of the process of creating wealth in the junior exploration sector.

cyp1

Just looking at the three year chart the first thing that comes to my mind is that the stock is going the wrong way. The trend is down and as I always advise the best time to buy a stock is when its going up.

People often ask when will a stock like CYP go up? Simply, when it stops going down!

There have been a number of failed advances over the last three years so the if you are thinking of taking a run at this company make sure you are fleet of foot to capture profits when available.

cyp2

The three month chart shows a nice advance from the $0.15 lows to resistance at $0.22 right against the 200 day moving average.

Some of the advance could be attributed to the strength in the price of gold. Clearly,with gold testing the $1000 per ounce range, investors in junior exploration companies are excited about the possibilities. But what price will it take to make CYP a mover.

Gold has moved nicely from the $250 range since 2000 which again makes me ask whats it going to take?

Happy Capitalism!

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