By Golly Molly

Jan 18th, 2010 – Comment

If there is a rub in the MSQ story is that the company has been hacking away at projects for over 20 years without a major breakthrough. That having been said it is often the case in business that an over night success comes after 20 years of plugging away.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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mosquito

Hi Lou

I asked you to look at MSQ about 2 years ago. I managed to make some dough in the past. Can you please look at it again.

Thanks

Lou

 

Hi Lou,

Always good to hear from you. Mosquito Consolidated Gold Mines ( MSQ TSXV) should really look at a name change given that their focus is on their monster molybdenum project located about 35 miles from Boise, Idaho. Company management intends to move to a bankable feasibility study for the CUMO project in 2010 which provides a flex point that will either move the stock higher or knock it off the uptrend.

 

MSQ

The three year chart provides a view of the sharp V bottom that lifted MSQ off the lows in late 2008. There is also a golden cross that formed in July of 2009 at $0.40, indicating a continuation of the uptrend. If you look at the recent trading pattern its clear that there is been buying coming into the stock in 2010 but there is resistance in the $1.60 -$1.70 range.

 

 

 

MSQ2

The six month chart provides a closer look at how MSQ is positioned for 2010. The MACD signalled the retreat in October and the advance in December and now seems to be turning down again. What I observe is that the stock has gotten ahead of its support and could be moving back towards the 50 day moving average.

 

The fundamental story is about moving a significant deposit in terms of size, albeit low grade, towards financing an econ!omic mine. MSQ has other deposits in its portfolio but at this stage it looks like CUMO is the project that will leverage corporate success.

If there is a rub in the MSQ story is that the company has been hacking away at projects for over 20 years without a major breakthrough. That having been said it is often the case in business that an over night success comes after 20 years of plugging away.

 

Happy Capitalism!

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