McEwen Mining Inc. provides exposure to a proven wealth creator

Jan 7th, 2013 – Comment

McEwen is a bonafide wealth generator in the precious metals mining game and has a big personal stake in the outcome of this venture.


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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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Can you comment on MUX.

Thanks,

Jules

 

Hey Jules,

I hope you and all of the other investors that follow this blog here and on Globe Investor enjoyed a wonderful Holiday Season and are ready to MAKE 2013 – LUCKY 13!!

McEwan Mining Inc. (MUX TSX) is driven by Rob McEwen who owns 25% of the company while taking no salary and backstopping a recent $60 million rights issue. Clearly Rob is as committed to MUX as the pig is to bacon. The company has no debt and $75 million in the bank. A stated the goal of management is to qualify for the S&P 500 by 2015 and to increase their production of gold, silver, and copper.

A review of the charts will help inform my analysis of the shares of MUX.

 

 

The three-year chart indicates the downtrend that dominated trading from the 2011 high at $9.50 to the low of $3.00 in December of that year. There was an aggressive move to $6.17 by January 31, 2012 but it was short lived. Worth noting is the double top that surfaced by the end of February 2012 signalling a reversal that saw the shares fall to $2.02 by the May 23, 2012. What is also worth examining are the buy and sell signals generated by the MACD and RSI as the shares hit tops and bottoms in 2012.

 

 

 

 

 

The six-month chart illustrates that a gentle up channel has developed since the November of 2012 with the stock meeting resistance along the 50-day moving average. Unfortunately there are no strong signals that would support a buy or a sell decision. What is clear is that if you were interested in MUX you would be best to actively trade it for profit.

If you like this story and want to ride the Rob McEwen rocket then you should start building a core position and add to it on pullbacks and take profits when available. McEwen is a bona fide wealth generator in the precious metals mining game and has a substantial personal stake in the outcome of this venture.

Make it a profitable day and happy capitalism!

 

 

 

 

 

 

Categories: Precious Metals
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