Nautilus Minerals Inc. trading in a tight range since May of 2014

Oct 15th, 2014 – 1 Comment

The next step for NUS will be when they actually operationalize their venture and see if their gear can meet project specifications.


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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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NUS LOGO

 

Hi Lou

Continue to enjoy your frank insight.

I own shares in NUS and do not know what to make of its most unusual (imo) chart over the last while.

What would cause a formerly quite volatile stock to suddenly trade in such an unfailing tight range? It resembles a stock that is in the last wind down stage of a successful takeover which of course is certainly not the case here. Someone seems to have tight control over the bid and ask but why would they bother?

Next in the news for this outfit is getting equipment together for a first in mining: a subsea effort off the coast of PNG which will no doubt generate a lot of news, successful or not.

Your comments on it would be much appreciated.

Jim

 

Hey Jim,

Glad to hear that you are making use of the analysis provided to readers. I always find it a useful exercise examining a chart to see what exactly is happening in terms of trend, support, and resistance. This will be the second time that I investigate the particulars central to which has been on the hunt for mineral wealth on the ocean floor. The last time was on March 26, 2010 when the shares were trading for $1.90.

Fred wanted to know if he should buy on the dip or wait. The research conducted on his behalf indicated that the shares had enjoyed a nice lift off of $1.00 but hit resistance at $2.50 and had broken support at $2.20. There were no signals indicating that investors could expect a trend reversal and it was advised that patience would be rewarded. In hindsight that was the correct call. The stock continued to retreat hitting $1.34 by May of 2010.  NUS then caught a bounce to $3.05 by early February of 2011 but that was the end of ride. The shares have been in a steady decline for most of the last thirty two months.

Another inspection of the charts will help answer some of your concerns related to this investment.

 

NUS

The three-year chart exhibits the tight trading range that has dominated the chart since April of 2014 when the company settled its dispute with the State of Papua New Guinea. The general interpretation of a tight range is that knowledgeable buyers are accumulating the stock. You mentioned control positions and the research indicates that 28% of the stock is owned by Mawarid Mining LLC, 20.75% by Metalloinvest Holding Cyprus Limited, and 5.95% by Anglo American Plc. I can’t say who is accumulating or why but the pattern suggests continued surveillance is warranted.

 

 

 

 

NUS2

The six-month chart depicts the range that has caught your attention. Worth examining is the slight uptrend in the MACD and the RSI. NUS has to be considered a speculative investment at best. The golden dream of treasures to be found at the ocean floor has tempted many over the years although with nary an ounce of value as yet to be harvested.  The next step for NUS will be when they actually operationalize their venture and see if their gear can meet project specifications.

Make it a profitable day and happy capitalism!

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