Analyst Says Co.s Stock Could Skyrocket


Analyst Clive Maund says Kainantu Assets Ltd.’s inventory might take off if it makes a discovery at its properties in Papua New Guinea.

It is a very fascinating state of affairs. Kainantu Assets Ltd. (KRL:TSX) is a junior that’s simply within the means of finishing a major funding that can be used to drill its properties which are near K92 Mining Inc.’s (KNT:TSX.V) huge discovery.

So let’s begin by what occurred to K92’s inventory value when it struck. As we are able to see on its five-year chart (Determine 1), it rocketed from about CA$0.50 to CA$9.00 for an 18-fold acquire, which is actually spectacular.

So let’s take a look at a map (Determine 2) on which we see that Kainantu’s properties are on both facet of the K92 mine that made the large discovery in Papua New Guinea, and near a spread of different discoveries, too. So it’s clear that if Kainantu discovered one thing important right here — and the probabilities are good that it’s going to — its inventory might take off like a rocket from its present low stage.

In gentle of the map (Determine 2), the most recent inventory chart (Determine 3) presents an interesting image for it reveals that it’s attractively priced right here after its gradual drift decrease from a minor peak again in Might at nearly CA$0.40.

Whereas this inventory chart doesn’t look very inspiring at first look, it begins to look an entire lot higher if you consider that the corporate is finishing an oversubscribed financing at CA$0.18 and can use the proceeds to drill its land that’s near K92’s huge discover and near different finds too, as set out above. Notice that there isn’t way more chart historical past — it solely goes again a few month greater than is proven right here.

Determine 1

 

Determine 2

 

Determine 3

 

Kainantu is due to this fact rated a right away speculative purchase right here. Notice that at present it solely seems to be traded on the Canadian market.

Kainantu Assets’ web site is right here.

Kainantu Assets Ltd, KRL.TSX, closed at C$0.17 on Jan. 4, 2022.

Clive Maund has been president of www.clivemaund.com, a profitable useful resource sector web site, since its inception in 2003. He has 30 years’ expertise in technical evaluation and has labored for banks, commodity brokers and stockbrokers within the Metropolis of London. He holds a Diploma in Technical Evaluation from the UK Society of Technical Analysts.

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Disclosure:

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4) Sometimes, Streetwise Studies LLC and its administrators, officers, staff or members of their households, in addition to individuals interviewed for articles and interviews on the location, might have an extended or quick place in securities talked about. Administrators, officers, staff or members of their quick households are prohibited from making purchases and/or gross sales of these securities within the open market or in any other case from the time of the choice to publish an article till three enterprise days after the publication of the article. The foregoing prohibition doesn’t apply to articles that in substance solely restate beforehand printed firm releases. As of the date of this text, officers and/or staff of Streetwise Studies LLC (together with members of their family) personal securities of Kainantu Assets Ltd., an organization talked about on this article.

Charts supplied by the creator.

CliveMaund.com Disclosures:
The above represents the opinion and evaluation of Mr Maund, based mostly on information out there to him, on the time of writing. Mr. Maund’s opinions are his personal, and should not a advice or a suggestion to purchase or promote securities. Mr. Maund is an unbiased analyst who receives no compensation of any sort from any teams, people or firms talked about in his reviews. As buying and selling and investing in any monetary markets might contain severe threat of loss, Mr. Maund recommends that you simply seek the advice of with a certified funding advisor, one licensed by acceptable regulatory companies in your authorized jurisdiction and do your personal due diligence and analysis when making any sort of a transaction with monetary ramifications. Though a certified and skilled inventory market analyst, Clive Maund will not be a Registered Securities Advisor. Subsequently Mr. Maund’s opinions in the marketplace and shares can solely be construed as a solicitation to purchase and promote securities when they’re topic to the prior approval and endorsement of a Registered Securities Advisor working in accordance with the suitable laws in your space of jurisdiction.

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