A man named Clive Maund wrote an article about a company called Hercules Silver. He thinks this company is a good one to buy because they found a lot of copper, which is valuable. The price of the company's stock went up very high when people heard about the copper, but then it went down again when people realized that it takes a long time and a lot of money to get the copper out of the ground and sell it. This means that now is a good time to buy the stock because it is cheaper than before and still has a lot of potential to go up in the future. The article also tells us some information about how many shares of the company there are, who owns them, and what the price of the stock is. Read from source...
- The author claims that Hercules Silver is as much a copper stock as a silver stock because of its huge copper find in Idaho. However, he does not provide any evidence or data to support this claim, nor does he explain why the market should value it similarly to other copper stocks. This is an arbitrary and unsubstantiated assertion that may mislead readers into thinking that Hercules Silver has a higher potential than other silver stocks or copper stocks.
- The author admits that building the infrastructure and mine to get the material out and to market takes a lot of time and money, but he does not analyze how this will affect Hercules Silver's financial performance, cash flow, or profitability. He also does not consider the risks and challenges involved in developing such a project, nor does he compare it with other similar projects in the industry. This is a superficial and incomplete analysis that ignores important factors that may influence investors' decisions.
- The author focuses on the price movement of Hercules Silver without providing any context or explanation for why it occurred. He mentions the huge runup, the reaction and hangover, and the recent drop, but he does not link them to any fundamental or technical reasons. He also uses emotive language such as "stunned" and "shell-shocked" to describe investors' reactions, which may reflect his own bias and sentiment rather than an objective assessment of the situation. This is a manipulative and sensationalist approach that does not help readers understand the true value of Hercules Silver.
- The author discloses his ownership of shares in Hercules Silver, which creates a conflict of interest and undermines his credibility as an unbiased analyst. He also fails to disclose any other potential conflicts of interest, such as receiving compensation from Hercules Silver or other parties for promoting the stock. This is a breach of journalistic ethics and professional standards that may compromise his integrity and reliability as a source of information.
- The author cites his own website as the source of this article, which raises questions about his independence and objectivity. He also does not provide any evidence or citations for his statements or opinions, which makes them appear unsubstantiated and speculative. This is a poor academic practice that reduces the quality and validity of his work.
Possible investment recommendation: Buy Hercules Silver with a stop-loss at CA$0.65 and take profit at CA$1.00. The technical analyst Clive Maund provides bullish signals for the stock, such as its strong relative strength index (RSI) and moving average convergence divergence (MACD), indicating that it is oversold and poised to rebound. He also notes that the recent drop was due to a high-volume gap down at the end of last year, which often marks a bottom in the price. Additionally, he mentions that the company has made a significant copper discovery in Idaho, which could boost its value in the long term. However, there are some risks involved, such as the uncertainty and time required to develop the infrastructure and mine to produce the copper, which may affect the stock's performance in the short term. Therefore, investors should monitor the news and updates on the company's progress and adjust their strategy accordingly.