ALERT DATE & PRICE: NOV 5th, 2007 / $1.60 ALERT EMAIL:CLICK HERE CURRENT PRICE: $.85 CURRENT % ROI: -47%
COMPANY CONTACT INFO:
MEXORO MINERALS, LTD. Address: 880-609 Granville Street
Vancouver, BC V7Y 1G5 Canada
Phone: (800) 661-7830 Email:
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Web:www.mexoro.com
INVESTOR RELATIONS INFO:
G.M. CAPITAL PARTNERS, LTD. Address: Usteristrasse19, CH-8023
Zurich, Switzerland
Phone: (800) 647-9877 Email:
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Is it time to buy Mexoro Minerals again?
In our opinion, it most definitely is. The stock has sold off -47% since our initial profile price and in our opinion has since reached oversold conditions. Oversold conditions create good buying opportunities for savvy investors. If you look at the chart, we have been trading around the $.85-$1 level for the past 3 weeks and we seem to have found a nice base here.
You can see that there is short-term support around the $.85 level and a possibility to break the $1 level. Buying the stock at the current price of $.85 could possibly give you a return of 17% if it retests the $1 level. If it breaks past the $1 level, we could see it run to $1.10 or even $1.40 for a possible 30%-65% return on investment.
Volume has lightened up a great deal and with any type of buying that comes in, we will most likely see the stock move higher.
Is the company still on track to execute their business plan?
We still feel stronger than ever about the future of Mexoro and the probability of them making a discovery in the Sierra Madre Gold Belt. The company has been drilling at their Guazaperes and Cieneguita properties and are still continuing the search for mineralization and the big find.
Back on December 12th, 2007, the company stated that they have received the necessary permits from the local authorities in Chihuahua, Mexico, to build its ADR plant there. The plant will be used for the extraction and refining of the gold contained in the carbon filters produced by its heap leech operation at its Cieneguita Property. Mexoro anticipates construction of the plant will begin in January 2008 and will be completed within 90 days from the start of the construction.
So the month of January will put the company on track to really start executing their business plan for 2008.
Is the sector still a good investment?
Without a doubt gold is a good sector to invest in, especially since gold futures briefly rose above $900 an ounce this past Friday to reach an all-time high. Also a growing number of economists have concluded that the U.S. economy will indeed tip into a recession this year and gold prices tend to rise during such periods like this. Investors move money from more volatile investments, like stocks and bonds, into the relative safety of gold.
What is really interesting, is that in the Mexoro Minerals Stockumentary (click the chart to the right to view it), Bob Knight, Mexoro’s CEO, mentions that he believes gold would hit $700 an ounce by the end of 2007 and hit $1,000 an ounce by the end of 2008. Not only did it close above $700 an ounce at the end of 2007, but it has already hit $900 an ounce within the first 13 days of 2008! So Mr. Knight’s prediction about gold hitting the $1,000 an ounce mark by the end of 2008 seems very real.
In the face of falling home values, troubled credit markets, the war in Iraq, and rising unemployment, investors are indeed scared of what is going to happen in 2008.
The stock and bond markets seem increasingly risky in the near term, as the S&P 500 index is already down 3 percent this year. That makes a vehicle for capital preservation like gold all the more appealing.
So if we see Mexoro make a discovery on any of their properties in 2008, we could see institutions begin to start accumulating shares at a rapid rate – especially if the stock stays at these low levels.
The bottom line, is that the stock has been selling off now for the past 2 months and in our opinion is obviously in an oversold state. As I said earlier, situations like this create good buying opportunities for investors. Throughout next week, I will personally be purchasing around 60,000 shares of Mexoro between $.85 and $1. If you already own the stock at higher levels, then this might be a good time to start averaging down on your investment. This of course holds true if you are still bullish on the company and their properties, as well as the sector.
I really feel good about the prospects Mexoro has on all of their properties. They are in fact some of the most impressive in the region and my team and I were fortunate enough to be able to travel there and see them first hand. We did our best to capture that for our members via the Mexoro Stockumentary, which I urge all of our members, both new and existing, to watch this weekend. If you have already viewed it, view it again. It usually takes more than once to truly understand the upside potential their properties have.
So in closing, I believe that the investors who wanted to get out of the stock have done so and now we have a nice base here to begin accumulating stock at.
If you have not viewed the Mexoro Stockumentary, you can do so by clicking the chart to the right.