This is a speculative stock that I have been keeping my eye on lately. MLS has a number of mining interests covering nickel, zinc, copper, gold and uranium. It’s that last commodity that has drawn interest from investors. The company is tied up in a legal battle in the Namibian courts over the land title to their potential uranium resource. At present the case has been heard in its entirety and the sitting judge has retired to consider his decision.
The company has released statements indicating that they are confident of the merits of their presented case and that they expect a judgement within the next 1-4 weeks. This is where it gets interesting. This share has steadily been climbing as indicated by the chart below:
To me the most telling indicator on this chart is the volume that has been built since the mid April spike. It looks like this stock now has some increased interest from investors and I’d suspect that interests is in the outcome of the Namibian court case on their Uranium play.
If the results of the court case takes weeks and drags out then I’d suspect some investors will be shaken off and a retrace of the share price could follow. If this occurs and the share retraces back to sub 3 cents per share then I like it at that price and may take a position. There seems to be some support at that level and it would allow a reasonable exit should the court case go against the company interests. Looking at the potential upside on this share, I would not be surprised that if a retrace occurs and the company recieves a positive result that the price could easily exceed the recent highs of 4 cents per share.
Happy Trading.
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