Interactive Investor

Analysis: Ferrexpo, Geiger Counter and Jubilee Metals

12th May 2021 08:00

Alistair Strang from Trends and Targets

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These three stocks are all on a tear right now. Can they keep going higher? 

We like to cover shares where folk have been emailing us. Sometimes, we’ve a suspicion they might ‘know a thing or two’ with opportunities being revealed. But we flinched at being asked to investigate Geiger Counter's (LSE:GCL) potentials. 

The device, used to measure radiation, is probably the last thing we want to hear about, following a year with Covid-19. Another detail is Europe’s top secret nuclear weapons store just along the road from us, local wisdom strongly suggesting if we ever see anyone waving a Geiger counter around, drive fast in the opposite direction!

It transpires the company Geiger Counter enjoy surprising aims, to provide returns to shareholders through their investment in the exploration, development, and production of uranium to supply the nuclear power industry, the ultimate green solution which everyone tries to pretend shall not be necessary. The organisation is not in the business of supplying radiation detectors to the paranoid here in Argyll, Scotland.

Their share price is showing early signs of becoming useful this year, the price now trading higher than any point in the last nine years. Something has certainly changed with its prospects with a near-term potential of above 45p bringing some movement potential to an initial 51p. 

However, given the share is trading at higher levels, thanks to breaking its long-term downtrend, our inclination is to take a Big Picture long-term approach, and suggest above 45p should now enter a cycle toward an initial 56p with secondary, if exceeded, at 67p.

We can calculate beyond such a level but will prefer to take another look if our initial target levels make an appearance. For everyone to receive a good scare, the share price needs close a session below 31p as the implications become quite troubling.

Source: Trends and Targets. Past performance is not a guide to future performance

It’s easy to conclude Jubilee Metals (LSE:JLP) is essentially an upmarket scrap dealers, given their mission statement: “Jubilee Metals Group Plc is an industry leading metal recovery business focussed on the retreatment and metals recovery from mine tailings, waste, slag, slurry and other secondary materials generated from mining operations.”

A one-time addiction to watching TV documentaries covering the efforts employed in recovery of gold, either from the sea, rivers, holes in the ground, or even discarded printed circuit boards, teaches us the complex processes in use are truly impressive. 

Needless to say, Jubilee appear to be hunting a broad portfolio, including lead, zine, vanadium, copper, and even cobalt.

Their share price is showing some useful potentials with a near-term nudge above 22p now looking capable of triggering slight movement to an initial 25p. If exceeded, our longer-term secondary calculates at 33p. Above such a level, we’d prefer taking a hard look into our crystal ball as its prospects are quite surprising.

Presently trading around 20p, their share price needs to dig below 13p to spell trouble as 8p calculates as “ultimate” bottom.

Source: Trends and Targets. Past performance is not a guide to future performance

The third-largest exporter of pellets to the global steel industry, Ferrexpo (LSE:FXPO) is located in Ukraine where they presumably inhabit a very big hole in the ground. Established for more than 40 years, they are London listed as members of the FTSE 250.

The share price has been making some extraordinary movements this year, the price finally choosing to accelerate beyond a roughly three quid glass ceiling which has been clouding things since 2011. 

The immediate situation feels quite optimistic, needing growth above 500p to promote the concept of travel to 533p. Our secondary is quite a surprise, calculating at a longer term 571p which will be a new all-time high.

Currently trading around 480p, it requires below 277p before an investment in running shoes becomes essential!

Source: Trends and Targets. Past performance is not a guide to future performance

Alistair Strang has led high-profile and 'top secret' software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know 'how it worked' with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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