Cornish Metals shares, digging for victory
8th July 2021 08:32
by Alistair Strang from Trends and Targets
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Its five months on the stock market have been a success, so analyst Alistair Strang studies the charts for signs of further upside potential.
Excited news headlines of a company striking silver in Cornwall certainly provided a bit of a ‘duh?’ moment. Despite being utterly unfamiliar with the geological strata of the area, a surprising research source had already informed me that silver from Cornwall was hardly something new. Quite the opposite, if the research source could be trusted!
Already armed with knowledge of Cornwall's 18th century past and the hunt for tin and copper in the area, the newspaper article on Cornish Metals Inc (LSE:CUSN) was approached with some scepticism, expecting an attempt to drive expectations, along with the share price, unrealistically high. Thankfully, Cornish Metals' own website pays suitable homage to the areas history, the company providing a reasonable history of the industry.
Our utter distrust for anything to do with Silver is fairly straightforward, regarding the price of the metal as dangerously manipulated, thanks to market events 10 years ago, in April 2011. We remain puzzled why there was never a financial investigation into the price movement and, to this day, our distrust remains to such an extent we never cover silver futures.
Presently trading at around $28, the big picture advises we shouldn’t be surprised if the market finds a reason to dump the price back to the $14 level, probably making the extraction process unprofitable. However, it appears Cornish Metals is about more than silver from Cornwall, their website even making mention of lithium. As a result, some further investigation is justified.
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From our numbers standpoint, share price movements next exceeding 15.2p calculate with an initial potential of 16.4p. With the share trading at 14.98p at time of writing, this hardly represents the most emphatic price jump. However, should 16.4p be exceeded, we can calculate a longer term secondary at 19p. Above this level, we shall need stir the tea leaves again as currently we cannot calculate higher.
To promote alarm bells, the share price will need to slip below 13p. Such reversal risks the clutches of reversal down to 9.75p with secondary, if broken, a bottom at 6.5p.
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.
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