We bought American Eagle Gold Corp. (AE:TSXV) way too early back in January and ended up with a serious paper loss as it continued to drift lower and lower on financial woes.
But the work that American Eagle has been doing on its NAK property is good and has borne fruit.
Monday morning, it got a massive vote of confidence when the news emerged that it is to receive a major strategic investment by the mighty Teck Corp., which is Canada's pre-eminent copper producer.
This news means that the company no longer has financial problems and can now move ahead boldly with its ambitious 2023 drilling program at its potent NAK property.
Small wonder then that on Monday morning's news, the stock broke out, gapping higher on strong volume out of the fine Cup and Handle base shown on our 6-month chart.
Within 10 minutes of the news appearing, an email was sent out to subscribers saying that the stock was an immediate Buy. In the event, it didn't gain much on the day from its opening price, but it doesn't matter because this news of the Teck investment in the company is a game changer and means that we can expect the stock to continue to advance to much higher levels from here, especially if gold really starts to pick up as looks likely.
Therefore, since today's move marks just the start of a major revaluation of the stock, especially if good drilling results are forthcoming later in the year, the stock remains a strong speculative Buy at the current price.
American Eagle Gold Corp.'s website.
American Eagle Gold Corp. closed at CA$0.14, $0.11 on May 8, 2023.
Originally published on clivemaund.com on May 8, 2023, at 7:27 pm EDT
Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Eagle Gold Corp., a company mentioned in this article.
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.