Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Analyst Says Co.'s Stock Could Skyrocket
Contributed Opinion

Share on Stocktwits


Analyst Clive Maund says Kainantu Resources Ltd.'s stock could take off if it makes a discovery at its properties in Papua New Guinea.

This is a very interesting situation. Kainantu Resources Ltd. (KRL:TSX) is a junior that is just in the process of completing a significant funding that will be used to drill its properties that are close to K92 Mining Inc.’s (KNT:TSX.V) big discovery.

So let’s start by looking at what happened to K92’s stock price when it struck. As we can see on its five-year chart (Figure 1), it rocketed from about CA$0.50 to CA$9.00 for an 18-fold gain, which is certainly impressive.

So let’s have a look at a map (Figure 2) on which we see that Kainantu’s properties are on either side of the K92 mine that made the big discovery in Papua New Guinea, and close to a range of other discoveries, too. So it is clear that if Kainantu found something significant here — and the chances are good that it will — its stock could take off like a rocket from its current low level.

In light of the map (Figure 2), the latest stock chart (Figure 3) presents an appealing picture for it shows that it is attractively priced here after its slow drift lower from a minor peak back in May at almost CA$0.40.

While this stock chart doesn’t look very inspiring at first glance, it starts to look a whole lot better when you factor in that the company is completing an oversubscribed financing at CA$0.18 and will use the proceeds to drill its land that is close to K92’s big find and close to other finds too, as set out above. Note that there isn’t much more chart history — it only goes back about a month more than is shown here.

Figure 1


Figure 2


Figure 3


Kainantu is therefore rated an immediate speculative buy here. Note that currently it only appears to be traded on the Canadian market.

Kainantu Resources' website is here.

Kainantu Resources Ltd, KRL.TSX, closed at C$0.17 on Jan. 4, 2022.

Clive Maund has been president of, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.



1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Additional Clive Maund disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) 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 Kainantu Resources Ltd., a company mentioned in this article.

Charts provided by the author. Disclosures:
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.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Resources Report Newsletter Free and be the first to know!

A valid email address is required to subscribe