In a recent Penny Stock Detectives article, editor Sasha Cekerevac notes that the volatile swings in silver prices have left the door open for junior mining companies to become undervalued, offering a good entry point for the long-term investor.
New York, NY (
prHWY.com) June 21, 2012 - In a recent Penny Stock Detectives article, editor Sasha Cekerevac notes that the volatile swings in silver prices have left the door open for junior mining companies to become undervalued, offering a good entry point for the long-term investor. Cekerevac believes MAG Silver Corp. is one such company that is expecting drill results in the third quarter, which could propel the stock price higher. "MAG Silver is a Canadian exploration company focused on its silver properties in Mexico," explains Cekerevac. "A country like Mexico has been shown in the past to be friendly to junior mining companies." According to Penny Stock Detectives, for the quarter ended March 31, 2012, the company drilled 8,330 meters on its properties. This is approximately 23% of the budget for drilling in 2012, which is on schedule. The company has an independent firm analyzing the results and it is expected to be released before the third quarter, notes Cekerevac. The editor feels that this report is extremely important, as it will provide an early blueprint for how the rest of the year will shape up for MAG Silver. Concerning the technical chart of MAG Silver, following the move up from the latest low at approximately $7.00, a $3.00 move would put it in the $10.00 range, points out Cekerevac. The $10.00-$10.50 area is also where MAG Silver has pivoted several times the past year. This area is also the top of a long-term resistance level, comments Cekerevac. "For MAG Silver to move higher, it will take quite a lot of momentum to break through this area. If it does, then we should see a significant move for MAG Silver. If the stock hits a wall of sellers, then it might pull back and form a trading range before the stock breaks out either higher or lower. At this point, it would be prudent to await the drill results before investing in MAG Silver," Cekerevac advises. To see the full article and to learn more about Penny Stock Detectives, visit
www.pennystockdetectives.com.
The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at
www.pennystockdetectives.com.
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