Speculators Start Going GAGA for Glen Eagle Resources (GER, TSX-V)

Flashback to August 28, Friday Footnotes:

How to explain recent price action?

A guy by the name of Karl Trudeau (no relation to Justin) is probably the reason GER is getting some volume and price action lately. Trudeau joins Glen Eagle as COO following a few big wins with Nouveau Monde Graphite (NOU, TSX-V) and Gratomic (GRAT, TSX-V). Both those stocks have had 10 x runs. If my sources are correct, Glen Eagle will be raising around $700,000 — 7-cent paper with a full 8 cent warrant. Seems as though Trudeau would participate. Another lead investor will be a guy who participated with us when Newlox was trading 5 cents per share.

The difference that new strategic investors and management can make, quickly, can be amazing!

Would love to see that in some other plays

GER has run from 9.5 to 15.5 cents in less than 2 weeks.

One strategy is to wait patiently for a pullback and then pounce. The rising EMA-8 and EMA-20 will serve as support following a heavy volume breakout. Like Newlox (LUX, CSE) before it, this looks like GER's time to go for a run. Both companies now have several similarities including a small production plant, "green" processing methods, plus exploration options.

Caveat being Glen Eagle has had a harder time, thus far, sourcing material to feed their processing plant. Then again Newlox has promised ample amounts of high-grade material (8+ grams Gold) and the stock price has performed really good despite not delivering on forecasts/timelines. GER trades for about 1/4 the valuation versus LUX.

Glen Eagle's Cobra Oro International "Tax Free" Zone

Glen Eagle's Cobra Oro's processing facility is currently built for approximately 200 tpd processing capacity. Located in Choluteca, Honduras, the plant sits within an international "tax free" zone (tax free status will last for 12 years).

The company has 2 exploration concessions in country. Piedra Dorada is wholly-owned and Moloncosa is a 50% participating interest with a local mining family.

Two Exploration Concessions... CONCESSIONS

Both concessions are located less than 30 km from Glen Eagle's processing plant. Each property is said to be easily accessible all year via main roads. Pictured lower right, a "super enrichment" zone was discovered on the Moloncosa property last year.

Interesting looking rocks but little or no drilling (further exploration) has been completed since making the announcement and showing off pictures. Prior to the 2 most recent financings Eric Sprott held a 13.5% equity position. Not material for him, however it could be considered a selling point for GER. It is on his watchlist.

In summary: GER is making a run. The stock's broken above its 200-day SMA on heavy volume. Odds are that points to a continuation of this move underway. If you're looking to jump in on a runner, 12 cents/low teens would be an opportunistic entry/adding point.