Analyst Clive Maund reviews Trailbreaker Resources’ latest rating with the acquisition of their Eagle Lake property.
Trailbreaker Resources Ltd. (TSX-V: TBK;OTC: APRAF;FRA: KCG) was not unduly affected by the recent rout afflicting the sector and technically looks ready to advance following several months of corrective action on the back of a sector recovery from oversold in sympathy with an expected broad market bounce. However, in addition to this, we have the news just out from the company this morning that it has succeeded in acquiring the highly prospective Eagle Lake property from Teck Resources. Helping the cause is the fact that Trailbreaker stock is at a historically low price within a long base pattern and only has 12 million shares in issue, and thus clearly has big upside potential from here.
On the six-month chart, we can see that we are at a good entry point now after the orderly downtrend from late February which looks rather like a bull flag. It is oversold here and the Accumulation line is positive…
On the 10-year chart, we can see that the stock looks amazingly cheap on a historical basis, as it got to over CA$14 back in 2012, which is about 56 times the current price! At first, I suspected that the current low price might be at least partly due to stock dilution, but that is not the case as there are only 12 million shares in issue.
In conclusion, Trailbreaker stock looks like a very good value here with a very favorable risk/reward ratio since the downside is limited while the upside is unlimited, with a good chance that its improving fundamentals, especially with the news of the acquisition of the Eagle Lake property will get it moving against the background of a sector recovery move, and may trigger a breakout from the Pan base show non its long-term chart above. Therefore rated an immediate speculative buy.
Trailbreaker Resources website
Trailbreaker Resources Ltd, TBK.V, APRAF on OTC, closed at C$0.23, $0.18 on 17th May 22.
Originally posted on CliveMaund.com on May 18, 2022.
Clive Maund has been president of www.clivemaund.com, 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.
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1) Clive Maund: I, or members of my immediate household or family, own shares 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. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures are below. I determined which companies would be included in this article based on my research and understanding of the sector.
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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.