Skip to main content

The Globe and Mail

McEwen Mining Inc. provides exposure to a proven wealth creator

Hi Lou,

Can you comment on MUX?

Thanks,

Story continues below advertisement

Jules

Hey Jules,

I hope you and all of the other investors that follow this blog enjoyed a wonderful holiday season and are ready to MAKE 2013 – LUCKY 13!!

McEwen Mining Inc. is driven by Rob McEwen who owns 25 per cent of the company while taking no salary and backstopping a recent $60-million rights issue. Clearly Rob is as committed to MUX as the pig is to bacon. The company has no debt and $75-million in the bank. A stated goal of management is to qualify for the S&P 500 by 2015 and to increase their production of gold, silver, and copper.

A review of the charts will help inform my analysis of the shares of MUX.

The three-year chart indicates the downtrend that dominated trading from the 2011 high at $9.50 to the low of $3.00 in December of that year. There was an aggressive move to $6.17 by Jan. 31, 2012, but it was short lived. Worth noting is the double top that surfaced by the end of February 2012 signaling a reversal that saw the shares fall to $2.02 by the May 23, 2012. What is also worth examining are the buy and sell signals generated by the MACD and RSI as the shares hit tops and bottoms in 2012.

The six-month chart illustrates that a gentle up channel has developed since November of 2012 with the stock meeting resistance along the 50-day moving average. Unfortunately there are no strong signals that would support a buy or a sell decision. What is clear is that if you were interested in MUX you would be best to actively trade it for profit.

Story continues below advertisement

If you like this story you should start building a core position and add to it on pullbacks and take profits when available. McEwen is a bona fide wealth generator in the precious metals mining game and has a substantial personal stake in the outcome of this venture.

Make it a profitable day and happy capitalism!

Have your own question for Lou? Send it to lschizas@globeandmail.com.

Report an error
About the Author
Lou Schizas

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality - and a true believer in the happiness-inspiring powers of capitalism. More

Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.