ABOT Stock – High Volume Insane Upside Penny Pick

Posted by Admin on February 21, 2012 under Penny Stock Alerts Blog, penny stocks | 2 Comments to Read

Hello again everybody.  I’ve got a huge volume penny stock alert today that just two months ago was up 388% from the current price on multi million dollar volume!  The stock went to sleep and then woke up to a nice pop on well over a million dollars in volume today, and now may be headed north in a MAJOR way.

Gold is hot again and *surprise surprise* I think the best way to play gold is through small cap stocks.  Gold miners usually deliver more volatility than gold itself, and small caps usually have more volatility than large caps. Today’s play is a gold small cap penny stock that’s heating up fast.. ABOT – ABOT Mining Corporation.

About ABOT Mining

ABOT Mining Corporation, an independent exploration company, engages in discovering, acquiring, developing, producing, and marketing precious and semi-precious metal properties. The company intends to develop Las-Lagunillas Silver-Copper-Lead-Zinc Mining Project in Southern Peru. It also focuses on acquiring a 50% interest the Aztlan 8B Gold and Silver project that covers an area of approximately 300 acres located in the State of Nayarit in the Tecuala Mining District on the west coast of Mexico. The company was founded in 1957 and is headquartered in Sherman Oaks, California.

ABOT’s strategy is to buy small to mid-tier mining properties with significant growth potential. ABOT wants to maintain a very diversified portfolio of mining projects. That strategy could deliver steady profits by including different metals in different countries, diversifying both economic and political risk. That means they look for precious metals besides just gold, and they go into multiple countries, so if there are ever political problems in one country it won’t be too bad for the company.

It’s a very diverse smart strategy that most small cap gold companies I’ve come cross don’t really engage in.

They’re looking to balance safe, secure investments with immediate cash flow potential that will be combined with higher risk exploration projects that offer enormous potential rewards.

Big companies have generally focused their attention and resources on the exploration and production of mature semi-precious metals properties with significant proven and probable reserves. High prices of metals like gold and silver over the past few years have created an opportunity for smaller independent companies like ABOT to acquire and exploit smaller precious and semi-precious mineral properties worldwide. Higher prices make it possible to profitably mine small properties, but the big companies still need big returns to keep their share holders happy. They can’t always take the time to develop small properties with big potential because they need to make an earnings number every quarter and can’t take the risk – small companies can be more aggressive and take bigger risks which offer share holders far better potential returns.

ABOT thinks this strategy could pay off in Mexico. The company has teamed up with Rising Star S.A. de C.V., a Mexican corporation. ABOT and Rising Star plan on developing a gold, silver and copper project called Aztlan 8B Mining Project in the State of Nayarit in the Tecuala Mining District on the west coast of Mexico. The Tecuala Mining District has been identified as a major deposit of gold and other minerals. The area around the Aztlan 8B has been extensively explored and is already being mined by several known junior mining companies and geological institutions.

Mexico could be a smart place to do business. The mining industry is enjoying a global boom with both gold and silver providing big gains in the first two months of 2012. According to ABOT, the major industry players in Mexico are voicing confidence that this boom will continue for at least two more years, and they are planning significant expansion projects to take advantage of that. It costs less to do business in Mexico than in the United States so these projects could be very profitable even if metal prices fall from current levels.

From a miner’s perspective, Mexico remains significantly unexplored and recent geological surveys suggest that two thirds of the country has mineral deposits that are at least as significant as those of the currently operating mines. Mexico is a “gold mine” of untapped, well…gold mines. The country is actually among the biggest miners in the world – Mexican mines have produced 10 billion ounces of silver. The Mexican National Chamber of Mines (CAMINEX) reports that Mexico was the world’s second largest silver producer for 2010 and the country ranked eleventh in the world for gold production. Mexico’s mining output has reached record levels. In 2010, Mexico produced 2.7% of the world’s gold, accounted for 2% of the global copper production and mined 19% of the world’s silver.

Since 1995, mining exploration has become increasingly attractive in Mexico for foreign investors because of the North American Free Trade Agreement (NAFTA). Foreign mining companies (like ABOT) can now own 100% of a company and take advantage of the favorable geology, supportive environmental regulations and competitively priced labor. There is a deep supply of cheap, skilled labor for the mines…which ABOT could use to boost profitability.

All of these factors are coming together for the company and management seems to think that 2012 is going to be a big year.  The company recently announced its first production plan for Aztlan 8B Mining Project.

The total ore allocated to ABOT Mining is estimated to be up to 9 million tons. The company previously reported that initial flotation engineering results from the surface of the ore indicated a recovery value of 89.00% of the gold and silver and showed 2.51 ounces of gold and 19.00 ounces of silver per metric ton.

Those are very favorable numbers.

After the initial production run of 1,000 tons of ore in the beginning of 2012, ABOT is planning to increase the tonnage up to 10,000 tons per run. As production continues, ABOT expects the feed grade of the ore to improve from 2.51 to up to 10.00 ounces of gold per metric ton as the production team accesses the ore from beneath the surface.

ABOT is expecting a 300% increase!

At the low end of estimates, 2.5 ounces of gold per ton of ore in 1,000 tons of ore is worth about $4.25 million and 19 ounces of silver in that ore is worth more than $600,000. ABOT could be looking at nearly $5 million in metal for each 1,000 tones of ore. If the deeper ore yields 4 times more gold than the surface testing shows, each production run could be worth nearly $20 million.

The company plans to reinvest all proceeds from operations to get production moving quickly…with as much as $45 billion worth of gold on the property, it’s easy to understand why.

That’s all well and good, but you know all of these “long term” sexy possibilities only get me excited because of what they can do for the short-term trading action.

THE TRADING SETUP

Traders seem excited about the possibilities that are sitting under the ground of ABOT’s Mexican claim. The stock closed up more than 15% today on over 1.25 million in dollar volume! There is a lot of liquidity which makes this a great stock for a quick trade.

Big volume plus low share price always equals excitement.

ABOT is now more than 60% above Thursday’s lowest price and the momentum indicators have turned bullish as the stock broke out. RSI and MACD are both positive and JUST TODAY it broke through BOTH its 50-day and 200-day moving averages!

The technicals are as bullish as can be.

The past two trading days have seen both volume and price break out. ABOT formed a long and narrow basing pattern since the beginning of January. The stock traded for weeks between 2 and 2.5 cents. That area could now be support, which may possibly mean we are at the PERFECT place on the chart right now maximize profits.

I spotted this one right at the break out point. It’s been a very big mover in the past but has really been trading quietly since the end of December. I think that’s changed over the past few days based on the volume and I think we could see big gains in ABOT.

As bullish as this chart looks, ABOT could also reverse hard at tomorrow’s open or at any time.  All of my alerts are volatile and dangerous, so be sure to use a tight stop, book profits when they’re available, never let any one trade move too far against you, watch out for gaps, watch the stock closely to make sure it’s trading in a healthy way, and never risk more than you can afford to lose. (Amateur biased unlicensed opinions)

Here is what really has me going crazy for ABOT.

Look at how perfectly it brokeout just a couple months ago on insane volume.  On December 16th ABOT opened at 1.5 cents, and on many millions in dollar volume surged hard to CLOSE the day at 4.8 cents for a 220% 1 day gain from the open to the close.

Impressive.

A little over a week later it hit 7.32 cents for a gain of 388%!

These are NOT low volume flukes, these are multi million dollar volume trading days!!

ABOT is currently trading at only 1.5 cents, when just a couple months ago it traded 388% higher on massive volume.

ABOT got quiet but now volume has picked up and the price is roaring right along with it.

ABOT still has huge upside ahead, but now traders seem to be pouring into the stock in a big way.  Could ABOT have just started its second run back to the 7 cent level??

Keep a VERY close eye on ABOT tomorrow for a big breakout,

PSA – Stock Psycho

www.pennystockalerts.com

Don’t ever invest based on what I say, do your own research and consult with a licensed professional before investing, only invest what you are prepared to lose. Any statements and opinions given are amateur and biased and should be treated as such. Past performance does not indicate future performance in any way. Check the latest SEC filings before investing, and research other information on the risks of investing in penny stocks at www.sec.gov

READ IMPORTANT DISCLAIMER

Disclaimer – This newsletter is a paid advertisement, not a recommendation nor an offer to buy or sell securities. This newsletter is owned, operated and edited by IPR Agency LLC, a California Limited Liability Company. Any reference to “we” or “our” refers to IPR Agency LLC. By reading our newsletter and our website you agree to the terms of our disclaimer, which are subject to change at any time. We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and are therefore unqualified to give investment recommendations. Always do your own research and consult with an licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and is for entertainment purposes only. At most, this communication should serve only as a starting point to do your own research and consult with a licensed professional regarding the companies profiled and discussed. Companies with low price per share are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold our site, its editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters or on our website. We do not advise any reader take any specific action. Losses can be larger than expected if the company experiences any problems with liquidity or wide spreads. Our website and newsletter are for entertainment purposes only. Never invest purely based on our alerts. Gains mentioned in our newsletter and on our website may be based on EOD or intraday data. This publication and their owners and affiliates may hold positions in the securities mentioned in our alerts, which we may sell at any time without notice to our subscribers, which may have a negative impact on share prices.  We have been compensated sixty thousand dollars cash via bank wire to conduct two days of investor relations marketing for ABOT by a third party, Equities Awareness Group. This compensation is a major conflict of interest in our ability to be unbiased regarding the company(s) discussed in our alerts. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the third party or parties. The third party, profiled company, or affiliates of either likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. IPR Agency LLC never owns a position in the companies discussed in our communications, email or otherwise, unless otherwise stated in this disclaimer. We have not been compensated in any way for the mention of any other companies named in this communication, and we own no position in any of them. Frequently companies profiled in our alerts may experience a large increase in volume and share price during the course of investor relations marketing, which may end as soon as the investor relations marketing ceases. The investor relations marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur. Our emails may contain forword looking statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our email newsletters and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company’s website and press releases, but is not researched or verified in any way to ensure the publicly available information is correct. Furthermore, IPR Agency LLC often employs independent contractor writers who may make errors when researching information and preparing these communications regarding profiled companies. Independent writers’ works are double-checked and verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent contractor writer’s communications regarding the profiled company(s). You should assume all information in all of our communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the information contained in our written communications. The information in our disclaimers is subject to change at any time without notice. See full disclaimer at www.pennystockalerts.com/disclaimer