Source: Clive Maund 09/04/2024
In light of recent newsflow, Technical Analyst Clive Maund explains why he thinks Defense Metals Corp. is an Immediate Strong Buy.
The news flow for Defense Metals Corp. (OTC: DFMTF) has generally been very positive since the Spring, and so it is obviously paradoxical that its stock price has accelerated to the downside despite this. We will now briefly set out this news flow, and as we approach the present, the reason for this paradox will become apparent.
We start with the April 3 news release that Defense Metals hires HCF for Wicheeda financing review, the purpose of which is to to conduct a strategic financing review for the company's wholly-owned Wicheeda rare earth element (REE) project located in British Columbia, Canada.
A few weeks later, evidently impressed by Defense Metals' Wicheeda Project, Guy de Selliers de Moranville, president and co-founder of HCF, joined the board of directors of Defense Metals. Then, towards the end of April, the company announced that UCORE QUALIFIES WICHEEDA MIXED RARE EARTH CARBONATE FOR RAPIDSX TECHNOLOGY PROCESSING AT COMMERCIAL-SCALE FACILITIES, which is a major step towards getting the company's product commercially processed.
At the end of May the distinguished and experienced Suzanne Rich Folsom was appointed a director of the company. On June 20 Guy de Selliers advanced to become Chairman of the Board of Directors.
Mr. de Selliers stated: "Having reviewed the Wicheeda project and compared it to many others and engaging with the Defense Metals team, I am confident that the Wicheeda REE project possesses the essential qualities needed to emerge as North America's next rare-earth mine."
On July 10 it emerged that DEFENSE METALS' WICHEEDA RARE EARTH ELEMENT PROJECT CONSIDERED AS KEY BY THE GOVERNMENT OF BRITISH COLUMBIA.
On July 29, Defence Metals announced Management Changes that included Mr de Selliers advancing again to become executive chair of the board. Then, on August 6, the company announced a sizeable private placement pitched at 16 cents per unit, which was later pulled because the share price continued to tumble.
In light of all this good news, apart from the last item, why did the share price continue to drop and drop?
Now we come to it. Only about a week ago, on August 26 came the news that ...
