We hit the jackpot with this one, so it was a bit silly of me to say that traders might want to think about taking some money off the table on Friday morning—silly because the Montalva solar energy project deal that Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) has done with PREPA (Puerto Rico Electric Power Authority) is going to end up being worth about C$10 a share, and I've heard it said that it could be a $17 stock. The deal now moves on to final approval by the Puerto Rico Energy Bureau (PREB) and the Puerto Rico Financial Oversight and Management Board (FOMB). This process is expected to last two to three weeks (from now) and should be a mere formality, a rubber stamp job.
We bought the stock back at the perfect entry point 2 weeks ago as it completed a bull Flag, since which time it has accelerated into a vertical ramp on news of the deal being clinched, as you will see on the latest 6-month chart shown above. With this deal being worth approximately C$10 per share it is clear that the stock is probably on its way to this level, however, that said, we can expect to see some jitters and profit taking in the days leading up to the final approval, so we will keep an eye on it and "play it by ear" as this time approaches. Since it is already super critically overbought on its RSI indicator after Friday's big jump, we can expect it to hit some profit taking "air pockets" from now on, and anyone who wants in or wants to add to positions should do so on any larger intraday dips, but as the date of final approval approaches in a couple of weeks we may look to take profits.
Greenbriar Capital website.
Greenbriar Capital Corp, GRB.V, GEBRF on OTC, closed at C$2.98, $2.15 on 29th May 2020.
Originally posted on CliveMaund.com at 1.15 pm EDT on 31st May 2020.
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.
[NLINSERT]Disclosure:
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 below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Greenbriar Capital, a company mentioned in this article.
Charts provided by the author.
CliveMaund.com Disclosure:
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.
