Whilst it had taken considerably longer to break higher than we expected when we bought it in April, the pattern in Char Technologies (YES:TSX) has remained positive throughout, and it gapped higher on big volume on the major news that the biggest steelmaker in the world, ArcelorMittal, is to buy 11 million of the companies' shares with the option to purchase more shares in the company later at a fixed price (70 cents).
The company could not hope for a bigger vote of confidence than this, which is viewed as a very bullish development indeed.
The reason for this development is that Char turns forestry waste products into various renewable energy products, and ArcelorMittal, presumably keep to display its "green" credentials, can use its energy products in its steelmaking.
On the latest 6-month chart, we can see that, although Char rose sharply yesterday, it did not quite succeed in breaking out above the resistance at the top of the large Ascending Triangle pattern that has formed in recent months.
However, the move was on big volume and accompanied by a sizeable gap, which is viewed as strongly bullish, so it is expected to succeed in breaking out to new highs soon and then continue higher.
We, therefore, stay long, and Char is rated a Buy here for continued advance.
Char Technologies' website.
Char Technologies Ltd. closed for trading at CA$0.77, $0.60 at 1.40 pm EDT on April 25, 2023. Note that it trades in very low volumes on the US OTC market, where limit orders should always be employed.
Posted on CliveMaund.com at 1.45 pm EDT on July 6, 2023.
Sign up for our FREE newsletter
Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Char Technologies Ltd.
- 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. 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.
- This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. 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.
For additional disclosures, please click here.
CliveMaund.com Disclosures
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.
