103x Return on Great Western Mining Corporation I think there is a good chance this is the bottom of the market for this stock.
With the precious metals bull market reigniting since October 2023 this stock has only declined further and many other mining companies in this sector have seen significant gains.
This is typical price action for a penny stock where there is no production yet.
I do however see there is a good chance the tide is about to turn and I now see a greater than 500 Reward to Risk ratio here with a 15% decline the maximum I would allow.
The expected upside is 10,200% which is equivalent to a 103x return.
It may take it’s time though to get going and reach those stages where there are some really nice candles up outpacing many of the large caps. So patience is key with this one and I wouldn’t recommend putting a huge amount in and instead you would be better off having your core allocation in the large caps.
One reason why I believe this opportunity is great is because I see the downside risk being limited to 15% which I also believe is the bottom of the market.
The short term downside risk on the larger caps is greater than this so I think it becomes a good opportunity because of this.
I do however expect the large caps generally to continue to outperform this penny stock over the short term but I think it is highly likely there will come a point where this stock starts to shoot up and outperform the large caps. So it may leave you frustrated for a while so my advice is to just allocate a small amount and leave it for 5-10 years.
8GW trade ideas
#GWMO – Sitting in level up strong support, ready for Q4 newsAfter discovering gold at shallow depths in multiple holes in its first exploration drilling at the Rock House project in Nevada, US, they are poised to announce the potential and results to the Trafalgar Hill step-out drill programme in Q4
