BTT.V – Not Quite Yet

by JDH on November 25, 2006

Recommendation: Buy above 85 cents (when a new high is made).

According to the Bitterroot website:

“Bitterroot Resources Ltd. provides investors with multi-commodity, North American mineral exploration exposure. In British Columbia, the Company has the option top earn a 75 percent interest in the Mineral Creek high-grade gold project, which covers 55 square kilometres near Port Alberni, BC. Bitterroot is also also exploring the GK Gold/Silver Project, near Beaverdell in south-central BC and the North Brenda Molybdenum/Copper project located 50 km west of Kelowna, BC. Drilling is planned on the GK and North Brenda properties in the fall of 2006.
In Michigan, Bitterroot owns recorded mineral title interests in approximately 461 square miles of lands and has entered into an exploration joint venture with Cameco Corporation covering a 700 square mile area of interest. The Company also leases over 1,800 acres of mineral rights from the State of Michigan and has been granted prospecting permits covering 3,480 acres of US federally-owned mineral rights.”

The company has just completed two rounds of financing ($2.5 million and $750,0000, both in Canadian dollars), so they have cash on their balance sheet for future exploration.

Therefore this is a play on uranium, gold, and other minerals.

This is an exploration company, with no income (except for interest), so this is a speculative investment.

Technical Analysis: As the chart indicates, we are approaching the 52 week high of 85 cents. New highs are a good buy point, so I would wait until it gets there, and then start buying (since it is equally likely that a double top will happen if it can’t get through the red line). The MACD is also getting high, so postponing buying is the prudent move.