is a company that has developed an organic, environmentally friendly process for removing arsenic from gold in the country where it is operating, Ecuador. This is especially important since many miners and mining companies employ arsenic when extracting gold. After much preparation, the company has recently been granted a permit to build a plant for this purpose and needs to raise US$20 million to construct it, and it looks like it should have little trouble doing so.
Unlike mining companies, it is not at serious risk from lower gold prices since it gets paid a percentage of whatever gold it processes, and of course, it has no exploration risk. Around current gold prices, the company will make a 20 – 25% margin after tax. While the number of shares in issue is a little on the high side at 193 million, of these, 49% are owned by insiders, management, and strategic shareholders.
Bactech Environmental stock was just ready to break out of a giant multi-year base pattern, having received the long-awaited final ESIA permit approval from the Ecuadorean government late in November when the country slid toward anarchy and chaos some weeks later with rioting in the streets and drug gangs running amok.
The fear factor resulting from this caused the stock to slide lower, but as we will see when we peruse the charts, the stock did not break down and has not suffered significant technical damage, so the larger bullish picture remains intact, and with the new Ecuadorean President Daniel Noboa taking a firm grip on the situation having declared a state of emergency and imposed Martial Law to the relief of many of the population and major drug lords having been arrested, the country appears to be returning to a state of relative stability and normalcy.
This being so, we are being presented with an opportunity to pick up BacTech stock at better prices before it starts higher again, which is the principal reason for this article now.
We will start by looking at the long-term 12-year chart, which enables us to grasp the big picture better and understand what we will then see unfolding on shorter-term charts. On this chart, we can see that a fine giant Cup & Handle base has been building out since as far back as 2013, which means that this pattern has been forming for over ten years now, so it clearly has major significance, especially as the volume pattern is consistent with it being genuine and the good news for investors is that the pattern is now complete and it is viewed as no coincidence that the pattern completed with the company being granted the ESIA permit approval from the Ecuadorean government.
The political and social turmoil of the past couple of months, which is starting to look like it will ease with the new government taking a firm grasp of the situation, caused the stock price to dip back, thus presenting investors with what might turn out to be the final opportunity to pick up the stock at a very low price ahead of a breakout from the giant base.
Before leaving this chart, it is worth noting that the price will have to reach 18 cents, which is three times the current price before it even starts to break out of the enormous base.
Moving on, the 3-year chart (which is actually a little over three years to enable us to see all of the steep rallies to complete the right side of the Cup) shows all of the Handle of the pattern. As we can see, it is essentially a very large, gently downsloping trading range.
After the upside momentum following the rally to complete the right side of the Cup fizzled out, it corrected back to a support level at 6 cents, and after hitting this level on November 22, it bumbled along sideways in a fairly narrow range bounded by 6 cents on the downside and 10 cents on the upside all last year and found itself back at 6 cents again in recent weeks thanks to the recent turmoil in Ecuador, but as mentioned in the first paragraph of this article, this looks set to ease which should encourage renewed interest in the stock.
Lastly, we will take a look at the 6-month chart, which shows recent action in much more detail, in order to observe a couple of positive developments over the past week or two. The first of these is the appearance of a bullish candle on the chart late last month right at the support where the price closed at the day’s high on strong volume — this looks like a reversal candle, and the relative strength of the Accumulation line at that time and since supports this assertion.
So, there is thought to be a good chance that BacTech will advance from here.
BacTech Environmental is therefore rated a Strong Buy here for all timeframes.
BacTech Environmental Corp., BAC.CSX, BCCEF on OTC, closed at CA$0.06, $0.043 on February 9, 2024.
|Want to be the first to know about interesting Gold and Alternative - Cleantech investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
- BacTech Environmental Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, BacTech Environmental Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of BacTech Environmental Corp..
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed
- Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
For additional disclosures, please click here.
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. 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.