Penny Stock
In the past two months shares of Mexoro reached an interim high of $1.53 putting us up over 19.5%. Unfortunately, the recent broad market pull back has taken down just about every stock and Mexoro was not spared. In just the past thirteen trading sessions Mexoro has seen a retracement of over 31% on pretty decent volume. We think this presents a very good opportunity for those who have been sitting on the sidelines watching.
Shares of Mexoro closed Wednesday at $1.05 per share which is roughly 18% less than where it was when we first profiled the company. With 21 million shares outstanding, the market cap is $22.5 million. Mexoro raised $3 million dollars in a private placement last year to explore its properties in the Sierra Madre gold belt in the Chihuahua region. Originally we believed that this financing was creating an overhang on the stock but so far this has not been the case.
From April 19 till July 24th, there HAS NOT been a day where Mexoro closed under $1.00. It has broken below this level during the trading day only to see investors come in and support the stock. For a microcap stock, its been quite a feat that over 12 million shares have traded during the past 68 trading days. The 6 million shares at $0.50 from the $3 million financing have probably been sold or investors are holding for the long term. The strength in Mexoro’s stock is testament to investors’ belief in the company. This current retracement is either the start of a new leg down or just a great buying opportunity. Based on the chart and how the fundamentals are shaping up we believe the latter to be the case.
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