Innovative Small Cap Stock at a ‘Good Point to Buy’

Source: Clive Maund   02/16/2022

Technical analyst Clive Maund charts this mineral exploration company and explains why he sees the stock as a strong speculative buy.

In December–January, Progressive Planet Solutions Inc. (PLAN:TSX.V; ASHXF:OTC) acquired Absorbent Products for C$16.3 million and then proceeded with a funding, with these two factors keeping the price of the stock restrained. However, on the 10th of this month the company announced the completion of the first sizeable tranche of the private placement, with the rest expected to be completed shortly, which will then no longer act as a restraining influence on the stock price. With the price now hard down on support this, therefore, looks like a good point to buy.

The company is now a much larger concern thanks to its acquisition of Absorbent, which had revenues of over C$20 million in its latest fiscal year, so the pattern that has formed on the stock chart over the past year is not thought to be a top — rather it looks like a consolidation, and with the price now hard down on quite strong support it looks likely that it will start higher soon, particularly as the Accumulation line has remained buoyant over the past year.

On the six-month chart we can see that if PLAN does succeed in breaking higher here, the current tight bunching of price and moving averages promises a significant rally, so it is rated a a strong speculative buy here, perhaps with a stop some way below the trendline. Note that it trades in very light volumes on the US OTC market where for this reason it should be avoided for now, or limit orders employed.

Progressive Planet Solutions website

Progressive Planet Solutions Inc, PLAN.V, ASHXF on OTC.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

 

Disclosures

1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Progressive Planet Solutions, a company mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosure

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.