Here's a chart from my good friend Hurricane_Rick along with an explanation of why MDMN has done what is has since Nov 2011. I can only add that I personally believe MDMN will be a $4-$5 stock within 12 months as the drill program and other projects are negotiated.
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The last 4 months it has traded like a larger cap stock with a high beta and has shown very clear trend signals since November, 2011. Most significantly in my opinion is the 20-day moving average. MDMN has traded above that this entire run. Until the recent consolidation phase, the entire upward channel was trading above the 20MA. It makes for a great barometer of this bullish trend and when to buy on pullbacks.
The current trend MDMN finds itself in is because in late 2011 the company revealed that it had been in negotiations to either JV or sell its potentially "World Class" Alto de Lipangue (ADL) copper/gold/silver/moly properties just outside of Santiago Chile. More recently the company announced that it has chosen a final suitor who will be paying $180 million for 85% of ADL. They will also be paying $5 million to further drill and prove up the property which can potentially increase the purchase price linearly based on results.
A lot of details regarding the deal came out in the 2/11/12 and 2/12/12 shareholder's meeting in Las Vegas where the company emphatically stated the "deal is done" and everything will be revealed "shortly" once final formal signatures have taken place and we are lifted from the NDA. We are now waiting for final signature, the NDA to be lifted and the "publicly traded major" mining firm to announce the deal. The expectation by shareholders has been any day for the last couple of weeks. This has been reflected in the consolidation phase of the chart since 2/12. Yesterday, MDMN broke out of this consolidation phase which was represented by a nice ascending triangle.
MDMN has been stigmatized for 14 years for being close, but never being able to land the big one for their ADL joint venture. The run-up last year was caused by MDMN being close to landing the JV which ultimately failed due to that prospective JV partner's failure to perform the final payment (MDMN is seeking legal remedies from that ex-partner). So there are a lot of people who still don't believe that the current deal is real or will go through which has caused a bit of FUD among some shareholders. However, recent events and disclosure by the BOD have bolstered investor confidence that this deal is real, it is happening very shortly and it will be an unprecedented monster for a non-reporting pinksheet trading under .20.
I've annotated a daily chart below along with major time line events to give you an idea of why the chart has reacted as it has. It is important to note that all pullbacks have been very short lived as they have been met with extremely strong buying support.
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The last 4 months it has traded like a larger cap stock with a high beta and has shown very clear trend signals since November, 2011. Most significantly in my opinion is the 20-day moving average. MDMN has traded above that this entire run. Until the recent consolidation phase, the entire upward channel was trading above the 20MA. It makes for a great barometer of this bullish trend and when to buy on pullbacks.
The current trend MDMN finds itself in is because in late 2011 the company revealed that it had been in negotiations to either JV or sell its potentially "World Class" Alto de Lipangue (ADL) copper/gold/silver/moly properties just outside of Santiago Chile. More recently the company announced that it has chosen a final suitor who will be paying $180 million for 85% of ADL. They will also be paying $5 million to further drill and prove up the property which can potentially increase the purchase price linearly based on results.
A lot of details regarding the deal came out in the 2/11/12 and 2/12/12 shareholder's meeting in Las Vegas where the company emphatically stated the "deal is done" and everything will be revealed "shortly" once final formal signatures have taken place and we are lifted from the NDA. We are now waiting for final signature, the NDA to be lifted and the "publicly traded major" mining firm to announce the deal. The expectation by shareholders has been any day for the last couple of weeks. This has been reflected in the consolidation phase of the chart since 2/12. Yesterday, MDMN broke out of this consolidation phase which was represented by a nice ascending triangle.
MDMN has been stigmatized for 14 years for being close, but never being able to land the big one for their ADL joint venture. The run-up last year was caused by MDMN being close to landing the JV which ultimately failed due to that prospective JV partner's failure to perform the final payment (MDMN is seeking legal remedies from that ex-partner). So there are a lot of people who still don't believe that the current deal is real or will go through which has caused a bit of FUD among some shareholders. However, recent events and disclosure by the BOD have bolstered investor confidence that this deal is real, it is happening very shortly and it will be an unprecedented monster for a non-reporting pinksheet trading under .20.
I've annotated a daily chart below along with major time line events to give you an idea of why the chart has reacted as it has. It is important to note that all pullbacks have been very short lived as they have been met with extremely strong buying support.
