The Gap Between The Top 3 Narrows In July 2019

Although member ‘iram53’ continues to sit in first-place for this month’s Stock Challenge, the gap between the Top 3 is beginning to narrow. With an average total return of 66.13%, iram53 is still a whopping 25% above member ‘bob4001’, who is in second place with a return of 41.15%. However, bob4001 is far from safe—member ‘turtle_named_Mack’ is back with a vengeance in the Top 3 again, boasting a return of 40.18%. If iram53 falls from grace this month, we could have an insanely close Stock Challenge on our hands…

HTC Purenergy Inc. Breaks Out While Medallion Resources Ltd. Breaks Down

Stock Challenge’s biggest stock breakout of the day goes to HTC Purenergy Inc., a developer of proprietary gas, liquid and biomass extraction systems. HTC Purenergy Inc. traded roughly 270,000 shares today, rising 34.33% from C$0.67 to C$0.90 in the process. Although news has been slow for most of 2019 for HTC Purenergy, the company announced earlier this month that it had entered into an agreement with Canaccord Genuity Corp. for a C$15 million bought deal private placement.

Via HTC Purenergy Inc.,

“HTC Purenergy . . . announced today that it has entered into a letter agreement with Canaccord Genuity Corp., as sole bookrunner and lead underwriter on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” private placement basis, 15,000,000 units of the Company (the “Units”) at a price of C$1.00 per Unit (the “Offering Price”) for aggregate gross proceeds of C$15 million (the “Offering”).

Stock Challenge’s biggest stock breakdown of the day, on the other hand, goes to Medallion Resources Ltd., a company pursuing smart production of magnet metals. Medallion Resources Ltd. traded roughly 715,000 shares today, falling 27.03% from C$0.18 to C$0.14. Medallion Resources announced this month that it was evaluating US and Canadian jurisdictions for a rare-earth plant.

Via Medallion Resources,

“Medallion Resources . . . is seeking third party proposals to advance its development of a North American rare-earth extraction plant. One proposal calls for evaluation of logistics and plant siting options in both the US and Canada; while the other, development of the process engineering design for Medallion’s rare-earth flowsheet.”

The decision to build a new rare earth plant was prompted by the rising demand for rare earth metals, according to Don Lay, Medallion Resources’ President & CEO.

“In the last two months, rare earths have been front and centre due to the Chinese-US trade friction and their growing importance in the electrification of transportation, particularly EVs. As a result, prices of the key magnet metals such as NdPr, have moved up over 25% during that period,” said Don Lay, President & CEO. “We feel it is the right time to initiate the evaluation of plant sites for a commercial monazite processing plant as a key part of re-building a North American rare earth value chain.”

Only 9 trading days remain in this month’s Stock Challenge, so don’t forget to sign up for next month! If you haven’t already, you can reserve your picks for the August 2019 Stock Challenge here.