Morning Stock Pick U.S. Gold (UXG) 6/2/09

Jun 02, 2009

U.S. Gold has one of the largest mineral land positions in Nevada and they have just shown quite impressive results in Mexico.  They are owned by Rob Mcewen who built Goldcorp.  Rob has success in building gold companies and rewarding his shareholders.  Rob has decided to invest his own money in exploration as a way to leverage your investment in gold.  UXG is an exploration company which means that if they make a discovery an investor may make huge gains.  Their land position in Nevada is located right next to some of the biggest mines in America in one of the most friendliest mining states.  The drill results in Mexico that they reported are great and may be a major discovery.

 

I would buy here as UXG broke out of a symmetrical triangle pattern on above average volume.  They have a conference coming up on Wednesday and I would not be surprised if an announcement may be made that would break this stock through $2.75 to $7.