Here, we're recommending a Mexican mining company for our precious metals series. The name is Industrias Penoles S.A.B., which trades over the counter as TPOAF.
Previously in this series, we have looked at Franco-Nevada (FNV) , Newmont (NEM) , SSR Mining (SSRM) , Agnico Eagle (AEM) , Wheaton Precious Metals Corp. (WPM) , Eldorado Gold Corp. (EGO) , Hecla Mining Co (HL) and Kirkland Lake Gold (KL) .
Penoles is the second largest Mexican mining company, the first Mexican producer of gold, zinc and lead and the world leader in silver production. The stock is thinly traded, so only seasoned traders should continue reading.
In this daily bar chart of TPOAF, below, we can quickly see how thin the trading is -- even the On-Balance-Volume (OBV) line jumps all over the place. Trading volume is erratic and the Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this 10-year weekly chart of TPOAF, below, we can see a long term down-trend. Prices have recovered a little in 2020, Trading volume has increased and the slope of the 40-week moving average line is now positive.
In this Point and Figure chart of TPOAF, below, we used weekly close only prices. Here the software is projecting an upside price target in the $39 area.
Bottom line strategy: This stock is thinly traded, so there could be a lot of "slippage" in buying and selling this name.
