We will have much more on Kent Exploration (KEX, TSX-V) in the coming days as we believe it is gearing up for a STELLAR month of March, driven by drill programs anticipated at two highly prospective properties – Gnaweeda in Australia, a joint venture with Teck, and Alexander River in New Zealand, a former producer that contains an historical non-compliant resource of 640,000 ounces of gold with potential for much more as we outlined in our report yesterday. Make no mistake about it – these properties both have serious home-run potential for Kent which has assembled a first-rate geological team that has been hard at work since last summer laying the groundwork for successful drill programs.
From a technical perspective, Kent is signaling it’s ready for a big move. The chart below says it all. Kent got oversold in February and was held within a tight trading range between its 100 and 200-day moving averages. That all changed yesterday when it broke through resistance and closed above its 50 and 100-day moving averages. All of Kent’s moving averages are now in bullish alignment (the 50 actually reversed a couple of weeks ago, which was the first clue this stock was about to turnaround). We expect Kent will soon test upside resistance at its 52-week high of 24.5 cents, likely react back down toward 20 cents, and then stage a major breakout that could carry it significantly beyond its all-time high of 37.5 cents.
Kent is one of the best-managed junior exploration companies we have ever come across and is led by the very focused and determined Graeme O’Neill who has assembled a highly qualified team, both in-house and in the field. Mark our words – the market is going to fall in love with this company in the not-too-distant future, so the time to be positioned in this stock is NOW. Kent’s current market cap is a paltry$6.8 million.
Kent closed yesterday at 18.5 cents on just over 300,000 shares. This is a tightly-held stock and since the company has refused to do any cheap financings, there are no “overhang” issues. O’Neill is invested heavily in this company himself.
