Profiling Meteoric Resources

Profiling Meteoric Resources

Now that the US Presidential election is almost over we are looking forward to a world that will have presidential induced volatility. Over the last four years we have seen tweets from the President jerk the market one way or the other, to no obvious purpose. Maybe now there will be a little more logic in market movements. The virus and its economic impact will continue regardless, and there will be no stop to pumping money into the economies of the world.

The gold price thematic will continue and government debt levels will rise as if it doesn’t really matter because everyone is doing it and there is no country not playing that game. So, there is no-one to enforce fiscal or monetary discipline.

Meteoric Resources (MEI) is a company with an interesting mix of high grade gold projects in Brazil along with big picture porphyry targets and lower grade gold in the Halls Creek region of WA. With a market capitalisation of $74m, after peaking at $90m a few weeks ago, are the shares going higher or lower from here? Was the recent heavy fall a pullback within a longer term uptrend, or was the high as good as it is going to get for the foreseeable future. We have to consider the merits of its projects as well as where we are in the speculative market cycle.