USGT Very Exciting News Alert
Fellow Investors,
The rebound in USA Graphite (USGT) shares continued on Friday as the usual intraday trading pattern held true and the shares rallied to a new high for the week during the afternoon. Volume picked up from a quiet start Friday morning to finish at just under 2.7 million shares, the best volume of the week.
After the close, management issued a comment on the U.S. Geological Survey's annual report on graphite, which was issued earlier this week. The USGS was very positive on the outlook for graphite demand and pricing and pointed out that, as of today, the United States is completely dependent upon foreign suppliers for its natural graphite.
USGT reiterated the company's strategy of becoming the dominant supplier of natural flake graphite, a vital strategic mineral to American industry. Graphite is too important for America to remain at the mercy of foreign suppliers, especially China. An investment in USGT is an investment in American graphite for American industry; an investment in a bright, high-tech future for the United States of America.
What a difference a week makes! A week ago, on Friday, January 11, USGT was hit with a second tidal wave of short selling, hitting a low of $0.39 before rallying back to close at $0.69 to form a hammer, a candlestick chart formation that indicates a reversal out of a down trend.
Well, that's exactly what happened. At today's close of $0.8870, USGT has rallied more than 28.5% from Friday's close and a staggering 127% from last Friday's low. Where were you? Did you participate in that rally? Are you ready for next week's move through $1.00 and beyond?
As we mentioned this morning, the USGT share price is being supported by the rising 20-day simple moving average ($0.7723) and the 7-day simple moving average ($0.7581).
Today's close also put USGT above the extended trend line that formed the bottom of the triangle pattern that formed on the chart between December 11 and December 21. That trend line had been resistance for much of the day today but, now that it has been breached, it is now support.
USGT is now only 8.1% below the all-time high of $0.9650 hit on January 8, the day before the massive short attack that drove the share price sharply lower on January 9, 10 and 11. Investors kept the faith and continued to buy USGT shares at bargain basement prices. Now the shorts are feeling the pain.
Some 19.6 million shares were traded on those three days when the USGT price collapsed but only 9.1 million shares traded all week this week. That means there are 10 million shares short yet to be covered at the very least. It's probably a lot more than that. Take advantage of the short squeeze to ride USGT right through the $1.00 mark on its way to $2.00 and beyond.
Earlier this week, the US Geological Survey released its annual report on the graphite market in the United States for 2011. The report showed that the United States imports all of its natural graphite, mostly from China, Mexico, Canada, Brazil and Madagascar. No natural graphite is currently being mined in the United States.
USGS data shows demand for graphite increasing dramatically. U.S. graphite consumption is closely tied to overall economic activity. After hitting a post-financial crisis low of 22,000 metric tons in 2009, U.S. consumption nearly tripled to an estimated 63,000 metric tons in 2011 and is thought to rising even further today.
Graphite prices are rising sharply in line with increased demand. The USGS report also showed that the price of natural flake graphite is rising much faster than other forms of graphite. In 2007, flake graphite averaged $499 per ton. In 2011, the average price was $1,170 per ton.
Consider that, right now, the United States mines none of its own graphite. That means that we are sending a lot of our hard-earned money to overseas suppliers—particularly China, which provides more than half of all of the graphite imported by the U.S. Mexico and Canada, America's other major graphite suppliers, are friends of ours but China does not have America's best interests at heart.
Now you can see why USGT's success is so important to the future of America's high-tech industry. Natural flake graphite, the raw material for graphene, the building block of the 21st century, is an important strategic mineral. USGT management plans to become the dominant American supplier of natural flake graphite.
New uses for graphite and its derivative, graphene, are being reported almost every day. Ultra-fast electronics, drug delivery systems, medical devices, artificial organs, new methods for removing radioactive contamination from water—these are just some of the new applications that have been reported in the scientific press this week. Once some of these new discoveries start to move from the laboratory to the marketplace, demand for graphite will skyrocket.
The company already owns the rights to two important graphite properties and has signed a letter of intent for a third, which would give USGT nearly 3,000 acres of graphite potential. USGT plans to be the dominant supplier of American natural flake graphite for Americans. Soon we will no longer need to rely upon China for our supply of this vital strategic mineral.
The chart is right, the product is right, the timing is right. Don't hesitate. Get your USGT now while it is still below $1.00.
Happy Trading!
Disclaimer: http://i.imgur.com/EteJS.jpg
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