Like clockwork, the markets imploded last Friday, but are on the mend again! It's amazing how resilient stocks can be when they have the wind at their back. Like so many traders always spout, the trend is your friend until proven otherwise. Couldn't be more true right now, that's for sure.
Not only has the S&P 500 gotten back its modest losses from late last week, it looks to be on its way to more new highs. It seems every time the market throws a curve at the professional investing community, they drive it up the middle for at least another base hit, and sometimes a homerun.
All I know is I'd hate to be the pitcher, or worse yet the short seller who keeps trying to get in the way of an ongoing bull market.
More importantly, we got some market moving news this morning from one of our featured stocks in Patriot One Technologies (OTCQB: PTOTF) (TSE: PAT.V), and another piece of good news from Alexandria Minerals Corporation (OTCQB: ALXDF) (TSE: AZX.V).
First, earlier last week we talked about the possibility of a technical reversal in Patriot One Technologies. The stock didn't disappoint, but it has pulled back a little following last week's nice pop to the upside. But just this morning, the developer of the award-winning PATSCAN CMRTM concealed weapons detection system, announced in the three months since product marketing began during the lead up to the ISC West trade show in Las Vegas, confirmed sales commitments now top $2.7 million.
Patriot One sales efforts are currently focused on categories including houses of worship, academic institutions, event centers, casinos, commercial offices, hotel properties, government agencies and other locations at high risk of terrorist attack. Orders have been received from locations spanning four continents, and new territorial opportunities are opening as reseller influence grows.
Patriot One President and CTO Dinesh Kandanchatha notes, "Our roll-out program initially conceived finalizing our engineering in early spring in order to meet Industry Canada and FCC certification requirements by late summer. This timing also aligns with our go-to-market packaging initiative and expectation that we will begin shipments to end-user installations by Q4 of this year."
As a result of recent sales performance, as well as new agreements with resellers in Canada, the US, the UK, and South Africa, Patriot One is now receiving requests to employ special waivers allowing for the immediate deployment of PATSCAN CMR to users that have a demonstrated need under certification exemption guidelines.
"We have informed our supply chain partners of the accelerating demand, and I am confident that our scalable manufacturing processes will be well equipped to fulfil our orders," says Kandanchatha. "It means a lot of work ahead, but it is a highly positive and not wholly unanticipated situation at this phase of our strategic growth plan."
Martin Cronin, Patriot One CEO, notes, "Proving out demand is a key factor for any early stage company with an exciting new product. The surge we are experiencing reflects the outcomes of repeated successful demonstrations of the system's capability. The word on Patriot One's weapons detection solution is spreading rapidly."
Cronin adds, "All of us at Patriot One Technologies are honored to have the opportunity to deploy a product with such value as a catalyst for positive change. To have an opportunity to improve public safety and to save lives as a basis for a successful business venture is something we all are very proud of."
I provided the full press release today, because it's important to understand the significance of today's PR. Not only is the stock starting to behave well, it does appear the company - at the same time - is also starting to get some fundamental traction too. Combined, that's a very deadly combination for a growth stock with the potential to move much higher over the next few months.
One thing's for sure, if Patriot One can continue to deliver this type of revenue implication, who knows just how the news could ignite PTOTF going forward.
Alexandria Minerals Corporation (OTCQB: ALXDF) (TSE: AZX.V) Gold Exploration Shows Promise
It's pretty well documented we've been opting for junior miners lately, because at some point when these markets have had enough, money should rush to gold. And, we're pretty convinced we've got some Canadian mining plays that should do well when it happens. We've already seen a bump in some of them, but the big runs aren't likely to come until gold really takes flight again.
Better to be in early than late though, so today's news from Alexandria Minerals Corporation is a welcomed event. Earlier this morning, the company announced new assay results from 5 Diamond Drill Holes ("DDH") drilled at the east end of its Orenada Zone 4 gold deposit in Val d'Or, Quebec. A total of 18 holes of the 35 holes drilled in the winter program have now been reported, with the results for 17 holes pending.
Here's the highlights of the results:
Multiple high-grade gold veins were intersected in 5 drill holes drilled on 2 sections designed to test extensions of gold mineralization to the east as well as above and below the 2009 resource;
Hole OAX-17-093 intersected several high grade veins between 50 metres depth and 350 metres depth, with up to 18.06 g/t Au over 1.00m, 4.10 g/t Au over 6.80m, including 13.28g/t Au over 1.00m, 9.29 g/t Au over 2.20m, and 8.45 g/t Au over 1.70m;
DDH OAX-17-096 intersected 2.03 g/t Au over 31.15m, including 14.10 g/t Au over 1.10m, and 3.06 g/t Au over 9.3 metres, including 11.10 g/t Au over 0.8 m;
Holes OAX-17-094, OAX-17-095, and OAX-17-097 all intersected veins with up to 5.11 g/t Au over 1.00m and 5.82 g/t Au over 0.80m, extending the veins across strike in a north-south direction.
If you want to read the press release in its entirety, go here: https://finance.yahoo.com/news/alexandria-confirms-high-grade-gold-150226245.html.
The bottom line was summed up when Eric Owens, President and CEO of Alexandria, stated, "We have had great success this year in our first sizable drill program to ever test for the high grade gold veins at Zone 4, and assays now show that we have been able to grow the vein system to 700 metres long by up to 350 metres deep. Although we are still in the early stages of identification and definition of the vein sets, we are consistently building volume with the step-out drilling we have undertaken. Our understanding of the geology of the gold veins is strengthening, and will be further bolstered when we begin our planned follow-up 30,000 m summer drill program in June."
As for the company's stock, it's behaving pretty well. As a matter of fact, despite the volatility in gold lately, shares of ALXDF have continued to move modestly higher ever since it found a bottom earlier in the year. I say modestly right now, but when you look at where it was back in November, it has doubled in very quiet fashion.
That's exactly the type of trading we like to see in small stocks - slow and steady moves higher. Remember, all it takes is one big discovery, and any junior miner is going to go absolutely crazy. We've got about five junior mining plays we've been talking about lately, and all it's going to take is one.
It's clearly a run to be the one right now, but I'd be very surprised if we don't see one of them hit pay dirt in a nice way by year's end. And who knows, maybe gold will be the investing vehicle of choice by then.