Rare Earth miner Avalon Ventures (AVL) hits trailing stop at 50% gains

Posted August 7, 2008

Our rare metals miner Avalon Ventures (AVL:TSE) triggers our trailing stop.

by J. Christoph Amberger

Baltimore — (TFN): Our Indium speculation Avalon Ventures (TSE:AVL) had overed between 65-70% gains over our initial recommendation from March 27. (See “Indium IPO: Buy or pass on this rare-metal IPO?”)

Last time we updated you on this stock, we wrote:

“At this point, we’d just like to shore up our current gains by establishing a stop loss somewhere in the area of C$1.73, which in the case of a steep drop in the share price would get us out with 50% gains intact.”

Today’s decline triggered that trailing stop. We’re booking 50% gains on this play in less than five months and will exercise caution returning to the rare earth and commodity super-cycles stocks until we confirm current trends.

***Scientists have developed a simple, painless test to diagnose a debilitating disease afflicting an estimated 5.1 million Americans. The number of new cases is expected to increase to 454,000 a year by 2010—and 959,000 new cases a year by 2050. An independent peer-review study found the level of accuracy to be over 90%! Most impressive, given the incredible size of the market for the test alone: This below-the-radar stock trades below $5 a share – way below! Find out how you can position yourself for MAJOR gains…

****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Sign up through your favorite reader here. Or, if you prefer, have the feed delivered to your email