This is a fascinating stock. Owned by Russian interest in the middle of the US wilderness (Montana) it stays under most peoples radar. They are miners of white gold, platinum. We have done very well with it and hope to continue that record (see previous blogs). Here are the updated charts;

We are changing our count to a very large A-B-C X A-B-C or double zig-zag. The X is the intervening leg. If you look closely you will notice that both A-B-Cs have more or less identical structures (fractals). If correct the next big move should be wave C of the second A-B-C. If it compares well to the same corresponding wave C of the first A-B-C, it should be rather nasty and ultimately should make a new low. As usual we have no idea what might trigger such a sharp move. Perhaps new ways of building catalytic convertors, perhaps geopolitical turmoil or perhaps a leap in the alchemists’ science. Time will tell but we would sell now.

Back in April 2009 this stock was recommended for a move up in wave 3. It was a little under $3 at the time. Since then it had moved up considerable;

It got to $26 and then started breaking down. It looks like 5-waves up followed by an a-b-c down. The down part is clearly not yet complete but should be around $10.50 or so, where wave 4 of previous degree resides and where the rise from the lows will be corrected by about 62%. These miners dig up palladium and platinum, both precious metals that are also of commercial use particularly in catalytic converters . You win both ways!

March 12 I recommended this stock without mentioning a specific price but it was trading at $2.74 so lets just assume that it was bought at $3. We recently traded above $5 which would be a 60% gain, so i will book that as 30%. Here is the chart.

Despite getting out I think the stock can trade to $7 or higher.

Stillwater has been a great trading stock. The Russians own it, it is situated in the Montana mountains, they dig up platinum and they are certified green, that is they do not make a habit of pouring arsenic into the local rivers. Platinum is a precious metal but for some reason has never gotten on women’s radar screen even though it is more expensive than gold. It is an industrial metal used to make catalytic convertors for the exhaust systems for cars (think green). Now we know that the car industry is going to hell in a hand basket but that is really only here in N-America, the Chinese just bought more cars than the Americans! Convertors are also used in woodstoves and other such “burn”devices.

Here is the detail;

Last time I bought some at $8 thinking the low was in (it was not but I always aim for 2 chances). This time we know the low had a $2 handle so we wont be making that big an error. What is attractive is that the first leg up from the low is an unmistakable 5 –wave affaire. It is then retraced almost 100% in a second wave so now we should get 3 or at least C.