Please view my last post from January 15th in which I predicted a major deal to be worked out for General Moly. Six weeks later Hanlong comes in and finances General Moly’s Mt. Hope Project.

The major concern was the financing of this massive molybdenum mine and now this deal solidifies General Moly’s future. Management understands that now they are in a position of strength and the share price for any acquisition now must be a lot higher than before this deal occurred. This is the reason why they protected shareholders that any interested acquirer must negotiate with the board.

This recent breakout moves my target up to $6 which will be a 200% increase from my original recommendation at $2.

Disclosure: I own shares of GMO, bought at $2.