The Stock of Liberty Star Uranium & Metals Corp. (OTC:LBSR) Stays High and Overbought
09 Jun 2011

It is hard to achieve something and twice harder to keep it. So says an old proverb. Fortunately, the shares of Liberty Star Uranium & Metals Corp. (OTC:LBSR) are up to this task. After the eruption in late May, they were able to maintain the high price levels, though on lower trading volumes.

About two weeks ago, when Liberty received the first draft of the NI 43-101 technical report on the Tombstone Porphyry-Precious Metals Project, LBSR simply flew to the skies. In three sessions, the stock made a huge gain climbing 60% up – from $0.028 to $0.045.

What is better, is that in the days to follow the shares even went a little higher, and on Wednesday finished at $0.053. LBSR continues to remain in the overbought area. We shall see whether is has the potential to progress further up in the near future.

Liberty is a corporation concentrated on the exploration of mineral deposits in the states of Arizona and Alaska. The assets in Alaska are held in the name of the company’s wholly owned subsidiary – Big Chunk Corp.

The latest financial reports, filed by the company, reveal not a very lovely picture. The reader can see total current assets of $1.1M and total current liabilities of $3.3M, which is an indication of a negative working capital. This implies it will be perhaps hard for LBSR to advance substantially in terms of price.

In addition, the statements show a large loss of $19.8M for the twelve months ended Jan. 31, 2011. The greater part of it – $13.2M – came from settlement expenses. The variety and the potential of the company’s properties, however, provides a good base for us to have better expectations about the future of Liberty.

Liberty is a corporation concentrated on the exploration of mineral deposits in the states of Arizona and Alaska. The assets in Alaska are held in the name of the company’s wholly owned subsidiary – Big Chunk Corp.

The latest financial reports, filed by the company, reveal not a very lovely picture. The reader can see total current assets of $1.1M and total current liabilities of $3.3M, which is an indication of a negative working capital. This implies it will be perhaps hard for LBSR to advance substantially in terms of price.

In addition, the statements show a large loss of $19.8M for the twelve months ended Jan. 31, 2011. The greater part of it – $13.2M – came from settlement expenses. The variety and the potential of the company’s properties, however, provides a good base for us to have better expectations about the future of Liberty.

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