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Beacon Research Issues TraderNotes on CPRK, FCX, NEM, MTTG, MBRK for January 25, 2008

Today’s TraderNotes include: Copper King Mining Corporation (Pink sheets: CPRK), Freeport-McMoRan Copper & Gold, Inc. (NYSE: FCX), Newmont Mining Corporation (NYSE: NEM), Material Technologies, Inc. (OTCBB: MTTG), MiddleBrook Pharmaceuticals, Inc. (Nasdaq: MBRK)

 

Copper King Mining Corporation (CPRK) TraderNote – CPRK Sets its Sites on “Going Green” in its Ore Processing

 

Copper King Mining Corporation (CPRK) closed yesterday at 0.30, a slight negative change of 0.02 or a decrease of 6.25% from the previous close 0.32.  Copper King Mining Corporation, a company that engages in the extraction and mining of ores, will employ the most environmentally friendly processes possible on a best efforts basis.  It has recently set its sites on “going green” in its ore processing.  Copper King will always use the best processes available to protect the groundwater and ecosystem as it develops the assets under its control.  The decision to go green reflects conscionable concerns new management has from their many years of experience, and with their desire to inform the world on their concerns, they have entered into a contract with Clear Vision International based in Los Angeles, California, to represent the Company in several areas of public relations.  Copper King Mining Corporation currently owns approximately 1200 acres in the Drum Mountains of Utah, which are patent deeded mining claims that contain Gold, Silver and Copper.  The Company recently added to its holdings by filing 6 more claims on land that was inside their holdings, and contiguous to that acreage is approximately 1100 acres of claims filed by Western Utah Copper Company, which holds a total of approximately 90,000 acres of mining claims.  As the companies explored the concept of a joint venture on the Drum Mountain properties upon Copper King's 100% purchase of Western Utah Copper Company, it was decided that a very viable consideration was to join the total assets of both companies.  The new company will keep the name Copper King Mining Corporation and the stock will not be reversed in this merger.  In yesterday's daily chart, almost all technical indicators for CPRK are in the positive zone with the stock trading above its 50-day and 200-day moving averages.  RSI indicator so far reflects a reading of 69.38%, bullish with no confirmation of an overbought condition.  MACD indicator with the 12-day EMA at 0.053 and the 26-day EMA at 0.036, and the histogram reading at 0.017 also reflects a strong bullish signal indicating that moving averages are increasingly trending upwards.  Slow Stochastics indicator is also in the positive territory with readings of 83.25 %K and 87.67 %D, indicating no exhausted condition.  With share prices hitting the stock's 52-week high of 0.39 last January 23 establishes it as a significant resistance level which if broken becomes the next support or buying entry point for the stock.  The psychological resistance of 4.0 is the stock's immediate target before further trending higher. 

 

 

Freeport-McMoRan Copper & Gold, Inc. (FCX) TraderNote – FCX's Annual Sales Surged to $4.2 Billion, Q4 Earnings Fell 3% on Decline in Copper Prices at End of Quarter

 

Freeport-McMoRan Copper & Gold, Inc. (FCX) closed yesterday at 83.43, a positive change of 6.13 or an increase of 7.93% from the previous close of 77.30.  Freeport-McMoRan Copper & Gold, Inc., through its subsidiaries, engages in the exploration, mining, and production of copper, gold, and silver. It holds interests primarily in the Grasberg open pit and the Deep Ore Zone mines in Indonesia. The Company also owns interests in the Grasberg block cave, Kucing Liar, Deep Mill Level Zone, Ertsberg Stockwork Zone, Mill Level Zone, Big Gossan, Dom open pit, and Dom block cave. In addition, it smelts and refines copper concentrates, and markets the refined copper products.  As of December 31, 2006, it had 2,813,089 metric tons of proven and probable recoverable ore reserves.  Freeport-McMoRan Copper & Gold, Inc. sells its concentrates containing copper, gold and silver primarily to companies in Asia and Europe, and to international trading companies.  Although 2007 sales surged to $4.2 billion, from $1.6 billion in the prior year, which the Company attributed to its strength in large-scale copper and molybdenum operations in the Americas, the Company reported that its fourth-quarter earnings fell 3% because of the decline in copper prices at the end of the quarter compared with the beginning.  With the acquisition of copper miner Phelps Dodge in March for $25.9 billion, Freeport-McMoRan just finished paying off the $10 billion debt in the fourth quarter.  Freeport-McMoRan said it expects to expand production in 2008 in the Democratic Republic of Congo, the Americas, and Indonesia.  The Company forecasts consolidated sales from mines in 2008 of 4.3 billion pounds of copper, 1.3 million ounces of gold, and 75 million pounds of molybdenum.  In yesterday's daily chart, FCX's RSI indicator reflects a reading of 38.28%, in the bearish area but almost indicating an oversold condition.  MACD indicator so far is bearish with the 12-day and 26-day EMAs in the negative zone with readings of -5.104 and -3.383, and histogram reading at -1.721, reflecting a drop in the moving averages.  Slow Stochastics indicator however, with readings of 27.11 %K and 18.71 %D, is confirming an almost oversold condition to signal a buying move upon the return of both lines back above the 20% threshold.  The same chart also reflects a small technical gap formed by Jan. 23rd 's close at 77.30 and yesterday's open at 79.27, reflecting a bullish signal as initiated by the upward trend reversal to indicate a buying move in the near-term. 

 

Newmont Mining Corporation (NEM) TraderNote – NEM Expanded its Equity Stake to 93% From the Previous 78% in Miramar Mining Corporation 

 

Newmont Mining Corporation (NEM) closed yesterday at 52.97, a positive change of 2.47 or an increase of 4.89% from the previous close of 50.50.  Newmont Mining Corporation engages in the exploration, acquisition, and production of gold properties in the United States, Australia, Peru, Indonesia, Ghana, Canada, Bolivia, New Zealand, and Mexico. As of December 31, 2006, it had proven and probable gold reserves of approximately 93.9 million equity ounces and an aggregate land position of approximately 44,470 square miles. The Company also produces copper in Indonesia. Newmont Mining Corporation was founded in 1916 and is headquartered in Denver, Colorado. Recently, Newmont Mining Corporation announced that through Newmont Mining B.C. Ltd., its indirect wholly-owned subsidiary, it expanded its equity stake to 93 per cent from the previous 78 per cent in Miramar Mining Corporation, a Canadian gold company that controls the Hope Bay Project, which is one of the largest undeveloped gold projects in North America. Newmont Mining B.C. Ltd. acquired 189.4 million shares at Canadian $6.25 cash per share.  In yesterday's daily chart, NEM's RSI is in the neutral zone of 53.48%, with no confirmation of an exhausted condition.  MACD indicator with the 12-day EMA at 0.810 and the 26-day EMA at 1.043, above the 0 level, but the histogram reading at -0.233 indicates a weak bearish signal.  Slow Stochastics indicator reflects readings of 38.24 %K and 41.45 %D, inclined towards the neutral zone of 50% with the lines horizontally oriented and with no confirmation of an exhausted condition.  If the stock closes above the 53.00 level at the end of this session, prices may find their way to the next psychological resistance level of 54.00.  

 

Material Technologies, Inc. (MTTG) TraderNote – MTTG Gains Strong Potential with its Unique Fatigue Fuse Device

 

Material Technologies, Inc. (MTTG) closed yesterday at 0.78, a negative change of 0.09 or decline of 9.83% from the previous close of 0.86.   Material Technologies, Inc. engages in research and development of metal fatigue detection, measurement, and monitoring technologies in the United States. The Company develops devices and systems that indicate the true status of fatigue damage in a metal component.  It produces Fatigue Fuse, a device that integrates the effect of fatigue loading in a structural member.  It is designed to be affixed to a structure to give warnings at pre-selected percentages of the fatigue life that has been used up.  The Company also develops Electrochemical Fatigue Sensor, an instrument that detects very small growing fatigue cracks in metals. Its technology is applicable to various market sectors, such as bridges and aerospace, as well as ships, cranes, railways, power plants, nuclear facilities, chemical plants, mining equipment, piping systems, and heavy iron.  Material Tech owns the only nondestructive testing technology able to find growing cracks as minute as 0.01 inches-critical information that allows structural engineers to isolate and repair the more than 100,000 steel bridges in the US that have been classified as structurally deficient or functionally obsolete by the Federal Highway Administration. Material Tech has exclusive rights to seven patents along with $8.3 million in already completed contracts from the US Government for research, testing and validation of its innovative solutions.  In yesterday's daily chart, MTTG's RSI indicator is in the positive zone with a reading of 65.36% but confirming an overbought condition in the near-term indicating a selling signal with the figure crossing the 70% threshold downwards from above this level.  MACD is in the positive zone with both the 12-day and 26-day EMAs above the 0 level with readings of 0.052 and 0.001, respectively and the histogram reading at 0.051, to indicate a bullish signal.  Slow Stochastics indicator with readings of 71.31 %K and 81.41 %D is in the positive zone but reflecting an immediate oversold condition to indicate a selling signal in the near-term.  However, if MTTG closes above the 0.70 level at the end of this session, prices may find their way back to the higher range next week.  

 

MiddleBrook Pharmaceuticals, Inc. (MBRK) TraderNote – MBRK Received FDA Approval on its Moxatag Tablets as Treatment for Strep Throat

 

MiddleBrook Pharmaceuticals, Inc. (MBRK) closed yesterday at 2.99, a positive change of 1.74 or an increase of 139.20% from the previous close of 1.25.  MiddleBrook Pharmaceuticals, Inc. engages in the development and commercialization of anti-infective drug products for the treatment of infectious diseases. It develops a proprietary, once-a-day pulsatile delivery technology called PULSYS. The Company's pulsatile product candidates include Amoxicillin PULSYS for adults and adolescents with pharyngitis and/or tonsillitis; and Keflex PULSYS product candidate, based on the antibiotic cephalexin, which is in Phase I clinical trials for skin and skin structure infections. In addition, MiddleBrook Pharmaceuticals sells its Keflex products in both capsule and powder formulations for the treatment of skin and skin structure infections, and upper respiratory tract infections primarily through pharmaceutical distributors and wholesalers to physicians, hospitals, and pharmacies in the United States. Shares of MiddleBrook Pharmaceuticals Inc. (MBRK) nearly tripled yesterday after the drugmaker received Food and Drug Administration (FDA) approval to market its once-daily, 775 milligram Moxatag Tablets as a treatment for strep throat in adults and children 12 years and older.  In yesterday's daily chart, almost all technical indicators of MBRK are pointing north.  RSI indicator reflecting a reading of 86.74%, with the line steeply curved upwards, reflects a strong bullish signal to indicate a buying move.  MACD likewise with all the lines in the positive territory with readings of 0.159 12-day EMA and 0.046 26-day EMA, and the histogram reading at 0.113 indicates a strong bullish signal or buying move.  A sharp move of the prices was triggered by fundamentals reflecting a wide technical gap formed in the same chart from January 23rd 's close at 1.25 and yesterday's open at 3.48, indicating a strong bullish signal as initiated by the upward trend reversal. Slow Stochastics indicator so far with readings of 49.93 %K and 50.20 %D are in the positive-near neutral territory. Expect a consolidation of prices during this session before resuming its upward trend.  If the stock closes above the 3.0 level this session, prices may continue its upward trend next week as the stock's weekly chart reflects a rounding bottom formation to indicate a bullish signal or buying move, with the psychological resistance of 4.0 as its immediate target before proceeding further upwards.

 

 

 

Beacon Equity Research Disclosure

 

The analysts contributing to this report do not hold any shares of Copper King Mining Corporation (Pink sheets: CPRK).  Additionally the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. The analyst(s) writing this report recognize and aspire to all of the CFA Institute Guidelines for Independent Research. Beacon Equity Research (“Beacon”) certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analysts in the report. Beacon Equity Research and its affiliates have been directly compensated six thousand dollars from a non-controlling third party for enrollment of CPRK in its research program. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change.
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