Next Big Bottom “Bounce” Trade Already Running
What you’re about to read about is a trade.
The last part is the key that makes a great trade.
We saw the same recently with Bed Bath & Beyond before it soared from $1 to $5.
And with Carvana which was $4 earlier this year and is now $27.
Mining Stock Breakout
TMC the metals company (TMC) is one of the vestiges of the SPAC mania of the bubble years.
No deal too impractical or long term wasn’t worth a few hundred million in new capital.
TMC was one of those deals.
It is a mining company focused on tapping the vast undersea resources.
This is an idea that has been around for a long time.
It makes sense in theory.
High grade minerals are at the surface undersea and don’t require the huge, expensive open pits like on land mining.
It has never happened though because the engineering challenges are too great for the few hundred million dollars that have been ventured on undersea mining to overcome.
That’s not saying that it won’t be overcome.
Just that it won’t anytime soon.
So that’s why the run in TMC the metals company (TMC) is just a trade.
The stock is bouncing, has a great story, and could keep running for a while more.
TMC is a great set up.
It’s a stock that collapsed (it is down from $10 to right around $1 today)...
It’s got a great “story.” It has massive undersea resources and has positioned itself as a “battery metals” play.
There’s no fundamental reason to buy it. It’s a company that doesn’t have any real plan to produce significant revenue for years. So all “hope” has been lost.
Yet, despite all that, it’s going up.
We’ve seen these turnaround plays just fly from lows.
TMC has all the potential to be the next major recovery bounce play.
Consider shares of TMC the metals company (TMC) today while they’re right around $1.00 per share.