the week ahead

Gulf Industrials Limited: GLF/GLFOB The quality of this company and its backers seems to be finally resonating with the market. As previously mentioned GLF has some significant backers behind it including African Lion and Jonah Capital. 2011 promises to be a watershed year for the company as it increases the production of Vermiculite, initially to 30K tonnes per annum (worth about $10m at current prices), and also moves other projects towards production, including the limestone project in Madagascar. News Due: Further details of plans to increase production of Vermiculite to 30Ktpa. Development plans for the Limestone Project in Madagascar including feasibility study, which is due to be conducted in the first quarter. Price Target: The stock is likely to break through the top of the rising wedge this morning which will provide a target of 10 cents. This is only a minor level of resistance with the next level being 20 cents. The potential upside here in coming months is around 300%. Disclosure: Holding GLFOB


The weekly shows the real potential of GLF. Friday's breakout was very significant. If you look at the resistance levels on the chart below there is only minor resistance at 10 cents. The next level after that is 20 cents. Given the potential developments occurring at GLF I expect this to be a star performer in the next few months.