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Is It Time To Take Profits On MITU Resources Inc (OTCMKTS:MTUU) After Gigantic Rally?

Is It Time To Take Profits On MITU Resources Inc (OTCMKTS:MTUU) After Gigantic Rally?
Written by
Ryan Mitchell
Published on
March 4, 2018
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MITU Resources Inc (OTCMKTS:MTUU) has spiked to all-time highs in a span of one month, begging the question whether it is time to take profits and walk away. The surge has come on a high turnover with shares traded clocking record highs of 1.5 million.The gigantic rally follows the acquisition of a novel self-starting vertical axis wind turbine, which provides the company with unique growth opportunities in the renewable energy space. After initially spiking to the $1.72 mark, the stock has pulled back to the $1.21 handle. MUTUU Daily ChartThe pullback in our view is a minor correction, from which the stock could spike higher given the strength of the upward momentum. The stock faces immediate support at the $1 a share mark, below which it could drop to the $0.70 handle. Resistance on any upward movements is at the $1.72 mark, above which the stock could register a new 52-week high.What Does Mitu Resources Do?Mitu Resources is a wind energy technology company. Initially, the company was engaged in the exploration acquisition and development of mineral properties. In the recent past, it has switched focus to renewable energy technologies.The company has acquired rights to a self-starting wind turbine as it moves to target clients looking to leverage wind power for various applications. The company has specifically set its eyes on California’s cannabis industry.Catalysts behind Recent Stock Rally The acquisition of rights to WindShark, a novel self-starting vertical axis wind turbine, has been the main catalyst behind the stock’s recent resurgence. Pursuant to a license agreement with Headwind Technologies, the company acquired rights to develop and commercialize certain proprietary inventions and know how related to WindShark.The rights also give Mitu Resources worldwide exclusivity excluding Canada to distribute WindShark. The Proprietary vertical axis windmill has three curved helical blades that are designed to capture airflow from any direction at lower wind speeds.Most wind turbines in the market start producing wind power at wind speeds of above 7mph and only hit peak levels at wind speeds of above 30mph. WindShark, on the other hand, starts generating power at wind speeds of below 2mph and can hit peak efficiencies wind speeds of between 6mph and 10mph.

“WindShark, due to its innovative blade design and ability to harvest energy from relatively low-speed winds, is able to deploy economically in as much three times as many locations compared to conventional small wind turbines,” said CEO, Simeon Leonardo Reyes Francisco.

What Next The acquisition of WindShark presents Mitu Resources a unique opportunity to target customers in the fast-growing California cannabis industry. Indoor, cannabis growers in the state must comply with environmental laws regarding the use of renewable energy sources.WindShark wind turbine should be an economical option for cannabis growers, in the state, looking to utilize wind power in running greenhouses at relatively lower costs. According to the Chief Executive officer, there is a huge potential to deploy the self-starting wind turbine across the state.California is one of the states that has legalized the medical and recreational use of Marijuana.

“With a compact design factor that harnesses the operational dynamics of a shark’s gills to create reliable and safe power, WindShark could be ideal for numerous untapped applications, particularly in projects with lower peak energy consumption and in areas with low wind speeds that have not previously been ideal for wind power generation,”’ said CEO, Mr. Francisco.

Mitu Resources has already paired the WindShark blade design with a commercially available generator marking an important milestone in the advancement of the WindShark Turbine technology. The integration paves way for the company to deploy the wind turbine for commercial applications much sooner.What Next For Mitu Res after Breathtaking Rally A 100% spike in under a month is sure to arouse concerns among investors given that MTUU is yet to sell any product as it transitions into the wind power generation business. To some, the stock might appear overvalued at current levels even on the recent pullback.In our view, a further pullback from current levels should act as a good buying opportunity given that the WindShark wind Turbine has proved to have the potential to generate significant revenues for the company.The fact that the WindShark wind turbine is relatively cheap and can generate wind power at low wind speeds means it commands a competitive edge as demand for renewable sources of energy gains momentum. Targeting California cannabis market is another smart move given the law requires growers in the state to deploy renewable energy sources in their activities.It goes without saying that Mitu Resources is on the cusp of something big as it moves to make a name for itself in the renewable energy business. Once commercialization of the WindShark wind turbine starts, the company should be able to generate significant revenues consequently shareholder value.We will be updating our subscribers as soon as we know more. For the latest updates on MTUU, sign up below!Disclosure: We have no position in MTUU and have not been compensated for this article.

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