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*sponsored by US GoldMining Inc, see disclosures below |
Jeff Bishop here to give you a quick update on my newest bright idea from yesterday: |
US GoldMining, Inc. (NASDAQ: USGO) |
The market overall was pretty choppy, but USGO stood out against a backdrop of stocks that are having a tough time making new highs right now. |
If you look at the price chart, it was a very solid session. USGO seemed to climb higher nearly all day long, and it ended up near the highs of the day. |
Even today, it is starting to heat up in pre-market trading. I can't wait to see what this one has in store for us next! |
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The gold stock rally comes as no surprise to me though. |
I have been following gold stocks very closely, and with all of the uncertainty over interest rates and global growth, the whole sector appears ripe for gains. |
We have been seeing a lot of buyers come back into gold stocks over the last few weeks. |
Just look at how much gold has moved higher recently. After testing the $1900 level in June, it has rallied all the way back to nearly $2000. |
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If we can see gold break through the psychologically important $2000 level again soon, I think it will spark an even bigger rally in the entire sector. |
A "rising tide lifts all boats," as they say. |
In fact, just look at the trading action for gold stocks – today. |
The gold miner ETF is already starting to breakout higher in premarket trading this morning (even as the SPY is trading lower)… |
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USGO is one of those ideas that not a lot of people are talking about, yet. |
I want you to get this on your radar and make sure you do your homework on this idea right now. |
USGO just completed a recent IPO on the Nasdaq, and has quietly been one of the better performers. |
Not just a good performing gold stock – but compared to any stock. |
Following the IPO in April, USGO soared over 70% as investors clamored for the stock. |
Even cooling off a bit, USGO is still trading over 30% higher than its IPO price. |
This is a very tough market for IPOs, as you know, so the fact that USGO has been able to garner this much support from investors really says a lot about the company, I think. |
I sent you all the details on why I like this idea so much yesterday, but I copied the highlights below again so you can revisit it right now. |
Have a great trading day! |
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After 12 years of market domination from tech and intangible assets, it looks like miners are finally about to come back into the spotlight as the price of gold creeps up towards $2,000/oz… |
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Meaning that now is the ideal time to start swooping in on the players that stand to benefit the most from an incoming surge in precious metals — |
So ask yourself, do you think the best bet right now is with an overpriced mega-cap mining company, or a smaller, more nimble recent IPO that has proven the ability to make double-digit moves (USGO made a 70%+ move higher from its IPO price at one point already!)? |
USGO is uniquely positioned with an incredibly low $12 price tag right now… that one analyst is projecting to hit $20: |
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Which isn't a surprising projection when you consider the fact that insiders own 85.15% of the company, leaving just 1.8 million shares available to the public |
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Such a low float creates a setup where relatively low amounts of buy pressure can lead to dramatic upswings like the 18% pop we saw a few weeks ago… |
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The run-up that saw the stock surging 16% back in May over a 48 hour period… |
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And the 54% leap we saw just a few weeks before that — in just four days. |
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"But Jeff, what makes you think it could happen again?" |
I have three words for you — |
"The Whistler Project" |
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When it comes to gold, this is exactly the kind of resource (no pun intended) that could see the USGO picking up tremendous amounts of steam. |
Let me break down the math for you: |
In the Whistler Project alone, we're looking at 3 MILLION ounces of gold equivalent (comprised of 70% gold and 30% copper) in the indicated category… with another 6.4 MILLION ounces of inferred gold equivalent waiting to be dug out of the ground. |
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Now, when you consider the full enterprise value here ($150 Million market cap minus $18 Million in cash reserves)... |
When you divide 150 million by 9.4 million… |
USGO's value clocks in at about $16/ounce… |
And over the last few years, we've seen buyouts happening between $105.98/oz - $264.63/oz, |
Now, if we apply even the low-end price to USGO… |
That's $940 million — |
Nearly 10x the current market cap… |
Will it happen? There are never any guarantees with investing but, with CEO Tim Smith at the helm, I wouldn't be surprised to see it sell for more one day. |
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This is the same man that served as the VP of Exploration for Kaminak Resources (now owned by Goldcorp, and sold one deposit for $130/oz back in 2016). |
Selling the Whistler Project at the same rate would be a staggering $1.2 billion dollars – again, on a stock that's currently sitting on a market cap of just $150 million. |
Now, keep in mind…that's based on the value of gold TODAY. |
As we speak, a combination of runaway inflation, the high recession potential and Americans' growing distrust of the banking system are poised to send untold numbers of investors into the gold market. |
In fact, one recent study shows that only about 10% of Americans "have a great deal of confidence" in banking and financial institutions after the recent crisis. |
Andrew Mastro (CFP, President and Founder of Wrought Advisors) summed up the situation very nicely in a recent CBS article that predicts a $2,200 price point for gold on the horizon. |
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"Back in 2008, gold proved to be a safe haven and appreciated during the worst months of the financial crisis," said Andrew Mastro, CFP, president and founder of Wrought Advisors. "If a U.S. default comes to pass, it's possible that gold may appreciate in price again as more investors seek out assets perceived as safe." |
And Wells Fargo's Investment Strategy Report makes similarly optimistic claims about the future of gold, stating: |
"As long as the potential for global recession looms, which we suspect that it will for the remainder of 2023, we believe gold and other precious metals should continue to march higher." |
All told, we're looking at a very cut-and-dry situation with USGO: |
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The price of gold is pressing $2000 right now and you can see lots of projections for it to surge to $2,200 or more, with some analysts suggesting a rise to even $17,000 per ounce by 2032.
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Their CEO, Tim Smith, is a renowned industry veteran with a history of selling gold deposits at prices much higher than average… potentially as much as $1.2 billion in this case if he matches his previous record.
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And right now, the price of USGO is sitting at just $12, with some analysts expecting $20 in the coming months. |
If you ask me, the move seems clear on this one — |
But just because I love this stock doesn't mean you have to. |
As investing involves substantial risk, it's crucial that you do your own research to make sure that USGO is right for your portfolio. |
A great place to start would be right here on the company's website. |
And I believe that once you've combed through the details, you're going to fall in love with this stock just like I did. |
To your success, |
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*This investment involves substantial risk. Please see full disclosure below, and detailed discussion of risks and atypical results |
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*PAID ADVERTISEMENT. RagingBull has been paid fifty thousand dollars by ach bank transfer by US GoldMining, Inc for advertising from a period beginning on July 17, 2023 through August 30 of the same year. As a result of this advertisement and other marketing efforts, Raging Bull may receive advertising revenue from new advertisers and collect email addresses from readers that it may be able to monetize. As of the date of this advertisement, the owners of RagingBull do not hold a position in US GoldMining, Inc. This advertisement and other marketing efforts may increase investor and market awareness, which may result in an increased number of shareholders owning and trading the securities of US GoldMining, Inc, increased trading volume, and possibly an increased share price of the US GoldMining, Inc securities, which may or may not be temporary and decrease once the marketing arrangement has ended. | FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. 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