*Issuer-sponsored by US GoldMining Inc, see disclosures below
An “IPO” is when a company decides to sell shares to the public for the first time.
Don’t confuse this with an “IPA,” which is a delicious breed of beer made famous here in good ol’ New Hampshire. ?
Until the IPO, a company is “privately owned,” and it is nearly impossible for anyone to invest in it.
Sometimes, the IPO market is red hot (like in 2021) and investors snatch up shares in pretty much any stock they can get their hands on.
The world has changed since then, however. Investors are much more selective where they invest their hard earned money and only the best survive.
I was looking at stats this weekend on recent IPOs.
I was shocked to see that out of the last 100 IPOs, only 30 are trading above their initial public offering price.
Not only are 70% of recent IPO stocks trading down ?, the average gain is around a paltry 2%.
I can make more than that parking my money in a CD (not a “compact disk”?!) right now.
One of the outliers this year has been a relatively unknown gold mining stock of all things called:
US GoldMining, Inc (Nasdaq: USGO)
You have probably heard me talk about USGO recently as one of the stronger gold stock ideas I like in this market (and you know I love gold stocks!)
Today, at 12pm EST, I will be talking with Tim Smith, the CEO of USGO live in my training room.
I want to ask him the details on why his stock has been such a big winner this year when a majority of stocks have been in the dumps.
I’m going to prod him to tell us more about how he plans to unlock shareholder value this year, what the true market value is on assets his company owns, and what his outlook is for the gold market in general.
It is going to be a great time to talk directly to a CEO of a great company, and hear his insights.
Best of all… YOU are invited to join me and ask any questions you want as well!
How often do you get that type of direct access to a high-level public company CEO?
Well, this is your personal invitation! ?
On top of that, I am opening up the full Bullseye training session ? to everyone today, starting at 11am EST. If you want to join me for new trading ideas and options strategies – this is your chance (absolutely no fee to attend today!)
It all starts @ 11am today but make sure you join me @ 12pm for the LIVE Q&A with Tim Smith today as well.
The stock traded up over 15% a couple of days after I sent you my first email on USGO last week, but it has pulled back just a tad since then.
I still think USGO is a very important idea that everyone should keep on their radar.
If you missed the email I put together last week, I copied the highlights of it below so you can revisit it this morning.
See you in a few hours in the live chat room!
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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.
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…
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!)?
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…
The run-up that saw the stock surging 16% back in May over a 48 hour period…
And the 54% leap we saw just a few weeks before that — in just four days.
“But Jeff, what makes you think it could happen again?”
I have three words for you —
“The Whistler Project”
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.
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…
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.
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.
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.
“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.”
“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.
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.
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.
By the way… ? Text “RAGE” to (888) 404-5747 to get all of my latest HOT STOCK ideas delivered right to your phone!
*This investment involves substantial risk. Please see full disclosure below, and detailed discussion of risks and atypical results
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