*sponsored by US GoldMining Inc, see disclosures below
I wanted to give you a quick update on my newest 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!
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.
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)…
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!
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:
-
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.
-
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
Questions or concerns about our products? Email [email protected] (C) Copyright 2022, RagingBull
*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. This advertisement is for educational and informational purposes only. All material information contained in this advertisement is based on information generally available to the public, which public information is believed to be reliable and accurate. Nevertheless, Raging Bull can guarantee the accuracy or completeness of the information. This advertisement does not purport to be a complete analysis of any company’s financial position. This advertisement or any statements made in it is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular individual. The statements made in this advertisement should NOT be relied upon for purposes of investing in the companies mentioned in this advertisement, nor should they be construed as a personalized recommendation to you to buy, sell, or hold any position in any security mentioned in this advertisement or in any other security or strategy. It is strongly recommended that you consult a licensed or registered professional before making any investment decision.
SUBSTANTIAL RISK INVOLVED. Any individual who chooses to invest in any securities of the companies mentioned in this advertisement should do so with caution. Investing or transacting in any securities involves substantial risk; you may lose some, all, or possibly more than your original investment. Readers of this advertisement bear responsibility for their own investment research and decisions, and should use information from this advertisement only as a starting point for doing additional independent research in order to allow individuals to form their own opinion regarding investments. It is easy to lose money investing or trading, and we recommend always seeking individual advice from a licensed or registered professional and educating yourself as much as possible before considering any investments.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. A portion of our business is engaged in the marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use. A portion of RagingBull’s business model is to receive financial compensation to promote public companies. To conduct investor relations advertising, marketing and publicly disseminate information not limited to our websites, email, SMS, push notifications. This compensation is a major conflict of interest in our ability to provide unbiased reporting. Therefore, this communication should be viewed as a commercial advertisement only. Note, we periodically conduct interviews and issue stock alerts that we are not compensated for. These are purely for the purpose of company awareness, and to generate subscription revenues. We have not investigated the background of the hiring third party or parties. The third party, profiled company, or their affiliates likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently, companies profiled in our alerts may experience a large increase in volume and share price during the course of investor relations marketing, which may end as soon as the corporate awareness program ceases. Our emails may contain forward-looking statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our website / media webpage. The information in our website / media webpage is believed to be accurate and correct but has not been independently verified and is not guaranteed to be correct.
NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Raging Bull, or any of their owners, employees or independent contractors is not currently registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization.
USE OF FORWARD-LOOKING STATEMENTS. Certain statements made in this advertisement may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Forward-looking statements often include words such as “believes,” “anticipates,” “estimates,” “expects,” “projects,” “intends,” or other similar expressions of future performance or conduct. Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made and are not statements of historical fact. They involve many risks and uncertainties that could cause actual results or events to differ materially from those presently anticipated. There is no guarantee that past performance will be indicative of future results. Raging Bull does not undertake an obligation to update forward-looking statements in light of new information or future events. Readers can and should review all public SEC filings made by the companies profiled in the Advertisements at https:// www. sec. gov/edgar/searchedgar/companysearch
TRADEMARKS. All trademarks used in this advertisement are the property of their respective trademark holders and no endorsement by such owners of the contents of the advertisement is made or implied.
