Richard, Vista merged with Da Capo a while back. Vista has a profitable Nevada mine producing over 100,000 oz annually, a solid balance sheet, and a good operational record. Da Capo, a company run by Ross Beatty (of PAASF) had excellent properties in South America that needed an experienced producer to develop and operate. Vista is on schedule to more than double its production over the next three years with the properties it already has, principally in Bolivia and Venezuela. So, VGZ should rise in price even if gold stays flat. Book value is over $1. Right now the ask moves back and forth from 11/16 to 3/4 with plenty of fills each day at 11/16. This is, IMO, a one time thing caused by the sudden oversupply created by a corporate action outside Vista's control. At 11/16 there is almost no downside risk, so this one works as either a trade, a long term hold, or both. I don't like the penny stock appearance, but I don't think it matters much. Also, Adrian Day recommends buying VGZ, and he is an extremely cagey and conservative investor who has special experience and interest in the golds. His newsletter has a large subscription, so he can't recommend the little guys like IVV. If he recommends a company you can be pretty sure that there aren't any scammers or incompetents involved. Others on this thread might disagree with my opinion of Adrian Day. Don't know. But I have found him to be reliable.
John |
