US Gold May Be the Best on the Board
Posted on Apr 16th, 2007 with stocks: UXG
Bill Cara submits: After the close on Friday, the one-year saga of US Gold (UXG) came to an end with the acquisition of three junior prospectors being formally acquired. Now that the regulators have been satisfied, I would think that the company would want to announce the results of its extensive exploration activities in Nevada since December.
Now that the company can begin to promote itself again, I expect the share price to move back into the U.S. $5 to $6 range. How quickly and how far north the stock price goes will, of course, depend on drill results and geological evaluations. As a pure minerals prospecting speculation, I believe UXG is the best one on the board. That’s because I bet the jockey.
It has been quite a ride. UXG has moved from U.S. $4.13 on the AMEX on 3/23 to Friday’s mid-day price of $6.55. That’s a gain of +58.6% over the past three weeks. And, since I recommended it in a list of 20 PM stocks on Jan 12 at $4.52, UXG is up 44.9%.
Whenever I am out meeting new people, they ask the same questions, “Why do your readers read your blog? What do you write about?” I always respond, “I write about everything financial. They seem to like it.”
Do you really think I can answer, “I show readers how to make gains like 58.6% in three weeks”?
Week after week, month after month, and now year after year, I surprise myself that I have so many winners. Less surprising is that readers like to comment on those such as Richmont (RIC), about which the reader “onlineaces” thanked me Friday morning. Yes, RIC is up from $2.33 to $3.19 in three months since I gave you 20 gold and silver stock considerations on Jan 12. That’s a gain of +36.9%.
What went missing was “onlineaces” pointing out that two of those twenty are down: Alamos Gold [AGI.TO] -19.0% and Guyana Gold [GUY.TO] -20.5%. I know those jockeys too.
Still, the whole list is up +18.5% versus the large cap (Barrick (ABX), Newmont (NEM) and Goldcorp (GG) +3.2% on average), which was a point I was trying to make before the event.
The gold price has done pretty much what I was expecting Friday – up $6.90 on the spot market – and that’s because I also know the jockey. Well, I actually don’t know the guy personally, but I hear he enjoys throwing money from helicopters. And you know he'd never throw gold. Doesn't that tell you something?
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