(Editor's Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.)
Selwyn Resources (OTC:SWNLF) is a liquidating Canadian mining company taken over by a group of activist shareholders. At current trading price of $0.085 I believe it is an opportunity to earn an uncorrelated 8-35% return in the next 12 months with a likely imminent $0.05+ return of capital. My downside case is a total value per share of $0.09 and my upside case is $0.13 per share in value, so at today's price of $0.085 I view the probability of losing money on this investment as low.
Just to clarify, SWNLF is an OTC-traded equivalent of the Canadian security SWN....
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|