Stirling Capital Management
Special situations, contrarian, event-driven

Selwyn Resources - Liquidation With 9%-35%+ Upside

(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....

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