Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Lake Shore Gold Has Run Too Far

Since I recommended Lake Shore Gold (NYSEMKT:LSG) shares on August 7th, the stock has skyrocketed from $0.31/share to $0.71/share--a 129% increase.

At that time, I argued that the market was far too concerned that the company would have trouble keeping production costs down and paying back its debt. That along with a weak gold price sent shares tumbling from $4 to $0.16. Even at a level twice the low, I felt that the stock was compelling. The company had been increasing production, increasing efficiencies, and finding more gold. As a result, the risk far outweighed the reward, and I felt the stock should be purchased.

My initial investment thesis regarding greater production and cost reductions have come to...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details