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...
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