After the close on Friday, the one-year saga of US Gold (NYSE: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 (NYSEMKT: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.
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?