With Europe imploding and our current Government broke and leaning toward heavy tax increases across the board and 9.7 unemployment for years to come- you have to be a little concerned!
WE HAVE NOT BEEN PAID BY ANY OF THE LISTED INVESTMENTS. WE MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION.
With November Mid-term Elections looming and primaries starting this week we may be able to see a trend to throw "the bums out"! With the potential of the Dems being sliced and diced during the November elections Americans will be able to take back this country from this Socialist leaning Administration. Comrade Obama will become the ultimate lame duck (OTP) One term President!
May 17, 2010
URGENT NEWS RELEASE-DATED MAY 17TH --8:30 AM---
AWRCF.OB ASIAN PACIFIC WIRE AND CABLE--- WWW.APWCC.COM
JUST ANNOUNCED THIS MORNING MAY 17TH 2010- AUDITED RESULTS BY ERNST & YOUNG-
NET SALES FOR 09--$362 MILLION AND NET INCOME/SH OF .73 VS A LOSS OF (.99) FOR 08!
ALSO TODAY AWRCF.OB WILL PRESENT @ CHINA CONFERENCE IN NYC @ 11.30 AM
READ BOTH PRESS RELEASES ONLINE!
AGAIN, AS MENTIONED IN PRIOR EMAIL ALERTS - THIS STOCK IS THE CHEAPEST STOCK IN OUR UNIVERSE- AT $2.70 AND EARNINGS OF .73 NET/SH THIS STOCK NOW TRADES AT A TRAILING PE ACTUAL OF 3.6X--- IF WE ASSIGN A CONSERVATIVE PE OF 12X- THE RESULTING PRICE IS $8.76-- " DO THE MATH" - BK MUST BE OVER $11.00 AND CASH/SH OF $5.75 AND DEBT CONTINUES TO SHRINK BELOW THE LAST REPORTED $50 MILLION- STILL ONLY 13.6 MILLION SHARES OUTSTANDING AND FULLY DILUTED!
With the confidence in paper currency faltering- asset based investments such as precious metal ( platinum, gold and palladium) and of course oil and gas may be a portfolio's saving grace in this most tumultuous time and place.
The fiscal policies in the US are nothing to "crow" about under Comrade Obama's Administration. The failure of Socialism in Europe should be a wake-up for Obama, but instead he just shoved Socialized Medicine down our throats. Interestingly, some of Europe is thinking about privatizing healthcare!
Gold's bullish factors that need to considered !
1. may be considered an inflation hedge
2. may be considered a safe haven in time of social and political uncertainty
3. shortage of gold coins developing
4. reduction of scrap and old jewelry being sold
5. hungry ETF's amassing large quantities of gold- reducing available supply for all investor types
6. Mines are not mining the metal fast enough to meet the world demand ( Environmentalist of course prolong the permitting process)
Again, Gold is going higher driven by the fiscal crisis in Europe, high deficits in the US and fear of inflation. Moving money into real assets, because paper money is being debased. Having some gold is not a bad idea! Gold should be part of one's diverse portfolio that makes up 5-10% with a mix of coins and common shares and even an ETF.
CAPITAL GOLD CORP (CGC- $3.62) IS STRONGLY RECOMMENDED AT CURRENT LEVELS FOR SHORT AND LONG TERM CAPITAL GAINS POTENTIAL WITH EXTREMELY LOW DOWNSIDE RISK!
CAPITAL GOLD CORP IN OUR OPINION, OFFERS INVESTORS A VERY UNDERVALUED VALUE PLAY, A STRONG ORGANIC GROW PLAY AND A JUICY TAKEOVER CANDIDATE DURING THE NEXT 12-24 MONTHS. THIS IS A MUST OWN STOCK!
During fiscal 010 Management estimates gold production will reach 60k ounces with a near term yearly target of 70k ounces.
CGC is a gold production and exploration company through its Mexican sub and affiliates, it owns 100% of the "El Chanate" gold mine located in Sonora Mexico. It also owns and leases mineral concessions near the town of Saric, also in Sonora. The company is also in the process of seeking approval with respect to a business combination of Capital Gold and Nayarit Gold,Inc.
Estimates for the year ending, July 31, 2010 are .32 and .56 for 011 net income/sh. According to management's presentation, cost to get their gold out of the ground is under $350.00/oz- one of the lowest cost gold producer!
Currently there are around 50.3 million fully diluted shares outstanding and after the completed merger between CGC & Nayarit there will be 68.4 million fully diluted shares. At present there are no gold hedges in place, but in our opinion that may change considering the current price of spot gold ( $1240/oz).
Mexico offers a relatively stable economy ( raging drug war and the red carpet road with illegals into the United States of Socialism), mining is a key industry, has existing mining infrastructure, experienced labor force and favorable tax regime.
El Chanate is an open pit gold mine and 100% owned and has a 10+ year life with 1.5 million oz reserve. CGC has one of lowest cost mine ($350.00/oz) in the industry. Currently producing 5,500 oz/gld/month- 2010 grade .7g/ton and recoveries of approximately 60%. It is estimated by the company that during fiscal 2011 the company will produce over 70k oz and 120k oz of gold by the end of 2012.
Gold started the year @ around $850.00/oz and currently trades at around $1240/oz- that equates to a 44% increase with 8 months to go for 010! It is in our opinion, that of the questionable success of the EU and IMF's stash of $1 trillion to backstop the "piigs" of Europe that Gold will remain very firm with additional upside to $1500/oz and possibly beyond that if things really begin to collapse Internationally because of this debt virus that seems to be surfacing and spreading!
The Orion Project- the core project of the pending acquisition has an initial capital need of $35 million, which will yield over 250k oz of gold recovery- cost/oz is assumed @ $320.00/oz.
Once shareholder approval is final there will be around 68 million fully diluted shares and the company will have 9.2 million in cash and only 7.2 million in debt. Gross rev based upon the 60k and 70k oz of gold from 010 and 011 should aid in the required cash for the funding of the Orion Project. We believe that CGC will most likely create a "shelf" that will raise some of the funds needed to get the Orion Project into production yielding an additional 50k oz of gold by the end of 012!
Prior to the final agreement, Capital Gold in our opinion, is extremely undervalued based upon various fundamental variables comparing CGC to its peers - Enterprise value, reserves, Operating Cash flow, P/OCF and PE. With a share price of $3.60 and estimated earnings/sh of .56 for fiscal 011 a PE of 6X is just too cheap for us not to "load up the bus" with this extremely well run Gold Producer! It's in our opinion, the near term estimates will be raised dramatically because of the surge in metal prices.
Management should start to consider to hedge some of their production at such attractive metal pricing. We believe that earnings should be raised to .65 for fiscal 011 and if we assign a conservative PE of 12X- we get a share price of $7.80 a far cry from current levels.
ALL IN ALL WE LIKE CGC AND RECOMMEND IT WITH OUR STRONGEST BUY RATING. IT IS A GROWTH STORY, A DISCOUNTED ASSET STORY, AN INFLATION HEDGE AND SOCIAL-POLITICAL INSURANCE POLICY STORY AND A TAKE-OVER STORY! THIS UNIQUE OPPORTUNITY SHOULD BE PURCHASED FOR ALL DIVERSE PORTOLIO'S LOOKING FOR GREATER DIVERSIFICATION IN A WORLD THAT AT TIMES APPEARS TO BE VERY TROUBLED! WE SEE ALMOST ZERO DOWNSIDE RISK WITH A 12 MONTH PRICE TARGET OF AT LEAST $8.00 AND $15.00 IN 24 MONTHS. EVERY SERIOUS INVESTOR TYPE NEEDS A POSITION IN PRECIOUS METALS- A MIXTURE OF COMMON STOCK, ETF'S AND COINS!
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We believe that the market will remain very volatile until a more clear picture surfaces concerning Europe's financial debt problem within the "PIIGS". It is possible that over the short term that lost faith in the EU and its currency will drive additional foreign investors to the US markets because of a more stable business climate! If the Euro continues to slide the European Investor will jump ship and buy US stocks because of the strength in the currency and strong US companies. We would stay away from multi-nationals and concentrate on very strong US & Asian companies.
We remain very bullish on domestic oil and gas companies specifically doing exploration in North Dakota and surrounding states. Our favorite domestic oil and gas stock remains Abraxas Petroleum (axas) currently trading at around $2.70-- earnings are being released this afternoon- read the recent April 12, 2010 presentation and the May 5th 8k filing ( go to axas website-sec filing to review excellent corp review for institutions)
Even though crude prices have cratered during the past few weeks because of the turmoil in Europe axas has stayed relatively firm. We still rate axas with a strong buy rating at current levels for short and long term appreciation potential. We assume "new" information will be released with the first Q numbers and on Tuesday we will get additional information from management concerning their "Bakken" ( North Dakota- Williston Basin) acreage development. Like bexp ( recommended at $3.95) we believe axas is a wealth builder and smart investors should continue to add to their positions on any and all weakness.
1. ALJJ.PK MICRO STEEL COMPANY REPORTS VERY GOOD REV AND EARNING FOR THE SIX- WE REMAIN BULLISH ON COMPANY SHORT AND LONG TERM AND RATE ALJJ.PK WITH A STRONG BUY RECOMMENDATION---.29
2. INTT RECOMMENDED @ 1.18 SOME TIME AGO - EARNINGS HAVE PROPELLED THE SHARES TO SKY-ROCKET TO $4.20-- WE ARE SELLING 1/2 AT CURRENT LEVELS ! THE NAME OF THE GAME IS PROFIT!
3. RODM-- A FAVORITE OF OURS EVEN THOUGH IT HAS BEEN A REAL DOG DURING THE PAST 6 MONTHS- THE MARKET HAS GONE UP WHILE RODM HAS DROPPED LIKE A STONE FROM ITS HIGH OF $6.35 ON OR ABOUT SEPT 29TH 2009! FINALLY THEY GOT RID OF THEIR "SHELF" WHICH CAUSED THE INITIAL TUMBLE OF ITS SHARE PRICE- NOW THEY NEED TO REDUCE PAY OUTS A LITTLE AND DECLARE A CASH DIV FOR THE REST OF US AND THEN THIS STOCK WILL REACT!! CURRENTLY @ $3.26 WITH $2.00 IN CASH AND ZERO DEBT AND VERY POSITIVE GROWTH POTENTIAL FROM ASIA! WE HAVE RE-RATING RODM WITH A STRONG BUY RATING AT CURRENT LEVELS. IF THEY ARE NOT CAREFUL SOMEONE WILL SNAG THEM ON THE CHEAP!!
AWRCF.OB-- STILL OUR # 1 CHEAPEST STOCK IN OUR UNIVERSE! WE KEEP BANGING THE DRUM BUT THE HERD CANNOT HEAR IT! ASIAN COPPER WIRE PLAY FOR TELCO AND POWER INDUSTRIES. ONLY 13.8 MILLION SHARES OUTSTANDING -REV SHOULD TOP $400 MILLION FOR 010 AND EARNING SHOULD REACH .70-- BK AROUND $10.00 AND CASH/SH OVER $5.50 AND DEBT HAS BEEN REDUCED FROM $100 MILLION TO ONLY $50 MILLION. MICHAEL DELL OWNS 1.2 MILLION SHARES (DELL)--THE COMPANY FILES 20F AND 6K AND INTENDS TO LIST ON MAJOR EXCHANGE BY YEAR-END! ALL FOR $2.70--SUPER BUY RATING!!
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WE DEDICATE THIS EMAIL ALERT TO MY DEAR FRIEND GREG NELSON THAT PASSED AWAY A FEW DAYS AGO FROM BRAIN CANCER-- I WILL MISS YOU MY FRIEND!
I MET GREG IN 1976 AND TALKED WITH HIM ABOUT STOCKS, POLITICS AND ANYTHING ELSE 3- 4 TIMES ADAY FOR ALMOST 30 YEARS!
FOR MORE INFORMATION CALL 801 272 4761.