February Issue of Ultimate Value Finder is Released

The February issue of Ultimate Value Finder is out. If you are subscribed to the newsletter, you should have already received it in your inbox. In this issue, I covered three uniquely different companies. One recently filed a lawsuit and its outcome will determine whether the future investment return will be 85 percent or 400 percent. The second company covered is a gold miner that is weeks away from announcing commercial production. As of now, it is producing gold at a run rate of 40,000 ounces per annum yet still trading for approximately $100 million. It had some gold sales in 2011 but none of these sales showed up in the income statement because until commercial production is reached, the company is treated as an exploration company. Commercial production is defined as 3,500 ounces of gold production per month for four consecutive months. Once the company reaches commercial production, which based on my conversation with the CEO, is supposed to happen this quarter, they will start reporting revenues. Once revenues show up on the income statement, you can imagine what is likely to happen with the stock price. And finally, a third company was a recent spinoff from a parent company. Usually spinoffs are ignored or sold for no fundamental reason. This wasn’t exactly the case here, but at first, the stock was trading poorly. Only after I started writing about it did the stock price begin to move. I wish that had it waited for me to finish writing before going up. I would look like a genius!

If you did not subscribe to Ultimate Value Finder yet, I don’t know what you are waiting for. There are so many investment opportunities out there that it is mind-boggling. To download your sample issue, click here.

Five Stocks that Look Appealing

With my newly released newsletter, I am on the hunt for appealing ideas for the future monthly issues. I try to pick only the best ideas that I can find but these five stocks look appealing and I will have to do more research on them before any of them make it in the newsletter:

Adams Golf (ADGF)


Adams Golf designs, assembles, markets and distributes golf clubs for all skill levels. I have done a lot of research on this company previously, but ended up passing, which didn’t turn out to be such a great idea. If you talk to anyone who knows anything about golf and you mention the name, Adams Golf, they will automatically know the company, which is good because this means that the company benefits from brand recognition. It is very difficult for an unknown company to just start making golf clubs and selling them profitably. At one point, Adams Golf was an unknown company but it was able to break into this business. The founder, Barney Adams, wrote a book, The Wow Factor, which details the company’s history and its struggles in the golf equipment industry. Read more »

Ultimate Value Finder Newsletter is Launched

I am extremely happy to announce that I just launched Ultimate Value Finder, my new monthly newsletter. In each issue of the newsletter, I cover three undervalued companies. I mentioned before that I research companies on a regular basis, and I find more deals than I can invest in. The newsletter is a way for me to share all these ideas with you. Some of them I will personally be investing in and some of them I will not. However, I will disclose my position either way.

Why Am I Releasing the January Issue a Week Early?

I was going to wait to release the January issue until the first week of January 2012, but approximately one to two hours before the market closed on Friday, significant news was released on one of the companies covered in the first issue. The number of shares that traded on this stock was over 800k, while the average volume is 55k. However, the stock price barely moved. This means that while there was huge buying activity taking place, there was a big seller on the other side. If the seller was unloading this much stock without the frenzied buying, the price would have been crushed. Because the news was extremely positive, there is no question why people were buying. The only logical explanation for such heavy selling was the presence of a forced seller taking advantage of the buying frenzy. There are rumors that a fund is closing its doors and is liquidating this particular position. If this is true, the selling will be done soon, and the overwhelming interest from the buyers will push the stock price higher. I am not a fortune teller, and please don’t hold me to it, but I suspect that the stock price could make a move next week.

Consequently, I faced a dilemma – wait to release the newsletter during the first week of January 2012 and have you miss out on the investment opportunity or release it a week earlier and let you benefit from this idea if you choose to participate.

Normally, I will be releasing each monthly issue within the first two weeks of a particular month, unless I encounter another unusual situation.

In one of my previous posts, I asked whether you would be interested in subscribing to a paid newsletter. Because I received such a warm welcome to this idea, I decided to proceed with the project. However, I have to apologize because I initially said that I was going to charge $100 per year. After looking at various costs, I can’t make it work for this amount. Therefore, I changed the price to $199 per year or $149 per half a year. If you are a Classic Value Investors client, you can receive the newsletter free of charge, but you have to e-mail me to let me know you are interested. I truly apologize for the price change but I guarantee you that you will not be disappointed with the product. I simply cannot produce poor quality work. If I do something, it has to be high quality – this is just me.

I put together a sample issue, which includes my old analyses. This should give you an idea of what each issue will look like. You can download your sample issue here. Then, if you like what you see, I encourage you to subscribe to Ultimate Value Finder for the entire year or half a year.

I am looking forward to sharing various investment ideas with you, and hopefully, we can profit from them together.

Sincerely,

Mariusz Skonieczny

Monument Mining – Should You Vote “Yes” or “No” for the Mengapur Project

I follow all of my investments very closely, and therefore, I speak with most of the CEOs of the companies in which I invest. At the same time, I read comments made by other investors on various Internet message boards. What amazes me the most is how quickly these investors jump to various conclusions based on very little or no information. The perfect example is the most recent announcement of the Mengapur project that the management of Monument Mining is trying to acquire. I have heard all kinds of criticisms of the management accusing them of being incompetent, unethical, and even fraudulent.

I was very unhappy to see the management’s announcement that they intended to acquire the Mengapur project by issuing lots of shares. Therefore, I decided to write a public letter to the company’s management discussing my reservations towards the project. While some investors thought that the management was simply going to ignore my letter, I received a phone call from Bob Baldock, Monument Mining CEO, within 24 hours. I brought up many points that bothered me about the deal, and in this article, I want to share with everyone what I learned. After you finish reading it, you can then decide on your own whether you want to vote “yes” or “no” for the deal. Read more »

Letter to Monument Mining Management

Letter to Monument Mining Management

Please let me know what you think…

I research a variety of companies on a daily basis and I find amazing deals. Unfortunately, I cannot invest in all of them. On my blog, I only write about the ones that I do invest in. However, I know that some of you would be interested in the other great deals that I am not able to take advantage of and write about on my blog. But, because I don’t write about them, you never get the chance to hear about them and have the opportunity to possibly invest in them yourselves.

To rectify this, I was thinking about starting a monthly newsletter (by subscription for $100 per year), where I would write about these other deals. I am not sure exactly how many companies I would cover in each monthly newsletter, but at this point, I am thinking that it would be around three to four.

I am trying to gauge interest to see whether this is something that people would like. I love looking for deals and sharing them with people. Please let me know if you are interested.

Yukon-Nevada Gold Corp – The Drama is About to End

Ticker Symbol: YNG (Canada), YNGFF (US)

Yukon-Nevada Gold Corporation has broken a lot of hearts lately. Many individual and professional investors have thrown in the towel and sold at a loss. The remaining shareholders are completely exhausted. New potential investors are afraid to buy it. This is exactly the kind of pessimism that creates great prices.

Many investors learned about Yukon-Nevada in the middle of 2010 and during that time, the stock price was at $0.25 per share (today it is at $0.30 per share or a market cap of $300 million). Within six months, the stock reached $0.90 per share, and some of the shareholders felt like geniuses tripling their money in such a short period of time. Everything was great – the management was successful in turning the company around, operations showed profitability, and future growth productions targets were stunning. The stock price was on its way to reaching $10 per share. Read more »

Aurcana Corporation – Video Update

I originally wrote about Aurcana Corporation on September 28, 2011. Since then the stock has been moving up nicely. The following is a new interview with the company’s CEO.

David Einhorn is betting on gold-mining companies

Hedge-fund manager David Einhorn is betting that gold-mining companies will outperform bullion, reversing the trend from the past six months.

“A substantial disconnect has developed between the price of gold and the mining companies,” Einhorn said today in a conference call discussing results at Greenlight Capital Re Ltd. (GLRE), the reinsurer where he is chairman.

Click here to read the rest of the article.

Sprott on Oil

Sprott on Oil