Comments on: “Gold Dollars: America’s New Legal Tender” Peter Schiff http://www.stockgumshoe.com/2009/06/gold-dollars-americas-new-legal-tender-peter-schiff.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Sat, 21 Nov 2009 05:52:09 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Tim Sullivan http://www.stockgumshoe.com/2009/06/gold-dollars-americas-new-legal-tender-peter-schiff.html/comment-page-1#comment-11189 Tim Sullivan Sun, 01 Nov 2009 15:37:41 +0000 http://www.stockgumshoe.com/?p=1556#comment-11189 A few two cents remarks. Two recent BDF (Bought Deal Financings) in the Gold mining stocks. GBG/Great Basin Gold with decent prospects but of course no earnings. Strong mineralization in their Nevada veins and now processing instead of farming out their ore processing. Also the bulk of the last week's BDF to go towards funding the development of their S/African property a shallow pit operation? Last week GBG made a strong rally off $1.45 to finish @ $1.60 in trading on the day the BDF was announced at the end of that day's trading. Surprisingly resilient on Fri trading after the announcement basically declining only in line with the sector against what is or may not be a dilution. GBG finished two cents higher on Friday over it's Thursday intra-day low of $1.45. On the merits of the ore deposits vs it's cash burn, management incentivizations, debt service, and potential future dilutions the shares might likely be a buy and undervalued at closer to $1.20. The BDF is in the form of an 8% convertible prefrd rather than in common shares. Some of the C$110 raised may go towards refunding a 14% $52 million debenture due 12/10. Another that also has just recently done a common share BDF is PAL. This funding is to also increase production at some closed in facilities. Despite the name North American Palladium PAL is mostly a gold miner with the Palladium production being a side line/by product. Of all the PMs palladium is interesting as to the relative price it holds to the high mark of $579 on a 3 year chart. The long awaited physical holder ETF of ETFS that has been pending a US launch for a very long time may be coming on quickly now,as "PALL" a US surrogate for ETMSF/PHPD.L that have traded for sometime in London with very steep additional commission fees for would be US investors. The PAL BDF went off at $2.87 US dollars/ C$3.15. The shares trading down near $2.47 may be undervalued. Often we can use these BDF financings to spot undervalued shares when the price often then drops below the BDF price on dilution or coincident market corrections. Generally we "ASSUME" the financiers/buyers of these deals have had some well qualified forensic accountants go over these companies to determine some close measure of intrinsic value of shares for their investments. This would take into consideration some of the dilution issues as well. Relying on these estimations of value we can measure the shares as PROBABLY under valued when they fall well below the BDF price? Last week Centerrra (CG.TO)and NEM Newmont reported monster 50% gains in earnings. This week on Tues HL Hecla Mining reports. There is a special situation, some of which is priced in to the HL-C here in that the distributions on this "Cumulative " preferred are over due for a 1 year period now. This issuance is to convert at year end 8 more weeks. Any resurgence in the PMs coupled with a good earnings report on this Tuesday from HL could send the shares from their current $51.44 back to test recent highs very near $60. In any event HL is now well capitalized and you would ostensibly be safe from share dilutions on any capital raising requirements? That is if you hold on to conversion. This assertion based on their just paying off in cash a $38 million dollar facility. HL has a good source of capital from the products it produces that have gone up 50% in value YTD, and production increasing, despite a recent nascent US dollar rally correcting the PMs. It is highly !!!! unlikely!!! that HL will not in some way make good on these delinquent distributions in very short order here. A few two cents remarks. Two recent BDF (Bought Deal Financings) in the Gold mining stocks. GBG/Great Basin Gold with decent prospects but of course no earnings. Strong mineralization in their Nevada veins and now processing instead of farming out their ore processing. Also the bulk of the last week’s BDF to go towards funding the development of their S/African property a shallow pit operation? Last week GBG made a strong rally off $1.45 to finish @ $1.60 in trading on the day the BDF was announced at the end of that day’s trading. Surprisingly resilient on Fri trading after the announcement basically declining only in line with the sector against what is or may not be a dilution. GBG finished two cents higher on Friday over it’s Thursday intra-day low of $1.45. On the merits of the ore deposits vs it’s cash burn, management incentivizations, debt service, and potential future dilutions the shares might likely be a buy and undervalued at closer to $1.20. The BDF is in the form of an 8% convertible prefrd rather than in common shares. Some of the C$110 raised may go towards refunding a 14% $52 million debenture due 12/10.

Another that also has just recently done a common share BDF is PAL. This funding is to also increase production at some closed in facilities. Despite the name North American Palladium PAL is mostly a gold miner with the Palladium production being a side line/by product. Of all the PMs palladium is interesting as to the relative price it holds to the high mark of $579 on a 3 year chart. The long awaited physical holder ETF of ETFS that has been pending a US launch for a very long time may be coming on quickly now,as “PALL” a US surrogate for ETMSF/PHPD.L that have traded for sometime in London with very steep additional commission fees for would be US investors. The PAL BDF went off at $2.87 US dollars/ C$3.15. The shares trading down near $2.47 may be undervalued.

Often we can use these BDF financings to spot undervalued shares when the price often then drops below the BDF price on dilution or coincident market corrections. Generally we “ASSUME” the financiers/buyers of these deals have had some well qualified forensic accountants go over these companies to determine some close measure of intrinsic value of shares for their investments. This would take into consideration some of the dilution issues as well. Relying on these estimations of value we can measure the shares as PROBABLY under valued when they fall well below the BDF price?

Last week Centerrra (CG.TO)and NEM Newmont reported monster 50% gains in earnings. This week on Tues HL Hecla Mining reports. There is a special situation, some of which is priced in to the HL-C here in that the distributions on this “Cumulative ” preferred are over due for a 1 year period now. This issuance is to convert at year end 8 more weeks. Any resurgence in the PMs coupled with a good earnings report on this Tuesday from HL could send the shares from their current $51.44 back to test recent highs very near $60. In any event HL is now well capitalized and you would ostensibly be safe from share dilutions on any capital raising requirements? That is if you hold on to conversion. This assertion based on their just paying off in cash a $38 million dollar facility. HL has a good source of capital from the products it produces that have gone up 50% in value YTD, and production increasing, despite a recent nascent US dollar rally correcting the PMs. It is highly !!!! unlikely!!! that HL will not in some way make good on these delinquent distributions in very short order here.

]]> By: JPL http://www.stockgumshoe.com/2009/06/gold-dollars-americas-new-legal-tender-peter-schiff.html/comment-page-1#comment-11182 JPL Sat, 31 Oct 2009 03:40:56 +0000 http://www.stockgumshoe.com/?p=1556#comment-11182 Hi, Curious, You asked to be corrected if you’re wrong. Mike responded about your spelling. Mine is about the actual values. 1 troy ounce weighs 31.1034768 grams and you already know there are 12 troy ounces per troy pound. Take care, JPL 10-30-2009 Hi, Curious,
You asked to be corrected if you’re wrong.
Mike responded about your spelling.
Mine is about the actual values.
1 troy ounce weighs 31.1034768 grams and you already know there are 12 troy ounces per troy pound.

Take care,

JPL
10-30-2009

]]> By: Mike http://www.stockgumshoe.com/2009/06/gold-dollars-americas-new-legal-tender-peter-schiff.html/comment-page-1#comment-11178 Mike Fri, 30 Oct 2009 20:32:38 +0000 http://www.stockgumshoe.com/?p=1556#comment-11178 Knowing that my reply is sooooo late,since the time frame was June 2009,and now is Oct.2009 The only thing I can correct you on ,is, the spelling of the word ounce(not once)Each time you leave out the letter "U"--and also when you refer to "there are 453.6 grams per lb"--it should state:"there are 453.6 grams per TROY pound ---keep the word TROY in the text,so everyone will know what is being discussed! Of course we know now that gold is going up,around/close to $1100.00 per troy oz. Mike Knowing that my reply is sooooo late,since the time frame was June 2009,and now is Oct.2009 The only thing I can correct you on ,is, the spelling of the word ounce(not once)Each time you leave out the letter “U”–and also when you refer to “there are 453.6 grams per lb”–it should state:”there are 453.6 grams per TROY pound —keep the word TROY in the text,so everyone will know what is being discussed! Of course we know now that gold is going up,around/close to $1100.00 per troy oz.

Mike

]]> By: James Bloyd http://www.stockgumshoe.com/2009/06/gold-dollars-americas-new-legal-tender-peter-schiff.html/comment-page-1#comment-11076 James Bloyd Thu, 22 Oct 2009 03:03:29 +0000 http://www.stockgumshoe.com/?p=1556#comment-11076 I also have an account with GoldMoney, partly because James Turk is the founder and partly because it is a real bank as apposed to what we have here in the US under our fractional reserve system. To everyone else, GoldMoney does NOT use Gold Dollars. Nor does it advertise itself as a way to make money. If you come across anything like that, it's probably a scam. There are sure to be more scams around gold as the rally continues, so be cautious. I also have an account with GoldMoney, partly because James Turk is the founder and partly because it is a real bank as apposed to what we have here in the US under our fractional reserve system.

To everyone else, GoldMoney does NOT use Gold Dollars. Nor does it advertise itself as a way to make money. If you come across anything like that, it’s probably a scam. There are sure to be more scams around gold as the rally continues, so be cautious.

]]> By: rich http://www.stockgumshoe.com/2009/06/gold-dollars-americas-new-legal-tender-peter-schiff.html/comment-page-1#comment-10180 rich Sat, 01 Aug 2009 19:57:16 +0000 http://www.stockgumshoe.com/?p=1556#comment-10180 Both Prechter and Schiff permabears who lost a lot of money for clients/subscribers from 1987 on... http://www.youtube.com/watch?v=zdVP_sgCETo&eurl=http%3A%2F%2Fthecriticalthinker.wordpress.com%2F2009%2F01%2F15%2Fpeter-schiffs-track-record-for-predictions%2F&feature=player_embedded Both Prechter and Schiff permabears who lost a lot of money for clients/subscribers from 1987 on…

http://www.youtube.com/watch?v=zdVP_sgCETo&eurl=http%3A%2F%2Fthecriticalthinker.wordpress.com%2F2009%2F01%2F15%2Fpeter-schiffs-track-record-for-predictions%2F&feature=player_embedded

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