March Idea of the Month: Brazilian Hamburgers

By Travis Johnson, Stock Gumshoe, March 19, 2010


Before I start out with today’s “Idea of the Month” article I should note that I’ve had a lot of folks asking about the new “teaser” language coming from Dan Ferris for his Extreme Value newsletter — so let me quickly jump on that before I share this month’s stock idea, since it’s a stock we know and love.

The Ferris quotes that are being sent to me are as follows:

“After scouring tens of thousands of stock listings in North America, I’ve come up with one of the few small-cap commodity stocks I believe is an excellent long-term investment. I expect shareholders to make anywhere from five to 20 times their money over the next five to 10 years.

“This little company had a market cap of around $160 million when I first found it, about a year ago. Now, its market cap is around $266 million. I bet the whole thing will sell for more than $1 billion some day.

“It’s now holding more than $200 million of cash and investments. It’s got perhaps a dozen ongoing projects, any one of which could make the company and its shareholders many times their money. I’ve raised my maximum buy price three times in the past year, as the company’s net asset value has nearly doubled since I recommended it.

“To find out the name of this amazing little company, hailed throughout its industry for its superior management team and its financial fortress balance sheet, click here and subscribe to Extreme Value.”

And I’m fairly certain that he must still be talking about Altius Minerals (ALS in Canada, ATUSF on the pink sheets), which I own shares of as well. I wrote about Altius a few days ago because of the spike in the shares, which I expect was brought on by additional attention that the stock has received in recent weeks (or perhaps by a Ferris re-recommendation as well, I don’t know).

Altius continues to have excellent prospects, but paying $10 for the shares, as a few folks did over the last week, is probably higher than is necessary. They do have just under $200 million in cash and very liquid investments (including Royal Gold shares that they received in the International Royalty takeover), and another $30 million or so in holdings of other little mining companies, and net current value of ...

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