What are the “Upturn Millionaires” 10-baggers?

Sniffing out a few stocks teased by Louis James and Marin Katusa

By Travis Johnson, Stock Gumshoe, February 3, 2014

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Geez, the teaser patch is a little thin this morning — it makes me fear that perhaps we haven’t been putting out enough fertilizer or something, what ever will your friendly neighborhood Gumshoe do if there isn’t a new crop of balderdash and hypetastic promistization to hoe?

I know, I shouldn’t worry — and we’re not completely devoid of over-the-top “secret” stock promises — but I do wonder if a few of the publishers are subconsciously worrying about over-promoting the next great stock just before the market takes a 20% tumble.

And no, I don’t know the market will take a big tumble — but it sure had a lousy January and is down another 2% or so on this first day of February. That’s enough to make my “buy” finger start to twitch a little, but not enough to say we’ve had a real “correction” after a long bull market.

So what shall we cover today? Well, last week I had quite a few folks send over a teased list of stocks with “10-bagger potential” from Marin Katusa and Louis James and the gang over at Casey Research — they’re all in the mining sector, and these ideas are being pitched as part of a campaign to get you to watch the upcoming presentation called Upturn Millionaires, which is being put together by Doug Casey and also includes Rick Rule, Porter Stansberry, Frank Giustra and John Mauldin as a way for these folks to share their strategies for getting wealthy as precious metals recover.

Or, as they put it in one of their press releases:

Upturn Millionaires will show how gold stocks currently have the potential to create a whole new class of millionaires.

“The steep correction of the last few years is presenting us with one of those rare opportunities that come along once, maybe twice in a lifetime—the opportunity to get in at the bottom of a bull market and ride it all the way to the top. Even great companies with serially successful mine finders on their management teams, with plenty of cash in the till to finance their projects, and with proven, high-grade deposits in the ground have been getting hammered making them ridiculously cheap to get into.”

I don’t know whether this will end up being a good presentation from these folks, and I don’t know how much of this moderated talk will be sharing actual ideas and strategies and how much will be just another echo chamber of folks with similar sympathies agreeing with each other that everyone should own gold and that gold is being manipulated and that inflation is inevitable… or whether the talk will end up being a sales pitch for their various products. That we’ll find out on Wednesday afternoon, if you want to invest the time.

But we can at least try to sniff around and see if we can ID the specific stocks they hint at in one of their ads, and y’all can decide amongst yourselves whether these are appealing potential “10 baggers.”

[In case you’re wondering what that “10-bagger” bit means, it’s a term popularized by Peter Lynch when he was running the Magellan Fund for Fidelity and writing a series of books that helped explain investing to Americans — it just means a 1,000% return (a one-bagger, or a single in Baseball terms, would be a 100% return).]

Here, then, are the clues from Katusa’s pitch:

“Ten-Bagger Pick #1

“This company is one of Louis’ all-time favorites because it’s just doing everything right. In the past, it has brought International Speculator subscribers over 400% gains—and he thinks it can and will do it again once the gold market resumes its upward trend.

“Led by a very capable father and son team, the company recently has delivered a world-class gold resource in a mining-friendly North American jurisdiction. And we anticipate even better news for the next resource estimate after the company conducted successful infill and step-out drilling in 2013 that both upgraded and expanded the deposit.

“Louis’ Ten-Bagger Pick #1 has plenty of cash in the kitty to develop its projects and its best-in-the-business management is unbeaten. A prime Ten-Bagger candidate if we’ve ever seen one.”

Not a wide swath of clues to drive the Thinkolator through on this one, but Louis James’ pick here seems very likely to be Almaden Minerals (AAU, AMM in Toronto), which is indeed run by a father-son team, is doing infill drilling to expand the resource estimate at their latest project in Mexico, and does have some cash on the books to pay for more work (about $15 million as of last quarter, it’s a $90 million market cap company).

I don’t know Almaden well, but it’s been a favorite of a lot of resource pundits and I know the Casey folks have spoken fondly of them before — there are several other mentions of it here if you’re curious about following up.

Me, I’ll move on to number two:

Ten-Bagger Pick #2

This company was on Louis’ 5-Bagger list last year; now it’s on the 10-Bagger list because it’s selling for roughly half the price—through no fault of its own.

Pick #2 has produced great drill results on its Eurasian project: exceptionally thick, high-grade gold, as well as substantial, silver-rich intercepts and a new bulk-grade, near-surface gold on the same property.

On top of that, the company has had recent, high-grade hits at its US project in mining-friendly Nevada, which point to a very large potential resource there as well.

This mining overachiever delivered the goods in 2013, and Louis expects the same in 2014 and beyond… and now is the best time to get in.

Well, I can’t tell you for sure on this one — the only one I’m aware of that has projects in both “Eurasia” and Nevada is, well, Eurasian Minerals (EMXX, EMX.V in Canada), and they get more than their fair share of investment newsletter attention, but I haven’t seen any “recent” high-grade news from their Nevada projects and they’re a pretty spread-out, partnered company. The “great drill results” would be from Turkey for them if this is the match, and those results do look pretty impressive at first glance. And yes, the price is about half what it was a year ago — though that doesn’t narrow the field much when you’re talking about gold and silver miners.

They’re a similar size to Almaden, about $80 million, and, well, this one’s a guess. If you’ve a better one, feel free to jump right in with it.

One more?

“Ten-Bagger Pick #3

“The risk associated with this company has decreased drastically since Louis’ original recommendation, but the market hasn’t given it any credit for that change and it’s trading in the $0.60 range.

“There have also been excellent drill results from the company’s large, high-grade European gold project indicating that the deposit will get a lot larger.

“Last year that country’s stance on mining wasn’t 100% clear, but now we know that the government is standing behind the project—a huge bonus for Ten-Bagger Pick #3, which should be trading higher as is, but is still held back by the overall poor performance of the gold market.

“As soon as the market turns around, however, this stock should be well on its way to the stratosphere.

“And Louis and I are by no means the only ones seeing the vast potential in the mining sector. There’s no shortage of resource and investment experts—quite a few of them billionaires who made their wealth through contrarian plays just like this—who are willing to go out on a limb and predict an imminent turnaround for gold and gold stocks….”

There are a few stocks that could match this, including my best guess of Gabriel Resources (GBU in Toronto, GBRRF on the pink sheets) and its Rosia Montana project in Romania that has been a political football for at least a decade now and been “on again, off again” with local politicians. The shares did drop to about 60 cents around the turn of the year, but have now gotten back over a dollar again. This is one of those stocks that has a huge mineral deposit which, if developed, is obviously worth more than the company’s market cap … but the “if” is not just put there for the lawyers, I have no idea whether the project will end up going through or not. Myron, who writes a mining column for us here, has written about this one once or twice during the very volatile last six months or so, not sure what he’s thinking about them today. There are other good-sized European projects being explored or developed by other companies, but none that I’m aware of which have traded at or near sixty cents a share in the last few months.

So there you have it — one match, two somewhat wild guesses for the Casey folks’ “10-baggers” file — we’ll see how their presentation goes on Wednesday and if it turns out any more teaser-rich excitement for Gumshoe Nation … and if you’ve got other faves in the gold and silver space that you like better, or think you’ve got better matches for the clues granted us by the folks organizing Upturn Millionaires, well, I’d be delighted to hear ’em.

P.S. In case you’re wondering about that “Next Bakken” the Casey folks are pitching, that’s still PRD Energy — still waiting for more results from their initial drilling campaign that has been troubled by rough patches and cost overruns. We’ve covered it a couple times since they started teasing it, but haven’t followed news closely — they’re going to have to raise money to do any more drilling beyond this first well, it appears, so they’re presumably hoping they can say something really positive next time they have a press release.

Related Gumshoe Articles

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47 Comments on "What are the “Upturn Millionaires” 10-baggers?"

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Anonymole
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Anonymole
February 3, 2014 6:36 pm

For all junior miners talk one should make sure you check out Mickey Fulp. I’m no shill but I do enjoy listening to Mickey’s Libertarian views and read about his exploits. He often visits these projects out in the boonies and reports on them. His People, projects, and share structure is how he grades these junior type of resource exploiters.
http://www.mercenarygeologist.com

Douglas
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0
February 4, 2014 5:57 pm

I cannot get excited about junior mining stocks. These stock just have to much risk for my taste.

Alan Harris
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Alan Harris
February 3, 2014 6:46 pm
Well Ive done nicely on GBU and am sitting on £2k of ‘free’ shares thanks to Myron’s earlier recco. There were alsorts of nimby protests, so either a poverty stricken gov will ‘pass’ on a much needed influx of new money or they’ll close the pithead in the name of democracy. My ‘free’ money is on some political balm, and once the protestors get tired and go home, the gov will initially allow a scaled back dig. Of course, if they hit paydirt, it’ll be ‘in the national interest’ to dig deeper. Its risky, but the odds that needy people… Read more »
ventureshadow
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ventureshadow
February 3, 2014 6:52 pm
These companies aren’t even miners, they’re miner wannabees. Gabriel Resources is following in the footsteps of Crystallex with its mining project banned by the government. Just look at the price history of Crystallex to see how bad things can go in a situation like this. I don’t know why Northern Dynasty (NAK) is still considered to have any value, but it too is following in the path of Crystallex. Gold miners receive too much attention from newsletter writers. Gold mining is too speculative to be a reliable investment. Gold itself is way less speculative than gold miners; even if it… Read more »
Thommo
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Thommo
February 4, 2014 3:42 am

If you like majors, Newcrest Mining [ncm.asx] has been a horror story but in the last couple of months has had a steady climb from $A7 to $A10 on improved tonnages and costs. Such a big company should have a Nth American listing but a quick search failed to find one.

While on majors, why is Kinross such a disaster? I own them because I owned Redback but the whole seems to be worth less than they paid for Redback.

Thanks for comments.

Slick Rick
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Slick Rick
February 3, 2014 7:55 pm

Why bother with those crappy stocks? The BEST GOLD stock out there currently is AKG listed on the AMEX. They just merged with another gold miner and they now have the capability of producing 400,000 ounces of gold per year in the not to distant future! Here is the chart with reference materials below the graph! http://finviz.com/quote.ashx?t=akg&ty=c&ta=1&p=d

glenarm
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glenarm
February 3, 2014 7:56 pm

Curious if you have ever looked into SAExplorations
Some previous talk about similar companies

baygreen
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32
February 3, 2014 8:05 pm

ANV ON THE WAY BACK, HOW DOES THE USA TELL GERMANY THAT THE 35 TONNE WE OWE THEM CAN GIVE 5 TONNE NOW AND WE ARE MELTING THE REST TO GET READY SO SAYS CASEY

Terry Kresge
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Terry Kresge
February 3, 2014 8:07 pm

Curious to hear any feelings re: Slam Exploration (SLMXF) in the mining sector, or Liberty Resources (LYRTF) in the oil sector. Thanks.

George Calef
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George Calef
February 3, 2014 8:19 pm
Many, many of the juniors are up 30-100% in the past couple of months. When gold and silver turn around the rising tide will float all boats. One of the easiest ways to play the miners is to buy etfs, or even leveraged etfs such as jnug and nugt (up about 60% and 100% respectively) if you are brave. Lots of individual junior mining stocks are up close to 100% in the past couple of months: BAR, KOR, PZG, FVI, ORE, KAM etc. etc. if they have any kind of promising drill results or significant measured and indicated resources
shredder
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shredder
February 3, 2014 8:25 pm
I made a pantload of profits off Crystallex, just remember Cinderella…keep your eye on the clock and stay away from the koolaid. Still have a $15,000 ATV ( 2006) that i bot with some of my KRY profits. Even had BRP reprogram the digital display, on start-up it reads THANK YOU CHAVEZ it’s a great time to do some contrarian investing in Jr resource sector. About investment writers, last fall, Bywrong King over at Agora, where I have a subscription, suggested a few Nat Gas play that are waiting for US Gov’t approval to export LNG. One, VSN.to he wrote… Read more »
richard
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richard
February 3, 2014 8:25 pm

Travis your analysis is nothing short of amazing.
aau is #1
#2 and 3 are dna.to (no Nevada property) and boz.v
The 2 and 3 you have listed are not covered by them.

SageNot
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SageNot
February 3, 2014 11:56 pm

Far be it for being somewhat negative on tiny miners; but with no inflation until the 10yr bonds starts an uptrend of sorts. Casey & friends never talk about how many tiny miners have blown up, even if you ask them it’s mum’s the word. Plus the commodity markets will also have to rally if that inflation surge is coming, just check out the historical facts, it will open your eyes.

bplaut
Irregular
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bplaut
February 4, 2014 4:30 am

How about Pilot gold for #2? Has property in Turkey and Nevada, and Casey folks like the company.

Kent V
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Kent V
February 4, 2014 10:15 am

I believe Pilot is correct because Casey was picking them to prosper in 2013.

Anthony Alfidi
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February 4, 2014 2:22 pm

Louis James and some of the other Casey Research folks are pretty smart about broad trends. Like other stock pickers, nobody’s perfect.

rogie
Member
1
February 4, 2014 2:56 pm
I thought it was a given that various entities manipulate the price of Gold to suit their own means? As the author of the referenced article concluded: “The selling of gold to squash the price can only succeed if other governments follow the same road. China won’t and has been buying the physical gold the West has sold. This break in the ranks of central banks is a time bomb. If western central banks do not have the gold they say they have, the damage to their reputation and to the trust in national currencies will implode. If gold returns… Read more »
rogie
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February 4, 2014 2:57 pm
ROBIN STEEL
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February 4, 2014 8:43 pm
i HOPE THAT I AM NOT GOING TO CAUSE A HUGE REACTION….I like reading this thread, and am a “Political Economist”, and try to see the “Big Picture”…I would like to know what might happen if RIO (TINTO) and BHP decide to ramp up gold production in Utah, And New Guinea…I think that they are sitting on a “Game Changer” of unreported but easily accessible mountain of gold and other PMs. Here is my story… Anaconda Copper at Carr Fork , on the western slope of the Oqquir Mountains, is directly across the ridge from Kennecott Copper, and both companies… Read more »
rogie
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1
February 5, 2014 1:01 am

Right wing media? You’re kidding, right?

arch1
Irregular
4192
February 5, 2014 2:43 am

Robin Verrry interesting tho not surprising. I think that
“socialist” also favor wealth transfer; from your pocket to theirs.
Right/left wing media propaganda ministry of Government class.
Think Socialist/Capitalist-government bird resemble a turkey.

arch1
Irregular
4192
February 5, 2014 2:50 am

Please substitute question marks for periods in prior comment. Keyboard
question mark over-used & over-heated on my machine.

ROBIN STEEL
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February 7, 2014 3:23 pm

Dear Rogie:
I classify The Wall Street Journal, Fox news and Clear channel as “right wing”…but if you think otherwise, you are just another fanatic from the right wing…

We already have Corporate Socialism, and every time I am in China, I see “Caputism”…
Where the “Capitalists” and “Communists” are partying in Shanghai, while the 99.9% are protesting inequality, just like here… What do you think about the TPP?

Obama wants Fast Track authority and it will make Corporations more powerful than Governments…a dream that Bush didn’t even have, ain’t that sumthin?

lazpitts
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lazpitts
February 7, 2014 6:17 pm
Robin, RIO is the “Phoenix/resurrection of” of RTZ,= Rio Tinto Zinc … as a former writer/author of investment newsletter,”The Insiders Report”, Larry Abraham, (since passed, but his last calls were the big copper properties in Panama), whose moto was follow the money .. identified the R, in RTZ as, R = Rothchilde The original founders, family name Bauer. (Moses Amschel Bauer is born in Frankfurt, Germany, a money lender and the proprietor of a counting house ( who posted a Red Shield, … [a red hexagram (which geometrically and numerically translates into the number 666] … over the entrance of… Read more »
lazpitts
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lazpitts
February 7, 2014 6:26 pm

continued; ) is their Coat of Arms, recently the “Pilgrim Society” and it’s member names have turned up in ongoing research of the Monied Powers in the last several decades.
READ: The House of Rothschild: (multi volume) Money’s Prophets: 1798-1970s by Niall Ferguson, Harvard Historian

arch1
Irregular
4192
February 8, 2014 12:20 am

I PITTS I know name Bauer,same as Dutch Boer & means farmer.
What is significance of change Rothschilde? [child of wrath/roth ?]
Do you imply; great satan/anti-christ connection?

ROBIN STEEL
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February 21, 2014 1:14 pm
Dear I Pitts, and Frank Thank you for your very informative additions to this thread… I would like to find the primary sources for some of the statements….I am a writer, and would like to put these people in a story that would reach a broad audience; because I believe that “We the people” need to get together with “They the Other”people and get rid of the feudal relics that impede democratic progress, IF in fact, we believe that “All men are created equal”…. As it stands now, we have a murky idea that “something is rotten in Denmark”, but… Read more »
Larry Allbritton
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Larry Allbritton
February 4, 2014 9:22 pm

I don,t know if you and the Thinkolator have ever exposed a teaser from Sean Brodrick, but he is touting a “secret alternative gold investing strategy capable of turning $10K into $80,642.00 in only a year.” I,d like to know how he arrived at such a precise amount? Good luck tryIng to thinkolate on this one. Thanks for any info you come up with.

arch1
Irregular
4192
February 22, 2014 9:43 am

Larry: I do not know of person you name, but I can show how such figures are arrived at. In history of prior year find 10 stocks that had gains. Invest in 1st for a 3 or 4 week period,sell ,invest total in 2nd stock for 3 or 4 weeks ,sell, invest total in 3rd pick,etc etc. etc. 10 times. Result is all winners =big precise gain at year end. Impossible in real life. Figures don’t lie but liars figure , is an old saying.

miltonmoney
Irregular
1
February 7, 2014 2:36 pm

I watched this UPTURN MILLIONAIRES special,,,yeah it was highly motivational…I too wanted too be a winner and grinner like these GUYS…..I was slathering at the mouth,,move over newbies im going too bully in and buy up gold and silver stocks…ahhhhhhhhhh I was gob smacked,,stuck too my seat not missing a word, AHHH the adrenial RUSHHHHHHHHHHH.DAMN i can only deal in the AUSSIE MARKET.THANKS GUYS FOR VID,,im loaded up in this sector again…ahhh lick my lips..$$$

arch1
Irregular
4192
February 10, 2014 5:38 am

Miltonmoney; like your comment esp. winner grinner I think maybe I steal same. Prospect of gold makes eyes swell & brain go into continuous loop. Maybe wind & waves calm & kindly hyper of stock walk across lake & bring me many bags gold/silver?

Bob
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Bob
February 17, 2014 1:00 am

Hey, did you notice that Rick Rule and Doug Casey were both sporting the same ridiculous hairdos? The comb forward. Looks so stupid.

hedy1234
Irregular
360
hedy1234
February 7, 2014 4:43 pm

1. Regarding the “10 baggers”-AAU is on their “5” bagger list. Dalradian is on the list. Pilot is on their list. Eurasian and Gabriel are not on their list. They have a total of 9 companies they name as potential 10 baggers and 9 five baggers.

Conceptually if you bought equal dollar amounts in each one you would probably do quite well when gold and silver rebound……..

2. BHP already produces 90,000 ounces of gold per year. Small financial impact on this hugh mining company.

John Loren
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0
September 20, 2014 9:04 pm

Howard , Please , Do You have complete list ? If so can You list them here ? Thanks , John

Howard
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Howard
September 21, 2014 2:55 pm

John, The list is from a paid subscription so it would not be appropriate for me to publish. If one asks if a particular stock is on the list I will confirm if it is……. Howard

Bubbles
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Bubbles
February 8, 2014 11:15 am

I have what’s known as “sleazeball radar” and this 10 bagger hype from Casey is setting off all the bells and whistles. I mean just look at these guys… they are salivating over prospecting for sure… the prospect of taking your money. At least Rick Rule is upfront enough to flat out say he’s gonna kick your dumb ass.

Scott Wheeler
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Scott Wheeler
February 9, 2014 11:57 am
If Zimbabwe doesn’t scare you and you looove a 10% (current yield) dividend, paid quarterly, BTW, Caledonia (CAL.TO in Canada, CALVF in the US and CMCL in Britain) is currently at 52-week lows (sixty cents USD) and definitely worth a look. ZERO DEBT and $25MM in the bank, this little engine that could and can and does is a cash moo-cow, adding just about $4MM clear profit to the bank every quarter – producing just under 50K ounces Au annually. They are about to start using that cash to “grow” by taking advantage of failed miners’ resources. Full disclosure –… Read more »
JT
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JT
February 22, 2014 7:19 am
Zimbabwe should scare everyone invested there. Imagine what will happen to gold miners in Zim when the price of Au goes up to USD 3,000. Yeah, the crazy people running that “banana republic” will simply confiscate all mining assets and leave you with nothing….a whole ocean liner of nothing. After a quick scan of Caledonian Mining’s chart, I won’t hold my breath for a 10-beggar, either. While most solid juniors were 10-beggars in 2010-2012, CAL.TO was a little more than a 1-beggar. Dividends are great, but safe jurisdictions DEMAND premiums in bull markets. The kind CAL.TO will likely never see… Read more »
Shellin
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Shellin
February 9, 2014 12:48 pm

These guys have been pushing Eurasia and Almaden for years. I remember wasting money and going to a Casey Gold and Silver conference in Las Vegas and Rule was Pushing Almaden and Eurasia back then and that was 7 long years ago. Look at a chart and see how these two have done over the last seven years. Everybody is in AW of these two guys, but I have NEVER made a penny on any recco they put out. They shill their buddies companys at our expense. Happily I learned that quickly.

RandySpears
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RandySpears
March 25, 2014 12:51 am

These guys love the prospect generators, which as you noted, have a track record of poor performance. Its a fine, safe way to run a biz as an exploration company but investors should stay far away. PGens are disaster for investors and stay away from anyone recco’ing them.

whitebloodcell
Member
0
whitebloodcell
February 19, 2014 2:30 pm
If anyone is interested I found the full list on another site: • ATAC Resources (V.ATC, C$1.71, 103.6M SO, 113.7M FD, C$177.2M MCap,www.atacresources.com) — ATAC has already been at nearly 10 times current levels, simply based on a different level of risk appetite in the market. The company’s discoveries in the Yukon are significant and have serious size potential. In a more bullish market environment, this company could be a 10-bagger without changing. However, we expect ore excellent results this year. • Banks Island Gold (V.BOZ, C$0.64, 34.4M SO, 42.4M FD, C$22M MCap,http://www.banksislandgold.com) — BOZ has the assets and the game plan… Read more »
hedy1234
Irregular
360
hedy1234
February 19, 2014 10:36 pm

This is NOT the list……..

Joe
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Joe
February 21, 2014 10:41 am

That’s from March 2013, as it says on “the other site”

Bubbles
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Bubbles
February 22, 2014 12:11 am

If that is really last year’s 10 bagger list then people should take a good look at it because it’ll make you hesitate before plowing your funds into this year’s list. Every one I looked at was down 50% by year end. Sounds more like a “BagHolder” list.

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