“We’re Sitting on a Goldmine!” Stephen Leeb

OK, if you read today’s weekend update email, you know that this is a rarity — a new Stock Gumshoe sleuthification on a Saturday morning, hurray!

But I have to make some allowances for the weekend, so I’m telling you the solution, but not doing much thinking … read on for the tease and the solution, and then y’all can analyze this one and sort out the nooks and crannies on your own. Enjoy!

This is from Stephen Leeb, who, in addition to being an outspoken peak oil proponent, is apparently a big fan of gold. Well, who isn’t these days, of course, but I gather he’s been riding this horse for a while now. He’d like you to subscribe to his Real World Investing, which is actually edited by Greg Dorsey, it appears, and in exchange you’ll learn all about this favored junior gold miner.

Here are the important clues in the tease — I can give you the stock’s name and ticker, but you’ll have to do the learning on your own …

“Of course, the safest way to participate in the precious metals bonanza is to buy the metal itself or some of the blue chip miners. But if you really want to ramp up your profits, the real action will take place in junior miners. And one mining company in particular could return 10-20X your investment.

“If you think that sounds far fetched, consider that in the mid-1980s to early 1990s, shares in Barrick Gold rose 50X. And that was during a period when gold prices were falling!

“Barrick’s gains during that period resulted from its rapidly expanding resource base. The more gold it discovered, the greater its asset base, and the more value investors attached to it.

“Today, Barrick has become a blue chip behemoth. While the title of “fastest growing resource base” belongs to another gold company, a junior, whose shares you can still buy for virtually peanuts compared to its potential.”

OK, so they don’t quite go so far as to call this the “next Barrick,” but that does have a nice ring to it. Some more clues?

“This company currently owns 50% of one of the world’s largest undeveloped copper and gold deposits. Located right in North America, the deposit contains some 8.9 billion measured and indicated pounds of copper, plus another 3 billion pounds inferred. (Copper prices are likely to escalate sharply on any hint of an economic recovery.) More importantly, the deposit holds 7.3 million measured and indicated ounces of gold, plus 3.8 million ounces inferred.

“And that’s just one of the company’s properties. It’s second major property contains some 29.3 measured and inferred ounces of gold. At $950 per ounce, that works out to nearly $28 billion for this property alone. Yet, you could buy this entire company today for roughly $900 million.

“Of course, owning a deposit is one thing, producing the gold is another. But this company has attracted the attention of some pretty big players. A couple of years ago, when gold was selling for just $675, Barrick offered to buy this company for $15 a share.”

And the answer?

NovaGold Resources (NG)

The large copper deposit is Galore Creek in British Columbia, the second one, the gold property, is Donlin Creek in Alaska, which is partnered with Barrick Gold (they’ve got a few other projects, too) … and yes, Barrick made a hostile bid to buy out NovaGold in mid-2006 at $14.50 a share.

After that? I don’t know anything else about NovaGold … you’re on your own, teach us well, and have a great weekend!

Oh, and if you’ve ever subscribed to any of the Leeb newsletters, don’t forget to review them for us — thanks!

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21 Comments on "“We’re Sitting on a Goldmine!” Stephen Leeb"

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SageNot
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SageNot
May 30, 2009 7:11 am

Leave it to Steve t/b 5mos. late with this well known “comeback kid!”

http://finance.yahoo.com/q/ta?s=NG&t=2y&l=on&z=m&q=l&p=m50,m200&a=m26-12-9&c=

Katie Catt
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Katie Catt
May 30, 2009 8:12 am

Actually, this has been in the portfolio of his $5000 per year news letter since late 2008 and back in his Complete Investor Newsletter portfolio since Feb of this year. Of course the share price has doubled since he recommedned it to subscribers.

Brian
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Brian
May 30, 2009 10:59 am

Well whether I know more about the company than what’s pitched here, No. Traded in and out of the stock last year and this year with a profit. Now it’s surging in price and increasing volume. I’m alittle more conservative in where the price is going to 7.50/share by the point and finger calculations. Good Investing! Thanks Gumshoe

Tim Dawson
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Tim Dawson
May 30, 2009 1:41 pm

OK, I had hoped Travis would gumshoe this one by now, but begging hasn’t gotten it done. Does anyone have a clue what stock Martin Hutchinson is touting that: Has a virtual monopoly in the telecom industry and is partnering with verizon. That will have substantial dividends in a few days?? I just gotta know (for free).

Will
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Will
May 30, 2009 2:17 pm

This is NDM as mentioned on another thread… matches perfect…

the best there is
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the best there is
May 30, 2009 6:59 pm

leeb has a knack for buying tops. look for ng to test $4.

Brian
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Brian
May 31, 2009 2:31 pm

What Leeb is not saying (aside from talking his book) is that the galore project is currently dead in the water. A very long and expensive power line into the project is required, which would run thru old growth forest and has the environmental folks in an uproar, as well as the B.C. Environment Ministry. Second there is no money for the line. Don’t bet the farm on “Galore Creek”

krishna
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krishna
May 31, 2009 5:48 pm

I own NG, but am not enchanted with its prospects. As Brian pointed out Galore Creek may take years to pan out. Worse, management in its recent talks have essentially said that they are suspending prospecting & readying any of it properties for production in 2009.

Darrell
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June 1, 2009 7:37 am

NG has had the large find in the public for awhile, but getting the gold out of the ground is a problem for them and could make it too costly to get out. It’s been talked about in the regular site of Gold-oil-etc. I’m still staying away because of these reasons.

gary
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gary
June 1, 2009 1:38 pm

New subject- Gryphon Financial seems to be all over my mail box, does anyone have any experience with them?

john sloan
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June 6, 2009 11:34 am

Bryon King recommended Nova Gold in his AGORA – Outstanding Investments back in Jan 2008. I foolishly bought – it has tanked – i finally gave up and sold for big loss. The OI portfolio is full of gold – Agnico, American Century, Gold Corp , Kinross, Newmont, Novagold, GLD, Van Eck gold and Yamana – plus silver

Mort T
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Mort T
June 7, 2009 9:19 am
About NG; On Feb 2nd, Dorsey Wright, the P&F people, had an article about Silver & Gold issues. It contained their Precious Metals Matrix, which showed NG as #1 versus 25 others in the group. I bought some at $3.52. When earnings (read losses) came out subsequently, the stock dropped to $2.15 on April 21st, and only started to rise with the rest of the precious metals. It hit $5.97, dropped to $4.71 this week, and finished at $5.16. Here’s the DW descriptiuon of their matrix: The final step of our analysis today in the gold area of the market… Read more »
Paul in Detroit
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Paul in Detroit
April 29, 2010 6:49 pm
I want to get into TRADING like you guys. I'm new. I am eager to learn, and will put in the time reading books, doing simulations, and homework, and joining the correct clubs, and buying the right newletters for information…………but I was hoping someone could give me more advice…………real world advice………..is it working for you guys? Are you making money? How much is a good amount to start with? Where are the best places to gather information? Should I just continue investing in real estate and collecting rents and hope the values will eventually go up? I want to work… Read more »
TKS
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TKS
June 12, 2010 4:07 am

TAlking about Nova Gold, you have no business investing in mining if you don't understand the basics of mining! Nova may have a large resource, but the amount of Au per ton is very very small, meaning the cost of production will be great which inturn means the profits will be LOW!

spreadtrader
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spreadtrader
May 30, 2009 10:59 am
A friend of mine shared with me his Complete Investor newsletter from December 2008 because he was IRATE about NovaGold. In point of fact, Leeb recommended NovaGold to his Complete Investor clients in December 2007 at 9.48 as part of his small cap portfolio. The knucklehead simply held it until December 2008 when he dumped it via a “RED ALERT” south of a buck….a 94% loss (lol…..I mean, what’s the rush with the RED ALERT thing). Apparently he’s recommending it again? Some of his ideas seem good…….but the guy can’t time his entries for trades……and worse, he can’t manage trades… Read more »
Stan
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Stan
May 30, 2009 4:06 pm

I agree completely with spreadtrader. His timing is not his forte. And that goes for both entry and exit points. He does seem to get long term trends correct though; such as energy and oil. He predicted $100 and then $150 oil, but then didn’t get people out fast enough when it started going down. Now, he’s predicting $100 and even eventually $200 oil and I think he’s got it right.

Sophia
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Sophia
May 31, 2009 12:48 pm

I have looked up the symbol NDM but get a “no match” for it. Can you expand on this (I am new to this site and don’t know which thread this was mentioned in).

david
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david
May 31, 2009 5:54 pm

tkg

crzyruss
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crzyruss
May 31, 2009 9:32 pm

With all these talks about mining companies how come nobody is talking about the great state of Utah!!!???

Darrell
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June 1, 2009 7:41 am

Please go to the Forum, we’ve really hashed this one out on: Gold,Silver,Platium..they have problems with possible pollution of fisheries in Alaska. Should be a long battle.

Peter Marks
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June 10, 2009 6:00 pm
I suggest that you do not spend a large amount of money to have Gryphon Financial suggest options or stocks to you for investing. Gryphon charges a lot for their services, but the returns are very high. In the past two months I have over a 80% return on the options that they suggested to me. I am in their VIP Hedge Fund Options program and I paid $50,000.00 for the program. Others have paid $100,000.00 for the same program. I started with a program that cost less, $5,000.00, and when I really started to make money, paid the additional… Read more »
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