Morgan Report’s “Fuse is Lit on This Silver Miner” Stock

By Travis Johnson, Stock Gumshoe, March 23, 2017

I don’t think I’ve ever written about David Morgan or his Morgan Report mining newsletter, so when a reader popped up to ask about a new pitch from him this week, I thought I’d take a quick look-see for you. This is going to be short, we’ve got the Thinkolator’s best answer but I haven’t looked deeply into the stock beyond that.

The Morgan Report runs about $500/year, and I don’t know what David Morgan’s track record might be — he’s one of the more visible silver enthusiasts in the world of investing punditry, and he has the same focus on physical silver and “sound money” that most hard assets enthusiasts have, so he’s very much big picture driven. I don’t know whether or not he’s particularly skilled at picking junior miners, but he has at least been at it for a while.

And the teaser pitch is a little bit thin on clues this time around, but let’s see what the Thinkolator can do…

He does reiterate that he’s mostly a fan of physical silver, but that he likes mining stocks sometimes as well:

“While most of my research and writing focuses on the value of physical silver and the misunderstandings I believe exist in the market, I constantly research mining companies and bring our members the very best.

“After all, if silver is a good investment, then it stands to reason that silver miners — the producers of silver — could potentially be as good as an investment, maybe even better.”

And, of course…

“… every once in awhile a silver miner comes along that impresses me enough to recommend it to readers of The Morgan Report.”

So… what clues do we get? This is about it:

“I studied the company for 20 months before I recommended it to my paid subscribers. And… it has so far been a very good recommendation. The price of the stock has DOUBLED since February.

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“Better still, I believe this stock could double again in the next few months, possibly tripling by the end of 2017. (There is precedent for this. Back in 2011, the stock was 4X its current price.)”

And one more specific hint that we can toss into the Thinkolator…

“Not only does this company have a good management team and a solid balance sheet, samples from two new vein targets appear to be VERY promising. (This information was just made public on March 16, 2017, by the way, so it is ‘hot off the press.’)”

And he also notes that he is personally a stockholder in the company. So what is it?

Well, the key for narrowing this down is, I think, that terminology — samples from “vein targets.” That’s not the terminology you’d likely use for actual drilling results, so it’s probably earlier stage sampling that they’re doing. And since we know it was made public on March 16, that indicates it’s almost certainly a press release (junior miners try as hard as they can to get their news out — they depend on getting investors excited about their future, because they always need more funding from further equity sales to do their exploration work).

So where does the Thinkolator take us on this one? To a little C$50 million explorer called Minaurum Gold (MGG on the Venture Exchange in Toronto, MMRGF OTC in the US).

Minaurum Gold is a survivor of the collapse in the gold and silver markets over the past five years or so — and yes, it was roughly 4X higher back in 2011, when silver was hitting its recent peak (and when gold was just about to peak). They raised enough money back in 2011 to keep a minimal spending pattern going for a while, and then raised money again last Summer, so they do have a little bit of cash right now (something like $2 million), and they did just issue a press release last week about two promising new “vein targets” on their La Quintera silver property (they also own a few exploratory gold projects, all of their projects are in Mexico — La Quintera was a producing silver mine 100 or so years ago).

So… is this a worthwhile investment? I have no idea, I’ve never looked at this stock and it’s at an extremely early stage — they don’t have reserves or resources booked, at least on this silver project, they just have the likelihood of some promising veins of silver (partly because this is a past-producing mine in an area where there are a lot of high-grade silver mines). Whether or not it’s worth your time is up to you — it has already doubled this year, with some additional enthusiasm based on that initial press release.

So… whaddya think? Any silver or gold enthusiasts feel like digging through the info on La Quintera or Minaurum’s other assets? Let us know with a comment below.


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macaries
Member
macaries
March 23, 2017 1:30 pm

I think its GPL Great Panther Silver

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πŸ‘ 16174
macaries
Member
macaries
March 27, 2017 1:42 pm

GPL announced a Peru mine acquisition in Dec for first Quarter 2017 (Now) http://finance.yahoo.com/news/great-panther-silver-acquire-coricancha-060000705.html

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rflrvgs
rflrvgs
March 23, 2017 1:58 pm

I see Harry Dent’s 2017 $700 gold price prediction several time in here. What’s Gumshoe’s thoughts on that rather contrarian thought?

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hedy1234
Irregular
hedy1234
March 23, 2017 9:05 pm
Reply to  rflrvgs

He has made this prediction every year revently. Has no validity.

πŸ‘ 1647
jayneq
Irregular
jayneq
March 24, 2017 11:20 am
Reply to  rflrvgs

I am not entirely sure about Harry Dent’s $700 low for Gold in 2017. prediction, however, several respected analysts with whom I try to keep up (Elliot Wave Cycle, Hurst Cycle, Gann Cycle, etc.), and some astrology thrown in just to confuse mattes πŸ˜‰ all forecast a low for Dec 2016. This was to be followed by a 1-2 month bounce (going on now but waning) which will be followed by a much sharper decline to form new lows below the Dec 2016 lows.
The analysts differ here regarding the lows amount…some state if gold falls below $1150 monthly, then it will go down hard to $750 or so, others state it will go below Dec 2016 lows but not Jan 2016 lows.
Either way, I am keeping my powder dry for now and watching the market carefully.
There is also a big warning around April-15-21 (including from Armstrong), where a Direction Change waits. Will Gold take a turn for a drastic low here or turn up, may be decided by this month’s closing numbers.

Jayne

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πŸ‘ 37
Carbon Bigfoot
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Carbon Bigfoot
March 25, 2017 2:30 pm
Reply to  jayneq

Can’t wait till it happens as I will load up on MS70 first strikes at bargain prices. They don’t fluctuate like the spot prices because they have a built-in numismatic premium. Tired of playing the hide the sausage game on junior gold and silver “homeruns”.

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wojogumshoe
Irregular
March 23, 2017 2:36 pm

TKRFF, TINKA RESOURCES, another silver project with big interest on hold.

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Kyle
Member
Kyle
March 23, 2017 3:40 pm

You got it, Travis. David added this stock in March newsletter to the speculative part of his portfolio. Just to clarify, he does not say this one stock should be bought, but only as 1 in a bundle of his speculative positions in order to spread risk.

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Andrew
Guest
March 23, 2017 8:58 pm

Excellent, always looking for an up and comer that survives a down turn, Peruvian BVN is interesting, http://eqibeat.com/top-20-silver-stocks-market-cap/

Link Quist
Member
March 26, 2017 7:55 am

SVBRF-Silver Bear is a hugely underpriced silver mining winner as it has over 65M oz of Ag but it is its grade that is the reason to buy… It has the highest grade ore of any existing AG mine on earth, higher than EXLLF (EXCELLON) with multiple pounds of ag/t! Its location of Russia is the reason it is only ~$.20 cents, but this is an easy 5 bagger imo. Also am a HUGE fan of MINCO SILVER (MISVF), GOLDEN ARROW (GARWF), and BEAR CREEEK (BCEKF)) as ALL ARE GREAT IN SITU AG Plays IMHO…

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Link Quist
Member
March 26, 2017 7:56 am

ASM – Avino Silver and Gold – Also Great LT Investment

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