“The Reason Why the World’s #1 Stock Picker Just Came Out of Retirement”

Lombardi's Robert Appel says "“If There’s One Gold Play I’d Buy in 2016, THIS Tiny Miner Is It”"

By takeprofits, July 19, 2016

[ed note: Travis is off on a training ride today, so Myron Martin volunteered this teaser solution that he came up with for a bonus article today… we’ve edited it for clarity, but this is his work and his teaser solution to a recent pitch for Lombardi’s Profit Taker, whose recent ad promises “The Secret Gold Stock of the World’s Greatest Stock Picker”, for your edutainment… enjoy, and please comment at the bottom if you have questions or comments for Myron.]

Maybe this is something to celebrate. I am writing this on our 56th wedding anniversary.

The following teaser appeared in my in-box this past week from Lombardi Publishing, who announced the return of a man they have labelled “the worlds greatest stock picker” — and we’re told that his very first stock pick this year in the gold sector, already returned 625%. He had retired 3 years ago after being editor/analyst for Lombardi’s Profit Taker newsletter, and though they begged and pleaded for him to return, it was not until the gold market began to rally that he agreed to do so.

I recognize the name Robert Appel but I don’t recall ever reading his materials or investing on his advice, but here are some selective phrases from his pitch to renew his service.

He claims, “we are in golds 4th super cycle in which the metal could hit $5000 an ounce,” and gives his reasons WHY! For those so inclined you can see the original “teaser” ad here.

Lombardi’s pitch throws out past gains like .47 to $132, gains Robert Appel has made in the past, to get your attention… and introduces his new pick as a recent IPO also having a 625% potential gain.

Robert believes, (and I tend to agree) that the bottom of the gold market was reached in Nov. 2015, which is why he agreed to come back and resume his illustrious career in stock picking. He cites as his main reasons the world wide move to negative interest rates and the fact that “paper gold trading” now exceeds 293X the actual available gold for delivery. That caused him to withdraw from the market in disgust, we’re told, because the regulators were allowing this blatant manipulation to exist except for minor “slaps on the wrist” in the form of millions of dollars in fines, but no bankers have yet gone to jail, so far it seems the profits are so lucrative to them it is just a cost of doing business.

So what has changed? Robert saw the establishment of the Shanghai Gold Exchange as having a good chance to bring market pricing back to what it should be, price discovery by actual supply and demand fundamentals.

Robert’s focus like mine is on the junior miners, and as usual in these “teasers” his publisher throws out some pretty fantastic numbers, and states “the SMART MONEY is buying into gold hand over fist.” Potential gains are phenomenal, even potentially life changing.

The ad says that his new “below a dollar” stock pick with “near term production” has a “10 bagger potential within months.”

Here’s a bit from the ad:

“Well, we’re looking at a tiny junior miner with the gold-producing assets of a giant. And I’m not kidding…

“This mine was owned by Barrick Gold for seven years, and it cost them over a quarter-BILLION-dollar investment…

“That includes all the infrastructure to get it ready for production. And it was just about to get started…

“But as gold slumped and hit bottom in 2015, Barrick was selling off its assets (some analysts said it was forced to).

“Including this one.

“In stepped a team of superstar gold vets who scooped it up.

“They didn’t pay half-a-billion, however. Not even $100 million or $50 million.

“They bought it for the FIRE-SALE initial price of just $2 million… literally pennies on the dollar.”

The mine in question was originally acquired by giant Barrick Gold (ABX) 7 years ago for $141.5 million, and they subsequently spent an additional $100 million on permitting and necessary infrastructure to bring it into production.

When Barrick got into financial trouble with some major projects that ran into permitting problems, it became a non-essential asset (as a relatively small mine in comparison to their major producing mines). Believe it or not, after an investment of over $240 Million in the super high grade project, Barrick sold the mine for just $2 Million (plus future profits from specified future production I will mention later).

While I recognize that Barrick is the largest gold producer in the world and is the darling of many institutions and hedge funds and a must for mutual funds, I personally don’t trust management or consider them shareholder friendly. At best I might consider option plays knowing those facts, it is not a stock I would want to own personally because I view management as having an “entitlement mentality” far more interested in feathering their own nest than rewarding shareholders.

This was cemented for me when I learned they paid an $11 million SIGNING BONUS for an executive they wanted, which I consider simply obscene, nobody is worth that kind of money at the expense of ordinary shareholders. That money would have gone a long way towards rewarding shareholders from the profits possible by a producing high grade mine, and there have been multiple mistakes like that to leave a sour taste in my mouth and put them in my bad books.

Putting that aside, I am happy to be able to pick up some of the crumbs from their table by their ineptness. Barrick Gold has sold numerous assets, you can Google “Barrick Gold sale of Papua New Guinea gold mine” and you will get loads of articles on their selling a 50% interest in their major mine in the country to the Chinese — remember, they had to raise many millions in capital to survive… but that still won’t give you the answer to the Lombardi teaser, unless you pay them the $995 they are asking for a subscription to the newsletter to get the REPORT FREE. WHEW what a deal.

That would take quite a slice out of the money you might have to invest in this stock directly… if you only knew the ticker symbol, a recent IPO. so how about FREE for members of Stock Gumshoe?

While I haven’t invested in it yet (and won’t for at least 72 hrs. after this gets published, per Stock Gumshoe’s trading rules), it turns out this stock was on my dozens-long list to research already… because that is what I do, I make it my business to KNOW what is happening in the sector at all times. In fact, when I can find the time to compile the figures on my selections for the past year, you might just conclude I am just as good a stock picker as Robert Appel.

Without further suspense, the stock being teased is K92 Mining (KNT.V, KNTNF OTC in the US), poised for production at the Kainantu high grade project in Papua New Guinea with all permitting in place, mill and tailings pond etc. all ready to go in a mining friendly jurisdiction.

Yearly production is targeted @ 50,000 oz’s from indicated reserves of 240,000 oz grading 13.3 gr./ton, plus another .84 M .oz inferred @ 11.6 gr./t., with lots of exploration potential waiting to be drilled to expand existing resources. The needed exploration is easily financed from near term re-start of production generating the cash flow required, preventing the usual dilution of early shareholders which means the risk level is much lower than most start=ups. Re-start expenses are more than covered by the existing $10.7M working capital in the treasury.

The management team consists of Ian Stalker, a Scottish born mining engineer and mining developer with 40 years experience in building and operating mines. He increased AngloGold Ashanti’s (AU) production by 10X during his tenure as Managing Director during the 1990’s. He was also CEO of Uramin (uranium) when it was sold to AREVA for $2.5 Billion in 2007.

Chairman Tookie Angus also had a successful mining career with Vantana Gold, (which I remember from many years ago) and Reservoir Resources which I owned for years and was taken over by Nevsun Resources, which I will be reporting on in my next regular column, since I now own it.

President Bryan Slusarchuk, an ex-Canaccord Broker, is helping the company raise more development money and tell the story. Alex Davidson, a former Barrick Executive Vice President, and Doug Kerwin, a former mine finder with the Ivanhoe Group, are advisors to the company, so they have a sound management team in place.

There is a realistic chance of a real big mine popping out of this small newly formed company, according to Ian Slater. Given the exceptional grades and the potential of the unexplored portions of the property ready to be drill tested it is likely to surprise to the upside.

Of course, as with any new mining projec, some execution risks always remain. They seem minimal at this point of development, but you should be aware of the fact that the deal with Barrick calls for payments of a further $60.M from future production, but given the huge money Barrick already invested to bring it to a production ready stage, it is still a real steal for this experienced new management team .

Cartesian Capital is k92’s biggest shareholder, and holds Net Smelter Return royalties on the initial pits to be developed, and in the first 36 months of production is scheduled to receive 18,000 to 20,000 oz’s of the gold production. Compared to the usual hundreds of millions that usually need to be raised to bring a new mine into production, this seems like a dream project in comparison.

Normally I would rate a “near production stage project” as worthy of 2% of your portfolio and I hope everyone will practice some restraint so everyone can get a piece of the action at a good price by being in early. If everything goes well you can always bump up your stake another 1or 2% in the usual summer doldrums once actual commercial production is announced. Don’t throw all your money at this one because my regular column that is almost finished will have another dozen or so projects to consider the end of the month, but this I considered a HOT immediate buy before the market at large even knows about this exciting project.


Share your thoughts...

55 Comments on "“The Reason Why the World’s #1 Stock Picker Just Came Out of Retirement”"

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Griffin
Irregular
1598

Glad to see you back Myron, your column reads with a little verve I hope it says as much for your health as it does the KNTNF. I just looked at a chart for K92 and it appears to have risen from .80 to $1.20 plus in the last 5 days. The tease is working I’m going to wait for a pull back. Now I will eagerly await your regular column. If there is anything I can do to help please ask.

niizajim
Irregular
968
I think I might like to jump in too, but I too am a bit scared to jump in at these levels. However, Myron wrote about it AT these levels and recommended it so I guess picking up some at these levels and then getting more later wouldn’t be a bad thing. I’m gonna think about it here for a bit. I like the idea that they can finance their exploration with their gold production! That should really limit future dilution, but they already have 134 million shares outstanding. Not bad though for what they have – if the Kora… Read more »
Griffin
Irregular
1598
I agree the company looks great, but I have a habit of buying high. When I first looked at $KNTNF it was up .20, it ended up .07 for the day. It has made a 50% rise IIRC in the last month that is probably in some part due to the tease, then I may regret it in a month. I originally got into $MUX long too high but was able to average down over the next 18 months. That’s another thing I don’t think this bull has a head of steam up yet and it has much further to… Read more »
sheldon
Irregular
236

Congrats on your anniversary.
This fellow-Canuck is glad to have you back.
Thank you for your generosity.

Gr8Full!
Irregular
11100

Myron, I am elated that you are fairing well. 🙂
Happy 56th anniversary to you and your wife. :-))
I recall my parents 60th, as I threw them a shindig
at the finest restaurant in town. :-)))
Be4everBlessed – #Jammin’

yelpik
Irregular
173

Happy anniversary Myron having passed your gold anniversary at 50 years your gold knowledge is top notch. Here’s hoping you make it to the diamond anniversary at 75 years. Cheers

alanh
Member
4066

Nice Myron (but if youre spending your time writing instead of arranging candle light dinners, you may not see the 60th !! 🙂 ) Good to have you back in the saddle.

Best to you and the ‘unlucky’ lady….congrats.

edski
Irregular
432

Welcome back, ya ol’ miner!

I have lost any Umph! I used to have over Mr’s. Slusarchuk and Tookie Angus, following them in Albania thru TIRXF.
I still hold onto my shares waiting for that elusive first production, first purchased on 11/11/11, on a mine with the opportunity that Tirex has at Mirdita.
I’ll watch…no…..I have other things to do. But good luck to all.

Good to see you writing again Myron.

robert64
Irregular
14

Happy Anniversary Myron and to your lovely bride!

Wonderful to have you back, thank you for your insight!

hendrixnuzzles
Irregular
9444

Thanks, Myron ! Welcome back, I am looking forward to your column.
In your absence I have made several suggestions to readers in the gold sector.
If you think any of them are poor picks I would appreciate you informing of this.

PVG, SAND, SA, MRLDF (pre-coup), BALMF, ERDCF, FNV, BRIZF, AG, LYDIF, BCEKF, IVPAF.

As you see there are not many actual miners in the list.

rocketman
Member
356

I bought MRLDF pre-coup so I’ll be keeping a closer eye on it than normal. My thinking is that Turkey wants to join the EU so they can’t afford to destabilize the country.

hendrixnuzzles
Irregular
9444

MRLDF…Plus, the Turkish conglomerate is muscular and owns 70% of the project. Not a high profile target for state appropriation. I am also concerned but not enough to reduce my position or get out.

No argument with those who are uncomfortable. These darned things are supposed to give us peace of mind, not anxiety.

Gr8Full!
Irregular
11100

MRLDF longer than I thought I was 🙂 I’m ok with that for now; Thank you Myron, HN and Gummunity. also PVG, IVPAF and? I forget… – Jammin’

rocketman
Member
356

One reason I became a member was because of my interest in mining stocks so I’m happy that Myron is back. I’m long PVG, FNV, SAND, SLW, NG, SVGM, and a few others. For some I jumped in too soon and only this year have they bounced back into positive territory.

I think we’re heading into a big bull market so I want to increase my exposure to miners. I’m looking forward to your new article and in my opinion is coming at the right time.

summerpd
Irregular
55

Thanks for a very informative piece; I have always enjoyed your insights. I have missed seeing your writing here.

Happy 56th! We are doing our 50th this year, so 56 is a goal for us to reach. Again, happy anniversary!

Gr8Full!
Irregular
11100

R Murray MD CFII
‏@Qwovadis
#Gold #Silver #Miners digesting gains for the next leg up
Dips to MA50 remain a #BUY
$NUGT https://twitter.com/Qwovadis/status/755684247571161092

Tabano
Irregular
23

Thanks, Myron !
Welcome back, I am looking forward to read your next column.
I wish you many years of wealth and health.
Pedro

niizajim
Irregular
968

Well, I regret now not having jumped in. What a day it had yesterday!

niizajim
Irregular
968
$KNTNF / KNT.V no position Was it this news that sent it spiralling? VANCOUVER, July 21, 2016 /CNW/ – K92 Mining Inc. (the “Company” or “K92”, TSXV: KNT) is pleased to announce that is has arranged a further non-brokered private placement to raise approximately $2,000,000 (the “Financing”) through the issuance of 1,709,402 units (the “Units”) of the Company at a price of $1.17 per Unit. Each Unit will consist of one Common share (an “Offered Share”) and one Common share purchase warrant (a “Warrant”). Each Warrant will allow the holder to purchase one Common share of K92 at a price… Read more »
AlbertaDoc
Guest
0

This was a private investor wanting in on the project. The company was not looking for additional financing, but was not going to turn down a large invextor either

ksand52
Irregular
86

To quote the following artical about the 2 mil financing

“The financing has been arranged with a single investor.”

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aKNT-2391173&symbol=KNT&region=C

The question then becomes Who is this single investor? It may have some bearing on why the stock jumped

niizajim
Irregular
968

WOW! How unusual.

That might indeed be the reason. Good find!

drlinks
Member
25

Ross Beaty bought $2M PP in K92.

Kev
Irregular
0

Thanks for the article, and Happy Anniversary!

I want to get in, but it has had one heck of a run here lately. Does anyone have any suggestions as we sit around 1.50? Try and wait, or open a position now? Thanks everyone and GL!

mgcolin
Irregular
3

Sorry but it seems like it is already fully valued – great deal at .70, but $1.40? lots of chances to get it lower when frenzy dies down.

mich
Member
2

I would suggest you might want to take what you view as a small position. You can add to it later if it drops and still have a good average price, and if it goes up, you won’t feel like you totally missed the boat. On these volatile stocks it is not necessarily good to put all your dollars in at one time.

Kev
Irregular
0

Thank you both for your advice. I have jumped in too late before, and I did not want to get caught again. As always, the advice is much appreciated. Have a great weekend.

turbotoots
Irregular
0

Myron, congrats on your Anniversary! This is the first article of yours I have read, very good, thank you. I was impressed and went to (I believe) your website myronswinninjuniors, and read 12 top holdings. Some were very dated NEM was purchased by Molycorp last year, plus tou recommend Endeavour is a steal under 2.60, but it went through a 1-10 reverse split last November, so this last entry is before that. Is there another website I should be looking at? Or will this one be updated soon?

Adam
Guest
0

What do stock picker do you recommend to purchase? I’m based in Europe:
KNT or KNTNF ?

Thanks,
Adam

alanh
Member
4066

Adam: Generally people (Travis) recommends using the home market as its more liquid. However, that has to be balanced against currency conversion/movement costs.

lc_fort
Irregular
6

As shown at this link
http://incakolanews.blogspot.ca/2016/07/daniel-ameduris-paychecks.html, Gummies are really fortunate to benefit from the reliable and objective analysis of Myron, Travis and other contributors. Otherwise, it would be so easy to get abused by paid promotors of stocks whose merits are difficult to assess.

Thousand thanks to all contributors.

Travis Johnson, Stock Gumshoe
Admin
8116
Yep, Future Money Trends has been hired by a bunch of little miners to do promotion. That’s one of the things that I mentioned as being off-putting regarding First Mining Finance and Brazil Resources in my piece on Friday, though I hadn’t seen the promotion of K92 yet… it’s a reason to expect those stocks to be much more volatile than “regular” mining stocks, for sure, and it’s completely understandable that some folks want to stay away completely from “pumped” stocks like these. It’s worth nothing, though, that promotion is a key competency of the best junior mining management teams… Read more »
lc_fort
Irregular
6

Thanks Travis for the additional input.

Promoted stocks may be very good stocks even if their promotors are paid and possibly biaised. That makes due dilegence really important and StockGumshoe is very useful in this process.

chatyak
Irregular
9

Agree to this. Not everything promoted is bad – and some of the names behind the promoted stocks have a long track record of solid business ethics.

michmana2
Irregular
454

New to board. Here is a recent interview with Bryan Slesarchuk, the President of K92 Mining, Inc.

http://sgtreport.com/

michmana2
Irregular
454

K92 only weeks away from production.

edski
Irregular
432

Yikes…..once again, we must continue to do due dilligence with everything, even buying toothpaste.
Just because someone has a video promotion of a certain stock does not mean that it is legit. Mr. Slesarchuck is a grat promoter and “money getter” to finance operations. Listen carefully how he intermingles one fact with another, but doesn’t actually connect the two together. He leaves that to you.

Biased? Maybe I am, but I heard it all before with TIRXF.

michmana2
Irregular
454
michmana2
Irregular
454

Long $KTNTF

Bill
Guest
0

This all sounds so “phoney” to me! Nothing but lies. World’s greatest stockpicker…baloney!

wmikemarshall
Irregular
78
Just my 2 cents. If you believe that we are in for another market crash and are buying gold related investments as I am doing, I think K92 will do well as most other gold mining stocks, so I threw a few bucks at it but won’t be “staring at it daily”……………….just waiting for the Crash to happen, then I’ll check the price. G20 meeting meeting coming up in Sept. could be just the thing once they announce “out loud” that the Yuan is now a Reserve currency and will be one of 4 in the IMF’s SDR basket of… Read more »