UPDATE UWN

Since a couple of weeks, trading on UWN was a lot higher than usual with a very good upswing from low 80's to over 1$ then back to mid 90's.

Well this sudden interest could come from GodStar slots playable on Facebook.

This is a new application that could be a great marketing tool for UWN. For example this morning on their Facebook site, they had posted an invitation to visit them in Seattle.

Well, if this advertising and promo tool is well exploited, it could definitely bring some more customers and profit to UWN.

This is another example showing that they are not sitting simply on their actual slot machines route and their mini casinos: they want to expand and I think they might be having a shot at that.

We also have to remember that UWN could explode rapidly if they were getting a casino license in Washington.

As usual, do not invest more than you can afford to lose.

Great Panther: time to get in?

Well, I do not recall seeing that panther at that price for a long long time. Thanks to silver price, we have now a very good and solid entry point into that PROFITABLE silver producer.

There has been many articles written about gpr.to  (GPL on Amex) recently on Seeking Alpha:

http://seekingalpha.com/article/1200601-finding-a-small-cap-alternative-in-great-panther

http://seekingalpha.com/article/1163221-bullish-on-silver-prices-why-this-panther-could-be-great-for-you

http://seekingalpha.com/article/1060611-silver-bug-7-stocks-for-you

As far as I am concerned, GPR.TO is not a speculative buy. That company has been producing silver for a very long time and in a profitable way and their last report where it shows intersecting high grade gold-silver mineralization will simply add again more reserves to it’s portfolio.

On their last reported quarterly results, GPR shows a cash on hand near 27M$ meaning that their cash position PER SHARE is over 20 cents PLUS a 4,5M$ in recoverable taxes totalling 31.5M$ or close to 25 cents per share. Strictly on a cash basis GPR.TO is actually trading only at less than 6 times on hand cash. When you add receivables (another 12,8M$) you then end up with Cash on hand and cash equivalent of 43M$ or 30 cents per share. This is very high for a profitable producing mining company. It is still a junior company but a highly profitable.

The real value of GPR.TO  is their properties because you may have the cash you want, if it sits in the bank and you do nothing with it, there is simply no leverage associated.

On the property side, well GPR.TO  has developed (or is the process) 3 more: San Ignacio. Santa Rosa and El Horcon.  Those 3 properties will add up again resources

So, why would the share tanked that much over the last 6 months from a high of 2,33$ in mid-September to a low of 1,39 on Friday February 15^th?

In my opinion, I believe that it is only a question of Silver price. What is interesting to compare GPR.TO to is NYSEARCA:DSLV that tracks silver. Without going too much into details, let’s simply say that when there is a net difference between those 2, GPR.TO has a tendency to fill the gap and actually there is one that has been amplified recently and GPR.TO will have to fill it pretty soon. The correlation between the 2 is interesting (but naturally not an exact science) and if it does, as it has done in the past, I expect GPR to get back closer to 1,85 to 2,00 range in the coming weeks. By doing so, there is a potential gain of close to 40%. That is really good as it will allow taking the profit on some shares and keeping the rest running at a cost close to 0.

So, am I bullish on this one: YES I am.  I own shares of GPR.TO since early 2012 and that company has been one of the most profitable companies I have ever traded. As I said, I always take some profit when possibility arise BUT I always keep most of them only selling some to reduce my cost base.

I fully expect a great future for GPR and can only imagine what will happen when silver goes back to 40-50$ range.

As usual, do not invest more than you can afford to lose.