Today, I'm writing about a speculative stock that I think has some potential for making a big move in the future. I normally do not hold stocks this cheap for more than a couple days due to the risk involved in the swings in stock price. That said, I took a small position in a company called Sutter Gold Mining (SGMNF) back in August. I got in at around 21 cents. Since then, the stock dipped to as low as 14 cents (33% down from my purchase price), but has recently risen back to my buy price on some positive news.
A big factor for me in taking a chance with this company is because the mine location fairly close to where I live. For whatever reason, this gives me a little confidence in the prospects that there is a lot of Gold still left in the California foothills. Maybe one day I'll go tour their site.
Last week, they had a nice press release stating the results of their recent gold survey from drilling. You can read the release on their web site. www.suttergoldmining.com
From the press release, the initial results of the drilling sounds promising. My expectation is that they continue to work toward mine production and processing gold later this year. The weather here in Northern California has been very dry for winter, which means that they can continue to make good progress in making preparations for actual production. In other words, I would guess that they are either on track or ahead of schedule in meeting their production deadlines.
Volume in the stock has also picked up since it was added to a higher level exchange (still over the counter).
Keep in mind that a 20 cent stock that moves down 2 cents lost 10%. This can happen in a day for stocks priced this low. The risk is very high with this one, so I'm counting on a series of positive press releases in the coming months that could enhance the price of the stock, giving me a chance to at least make double on my investment.
Have a good week!
~JP
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