This NIA stock suggestion is endorsed by the American Creole Indian Aid Commission:
NIA has been receiving countless emails in recent weeks asking when we will be announcing our next new stock suggestion. We average about one new stock suggestion each month, but we haven't had any new stock suggestions since May 18th. There is a very good reason for this.
NIA believes that our latest stock suggestion Mega Precious Metals (TSX Venture: MGP), currently $0.455, is the opportunity of a lifetime and has the largest upside potential in the market right now.MGP perhaps has the most leverage to rising gold prices out of all gold exploration stocks. We will not be releasing any new stock suggestions until MGPreaches a level where we believe it is a lot more fairly valued.
MGP originally rose from NIA's May 18th suggestion price of $0.37 up to a high on June 1st of $0.65 for a gain of 76% in exactly two weeks! Since reaching its high of $0.65, over the past five weeks MGP has slowly drifted down 30% on very low volume to yesterday's closing price of $0.455, which is still up 23% from our suggestion price seven weeks ago.
A perfect storm is quietly building for MGP that will get it on all of the major radar screens of the wealthiest precious metals investors from all around the world looking for the greatest ground-floor opportunities with the least downside risk!
A major new development just took place at MGP that NIA was the first to predict, but this development actually surpassed our highest expectations! MGP traded practically no volume when this development was announced the other day, which tells us nobody knows about it yet. Once the word spreads about this development, it wouldn't surprise us to see MGP quickly soar past its high of $0.65 that it reached two weeks after NIA's suggestion at $0.37. Seriously, there is a very realistic chance that MGP could fly past $0.65 in just days if this news spreads fast enough.
We apologize for not telling you about this development when it was first announced on June 27th. NIA's whole entire staff has been hard at work starting the production of a new documentary that we will provide more details about in the weeks to come. To make up for this, one week from today on the morning of July 15th, NIA will be releasing an up-to-date in-depth and very detailed informational PDF report about MGP. This will be the most exciting report ever written about the company and it will highlight why NIA believes MGP's upside potential is many times greater than its downside risk. The report will compare MGP to its closest competitors that have nothing compared to MGP but are valued many times higher than MGP!
In our first alert about MGP, we wrote about MGP's flagship Monument Bay project and its inferred resource of 1,212,000 ounces of gold. At the time, after subtracting MGP's $11.22 million in cash(MGP has no debt) from its market cap at $0.37 of $27.49 million, the market was valuing MGP's inferred gold resource at only $13.42 per ounce.
When it comes to valuing gold stocks, "inferred" is the lowest category of a gold resource. As the gold miner drills more holes to try and more accurately prove what is in the ground, the next category above inferred is "indicated" and the next category above indicated is "measured". Our experience tells us that mining stocks see their largest percentage increases when upgrading from inferred to indicated, and from indicated to measured. When a gold mining stock already has proven and probable reserves, you most likely already missed out on the big run!
NIA predicted several weeks ago that we felt MGPhad a very realistic chance through its latest drilling program of adding 300,000 ounces of gold to the higher rated "indicated" category this year! In fact, NIA went on the limb and even said that it believed there was a chance that some of their gold at Monument Bay could even reach the "measured" category this year!
MGP just blew away our highest expectations!MGP just reported a 47% increase in their total Monument Bay resource base to 1,779,184 ounces of gold! Not only that, but 503,188 ounces of gold reached the indicated category, 68% more than what NIA had forecast! Most surprising, 88,905 ounces of gold reached the measured category. NIA was the only organization in the world predicting MGP would see a small amount of their gold resource reach the measured category this year and we were right!
Gold is currently $1,527 per ounce. Based on our experience in this industry, companies are typically being valued today at around $300 per ounce of proven/probable gold reserves, $150 per ounce of measured gold resources, $100 per ounce of indicated gold resources, and $50 per ounce of inferred gold resources.
Let's come up with a fair valuation for MGP:
Inferred resources 1,187,091 X $50 = $59.35 million
Indicated resources 503,188 X $100 = $50.32 million
Measured resources 88,905 X $150 = $13.34 million
Approximate cash on hand = $10 million
Total Potential Valuation for MGP = $133 million
Potential share price based on latest shares outstanding of 76.26 million = $1.74 per share!
Here we have it, NIA calculates that MGP's true value at this time should be $1.74 per share and the stock is currently only $0.455 because almost nobody knows about it yet but us! When the facts spread, MGP could easily become the best performing stock in the entire market for many weeks and months to come!
All NIA stock suggestions are completely unbiased. NIA has NOT been paid a fee by anybody to suggest MGP to the public. We don't own any MGPshares and never have.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us
NIA is not an investment advisor and in no way do we recommend buying MGP stock. Nobody has paid us in any way to suggest MGP and we have absolutely no financial interest in the company. If NIA ever purchases a position in MGP, it will be fully disclosed to the public. We are not making any target prices or projections for MGP. There is a chance NIA will be wrong about MGP and the stock could fall to zero. Never invest money into any stock that you can't afford to lose.