- Soluna Holdings (SLNH)* $10.08
- Galaxy Digital (BRPHF)* $11.98
- Sassy Resources / Gander Gold (SSYRF)* $0.34
Soluna Holdings (SLNH)* released a 26 minute Q&A on YouTube today Friday Feb 25th. The Q part of Q&A is from shareholders and interested parties about the forward outlook of Soluna. Management is very transparent. Shareholders appreciate this.
Link: Soluna: Michael Toporek and John Belizaire Answer Your Questions
Galaxy Digital (BRPHF)* – We believe there is an actionable series of events happening in the first two weeks of March 2022. The series of events are Investor conferences
How is this an actionable event?
The stock is trading near its 12-month low. As cheap as it has been since Jan 21. There are two events happening soon. The first is a listing for the stock in the United States. The second is the closing of the purchase of BitGo. This is a $1.2 Billion dollar acquisition. Both events are major milestones and that is why these five investor events are happening. Marketing publicity. Expect research reports to be published following the listing in the USA. Note the sponsors of the events. The price is low for a reason! Market makers in Galaxy are not supporting the bid side of the market allowing the share price to drift lower as they and the firms buy inventory (cheap) to sell into the coming events and publicity (expensive). Be a market maker! Buy now at the pre-event discount and own or sell into the anticipated rally. The fact that they are doing five investor events in one week suggests to me the listing in the USA market is close.
Now listen. This is all speculation on my part. But is SOP in the market so the probabilities are good that I am correct. Expect research reports to be published following the US listing. They could have a bad first Q ’22, but the trailing twelve months P/E ratio for Galaxy is under 4. This is a very profitable company. Yes, I am talking my book. Yes, I will probably buy more shares next week.
NEWS:
Sassy Resources (CSE:SASY, OTCQB:SSYRF) Corp, a controlling shareholder of Gander Gold Corp, said that on February 15, 2022, it acquired 18,223,431 common shares of Gander Gold at a price of 1.5 cents per share, 17,107,125 shares at a price of 2.0 cents per share and 8,831,500 shares at a price of 30 cents per share under non-brokered private placements and debt settlements. Gander Gold became a reporting issuer in the Provinces of British Columbia, Alberta, and Ontario on February 15, 2022.
Prior to the acquisition of the shares Sassy Resources held no shares or convertible securities of Gander Gold. As a result of the acquisition of the shares under the private placement and debt settlement, Sassy Resources now holds 44,162,056 shares and no convertible securities.
Sassy Resources’ non-diluted shareholdings now represent approximately 60.34% of Gander Gold’s issued and outstanding shares. The shares were acquired for investment purposes. Sassy Resources said it may, depending on market and other conditions, increase or decrease its beneficial ownership of or control or direction over Gander Gold’s securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.
LOTM Note: 44.162 million shares outstanding for Gander, if priced at C$0.30, is a valuation of US$9.6 million on Sassy’s books. Sassy, shares priced at US$0.36 with 47.538 million shares outstanding, trade at a market cap of US$17.1 million. Cash is at $2.5 million as of Dec 31, 2021. Sassy is a tiny company. They are not going to disappear since they don’t owe anyone money. $17 million market cap is nothing (figurative speaking), should Gander find gold. Gander has claims on multiple locations around the New Found Gold (NFGC) claim who has a US$1 Billion market Cap.
The province of Newfoundland is the hottest gold strike area in the world and New Found Gold is the most successful company in finding high grade drillings in Newfoundland.
The shares of Gander Gold are anticipated to begin trading in Canada in March of 2022 and in the USA OTC market in about 90 to 120 days from now.
Gander is one of the largest mining claimholders in Newfoundland. This is a play on Gander / Sassy finding gold / minerals of high enough grades to justify someone starting a mining operation.
Speculation for sure. But the company is debt free and more than the Gander gold subsidiary! Sassy has claim holding in British Columbia for copper, gold silver and further in land for Uranium.
The stock price “leverage” (small float in both Sassy and Gander) is very high with no borrowed money. This is an early stage exploration company. It will be five to ten years before any revenue could be forthcoming from actual mining. The price potential in the next one to two years will be solely from finding high grade core samples and the news related to these discoveries – should they happen.
An account related to LOTM has been slowly accumulating shares since June of 2021. Our purchase prices range from a high of US$0.65 to slightly below US$0.30. Our average cost is $0.42. Shares were purchased as recently as 2/25/22.
It is our feeling that Gander Gold being listed in Canada in two to three weeks and in three to four months in the USA will be publicity that could increase the share price to between US$0.40 to US$0.55 per share. I am not buying it only for this event. The upside and lack of liquidity is too great to only be in this for a 20% to 40% trade. Personally, my goal is five to ten fold over three years.
Look for weakness to buy or add to the position. Summer is the period for drilling core samples, so we obviously hope core samples from the summer 2022 are an additional catalyst for the shares. Gander is highly unlikely to mine the property but rather sell the property to a larger production company in the gold industry.
Sassy Resources (SSYRF)* was added to the LOTM: Ten Under $10 list, September 2021 at US$0.46 and a second purchase on February 16, 2022, at US$0.34.
We think the time is now to buy with the public listing of Gander happening in the near future.
- Sassy Files Preliminary Gander Gold Prospectus; Appoints Gander Officers and Directors December 14, 2021,
- Eric Sprott owns about 19% of Gander Gold.
- Sassy Identifies New Regional Gold Trend In Gander Gold … December 18, 2021.
- February 1, 2022, Sassy Resources distributed 8.8 million shares of Gander Gold as a distribution to Sassy shareholders. These are the shares that are being registered to trade in Canada and later in the USA.
Very small share floats for both Gander and Sassy. This is an advantage should news be positive but creates a small to no door out should the news be negative. Since there is no borrowed money involved, the greater risk is gold drops in price to a level that no one cares, and the stock is dormant for years.
As a speculator, I look for an edge or advantage over larger investors. This often comes in knowing the news (public news) before it is widely dispersed and or buying thinly traded shares of companies, no one has heard of. It is true that I have shares of Soluna Holdings (SLNH)* now $10.15 bought in 2012 at $0.078 cents per share. Nine years is a long time but the return from $0.08 to $10.00 annualized more than enough to compensate for the time.
Of course, I’ll work to shorten the time held to sold! 😊
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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