Thursday, April 20, 2023

Has the USAU rebound started

Markets dipped, but USAU managed to trade GREEN all day…  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

*Sponsored by Lifewater Media. Please see disclosures below

 

I have to say, this is one of the strangest times I've seen for the market in the last several years.

Everyday we are seeing a dip to start the day, and then it magically gets bought up at the close 🪄. This has been happening for the last couple of weeks, and I've talked about it a lot in some of my recent live sessions.

I really think we are closing in on a market top for the short-term.

Remember, this is OPEX week for the market. Things will likely continue to be very choppy out there the rest of the week, and I continue to lean on the bearish side of things right now.

But do you know where there is a bull market right now?

Small-cap stocks!

It seems like everyday, there are dozens of them up double-digits, or more!

Just like the little stock I told you about yesterday, US Gold Corp (Nasdaq: USAU).

USAU was actually GREEN all day yesterday, even though gold mining stocks, in general, were heavily in the red.

I'm telling you, I really think this could be a great time to keep an eye on this stock.

In case you didn't read my note to everyone yesterday, I copied it below.

 

If you have been following me for any length of time, you know I love gold stocks.

Some of my biggest winners have come from trading stocks in the gold mining sector.

With gold now trading well over $2000/ oz, I think it is a mistake to ignore this sector.

There are so many great opportunities out there right now, right under people's noses, but they just aren't paying attention to them.

Right now, I think it is crucial that you get US Gold Corp (Nasdaq: USAU) on your radar immediately.

If you recall, the last time I brought this idea to your attention a few weeks ago, it went on to move over 68% higher just a few days later.

 

I hope you think I have some credibility when I'm talking about this stock!

Or how about just last week, when I showed you a small tech stock that was trading for around $3?

A few days later, it was trading over 90% higher for over $6 a share!

 

I'm telling you this to make a point – small stocks are on fire right now, and you need to be paying attention! ðŸ”¥

Here is why I think it is important to look at US Gold Corp (Nasdaq: USAU) right now.

You see, last time, I spotted a key break above my custom indicators. That move then led to a 68% gain – and you got a front-row seat to see it all right from the beginning.

We have retraced that whole move, and right now is almost a mirror image of what I saw originally.

The stock is sitting at about the exact same level, and it is now trading above the same indicators I saw last time.

Of course, this is real-world trading, and things don't necessarily repeat themselves exactly the same way.

But, what I am seeing in the chart above sure gets me excited to see what happens next!

Remember, just a few days ago raised $5M in fresh cash at $5.75 per share. 💰

That means "big money" came in and bought shares 30% higher than the stock is today.

If these big investors were so confident in buying the stock @ $5.75 just last week… imagine what they think of the price right now, around $4!

The way I look at it, US Gold Corp (Nasdaq: USAU) is now sitting on much more cash than it was a couple of weeks ago, AND the shares are trading at a much bigger discount.

If that isn't an opportunity worth looking at… then I don't know what is!

 

When it comes to gold right now, I don't think the story could get much better.

Central banks are running wild with printing money, and I believe it will eventually lead to an uncontrollable surge of inflation. That is why the Fed is so determined to (try) to keep a lid on it right now.

I have held physical gold for a long time. I own zero Bitcoin, but I love holding the shiny stuff.

I think everyone knows that gold is under intense demand right now. We have seen nearly unprecedented demand from buyers who want to hold real gold, vs keeping their money in an unstable bank. Who can blame them?

I see headlines like this everywhere:

Or this (1)

In this report, it says, "There's been a notable increase in demand for physical precious metals here in the UK…The big thing we've noticed is the growth in small-scale retail investors."

The writer says that he believes there's been a sharp change in sentiment among retail buyers over the past couple of years. These investors are now more willing to consider buying physical gold and silver than they have been in the past.

It's true. As more and more investors have been hoarding all types of gold, it has pushed up prices to near-record highs.

(As you can see, gold just broke the all-important $2000 recently… where do you think it is going next?)

This is confirmed when I looked at the recent surge in Google search terms for anything "gold" related…

With the soaring demand, we believe it has been nearly impossible for bullion dealers to keep up with the pace of buying. That may be creating even more upward pressure right now (2).

 

 

As I was digging into quality, small-cap gold names, I loved what I saw when I found US Gold Corp (Nasdaq: USAU).

The title of this article nearly says it all – USAU is a highly leveraged bet on soaring gold prices (3).

 

Seeking Alpha has a great snapshot of US Gold Corp (Nasdaq: USAU) that shows the analyst coverage, ratings, and price targets out there right now (4)

"Strong Buy" ratings are always good to see, but notice those price targets in particular.

The average target has an implied upside 281% higher than current levels.

I found this list of analysts covering US Gold Corp (Nasdaq: USAU) on their corporate presentation (you should check it out for yourself here):

Also, from the presentation, you can see a great map of their operations in the heart of "gold country" in the US (5):

This snapshot is a perfect summary of US Gold Corp (Nasdaq: USAU) right now…

US Gold Corp (Nasdaq: USAU) has a "feasibility study" that was completed (again, I really encourage you to look at the corporate presentation and see for yourself).

A big thing that stands out to me is the projected "internal rate of return" and the "payback years."

Look at how quickly those numbers grow as the price of gold increases.

Here is what I am thinking…

USAU's own projections only have $1825 as the "optimistic case" in the chart above.

Well, guess what? Gold is over $2000 right now and seems to be climbing each week that goes by.

I can only imagine how impressive these numbers will be if gold holds at current levels (or better?)!

 

Overall, I think US Gold Corp (Nasdaq: USAU) is an excellent opportunity to look into once again.

If you are like me and think that the bullish trend in gold is here to stay (at least for the short term), then US Gold Corp (Nasdaq: USAU) is a stock you should spend some time getting to know.

Take some time and learn more about what's going on by reading this summary.

It's only trading for around $4 a share (right now, at least), has a tiny little market cap, a fantastic price chart, and I think it has a great-looking balance sheet.

As you do your own homework, you'll see that US Gold Corp (Nasdaq: USAU) has a strong management team that has proven to know what they are doing.

Did I mention that US Gold Corp (Nasdaq: USAU) recently sold its interest in one of their projects to Barrick and Newmont (yes, 2 of the biggest gold companies in the world!)

The fact that major miners wanted to buy rights that US Gold Corp (Nasdaq: USAU) already owned should tell you that they know a thing or two about the mining industry!

Anyways, as always, you need to do your own homework and see if this is a good opportunity for you. I would suggest you get started by visiting the USAU website and see for yourself what all of the opportunities are, as well as the risks.

There are always risks to trading, of course. It's up to you to decide if you think the risks outweigh the potential rewards for every trade you make.

Good luck, and happy trading!

To Your Success,

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