My last #1 risk/return play – Silvercrest Mines – agreed to be acquired by First Majestic earlier this summer. The takeover premium was 35%. My newest #1 risk/return play is a gold mining exploration company with a large gold deposit in both Canada and Nevada.
There are two large mining companies that are likely buyers of this company, as I discuss in my report. But aside from the possibility of an M&A transaction, the stock of this company appears poised to take-off again if we can get some cooperation from the price of gold:
There are several reasons for this, not the least of which being that this company, in my opinion, is the potential takeover target for two large-cap gold miners, one of which is Goldcorp.
This stock has also significantly outperformed the S&P 500 since the end of July:
You can access my in-depth report on the stock which I explain in detail why this Company’s stock is significantly undervalued and why it has a “takeover target” on its back by clicking on the pic below or this link: De-Risked Junior Mining Stock Report.