One penny stock pick we like while penny stock traders focus their attention today on Harry Lappa’s North Springs Resources Corp. (OTC: NSRS) in the mining sector is U.S. Silver Corporation (PINKSHEETS: USSID), (TSX.V: USA).
Remember when silver nearly tripled in from September ’10 to May ’11? It’s happening again as The Global X Silver Miners ETF (SIL) is up more than 15 percent this year and this junior mining stock is a strong candidate for some long-term gains.
“Located in the prolific Silver Valley in northern Idaho, U.S. Silver owns and operates the second largest primary silver mine in US history. Over 85% of revenues are derived from silver production and strong operational performance and cash flow from operations allow the funding of a redevelopment plan for the Coeur Mine and an aggressive exploration program on its under-explored property. USSID is focused on re-starting the Coeur Mine in 2012 adding another 500,000 ounces of silver annually. Current underground exploration and a development program are designed to upgrade current resources to reserves as well as to discover new mineralization. A dominant land package of 14,000 acres provides U.S. Silver tremendous future potential reserve growth.”
As the 2nd largest primary silver producer in the U.S with silver production comprising 85% of its revenues, this junior mining stock has the potential for an appreciation in its stock price. Shares in USSID are extremely undervalued right now.
USSID YTD Stock Chart:
USSID anticipates to be approved to be re-listed on the AMEX on or around March 1, 2012. It goes without saying that their position will be more appreciated upon re-listing since the OTC markets has not provided the opportunity for this penny stock expose their true value. There very well could be some sort of stock price manipulation and/or a possible short position that is holding the stock price at its current level.
According to the company, U.S. Silver Corp. will begin a share buyback program. USSID will purchase shares of its stock at the bid price, up to 22,000 shares per day (restricted based on average daily volume), excluding block transactions. This action will both provide nice bid support, and also build momentum in the stock once the price per share begins moving upwards.
USSID was brought to our attention and we are, in-kind, bringing it to your attention. As far as we have been able to determine, USSID is not a ‘paid promotion’ or a penny stock pump. We do not own any shares in USSID at the time of this alert nor are we to receive any shares, cash, or other form of compensation for profiling USSID.
USSID is simply an excellent opportunity for a trade which should be approached as a medium to long term investment. USSID is a real, profitable company, with millions in cash, and proven precious metal reserves and production. This is not another NSRS.
Although the rise in silver prices and the attraction that brings with USSID being th 2nd largest producer of silver in the U.S., the share buyback program instituted by U.S. Silver is attractive enough to see that the company is willing to invest its own money into the company stock rather than simply cancelling a large block of shares like most penny stock pumps tend to do.
Again, this is not a paid promotion so approaching an investment in USSID should be done with the understanding of not expecting a 100% return on your investment within a few days and proper due diligence is still required.
USSID has great potential and the re-listing on to the AMEX will be an integral transition in providing exposure to a larger group of investors and buying pressure. It is of our opinion that you can feel confident investing wisely according to your financial position into this stock and not lose any sleep like you would be forced to do with your ‘typical penny stock play’.
The luxury of knowing that is worth having patience for.Share