On second thought, it's probably not nice to copy Stockwatch's entire story.
Though you should still read Sennen's four increasingly snarky news releases about the attempted LSL buyout, to add colour and due diligence.
Renowned and respected investment advisor and founder of Midas Letter, a subscriber-driven private investment strategy newsletter, James West, has recently reported his overview of the Trinity Silver Project, a Liberty Silver Corp. (LSL.TO) (OTCBB: LBSV) endeavor.
The Trinity Silver Project is located 25 miles northwest of Lovelock, Nevada (Pershing County) and shares its geographical location with major gold and silver producers including one of the largest silver mines in the United States, the Rochester silver mine owned by Coeur d'Alene Mines Corporation, which produced 125 million ounces of silver from 1986 to 2010 and has an estimated 120 million silver ounces in reserves.
As reported by West at www.midasletter.com, “In the month of September so far, the company has traded over 20 million shares and doubled in value. Silver itself has traded in a similar trajectory, increasing in value by 35% since mid-summer, and outperforming gold smartly. The most respected and experienced traders in precious metals fully expect the ratio of how many ounces of silver it takes to buy one ounce of gold to head towards 16:1 from its current level of over 50:1. That would imply a silver value of $110 per ounce.
“If Liberty Silver shares continue to trade at such a high beta to the silver futures price, the premium being awarded Liberty Silver could be substantial,” adds West.
We have become interested in a previous silver producing mine right here in Nevada just about to break into all time highs. Libery Silver (LBSV) has recently seen a major increase in accumulation and investment interest. Liberty Silver (LBSV) is permitting and intends to be producing silver at its Trinity Project which was one of the largest silver mines in US history possibly within the next 18-24 months. Trinity produced five million ounces of silver between 1987 and 1989 before Rio Tinto closed id down when silver prices went below $5. Now the ballgame has changed as silver may be on its way to test new highs at $50.The company is now preparing an updated NI 43-101 Resource Estimate and a Preliminary Economic Assessment (PEA). Liberty is beginning permitting as it believes it could move very quickly into restarting production as it already has an existing open pit mine that was once in production. Now silver is breaking above $30 and could move significantly higher over the near term possibly into new all time highs should QE3 be announced later this month. The higher prices has brought a lot of investment interest into this project and makes this project a potential cash cow with huge leverage to the price of silver.
James West, Midas Letter (9/26/12) "The math is very straightforward with Liberty Silver Corp.'s Trinity Project: 50 Moz silver at $30/oz, minus cash costs of $15/oz, equals $750M divided by 80M shares outstanding equals $9.38/share. Chop that in half for the sake of conservativeness, and you still get a price of $4.68/common share outstanding—if they don't drill another hole. . .investors are apparently arriving at a similar conclusion. A major Wall Street firm is actively accumulating a position after visiting the property earlier this month. . .after a second, more in-depth look at the company and its project, I decided to jump in. . .what sets Liberty Silver apart from every other TSX and Venture-listed firm is the caliber of the management and board of directors."
David Bond, Silver-Investor.com (8/30/12) "Liberty Silver Corp. has moved aggressively into the silver market and largely under the radar into the stock market as well. The company leap-frogged from the U.S. pink sheets to a full-on listing the Toronto Stock Exchange, without passing 'go' the NASDAQ or the TSX Venture Exchange, largely on the resumes of its board of directors and on the merits of the properties."
Jeb Handwerger, Gold Stock Trades (8/26/12) "We believe Liberty Silver Corp. is dramatically undervalued and overlooked, which is about to change as more analysts and investors become aware of this situation. The company has shown strong accumulation over the past three months during the summer doldrums; this may indicate smart money has been buying in anticipation of positive developments. . .we believe with drilling and exploration and the announcement of a PEA, Liberty Silver could be significantly rerated and its 24 Moz Inferred resource may move to the Measured and Indicated."
Liberty Silver Reviews SEC Order of Suspension 05 Oct 2012 19:34 ET
Liberty Silver Corp. (TSX:LSL)(OTCBB:LBSV) ("Liberty Silver" or the "Company") is providing this update regarding trading in the Company's securities.
Liberty Silver was named in an Order of Suspension of Trading (the "Order") dated October 5, 2012 from the US Securities and Exchange Commission (the "SEC"). Pursuant to the Order, trading in the Company's securities is suspended from October 5, 2012 through October 18, 2012. According to the Order, the SEC states that, "It appears to the SEC that there is a lack of current and accurate information concerning the securities of Liberty Silver because of questions concerning publicly available information about Liberty Silver, the control of its stock, its market price, and trading in the stock".
The Company believes it is in compliance with applicable disclosure and regulatory requirements. The Company is currently reviewing and working to resolve this matter. The Company will work closely and cooperatively with the SEC to resolve this matter for the benefit of our shareholders.
IIROC Trading Halt - LSL (all issues)
05 Oct 2012 10:22 ET
The following issues have been halted by IIROC:
Company: Liberty Silver Corp.
TSX Symbol: LSL (all issues)
Reason: Pending Company Contact
Halt Time (ET): 10:01 AM ET
The Investment Industry Regulatory Organization of Canada (IIROC) can make a decision to impose a temporary suspension of trading in a security of a publicly listed company, usually in anticipation of a material news announcement by the company. Trading halts are issued based on the principle that all investors should have the same timely access to important company information. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC)
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/October2012/05/c4733.html
IIROC believes it acted as quickly as it could. “It’s not common for the SEC to issue a temporary suspension on a Canadian-listed security and in this case IIROC staff were not notified of the action ahead of time,” Mike Prior, vice-president of surveillance at IIROC, wrote in an e-mail. “In issuing our trading halt, we have requested Liberty Silver release a statement.”
For now, Liberty Silver is simply halted on the TSX (typically a short-term action), but the SEC has issued a trading suspension until Oct. 18. The two-week period will give the regulator time to look into what it described as “a lack of current and accurate information about the company concerning, among other things, the control of its stock, its market price, and trading in the stock.”
For much of this year, Liberty’s shares traded at $1 or less. But a flurry of activity in late August gave the stock some momentum. From January to August, the stock’s trading volumes averaged about 42,000 shares per day, but shot higher heading into the Labour Day weekend. Volumes remained high in September and early October, averaging roughly 236,000 shares per day.
From Aug. 31 to Oct. 4, the day before trading was suspended, Liberty’s share price jumped from 75 cents to $1.58. During this period, the company’s market value climbed to $126-million from $61-million, almost doubling in just over a month.
JC – That’s great stuff. So we talk a lot about cyclical markets and secular markets and how long they typically last. The consensus out there seems to be that secular bear markets typically last longer than the 12 years that we’ve been in. So you don’t think that’s right? You think that we’re already in the next secular bull?
Ralph – We had 12 years, what do you want another five?
JC- Well, I’m asking.
Ralph – Give me a break. I think it’s over. The bottom was made in 2009. That was it.
JC – The generational bottom huh?
Ralph – You got it.
The Fed’s latest quantitative easing may cause problems for countries grappling with inflation and should prompt China to press ahead with economic reforms
QE3 will last for over two years, and the total amount of MBS purchases will exceed $1 trillion, more than QE1′s US$ 1 trillion.
The most direct path from QE to inflation is through commodities. This inflation angle hits emerging economies and low-income people hard.
Inflation, bad loans and a deflating property bubble are afflicting emerging economies.So, all is not worthless in the article. Still, watch out what you let into your head! You've gotta keep your concentration.
Indeed, the relative underperformance of emerging market stocks may escalate capital outflow in emerging economies, triggering financial crises like in 1998.