Week 18.2 Peter Schiff vs National Inflation Association
Peter Schiff is telling us that NIA is paid to advertise some mining stock that is recommended for it subscriber.
He also warn people not to buy stock recommended by NIA. How true is it you make your own judgement ok.
He also warn people not to buy stock recommended by NIA. How true is it you make your own judgement ok.
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Mega Precious Metals Inc. (TSX Venture: MGP)
Currently: $0.37
Important: NIA never recommends that you buy or sell any stock. We are not investment advisors and don't provide investment advise. NIA strongly warns when buying or selling any stock that you always use a limit order and never use a market order. It is also a good idea to always be patient and never chase a stock if it rises above the price you liked it at.
NIA is pleased to announce to you its latest gold stock suggestion. The company is Mega Precious Metals, Inc. and it is trading in Canada on the TSX Venture exchange under ticker symbol MGP and in the U.S. on the pink sheets under ticker symbol MPRXF.
MGP is a gold exploration company with three major gold exploration projects in Canada. MGP's most advanced exploration project Monument Bay is located in North East Manitoba. MGP has two earlier stage exploration projects located in Red Lake, Ontario called North Madsen and Headway.
MGP has 74.3 million shares outstanding and at its current share price of $0.37, MGP has a market cap of $27.49 million. In February, MGP closed on a private placement in which it raised $11.5 million by issuing 14.375 million shares at a price of $0.80 per share. MGP is currently sitting on around $10 million in cash.
MGP's current share price is less than HALF of where major investors invested $11.5 million into the company only three months ago! To the best of our knowledge, nothing negative has happened to the company since then. The stock has slowly drifted downward on very low volume averaging only 75,687 shares per day. We believe MGP is an undervalued, undiscovered gem, with astronomical upside potential once the investment community discovers it.
MGP's Monument Bay property has an inferred resource of 1,212,000 ounces of gold! If you subtract MGP's estimated $10 million in cash from its current market cap at $0.37 of $27.49 million, the market is valuing MGP's 1.2 MILLION ounce gold resource at Monument Bay at only $14.43 per ounce! Gold is currently $1,483 per ounce, which means MGP's NI 43-101 compliant gold resource base is being valued at less than 1/100th the price of gold!
That's also not giving MGP any value at all for their North Madsen and Headway properties in Red Lake, Ontario. Not many people know this, but gold was first discovered in Red Lake in 1926 and less than a decade later in 1936, Red Lake's Howey Bay became the busiest airport in the world with more flights taking off and landing per hour than any other airport in existence worldwide.
Goldcorp (GG), which currently has a $38.9 BILLION market cap, has a gold mine at Red Lake called the Red Lake Gold Mine, which is Canada's LARGEST gold mine! In 2010, GG's Red Lake Gold Mine produced 703,300 ounces of gold at a cash cost of only $297 per ounce.
MGP's North Madsen properties at Red Lake are comprised of the land packages of Laverty and East My-Ritt. The Laverty claim consists of six patented mining claims totaling approximately 240 acres that are contiguous with the historic Hasaga and Howey gold mine properties, which produced approximately 640,000 ounces of gold within similar host rock to those located on the Laverty property. Historic exploration on the Laverty property has confirmed the presence of extensive near-surface gold mineralization.
MGP's East My-Ritt property consists of eight patented mining claims totaling approximately 320 acres that are contiguous with MGP's Laverty property and adjacent to the historic Hasaga and Howey gold mine properties. Gold occurrences spatially associated with the structure include diamond drill intersections grading 18.2 g/t gold over 3.5m and 7.43 g/t gold over 1.0m.
MGP's Headway property consists of six (6) patented claims and one (1) unpatented claim units totaling approximately 320 acres. The property appears to have all of the essential geological elements including a well-developed intersection pattern of stratigraphic, shear / deformation zones that are associated with the high grade gold system on the adjacent mine properties.
MGP has an experienced management team that is committed to an accelerated growth strategy to develop MGP's projects. MGP's CEO Jim Rogers was previously GG's Regional Exploration Manager for the Red Lake region who was credited with discovering GG's high grade zone at their Red Lake Gold Mine. That's right, the person who discovered the high grade gold zone at the Red Lake Gold Mine, the largest gold mine in Canada, which produced 703,300 ounces of gold last year and is owned by GG, a $38.9 billion company, has now become the CEO of MGP and MGP owns two major properties at Red Lake that NIA believes the market is currently giving absolutely no value to.
MGP's Chairman is Ewan Downie, who is currently also the President and CEO of Premier Gold Mines (TSX: PG), a $624 million company. He was previously the President and CEO of Wolfden Resources, which was acquired by Zinifex Limited for $360 million.
NIA does not own a position in MGP. NIA could accumulate a position in MGP in the future. If NIA decides to purchase MGP shares, it will be fully disclosed at the bottom of our MGP profile on Inflation.us.
Our Legal Disclaimer: http://inflation.us/legaldisclaimer.html
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For the past two years, NIA has built one of the world's most impressive track records of free stock suggestions. Not including NIA's latest stock suggestion Mega Precious Metals, NIA has released 27 stock suggestions and they have made an average gain at their highs of 196% from NIA's profile prices.
NIA has always made it very clear that we are not investment advisors and our stock suggestions have been just that, suggestions. NIA has never recommended to its members that they buy or sell any stock. NIA's stock suggestions have been 100% completely unbiased. NIA has NEVER once sold a single share in any of its stock suggestions. Let us repeat, NIA has NEVER once sold a single share in any of its stock suggestions.
There is a certain well-known traditional old-fashioned stock broker who has recently been losing a lot of his business and believes NIA is partially responsible for his company's decline. NIA used to have a lot of respect for this person and we still agree with many of his economic viewpoints. Unfortunately, his brokerage firm will most likely no longer exist in a few years and it has nothing to do with the success of NIA.
We are not going to mention this person's name and give his brokerage firm any publicity. The truth is, this firm charges very large commissions of approximately 3.5% every time one of its clients buy or sell any stock. NIA for the past two years has been suggesting to its members that they open up online brokerage accounts with firms such as Etrade, Ameritrade, and Scottrade, where they can buy or sell any stock for approximately $10 per trade.
There is no reason why any investor should have to see a 7% gain in a stock that they purchase before making a profit. With an online brokerage account, if you invest $25,000 into a stock and it rises 5%, you would make $1,230 if you sold it. If you invested $25,000 into that same stock using a traditional old-fashioned broker and you sold it after it gained 5%, you would lose $543.75.
NIA would like to take this opportunity to make it perfectly clear that neither our organization, anybody who works for our organization, or anybody affiliated with our organization owns a single share of Mega Precious Metals (TSX Venture: MGP) or has ever owned a single share of MGP. We are shocked that this traditional old-fashioned stock broker who we used to have so much respect for would outright lie and say that NIA "pumped and dumped" this stock without presenting a shred of evidence.
It is impossible for someone to "pump and dump" a stock if they never bought or sold a share of it. Even somebody with no stock market experience can look at a chart of MGP and see that it has been falling straight down for months on almost no volume. It would have been impossible for anybody to have accumulated even a modest sized position in the company before NIA's profile. NIA profiled it right at the bottom.
NIA has the most intelligent membership base in the world. This old-fashioned broker is obviously extremely jealous of the success of NIA members who no longer have to pay brokers like him 7% per round-trip trade, more than the commission to sell a house. Yes, some of NIA's stock suggestions like MGP are risky and speculative. NIA made it very clear that MGP's gold resource base is an inferred resource and not a proven reserve.
The truth is, if you want to outperform the rest of the market, you sometimes need to take risks. The best performing mining stocks will be companies with inferred resource bases that turn them into proven reserves. If you invest solely into companies that already have proven reserves, their stocks are most likely fully valued with limited upside potential. NIA hopes that the rest of this old-fashioned broker's remaining clients soon wake up and realize they are paying 7% round-trip commissions for no reason at all.
NIA's track record speaks for itself. Let's see where MGP is trading at the end of 2011. NIA is extremely confident it will become a huge winner. In fact, we bet our reputation that it will become a huge winner from its current price of $0.47 over the long-term. Although NIA hasn't purchased a position in MGP yet, it is possible that NIA's President will begin accumulating a position soon.
If any investor wants exposure to many different well-known established mining companies with proven reserves that have already been discovered by the investment community, all one has to do is purchase the ETF Market Vectors Gold Miners ETF (GDX). With any online brokerage account for only a single $10 trade, you can purchase GDX, which is well-diversified into many of the largest most established miners. There is absolutely no point for anybody to have a brokerage account with a brokerage firm that provides no value for the large commissions that they charge.
Since NIA was formed in February of 2009, NIA has released 28 public stock suggestions. Only on 1 occasion has NIA ever owned a stock suggestion in advance before profiling the company to the public. That company was Garibaldi Resources Corp (TSX Venture: GGI). Not only did NIA's President Gerard Adams fully disclose his ownership of 183,000 shares, but he agreed to hold his shares for 90 days so that in no way would he benefit from any attention NIA's profile generated for the company. Our original profile of GGI was released on December 28th, 2010, and still to this day, Mr. Adams holds his entire position.
All other positions held by Mr. Adams in NIA's stock suggestions were purchased well after our profiles were made public. This means, except for GGI, NIA members always had the opportunity to purchase NIA's stock suggestions before NIA's management did. All positions held by Mr. Adams are fully disclosed at the bottom of our profiles on Inflation.us. Mr. Adams is a long-term investor and has never once sold a single share purchased in any of NIA's stock suggestions. Besides Mr. Adams, nobody else who works for NIA or has any affiliation with NIA has ever bought or sold a single share in any of NIA's stock suggestions.
There is a reason why Glenn Beck calls NIA a very credible organization, yet no longer invites this stock broker on the air. There is a reason why NIA's membership base is growing by leaps and bounds and far exceeds this stock broker. NIA's President spends 12 hours per day studying the economy and researching stocks. His number one goal in life is not making money for himself, but is preparing Americans for hyperinflation and helping as many Americans as possible survive and prosper during the currency crisis that is ahead.
Here is a list of all of NIA's past public stock suggestions along with their percentage gains at their highs:
Newmont Mining (NEM)
Suggested on February 26th, 2009, at: $40.68
High on September 22nd, 2010, of $65.50 +61%
Barrick Gold (ABX)
Suggested on February 26th, 2009, at: $31.34
High on April 21st, 2011, of $55.74 +78%
Silver Wheaton Corp (SLW)
Suggested on February 26th, 2009, at: $6.74
High on April 8th, 2011, of $47.60 +606%
Potash Corp of Saskatchewan (POT)
Suggested on March 4th, 2009, at: $24.88
High on February 14th, 2011, of $63.97 +157%
GoldCorp Inc (GG)
Suggested on March 11th, 2009, at: $28.05
High on April 28th, 2011, of $56.20 +100%
Royal Gold Inc (RGLD)
Suggested on March 18th, 2009, at: $42.21
High on April 28th, 2011, of $62.01 +47%
Eldorado Gold Corp (EGO)
Suggested on April 1st, 2009, at: $9.14
High on September 15th, 2010, of $20.23 +121%
Zhongpin Inc (HOGS)
Suggested on April 1st, 2009, at: $9.16
High on November 5th, 2010, of $25 +173%
Yamana Gold Inc (AUY)
Suggested on April 8th, 2009, at: $8.17
High on December 2nd, 2009, of $14:37 +76%
Ivanhoe Mines Ltd (IVN)
Suggested on April 15th, 2009, at: $5.84
High on December 7th, 2010, of $30.03 +414%
Hecla Mining Co (HL)
Suggested on April 30th, 2009, at: $2.47
High on January 3rd, 2011, of $11.56 +368%
First Majestic Silver Corp (TSX: FR)
Suggested on June 2nd, 2009, at: $2.72
High on April 6th, 2011, of $25.79 +847%
Endeavour Silver Corp (EXK)
Suggested on June 17th, 2009, at: $1.66
High on April 8th, 2011, of $12.75 +668%
Entrée Gold Inc (EGI)
Suggested on July 9th, 2009, at: $1.39
High on January 3rd, 2011, of $3.52 +153%
Capital Gold Corp (CGC)
Suggested on August 5th, 2009, at: $2.48
High on April 8th, 2011, of $6.57 +165%
DRDGOLD Ltd. (DROOY)
Suggested on October 18th, 2009, at: $7.20
High on January 15th, 2010, of $7.90 +10%
AgFeed Industries, Inc. (FEED)
Suggested on November 3rd, 2009, at: $4.60
High on January 7th, 2010, of $5.69 +24%
China Sun Group High-Tech Co. (CSGH)
Suggested on December 14th, 2009, at: $1.61
High on January 8th, 2010, of $2.35 +44%
NGAS Resources Inc. (NGAS)
Suggested on February 11th, 2010, at: $1.38
High in 2010, of $2.14 +55%
Revett Minerals Inc. (RVM)
Suggested on March 22nd, 2010, at: $1.9975
High on April 6th, 2011, of $6.32 +216%
Coeur d'Alene Mines Corporation (CDE)
Suggested on May 3rd, 2010, at: $17.92
High on April 6th, 2011, of $37.59 +110%
Pyramid Oil Company (PDO)
Suggested on June 15th, 2010, at: $4.39
High on February 24th, 2011, of $9.40 +114%
Canadian Zinc Corp (TSX: CZN)
Suggested on July 28th, 2010, at: $0.37
High on February 22nd, 2011, of $1.56 +322%
U.S. Silver Corporation (TSX Venture: USA)
Suggested on September 20th, 2010, at: $0.28
High on November 9th, 2010, of $0.83 +196%
Garibaldi Resources Corp (TSX Venture: GGI)
Suggested on December 28th, 2010, at: $0.295
High on February 23rd, 2011, of $0.56 +90%
PC Gold (TSX: PKL)
Suggested on March 7th, 2011, at: $0.83
High on March 7th, 2011, of $1.16 +40%
Nautilus Minerals Inc. (TSX: NUS)
Suggested on April 13th, 2011, at: $2.59
High on April 14th, 2011, of $3.51 +36%
NIA's President owns 183,000 shares of GGI, 3,500 shares of CDE, 10,000 shares of RVM, 20,000 shares of CSGH, 7,400 shares of DROOY, 36,500 shares of EGI, 5,950 shares of EXK, 10,000 shares of HL, 2,700 shares of IVN, 2,300 shares of AUY, and 600 shares of NEM, and could sell any of these shares at any time. The exact gains above may have been difficult or impossible to achieve. Past performance is no indication of future returns.
Our Legal Disclaimer: http://inflation.us/legaldisclaimer.html
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