TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

In May U.S. Gold (USAU) went public after a rollback and takeover of DRAM Corporation. I wrote all about it. The rollback made a world of sense because for brokers to recommend a stock in the US, the price has to be above $4. So prior to the takeover, DRAM did a four-for-one rollback that took the shares from $1.22 on May 5th to $4.79 on May 8th, the next trading day.

Savvy investors took the share price up to $5.21 with the realization that a small chip company selling $20 million a year in chips to clear $1 million would be a lot bigger company and much better deal with a major gold and a large gold/copper project and $7 million in the bank added to DRAM.

Right after the takeover someone started shorting the hell out of the shares and ran the price down to a low of $2.55 in early June which would have been $.635 on the pre-merger shares and far lower than DRAM has been this year. So by adding $7 million in cash, an entire gold district in Nevada that has never been consolidated and a gold/copper project in Wyoming with 1.1 million ounces of gold along with 285 million ounces of copper and an NPV of $159 million, someone thought DRAM was worthless.

Don’t ever worry about finding some smart guy to follow around so that you can do everything he does and get rich. There aren’t that many of them around. Most of them are selling snake oil and aren’t really either that smart or that rich. Rather you should look around and see if you can figure out what the fools are doing because the world is filled with them. They want nothing more than to give their money to you. Figure out what the fools are doing and do the opposite and you will find real wealth.

You may have got the message by now. U.S. Gold just got really cheap. I always like buying cheap and selling dear.

Under the direction of the brilliant Dave Mathewson, the company drilled the first of six deep scout holes in 2016 at Keystone to determine structure. In early 2017 the exploration team completed a series of geophysical surveys that resulted in the company staking additional claims in Q2. Work is now in progress to identify drill targets and a major drill program is planned for Q4, 2017. The company has budgeted $1.7 million for exploration in 2017.

One day soon investors are going to realize that with retail sales and banking in a state of collapse, it might be nice to own a real asset with no corresponding liabilities. Gold fits the bill perfectly. When that happens gold shares are going to be in high demand. US investors are going to only have four companies with a US listing and US assets that brokers can actually recommend. U.S. Gold is one and at that time it’s going to get real popular. Funds cannot buy the other ten zillion gold juniors out there, the price is too low. But they can buy U.S. Gold.

When they make a major gold discovery at Keystone, that’s also going to help and I think it’s going to happen.

U.S. Gold is an advertiser. Do your own due diligence.

U.S. Gold
USAU $3.01 (Jun 26, 2017)
12.7 million shares
US Gold website