HDG is a graet Buy !
As all can see, I have given a very conservative price target for High Desert.
Based on present HDG assets; I have given a price target of 35 cents, this is made up as follows.
High Desert has $11.5 million cash in the bank, I have marked this up 8% for financing charges, as this cost would have to be paid, if any other company had to go out and raise cash.
Therefore $11.5 mil is worth approximately $12.5 million.
I have given a value of $2 million for a Toronto listing, this is a very cheap asset value for a major TSE listing.
Total value = $14.5 million.
With 40 million shares out this is equal to 36 cents per share.
I have marked down the properties to zero. However if you check the companies web site it is clearly obvious that HDG properties have great potential.
HDG has very smart management and Sprott is a major shareholder, this has to be worth a few more million. However I have not shown any value for these soft assets in my calculations.
Surely it can be seen that I am not excessively pumping HDG.
Clearly HDG is a very undervalued and a low risk opportunity.
HDG is a great buy.