High River Gold Mines Ltd HRIVF

RE: stock is performing like a dog

[Critical_Mass]

You're right it would certainly be nice to get some analyst coverage.
That will come hopefully soon when we get our auditied results out and .  HRG is a gaping omission in the tier 2 Gold universe right now imo. 

This isn't some junior producer.  Production, revenue and cash flow are here now and with decent growth prospects from our development properties and also further drilling at existing mines to increase reserves which have been on hold for years.

To put this in perspective the next lowest valued tiered 2 producer in RBC's gold universe has a 2010 cash flow estimate of 10.9 and based on q4 preliminary numbers we are at 3.5.  This one is also Russian based.  Pick another ratio, they all tell a similar story.

So yes HRG has sat there and not done much in awhile.  I have personally found it very annoying. I didn't think this would take this long. However the market sooner or later will eventually reflect the fundementals.  And these we know  well from many useful posts on this board.

So yes as you say this stock has no analyst coverage and a nasty majority shareholder. However this is exactly why this is so low and allowed this to be still so cheap and a screaming buy right now.  If this wasn't the case we probably would be 2-3 dollars right no in line with peers.  

If  you like gold, where would you rather be?
 When we buy this we are buying not just  a stock but a company, and even though it has sat there for awhile the underlying business is in much improved shape.  How far down is a stock trading at 3.5 cash flow really going to go.  They could buy back every share out there with this flow in 3.5 years.  And our minority position in just over 1 with just the flow from this if they ever decided to do a buyback.
So yeah there is some risk but we get the same asset 3-4 times cheaper then comparable companies and this asset is printing cash now.  It isn't some far away thing to be realized.  No risk no reward.

I'm investing not trading here. And this investment is doing very well as can be seen by the fundementals.  The stock will just follow later.  I'm in it for however long this takes.

Although some would like to have us fooled and take our shares on the cheap, this isn't going to happen with the vast majority of them.  The longer we wait and the more the market goes up, the the greater the outlier this stock is, and the more likely Severstal or someone else will move in to try to take some of the value sitting on the table with HRG at 73c.  

  And we know Severstal has not lost interest as well in gold assets from their pursit of CRU.  If they wait too long they will miss out as eventually.  It just remains to be seen how long it will take.  Severstal cannot take any money from this without paying us either.