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GraniteShares Gold Trust BAR

The investment seeks to reflect generally the performance of the price of gold. The Shares are intended to constitute a simple and costeffective means of making an investment similar to an investment in gold.


ARCA:BAR - Post by User

Post by BCdudeon May 26, 2021 1:06am
158 Views
Post# 33265888

Pros and Cons

Pros and ConsI fully agree with Alleyesonme that UGE remains an excellent long-term play. Even if they don't add another dollar to their backlog, based on market prices they would be able to sell their curernt backlog at around $80 million cash NET once up and running (about $2.50/share value). And that doesn't include any of the projects anounced in Q1. Of course, based on long-term recurring revenues the backlog is much more valuable than that.

Having said all this, the concerns that have popped up recently with the accounting challenges (hopefully behind them now), the delay in moving projects through the pipeline (thanks covid!), and the general frothiness of the marekts, makes me think we could see sub-$1.00 prices at some point over the coming months. Of course, if they keep adding projects to the backlog and we see existing projects begin to move through the pipeline, it might not get there.

I sold 20% of my shares at $1.65 (the ones I'd bought for $2.00+) but plan to hang on to the other 80% long term. If the stock sinks below $1.00 I'd consider dipping my toes in again.


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