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Levon Resources Ltd. (TSX: T.LVN, Stock Forum) (26 cents) – www.levon.com
Shares Outstanding: 200 Million
Net Cash: Approx. $40 Million (20 cents per share)
One of the world’s largest undeveloped (but low grade) silver projects
- currently valued by the market at $12M
Updated resource pending (from 13,000m drill program)
Location: Mexico
Back in May I introduced Levon to Ticker Trax subscribers at 22 cents. Thanks to an overly aggressive U.S. stock promoter named Jonathan Lebed, LVN ran over 45 cents and produced a six week gain in excess of 100% for TTrax subscribers.
Lebed pushed hard on Levon heading into July and left many who followed his “advice” sitting on big short term losses. He used comments like - "about to explode" and "unless you want to make an absolute fortune". I question why the SEC continues to allow this nonsense but you can see how the promotion evolved here:
https://newsletter.hotstocked.com/stocks/view/LVNVF-Levon-Resources-Ltd.
Here is an example of just how ridiculous this got on July 8th – as his followers were lead to slaughter like sheep. Note my highlights in yellow which reflect the highly questionable tactics used.
I doubt that LVN management had anything to do with this (or at least I hope they didn't) but it still looked bad.
While I am not a fan of LVN's share structure and their project is low grade, they are trading near cash value and do own a very large resource. This is a scenario where a person is speculating on the large bank account while hoping for a recovery in junior resource stocks or more specifically, the price of silver.
The market is viewing the entire district as uneconomic - which it may be at current commodity prices. However April 30th LVN announced higher grade drill intersections near the center (heart) of the system.
At this time I see NO reason investors would want to over-pay for this speculation as the mid-twenties has very good liquidity.
LVN provides very strong leverage to silver and zinc prices - that can either be a good thing or a bad thing. It depends entirely upon your outlook for these commodities.
For proper due diligence, review the August corporate presentation:
https://www.levon.com/i/pdf/presentation.pdf
** TWITTER NOTE: I maintain a twitter page at - twitter.com/tsxalerts
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Disclosure: Danny Deadlock owns 75,000 LVN purchased in the open market
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