March 30, 2006
SpeculatingStocks.com Stock Pick: Nevada Pacific Gold Ltd. (NVPGF)
Stock Price: $1.26 (short-term strong buy)
Nevada Pacific Gold Ltd. is a Vancouver gold company exploring in the Cortez Trend Area of Nevada. The Cortez Trend is next to the Carlin Trend, the largest gold producing area in the United States.
The president of U.S. Gold (USGL.OB) Rob McEwen launched four unsolicited bids at the beginning of this week. Nevada Pacific Gold was one of those companies. McEwen is offering stock in USGL. All target companies rose on the news, but no one is sure of the extent. The offer was described as "unsolicited, shareholder-friendly offers."
McEwen left Goldcorp to form U.S. Gold. He lead Goldcorp from a $50 million market cap to $5.5 billion. He knows the potential of the Cortez Trend and will pay high premiums to consolidate the area into his company, U.S. Gold.
We expect NVPGF to be bought out by the bidder at a premium to the current NVPGF price of $1.26.
SpeculatingStocks.com Target Price: We expect NVPGF to be bought out at a premium to its current $1.26 price, possibly around $1.80.