April 4, 2006
SpeculatingStocks.com Stock Pick: U.S. Gold Corp. (UXG)
Stock Price: $9.95 (long-term strong buy)
U.S. Gold Corporation is engaged in the exploration for, development of, and the production and sale of gold and silver, as well as other base metals, in the western United States and Mexico.
We noticed UXG last week while researching NVPGF. U.S. Gold is run by gold tycoon Rob McEwen who transformed Goldcorp from a $50 million investment firm into a $5.5 billion company. He has grown UXG from an $8 million market cap to $331 million. There is no reason for this growth to stop as gold continues to go up in price.
It is clear that McEwen will do whatever it takes to lock up the number one gold producing area in the U.S., the Carlin Trend. U.S. Gold should be close to closing on at least one of its four unsolicted bids for Nevada mines in Cortez Trend right next to the Carlin Trend.
Last July, UXG was a forty cent stock. UXG has since built one of the most amazing one-year charts out there. McEwen plans to grow the company even more aggressively.
SpeculatingStocks.com Target Price: We expect UXG to reach $20.00 within the next 3 - 6 months.