Here's the problem I have. Where, oh where, is it determined that USPR is low risk? I'm not saying USPR has gold or does not have gold. But there is a long history of gold stocks, or any specific industry, where the stock does not live up to the potential investors believe it has.
Remember, there are preferred shares already issued convertible into 125 million common shares based on the RTC deal that still hasn't happened. But the preferred shares are already issued. Who knows if USPR needs to raise additional funds that might cause more dilution. Yes, USPR claims some mining operations will create revenue in the short term, but does current management have a good track record of living up to their statements?
Plus, it's one thing to have the gold. But a stock needs to monetize it's asset into shareholder value.
In the case of USPR, that would be dependent on management, and so far, all we have from management is 8k's they issue, and then cancel, deals they announce that never materialize, and self imposed time deadlines that they consistently miss.
The reason why someone would sell a % of USPR and ride the remaining free shares is to diversify their investment portfolio. You see, every stock, including USPR, has inherent risk. The more one's portfolio is diversified, the better managed portfolio it becomes.
That's what real professional investment advisers will say. They rarely say ride the winners.
This post is my opinion and should not be used as investment advice.
