This morning I received another call from Benchmark Advisory, following up on the call I got Monday. I spoke to Bill James again. He told me that with the release of the URHG production figures he could now advise buying more shares. (Up to now he couldn't do it because the company had not released any hard numbers.He told me he thought this would happen a month ago, but it hadn't, so he was not able to recommend buying at that time).
He said that using the 25 ounce figure in the press release, a back-of-the-envelope calculation gives URHG a conservative current price-per-share value of at least 10 cents. Since the price today was 4 cents, he says a window of opportunity exists right now to get a good price before the word spreads about URHG. He told me that on Friday he expected the news to be on smallcapnetwork.com which should reach many brokers, investors, and day traders who are unlikely to have seen the PR on the current news outlets such as the OTC site.
He said that URHG has been very conservative about their projections, but that in his opinion the effect of this PR would be to bring the price to somewhere between 10 and 20 cents (assuming more developments or other news continues to follow). He thought it was significant that URHG hired the two named guys to run the mine because of their experience.
As I've stated before, Benchmark was hired by URHG to advise on PR, so take this with a grain of salt. However, what I've recounted above does seem within the realm of possibility; and if Benchmark is calling its clients and recommending a buy, I assume that in itself would lead to some buying and a rise in the pps.
- TTH
