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I was very upset with USSIF earlier this year due to much of what you said and particularly late reporting. Much has changed since then They stopped reporting late and are now holding conference calls which they weren't doing before. They said fall for the RS and yearend for the AMEX. There is nothing yet that says that won't happen. Lets see what happens Monday. I see management as being more responsive than they were. You can get information from Heather in IR if you don't get it from management. After the RS the stock must trade over $2 for twenty days to join the AMEX so yearend is still very possible. As far as the hedge it depends on when they closed it out. If they closed it out when silver was $30 at quarter end that would be a good thing. Only 125,000 ounces remained as of September 30. They likely had about a $1.5M loss in quarter 3 which I included in my estimates. We will know so much more on Monday.
JMHO, but the AMEX application takes quite a bit of time. I believe the company's intention has always been to announce the RS as soon as the AMEX listing was approved. Monday would be a great time to do that. Announce earnings, announce RS and announce AMEX listing in a few weeks after trading over $2. Earnings might be a little disappointing due to silver closing at $30 on September 30. All silver not settled at quarter end gets priced at the price on the last day of the quarter. I expect production of 650,000 ounces and revenues of about $24M. Pretax profits should be $6M-$7. This is down from 2nd quarter revenue and profit. Compared to last year it will show big gains so it depends on what you are comparing it to. The drop in silver won't affect cash on hand which should be about $35M. The results are certainly not disappointing. Its just that if you expect results to match quarter 2 it won't happen. JMHO
U.S. - I can't do a private reply because I do not have a membership. I have been investing in stocks for about 50 years. I do have some background in accounting. I switched to mining stocks about 7 years ago because you can spot earnings breakouts before the market knows about it. Revenues and earnings are easy to predict if you don't get big production surprises. When you get production increases and price increases at the same time earnings gains can be dramatic. We all know it is just a matter of time until our financial system collapses. I want to be in gold and silver when that happens. Gold and silver will have value no matter what currency takes over. I own some physical silver, but am mostly invested in USSIF. I want a profitable U.S. silver stock showing production gains, gains in reserves, no hedging, no debt and lots of cash. I want United States Silver.
The big item that will affect 2011 will be what USSIF does with it's remaining $11M in taxloss credits. Last year they pulled a fast one on me. They took several million in taxloss credits and applied it to 2009 earnings instead of 2010 earnings. I don't know why they did that. USSIF should end the year with close to $30M in pretax profits. If they apply the remaining taxloss credits to 2011 then earnings should be right around .10 per share or .50 after the split. We can forget about using 300M shares after this next report since the reverse split should happen before year end results are released. USSIF should end the year with $40M in cash on hand. Third quarter revenues will be hurt because silver dropped to $30 at quarter end. All silver not settled will be valued at $30. That is why I expect revenues of $24M and pretax profits of $6M. The good news is that the silver that was valued at $30 is now being settled at $34. This will help 4th quarter results. If silver can average and finish quarter 4 at $35 then 4th quarter results will be much better. I would expect 4th quarter revenues of $28M and pretax profits of $9M.
Many reverse splits are done because companies are in trouble and are trying to save their exchange listings. With USSIF it is just the opposite. Keep in mind that once a RS split is announced and an AMEX listing gained USSIF will no longer be a penny stock or a pink sheet stock. Thousands of new American investors will find out about USSIF. Current shareholders will be able to buy on margin(Ameritrade margin requirement is $2). Funds that can't buy penny stocks will be able to buy USSIF. Many individuals that won't touch a penny stock or a pink sheet stock will suddenly be interested. Most current investors know about the RS and aren't going to freak out and start selling when the announcement is made. This is not your typical reverse split. It is being done from strength, not weakness. After the RS USSIF will have 68M fully diluted shares and will have nine month earnings of about .20 per share aftertaxes. Full year earnings, including tax loss benefits should come in around $28M or around .42 per share fully diluted. JMHO
I've been away for nine days and just got back. I was glad to see that USSIF has confirmed guidance of 2.4M-2.6M ounces of silver for 2011. USSIF produced 1.2M ounces of silver in the first half of the year. That means guidance is 1.2M ounces-1.4M ounces for the second half of the year. I am looking for $24M in revenues and $6M in pretax profits on November 14. I expect cash on hand of $35M as of September 30 and about $41M as of December 31. I am expecting guidance of 2.8M-3.0M ounces of silver for 2012 as we should have some production from Couer in the last half of next year.
Something is being overlooked. One thing that is going on at U.S. Silver the last few months has been overlooked by USSIF investors. USSIF has been conducting surface drilling 24 hours per day, 7 days a week for the last several months. They expect to complete that drilling soon and drilling results should be released. This could be a major event for USSIF that could lead to increased reserves and lower cost mining.
The stock must trade above $2 per share for 20 trading days before it can qualify for an AMEX listing. By the ways the new Sprott figures were just posted on Yahoo. Sprott now owns over 44M shares or over 14% of USSIF. Third quarter earnings should be out on November 15. I expect revenues of $25M and pretax profits of about $6M-$7M based on 650,000 ounces of silver sold. Afyer tax profits should be about $4.5M.
Congratulations to USA.TO on it's graduation to the Toronto TSX exchange effective Monday. Next comes the reverse split announcement and then the AMEX announcement.
It looks like Sprott bought 676,000 shares today. That brings his total holdings to about 41M shares or 14% of the company. JMHO
Sprott has run out of silver this weekend. See KingWorldNews for the article. They won't take any more orders until they actually have some silver. They are expecting a shipment tomorrow and hope to be selling silver again. Sprott now owns over 40M shares of USSIF. They are getting close to the 14% total ownership mark. Some don't understand that Sprott is the likely only inside buyer. They are the only one that owns over 10% of the company and are the only one that would show up on the insider buy list each day. If someone thinks it could be somebody else then they should offer another possibility. There are no other possibilities since no one else owns over 10% of the company except Sprott. Conus Partners owns 20.2M shares and Heartland owns 19.7M shares. More than 10M shares have been reported purchased since the last earnings report as insider buys. Sprott owned 30M shares before these purchases were reported. Inside purchases do not show up on the report until someone owns over 10% of the company.
How does U.S. Silver do with silver at $33? With production of 650,000 ounces of silver per quarter USSIF would have revenues of about $24M per quarter. Expenses would be about $18M per quarter. Since USSIF pays no taxes they would have $6M in cash flow per quarter with $33 silver. One thing that came out in the last CC is that USSIF has a profit sharing plan with it's employees. That plan cost over $1M in expenses during quarter 2. Along with the hedge USSIF lost about $2.5M in profits due to higher prices. That is part of the reason for the higher cost of production this year. If prices stay down then expenses are going to be much lower. Of course, the hedge is going away in three months anyway so that expense will disappear. I don't think the hedge is included in production costs, but I think the profit sharing is. The profit sharing plan is adding about $1.50 per ounce to production costs. Most of the silver settled in quarter 3 was settled near $40. Revenues should be quite a bit higher than $24M in quarter 3. If silver is $33 next Friday I would look for revenues of about $27M and profits of about $7M-$8M in quarter 3. The cash is allready in the bank so I still look for cash on hand of $35M as of September 30. I now expect cash on hand on December 31 to be about $40M.
USA.V currently has a bid of 125,000 shares @ .59. It looks like Sprott is back. I guess he just can't resist buying more at these levels. The Canadian dollar has dropped to .97 so USSIF.PK is now trading at a 3% discount compared to USA. For a long time the Canadian dollar has been trading at around $1.03 and USSIF was at a premium. The discount is good if you are looking to buy. It is bad if you are looking to sell.
There is no doubt that a global collapse is imminent. The only question is what, if anything, will have any value after the collapse? My guess is that gold and silver will be one of the few places where you can still invest. 2008-2009 was a picnic compared to what is about to happen. We will either have severe deflation or runaway inflation. I'm still not sure which yet, but either way it won't be pretty. If we have deflation miner's costs will come down. If we have runaway inflation then silver prices will soar. USSIF now has the cash to continue drilling and full production even with much lower silver prices. USSIF probably has about $35M in cash on hand right now. With 650,000 ounces of silver production USSIF can break even with $18 silver. There is plenty of cash on hand to move ahead with the Coeur developement regardless of the silver price. Fasten your seatbelts folks. We are about to go on a ride not seen since 1929. JMHO
I asked Chris on the conference call about the timing of the reverse split. He said they did not want to wait until the AMEX listing to do the RS. I think they want to do it as soon as possible. I think they are just waiting on the regulatory approval. I expect them to do it as soon as they can. USS will need to trade above $2 for 20 trading days before the AMEX listing kicks in. I expect the RS in October or November and the AMEX in November or December. I believe that Sprott is well aware of this timetable. I believe that Sprott knew that they had X number of days to accumulate X number of shares before the announcements. They wanted to do it orderly and slowly so they would not run up the price of the stock. The calling of the warrants gave them millions of new shares coming on the market that they could scoop up without impacting the market. The key is how many is X. So far Sprott has purchased about 9M shares since the last quarterly report. Is that X? If 9M is the number of shares Sprott wanted to accumulate before the announcements then they are through buying. The first announcement concerning the Toronto listing could come at any time now. --- Does anybody know how you get more than 3 posts per day on InvestorsHub?
I totally agree that management and the big boys have not wanted this stock over .70. We must ask why the RS and why the Toronto upgrade and AMEX listing? This takes money and a lot of time to go through the application processes. Is this being done so that the stock can be held in the .70 area? What will happen with the stock at $5 and listed on the AMEX? The stock will be marginable and many new institutions will be able to buy the stock. Volume will soar. If someone wants to takeover USSIF at a cheap price would they be in favor of a RS and AMEX listing? An AMEX listing means lots of new competitors for USSIF shares. My take is that someone wants USSIF in the .70 range until they finish buying all they want at that price. Once that happens they are going to let it run. I hope that Sprott has finished it's buying because there would be no more reason to hold it back. Are we days away from a Toronto listing? Are we days or a few weeks away from the RS? Are we weeks or a few months away from an AMEX listing. Why has Sprott stopped buying? Are they finished? Was a phone call made recently saying OK! I'm through buying, you can make the announcements now.
Conus Partners & Heartland? Does anybody know much about Conus Partners and Heartland? These two funds own 40M shares of USSIF or 13% of the company. That is slightly more than the 39M shares now owned by Sprott. These three funds own 79M shares of USSIF or 26% of the company. It seems like these three funds will be criticle in any buyout scenario. Are these three in agreement? If they all go in together they can dictate a buyout scenario. If they go in opposite directions a bidding war becomes possible. Sprott has stopped buying so far this week after a large purchase Friday. Does this mean that Sprott is through buying? It certainly is getting interesting and Sprott's intentions should dictate the direction USSIF will go in. For those concerned about the R/S I believe that there are some regulatory issues in Canada that must be worked out before a RS can happen. This is JMHO, but I think this whole process has been worked out in advance. I believe that Sprott pushed for the RS and the AMEX listing. I also believe that Sprott pushed for the early calling of the warrants. USSIF did not need that extra cash right now. IMHO Sprott wanted the warrants called so that he could buy a large number of shares without running up the price. Knowing there was a time lag Sprott has had time to slowly accululate shares without driving the price up. Sprott will be aware of the timing of the announcements and will complete its purchases before the announcements. It doesn't make sense to me that Sprott would push for a RS and AMEX listing if the goal was to have USSIF taken out on the cheap. Why bother with a RS and AMEX listing? If the plan is to sell out cheap then you lie low and let the share price languish. If you push for a RS and AMEX listing then your goal is a lot more visibility and a higher stock price.
I use Ameritrade. Their rewquirement is $2.
Drill results are out. I'm not good at analysing these. Can anybody give us a good analysis of the results? One point I wanted to bring up regarding the reverse split is the fact that USSIF will suddenly be marginable. If the stock is near it's current level I will likely buy quite a bit more on margin. I'm not sure how many people have margin accounts, but I expect a sudden burst of buying as USSIF becomes marginable.
Sprott now owns 13%. With yesterday's 500,000 share purchase it appears that Sprott now owns at least 38M shares of USSIF or 13% of the company. This does not include any shares that might have been purchased on the U.S. exchange.
United States Silver(USSIF.PK) has announced a 1/5 reverse split by yearend to gain an AMEX admission. The stock is .67. This is a highly profitable U.S. silver miner. They just reported record revenues of $30.8M and profits of $9.4M for quarter 2. This is one of the most undervalued stocks I have ever seen.
USSIF looks like a 10 bagger to me. Sprott has bought 7M shares in the last few weeks and now owns 37M shares or 12% of the company. USSIF(United States Silver) recently reported record revenue of $30.8m and $9.4M in profits for quarter 2. The stock is .70. They have $35M in cash and no debt. They plan a 1/5 reverse split and an AMEX listing by yearend. They have a new mine coming on 2012.
Sprott is buying millions of shares of USSIF. They have purchased over 7M shares in the last few weeks and now own 37M shares or 12% of the company. USSIF(United States Silver) recently reported record revenue of $30.8M and profits of $9.4M for quarter 2. The stock is .70. They have no debt and $35M in cash on hand. USSIF plans a reverse split and AMEX listing by yearend.
USSIF - Sprott buying millions of shares. Sprott has bought over 7M shares of USSIF(United States Silver) in the last few weeks and now owns 37M shares or 12% of the company. The stock sells for .70. They just reported record revenues of $30.8M and record profitts of $9.4M for quarter 2. USSIF plans a 1/5 reverse split and a move to the AMEX by yearend. This stock sells for %X likely 2012 earnings. JMHO
There is a bid in there now for 105,000 shares at @.69 in Canada. Only 6,500 at the ask of .70. It looks like Sprott has lowered his bid to .69 dues to the drop in the market. I still think he wants all he can get at the bid. The only suggestion I have on this big constant seller is a warrant holder, Conus or Heartland. Conus and Heartland each own 20M shares. There were only 6.2M warrants that did not belong to Sprott. Sprott has allready bought well over 7M shares in the last three weeks so any warrant holder that wanted out has had their opportunity to sell by now.
Dr. Bill: Have you tried to call Heather Bailey-Foster at 208 752-1116 Ext221? I have found her pretty willing to talk in the past. Management answers sometimes and sometimes they don't. If you call Heather you will probably get right on the phone with her. This is JMHO, but I think Sprott has been calling the shots at USSIF for awhile. I believe they are responsible for the TSX listing, reverse split and AMEX listing. I believe they are responsible for the early calling of the warrants. My opinion is that they informed USSIF that they planned to significantly increase their position in USSIF. They talked management into the RS and AMEX listing. They got management to keep everything on the down low for as long as possible so they could dramatically increase their position at low prices. Once the boat is fully loaded the RS and AMEX listing will happen and then watch out. Why would management cooperate on this low key approach? If Sprott is going to own a huge chunk of USSIF then who gets to decide if management keeps it's job? If you were in management would you fight them or cooperate? It is still morning in Wallace. Give Heather a call.
Someone is dumping bigtime in Canada. Big blocks are going through at the bid of .70. We have allready traded 350,000 shares and there is still a 100,000 share ask at .71. It looks like Sprott is sitting tight with a .70 bid and taking everything this seller wants to sell at .70. I wonder who this is that is dumping? I hope they run out of shares to sell soon.
Sprott purchased 350,000 shares yesterday. The total purchases since earnings day are now close to 7M shares plus 5.7M warrants exercised. Sprott now owns 37M shares or 12% of USSIF. His investment is worth about $26M. We can only speculate about his intent to use USSIF to buy physical silver in the future. If he keeps increasing his position in USSIF it is hard to believe that he will do anything that will be harmful to the USSIF stock price. He has too much invested himself. Keep in mind that two institutions combined own 40M shares of USSIF stock or 13% of the company. Unless they align with Sprott, Sprott is nowhere near controlling USSIF yet. This is going to be very interesting.
If you sell shares back and forth between accounts it would show up as a purchase and a sale and would net out to zero0. To have insider buying the buyer must buy without selling. Whoever is selling doesn't show up because they don't own 10%.
Another wave of buying just came in. During the first 10 minutes 300,000 shares traded and then there was little volume for 2 hours. Now another 300,000 shares just traded in the last few minutes. We have 700,000 shares traded so far on USA.V today. Sprott seems to be buying in waves. The big question is who is selling all these shares to Sprott? Someone is selling large chunks on a daily basis and the price isn't budging. Conus Partners has 20.2M shares and Heartland has 19.7M shares. Are one of them selling to Sprott? This is too many shares being sold to be just the warrant holders. 5.7M of the warrants belonged to Sprott. It looks like someone wants out and Sprott is accomodating them.
Sprott is loading the boat. Over 300,000 shares traded in Canada in the first 10 minutes. It looks like he wants everything he can get his hands on in the .70 area. It doesn't pay to watch the U.S. market right now. Keep an eye on USA.V. That is where Sprott is doing his buying.
Great post, Dr. Bill. The big question now is why is Sprott buying so heavily? Does he want to gain control of the company and be the main person in the negotiations to sell? Does he plan to be involved in the Sunshine Mine and this is his way to take a big stake? Does he want USSIF's physical silver for his new physical silver trust? Something big is going on. I find it odd that USA traded over 1M shares by 1:45 today and hasn't traded in the last hour and a half. Tonight's insider buying report should be very interesting.
You're not a basher? LOL You owned the stock and almost doubled your money and now you suddenly question their integrety? Any company could be hiding things if they so desire, even Enron. USSIF was .53 a few days before earnings and is now .72. Thats a 35% increase in a few weeks. It's pretty obvious that you want back in at a cheaper price and are bashing. The old "maybe the company is crooked" routine? After the split the fully diluted share count will be 68M, lower than almost any silver miner so who cares what the count is now? The stock will be on the AMEX soon so who cares about pink sheet stocks? This is all old news and soon will not apply to USSIF. ..... Volume in Canada is around 500,000 so far. It looks like Sprott might be buying again today. 600,000 shares is an average day in Canada without Sprott.
Weird trading today. USA is currently .72 and USSIF is currently .70. It's too early to tell if Sprott is doing anything today. 200,000 shares have been traded in Canada so far.
768,500 shares purchased by Sprott on Friday. It looks like the attempt to gain control of the company is gaining steam. At least 6 3M shares were purchased since the earnings announcement plus the 5.7M warrants that Sprott was holding. Sprott has increased his ownership of USSIF by at least 12M shares in the last three weeks and now owns at least 37M shares. A sprott fund manager was on BNN the other day saying USSIF was not a good buy. Interesting that he disagrees with his boss. Could he be talking it down while his boss is attempting to take over the company?
Please see my recent posts on USSIF-yahoo concerning the dramatic influence $43 will have on USSIF silver profits and cash flow. The numbers are mindboggling. USSIF is currently increasing cash at the rate of $4M per month and that would increase to $6M per month in January if silver is $50 due to the ending of the hedge. IMHO USSIF currently has $33M in cash and will have $50M by yearend.
Canadian volume going crazy today. Volume is 650,000 shares in the first 75 minutes. !m shares traded on both exchanges by 11:00AM. JMHO< but someone is trying to buy this company.
This is getting frustrating. I owned three other stocks this year that I sold to buy USSIF. All three are making new highs today and USSIF is 15% below it's high. The insider buying is a mixed blessing. Many shares are being taken off the market, but the stock is constantly being held back. I am convinced that once the insider buying is finished the move will be swift and dramatic. There will no longer be a reason to hold it back. I wish they would hurry and buy all they want quickly so we can get this show on the road. By the way, at $43 silver USSIF should have revenues of $33M in quarter 3 and earnings of $12M before taxes.
Volume switching to U.S. Exchange. Last week most of the volume in USSIF was traded on the Canadian exchange. Now the volume is switching over to the U.S. exchange. I wonder if that means anything? Is it somebody besides Sprott buying now? The insider buys we have been reading about are from the Canadian exchange. They don't include trades on the U.S. exchange. It is possible that Sprott has purchased more than the 5.5M shares reported on the Venture exchange. It will be interesting to see the next report on actual Sprott ownership.
There is an interesting post on Stockhouse-USA board by Canadian0308. He claims he wants to make a block purchase or a private placement and is having trouble getting management to respond to his EMails.