Wolverine Resources Corp (WOLV)

[jaybird249]

WOLV: Bargain of 2006 for LOGICAL investors:

The stock market is never perfectly efficient or logical. At times, equity values fall to a fraction of the true worth of an enterprise. On October 2, 2002, Sonus Networks traded for 18 cents. It subsequently rose over $10.

WOLV is another example of a stock that is trading at a FRACTION of its intrinsic value for no logical reason. WOLV is trading at a Price/Sales ratio of 0.14 compared to the Indusry average of 2:
http://finance.yahoo.com/q/co?s=WOLV.OB

As I have said in previous posts, this valuation reflects a perfect storm of extraneous factors: NASDAQ delisting and a brutal small cap bear market. There is NO justification for WOLV to be trading at such depressed levels, WOLV's financial and operating performance are the best in years:

Financial: WOLV completed a $1 million financing in April. After this financing, WOLV has POSITIVE WORKING CAPITAL (current assets of $7.8 MM and liabilities of $7.6 MM) and only $1 million in long term debt. This balance sheet is better than 90% of OTC companies!!

Operating:
1) The third quarter 2006 financials show WOLV is on the road to sustained cash flow and profitability. Costs were reduced by 27%, and net loss was reduced by 40% to $486,000. If depreciation and amortization are added back, WOLV was essentially cash flow breakeven for the entire quarter.

2) IN THE MAY CONFERENCE CALL THE WOLV CEO STATED WOLV'S SALES PIPELINE IS THE STRONGEST IN HISTORY. Consequently, the trend to improved cah flow and GAAP profitability will continue.

Conclusion: WOLV is a rare opprotunity: A stock trading at huge discounts to the sector. There is no company specific reason for this huge discount. WOLV has a aound balance sheet, positive working capital, minimal debt, is essentially cash flow breakeven moving to cash flow positive, and has the strongest sales pipeline in the company's history.

When assessing WOLV as a potential investment focus on WOLV's fundemantals, not the BASHER TRASH.

WOLV IS A BUY AND WILL REWARD PATIENT INVESTORS.