Timberline Resources Corp (TLRS)

[ThSeeker]

Gold Investment Newsletter comments:


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Our Picks Are Starting to POP



Good Morning,





Big Movers



Wow, what a day we had yesterday!! Everyone saw what Southern Silver (SSV/SSVFF) did as it exploded over 15% on the day on almost 10 times normal volume. The key 50 cent level was completely and literally skipped over as the lowest it traded was 51 cents, closing right on its highs of 55 cents. Usually, this means that there will be more follow through today so I wouldn't be surprised to see the low .60's or even its first test of old highs at 66 cents. Maybe the share price will close the gap on the chart today at 50 cents in the near term and if it does, readers should be all over it there.


Gold stocks decisively broke out today and also closed at their highs (see GDXJ). Sunday night I made a video for premium members highlighting 3 small juniors, one gold and two uranium plays flying under the radar. The gold junior exploded 45% higher on the day yesterday trading to new 52 week highs on huge volume! I sense the appetite for gold and silver mining stocks starting to rise subtly and soon investors will be chasing gold stocks in a panic, clamoring not to be left behind.


The two uranium juniors were up 9% and 24% yesterday, respectively. So, to kick off our week, our short focus list of 4 companies were up, 9, 15, 24, and 45%! Many investors would kill for those returns annually much less in one session. One of our free picks was up 9% yesterday as well but on low volume. That is Timberline Resources (TLRS/TBR.V) which closed at 34 cents on TLRS (it is a US company so I reference the US ticker prices...when it's a Canadian junior, I speak in CDN price quotes).


Timberline



Timberline is going to see an explosion of it's own soon. I say this is the cheapest junior gold play out there not only because of the low value of gold resources in the ground versus market cap ($4 an ounce). Mainly I say so because of the huge disparity in share performance versus the sector over the past 12 months. If you look at the weekly chart of GDXJ, a proxy for juniors, it is trading about 30% above its 200 week moving average. this is common across the sector give or take.


Timberline on the other hand is trading nowhere near its 200 week moving average! If it were moving just on par with the rest of the gold juniors at a 30% premium to the 200 WMA, it would be over $1.30 per share on TLRS....$1.70 on TBR.V! There is absolutely nothing in TLRS's assets or capital structure, etc to merit such an enormous disparity in valuation. This means that there is a high possibility that we will see a value reset at some point in the future in the Timberline share price. Maybe it will be after they pay gunpoint the $1MM option payment they owe, maybe it will be when they start drilling Talapoosa again soon, or maybe it happens on no news because someone sees the opportunity and buys up a ton of stock.


I don't know which catalyst will do it but I'm confident that the huge gap in value will at least be cut in half this year. That would mean a doubling of the share price minimally not including any normal rise in the sector. If TLRS catches all the way up to GDXJ and its peers, it would quadruple. If this was a 10 or even 30% disparity it wouldn't be that big of a deal but this one is yuuuuuuge and it will not last like this. Long term investors looking for value in the junior gold space should be buyers of TLRS under 40-45 cents and TBR.V to 55-60 cents.