Winners Circle

[tagthatstock]

GROW-4.15+/-,,$5 is breakout,, mms hit the hod,, that is not a short or sell off,,I have profiled this company and have waited for it to firm up and bought today

consider this a pounding of the table for those wanting diversification in defensive areas of metals,currencies and emerging markets. youre not buying the fund,, youre buying the company behind the fund.


Reply to a message written by tagthatstock: (Posted on Thu March 11, 2004 10:02:43 AM)
sleepy creeper wild card
GROW U.S. Global Investors, Inc. (GROW) 4.04,, breakout is 5.0,, wiggles along the way
seems well diversified in the metals and may be a safer play than a standard gold stock. No I dont think its time to buy metals,, this would fall into the catagory of banks,, which are not far from a bounce point. So look for red entries and know ahead of time if you are interested in going long.

home page-http://www.us-global.com/corporate/about.asp
U.S. Global Investors, Inc. (Symbol: GROW), located in San Antonio, Texas, USA, is a registered investment adviser and management firm servicing retail and institutional investors. The company manages a comprehensive family of 12 no-load mutual funds, encompassing all major asset classes and markets including gold and natural resources, stocks, government money markets, tax-free bonds and emerging markets.
The company manages approximately $1.1 billion in mutual fund assets and has an established record of delivering self-directed investment solutions to a broad spectrum of companies, non-profit organizations and pension plans. As a public company, U.S. Global Investors' stock trades over the counter on the Nasdaq stock exchange (Symbol: GROW).
U.S. Global initially was formed in 1968 to manage a growth fund that evolved into the Gold Shares Fund1, the nation's first no-load precious metals fund. Since then, the company has grown, and our shareholders enjoy a widely diversified range of investments. In February 1994, we launched the China Region Opportunity Fund2, the first no-load fund dedicated to investing primarily in companies located in the China region. In October of 1994, we introduced the Bonnel Growth Fund3 - the first of three U.S. Global Accolade Funds designed for investors looking for dynamic growth opportunities in developed as well as emerging markets.
The company also has several subsidiaries including United Shareholder Services, Inc., the transfer agent for mutual fund shareholders; U.S. Global Brokerage, Inc., the funds' distributor; and A&B Mailers, which provides mailing services.
Entrepreneurial, Dynamic and Unique
These are the words that best describe our company, as well as our employees. We are sophisticated investment specialists seeking opportunities globally for our shareholders. Our performance-inspired fund management team not only has advanced academic credentials, but also the hands-on experience needed to guide them in making investment decisions.
SEPTEMBER 30, 2003 QUARTERLY REPORT
On November 10, 2003, there were 6,311,474 shares of Registrant's class A nonvoting common stock issued and 5,981,779 shares of Registrant's class A common stock issued and outstanding, no shares of Registrant's class B nonvoting common shares outstanding, and 1,496,800 shares of Registrant's class C common stock issued and outstanding.
Shareholders' Equity
Common stock (Class A) - $.05 par value; nonvoting; authorized, 7,000,000 shares; issued, 6,311,474 shares
Common stock (Class B) - $.05 par value; nonvoting; authorized, 2,250,000 shares; no shares issued
Common stock (Class C) - $.05 par value; voting; authorized, 1,750,000 shares; issued, 1,496,800shares
Additional paid-in-capital 10,821,020
Treasury stock, class A shares at cost; 334,756 and 361,948 shares at September 30, 2003, and June 30, 2003, respectively
per yahoo-
Shares Outstanding: 7.48M
Float: 5.60M


Total Assets $8,214,909
Total Liabilities 1,769,831
Ending Cash and Cash Equivalents 1,505,502

The Company has voluntarily waived or reduced its advisory fee and/or has agreed to pay expenses on several USGIF funds through June 30, 2004, or such later dateas the Company determines. The aggregate fees waived and expenses borne by the Company for the quarter ended September 30, 2003, and 2002, were $390,438 and $400,885, respectively.
Borrowings
The Company has a note payable to a bank secured by land, an office building, and related improvements. As of September 30, 2003, the balance on the note was $939,849. The loan is currently amortizing over a twelve-year period with payments of both principal and interest due monthly based on a fixed rate of 6.50 percent annually. The current monthly payment is $10,840, and the note matures on January 31, 2006. Under this agreement, the Company must maintain certain financial covenants. The Company is in full compliance with its financial covenants at September 30, 2003.
Earnings per share
Basic $ 0.09
Diluted $ 0.09
Contingencies
The Company was named as one of several defendants in a civil lawsuit filed in New York. During June 2003, this lawsuit was dismissed. However, during July 2003, the plaintiff filed an appeal. Management consulted with legal counsel and determined that the Company has strong merits for obtaining a favorable ruling.
The Company was the plaintiff in a lawsuit filed in Ontario, Canada and a mediation was held during June 2003. During this mediation, the Company and the defendant agreed to a settlement in the amount of $371,057, which was recorded as a receivable on the balance sheet at June 30, 2003. Payment on the settlement was received by the Company during the quarter ended September 30, 2003, and the case has been formally dismissed.
BUSINESS SEGMENTS
The Company, with principal operations in San Antonio, Texas, manages two business segments: (1) the Company provides investment management services, and (2) the Company invests for its own account in an effort to add growth and value to its cash position.
The Company generates the majority of its operating revenues from the investment management of products and from providing services for the U.S. Global Investors Funds (USGIF) and U.S. Global Accolade Funds (USGAF). Notwithstanding that the Company generates the majority of its revenues from this segment, the Company holds a significant portion of its total assets in proprietary investments. The following is a brief discussion of the Company's two business segments.
RESULTS OF OPERATIONS - QUARTER ENDED SEPTEMBER 30, 2003 AND 2002
The Company posted net after-tax income of $687,511 ($.09 income per share) for the quarter ended September 30, 2003, compared with a net after-tax income $111,107 ($.01 income per share) for the quarter ended September 30, 2002
Revenues
Total consolidated revenues for the quarter ended September 30, 2003, increased $657,934, or 33 percent, compared with the quarter ended September 30, 2002. This increase was primarily attributable to unrealized gains on trading securities of $374,007 for the quarter ended September 30, 2003, compared to unrealized losses of $(129,623) for the quarter ended September 30, 2002. The Company also realized an increase in investment advisory fees of $105,563 as a result of improved profit margins on its assets under management. Redemptions inlow margin money market funds were offset by market gains and purchases in high margin gold and foreign equity funds. The Company also had an increase in private client advisory fees of $86,517 due to continued asset appreciation in the client account. Offsetting these favorable trends was a decrease of $46,507 in transfer agent fees due to a decline in the consolidated number of mutual fund shareholder accounts.
Expenses
Total consolidated expenses for the quarter ended September 30, 2003, increased $89,127, or 5 percent, compared with the quarter ended September 30, 2002. The Company has increased marketing expenditures and has incurred additional sub-advisory fees associated with asset growth in the Eastern European Fund.
Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) Management considers EBITDA to be the best measure of the Company's financial performance since this measurement reflects the operations of the Company'sprimary business segment, managing and servicing USGIF and USGAF.
EBITDA for the quarter ended September 30, 2003, was $348,614, which was an increase of $53,301, or 18 percent, from an EBITDA of $295,313 for the quarter ended September 30, 2002. The Company has been able to utilize its expertise in the field of gold and precious minerals to provide investment management services to a private advisory client whereby the Company earns a percentage of the gains realized in the client account. The underlying investments in this account had outstanding performance in the quarter ended September 30, 2003,boosting operational returns relative to prior year. In addition, the Company had increased investment advisory fees as a result of growth in higher margin mutual funds. Conversely, during the same period the Company experienced a reduction in transfer agent fee revenues and an increase in operating expenses.
INCOME TAXES
Provisions for income taxes include deferred taxes for temporary differences in the bases of assets and liabilities for financial and tax purposes, resulting from the use of the liability method of accounting for income taxes. For federal income tax purposes at September 30, 2003, the Company has net operating loss carryovers (NOLs) of approximately $1.7 million, which will expire between fiscal 2010 and 2022, charitable contribution carryovers of approximately $69,000 expiring between 2004 and 2006, and alternative minimum tax credits of approximately $140,000 with indefinite expirations. The long-term deferred tax asset includes approximately $109,000 of unrealized losses on available-for-sale securities, approximately $22,000 associated with the difference between book and tax depreciation, and approximately $37,000 from annuity obligations. If certain changes in the Company's ownership occur subsequent to September 30,2003, there could be an annual limitation on the NOLs that could be utilized.
A valuation allowance is provided when it is more likely than not that some portion of the deferred tax amount will not be realized. Management included a valuation allowance of approximately $87,000 and $315,000 at September 30, 2003, and June 30, 2003, respectively, providing for the utilization of NOLs, charitable contributions, and investment tax credits against future taxable income.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2003, the Company had net working capital (current assets minus current liabilities) of approximately $4.1 million and a current ratio of 6.1 to 1. The increase in net working capital of $548,177 from June 30, 2003 to September 30, 2003, was primarily due to unrealized appreciation in the value of trading securities. In addition, working capital increased as a result of the Company recording additional receivables from the private advisory client to reflect its share of unrealized appreciation in the client account. With approximately $1.5 million in cash and cash equivalents and more than $1.7 million in marketable securities, the Company has adequate liquidity to meet its current debt obligations. Cash and cash equivalents increased by more than $343,000 from June 30, 2003 to September 30, 2003, as the Company was able to collect the monies due from a litigation settlement. The Company has a note payable to a bank whereby it must maintain certain financial covenants. One of the covenants requires that the Company maintain cash and cash equivalents and eligible marketable securities to meet or exceed $1 million at the end of each
quarter. The Company is in full compliance with all of its financial covenants at September 30, 2003. Total shareholders' equity was approximately $6.4 million, with cash, cash equivalents, and marketable securities comprising 40 percent of total assets. With the exception of operating expenses, the Company's only material commitment is its note payable to the bank. The Company also has access to a $1 million credit facility, which can be utilized for working capital purposes. The Company's available working capital and potential cash flow are expected to be sufficient to cover current expenses and debt service.The investment advisory and related contracts between the Company and USGIF and USGAF will expire on February 29, 2004, and May 31, 2004, respectively. Management anticipates the board of trustees of both USGIF and USGAF will renew the contracts.Management believes current cash reserves, financing obtained and/or available, and potential cash flow from operations will be sufficient to meet foreseeable cash needs or capital necessary for the above-mentioned activities and allow the Company to take advantage of opportunities for growth whenever available