CymorFund Stock Picks Update

In our Investment Newsletter, we highlight stock picks that we believe have strong upside, and strong fundamentals. Today, we have a brief update on some of those picks. 

Our Winning Record

In spite of a disastrous down plunge in the junior resource market,  our picks are substantially ahead. We have closed three positions – all three were profitable.

  • We closed eMinis for an 11% gain
  • We closed Medicago for a 119% gain
  • We closed Apple for a 2% gain.

We have 9 positions open currently. Some are down and some are up. We think there is a substantial upside to each of our open positions and are holding all. Overall, we are substantially up.

 

 

We review 3 of those positions today.

 

Probe Mines (PRB-TSXV)

We picked Probe Mines at $1.47 on May 30, 2013. It reached a high of $2.00 this week and has fallen back a bit to $1.88. It has been on a tear since we published it.  This has been a strong performer, but it has much more upside. No stock travels in a straight line, but Probe is within its upward channel and we expect great performance.

If you look at “Insider Reports”, senior executives have been buying this stock recently at current levels. This is a very positive sign. 

Probe seems to be the only large scale potential gold deposit remaining in a safe and friendly mining jurisdiction, that has not been acquired by a major gold producing company, and recent drilling is showing a possible large expansion of the resource and at higher grades than previous thought.

It remains a very attractive gold stock.

 

Tethy’s Petroleum (TPL-TSX)

We picked Tethy’s Petroleum at $0.74 on Feb 6, 2013. It reached a high of $0.93 on June 19, 2013 on very positive news but since has fallen back to $0.68. In reviewing the company and speaking with its senior executives, there is no apparent reason for this fall back, aside from good news in these markets is often a liquidation event. In other words, good news means that people wishing to flee the stock market use good news to sell into the market and extract their cash from the market.

Tethy’s is a wonderful opportunity to diversify and to buy value at a discounted price. Their expansion plans are all coming to fruition. They have almost a monopoly in the markets they operate in because they have been there so long, they are the first mover in those markets, and their contacts are unique in these troubled areas. They have a stunningly beneficial  joint venture with two gas and oil majors whose only entry into these markets and resources, is through Tethy’s. Only good news, and next year the company should be cash positive.

 

Lakeshore Gold (LSG-TSX)

We picked Lakeshore Gold at $0.26 on June 27, 2013. It reached a high of $0.355 yesterday for a gain of 36% since we made it our pick. This stock has a very strong upside. It is a producer, and it has just started this production. Costs currently make it marginally profitable and the market is punishing them accordingly. But every producer has the same issue. No one can start up production efficiently. Every producer goes through growing pains and Lakeshore is no different. 

The company’s press releases show an increasing productivity and an expectation that the cost per ounce of producing gold next year will drop dramatically. At today’s price of gold, the company should attain an operating profit that is only slightly less than the current market value of its shares.

There has been no negative press release and everything is progressing reasonably. The upside here is substantial.

 

Other Stock Picks

We will update our stock picks periodically, but at this time – although some picks are substantially down – each of the current 9 picks have substantial upside from their current stock prices and should be held.

 

We may or may not have positions in the securities we name. In making an investment decision numerous factors must be considered including portfolio balancing, timing, cash and capital reserves, asset allocation and other factors. Readers are strongly advised to do their own research. Matters discussed contain forward-looking statements that are subject to risks and uncertainties and actual results may differ materially from any future results, performance or achievements expressed or implied.

Views expressed are opinions and not investment advice. Persons investing should retain a licensed professional to guide them and  not rely on the opinions expressed herein. This report is neither a solicitation nor a recommendation to buy or sell securities. We are not a registered investment advisor nor a broker-dealer. The information contained herein is based on sources which we believe reliable but is not guaranteed as being accurate or a complete statement or summary of the available data.

By Larry Cyna

Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele. He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section. He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants. He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm. Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.