NIA is excited to release its Full Top 5 Picks List for between now and year-end 2020:
NIA's #1 Overall Pick for Remainder of 2020:
Enterprise Group, Inc. (TSX: E)
Originally Announced as #1 Pick on September 18th
Announcement Price: $0.16 per share
Current Price: $0.26 per share
% Change so far: +62.5%
Shares Outstanding: 49.8 million
Market Cap: $12.95 million (USD$9.68 million)
Cash: $1.3 million
Debt: $11.37 million
Enterprise Value: $23.02 million (USD$17.2 million)
Enterprise Group provides specialized equipment and services in the build out of infrastructure for the energy, pipeline, and infrastructure construction industries. The innovation and expertise of their operating companies have distinguished them as “best in class” to their many multibillion dollar clients.
Enterprise Group has repurchased 1.18 million shares so far in 2020, after repurchasing 4.17 million shares in 2019, 0.37 million shares in 2018, and 0.13 million shares in 2017. All together, Enterprise has repurchased 5.85 million shares since 2017, thereby reducing their shares outstanding by 10.512%. Insiders have also been buying big in the open market and have purchased 690,000 shares of Enterprise stock in 2020. Insiders now own 19.45 million shares or 39.05% of E's remaining shares outstanding of 49.8 million. This gives Enterprise a very small public float of 30.35 million shares currently worth only $7.891 million (USD$5.896 million).
Enterprise Group's 100% owned Artic Therm subsidiary owns a fleet of over 200 portable flameless heat units with output of between 500,000 and 3.3 million BTUs used in remote locations for a variety of applications. Enterprise Group's 100% owned Hart Oilfield Rentals owns a conventional and modular/combo rental equipment fleet of approximately 2,500 pieces of equipment designed to provide on-site infrastructure. Enterprise Group's 100% owned WESTAR Oilfield Rentals owns a fleet of more than 500 pieces of equipment and is a highly-regarded full-service oilfield site infrastructure company that fulfills multiple equipment rental needs.
Enterprise Group has a well-diversified client base across a variety of industries including oil/natural gas exploration & production, infrastructure construction, agriculture/farming, and gold exploration & mining.
Enterprise Group has many multibillion dollar publicly traded clients including: Tourmaline Oil (TRMLF): $3.38 billion market cap, Cenovus Energy (CVE): $4.767 billion market cap, Canadian Natural Resources (CNQ): $19 billion market cap, Sinopec (SHI): $4.18 billion market cap, Suncor Energy (SU): $18.893 billion market cap, and Husky Energy (HUSKF): $2.333 billion market cap. Another Enterprise client is Ledcor one of Canada's largest private construction companies.
Enterprise Group owns $78 million in property, plant, and equipment (at cost) or $46.352 million after depreciation. The company has shareholder equity of $38.809 million for a book value of $0.779 per share of which $0.778 per share is tangible. Enterprise is trading with a price/tangible book value ratio of only 0.33. The main reason for Enterprise trading 67% below its tangible book value is the company's unhealthy current ratio (current assets/current liabilities) of 0.51. Sometime between Monday and Wednesday of this week, we expect the company to announce a new long-term lending agreement with PNC Bank Canada, which will greatly reduce its current liabilities and give the company positive working capital and a very healthy current ratio, which we believe will allow it to immediately begin trading much closer to book value.
Enterprise Group's average equity raise has been at a price of $1.436 per share and the company has never raised capital at less than $0.40 per share. It won't take much volume for E to reach $0.40+ per share.
NIA's #2 Overall Pick for Remainder of 2020:
Silver Viper Minerals (TSXV: VIPR)
Originally Announced as #2 Pick on September 18th
Announcement Price: $0.66 per share
Current Price: $0.56 per share
% Change so far: -15.15%
Shares Outstanding: 73.04 million
Market Cap: $40.9 million (USD$30.56 million)
Cash: $5.072 million
Enterprise Value: $35.828 million (USD$26.77 million)
VIPR's La Virginia in Sonora, Mexico is a high quality silver/gold project and we are looking forward to the company defining its maiden resource by year-end 2020. The previous operator of La Virginia drilled 188 drill holes totaling 52,635m in 2010-2012. VIPR drilled 20 drill holes totaling 4,753m in 2018 and is currently conducting its Phase 2 drilling campaign.
VIPR's 2018 drilling program discovered El Rubi, located 5 kms north of the main area of historical exploration by Pan Am and Minefinders. Recent high grade intercepts include: LV20-219; 5.56 g/t Au and 1,584 g/t Ag over 0.5m (downhole), LV20-218; 22.6 g/t Au and 1,431 g/t Ag over 3.0m (downhole), LV20-217; 15.55 g/t Au and 1,436 g/t Ag over 2.0m (downhole), LV20-215; 196.3 g/t Au and 984 g/t Ag over 0.5m (downhole), and LV19-211; 58.3 g/t Au and 1,923 g/t Ag over 1m (downhole).
VIPR has just discovered a new broad zone of mineralization representing a second major lode at El Rubi in hole LV20-245 with 0.76 g/t Au and 38 g/t Ag over 110.5m (downhole).
NIA's #3 Overall Pick for Remainder of 2020:
Idaho Champion Gold Mines (CSE: ITKO)
Current Price: $0.22 per share
Shares Outstanding: 93.023 million
Market Cap: $20.465 million (USD$15.29 million)
Cash: $8.073 million (amount raised in July 30th private placement)
Enterprise Value: $12.392 million (USD$9.26 million)
Coming out of gold's last correction in March, NIA announced ITKO on April 2nd at $0.085 per share as its #1 favorite gold stock. ITKO quickly became one of the largest gainers in the entire market initially rising to an April 13th closing price of $0.21 per share for a gain of 147% in 7 trading days. On May 21st after we sent out a major update about ITKO at $0.33 per share it gained 33.33% in a single day to close at an all-time high of $0.44 per share for a gain of 417.65% from our April 2nd suggestion price.
At the time of NIA's initial suggestion of ITKO on April 2nd at $0.085 per share, the company only had $366,000 in cash. On July 30th, ITKO closed on an oversubscribed private placement of $8.073 million priced at $0.30 per share. ITKO's newly issued shares from the private placement are restricted until the end of November and they were sold at a price that is 36.36% above its current share price of $0.22 per share!
Idaho is now ranked the 8th best mining jurisdiction for investors in the world and ITKO owns 100% of two of our favorite gold projects in Idaho: Baner and Champagne.
ITKO's 100% owned Baner gold project has no NSR royalties. It includes 215 claims totaling 1,763 hectares and is located in the middle of the Orogrande Shear Zone which hosts a number of gold deposits, including (but not limited to), Endomines AB's Friday Gold Project located 5 miles south. Endomines AB announced commercial production at the Friday Gold Project in April 2020!
ITKO completed the first ever drilling campaign at Baner in late-2018, drilling 19 drill holes totaling over 5,000m. ITKO achieved gold intercepts in 18 of 19 drill holes! ITKO's drill holes located furthest north at Baner contained the highest grades of gold that were also located closest to the surface. Baner could be ideal for an open-pit gold mine.
ITKO's drill hole ICG2018-8 began intercepting gold only 21m downhole and achieved a high-grade intercept of 8.66 g/t gold over 6.30m beginning only 115m downhole.
ITKO's drill hole ICG2018-9 achieved a wide intercept of 1.32 g/t gold over 12.80m beginning only 47m downhole. This same drill hole also intercepted 4.50 g/t gold over 3.5m beginning only 75.2m downhole, 1.25 g/t gold over 6.30m beginning only 110.5m downhole, and 2.67 g/t gold over 4.10m beginning only 175m downhole.
ITKO's drill hole ICG2018-1 began intercepting gold only 16.5m downhole and achieved a wide intercept of 1.39 g/t gold over 18m beginning only 83m downhole plus an intercept of 2.6 g/t gold over 4m beginning only 124m downhole.
ITKO's drill hole ICG2018-16 began intercepting gold at surface and achieved a high-grade intercept of 4.80 g/t gold over 5.90m beginning only 127.9m downhole.
ITKO's drill hole ICG2018-19 began intercepting gold only 75m downhole and achieved a high-grade intercept of 5.85 g/t gold over 2m beginning only 89m downhole plus a high-grade intercept of 8.07 g/t gold over 1m beginning only 137.70m downhole.
ITKO launched a new drilling campaign at Baner on August 24th! ITKO is drilling 19 drill holes totaling 3,000m located on the Baner claims to the northeast of the gold discovery made in 2018. ITKO is continuing along the northern structure where they intercepted high grades of near-surface gold, while also stepping to the east to crosscut more of the Orogrande Shear Zone. NIA looks forward to ITKO's upcoming announcements of Baner drilling results!
NIA's #4 Overall Pick for Remainder of 2020:
Numinus Wellness Inc (TSXV: NUMI)
Current Price: $0.285 per share
Shares Outstanding: 113.22 million
Market Cap: $32.27 million (USD$23.81 million)
Cash: $4.6 million (amount raised in September 14th private placement)
Enterprise Value: $27.67 million (USD$20.42 million)
NIA's President Gerard Adams is very knowledgeable about the psychedelic drugs industry and expects to see a major boom in this market between now and year-end 2020! Industry bellwether Compass Pathways (CMPS) had its IPO on September 18th raising $146.6 million at $17 per share. CMPS opened for trading at $23.40 per share and in recent days has exploded to a Friday closing price $43.17 per share where its market cap is now $1.5 billion.
Gerard's #1 favorite psychedelic play is Numinus Wellness Inc (TSXV: NUMI) currently $0.285 per share with an enterprise value of only $27.67 million.
NUMI has just begun cultivating Psilocybe mushrooms, for the purpose of psilocybin production, at its 7000 square-foot Health Canada licensed facility. Psilocybin-assisted psychotherapy is currently being studied as a treatment for a range of mental health conditions including depression, anxiety, and substance use disorders.
Under its Health Canada licence for the production and extraction of psilocybin from mushrooms, NUMI intends to cultivate and harvest the mushrooms for a variety of purposes including: development of standardized extraction methods, exploration of product formulations of naturally occurring psilocybin, development and evaluation of qualitative and quantitative mycochemicals standardized test methodologies, exploration of the ability to investigate naturally occurring psilocybin’s efficacy as an alternative supply to synthetic psilocybin currently used in research, and ultimately, the delivery of safe, evidence-based psilocybin-assisted psychotherapy at clinics including its own.
NUMI's vertically integrated ecosystem positions the company to be a first-in-market, trusted leader in the delivery of psychedelic-assisted psychotherapies when regulated. From product development and supply, to analytics and testing, and including clinical protocol development and implementation science in partnership with leading research organizations, the ecosystem approach allows NUMI to ensure quality control and best-in-class delivery with steady revenue streams to support its developments.
NIA's #5 Overall Pick for Remainder of 2020:
Current Price: $1.76 per share
Shares Outstanding: 19.08 million
Market Cap: $33.58 million
Cash: $29.69 million
Enterprise Value: $4.023 million
SPRT has generated positive free cash flow over the last twelve months of $5.529 million. SPRT is trading with an enterprise value of less than 1X free cash flow, which is unheard of! Back on July 1, 2014 after SPRT generated trailing twelve month positive free cash flow of $5.623 million, SPRT hit a high of $8.52 per share where it had an enterprise value of $77.44 million or 13.77X free cash flow. If SPRT traded with an enterprise value of 13.77X free cash flow today, SPRT would be worth $5.74 per share or more than triple its current share price!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has been compensated by VIPR USD$30,000 cash for a six-month marketing contract. NIA has been compensated by NUMI USD$30,000 cash for a six-month marketing contract. NIA was previously compensated by ITKO a total of USD$30,000 cash for a six-month marketing contract, which has since expired. This message is meant for informational and educational purposes only and does not provide investment advice.