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Silver and cash-rich Levon (T.LVN): 26 cents

Danny Deadlock Danny Deadlock, TickerTrax
6 Comments| August 29, 2014

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Stockhouse Ticker Trax is published to subscribers every Monday (annual cost only $195). We focus on best-in-class high growth small companies trading on the TSX and TSX.V between 5 cents and $3 with a market cap below $300 million.

Equity Analyst Danny Deadlock has 30 years of experience speculating on Canadian penny stocks and targets capital gain opportunities and diversification in metals and minerals exploration, energy, and technology.

For the experienced investor, Ticker Trax provides an extra set of eyes and ears (idea generation) and for those learning to invest in micro cap stocks, we provide stock picks and market education.

Subscribers receive; (1) new research (stock picks) weeks in advance of being featured on this weekend column (2) exclusive access to our list of junior gold exploration companies (critical for peer valuation), (3) exclusive access to our list of Cash Rich micro cap companies (our Virtual Vulture Fund) which contains 80 companies with almost $3 Billion.

Both tables are updated monthly.


 
Levon Resources Ltd. (TSX: T.LVN, Stock Forum) (26 cents) – www.levon.com
 
 
Shares Outstanding: 200 Million

Net Cash: Approx. $40 Million (20 cents per share)
One of the world’s largest undeveloped (but low grade) silver projects
 - currently valued by the market at $12M

Updated resource pending (from 13,000m drill program)

Location: Mexico
 
Back in May I introduced Levon to Ticker Trax subscribers at 22 cents.  Thanks to an overly aggressive U.S. stock promoter named Jonathan Lebed, LVN ran over 45 cents and produced a six week gain in excess of 100% for TTrax subscribers.
 

 

Lebed pushed hard on Levon heading into July and left many who followed his “advice” sitting on big short term losses. He used comments like - "about to explode" and "unless you want to make an absolute fortune".  I question why the SEC continues to allow this nonsense but you can see how the promotion evolved here:
 
http://newsletter.hotstocked.com/stocks/view/LVNVF-Levon-Resources-Ltd.
 
Here is an example of just how ridiculous this got on July 8th – as his followers were lead to slaughter like sheep. Note my highlights in yellow which reflect the highly questionable tactics used.
 

I doubt that LVN management had anything to do with this (or at least I hope they didn't) but it still looked bad.
 
While I am not a fan of LVN's share structure and their project is low grade, they are trading near cash value and do own a very large resource. This is a scenario where a person is speculating on the large bank account while hoping for a recovery in junior resource stocks or more specifically, the price of silver.
 
The market is viewing the entire district as uneconomic - which it may be at current commodity prices. However April 30th LVN announced higher grade drill intersections near the center (heart) of the system.
 
At this time I see NO reason investors would want to over-pay for this speculation as the mid-twenties has very good liquidity.
 
LVN provides very strong leverage to silver and zinc prices - that can either be a good thing or a bad thing. It depends entirely upon your outlook for these commodities.
 
For proper due diligence, review the August corporate presentation:
http://www.levon.com/i/pdf/presentation.pdf
 

 
  ** TWITTER NOTE:  I maintain a twitter page at - twitter.com/tsxalerts  
___________________________________________________________________________________
 
Disclosure: Danny Deadlock owns 75,000 LVN purchased in the open market
___________________________________________________________________________________

Tags: INDUSTRIAL METALS & MINERALS

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Nazarbaz
Thanks for the introduction Danny. They only have an NI43-101 right? No PEA. I would have taken benefit and sold out if I had a position in it.
1.5 stars
August 31, 2014
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Johnny881
v.MXR, 30 million shares o/s, management owns 29%, drilling completed on Nevada property in area of 3 other 1 million ounce plus gold mines, results expected with in the next 2 weeks.
4.5 stars
August 31, 2014
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EOIM
All TSX Venture stocks are worthless. Buy only producing assets with positive cash flow.
2.5 stars
September 1, 2014
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Rusty7
His opinion is not worth a dime. It is almost he picks these figures by pulling a number out of hat. Boy , i seriously cannot believe stockhouse would have a fool like this representing their name. You can read his past predictions it makes for good comedy material. I look forward to his next nonsensical article because now it is entertaining.
1.5 stars
September 5, 2014
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Advantage8888
It shows how broken this market is when Levon has so much metal in the ground and is trading near cash value. It should have very large upside when sentiment changes.
2.5 stars
September 2, 2014
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Nazarbaz
Same thing happen to Ivanhoe energy the day before yesterday. If some one wants to use stock market as a gambling table thats their money. I don't see why you want government to come in and protect people from themselves?
1.5 stars
August 31, 2014
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