We
are featuring Greenock Resources Inc. as a repeat Stock-of-the-Week. In the
past six trading days, the shares have been on a roller-coaster. From 15 cents
a share at the opening on Friday January 15th, the stock reached a
high of 35 cents on the Monday before trading was halted. After the Company
stated publicly that there was no corporate news to account for the increase in
the share price that occurred on significantly increased trading volume, the
stock opened on Wednesday at 49 cents! only to close that day at 33 cents. It
eventually was revealed that Seldon Inwentash (Chairman and CEO of Pinetree
Capital Ltd, a renowned investment and merchant banking firm), directly and
with others, added to his existing Greenock holdings. Mr. Inwentash and his
“joint actors”, as the Press Release describes them, now own 2.82 million, or
13.8% of Greenock.
For information on
Greenock, see our Initiating Report of December 14, 2009.
Greenock Resources Inc.
(formerly Simberi Mining Corporation) is a Canadian-based mineral development
company focused on early- to mid-stage properties that have high potential for
near-term production. Its flagship Kakanda project (copper) is located in the
Democratic Republic of Congo. The Company is also active at its Needles
property (gold) in Nevada, and its Merlot property (copper/nickel/platinum) in
Australia.
Greenock currently is
focused primarily on furthering its 70%-owned Kakanda copper project. An
updated feasibility study, which is expected in mid-2010, should garner
increased investor attention to the Company’s shares. At the same time, the
Company will be progressing on its recently-acquired Needles gold property in
Nevada.
The Company’s strategy is
to: (a) acquire properties that are located in
pro-investment regions, and which have significant potential because
exploration already has been completed on them; and (b) develop prospects to improve its reserve base and extend
the life of its mines.
We
recommend Greenock as a Speculative Buy for risk-tolerant investors. At the
time of our Initiating Report, the Company’s stock was trading at $0.065 per
share, so there already has been a substantial move. Nonetheless, our
twelve-month Target Price remains $0.50, which the stock briefly reached
(almost) already.
Mr. Weir has 43 years of investment research and analytical
experience in both the equity and fixed-income sectors, and in the
commercial real estate industry. He was at Dominion Bond Rating Service
(DBRS) from 1994 to 2001, latterly as Executive Vice-President
responsible for supervising the firm’s 34 analysts and conducting the
day-to-day management affairs of the company. He joined eResearch in 2004 and has been its President, CEO, and Managing Director, Research Services since May 2005.
