Post-Election Bottom-Fishing Candidates

Written by GSCR Staff   
Thursday, 08 November 2012 11:53

After yesterday’s massive sell-off we decided to look into some possible bottom-fishing opportunities in each of our Accumulate sectors in the small cap space from the blog.

Gold: Brigus Gold Corporation (AMEX - BRD - $0.95) is a Canadian company that is involved in the exploration, development, extraction, processing, and refining of gold mineral deposits.  The company has had average sales growth of almost 50% over the past five years and in late October secured a $30 million deal for debt financing with senior secured debt notes and a three year term.  Price target is $2.00. 

Health Care: From primarily a technical perspective, BioTime Inc. (AMEX – BTX - $3.46) is hovering around a 52 week low.  This bio-tech company is engaged in stem cell research and development focusing on regenerative medicine and blood plasma expanders.  The company has a positive sales growth story and has participated in several M & A, and financing deals recently.  Price target of $6.00.

Clean Energy: Finavera Wind Energy Inc. (OTC – FNVRF - $0.39) is a possibility for a speculative buy in the clean energy space.  The Canadian company currently has 4 wind projects in British Columbia and has a 25 year Electricity Purchase Agreement with BC Hydro.  There has been speculation about a possible sale of the company, and some analysts have priced that stock at $1.00.

Gaming: Dover Downs Gaming and Entertainment (NYSE – DDE - $2.30) owns and operates the 165,000 square foot Dover Downs Casino, the 500 room, AAA diamond rated, Dover Downs Hotel and Conference Center, and Dover Downs Raceway in Dover, DE.  The company is paying its first dividend this quarter and is near a 52 week low.  A rise in price to the $4.00 range in the next two to three quarters is definitely possible.

Limited Tech: We like Alaska Communications Systems Group, Inc. (NASDAQ – ALSK - $1.98) in this sector with a price target of $2.50.  The stock has been hammered over the past year, but has little competition in remote Alaska and good fundamentals highlighted by an 11.6% increase in EBITDA in the third quarter of 2012 versus 2011.

Aaron Schweitzer, Vice-President Research

aaron@goldmanresearch.com

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