Silverstone Situation
Perhaps some of you (like me) decided that the Capstone spinoff of Silverstone might be a good investment.
So far it is not looking very nice for Capstone for reasons that I cannot understand.
I have done the due diligence and cash flow analysis for them and they look extremely cheap to me. In my opinion they should be a $10 stock, not one struggling at $1.50.
But the markets are never rational so it may take some time for the market to value Capstone as it should be. At these levels in the $1.40 range are looking very nice. However, there could be further downside. I don't know how much but if it hits a dollar (in worst case?), I think that is a sreaming buy!
But keep in mind that as long as you bought at the right time, you will soon be getting Silverstone shares and warrants. The great thing is that Silverstone shares will be only held by the people who held Capstone shares.
Because of the low float of about 24 million shares that could be held tightly, I think Silverstone, on a single piece of good drill results could really soar.
Best of all, if it does, then we can exercise our warrants to make even more money!
And in case you think that Silverstone is an early stage junior, it's not.
They have 4 advanced stage silver/gold projects in Mexico right now.
For 2006, here are their goals:
Copala (Silver-Gold)
Phase 1A: additional 1,500m drill program
Claudia (Gold-Silver)
Phase 1: 1,500m drill program
Promontorio (Silver-Gold)
Mapping and sampling programs
Montoros (Gold-Silver)
Rock sampling and mapping programs
The Copala project is probably the most advanced and it even has a 175tpd mine on the site.
The Promontorio project has great potential in my mind because it has had past production of over 30,875,088 ounces of silver and 17,642 ounces of gold.
All properties will have drilling done in 2006 so I am sure at least one of them (if not all) will have great results that will be a possible catalyst for a higher share price!