We initiated the coverage in April 2019 with the stock at $.055 and at the time we place a $.19 price target on the shares. The stock spent the next 18 months trading down, however in late 2020, the shares substantially breached our price target on multiple occasions, which in retrospect should have elicited either an allocation downgrade, a target increase, or some combination of each. We terminated the coverage on 09/17/21 at $.10. To access the termination coverage click: H-Source Coverage Termination 09.17.21
On December 31, 2020, Gold Resource spun off its Nevada gold unit into a separate public company called Fortitude Gold Corp. (NASDAQ: FTCO). That transaction included the departure (from Gold Resource to Fortitude Gold) of Gold Resource Founder and CEO, Jason Reid. Some of our subscribers may also recall that we have followed Gold Resource for approximately 15 years when it first began developing the Mexico assets that are today the basis of its operations.
Our relationship has always been (and remains) with the original founders. That was the genesis of our initiating coverage on Fortitude Gold (04/14/21). Looking back, we initiated coverage of Gold Resource on 07/27/18. At that time, we were obviously familiar with their Mexico project, but much of our enthusiasm was around the addition of the Nevada gold assets. As a result, of the spin-off and other associated issues we terminated our coverage of Gold Resource on 08/23/21. To access the termination click Gold Resource Coverage Termination .08.23.21
We initiated coverage of Endurance Exploration (EXPL) on 11/06/17 at $.18 and a $.29 price target. The stock advanced well above our target, trading as high as $.75 in late 2017. Moreover, the stock continued to trade above our price target through much of the first half of 2018, albeit with generally limited volume. However, in an effort to reduce costs, in early 2019, they terminated the registration of their stock with the SEC and stopped filing financial statements. Clearly, we neglected the stock from a research standpoint, in that we should have terminated it when they stopped filing, although at that point, it was largely academic. That said, we subsequently bought a position in the stock because we still think they are going to find more shipwrecks. That however, (us taking a position in the stock) should definitely have led us to terminate the coverage, since as a general rule, we do not own stocks we cover. We (officially) terminated the coverage on 06/14/21 at $.028
We initiated coverage of SG Blocks in February 2019. We had seen the company present at a couple different conferences prior to our initiation. At the time of the initiation, the stock had already sold off considerably over the prior few months, in the face of Company guidance which suggested a backlog of $120 million and a pipeline that looked more like $200 million. To make a long story short, the backlog never materialized and the stock fell precipitously eventually culminating in a 1:20 reverse split and subsequent financings that were highly dilutive.
In retrospect, we did a poor job here on multiple levels and there were some things we should have recognized and/or done differently to mitigate the carnage. We would add, one of our bigger mistakes was probably our faith in management, which as it turned out performed poorly as well, and that is probably an understatement.
We terminated the coverage on 08/23/21 at $3.41. To access the termination coverage click here: SG Blocks - Coverage Termination 08.23.21
We initiated coverage of PureCycle on 05/05/17 at $7.60 and a $10.75 price target. We upgraded the price target to $12.0 on 02/09/18. We terminated the coverage on 12/02/19 at $12.25 after it breached our price target.
When we initiated this coverage at $.59 on 7/23/19 with an allocation of 3 (speculative). Despite various approaches/attempts, the Company failed to raise the capital necessary to execute the business plan. That was a risk we knew going in.
We downgrade the stock from 3 to 1 on 11/29/19 at $.11 after its prospects for financing appeared bleak. The Company filed for Chapter 11 reorganization on 12/18/19. We terminated the coverage on 03/30/20.
This is disappointing. We still think they have a viable product, but they were unable to overcome some of their past missteps.
We initiated coverage of New Jersey Mining (NJMC) at $.115 on 01/18/17 with a 12-24 month price target of $.21. We downgrade our allocation on 04/08/19 at $.17 per share and we terminated the coverage on 05/16/19 at $.13.
We initiated coverage of PetroShare Corp. (PRHR) on 05/31/18 at $1.46. We terminated our coverage of PetroShare on 09/09/19 at $.04 following the chapter 11 reorganization filing.
We initiated coverage of Barfresh Food Group, Inc. (BRFH). on 03/27/17 at $.58 per share, and a 12-24 month Price Target of $1.60. We terminated the coverage on 08/20/18 at $.53 after the company failed to achieve the metrics we were expecting.