Silver Bear Resources Inc. (TSE:SBR) (PINK:SVBRF) stock has gone up considerably in reaction to two promotional newsletters. Although the price gains are somewhat warranted, the strength and necessity of this rally is questionable at this time.
SBR share price gained 21.7% on Thursday driven up by alerts from Lebed.biz and Wall Street Grand. Both promoters stated they were not compensated for this particular issue.
The accompanying trading volume was comparatively week and stayed closed to the 90 day average of 91.5 thousand.
The newsletters summarized the business model and properties of Silver Bear and made a small scale analysis.
The company’s market cap of $32.3 million is twice their net tangible worth of $16.7 million. $13.8 million of that is cash, so their fixed assets comprising $1.8 million are valued pretty optimistically on the market. The company has negligible debt in comparison.
High amounts of indicated resources on their property are what accounts for this contrariety. Apparently SBR has 49 million oz of silver on their property and 18 million of that is already marked as indicated. These calculate into spectacular revenues, although it remains a question whether their market valuation should be adequately adjusted at the current time as suggested in Lebed’s newsletter.
