All Hokie, All the Time. Period. Presented by

The Lounge Board

MP4VT2004

Joined: 09/09/2007 Posts: 16646
Likes: 13850


DRAM presents an interesting opportunity if you are OK with risk.


First of all:

1) It's a penny stock, and gets manipulated like a penny stock

2) It's gotten crushed over the past 1-2 weeks, for seemingly no good reason, as the company just finalized a merger that has been in the works for a year. Not so good if you've been holding it for a while, but for someone looking to get in, now may be a good buy-in (it hit a new 52-week low this week).

I know that's not exactly a ringing endorsement, but based on my research, the stock is seriously undervalued right now. Don't take my word for it, but if you're interested, do some research on the merger that just finalized between DRAM and US Gold Corp. DRAM's memory chip business has been tanking, and they were looking to diversify into another industry. One of their board members was also director for US Gold, so that is how the relationship started. The merger effectively grants shares of DRAM stock to US Gold stockholders in return for purchasing the company.

US Gold was a privately-held junior mining/gold exploration company that had mining rights to two properties, one of which has undergone feasibility studies and has been evaluated with a net present value of $160,000,000. When you do the math on the new post-merger float, you realize that the stock is currently trading well below the per-share value of the typical premium they could command for selling this property (~30% of NPV from my research). That doesn't even take into account the other property they have rights to.

There is definitely plenty of risk in this. Like I said, the stock has gotten crushed this week and it's in the cesspool world of penny stocks. There is also the risk of dilution, as the company will need capital for further exploration of the lesser-developed site. But I also think there is a lot of upside. I only own a few hundred shares, so I don't have much skin the game...I've only risked what I'm comfortable losing.

(In response to this post by AXD1985)

Posted: 06/01/2017 at 5:34PM



+0

Insert a Link

Enter the title of the link here:


Enter the full web address of the link here -- include the "http://" part:


Current Thread:
 
  
Stock Tips? -- AXD1985 06/01/2017 2:16PM
  Lol all these responses are awesome! ** -- AXD1985 06/02/2017 12:49PM
  VBNM VBNM VBNM VBNM VBNM VBNM... -- Freddyburg Hokie 06/02/2017 11:57AM
  50% Bitcoin 50% Ethereum ** -- bulab 06/01/2017 8:55PM
  Transparent Aluminum ** -- Brown Water 06/01/2017 5:05PM
  "We've got to find some humpbacks. Humpbacked people Sir?" -- bourbonstreet 06/01/2017 5:12PM
  Zalinsky Auto Parts ** -- VTimHokie85 06/01/2017 3:59PM
  S&P 500 ** -- 133743Hokie 06/01/2017 3:57PM
  Buy low. Sell high. ** -- RoswellGAHokie 06/01/2017 3:32PM
  Plastics! ** -- EDGEMAN 06/01/2017 3:28PM
  Orange juice futures. ** -- vthhhi 06/01/2017 3:26PM
  I like BIP right now ... -- vt90 06/01/2017 3:17PM
  Pumpkins, sell around January. ** -- Gator Hokie 06/01/2017 3:06PM
  SPHS still. ** -- hoosnowahokie 06/01/2017 3:02PM
  Waffles ** -- psychobilly 06/01/2017 2:58PM
  Peanut Butter ** -- Brown Water 06/01/2017 3:03PM
  Jelly your buys across 6 months or so - dollar cost avg. ** -- King Jaffe Joffer 06/01/2017 3:32PM
  Stock tips on the lounge? -- Coach McGuirk 06/01/2017 2:53PM
  I know a couple of guys . . . -- YardBird 06/01/2017 2:48PM
  BAC and C on this backup. -- King Jaffe Joffer 06/01/2017 2:47PM
  Queen to queen's level 2 ** -- TomTurkey 06/01/2017 2:46PM
  "I am Lord Garth!" ** -- Brown Water 06/01/2017 3:03PM
  Pork bellies ** -- Brown Water 06/01/2017 2:42PM
  Which they use to make bacon ** -- statmanfromHCyrs 06/01/2017 2:46PM
  Pioneer Aviation ** -- TexasGobbler 06/01/2017 2:42PM
  +4.o77. : ) ** -- bourbonstreet 06/01/2017 5:15PM
  Blue Horseshoe loves Anacott Steel ** -- Burke Hokie 06/01/2017 2:22PM

Tech Sideline is Presented By:

Our Sponsors

vm307