LSTG – Gold Early Bird Pick Ready for Flight

Posted by Admin on August 15, 2011 under Penny Stock Alerts Blog | Read the First Comment

Good morning everyone.

We’ve got an extra special perfectly timed play in our sites today, which is of course…LSTG – Lone Star Gold Incorporated.

Yesterday I sent a longer than usual stock alert out on LSTG in order to properly capture my overwhelming level of excitement.  In case you missed yesterday’s email and are wondering what’s so special, I’ll tell you…

This gold company just acquired a 70% interest in a Project that is estimated to contain reserves of up to $26 billion worth of gold and silver, yet they’re only priced at 80 cents!!

Plus today is somewhat similar to LSTG’s IPO day, in the fact that many thousands of investors just found out about LSTG this weekend, and I anticipate today may be LSTG’s first ever heavy volume trading day.

The IPO-like situation is extremely exciting for day-traders, because when unknown or newly trading companies initially get discovered and pick up that very first burst of trading activity, the majority of companies I’ve been watching on the OTC (at least the ones that are good companies or at minimum have a good hype campaign going) tend to make great upward moves.

Even a company priced as high as LSTG’s 80 cents (somewhat high by penny trading standards at least) can be capable of making the kind of big fast moves typically associated with companies under 10 cents, or even sub-pennies.  LinkedIn on the big boards still made TRIPLE DIGIT GAINS IN ONE DAY when their IPO launched.

I think LSTG has fantastic day-trading potential but I believe to look at this hot penny stock as just a one or two day play would be like eating the skin off of a perfectly cooked chicken.

Sure it’s flavorful and delicious, you may even get to taste a lot of the “sizzle”…but you’re missing the real meat.

Lone Star has too much potential in my opinion to be looked at as just another day trade.

Yesterday I showed you this chart showing how gold has been the dominant investment in every time frame from 5 day to 5 years!

http://www.marketwatch.com/investing/future/gold

Click the pull-down “compare” button to try it out.

Gold may seem to be on a run many would question as being “too high” or past its prime because it has broken out to a new all-time high…after already breaking its own all-time high time after time after time.

What the gold bears may be overlooking is a little thing called inflation.  They must be, or they probably wouldn’t be bearish on gold.

While gold may be making new all-time highs left and right, when gold’s current price per ounce is adjusted for inflation…it’s actually about 30% shy of its inflation adjusted all time high…meaning gold STILL has plenty of upside to go!

Most everyone is bullish on gold, and that’s a nice landscape to allow extremely rapid share price growth for LSTG.

The only thing that can get investors more excited than gold is an IPO.  While LSTG is NOT an actual IPO, it’s a newly trading company that was just exposed to thousands and thousands of investors for the first time over the weekend.  With the market opening in less than an hour and this being many investors first opportunity to buy LSTG, today’s situation definitely has some IPO heat.

The reason I feel it may be worth considering LSTG for more than just a fast hit and run trade is it that it seems to be ridiculously underpriced for the amount of revenue potential it has.

LSTG’s website lists their La Candelaria project as possessing estimated gold reserves of 10.3 million ounces, and 215.7 million ounces for silver!

If you do the math with an up to date value for gold and silver, we’re talking about over $26 Billion worth of highly in-demand precious metals.

The fact that LSTG has that kind of potential and is priced at 80 cents is basically unheard of.

Producing $Billions in gold and silver would almost certainly boost LSTG’s share price up to the stratosphere, but I believe it would only take a tiny sliver of a fraction of that much success to propel LSTG to double or even potentially triple digit gains.

Even if LSTG were to fall short of the high expectations they are setting, the hype and excitement of a small-cap gold company, brand new to the market, issuing press releases stating the possibility for BILLIONS in revenue could be enough to send traders and investors into a buying frenzy which could also lead to double or even triple digit gains.

Don’t forget we’re talking about gold here.  The current password to the clubhouse of profits.  The easiest thing to get traders excited about.

Even though I’m obviously pretty optimistic about this one, that should mean absolutely NOTHING to your trading rules!  Tight stop, book profits when you can, trade with caution, etc, etc.

LSTG actually went out on a limb by having their President make a suprising statement.  To my understanding, the gist of what he said is that LSTG’s immediate-term goal is to get to PRODUCTION so LSTG can very quickly differentiate themselves from all the rinky-dink “exploration” companies who may or may not have any sort of track record of actually accomplishing their revenue goals.

Hmm…maybe LSTG is the real deal after all!  I listen to a lot of the top management of countless OTC companies talk, and I notice they share two characteristics.  Optimism and vague speech.

The President of LSTG actually broke the corporate robot mold there. His company is getting the spotlight for the very first time in its public trading history, and he didn’t shy away from setting the bar extremely high.

It’s a bold statement, and with LSTG being a gold company in an IPO-like phase, I think investors are going to go completely bonkers for this penny stock pick.

Keep your eyes glued to LSTG as things could get hot and heavy today when many eager traders get their first crack at this tremendous gold play!

Don’t let it slip out of your vision after that, LSTG may be the next hot one that gets all of Pennyland into a tizzy in the near future.

If every other newsletter starts alerting LSTG and it goes on a massive run, and everyyyyybody is talking about it…my only request is that you remember that old Penny Psycho told you about LSTG FIRST!

Let’s do it…

PSA – Penny Psycho

www.pennystockalerts.com