Elcora Advanced Materials (ERA.V) (formerly ‘Elcora Resources’) is currently trading at C$0.73 per share, up 595% since our site visit report on the company was published. Back in December, we recommended to sell 50% of the shares at C$0.32, and we think it’s about time to sell another tranche of 25% of the position – should you still have shares. The company has now reached the C$55M fair value we calculated in our initial report in November of last year.
It took a while before Elcora started to move, but in the past 10 months the share price has ten-folded, making it one of the strongest performers on the TSX Venture Exchange. If you would have purchased 100,000 shares at C$0.105, you’d have paid C$10,500. Selling 50,000 shares at C$0.32 would have resulted in receiving C$16,000 in cash and selling another 25,000 shares at C$0.73 is good for another inflow of in excess of C$18,000. The C$10,500 investment thus has resulted in total cash proceeds of C$34,000 whilst you are still keeping 25,000 shares of Elcora in your portfolio which ensures additional exposure to the company’s future.
Go to Elcora’s website
The author no longer has a position in Elcora Advanced Materials. Please read the disclaimer
