Millionaire Called Bitcoin TOP:
His Next MOVE REVEALED!
My 1st Ever Investment using Margin: Why I’m Betting the Farm On One Company…
My 1st Ever Investment using Margin: Why I’m Betting the Farm On One Company…
From Warren Buffett to Ray Dalio, the world’s most successful billionaire investors, who built financial empires by learning to act opposite to consensus, developing the ability to think entirely independent of outside “noise” and influences, have admitted that there is one thing no one knows how to do, and that’s calling the top for an asset class.
Even more elusive is the capability to invest at market bottoms. But what 87-year old Buffett and 68-year old Ray Dalio couldn’t master, a 58-year old Canadian multimillionaire has perfected over three decades.
It’s one thing to call the Bitcoin top at $20,000; it’s another to make money by investing early, at its inception.
Through his connections with one of the world’s most dynamic investment funds, he was able to position himself and align his capital with the world’s best performing company (between September 2017 and October 2017), making 853.7% by investing in a blockchain company.
He sold his position three days before the stock finally peaked, called Bitcoin’s top, and is now putting his money into the cheapest asset around.
This strategy has worked for him twice already and has led to the birth of two billion-dollar companies in the process.
You see, Keith Neumeyer is not a “traditional” Wall-Street suit. He is a boots-on-the-ground natural resources magnate, who realized that the bottom was in for copper prices. He founded First Quantum Minerals in the 90’s and turned early shareholders into millionaires.
When I met with him, people approached to shake his hand, and they introduced their children to him saying, “My investment in your companies has put my kids through college.”
In Vancouver, he is known as the “Millionaire Maker,” thanks to his 2nd venture.
For the second time in his life, he called the bottom on silver prices in the early 2000’s, founded First Majestic Silver, and turned it into the world’s purest silver miner!
While Warren Buffett and Ray Dalio have made fortunes for their clients, it would be impossible to enjoy their expertise in today’s world. For one, Dalio is semi-retired and doesn’t accept new clients, while Buffett’s company is already one of the largest in the world, so the upside potential is minimal.
Keith Neumeyer, on the other hand, just told me a few days ago that he is expecting this next bull market in gold and silver to be much bigger then the last one which lasted a full 10 years from 2002 – 2012.
His silver company made him a legend in the mining world, since he called the bottom on silver.
I asked Keith Neumeyer point blank if he cashed out of blockchain for now to turn his attention to a new investment opportunity. His reply was a classic, “Follow the Money.” So I did.
I looked at the public filings, and Mr. Neumeyer is currently buying into his 3rd company, the only one, which hasn’t gone parabolic yet.
You see, he is adding to his position, putting skin in the game, and I know why – shares are trading close to ALL-TIME LOWS!
Keith is again calling the bottom, and this time it’s on a piece of real estate in Ontario, Canada.
To give you an idea, the cost of each ounce of gold in the ground was $8, while today, a mere 36 months later, companies sell their portfolio for $70/$80 per ounce.
The Springpole project is one of the largest undeveloped gold properties in the world.
The company’s shares have never been cheaper!
Between Keith Neumeyer, Chairman, and Mr. Swinoga, the company’s CEO, the insiders are buying aggressively.
Check this out:
The company’s valuation is 350% lower than the industry’s average, but no other company has Keith Neumeyer as chairman.
Personally, I’m buying shares today with the idea that one to two years from now, the company will probably be trading closer to the average or possibly higher.
I’ve saved the best for last, though.
Keith emailed me this chart over the weekend with the following note: “I’ve been around the industry since 1984, when I was just starting out. Two things remain constant in the mining industry: (1) when companies are cheap, I BUY and wait, sometimes for months, but I know what is coming, so here it is. (2) Investments revert to the mean, so you do what you need to do; I’ll keep buying while the market hates gold.”
Here’s the chart:
The Springpole Project alone is worth FOUR times the company's Entire market cap!
I challenge you to find, in today’s world, a bigger anomaly.
That’s why I am breaking my own cardinal rule. In fact, my CPA told me that this could cost me a fortune if it doesn’t go my way.
Using leverage in anything simply intensifies an already chosen trajectory. In other words, on the upside, it delivers enormous gains, but on the downside, it can cost a fortune.
For nine years, I’ve been sitting on positions with 3M, Hormel Foods, AutoZone, and Johnston Controls. All four holdings are up over 300% since the Great Recession, and my broker has given me the green light to borrow against them.
Sir John Templeton, who became a billionaire by going in big when asset prices were at rock-bottom, has made it clear that we must be willing to do what others can’t or won’t.
When Templeton was 26, he borrowed $10,000 mostly from friends, a sum equivalent to $173,000 today, and bought European stocks in 1939 – the same year WW2 broke out.
Rick Rule, though, is the person, whose gut instincts have made him rich beyond belief. All the wealth he has ever created started between his two ears – nothing was inherited or achieved by pure luck.
He told me about a company he financed at $0.10. He was confident it would be a massive winner, and it dropped by 90%!
There are very few people on this planet, who would then lend this company more money at $0.01, but that’s precisely what he did. The stock then went from $0.01 to $10.00, and he was vindicated.
It takes guts, independent thinking, and an understanding of value to act on what you know is right, even when the market consensus votes it's wrong.
Shares of First Mining Gold have come back to their IPO level. They’re down from CAD$1.31 to CAD$0.44, a 66.5% shave in price.
Price alone isn’t enough to make me pull the trigger, though. Countless companies fall by 66% and are still expensive relative to their intrinsic value.
In this case, though, the peer comparison has made one thing evident: the current price is 71% lower than the average. Put differently, to revert to the mean, the shares would need to gain 344%.
Right now, First Mining Gold (TSX: FF & US: FFMGF) is getting butchered.
Though their tier-1 project, Springpole, is one of the largest undeveloped gold assets in the world, the GDXJ rebalancing a year ago and the exercised of low priced warrants have decimated weak hands to the point of desperation.
Take a look:
The Net Present Value (NPV) of Springpole alone is CAD$990M, while the total market cap is CAD$242M. In my letter to John Paulson, I suggested he make a bid for Springpole and spin it out to a stand-alone company so that he can showcase its value to shareholders easily.
In 5 years, according to management, the Springpole project could be in production!
I might be buying First Mining Gold (TSX: FF & US: FFMGF) using margin, but I’m locking in a price that could rival Rick Rule’s $0.01 bet, a decade ago, that turned out to be his biggest win.
This is a make or break moment, and my gut is telling me to suck it up, and put the bid in.
You see, First Mining Gold (TSX: FF & US: FFMGF) was designed, from inception, as a highly leveraged business for the gold sector.
The Bull Multiplier, put in place by Keith Neumeyer, is what separates this business from countless other cheap gold plays.
It is the key to achieving life-changing gains, right here, right now.
When I approached Keith and shared with him the term I coined, the “Bull Multiplier,” he looked me in the eyes and told me that this was his commercial trademark, essentially, but he had never heard it described this way.
I’m betting big, using margin, grossly breaking my diversification principles, and concentrating a massive position, the size of the GDP of small nations, in First Mining Finance. If I’m right, it will be the biggest winner of my career, by a wide margin.
Here’s how the Bull Multiplier works:
Most companies focus on a flagship project. Their one hope is that this asset will have economic value. As you know, there are hundreds of companies, which are risking incredible sums of shareholder funds on their individual project. It’s a huge risk to take, and in most cases, it ends up costing shareholders a fortune and never materializes.
Keith Neumeyer launched First Mining Gold with 17 projects; today he has four assets that are at world-class levels. In 2014, when other mining entrepreneurs were praying for the bear market to end, Keith and his team built a database of the world’s best 100 gold assets, sifted through them, and aggressively pursued the top 10 and acquired 6 of them for a valuation of only $8/ounce of gold!
Now, this massive portfolio is causing First Mining Gold to be conservative during the bear market, which is why shares came down hard, but that’s exactly why Keith himself is buying shares right now. He knows that in a bull market, the multiplier effect comes in, and he’ll be able to raise money and advance on projects simultaneously.
Four world-class assets, out of which Springpole is the most advanced and will likely become an operational mine in five years. This means it will likely be the fastest-growing gold company in history.
These are the numbers for Springpole. Call up the biggest miners in Canada and run these by them. They’ll immediately tell you that you’re looking at a cash cow like no other.
Most companies would leave it at that, but Keith put together a portfolio full of four assets, which were part of bidding wars in 2015 when he was able to tie them up.
Take a close look:
Goldlund is the company’s second world-class project.
The company’s CEO, who has cleared time this week for a recorded interview, has left no doubt in my mind that company funds will be invested in de-risking this asset this year.
Then, their portfolio holds three additional Tier-1 projects. All five are located in the most mining friendly regions of Canada, right next to some of the world’s most profitable active mines.
Examine this closely:
The Bull Multiplier is Keith Neumeyer’s commercial trademark. It has allowed him to build two world-class billion-dollar companies before. I was five years old when he built the first one. With the second one, First Majestic Silver, I have made money, but was just a teenager when shares began exploding.
This time around, I’m tying-up my financial results with Keith’s from the get-go.
This work is based on public filings, current events, interviews, corporate press releases and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
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