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US Global Investors (symbol: GROW)


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GROW could be a big winner, if Gold stocks take off again.

 

Frank Holmes is one of the world's best managers of Gold & resource stock funds

 

GROW Details

U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also manages accounts for other pooled investment vehicles, individuals, and corporations. The firm manages family of equity and fixed income mutual funds for its clients. It invests in the public equity, fixed income, gold, and natural resources markets across the globe. The firm invests in growth and core stocks to make its equity investments. For its fixed income securities, the firm invests in short and intermediate municipal debt, and U.S. government money market. It was formerly known as United Services Advisors, Inc. U.S. Global Investors was founded...

 

Three months ended: 3/31/2008 : 3/31/2007

Revenue.......... $12,265,408 $12,444,362

Expenses........... 9,130,533 . 8,706,636

Tax expense........ 1,012,213 . 1,325,453

Net income......... 2,122,662 . 2,412,273

Earnings/ sh (basic) $ 0.14 . .. $ 0.16

Earns./ sh (diluted) $ 0.14 . .. $ 0.16

 

 

.RATIO : to RGLD chart......... : RATIO : to GLD

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GROW itself

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= = = = =

LINKS:

Corporate website. : http://www.us-global.com/

GROW's funds....... : http://www.us-global.com/fund/quarterlyreturns.asp

Profile BusinessWk : http://investing.businessweek.com/research...asp?symbol=GROW

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LOWER GOLD, and a disappoint earnings report announcement forced GROW down by $1,

and created an attractive buying opportunity. I bought in-the-money calls

 

U.S. Global Investors reports 3Q08 results

 

--------------------------------------------------------------------------------

 

SANTONIO–May 8, 2008–U.S. Global Investors, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, today reported results for the quarter ended March 31, 2008.

 

U.S. Global recorded $2.12 million in net income, or 14 cents per diluted share, on revenue of $12.26 million during the company’s third quarter of fiscal year 2008. The latest results compare to net income of $2.41 million, or 16 cents per diluted share, on revenue of $12.44 million during the same quarter in fiscal year 2007.

 

Average assets under management for SEC-registered funds and other clients were $5.50 billion for the latest quarter, up 14 percent from $4.83 billion for the quarter ended March 31, 2007.

 

The company has scheduled a webcast for 10 a.m. Central time on Friday, May 9, 2008, to discuss the company's key financial results for the quarter. Frank Holmes, CEO and chief investment officer, will be accompanied on the webcast by Susan McGee, president and general counsel, and Catherine Rademacher, chief financial officer. Registration for the webcast is available at www.usfunds.com.

 

“The past quarter was a difficult one for financial companies due to losses created by subprime issues and the credit crisis,” says Mr. Holmes. “You saw this with a number of asset managers, including one of the largest, which reported its first-ever quarterly loss.

 

“U.S. Global Investors has no investments in subprime or structured-finance products, but our funds were among those hurt when highly leveraged banks, brokerages and hedge funds were forced to sell good-quality investments because they had to raise cash quickly in this tight credit environment,” Mr. Holmes continues. “There’s a lot of worry about how the U.S. economy is performing, and that pessimism is so strong for many people that they are blinded to the strength of the broader global economy.”

 

Selected financial data (unaudited) for the three months...

 

Three months ended: 3/31/2008 : 3/31/2007

Revenue.......... $12,265,408 $12,444,362

Expenses........... 9,130,533 . 8,706,636

Tax expense........ 1,012,213 . 1,325,453

Net income......... 2,122,662 . 2,412,273

Earnings/ sh (basic) $ 0.14 . .. $ 0.16

Earns./ sh (diluted) $ 0.14 . .. $ 0.16

 

Avg. common shares outstanding (basic) 15,247,780 15,170,608

Avg. common shares outstanding (diluted) 15,275,900 15,250,360

 

Avg. assets under management $5.50 billion $4.83 billion

 

/see: http://www.usfunds.com/docs/press/viewpress.asp?recordid=120

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GROW's Resource Funds

============

 

Natural Resource Funds................ --Size-- Inception.. : Yr. t.d. : 1 Year : 5 Year : 10 Year

======================

UNWPX : World Precious Minerals.. $1.06bn 11/27/1985 : +1.18% 24.70% 38.60% 14.70%

USERX. : Gold and Precious Metals $275mn 07/01/1974 : +8.37% 32.72% 34.40% 14.63%

PSPFX.. : Global Resources Fund... $1.56bn 08/03/1983 : - 5.49% 28.38% 43.12% 18.63%

 

Grow's Three Resource Funds ... update

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Any of the above could be a good investment in the current market,

if I am right, and Junior miners are about to run.

In the past, the Resource funds HAVE LED jumps in GROW's share price

 

Compare: GROW with its resource funds : 5 years : xx

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Close-up comparison : Jan.2002 - Oct.2005

bigso1.gif

 

All their funds : http://www.us-global.com/fund/quarterlyreturns.asp

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I thought it was very astute of them not to be involved with sub prime or structured finance products.

 

In carrying out a bit of due diligence (with my limited knowledge) on their World Precious Minerals Fund (UNWPX), everything was ticking the right boxes until I was stopped in my tracks by this:

Each of the mutual funds referred to in the U.S. Global Investors, Inc. website may be offered only to persons in the United States. This website should not be considered a solicitation or offering of shares of the U.S. Global Investors, Inc. funds to investors who reside outside the United States.

 

http://www.usfunds.com/docs/prospectus/pro...?fund_tag=unwpx

 

Would I be correct in saying that means investors resident outside the US are required to buy units through a broker?

 

BTW DrBubb, thanks for the other ideas in the tracking junior miners thread re: PNP.t & EDV.t. I've got these on my "to look at list".

 

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I added to my growing GROW posituin yesterday, buying calls:

 

QGWIB CALL (QGW) US GLOBAL INVESTORS SEP 10 (100 SHS)

Paying $3.10 per option: i.e. $310 per call on 100 shares

 

I am trying to pick up $10 calls near a $13.00 breakeven point.

I could see the stock testing $12.00-12.50.

 

It closed at $12.75 yesterday after:

Open 12.93

Volume 137,377

Day High $13.0472

Day Low $12.61

Previous Close 12.87

 

That $12.61 level may have been low enough, if it drops further, I shall probably add more.

(Not necessarily that month's expiry.) If you buy, buy carefully. These options are not highly liquid,

and the bid/offer spread tends to be wide. So dont just "hit the offer" when the spread is wide.

 

 

 

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  • 2 weeks later...

Nice move in GROW !

 

Up to $13.25.

Anyone else get some?

== == ==

later:

$14.97 Change: +$1.98

Open: 13.00 High: 15.08 Low: 12.9552

Volume: 419,169 // Percent Change: +15.24%

 

I bought: Sept.$10 calls near $3.00, now worth $5.00+ that's a 65% gain in two weeks

 

Howzat ?

 

 

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Nice move in GROW !

 

Up to $13.25.

Anyone else get some?

== == ==

later:

$14.97 Change: +$1.98

Open: 13.00 High: 15.08 Low: 12.9552

Volume: 419,169 // Percent Change: +15.24%

 

I bought: Sept.$10 calls near $3.00, now worth $5.00+ that's a 65% gain in two weeks

 

Howzat ?

 

Yes, very nice.. Went long on them a week or two ago. I think when phase II of this crisis hits, we may see some more nice moves yet.. I've a feeling this is only the beginning! :)

 

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Yes, very nice.. Went long on them a week or two ago. I think when phase II of this crisis hits, we may see some more nice moves yet.. I've a feeling this is only the beginning! :)

 

Did you buy the shares or the calls?

 

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Did you buy the shares or the calls?

 

Bought shares.. Don't really have any experience of trading options, although I've been meaning to look into it for some time. But so far, I've been more of a long term buy and hold kinda guy..

 

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  • 2 weeks later...
Still got a position in this Dr Bubb?

We've seen some more nice moves in the last couple of days..

 

The $10 Calls (bought for near $3) Hit $6.40 yesterday.

I am dutifully selling about half, and looking for the next big potential gainer

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  • 2 weeks later...

another good day

18.22 Change: +1.10

Percent Change: +6.43%

 

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  • 4 months later...

Dr B these have had a dire time of late and their recent quarterly results showed a substancial loss. I'm just interested as to whether these might be a turnaround play again or is there more doom to follow?

 

Assuming you are still folowing them?

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  • 1 month later...

Q1-2009 REPORT

 

In addition, U.S. Global announced that it ended its investment advisory relationship with Endeavour Financial Corp. effective November 6, 2008. “Endeavour Financial has evolved with last year’s merger with Endeavour Mining Capital Corp. to create a merchant bank that can now manage its investments in the natural resources sector and, as a result, it no longer needs our expertise in this area. It has been a great experience working with this creative group,” says Mr. Holmes, who has also resigned his position as chairman of Endeavour Financial.

 

In the first quarter of fiscal 2009, U.S. Global recorded a net loss of $1.85 million, or 12 cents per diluted share, on revenue of $8.85 million. This compares to net income of $2.41 million, or 16 cents per diluted share, on revenue of $12.95 million in the corresponding quarter in fiscal year 2008.

 

The company had one-time expenses of $3.57 million related to a fund shareholder election to, among other things, merge the company’s two investment trusts, update the fee structure of several funds, add performance fees to the equity funds, and implement a distribution plan for the funds intended to grow the assets under management. All changes resulting from the fund shareholder election were effective October 1, 2008.

 

Excluding the one-time expenses related to the fund shareholder election, U.S. Global earned $510,537, or 3 cents per diluted share, in the quarter ended September 30, 2008.

 

“The expenses that we incurred to conduct the special shareholder election were substantial in the short term, but in the longer term, the items approved by fund shareholders stand to have a significant positive impact on U.S. Global’s revenue and profitability when assets rise from the current levels,” says Mr. Holmes. “Our fee structure is now better aligned with fund performance and our results-oriented investment culture. We also should be able to generate the cash flow to grow and modernize our operations, and to hire top-caliber intellectual capital.

 

http://www.usfunds.com/docs/press/viewpress.asp?recordid=130

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