U.S. Global Investors, Inc. (NASDAQ:GROW)

CAPS Rating: 5 out of 5

The Company serves as an investment adviser and transfer agent to USGIF and USGAF, both Massachusetts business trusts that are no-load, open-end investment companies offering shares in numerous mutual funds to the investing public.

Recs

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Player Avatar WPThatcher (32.49) Submitted: 10/6/2010 10:27:40 AM : Outperform Start Price: $7.11 GROW Score: -19.52

U.S. Global Investors is a small cap asset manager that has 13 mutual funds: gold, natural resources, emerging markets and global infrastructure. Like CEO Frank Holmes, I'm a China, commodities, emerging markets, and infrastructure bull. While their core competency are investing in gold and natural resources, in recent years, they've launched muni and treasury funds. I think this should help smooth out earnings during the inevitable corrections in the commodities and emerging markets. I like buying money managers after AUM has fallen, if I see reasons for a turnaround. What reasons do I see? I think the commodities boom will resume within the next few months. Also, this company has been sold off recent months as it was deleted by the Russell 2000. I think that firestorm has died down significantly. At its peak in 2007, this stock was trading at $35 a share. I have no idea if it will resume those heights, but think that around $7 and some change is an attractive entry point. In the meantime, I've getting 3.5% while I wait.

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