Since 2020 the stock for marvel discovery is up almost 200%, and this is coming from doing nothing for almost three to four years. It started the year off at 0.04 dollars per share and is now trading at 0.16 dollars per share.
Normally when we see such a meteoric rise when the business hasn’t generated any sales, it can only be one of two things:
- Great Management or
- Great Projects
There’s nothing better than having a captain of the ship who also believes in the ability of the said ship. Most managers are there just to do their job, which doesn’t sound too bad. Obviously, as a corporate manager, that’s what you’re there for to do your job but the companies that do well over time are usually those that have a manager who is a founder, shareholder, a combination of the two. An example of this would be Amazon’s Jeff Bezos or Alibaba’s Jack Ma.
Then there is the third beast of a manager, those who are not the founder of the firm but are serial entrepreneurs. One of the most popular names today would be Elon Musk the CEO of Tesla. These managers are usually dedicated to finding business deals and allocating capital as best as they can with the goal of creating value over time. These sorts of individuals will forego short-term profits for future cashflows.
These managers do what is best to select the greatest projects that would generate those future cashflows and sometimes their ideas won’t work out, but the ones that do will be diamonds in the rough. Starting in early 2020 Marvel Discovery got a new CEO in Mr. Karim Rayani who brings with him 15 years of focused experience financing both domestic and international mineral exploration and development projects.
Marvel Discovery Corp.
The company primarily explores for copper, nickel, cobalt, vanadium, titanium, chromium, uranium, gold, PGE, and rare earth elements. It focuses on exploring projects located in British Columbia, Ontario, and Quebec, Canada. This diverse portfolio is part of their corporate culture, and you can assume marvel discovery is like an ETF ownership steak and many different small properties in the commodity space. although that is a mouthful this amount of corporate diversification allows their strategy to have the potential for massive gains as an asset play.
The Company’s long-term objectives will be to:
(a) Continue exploration and development work on its existing mineral properties.
(b) Determine if an economic mineral deposit exists on the mineral properties.
(c) Find one or more economic mineral deposits and bring them to commercial production.
(d) Acquire and evaluate additional complementary mineral properties to expand the Company’s portfolio; and
(e) Deliver a return on capitalization to shareholders.
List all their Projects
Here is a sample of some of the projects that they are in. It should be noted that most of these acquisitions were made before Mr Rayani took his new role as CEO. Since then, he’s continued the culture of the business and acquired more projects that will hopefully create shareholder value.
Ontario
- The Blackfly Gold Property
- East Bull Lake
- Camping Lake
Newfoundland
- Baie Verte
- Hope Brook
- Gander North
- Gander East
- Gander South Property
- Slip Gold
- Victoria Lake
Quebec
- Duhamel
British Columbia
- Wicheeda North
The Man behind it all and his resume: Karim Rayani
Marvel Discovery Corp. – President, Chief Executive Officer & Director (2020) – 8,009,500 (11.5%, value today= $1.28 million)
- Commodities Exploration
Falcon Gold Corp. – Chief Executive Officer & Director (2019) – 7,898,000 (7.92%, value today=$789,800)
- Commodities Exploration
R7 Capital Ventures Ltd – Chairman (2018)
- Venture Capital, Merchant Banking, and Corporate Advisory Services firm
District 1 Exploration Corp. – Chairman, President & Chief Executive Officer
- Provides mining services
What a resume! This experience and network allow your manager (if you are a shareholder) to leverage the firms’ resources to create future profitability as they buy high-quality assets. The big question now is does the CEO alone warrant such a high stock price, and can we discount how cyclical the industry is and how low the profit margins can get?
These questions cannot be answered in this short right up but should be analyzed further. The hope with Marvel Discovery is that the CEO and his team would be able to identify mispriced assets in the market and buy these at such discounted prices that you have a margin of safety if the project doesn’t yield the required return. Such an investment strategy is usually of high quality when the assets being purchased are diversified and bought at deeply discounted prices. Add to this a manager who has 15 years of experience in raising money in the commodity space and an ability to keep costs relatively low and what you have here is a formula for success.
