VGN.V - Greencastle Resources

[valueinvestor]

If you're familiar with Farmer's Edge or holding it - this is a similar idea but micro-cap.

Greencastle is a holding company with various natural resources interest, but more importantly 10M shares in Deveron.

Deveron is a "leading agriculture technology company focused on data acquisition and analysis that helps farmers reduce costs and increase yields."

Market Price: $0.16/Share

Marketable Securities Per Share: $0.18/Share

No Debt.

52 Week Low: $0.035

52 Week High: $0.26

You have a holding company owning ~16% of a grower that is acquiring strategically and operating North America wide. Additionally, the grower is perfectly positioned to obtain carbon credits, but not necessarily key to the thesis.

Granted at these levels, I would purchase Deveron directly, but one had a chance to purchase it at 50%+ discount to NAV. Hence, my posting of Greencastle. Don't know if this will be a amazing success, or a broken micro-cap stock, but thought I share.

[valueinvestor]

Deveron had 68% Organic Revenue Growth and 178% Overall Revenue Growth. 

Deveron stock up 2%.

Golden Lake Exporation up 4%.

Greencastle Resources down 13%. It's funny how the market works. 

[SoonParted]

A PFIC for US investors, I would think??

[valueinvestor]

Not sure what you mean? 

[SoonParted]

PFIC = Passive Foreign Investment Company.  It means a company that's not US-based, and gets most of its income from investments rather than from operating its own business(es).  You can look up the exact definition.  Anyway, there are nasty tax consequences for a US investor to own one.  (Maybe not bad if it's in an IRA, I'm not sure.)

[valueinvestor]

I should’ve been more clear. My mistake. 
 

I know what’s PFIC but I don’t think it’s dictating the price action today. Most of the major holders are Canadian and for reasons that you stated, there’s only a few, if any US investor.