Crescat Portfolio Management LLC, a significant shareholder in Timberline Resources Corp (OTCMKTS:TLRS), has recently made a substantial investment in the company's common stock. On August 31, 2023, Crescat Portfolio Management purchased Timberline Resources shares worth $200,000 at a unit price of $0.05.
This investment by Crescat Portfolio Management reflects a notable addition to their holdings in Timberline Resources, a company that specializes in gold and silver ores and is incorporated in Delaware. The transactions were made through various funds managed by Crescat, including Crescat Institutional Macro Master Fund Ltd., Crescat Global Macro Master Fund Ltd., Crescat Long/Short Master Fund Ltd., Crescat Precious Metals Master Fund Ltd., and Crescat Institutional Commodity Master Fund Ltd.
The reported transactions indicate that Crescat Portfolio Management has confidence in Timberline Resources' potential, as it has increased its stake across several funds. The $0.05 unit price for the stock purchase included one share of common stock and one-half of one warrant, with each whole warrant exercisable for the purchase of an additional share of common stock at a later date.
In addition to the stock acquisition, Crescat Portfolio Management also engaged in the purchase of derivative securities, specifically warrants, for a total of $160,000 at a conversion or exercise price of $0.08. These warrants grant the holder the right to purchase additional shares of Timberline Resources at a predetermined price and are exercisable until August 30, 2026.
The recent filing with the SEC confirms the total shares acquired and the increased ownership stake by Crescat Portfolio Management in Timberline Resources. The transactions were signed off by Kevin Smith, a director at Crescat, on March 15, 2024.
InvestingPro Insights
Timberline Resources Corp (OTCMKTS:TLRS), while drawing interest from Crescat Portfolio Management with its recent stock purchase, presents a mixed financial landscape as per InvestingPro's real-time data and analysis. The company's market capitalization stands at a modest $7.85 million USD, reflecting the small size of the enterprise within the gold and silver ores sector. Despite this, Timberline Resources holds a significant advantage with more cash than debt on its balance sheet, an InvestingPro Tip that indicates a level of financial stability.
On the flip side, the company's performance metrics highlight some challenges. Timberline Resources is not profitable over the last twelve months, and its stock price has declined significantly, with a 1-year price total return of -56.28%. This is consistent with the trend of the stock underperforming over the past decade. The P/E Ratio, adjusted for the last twelve months as of Q1 2024, is negative at -4.96, further underscoring the company's lack of profitability in the recent period. Additionally, the company's liquid assets exceed its short-term obligations, which is a positive sign of liquidity and an important InvestingPro Tip for potential investors.
Investors considering Timberline Resources should be aware of the company's volatility, as indicated by a 1-week price total return of -1.72% and a 1-month price total return of -12.28%. This volatility, paired with the lack of dividend payments to shareholders, may influence investment decisions.
For those looking to delve deeper into Timberline Resources' financial health and future prospects, InvestingPro offers additional insights. With more in-depth analysis available, including a total of 7 InvestingPro Tips for TLRS, investors can make more informed decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to these valuable tips.
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