8/3/10: For over a quarter of a century, Heartland has been focused on fundamental research. We "pound the pavement," traveling tens of thousands of miles each year in America and around the globe visiting with companies. Our mission is to find businesses priced at attractive valuations with experienced and passionate management teams which can provide potential capital appreciation for the Value Fund.
In our view, on site research with extensive diligence is the best method to achieve this goal. Recently our research team met with U.S. Silver Corp (USSIF). Based in Wallace, Idaho, the heart of the country's silver district, U.S. Silver produced about 6% of America's 2009 silver output. Check out the pictures of our visit when we went nearly a mile down in a mine with CEO Tom Parker and the mine supervisor.
5/27/10: Sovereign debt levels in Europe and the U.S. have created a great deal of uncertainty regarding the value of Euro and the U.S. dollars. With that in mind we have endeavored to gain exposure in the Value Fund to the strength we perceive in gold and silver prices. As gold and silver prices gain in value, the revenues of companies mining those commodities also tends to increase. Taking advantage of this, the Value Fund owns shares in a small, Idaho based mining company named U.S Silver Corp (USSIF).
U.S. Silver Corp. recently released their audited 2009 results. These results show that the company has been benefiting from improved operations and strong silver prices. Having reported the highest level of net income in company history, we believe the company is well positioned to achieve success again in 2010. U.S. Silver Corp. produced over 2.4 million ounces of silver in 2009. With production expected to increase in 2010, U.S. Silver Corp’s net income is highly levered to the price of silver. Trading at just 10 times earnings, we believe U.S. Silver Corp. is undervalued.
As of 3/31/10 and 6/30/10, U.S. Silver Corp. (USSIF) was 0.25% and 0.34% of the Value Fund's total net assets, respectively.
Price/Earnings Ratio of a stock is calculated by dividing the current price of the stock by its trailing 12 months' earnings per share.
Portfolio holdings and manager views are subject to change without notice, and discussions of portfolio holdings are intended as illustrations of investment strategy, not as recommendations.
The Value Fund invests primarily in small companies selected on a value basis. Such securities generally are more volatile and less liquid than those of larger companies and there is risk that their intrinsic values may not be recognized by the broad market.