Stumbled upon another lottery ticket for your consideration last night. Lots of ground and activity in the Timmins Camp. DYODD!!
Eric O's Favorite Gold Miners
I think you will find owning the long-term (that's important) warrants associated with 4 of the companies mentioned in the article are a better buy than owning the actual stock. I have written many articles on the subject (I seem to be the only one doing so) over the past 7/8 years. I have developed 2 proprietary indexes - the Gold and Silver Warrants index (GSWI) and the broader Commodity-related Company Warrants Index (CCWI). You can get all the details here:
1. The “Secret” World of Gold & Silver Company Warrants http://www.munknee.com/2011/05/the-secret-world-of-gold-silver-company-warrants/
2. Gold & Silver Warrants Index (GSWI) Update http://www.munknee.com/2011/06/gold-silver-warrants-index-gswi-update/
3. Buying Gold & Silver Company Warrants is Easy & Profitable – Here’s How (and Why!) http://www.munknee.com/2011/06/buying-gold-silver-company-warrants-is-easy-profitable-%e2%80%93-here%e2%80%99s-how-and-why/
Enjoy and profit.
Today’s news of a pending sale of a large block of TMM shares should remove a little gray cloud that has hung over the stock. It also will mover some 25 million shares from a holder who had it from under $1 and was sitting on some nice profits to a more likely holder(s) at current levels who would be less likely to be a seller anytime soon.
TMM had also been held back by an attempted takeover and its many other corporate successes were not being fully reflected in its share price because of this.
The stock has been building a new base in 2011 and with the sale of these shares we could see a move to a level I think is more worthy of their many accomplishments in the $4 – $5 area before years-end.
Thanks Eric for the Chesapeake Gold research, I think I am with you on this one, I am staying away.
But I really like GGA-Goldgroup Mining-also in Mexico.
They have a 150 million market cap, with 35 million in cash and 0 debt. They just announced production for sometime in 2012, and have a forecast of 200,000 oz in 3 three years.
They have 4 projects, near 1 million ozs, and have a JV with Goldcorp in one project. They are also calling for low production costs, in the 400oz range.
I have a small position and I am thinking of adding, seems like a gift a these levels, am I missing something?
Also, why are you selling shares in some of your small cap holdings, I say just ride it until these penny and 1 dollar stocks hit some serious numbers, trading them will drive one insane.
Buy some Sandstorm Eric and then you won't mind so much. On the other hand if SSL likes Metanor then thats's a good thing.
I bought some Vantex after I found out that McEwen was a large holder, shares have been disappointing so far, I think I will just ride out this lottery ticket for now, who knows, some day this could turn into an investment!!!
That was the DailyWealth headline on June 15. I recommended buying shares of GDX – a basket of big gold-producing companies.
I hope you took my advice…
On the day that issue of DailyWealth was published, gold stocks hit their lowest level of 2011. Since then, gold stocks (as measured by GDX) are up 10%.
But you haven't missed it yet, at all…
Your upside potential is still huge. In today's DailyWealth, I'll show you a way that you could potentially make much more than 100% gains, relatively safely, in gold stocks…
Let me explain…
Last month, I wrote that the last two times gold stocks were this cheap, they doubled within eight months. Here's the chart from June 15:
To measure whether gold stocks are cheap or expensive, I rely on John Doody's excellent gold-stock value indicator in his Gold Stock Analyst newsletter.
The latest issue of Doody's letter just came out, and gold stocks are cheaper today than they were in his last issue, according to his value indicator.
With such extraordinary value in gold stocks right now, I want to share an idea I wouldn't normally write about here…
Under normal circumstances, this investment idea would be too risky… it would be much more volatile than I'd usually recommend.
But this is not a normal circumstance. Gold stocks are cheap. It's time to step up and take some risk.
Here's what you need to know… historically, gold stocks are about twice as volatile as the price of gold… When gold goes up 10%, gold stocks go up 20%, and vice versa. Because of this, gold stocks typically give you some leverage with the price of gold in a gold bull market.
This relationship hasn't held up lately… but I expect it to return.
GDX is a safe way to buy a basket of the big gold companies. But there is a leveraged way to play GDX – its symbol is NUGT (like "nugget").
NUGT is a double-long fund. For every 1% gain in GDX, NUGT should go up 2%.
At this point, NUGT is still pretty small… But it's an exchange-traded fund (ETF), so it can create shares as needed. The fact that this ETF is small means that "gold fever" has not at all translated into "gold stock fever" – yet.
Gold stocks are super-cheap relative to the price of gold. Two things can correct this… Either gold stocks soar, or the price of gold falls dramatically. Your risk in this trade is a big fall in the price of gold.
The last two times gold stocks were as cheap as they were on June 15, they doubled in eight months. It looks like it's happening again, with gold stocks up 10% in just three weeks… and nobody paying attention.
Buy gold stocks today, if you don't already own them. The more conservative way to do it is through GDX. If you're willing to take on some risk and volatility, consider shares of NUGT.
Interesting. Some thing i came across, i have NO shares in it!