by Dave Kranzler, Investment Research Dynamics:
That is an impossible question to answer with any degree of conviction because the extreme degree to which the precious metals market is manipulated. I think now is a good spot to add to positions or start new positions. As an example, in my latest issue of the Mining Stock Journal, I recommended a high quality junior that had almost pulled back to its 200 dma. I said I was buying it for what I thought would be a “low risk” 25-40% bounce if the pullback cycle in the sector is over. That stock bounced 7% today.
A good way to protect yourself somewhat is to find high quality junior mining companies that are exceedingly cheap to their underlying “intrinsic” value. I presented a company in the latest MSJ issue that, despite a big move already, has the potential to be a 5-bagger from here. Insiders control 44% and put in millions of their own money over the last 5 years to keep the Company going. This Company is on its way to becoming very significant mining company.
Today I sent around to subscribers an update of a stock previously presented because the Company announced an acquisition of an existing operational mine and is paying roughly $20/oz for proved gold in the ground. This company is “off the radar screen” but Goldcorp just paid over $100/oz in the ground for Kaminak. This acquisition will be the catalyst that enables management to build a 200-250k oz gold producing operation by 2019. It’s market cap is mining-stock-journal-bannerwell under $100 million. Companies that produce 200-250k ozs/year trade in the $200 million to $400 million market cap range. You do the math on this Company
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