Before investing in any stock please do your own due diligence beginning with a visit to the company’s website. Also a minimum requirement is to read some of the most recent MD&A reports found on the Sedar or the SEC websites.
I have not made any changes to my portfolio in the past two weeks but am close I will get into below.
I am close to buying back into some of the majors as soon as this consolidation is over.
As soon as the downtrend is broken to the upside I am buying more. I think it could be any day since it has already touched the support line.
One of my favourite SEO Shawn Boyd today was on CNBC for an interview just after the plane crash in the bay. Needless to say his interview was cut short. Such is life. I am waiting eagerly to get a full weighting back in this stock. I could see it fall to 40 but won’t wait if things turn up abruptly in this stock and the HUI and XAU and metals.
I will be watching the action in the two indexes HUI and XAU also for signals to enter the market again. I have drawn in simple downtrends and support lines where we can expect some support.
I always must say physical gold and/or silver must be the basis of a strong solid and safe portfolio. My physical consists of roughly 20%, after adding more funds, of my total portfolio and within it is approximately 70% silver and 30% gold. I am trying to get some more physical gold and silver to bring the percentage back up to 30% to 35%. Once I feel the weakness in gold and silver is nearing the end I will secure the rest.
As hard as it is to come by silver these days, and increasingly gold, the next best to physical is goldmoney. You can redeem for cash in any major currency or if the situation presents itself, you can also have the physical metal delivered to you worldwide. (I have no financial affiliation or receive no benefit from Goldmoney) In this way it is better than physical since storage issues do not apply, nor do reselling hassles. In case of emergency I have some physical on my person but the bulk is stored away from my home.
A strategy I have nearly always employed and which has worked very well is to take my original capital out after a 100% gain leaving me with 50% essentially for free and freeing up capital for other investments. I urge you to consider such a strategy. This was and is my goal right now with larger companies. When I see fit I will attempt the same in the small producer sector.
The above mentioned shares will be repurchased on substantial weakness which may or may not come.
1. Northern Dynasty: Luckily many shares are long held and I am not in the red as much as many. They are still a great company with no need for cash and oh by the way, they are close to defining the largest Copper, Gold, Moly deposit EVER found on this earth. Also the recent pro-mining decision in Alaska solidified their path to production. They have recently reported that their team is now fully in place and permitting will beginning soon. Their most recent Dec 4, 2008 news release does nothing but strengthens my belief and resolve in this company.
2. ECU Silver: The Company is discovering more silver than was ever imagined. Keep your eye on this one, it may in the end add up to the largest silver discovery ever in Mexico. They recently entered into an agreement where they sell concentrate in conjunction with other small producers which ensure a larger volume delivered to refiners in turn given ECU a better price than they could otherwise achieve on their concentrate. The December 10, 2008 news release is a testament to the success they continue to encounter.
3. Minefinders: If you are looking for a producer then this is the company.
Minefinders just released good production results on January 13th and you can read the release on their site here
http://www.minefinders.com/news/2009/index.php?&content_id=108 . Things are going well and on track and on schedule. This company will do very well in 2009 and beyond.
4. Eastmain Resources: This Company is growing ounces like apples on trees in the fall. It’s a must look into with their major support and proven resource. The recent results are spectacular and continue to prove this company will survive and prosper through the rough times. Highlights include 17.99 g/t Au (0.53 ounces) over 4.7 metres in hole ER08-136, 13.76 g/t Au (0.40 ounces) over 2.5 metres in hole ER08-137, 9.93 g/t Au (0.29 ounces) across 5.5 metres in hole ER08-155 and 15.02 g/t Au (0.44 ounces) in hole ER08-172
5. Silver Wheaton: This company stock WILL BE over $100 by the end of this bull market. I don’t say that about many stocks with 100% confidence but this one makes me giddy! SLW was upgraded to a buy at UBS recently and still represents good value, but you could have picked it up for over 50% less just a couple months ago. Where was UBS for the first 100% move? Probably buying the stock!
6. Golden Star: The decline is unwarranted and while not the best producing company around, they are pretty good and at this level a true steal. That’s why I like them, all things considered they are a cheap, cheap stock with a huge amount of potential upside.
7. Coeur D’Alene: Much the same comment as above. I am also watching closely their peer Hecla. If they can come down some more I will be adding that company to my portfolio without a doubt.
8. Axmin: Although all their properties are on care and maintenance until this hard time passes and a property is under review by local officials I think they can come out on top soon. This is a great price for a longer term investment.
9. Kimber Resources: Another steal of a deal which has been taken down to unrealistic low levels on low volume. But it can come down more so be careful, although it is nearing its recent lows making this stock very attractive. The company also successfully closed a $5 million financing with strong and wealthy hands. This company has some real and strong backers who want to see it through.
10. Exmin Resources: Nothing has gotten worse for this company...except the share price! The dichotomy in this and so many others is nearing the end, but patience and conviction is a must. This great company also finalized two joint ventures and
completed a $1 million financing recently. Securing financing in today’s market signals a strong company with strong prospects and backers.
11. Esperanza Silver: Great company, great management, great projects, and the share price is approaching attractive levels once again, but not quite yet. In the $0.40 range would be a true steal. They recently released an indicated and inferred resource of around 1 million ounces which puts them squarely in the sights as a takeover
candidate. A bit more definition drilling and they will have a proven large resource. Hopefully the price can come back up some more before any takeover emerges. 12. Tanzanian Royalty: I have added recently to this great company run by everyone’s friend Mr. Jim Sinclair. He assures me that everything is on track. Mr. Sinclair has recently injected more cash into the company at very attractive terms for the company. He is the ultimate backer and has just injected more cash into the company. This is a real winner that does everything right.
13. Soho resources: I love the management and company, but I do regret not selling this one. I still see a lot of upside, but I am not as bullish as when I first considered this stock. I am not adding or decreasing just waiting for a higher price, at which time I will reassess the situation. Lack of cash is the major issue they have but a recent financing of $1 million gives me hope.
14. Tyhee Development: You wouldn’t know it but they keep coming out with great results. I am happy and comfortable with my weighting and see no need to change it either way for now. They recently closed a nearly half million dollar financing so that shows strength.
15. Silver Dragon: This is one of my favourite companies. They have exceptional properties and management and backing. I am strongly bullish and have added some and am looking to add more but low volume is making it difficult still. They basically have the go ahead for their Chinese properties which will the companies crown jewels. 16. Melkior Resources: I am expecting good things from this well run Exploration Company working in elephant country. The company is dirt cheap and the dirt they are exploring is full of minerals. Their news release yesterday was very positive; The best intersections from this set of assays were from TW-08-10-35 which returned 5.63 g/t gold over 1.80 m and TW-08-10-36 which returned 7.18 g/t gold over 1.30 m. Melkior's previous news release contained the highest assay of the 2008 drill program where TW-08-10-13 contained intersections returning 60.27 g/t gold over 1.8 m; and 8.12 g/t gold over 2.45 m. Seven holes remain to be assayed.
17. J-Pacific Gold: I love this company. Although things are quiet these days I expect good news soon. I will be in contact with the company this month and provide and update in my next issue.
18. Pacific Northwest Capital: They just keep plugging along and working towards discovery with their joint venture partners. I like the prospects a lot but am not looking to add to my position. I am content to watch it grow.
19. Samex: Continuing great exploration in elephant country. I am holding strong and not looking to add or decrease my holding. I need to see some more results come out first and their December 23, 2008 news release was one step in the right direction. I urge you to at least visit their website and view some of the photos on their homepage and beyond.
20. ATW: The January 8th news release highlights 16 m of 9.79 g/t gold which is excellent over much shorter lengths let alone almost 50 feet. I am seriously considering adding to this position on weakness.
21. Timmins Gold: I am confident in this company’s prospects going forward but am not adding or decreasing. The recent release and highlight of 11.64 g/t gold across 2 meters, 6.17 g/t gold across 3 meters, and 4.43 g/t gold across 4 meters in separate drill holes at Tequila Project reinforces my belief in this company.
Exeter Resources: Still holding. Great results have come out recently including; Drilling results include 372.0 meters (1,220.2 feet) at a grade of 0.85 grams per tonne gold (0.025 ounces per ton) and 0.47% copper, in drill hole CSD028. The deposit remains open to the south, northwest and at depth. New results include: CSD028, drilled to test the southwestern limits of
mineralization, which intersected: 862.1 metres (“m”) (2,827.7 feet (“ft”)) at a grade of 0.54 grams per tonne (“g/t”) gold (0.016 ounces per ton (“oz/ton”)) and 0.29% copper, from a
depth of 208.0 m (682.2 ft), to the bottom of the hole, in the primary gold-copper zone, including, 372.0 m (1,220.2 ft) at a grade of 0.85 g/t gold (0.025 oz/ton) and 0.47% copper, from a down hole depth of 600.0 m (1,968.0 ft), and CSD029, drilled to test the northeastern limits of mineralization, which intersected: 72.0 m (236.2 ft) at a grade of 0.52 g/t gold (0.015 oz/ton), from a down hole depth of 66.0 m (216.5 ft) to 138.0 m (452.6 ft) in the oxide (gold only) zone followed by 581.1 m (1,906.0 ft) at a grade of 0.50 g/t gold (0.015 oz/ton) and 0.19% copper, from a down hole depth of 138.0 m (452.6 ft) to the bottom of the hole, in the primary gold-copper zone.
22. Nautilus Minerals: I have added to this company and would like to add a bit more on weakness. It has been and still is one of my favourites. I recommend listening to a webcast found on their site. The business model is great and the companies backing them are the big boys. In their presentations they liken the company to the first offshore driller for oil. It could be a major home run to say the least.
23. Silvercorp: This is a great company I have been eying for a while. For a complete rundown on the company I suggest going to their website but even more importantly going to http://www.financialsense.com/fsn/main.html and listening to the second hour of the September 20th radio program where Jim Puplava interview Lorne Waldman. It is a great interview and rundown of the company. I have bought back and added to my position.
24. Hi-Ho Silver: I am staying put on this one. It is a good stock in a great historic silver region. They have acquired quite a substantial land package and I am awaiting further exploration updates. They recently received a $100,000 financing and must be prudent with the cash. I will keep this holding very small for the foreseeable future.
25. American Creek: The country they are working in is a proven huge but relatively unexplored region. Seabridge and Silver Standard are neighbours and delineating huge deposits. The progress has been slow but I remain a believer. I am going to add to my position now but volume is low so I may not be able to without moving the stock. Keep an eye on this one.
26. Maudore Minerals: This stock has held up very well because of the small share float. They just closed a $1 million financing and are on track with their superb deposit. 27. Linux Gold: This is a very speculative stock and I will remain a small shareholder until I
see more results. I haven’t heard anything lately and am getting in contact with them shortly and will provide a further update in the near future.
28. Euromax: I have doubled my holding to 2%. They have real and large deposits and are well financed by European backers who are not interested in shorting the stock for profit.
29. Sinchao Metals: I have doubled my holdings to 2% around $0.05 and have doubled my money already. This is one stock I am breaking my rule for. It is still so cheap that I will not be selling any until I see gains of at least 400% to 500%. It will happen. Sinchao Metals Intersected 279 Metres Grading 0.60% Copper which continues to show excellent growth potential.
30. Silverado Gold: This is a very speculative stock and I will remain a small shareholder until I see more results.
Rank Company Name US Symbol Canadian Symbol Percentage Holding 1 Silver Wheaton SLW SLW 7% 2 Minefinders Corporation MFN MFL 6% 3 Northern Dynasty Minerals NAK NDM 5%
4 ECU ECUXF ECU 5%
5 Tanzanian
Royalty TRE TNX 5%
6 Yamana AUY YRI 4%
7 Nautilus
Minerals Inc. NUS NUS 4%
8 Silvercorp SVM 4% 9 Kinross KGC K 3% 10 Royal Gold RGLD RGL 3% 11 Goldcorp GG G 3% 12 Tyhee Development Corp. TYHJF TDC 3% 13 Eastmain
Resources Inc. EANRF ER 3%
14 Silver Dragon
Resources Inc. SDRG 3%
15 Esperanza
Silver Corp. ESPZF EPZ 3%
16 Golden Star
Resources LTD. GSS GSC 3%
17 Agnico Eagle AEM AEM 2%
19 Kimber
Resources KBX KBR 2%
20 Exmin
Resources EXMFF EXM 2%
21 Coeur D'Alene
Mines Corp. CDE CDM 2%
22 Pacific North West Capital Corp. PAWEF PFN 2% 23 J-Pacific Gold JPNJF JPN 2% 24 Melkior
Resources Inc. MKRIF MKR 2%
25 Euromax EOX 2%
26 Soho
Resources SHRJF SOH 1%
27 ATW Venture
Corp. ATWVF ATW 1%
28 Timmins Gold TMGOF TMM 1%
29 ATW Venture
Corp. ATWVF ATW 1%
30 Timmins Gold TMGOF TMM 1%
31 Samex Mining Corp. SMXMF SXG 1% 32 Exeter Resources Corp. XRA XRC 1% 33 American Creek Resources ACKRF AMK 1% 34 Maudore Minerals Ltd. MAO < 1% 35 Linux Gold Corporation LNXGF < 1% 36 Sinchao Metals SMZ 2% 37 Hi Ho Silver Resources Inc. HHSRF HHS <1% 38 Silverado Gold Mines SLGLF < 1% CASH 22% TOTAL 101%
