The Greatest Gold Stock in the World
September 26, 2011
– Comments (23)
I haven't experienced a moment of true concern in the precious metals market since my first correction in 2006. By the time the 2008 correction came around, I had acquired a strength of conviction egarding the longer-term trend that empowered me to watch with almost detached fascination as my portfolio took a previously unimagineable hit. That conviction came from trusting in my constantly tweaked read of the macroeconomic landscape, and in that pursuit I have never waivered. This correction finds me watching with a similar sense of fascination, but not a single shred of concern. My sole point of self-recrimination is that I did not retain a larger cash allocation before this fall, thereby essentially committing the same mistake I made in 2008 and sought not to repeat. The good news for my fellow Fools is that, since I am essentially now all-in, I am not likely to be hindered in my coverage by conflicts with investment activity. Often during selloffs I am unable to comment on some of the best-looking buys because I may be buying shares myself. This time around, I'll be able to focus on you and where you all can best be looking to find opportunity in the midst of this near-term weakness.
Along those very lines, I offer to you:
The Greatest Gold Stock in the World (Part 1)
and
The Greatest Gold Stock in the World, Part 2
If I had been wise enough to retain additional cash on the sidelines to take advantage full advantage of this selloff, I would be buying shares of Primero Mining hand over fist beneath $2.50. I encourage you to read the two-part series above, and share your thoughts on the company's prospects and the valuation below.
In just an abbreviated, off-the-cuff fashion, here are some other tickers that have been catching my eye recently as extreme bargains in the midst of this selloff. I will list tickers without much explanation, and leave it to you all to take responsibility for determining relative risk between different types of vehicles at various stages of development, etc., etc. There are many, but these stand out as being particularly alluring (in no particular order):
PPP (pole position: see above)
CDY (best value outside of pm sector)
TGB (they are beautifully hedged against this copper decline)
BRD (I doubled down at $1.47, and frankly never thought I'd see the level again)
AUQ (I mean, come on! Under $10?)
CPFXF (practically a 2nd chance for those who missed it the first time)
PLGTF (The market has seriously dissed the Fronteer Gold gang, and ignored Haligaga!)
SGSVF (One of my all-time best performers, back down to earth for a second voyage)
+ Most of the copper (esp QADMF, HBM, SCCO) and coal stocks (esp. PCX, ANR, BTU, YZC). Seriously, these entire sectors are WAY oversold IMO. Further intervention and stimulus will seal the deal.
I hope many of you still have some cash on the sidelines to play with. IIt wiull be fun to live vicariously through your subsequent moves to ease my pain about having left myself with insufficint cash (again!). :)
Good luck to all!
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