Monday, 16 January 2012

Gold and Silver Juniors Newsletter Picks

Having read several newsletter writers I wonder how many others here find their picks and advice difficult to trade?

Clearly the most popular newsletter writers find it difficult to recommend the microcap stocks which deliver the most stunning returns, as high volumes of purchasing can distort the stock price, and as that purchasing subsides the stock price can crash leaving very disappointed subscribers.

So the typical subscriber, unless a committed day-trader, is left

a) Chasing higher prices

b) Feeling to have missed out for their subscription payment as prices got away from them
c) Buying later when share price falls back after the day traders have taken profits and bullboards etc have probably already revealed the reason for the price surge, so was the subscription worth it?

I noticed that a new service the "Greedy Guru" has started which will aggregate and select from many newsletter writer picks, which I can't imagine the newsletter writers will be too happy about.

Perhaps here we can identify our own picks.
Really good stories will build and develop over time, we can get in a little late, or very early if the people look right.
Then we have to decide when and how to scale out....

Key directions

1) Well regarded people and projects
2) Good Investors taking an interest
3) Financings and placements
4) We want promotion, but beware of it.


1) New companies generating excitement
2) New discovery
3) Expanding discoveries
4) Near Production start up - the second valuation increase in the cycle - See Brent Cook discussing the lifecycle and investing cycle of junior exploration and mining.
5) Takeover candidates - Rick Rule keeps discussing his expectations of much more takeover activity. Somewhere there will be a sweet spot for established producers where their valuations have increased with profitability following high gold prices but the juniors are still high risk relatively low cost assets. At that point we must expect them to pay for ounces in the ground in good jurisdictions. District scale deposits or incremental volume to add to their current operation centres.

Who are they?

JUNIOR GOLD STOCK NEWSLETTER PICKS is a page on the blog to track and update, with a tracking spreadsheet.

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