Hi JC!
It is pretty tough to get a handle on what looks like value right now, because there is still no clear direction in my mind whether we have a slow season to slog through, or if we will get a continuation of the raging bull market for the PM juniors through the spring. The last couple of years, I was buying quite a few stocks that looked very cheap at the time, but they corrected bigtime in the spring and it took many months before I saw green again. We have seen some pretty impressive gains in the sector over the last couple of months, so that just adds another level of rist to the picture if the momentum runs out.
I have no plans to do any selling, and will just hang in there if the floor drops out again. Been there, done that... But I do see some stocks that are compelling on both a fundamental and value basis. UC Resources is one that comes to mind (UC.V), because they are just commencing a drill program on a property that has shown some impressive early indications for a big deposit, yet the stock still trades at a very low multiple compared to other explorers in Mexico. I think the stock hit 26 cents today, and it looks to be breaking out. I bought 200,000 shares in the PP at 10 cents, but I will not be selling anytime soon. And for personal disclosure, I am friends with the senior management of that company, and they have paid for an ad on my website, and also paid me a small fee to write an article about the company for a magazine last year.
I also like AUN.V since they announced their acquisition of a past producing mine, and I am waiting to see if they are going to do a PP before I buy any at the current range. SOH.V also looks like a good solid buy at the current price too. I do not own either of those.
My gut tells me to keep buying and ride it out if we do see a strong correction, but I am also going to stick with companies that I think are very solid, so I do not end up without a chair if the music stops.
cheers!
COACH247 |
