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04/28/2012
Ramblings

There are at least 50 mining stocks that are solid potential 5 baggers. That's the good news. That bad news is that we likely aren't at the bottom, so any stock you buy is probably a falling knife.

Seafield Resources had an excellent PEA this week and the stock went down! Incredible. It's trading at 15 cents.

Argentex was down to .27 cents and I was ready to pounce, then Bob Moriarty published an article on Monday and it ended the week at .40 cents. Thanks, Bob.

Levon Resources was down to .46 cents and popped to .56 cents this week. I still think it is a steal, but it will probably go a lot lower.

Xtierra is at 15 cents and has a nice project heading to production if they can get financing.

Global Minerals is at .45 cents and has a nice project heading to production if they can get financing.

Northern Freegold is at .15 cents and keeps increasing their resource.

The list goes on and on. These stocks are all trading at valuations that are incredibly cheap. Investors have thrown mining stocks in the dumper and like I said, I don't think we have seen the bottom.

The smart thing to do is probably to take a position in SIL and GDXJ and then wait and see what happens. If SIL goes from $21 to $18, then buy some more. If GDXJ goes from $21 to $18, then buy some more. Both are likely heading to $80. You will likely get a 3 bagger and the risk is pretty low, unless mining stocks stay in the dumper and gold prices drop -- not something I'm expecting.

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