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05/15/2012
Ramblings

HUI down to 390.
GDXJ: $19.40
SIL: $17.80

We are very close to the bottom. I thought we would see $28 silver and $18 SIL. It's here. Now we are moving to the bottom. It's hard to say what it will be, but I think the low $20's in silver is possible. This is 2008 all over again, although not quite as bloody -- yet.

Many juniors were down 90% in 2008, today they are down 70%, with the goods one down 50%. It's opportunity time. I thought we would get one more chance to get some really cheap stocks, and that chance is now (or perhaps in a few months). Sometime this year, gold and silver are going to make a bottom and then start a trend towards new highs.

I would recommend waiting until Mid to Late June before jumping in. We should see some more carnage by then.

It's time to make a list of 10 stocks that you want to own. These 10 are likely to do really well over the next few years. After all, you are going to buy them on sale.

I would buy SIL and GDXJ as a foundation. Those two are not likely to see these low valuations for a long time. And the upside is easily a 3 bagger for both.

As for stocks. I would pick 5 mid tier producers and 5 emerging mid tier producers. Growth companies with cash flow are going to pick up the scraps from those with cash problems. The risk / reward for these companies is excellent from my perspective.

I would also pick 5 companies with ridiculous valuations versus their resources in the ground. One of these is likely to be a 50 bagger and the others will all likely get taken over.

I have a treat coming for you in about 1-2 months. I'm merging my website with someone who had a similar mining database. You will be able to easily lookup 500 companies and see what they are rated, along with significant valuable information, along with my analysis.

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