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Let's call this a sneak preview of coming attractions.
Have you ever wanted to have the opportunity to make a lot of
money? How about getting rich?
How about getting Filthy Rich? If so, you must read this.
Everyone has heard the term, penny stocks, but what are they?
Should you consider investing in them?
The general definition of a penny stock would be any stock
trading under $1.00. With the thousands of Canadian junior mining and energy
companies I would guess that 80% are still selling for less than $1.00 and
thus are classified as penny stocks selling on the TSX Venture Exchange.
If we were at any other time in the investment cycle for gold
and natural resources I would probably suggest that investors stay away, far
away, from these penny stocks, unless you really know what you are doing. But
that is not the case.
We are on the verge of a possible breakout in the shares of
these penny stocks and some of us have been licking our chops in anticipation
and now it is here.
If one looks merely at the charts below for the CDNX
representing the TSX Venture Index and the HUI, Gold Bugs Index you would
conclude that everything is great. But if you compare these indices to gold,
now you have an entirely different picture. In effect, gold is very strong
but both the CDNX and HUI are lacking and thus the shares at this time have
not caught on fire but we anticipate this will change very soon.
Doug Casey of CaseyResearch.com is very
bullish on the prospects for the juniors and is on record as saying:
"the day will come when no shares will be selling for less
than $5.00".
Again, I am guessing here that the average junior mining and
energy company is selling for much less than $1, probably more like $0.25 to
$0.50. Well if Doug Casey is right we could easily see these penny stocks
generating gains of 1,000% to 2,000% in the coming years.
Remember, this will be the average share price even for those
dogs and cats in your portfolio. Many shares will be selling for $10, $20,
$50 or $100 and more......It happened in 1980 and it will happen again.
Think for a moment about the last great bull market in gold and
the juniors, 1976 to 1980.
Heck no one had computers and no one was day trading
this very small market sector of the junior mining and energy companies. What
if, this time, investors around the world get excited about these mining and
energy stocks?
The sky is the limit and want it be fun?
Frankly, we smell the potential for a major once in a
life-time opportunity to make a killing.
Are these penny stocks risky? Sure
as heck they can be risky, but if you only allocate only a portion of your
investment dollars to this group and then further diversify into 10, 20 or 30
different companies, you are greatly reducing your overall risk exposure. It
is all about timing and the time is now to be preparing your strategy if
you are not yet on board.
Another interesting thought is
that some of the junior mining and energy shares have LEAPS and long-term
warrants trading which could increase your gains even further with little
or no additional risk. If you can find LEAPS and warrants trading on some of
your favorite shares and with 2 years or more of remaining life now you have
a really interesting situation.
These long-term warrants and LEAPS give you the opportunity to
double or better your already outrageous gains in the common shares.
This is a must opportunity for all investors and I am sure that
all investors will be 'in the game' eventually.
The question for each of you is:
- 1. Are you
already in the game? If so, great, just be patient.
- If not, are
you preparing to enter 'the game' and buy a basket of these undervalued
junior mining or energy shares or the long-term warrants or LEAPS
trading on them?
- Are you
going to wait until prices rise substantially and start to peak before
entering 'the game'?
Yes, most investors will wait and wait and wait
and then buy near the top and then complain that they couldn't make any money
and they will blame the markets, the penny stocks and everyone in the
business before taking responsibility for their own poor judgment and timing.
We are being given the rare possibility of a
once-in-a-lifetime-opportunity, what will you do with it?
For those readers unfamiliar with our services:
- PreciousMetalsWarrants.com
provides an online database for all warrants trading on the natural
resource companies in the United States and Canada.
- InsidersInsights.com
tracks the buying and selling of corporate insiders with a focus on the
junior mining and natural resource sectors. Buy and Sell Alerts are
issued as deemed relevant based upon our analysis.
We encourage all readers to sign up for our free weekly email and
check out our free warrant database.
Dudley Baker
PreciousMetalsWarrants
Also
by Dudley Baker
Dudley Baker is
the owner/editor of Precious Metals Warrants, a market data service which
provides you with the details on all mining & energy companies with
warrants trading on the U. S. and Canadian Exchanges.
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