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.
