Aug 10
24
Keeping in mind that my Tracking List is gambling (the word speculation was created so the word gambling didn’t have to be used, but that’s what one is doing when speculating) and one must be mentally and financially prepared to lose part or all their capital, here are some of my latest thoughts:
I continue to limit equity exposure to metals and mining shares and within that group overweight towards precious metals over base metals. I continue to believe uranium has bottomed and the news that Goldman Sachs is getting involved with uranium is bullish.
Denison Mines (DML-TSX-V) is among my favorites. Cameco (CCJ-NYSE) is a core holding while Uranium Participation (U-TSX) is a good way to play the uranium price.
One special note in this area, Nevsun Resources (NSU-NY-ALT) continues to make new 52-week highs and remains a favorable takeover candidate but is a hold at these levels.
Grandich Clients – Not only is all the above about gambling true about Grandich client companies, but my comments are biased and have potential conflicts of interests. Please note in my Tracking List my personal holdings as of this publication
Some comments on clients:
Anooraq Resources shares have become quite undervalued again. PGMs are the forgotten precious metals and most speculators/gamblers have little or no exposure to them.
Crocodile Gold has clearly disappointed but if you believe 2011 is going to be a better year, than the share price would have to be undervalued here. There’s likely a base-building period needed so no need to chase but it should be up for consideration to most speculators down here.
Silver Quest Resources – The Yukon Gold Rush is real and I’ve hitched everything other than the kitchen sink to SQI in this area. The private placement (I participated in it) should be closing this week and management believes it’s going to have “tons” of news flow for several months going forward.
