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January 23, 2006
A place to be positioned, Mon., Jan. 23, 2006, 8:32 AM
An interesting place to be positioned, as stockman suggests, is in the small cap miners (R2000). To be precise, stockman is talking about Russell 2000 small cap stocks and not the penny dreadfuls that send you and me spam everyday. Those have virtually zero credibility.
But there are juniors like John McCluskey's Alamos Gold (TSX: AGI $9.35) that will come through for traders because they have excellent mineral resources below the ground with an outstanding professional promoter sitting on top.
The only such stock I have written up in these pages in the past 22 months is Alamos Gold, which I did at C$2.25 and again at $3.70. You see; I know what I am talking about. I have been underground (and on top) in these properties from eastern Canada to the Arctic Circle. I have schmoozed with their promoters, since before some of the current ones were born.
Stockman writes: "Wondering about small cap miners... These small cap stocks (R2000) continue to look better relatively speaking. Which makes me wonder about the possibilities in small cap miners. It strikes me that most managers who might have reluctantly gone into some miners as an out performer in 2005 went to the largest companies. But could the small and mid caps be the place to be in 2006?
I own small positions in a dozen small caps I have purchased over the past 6 months. This is a 'basket' including some silver, gold, palladium, titanium, etc. Over the past 2 years these stocks as a group have significantly under performed the XAU. In the past 30 days however that was not the case. Some are beginning to show some real nice action. Is this a January effect or the start of something longer lasting? Need to leave it to Bill to get into names that he feels might be worthy on company specific data and management. But the pattern of large caps moving first then the smaller fish following makes sense to me if this going to be THE YEAR OF THE METALS."
Stockman,
I do think that this year will be one where the promoters of junior resource stocks (oils as well as metals) are active. The junior metal explorers are driven by promoters, and these people operate in wolf pack fashion. In early March at PDAC I'll spend a couple days with most these people and see if they are committed to an "industry" promotion. If so, it will be a good play, and will later end in a spike top.
/Bill
Gold (Feb-06 contracts) today is up +$4.60 to $558.60. Conditions are ripe to cause the perfect storm later this year.
Posted by Posted by Bill Cara on January 23, 2006 08:31:39 AM | Category: Gold Explorers