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The pot is beginning to burble over to the extent that I believe we are approaching one of those periods where even the crappy little small time gold and silver miners will begin to shoot golden fountains of coyne (sic) out of their arses. Tonight I offer two to hold until the 4th of July, at minimum. In the penumbra of the rockets red glare, there ye shall banque.
I have a bunch of these in my portfolio both as “option” investments and as long term plays, and they are usually characterized by their “less than $10” price range.
Like an undiscovered vintage of small California vineyard Cabernet, however, these little gems tend to be “unearthed” and then the real fun begins. I remind you here, and tell you later — SLW, EGO, ANV, and even IAG were all sub $10 stocks less than 18 months ago. I believe these two juniors, and perhaps also GSS, possess similar characteristics.
First, my current favourite (sic) in the small popper category is the lovely FRG. After announcing a measurable find in their most recent presser on Monday, they have been somewhat “off to the races.” I think the release was just an excuse for the baby to rally. She’s been waiting a while:
You probably remember this chart from late April on my site… well now you can see it is on it’s way to new rocket heights.
The second name is NGD, one of the famous “Three N’s” along with NG and NXG. I like them all, but NGD seems the most promising for the next month or so. Have a look at the weekly:
(Shit!)
It’s just breakout out above long term resistance at $6.50 and you see my target of $9.50 in the short term.
I’m holding it for much more than that, but that’s the way I roll.
Best to you all.
Keep watching the best of the best, too — SLW, ANV, EGO, IAG, PAAS, EXK, XRA, MVG, CDE, even GG and AUY. If you want ETF’s there’s GDX, GDXJ and SIL for the miners and GLD and SLV for the solid stuff.
Live long, prosper.
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I like the analogy— a slam dunk even for a top-heavy players.
I own SLW and EGO (appropriately).
She is a Rocket’s cheerbabe, if you did not get the analogy….
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Thanks for the post, Jake. Own SLW, EGO, ANV and EKX. Wondering about SVM here and why it hasn’t budged yet?
Kind of dived around it’s earnings announcement. Not a “first tier” player, but it should rise w. the tide.
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After yesterdays’ move in FRG I got to wondering why you hadn’t mentioned it and was about to bring it to your attention again but you’ve proven your mettle with this post as you’ve killed two birds with one stone with my other new interest in NGD ….. Eggselent!
TBT for the rally?
Adding.
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FRG I like
http://ppt.ibankcoin.com/?p=3537
Did NGD get the Mexican mine mess resolved? I never went back in due to that.
Not totally, although it doesn’t seem like it’s affecting their willingness to invest in the mine:
In respect of the opposition to mining operations at Cerro San Pedro, New Gold continues to work diligently with local and federal governmental groups in an effort to establish a long term solution that allows the company to continuously operate the Cerro San Pedro mine and thus provide ongoing economic benefits to the local people and community. New Gold’s management believes the Cerro San Pedro Mine has been operating in full compliance with
required permits and government authorizations.
Throughout the temporary suspensions, New Gold has been permitted to continue the leaching process and is producing gold and silver. Further, as the Cerro San Pedro Mine uses equipment leased from a large construction contractor, the Company should be able to increase the mining rate once current legal challenges are addressed.
The gold production forecast for 2010 remains 95,000 to 105,000 ounces at a total cash cost(1) of $390 to $410 per ounce sold, net of by-product sales. Capital expenditures at Cerro San Pedro are forecast to be $10.8 million in 2010.
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Jake, what are your thoughts on PHYS vs GLD? Thanks.
Have not bothered w. PHYS… GLD seems liquid enough to suit my purposes.
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The latest issue of Barrons has an article by a gold fund manager worth a read. How about ABG.L? It is African Barrick Gold traded in London and I have seen conflicting no.s on cost of production – $220/oz. vs. $550/oz. $220 is like having your own mint. The miners are expected to catch up with the price of gold but of course the miners dilute their stock.
Staying out of Africa, due to political risk.
Cf — DROOY.
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Jake,
I’ve been following FRG since your last post and since it popped up in a few of my PPT screens. Seeing as there was a nice pop this morning, can you please give some insight in picking a time to start accumulating?
Thanks
I would look for a pullback (which we are getting) and start accumulating a little bit here ($6.40) and then a little bit more at $6.25… If it gets back to $6.10 or so (the 20 day MA), then back up dah truck.
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or ride FRG’s coattails via AUXVF, eh?
Thinly traded but works for pikers ….
Bot TYH @ $29.74
I hope it doesn’t deflate like that beech’s balls.
…and stopped out at $29.15… kind o flike leaving a $100 tip at Sbarros
nice work.
ever get that EXK buy at 3.20? I didn’t.
I did…though my cost average is still about 3.45 or so…
“Accumulate”
Woo boy, check out that slamdunk!