Is It Time To Buy More Junior Mining Stocks?

That is an impossible question to answer with any degree of conviction because the extreme degree to which the precious metals market is manipulated.   I think now is a good spot to add to positions or start new positions.  As an example, in my latest issue of the Mining Stock Journal, I recommended a high quality junior that had almost pulled back to its 200 dma.  I said I was buying it for what I thought would be a “low risk” 25-40% bounce if the pullback cycle in  the sector is over.  That stock bounced 7% today.

A good way to protect yourself somewhat is to find high quality junior mining companies that are exceedingly cheap to their underlying “intrinsic” value.  I presented a company in the latest MSJ issue that, despite a big move already, has the potential to be a 5-bagger from here.  Insiders control 44% and put in millions of their own money over the last 5 years to keep the Company going.  This Company is on its way to becoming very significant mining company.

Today I sent around to subscribers an update of a stock previously presented because the Company announced an acquisition of an existing operational mine and is paying roughly $20/oz for proved gold in the ground.  This company is “off the radar screen” but Goldcorp just paid over $100/oz in the ground for Kaminak.  This acquisition will be the catalyst that enables management to build a 200-250k oz gold producing operation by 2019.  It’s market cap is mining-stock-journal-bannerwell under $100 million.  Companies that produce 200-250k ozs/year trade in the $200 million to $400 million market cap range.  You do the math on this Company…

You can subscribe to the Mining Stock Journal and get the current issue, the current update and all the back-issues (March 4th debut) by clicking here:   MSJ Subscription.

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