Saturday, January 17, 2015
The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
1,000% gains may be on the horizon...
Yes... the possibility of a 1,000% gain sounds absurd. But longtime investors in the junior resource sector have seen that kind of gain many times. This sector – which involves early stage gold projects, "all or nothing" oil-drilling ventures, and the like – is one of the market's most explosive sectors.
It only takes one bull market in junior resources to make you rich. When these stocks rise, they don't just double... they can make you five or 10 times your money... or more.
And that's no exaggeration. Just look at our "Hall of Fame" at the bottom of each Digest issue. It's the top 10 highest-returning closed positions in our company's history. Half of them – five – are junior mining firms.
Our top-returning position of all time is Steve Sjuggerud's recommendation of Seabridge Gold. It returned 995% in just more than four years.
The lowest return of the five junior miners in our Hall of Fame is 322% in a little less than two years.
As you can see from the five-year chart of the Toronto Venture Exchange – the widely followed gauge of small-cap resource firms – the past few years have been a brutal bear market for these kinds of stocks...
The resource markets regularly go through boom and bust cycles. Developing resource projects is hugely capital- and time-intensive. And because of this long timeline, the resource market can't adjust to supply and demand imbalances as quickly as other markets can.
In an educational interview we produced with resource expert Rick Rule titled "Mastering the Resource Market's Cyclicality," Rick explained...
Making things worse is that many companies will continue to produce resources even if they're selling below production costs... Because sometimes it's cheaper to lose money than it is to shut down a mine and start it back up again. Or a producer will keep producing, hoping its competition will go out of business. Then, when prices swing higher, that producer will be in prime position.
In the latest issue of the Stansberry Resource Report, editor Matt Badiali explained that you have the opportunity to make a fortune in junior resource stocks every seven years or so... You just have to wait for sentiment to hit an extreme low, or "wait for the crickets," as he said...
Instead of being scared out of the sector, Matt jumped on the opportunity to recommend a handful of small resource companies...
In 2009, he urged Stansberry Resource Report subscribers to buy shares of elite silver royalty firm Silver Wheaton. His subscribers made 345% in a year and a half.
In the November 2009 issue of Phase 1 Investor, Matt recommended three junior stocks: Rainy River (which climbed 161% in two months), AuEx Ventures (which was bought out for a huge gain of 198%), and ATAC Resources (which soared 597% and now holds the No. 3 spot in the Stansberry Research Hall of Fame).
Matt is hearing crickets again. Investors hate resource stocks today. (A stronger dollar and oil's fall to $47 a barrel has only increased that sentiment.) So Matt is again recommending a handful of small resource stocks to take advantage of the blown-out sector.
One of the stocks Matt recommended was junior uranium explorer Fission Uranium. Here's what he had to say...
Matt expects that like Hathor, Fission will also get bought out. And after the announcement Fission made last Friday – just two days after Matt's recommendation – a deal may come sooner than expected.
Fission announced an initial 105-million-pound resource at the PLS deposit. Most analysts were expecting 50 million to 80 million pounds... Fission blew that estimate away.
Shares rose as much as 23% before settling in up around 15% on the news. And Matt believes there's still room to run.
In total, Matt recommended five beaten-down resource stocks in his latest Stansberry Resource Report issue, out last Wednesday. As of Thursday's close, these stocks were up an average of 13%. But if he's right, all five of these stocks could soar hundreds of percent from here.
Even if you decide not to buy resource stocks today, you should still keep this list of companies handy... They're five of the best junior-mining stocks on the planet. As Matt wrote...
You can access the names of these five stocks with a subscription to the Stansberry Resource Report. Right now, we're offering a full year of Matt's service for $39 – a full 60% off the retail price. And if you decide it's not right for you, we're offering a four-month, 100% money-back guarantee. Click here to learn more.
Date Range:1/8/2015 to 1/15/2015
Date Range:1/8/2015 to 1/15/2015