Media Coverage: John Embry, Chief Investment Strategist at Sprott Asset Management, names Colossus as a stock to look at
June 12, 2009
Dear Shareholders and Friends,
John Embry, Sprott Asset Management's Chief Investment Strategist, highlighted Colossus Minerals in a recent interview with Streetwise Reports. In the interview, John is braced for "an ugly summer," with "another significant test in the equity market." Before year-end, he anticipates $1,500 gold�but also the beginning of worldwide hyperinflation that may take many Americans by surprise.
Mr. Embry is Chief Investment Strategist at Sprott Asset Management and Sprott Gold and Precious Minerals Fund. He also co-chairs the Central GoldTrust Board of Trustees. An industry expert in precious metals, John's industry experience as a portfolio management specialist spans more than 45 years; he's simultaneously researched the gold sector for 30-plus of those years. He joined Sprott in 2003, after 15 years as Vice-President Equities at RBC Global Investment.
I thought you would be interested in reading his comments on Colossus. These are provided below.
Regards,
Ari Sussman Chief Executive Officer
Mr. Embry�s Comments:
TGR: What would you advise investors who are just coming into the gold market?
JE: Physical gold would be 20% to 25% of my portfolio. But for the equities, as I indicated, I would not focus on the majors where everybody huddles and prices are too high. Instead, I would tilt my stock positions�the major weight of my stock portfolio�toward those small producers and explorers with legitimate projects that are reasonably advanced. Getting into the really junior explorers, you'd have to know the company to make sure you have a real asset to take advantage of the rising gold price.
TGR: So would you put maybe 50% of your gold investment in those smaller producers?
JE: Yes, small producers and advanced exploration vehicles. I'd put another 25% for the sake of stock liquidity into some of the big ones. The best of the big ones is Gold Fields Ltd. (NYSE:GFI)(JSE:GFI); given their reserve base, their discount for having half their assets in South Africa, and the fact that it's relatively very cheap.
TGR: �what smaller stocks you would have our readers look at today?
JE: I like Lake Shore Gold Corp. (TSX:LSG); I own a lot of that. Colossus Minerals Inc. (TSX:CSI) down in Brazil, Andean Resources (TSX:AND) (ASX:AND) in Argentina, and a number in Canada, such as Rubicon Minerals Corp. (TSX:RMX) (NYSE.A:RBY) and Premier Gold Mines Ltd. (TSX:PG). The list unfortunately isn't as long as you might think. Some of these aren�t in production yet but possess exciting ore bodies.
TGR: But you see the real opportunities in the smaller stocks because that's where you get the leverage?
JE: You get huge leverage and, right now, the public isn't there in any big way. We've seen some strength recently, but nothing compared to what will happen if gold makes a clean breakout through $1,000 and really starts moving�which I think will happen. At that point, investors will want exposure and, quite frankly, the whole sector's market cap is so puny that it won't take much to really drive these stocks north. I'm quite convinced that there will be numerous 5- and-10 baggers over the next few years.
To see the entire interview click here: www.TheAuReport.com/cs/user/print/na/2697 |