...at the 5¢
& 10¢ Store: TSX
I'm sure many of our readers remember
the 5¢ and 10¢ stores of the past. What a treat as a kid to browse
through the merchandise looking for the chance to purchase some of our
favorite items literally for pennies. Well, guess what? The 5¢ and
10¢ store is back and this time it is packed with many incredible values
for us big boys and girls.
This time the 5¢ and 10¢
store is the Toronto Exchange as well as the Venture Exchange.
These exchanges are home to the
Canadian resource companies and many are now selling at bargain basement
prices.
Yes 5¢ and 10¢ a share is
not an exaggeration for many of these resource companies and some with good
properties and management.
Simply put, if you want to make money
in the markets, you must buy low and sell high. Sounds very easy but
at times like these many investors are afraid to step into the resource
sector much less think of buying the penny stocks.
Investors have experienced
substantial losses in their portfolios due to the recent market fears.
But, we continue to remind ourselves,
subscribers and all readers interested in the natural resource sector, that the
big picture has not changed.
All the reasons and arguments for
these long term investments are as sound today, if not more so. Corrections
will come and yes, they will go, leading us to another great rally. But
obviously that day has not yet arrived. Patience and focus is essential for
all of us at this time.
As we have said before and will
continue saying, 'keep your eyes on the prize'. The prize by
our definition is the high probability of a strong market for resource shares
starting soon and the possibility of the beginning of the long awaited mania
phase of the bull market for the resource sector.
Those of us following the mining
shares, particularly the juniors and small exploration companies, are well
aware of the carnage over the last few months. Many of the shares are down
70%, 80% or even 90% in value. Some shares that were trading for a $1 or more
are now available at the 5¢ and 10¢ store.
We continue to believe there is a
high probability that gold will drift back below $1500, at least briefly,
before this current consolidation is complete in the coming weeks. So perhaps
it is not yet time to back up the truck. But, it is surely time to be
preparing your wish list of companies to buy and perhaps place some stink
bids on those shares.
Get ready for the bottom which could
come very soon.
Patience and cash is now your best
friend.
We present you with this chart on the
TSX Venture. Hardly a pretty chart at this point in time but look to the
future when we anticipate selling our shares and warrants for dollars while
currently buying them at the 5¢ and 10¢ store.
We continue to stress our view that
this correction is within the framework of the long-term bull market and is
giving investors a great once in a lifetime buying opportunity.
Dudley Baker
PreciousMetalsWarrants
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