This commentary is highly biased and potential conflicts of interest.
I bet you don’t see many first sentences like this one in stock market commentaries. But it’s true. I’m absolutely fond of the Hunter-Dickinson group since the days of my position as a mutual fund and hedgefund manager (way back in the 90s – man am I old). I know of no other management group of this size and a history of developing so many companies in the resource sector. My conflicts included the fact that I own from time to time shares in one or more of their companies and I’m engaged as a compensated consultant to several.
Having said that, I would like to bring to your several of their companies, all of which I believe have a special story underway that can greatly impact corporate developments. I will of course note which ones I’m currently engaged by and if I own any shares at the moment (full disclosure is here).
Anooraq Resources (ARQ-TSX-V, ANO-NYSE/Alnet) – This is a special turnaround situation that in a few weeks can be elevated to a higher level. After a much too long dragged out major transaction that was greatly hindered by the financial crisis, the ability to become one of the world’s top platinum producers is now Anooraq’s for the taking. In addition, platinum prices have appeared to have bottomed and have move up nicely to a point where it’s profitable again to mine. I believe once the transaction is finalized, we could see a significant increase in shareholder value (I’m engaged by the company).
Continental Minerals (KMK-TSX-V) – While I’m not currently engaged by the company, I was last year. I also have bought a boatload of shares recently, including today. Two big copper-gold-silver porphyry deposits being developed that I believe are of extreme interest to one or more major base metals companies. Management recently proposed a poison pill and I knowing them I don’t think this was merely a simple corporate exercise. A dramatic increase in buying and a technical chart that indicates strong accumulation is a big plus. Even if there’s no near term interest from a major, the current two deposits are more than worth the current share price. Don’t chase the share price!!!!!!!
Farallon Mining (FAN-TSE) – A slogan just a few years ago at FAN was “Mine in 09”. Like much of what company CEO Dick Whittington does was smack on target despite horrific market conditions in 2008. Here too I think FAN is attractive to a significant player in Mexico and can also more than stand on its own if no such interest is forthcoming (I’m engaged by the company).
Northern Dynasty Minerals (NDM-TSE, NAK-NYSE/Alnet) – The cream of the crop at HD, it’s finally getting some of the recognition it has deserved. There’s just no way IMHO that it can remain independent for too much longer. Management has openly stated on more than one occasion it anticipated a major financial transaction in 2009. HD management word is 100x times more likely then Vancouver Canuck fans predictions of a Stanley Cup (but really, isn’t everything?). I’m engaged by the company and own shares.
Taseko Mines (TKO-TSE, TGB-NYSE/Alnet) – Here’s a perfect example of the skills of HD. They stuck through thick and thin with TKO, giving shareholders their best shots and it paid off. Now the company can see an increase in production and another project they are awaiting permits for. If and when NDM goes, I think TKO becomes the flagship company (Not presently engaged but own options from previous engagement).
If I only could buy one, which one would you recommend Mr. Grandich?
Jack Based on today’s prices and which one could go up the most percentage wise in the shortest amount of time, it would have to be Continental
For non Canadians among us, I recommend (and have no vested interest in) InteractiveBrokers.com for buying Canadian stocks (and US ones too).
[I used to buy the American Depository Receipts (ADR's) on US pink sheets, but not the way to go (IMHO).]
You deposit US$, buy C$ (for a commission of about $2.50), then buy the Canadian stocks of your choice at minimal commissions. US stock and ETF commissions can be as low as $1.00.
A little bit of learning curve, they are tailored to professionals. But they have training webinars for free.
I am not a Registered Investment Advisor, so don’t consider this advice.
Regards,
Roger.
PG I read that commentary on Nadler from Kitco and it was very accurate. The guy is a clown and has been wrong for years. Despite being wrong again he once again calls the latest rally a fluke in today’s piece. He must have pictures of the Kitco management because that has to be the only reason they keep him.
In regards to KMK, the story is a very large Asian mining company made them a feeler offer that KMK turned down. I have confirmed that KMK has hired an investment banker (BMO) and with the poison pill request, KMK management is preparing for a takeover bid. Reading between the lines of your recommendation, I have to believe you picked up the same vibes from them.
Thanks for all the hard work.
I look forward to seeing you at the Vancouver Show.
Roger, thanks so much for the info on Interactive. I love Scottrade for US stocks but I agree the pink sheets leave something to be desired and that’s what I have been using for the Canadian stocks. I then use Stockhouse to gather any information since Yahoo finance is non-existant on Canadian stocks.
Everyone!!!! Whether the post from Ronnie D about KMK has validity or not, no one should make any investment decision based on it. There’s nothing to read between the lines. I fully stand behind what I’ve said about KMK but I don’t want this blog to become a place for rumor mongering. Remember when speculating/gambling, you must be prepared to lose part or all of your capital.
I said don’t chase KMK!!! Just bid for it.
I am very new at this game
what do you mean by ……..I said don’t chase KMK!!! Just bid for it.
Susan:
I’ve been using Interactive Brokers for about 5 years now. In the event you or anyone else is interested, here is a summary of my experiences.
THE GOOD:
Fast efficient cheap trading US or Canadian stocks. Essentially no extra cost for splitting your trade in 2 or 3 parts – something I really like to do.
THE BAD
Complicated system – as Roger said, bit of a learning curve.
Constant updates of their system requiring downloading – more of a nuisance than a real problem.
Occasional flakyness, especially just after a new update.
Real-time charts can be flaky – works well some days, not so well others.
You have to pay for TSX and Venture real-time quotes.
THE UGLY
Opening, closing or transferring accounts is amazingly, even ridiculously difficult. I have a personal and a corporate account. I have been trying to close the corporate account for the last 3 years. I was able to get the money out, but the empty account never goes away – perhaps it’s one of those ghosts that Pravda talks about (lol).
OVERALL
For Canadians, it is probably the best option for active traders – Most Canadian brokers are cumbersome and expensive. For Americans wanting to trade Canadian stocks, it’s pretty good.
John New at this game? Get out while you still can. It’s worse than drugs-lol
Seriously, I mean don’t bid the stock up and up. It may not be my recommendation driving it up but if it was, I sooner see people try to bid for it near where I recommended it. Has has been a big seller so why give them more money. For today 1.10 or so is fine and if you don’t get stock in a day then move up and so on until you do. The only problem with this strategy is a bid comes for the company or buying overwhelmed selling and it’s not just me.
Peter:
Any news on the recent volume and run up in NAK share price? Is it Mitsubishi acumulating again or something different? There’s been a nice run up in AAUK share price over the recent weeks as well. Any relationship you see between the run ups (i.e. is it specific interest in Pebble, general interest in metals miners, or something else)?
Peter,
Are potash companies a good investment?
Hi Peter,
The coppock Guide gave a buy signal on Friday. Do you consider this bullish?